TRAINING REPORT ON PERFORMANCE APPRAISAL OF EMPLOYEES OF ESTOFA AUTOMOBILES PRODUCTS, FARIDABAD

Submitted in partial fulfillment of the requirement of the Award of degree in MASTER OF BUSINESS ADMINISTRATION [Session: 2008-13]

SUBMITTED TO:
Prof. B.S. BODLA (DIRECTOR)

SUBMITTED BY:
DEEPTI MBA-5 YRS.6th SEM. ROLL NO.49 REG. NO.08-UD-1135

INSTITUTE OF MANAGEMENT STUDIES KURUKSHETRA UNIVERSITY KURUKSHETRA

DECLARATION

I DEEPTI Roll No 49 Class 5 YEAR MBA-6th SEM. of the INSTITUTE OF MANAGEMENT STUDIES, KURUKSHETRA UNIVERSITY KURUKSHETRA hereby declare that the project Report PERFORMANCE APPRAISAL OF EMPLOYEES OF ESTOFA AUTOMOBILES. Is an original work and the same has not been submitted to any other Institute for the award of any other degree .Suggestion as approved by the faculty were duly incorporated. DEEPTI

ACKNOWLEDGEMENT

My just and foremost thanks go to my Training MANAGER under whose guidance and supervision the present study was conducted. His sympathetic and encouraging attitude was the basis which made the study possible. I am obliged to all the respondents for their support by providing valuable information which proved a milestone for the study. Last but not the least, I would like to thank my director sir and dept.faculty who provided their consistent support and suggestion during this programme

DEEPTI.

PREFACE A thriving insurance sector is of vital importance to every modern economy. First because it encourages the savings habit, second because it provides a safety net to rural and urban enterprises and productive individuals. Perhaps most importantly it generates for long term invest able funds for infrastructure building. The nature of insurance business is such that the cash inflow of insurance companies is constant while the payout is deferred and contingency related. This characteristic of their business makes insurance companies the biggest investors in long gestation infrastructure development projects in all developed and aspiring nations. This is the most compelling reason why private sector (and foreign) companies which will spread the insurance habit in the societal and consumer interest are urgently required in this vital sector of the economy.

CONTENTS CH. NO. 1 2 3 4. 5 6 7. 8 9 NAME OF CHAPTER COMPANY PROFILE INTRODUCTION OF THE STUDY OBJECTIVE OF THE STUDY RESEARCH METHODOLOGY DATA ANALSIS AND INTERPRETATION FINDINGS OF THE STUDY SUGGESTIONS AND RECOMMEDATIONS BIBLIOGRAPHY ANNEXURE PAGE NO. 1-8 9-17 18-19 20-21 22-33 34-35 36-37 38-39 40-42

CHAPTER -1} PROFILE

COMPANY

Company Profile
With the aim of becoming a global company trusted by worldwide customers, we are committed to making continuous innovations to provide superior products the best technology and the highest quality to meet every users needs.

TOP MESSAGE: Our company puts The customer first in everything we do.

Estofa which means Quality, Estofa Automotives Committed to provide best quality product to our customer. Our company puts the customer first in everything we do, a commitment consistent with our policy to provide customers with a superior range of products and the finest possible quality. Inspired by this