8/12/2019 Rashmi Sasnur
1/55
Tata Marcopolo Motors Limited, Dharwad
INDEX
CHAPTER TITLE PAGE No.
1. EXECUTIVE SUMMARY 2
2. COMPANY PROFILE 6
3. INTRODUCTION TO PERFORMANCE APPRAISAL 18
4. DATA ANALYSIS AND INTERPRETATION 35
5. A. FINDINGS 46
B. SUGGESTIONS & CONCLUSION 47
6. BIBLIOGRAPY 4!
7. "UESTIONNAIRE"UESTIONNAIRE 5#
KLESS IMSR, HUBLI. Page 1
8/12/2019 Rashmi Sasnur
2/55
8/12/2019 Rashmi Sasnur
3/55
Tata Marcopolo Motors Limited, Dharwad
($ To prepare and help employees to accept the performance appraisal system.
D% C'*%(
P+ (%
)rimary data was collected by interacting with the organization employees, arious
departmental managers and through questionnaire.
*uestionnaire was prepared and e+plained to the respondents so as to access them in giing
prompt and unbiased response.
S*'$( (%
The secondary data was collected with the help of organization manuals and from the
records of indiidual employees.
D% *'*%+'$ %-'(-urey method consisting of structured questionnaire to employees.
M)$% %*-$+9) M- +cel
S/ S+:'/ respondents
S/+$; M%-'(-imple random sampling method.
KLESS IMSR, HUBLI. Page 3
8/12/2019 Rashmi Sasnur
4/55
Tata Marcopolo Motors Limited, Dharwad
F+$(+$;
0ut of the sureyed employees 1(2 belong to production, #(2 belong to 34, %/2 belong
to accounts.
5/2 of the employees stated that they need performance appraisal in organization, #/2 said
they do not need.
#/2 stated that performance appraisal to be done quarterly, #(2 wanted it half yearly and
6(2 of the employees wanted performance appraisal to be done yearly.
6(2 of the employees said performance appraisal motiates the employees and %(2 did not
agree.
%(2 of the employees said performance appraisal reduces absentees, %/2 of the employees
said it reduces employee turnoer, %/2 of the employees said it improes efficiency and
&(2 of the employees said it enhances productiity.
'(2 of the employees told they wanted performance appraisal to be done by superior,&(2
of the employees wanted self appraisal,(2 of the employees appraisal to be done by
consultant and #(2 of the employees said appraisal should be done by all.
'(2 of the employees said that performance appraisal is done to assess the employee, %(2
of the employees said to assess the training needs and &/2 of the employees said appraisal
is done for promotion.
KLESS IMSR, HUBLI. Page 4
8/12/2019 Rashmi Sasnur
5/55
Tata Marcopolo Motors Limited, Dharwad
1(2 of the employees told that transparency of performance appraisal is ery important,
%(2 said it7s important, (2 said it7s least important and een not important.
&(2 told that salary increase motiates the most and remaining said incenties, promotions
and recognition motiates.
6(2 of the employees said that promotion should be performance band remaining %(2 said
it should be tenure based.
8(2 of the employees said that organization should hae separate committee to reiew the
performance appraisal.
S);;%+'$
)erformance appraisal should be yearly assessed.
)erformance appraisal motiates employees so it should be fair and transparently done by
the organization.
)erformance appraisal should concentrate on promotion else it should be incentie based.
)romotion must be purely based on performance of the employee
0rganization should adopt &1/ degree performance appraisal or self appraisal.
-eparate committee has to be formed for performance appraisal in the organization
L++%%+'$ ', %- %)(
#. Time constraints 9 -ufficient time for study:surey was not aailable.
KLESS IMSR, HUBLI. Page 5
8/12/2019 Rashmi Sasnur
6/55
Tata Marcopolo Motors Limited, Dharwad
%. ;on respondent 9 t will go on stream in a yearBs time, and
produce a ariety of buses including #1 to ('?seater standard buses, #8 and '(?seater lu+ury buses,
lu+ury coaches, and low?floor city buses. The joint enture will also e+plore emerging opportunities
in Cus 4apid Transit -ystem.
The joint enture will take help with technology and e+pertise in chassis and aggregates
from Tata Motors, and e+pertise and know?how in processes and systems for bodybuilding and bus
body design from Marco polo. Coth companies will actiely participate in the management. The
KLESS IMSR, HUBLI. Page 6
8/12/2019 Rashmi Sasnur
7/55
Tata Marcopolo Motors Limited, Dharwad
buses will conform to international standards in quality and safety, and will be marketed not only in
>ndia but also in all Tata Motors focussed markets globally.
The @hairman of Tata Motors, Mr 4attan ;. Tata, said, the rapidly e+panding and
improing road network, connecting cities and also rural areas, is e+pected to substantially grow
passenger transport. The joint enture with Marco polo, which is one of the largest bus body
builders, will enable Tata Motors to successfully address the growing demand in >ndia, as well as
releant markets abroad.
The @hairman of Marco polo, Mr )aulo Cellini, said, Marco polo7s buses and coaches hae
a strong presence in Latin =merica, and oerseas markets. The joint enture with Tata Motors will
help us e+tend our presence in the high?potential markets of >ndia and also other mutually agreed
countries, which we can jointly deelop.
A')% T% '%'
Tata Motors, the flagship company of the Tata Aroup, is >ndiaBs largest automobile
company, with reenues of -E '.6 billion in %//'?/(. Fith oer & million Tata ehicles plying in
>ndia, it is the leader in commercial ehicles and the second largest in passenger cars. >t is also the
worldBs fifth largest medium and heay truck manufacturer and the second largest heay bus
manufacturer. Tata cars, buses and trucks are already being marketed in seeral countries in urope,
=frica, the Middle ast, -outh =sia, and -outh ast =sia and in =ustralia. The company acquired
the Daewoo @ommercial Gehicles @ompany, HoreaBs second largest truck maker, in %//'. >n %//(,
it acquired a %#2 stake in 3ispano @arrocera, the reputed -panish bus and coach manufacturer.
A')% T% Marcopolo M'%' L++%(
Celur >ndustrial area, Mummigatti, Dharwad (8///6
Iear of stablishment 9 May %//8
)hone no /8&1?1'(#665
KLESS IMSR, HUBLI. Page 7
8/12/2019 Rashmi Sasnur
8/55
Tata Marcopolo Motors Limited, Dharwad
Febsite www.tatamarcopolo.com
;ature of @ompany Joint stock
)roduct Cuses KL@G, M@G, 3@G$
Market >ndia, =ustralia, urope
;umber of employees %8//
8/12/2019 Rashmi Sasnur
9/55
Tata Marcopolo Motors Limited, Dharwad
)arts area : machinery shop
Tata Motors is committed to improing the quality of life of communities by working
on four thrust areas 9 employability, education, health and enironment. The actiities touch the
lies of more than a million citizens. The @ompanyBs support on education and employability is
focused on youth and women. They range from schools to technical education institutes to
actual facilitation of income generation. The goal of enironment protection is achieed through
tree plantation, consering water and creating new water bodies and, last but not the least, by
introducing appropriate technologies in our ehicles and operations for constantly enhancing
enironment care.
*=L>TI )0L>@I
KLESS IMSR, HUBLI. Page 9
8/12/2019 Rashmi Sasnur
10/55
8/12/2019 Rashmi Sasnur
11/55
Tata Marcopolo Motors Limited, Dharwad
>n #56#, thanks to the success obtained with the introduction of the Marcopolo bus, it
changed its name to Marcopolo -.=. The continuous growth consolidated the organization
which has already produced in its factories in Crazil and abroad, in these (5 years, %//.///
buses with a current work force of more than #%./// collaborators.
Marcopolo is a leading company of a Crazilian conglomerate engaged in manufacturing
of bus and coaches bodies sold all oer the world.
Marcopolo produces whole range of buses like mini buses, Medium buses and standard
coaches. >t e+ports worldwide to more than 1/ countries.
0er the years, it has acquired certain technology e+pertise and know?how for the
design, engineering and production of bodies in the worldwide bus market.
Marcopolo inests heaily in technology and product improement.
T% M*'/'' M'%' L%( >TMML?
TMML is a (#'5 joint enture company of TML and Marcopolo for manufacturing fully
built buses and coaches in >ndia.
The first manufacturing operations of TMML hae been setup in Lucknow and second one
is setup at Dharwad for production of buses.
TMML has employed best practices followed at arious urope, -outh =merica and
- locations in production process, engineering design and =ssembly process with hand?holding
support from Marcopolo -= engineers and technicians. Cest in class @=M:@=D:@= software are
KLESS IMSR, HUBLI. Page 11
8/12/2019 Rashmi Sasnur
12/55
Tata Marcopolo Motors Limited, Dharwad
used to deelop bus body design, process planning, process engineering, assembly line planning
and design and production planning.
>n the production process it use state of art machinery and equipment which include
Turret )unch, @;@ plasma cutting, @;@ tube cutting, @;@ horizontal tube bending, laser cutting,
shearing, M>A:M=A:T>A welding machines, sophisticated manual?pneumatic?electrical hand tools
in different stages like chassis preparation, skeleton manufacturing, panelling, painting, pre
assembly, pre deliery inspection and shower test.
-pecial jigs are utilized in skeleton manufacturing, adanced painting process with
capabilities to paint arious shade combinations and certain processes new to >ndian bus body
industry. TMML hae tradition of training >ndian engineers to >nternational standards in Tata
Motors and Marcopolo -=, Crazil to assimilate latest technology to implement at TMML.
TMML7s production process consists of the following major stagesN
C-+ //%+'$
KLESS IMSR, HUBLI. Page 12
8/12/2019 Rashmi Sasnur
13/55
Tata Marcopolo Motors Limited, Dharwad
This is the initial stage wherein chasis receied from Tata motors is prepared for mounting
bus body onto the chasis.
S@%'$ $),*%)+$;
This stage inoles manufacturing and assembling the structure of the bus body using
rectangular tubes manufactured by arious operations and finally assembling them on arious jigs
by welding operation.
P$+$;
)anels made of A> sheets are affi+ed onto the manufactured skeleton, front and rear n this stage ready buses are checked for their conformity with set standards before they are
sent for shower test after which buses are ready for dispatch.
R= %+ $( P%
The major raw materials and parts required for manufacture of bus bodies will be manufactured by
suppliers at Lucknow, Dharwad and arious other parts of country.
ORGANIATIONAL STRUCTURE OF TMML
KLESS IMSR, HUBLI. Page 13
8/12/2019 Rashmi Sasnur
14/55
Tata Marcopolo Motors Limited, Dharwad
P++$ /'* ,'=
KLESS IMSR, HUBLI. Page 14
HR CFOCOO
Materials &
supply chain
Manuacturin!"lannin! &
#n!ineerin!
$en%r
'e(elp)ent
"r%uct
'e(elp)ent& %esi!n
"r%ucti
"urchase
"rcure)ent
*uality
cntrl
"r%ucti
n Facility
+!istics &
stres "r%uctin
plannin! &cntrl
"rcess
plannin!
Facility
plannin!
Maintenance
C#O
8/12/2019 Rashmi Sasnur
15/55
Tata Marcopolo Motors Limited, Dharwad
R*- %-'('';
KLESS IMSR, HUBLI. Page 15
Chassis
Preparation
Skeleton
Assembly
Structure
Assembly
o!y an!
Chassis Couplin"
General #
ComplementAnti$
Corrosion
Treatment
Roo% &ront #
Rear
Assembly
'ec.connectins#
Si!e Panelin"
&loor
Assembly
#Componen
Si!e Panelin" #
&laps Assembly
&loor Train
# Tapestry
Paint # Assembly
Check
Sur%ace
San!in" #
Puttin"
#Paintin"
Insulation
ase Color#
akin"(Curin
Paint # )uality
Check Area
Saloon seat
#Comp.mouitin"*in!shiel! #
*in!o+s
&ittin"
Internal Trim
# Comp.
assembly
E,ternal trim
#comp.
Assembly
Hea!lamps
#Rear Lamps
Assembly
&inal )uality
Check Gate
Sho+er Test
# Roa! Test
Complete built
-nit ar!
8/12/2019 Rashmi Sasnur
16/55
Tata Marcopolo Motors Limited, Dharwad
4esearch methodology is a scientific and systematic way to sole research problem. =
researcher has to design the methodology that is in addition to the knowledge of method technique
researcher has to apply the methodology as well. Methodology is nothing but a method adopted by
the researcher.
T'/+* ', %- %)(
The study aimed at understanding the need for performance appraisal in TATA
MARCOPOLO< Dharwad.
O0*%+
#. To identify whether the employees need the performance appraisal system.
%. >t helps to identify employee7s potential, determines employees need for training, future
promotion, career planning, reduce attrition and help them to retain good performers and
counsel low performers to do better.
&. To know whether performance appraisal can contribute to the firms competitie adantage.
'. To make the employees understand importance of performance appraisal and set objecties
for them.
(. To prepare and help employees to accept the performance appraisal system.
KLESS IMSR, HUBLI. Page 16
8/12/2019 Rashmi Sasnur
17/55
Tata Marcopolo Motors Limited, Dharwad
S%)( (+;$
The researcher wanted to know the need for performance appraisal in the organization,
descriptie research design is identified as more appropriate for the present study.
P'/)%+'$ $( /
The present study is conducted in T=T= M=4@0)0L0 M0T04- L>M>TD, Dharwad.
The total number of employees in the company is %8//. The researcher was permitted to access the
following departments )roduction, Marketing, and n the main surey the questionnaire were distributed
to the respondents. =ll the respondents were contacted personally to e+plain about the research. >n
addition to that sufficient e+planation was also gien with regard to questions, which are included
in the questionnaire.
KLESS IMSR, HUBLI. Page 17
8/12/2019 Rashmi Sasnur
18/55
Tata Marcopolo Motors Limited, Dharwad
D% $+ & +$%/%%+'$
The data analysis helps to summarize in such a manner that it yields answer to objecties of
the study, the collected data were classified codes were gien transferred into table. =fter the
data were tabulated, analyzed interpretation was made according to objecties of the study. The
researcher calculated simple percentages to analyze and interpret the data.
KLESS IMSR, HUBLI. Page 18
8/12/2019 Rashmi Sasnur
19/55
Tata Marcopolo Motors Limited, Dharwad
3. I$%'()*%+'$ %' /,'$* //+
P,'$* A//+
)erformance appraisalis the process of obtaining, analyzing and recording information
about the relatie worth of an employee. The focus of the performance appraisal is measuring and
improing the actual performance of the employee and also the future potential of the employee. >ts
aim is to measure what an employee does.
=ccording to t is a powerful tool to calibrate, refine and reward the performance of the employee. >t helps
to analyze his achieements and ealuate his contribution towards the achieements of the oerall
organizational goals.
KLESS IMSR, HUBLI. Page 19
http://appraisals.naukrihub.com/http://appraisals.naukrihub.com/performance-review.htmlhttp://appraisals.naukrihub.com/performance-review.htmlhttp://appraisals.naukrihub.com/8/12/2019 Rashmi Sasnur
20/55
Tata Marcopolo Motors Limited, Dharwad
O0*%+ ', P,'$* //+ To reiew the performance of the employees oer a gien period of time.
To judge the gap between the actual and the desired performance.
To help the management in e+ercising organizational control.
3elps to strengthen the relationship and communication between superior 9 subordinates
and management 9 employees.
To diagnose the strengths and weaknesses of the indiiduals so as to identify the training
and deelopment needs of the future.
To proide feedback to the employees regarding their past performance.
)roide clarity of the e+pectations and responsibilities of the functions to be performed by
the employees.
To judge the effectieness of the other human resource functions of the organization such as
recruitment, selection, training and deelopment
- /,'$* //+
)erformance appraisals of mployees are necessary to understand each employee7s abilities,
competencies and relatie merit and worth for the organization. )erformance appraisal rates the
employees in terms of their performance. )erformance appraisal is necessary to measure the
performance of the employees and the organization to check the progress towards the desired goals
KLESS IMSR, HUBLI. Page 20
8/12/2019 Rashmi Sasnur
21/55
Tata Marcopolo Motors Limited, Dharwad
and aims. )erformance appraisal helps to rate the performance of the employees and ealuate their
contribution towards the organizational goals.
>f the process of performance appraisals is formal and properly structured, it helps the
employees to clearly understand their roles andresponsibilities and gie direction to the
indiidual7s performance. >t helps to align the indiidual performances with the organizational
goals and also reiew their performance.)erformance appraisal takes into account the pastperformance of the employees and focuses on the improement of the future performance of the
employees.
PURPOSE OF PERFORMANCE APPRAISAL )erformance =ppraisal is being
practiced in many of the organizations worldwide.
)erformance =ppraisal is aimed at
To reiew the performance of the employees oer a gien period of time.
To judge the gap between the actual and the desired performance.
To help the management in e+ercising organizational control.
To diagnose the training and deelopment needs of the future.
)roide information to assist in the 34 decisions like promotions, transfers etc.
)roide clarity of the e+pectations and responsibilities of the functions to be performed by
the employees.
To judge the effectieness of the other human resource functions of the organization such as
recruitment, selection, training and deelopment.
KLESS IMSR, HUBLI. Page 21
8/12/2019 Rashmi Sasnur
22/55
Tata Marcopolo Motors Limited, Dharwad
To reduce the grieances of the employees.
3elps to strengthen the relationship and communication between superior 9 subordinates
and management 9 employees.
B$,+% ', A//+
)erhaps the most significant benefit of appraisal is that, in the rush and bustle of daily
working life, it offers a rare chance for a superisor and subordinate to hae time out for a one?
on?one discussion of important work issues that might not otherwise be addressed. =lmost
uniersally, where performance appraisal is conducted properly, both superisors and subordinates
hae reported the e+perience as beneficial and positie. =ppraisal offers a aluable opportunity to
focus on work actiities and goals, to identify and correct e+isting problems, and to encourage
better future performance. Thus the performance of the whole organization is enhanced.
M'%+%+'$ $( S%+,*%+'$
)erformance appraisal can hae a profound effect on leels of employee motiation and
satisfaction. )erformance appraisal proides employees with recognition for their work efforts. The
power of social recognition as an incentie has been long noted. >n fact, there is eidence that
human beings will een prefer negatie recognition in preference to no recognition at all. >f nothing
KLESS IMSR, HUBLI. Page 22
8/12/2019 Rashmi Sasnur
23/55
Tata Marcopolo Motors Limited, Dharwad
else, the e+istence of an appraisal program indicates to an employee that the organization is
genuinely interested in their indiidual performance and deelopment.
This alone can hae a positie influence on the indiidualBs sense of worth, commitment and
belonging. The strength and prealence of this natural human desire for indiidual recognition
should not be oerlooked. =bsenteeism and turnoer rates in some organizations might be greatly
reduced if more attention were paid to it. 4egular performance appraisal, at least, is a good start.
T+$+$; $( D'/$%
)erformance appraisal offers an e+cellent opportunity?perhaps the best that will eer occur
for a superisor subordinate to recognize agree upon indiidual training deelopment needs.
During the discussion of an employeeBs work performance, the presence or absence of work
skills can become ery obious ? een to those who habitually reject the idea of training for themO
)erformance appraisal can make the need for training more pressing and releant by linking it
clearly to performance outcomes and future career aspirations.
>n this respect, performance appraisal can proide a regular and efficient training needs
audit for the entire organization.
R*)+%$% $( I$()*%+'$
=ppraisal data can be used to monitor the success of the organizationBs recruitment and
induction practices.
8/12/2019 Rashmi Sasnur
24/55
Tata Marcopolo Motors Limited, Dharwad
past two yearsP =ppraisal data can also be used to monitor the effectieness of changes in
recruitment strategies. Cy following the yearly data related to new hires it is possible to assess
whether the general quality of the workforce is improing, staying steady, or declining.
E/' E)%+'$
Though often understated or een denied, ealuation is a legitimate and major objectie of
performance appraisal .Cut the need to ealuate Ki.e., to judge$ is also an ongoing source of tension,
since ealuatie and deelopmental priorities appear to frequently clash.
Iet at its most basic leel, performance appraisal is the process of e+amining and ealuating
the performance of an indiidual. Though organizations hae a clear right ? some would say a duty ?
to conduct such ealuations of performance, many still recoil from the idea. To them, the e+plicit
process of judgment can be dehumanizing and demoralizing and a source of an+iety and distress to
employees. >t is been said by some that appraisal cannot sere the needs of ealuation and
deelopment at the same timeN it must be one or the other. Cut there may be an acceptable middle
ground, where the need to ealuate employees objectiely, and the need to encourage and deelop
them, can be balanced.
B$,+% ,' /'
>f the appraisal system is user?friendly and well administered then they should find that it
encourages the staff to perform well and perhaps seek career adancement. >t allows the staff an
opportunity to hae the undiided attention of their line manager so that theycan put forward their
KLESS IMSR, HUBLI. Page 24
8/12/2019 Rashmi Sasnur
25/55
Tata Marcopolo Motors Limited, Dharwad
iews and ideas on a one?to?one basis. During the meeting the staff membercan arrie at the true
alue of their position to the company and gauge how well they are fulfillingtheir function.
Fhether we like haing the actual appraisals or not, by proiding guidance and
demonstrating how to improe performance they do become ery much appreciated.
>n an ideal world the line manager will hae already acknowledged outstanding performance
as it happens. Cut when a business is doing well and people are busy it is easy to oerlook those
that are creating the success. The appraisal proides the opportunity to record it formally.
Training needs can be identified and a training plan or objecties agreed with the employee.
>t may also be an appropriate time to discuss career opportunities and career plans.
B$,+% ,' %- C'/$
>f company has a culture where staff feels that they hae some control oer their own
deelopment and hae an understanding of how their performance and skills can contribute to the
success of thecompany, they will be more motiated and more committed to helping the company
achiee itsgoals and objecties.
=n effectie appraisal system is just one of the measures that will help the employees know
that their efforts to do a good job are recognized by management, and their iews and
opinions are being listened. mployees are likely to be more productie and more willing to put in
that little bit e+tra when needed if an effectie appraisal system is being employed.
KLESS IMSR, HUBLI. Page 25
8/12/2019 Rashmi Sasnur
26/55
Tata Marcopolo Motors Limited, Dharwad
'ETH/0S /& PE&/R'ANCE APPRAISAL
KLESS IMSR, HUBLI. Page 26
8/12/2019 Rashmi Sasnur
27/55
Tata Marcopolo Motors Limited, Dharwad
R$@+$;. ? The term ranking has been used to describe an alternatie method of performance
appraisal where the superisor has been asked to order his or her employees in terms of
performance from highest to lowest.
F'*( C-'+* M%-'(. ? This appraisal method has been deeloped to preent ealuators
from rating employees to high. sing this method, the ealuator has to select from a set of
descriptie statements, statements that apply to the employee. The statements hae been weighted
and summed to at, effectieness inde+.
F'*( D+%+)%+'$.? The term used to describe an appraisal system similar to grading on a
cure. The ealuator had been asked to rate employees in some fi+ed distribution of categories. 0ne
KLESS IMSR, HUBLI. Page 27
8/12/2019 Rashmi Sasnur
28/55
Tata Marcopolo Motors Limited, Dharwad
way to do this has been to type the name of each employee on a card and ask the ealuators to sort
the cards into piles corresponding to rating.
P+( C'/+'$.? The term used to describe an appraisal method for ranking employees.
f the rater
belieed the employee possessed a trait listed, the rater checked the itemN if not, the rater left the
item blank. rating score from the checklist equaled the number of checks.
B-+' A$*-'( R%+$; S*. ? The term used to describe a performance rating that
focused on specific behaiors or sets as indicators of effectie or ineffectie performance, rather
than on broadly stated adjecties such as aerage, aboe aerage, or below aerage.
KLESS IMSR, HUBLI. Page 28
8/12/2019 Rashmi Sasnur
29/55
Tata Marcopolo Motors Limited, Dharwad
C+%+* I$*+($% T*-$+9).? The term used to describe a method of performance appraisal
that made lists of statements of ery effectie and ery ineffectie behaior for employees. The lists
hae been combined into categories, which ary with the job. 0nce the categories had been
deeloped and statements of effectie and ineffectie behaior had been proided, the ealuator
prepared a log for each employee. During the ealuation period, the ealuator recorded e+amples of
critical behaiors in each of the categories, and the log has been use to ealuate the employee at the
end of the ealuation period.
M$;$% O0*%+. ? The management by objecties performance appraisal method
has the superisor and employee get together to set objecties in quantifiable terms. The appraisal
method has worked to eliminate communication problems by the establishment of regular meetings,
emphasizing results, and by being an ongoing process where new objecties hae been established
and old objecties had been modified as necessary in light of changed conditions.
36# D; A//+ &1/ degree feedback, also known as Bmulti?rater feedbackB, is the most
comprehensie appraisal where the feedback about the employees7 performance comes from all the
sources that come in contact with the employee on his job. 0rganizations are increasingly using
feedback from arious sources such as peer input, customer feedback, and input from superiors.
Different forms with different formats are being used to obtain the information regarding the
employee performance.
PERFORMANCE APPRAISAL AND COMPETITIVE ADVANTAGE
The objecties of performance appraisal, listed aboe, point out the purpose which such an e+ercise
seeks to meet. Fhat needs emphasis is that performance ealuation contributes to firmBs
competitie strength. Cesides encouraging high leels of performance, the ealuation system helps
identify employees with potential, reward performance equitably and determine employeeBs need
KLESS IMSR, HUBLI. Page 29
8/12/2019 Rashmi Sasnur
30/55
Tata Marcopolo Motors Limited, Dharwad
for training. -pecifically, performance appraisal helps an organization gain competitie edge in the
following ways Ksee
8/12/2019 Rashmi Sasnur
31/55
Tata Marcopolo Motors Limited, Dharwad
E$)+$; L; C'/+$*
)romotions made on factors other than performance might land up a firm in a legal battle, thus
dierting its focus on non?productie areas, as it happened to Filliamson Magar. 0rganizations can
minimize costly performance?related litigation by using appraisal systems that gie fair and
accurate ratings.
M+$++:+$; ' D+%+,*%+'$ $( T)$'
mployees tend to become emotional and frustrated if they perceie that the ratings they get are
unfair and inaccurate. -uch employees find that the efforts they had put in became futile and
obiously get de?motiated.
Dissatisfaction in the job sets in and one of the outcomes of job dissatisfaction is increased
turnoer.
8/12/2019 Rashmi Sasnur
32/55
Tata Marcopolo Motors Limited, Dharwad
#. t is also possible to define the rate
at multiple leels.
KLESS IMSR, HUBLI. Page 32
8/12/2019 Rashmi Sasnur
33/55
Tata Marcopolo Motors Limited, Dharwad
%. F' V +$,' //+ ? the first step in designing an appraisal programme is to decide
whether the appraisal should be formal or informal.
8/12/2019 Rashmi Sasnur
34/55
Tata Marcopolo Motors Limited, Dharwad
information. Fhere appraisal is made by the superior, peers, subordinates and clients, it is called the
&1/?degree system of appraisal.
e. >n self 9appraisal employee himself or herself ealuates his or her own performance. >ndian
Telephone >ndustries has been following the self?appraisal system for e+ecuties in grade > to >G.
3ewlett?)ackard and Te+as >nstruments too ask their performance to prepare their own appraisal.
0n the positie side it may be stated that in self?appraisal there is an opportunity to participate in
ealuation particularly if it is combine with goal setti5ng and this should be improe the mangers
motiation. Managers are less defensie in self?ealuation than when superisors tell them what
they are.
4. P' ', %+$;)erformance appraisals are subject to a wide ariety of inaccuracies and
biases referred to as Rrating errors7. These errors occur in the rater7s obserations, judgment, and
information processing, and can seriously affect assessment results. The most common rating errors
are leniency or seerity, central tendency, halo effect, primacy and recency effects, perceptual set,
performance dimension behaior, spilloer effect, and status effect.
5. S'+$; %H /'The best way to oercome the problems is to proide training to the
raters.
6. -% -')( %( The seen criteria for assessing performance are
a$ ")+% The degree to which the process or result of carrying out an actiity approaches
perfection in terms of their conforming to some ideal way of performing the actiity, or fulfilling
the actiity7s intended purpose.
b$ ")$%+%The amount produced, e+pressed in monetary terms, number of units, or number of
completed actiity cycles.
c$T++$
The degree to which an actiity is completed or a result produced, at the earliest
time desirable from the standpoints of both co?ordinating with the outputs of others and of
ma+imizing the time aailable for other actiities.
KLESS IMSR, HUBLI. Page 34
8/12/2019 Rashmi Sasnur
35/55
Tata Marcopolo Motors Limited, Dharwad
d$ C'% ,,*%+$The degree to which the use of the organization7s resources is ma+imized in
the sense of getting the highest gain or reduction in loss from each unit or instance of use of a
resource.
e$ N( ,' )/++'$The degree to which a job performer can carry out a job function without
either haing to request superisory assistance or requiring superisory interention to preent an
aderse outcome.
f$ I$%/'$ +/*% The degree to which a performer promotes feeling of self?esteem,
goodwill and co?operation among co?workers and subordinates
g$ C')$+% +*
8/12/2019 Rashmi Sasnur
36/55
Tata Marcopolo Motors Limited, Dharwad
PRERE"UISITES FOR SUCCESSFUL PERFORMANCE APPRAISAL:
The essentials of an effectie performance system are as follows
1? D'*)$%%+'$ means continuous noting and documenting the performance. >t also
helps the ealuators to gie a proof and the basis of their ratings.
2? S%$(( G' the standards set should be clear, easy to understand, achieable,
motiating, time bound and measurable.
3? P*%+* $( +/ ,'% The appraisal format should be simple, clear, fair and
objectie. Long and complicated formats are time consuming, difficult to understand, and do
not elicit much useful information.
4? E)%+'$ %*-$+9) =n appropriate ealuation technique should be selectedN the
appraisal system should be performance based and uniform. The criteria for ealuation should be
based on obserable and measurable characteristics of the behaior of the employee.
5?C')$+*%+'$ @ommunication is an indispensable part of the performance appraisal
process. The desired behaior or the e+pected results should be communicated to the employees
as well as the ealuators. @ommunication also plays an important role in the reiew or feedback
meeting. 0pen communication system motiates the employees to actiely participate in the
appraisal process.
6? F(*@ The purpose of the feedback should be deelopmental rather than judgmental.
To maintain its utility, timely feedback should be proided to the employees and the manner of
giing feedback should be such that it should hae a motiating effect on the employees7 future
performance.
4. DATA ANALYSIS AND INTERPRETATION
KLESS IMSR, HUBLI. Page 36
8/12/2019 Rashmi Sasnur
37/55
Tata Marcopolo Motors Limited, Dharwad
1. -+*- (/%$% (' ') ='@ ,'
=nalysis
The aboe pie chart depicts that out of the sureyed employees 1(2 belong to production,#(2
belong to 34, %/2 belong to accounts.
KLESS IMSR, HUBLI. Page 37
8/12/2019 Rashmi Sasnur
38/55
Tata Marcopolo Motors Limited, Dharwad
2. P,'$* //+ + $(( +$ %- ';$+:%+'$
=nalysis
The aboe pie chart shows that 5/2 of the employees stated that they need performance appraisal
in organization,#/2 said they do not need.
KLESS IMSR, HUBLI. Page 38
8/12/2019 Rashmi Sasnur
39/55
Tata Marcopolo Motors Limited, Dharwad
3. '= ,9)$% /,'$* //+ + %' ('$
=nalysis
The aboe chart depicts that #/2 stated performance appraisal to be done quarterly ,#(2 wanted it
half yearly and 6(2 of the employees wanted performance appraisal to be done yearly.
KLESS IMSR, HUBLI. Page 39
8/12/2019 Rashmi Sasnur
40/55
Tata Marcopolo Motors Limited, Dharwad
4. D' %- +( ', /,'$* //+ '%+% /'
=nalysis
8/12/2019 Rashmi Sasnur
41/55
Tata Marcopolo Motors Limited, Dharwad
5. P,'$* //+ -/ ';$+:%+'$ +$ ,''=+$; =
. R()* $%
. R()* /' %)$'
*. I/' /' ,,+*+$*
(. M' /'()*%++%
=nalysis
8/12/2019 Rashmi Sasnur
42/55
Tata Marcopolo Motors Limited, Dharwad
6. S-')( /,'$* //+ (
. S,
. S)/+'
*. *'$)%$%
(. *';)
=nalysis
8/12/2019 Rashmi Sasnur
43/55
Tata Marcopolo Motors Limited, Dharwad
7. - (' %- *'/$ (' %- /,'$* //+
. T' %- /'
. . T' %+$+$; $( ', /'
*. T' (*+( )/'$ / +
(. (. ,' /''%+'$
=nalysis
KLESS IMSR, HUBLI. Page 43
8/12/2019 Rashmi Sasnur
44/55
Tata Marcopolo Motors Limited, Dharwad
8/12/2019 Rashmi Sasnur
45/55
Tata Marcopolo Motors Limited, Dharwad
=nalysis
8/12/2019 Rashmi Sasnur
46/55
Tata Marcopolo Motors Limited, Dharwad
1#. S-')( /''%+'$ /) ( '$
. P,'$* (
. T$) (
=nalysis
8/12/2019 Rashmi Sasnur
47/55
Tata Marcopolo Motors Limited, Dharwad
12. S-')( %- ';$+:%+'$ - /% *'+%% %' += %- /,'$* //+
a$ Ies
b$ ;o
=nalysis
8/12/2019 Rashmi Sasnur
48/55
Tata Marcopolo Motors Limited, Dharwad
5. FINDINGS
0ut of the sureyed employees 1(2 belong to production, #(2 belong to 34, %/2 belong
to accounts.
5/2 of the employees stated that they need performance appraisal in organization, #/2 said
they do not need.
#/2 stated that performance appraisal to be done quarterly, #(2 wanted it half yearly and
6(2 of the employees wanted performance appraisal to be done yearly.
6(2 of the employees said performance appraisal motiates the employees and %(2 did not
agree.
%(2 of the employees said performance appraisal reduces absentees, %/2 of the employees
said it reduces employee turnoer, %/2 of the employees said it improes efficiency and
&(2 of the employees said it enhances productiity.
'(2 of the employees told they wanted performance appraisal to be done by superior, &(2
of the employees wanted self appraisal, (2 of the employees appraisal to be done by
consultant and #(2 of the employees said appraisal should be done by all.
'(2 of the employees said that performance appraisal is done to assess the employee, %(2
of the employees said to assess the training needs and &/2 of the employees said appraisal
is done for promotion.
1(2 of the employees told that transparency of performance appraisal is ery important,
%(2 said it7s important, (2 said its least important and een not important.
&(2 told that salary increase motiates the most and remaining said incenties, promotions
and recognition motiates.
KLESS IMSR, HUBLI. Page 48
8/12/2019 Rashmi Sasnur
49/55
Tata Marcopolo Motors Limited, Dharwad
6(2 of the employees said that promotion should be performance band remaining %(2 said
it should be tenure based.
8(2 of the employees said that organization should hae separate committee to reiew the
performance appraisal.
B. S);;%+'$
)erformance appraisal should be yearly assessed.
)erformance appraisal motiates employees so it should be fair and transparently done by
the organization.
)erformance appraisal should concentrate on promotion else it should be incentie based.
)romotion must be purely based on performance of the employee
0rganization should adopt &1/ degree performance appraisal or self appraisal.
-eparate committee has to be formed for performance appraisal in the organization.
KLESS IMSR, HUBLI. Page 49
8/12/2019 Rashmi Sasnur
50/55
Tata Marcopolo Motors Limited, Dharwad
CONCLUSION
This study has helped me to understand the need for the performance
appraisal system in the organization.=n effectie performance management systemcan help an employee reach their full potential and this is positie for both the
employee and the organization. )erformance appraisalhelps in understanding the
KLESS IMSR, HUBLI. Page 50
8/12/2019 Rashmi Sasnur
51/55
Tata Marcopolo Motors Limited, Dharwad
training and deelopment needs of the employees. >dentifying the gaps in desired and
actual performance. Deciding future goals and course of action, )romotions,
demotions and transfers, other purposes including job analysis and proiding superior
support, assistance and counseling.
6 .BIBLIOGRAPY
BOOJS
ssentials of 3uman 4esource Management and >ndustrial 4elations? ). -ubba 4ao
3uman 4esource Management 9 =shwatappa
)erformance appraisal 9T.G 4ao
@ompany broachers
KLESS IMSR, HUBLI. Page 51
8/12/2019 Rashmi Sasnur
52/55
Tata Marcopolo Motors Limited, Dharwad
@ompany prospectus
EBSITES
o ===.//+.$)@+-).*'
o ===.$;$%%)(;)+(.*'
7. "UESTIONNAIRE
Dear -ir:Madam,
=s a part of my academic requirement, > 4ashmi .M. -asnur, student of HL-7- >M-4, 3CL>
studying in >G -M MC= conducting surey on R;eed for performance appraisal system in the
organization7 .> will be obliged if you could spare few minutes in answering these questions. This
data collected will be used for academic purpose only.
KLESS IMSR, HUBLI. Page 52
http://www.appraisals.naukrihub.com/http://www.managementstudyguide.com/http://www.appraisals.naukrihub.com/http://www.managementstudyguide.com/8/12/2019 Rashmi Sasnur
53/55
Tata Marcopolo Motors Limited, Dharwad
Hindly fill in the Details
;ame
Designation
+perience
#. Fhich department do you work forP
a. )roduction b.34
c. =ccounts d. Marketing
%. )erformance appraisal is needed in the organizationP
a. Ies b. no
&. 3ow frequently performance appraisal is to be doneP
a. *uarterly b. half yearly
b. Iearly d. monthly
'. Does the idea of performance appraisal motiate the employeesP
a. Ies b. no
(. )erformance appraisal helps organization in following ways
a$ 4educes absentees
b$ reduces employee turnoer
c$ improes employee efficiency
d$ More productiity
=ny other please specify SSSSSSSSSSSS.
1. -hould performance appraisal be assessed by
KLESS IMSR, HUBLI. Page 53
8/12/2019 Rashmi Sasnur
54/55
Tata Marcopolo Motors Limited, Dharwad
a$ -elf
b$ b. superior
c$ c. consultant
d$ d. colleague
e$ e. =ll
6. Fhy does the company do the )erformance appraisalP
a$ To access the employee
b$ To access training needs of employee
c$ To decide upon pay rise
d$ for promotion
8. 3ow important is Transparency in the performance appraisal systemP
a$ ery important
b$ important
c$ least important
d$ not important
5. ncenties
c$ )romotion
d$ 4ecognition
=ny other please specify SSSSSSSSSSSSSS..
#/. -hould )romotion be purely based onP
a$ )erformance based
b$ Tenure based
KLESS IMSR, HUBLI. Page 54
8/12/2019 Rashmi Sasnur
55/55
Tata Marcopolo Motors Limited, Dharwad
##. =ccording to you how should management motiate employeesP
-uggest SSSSSSSSSSSSSS..
#%. -hould the organization hae separate committee to reiew the performance appraisalP
c$ Ies
d$ ;o
Thank you
Top Related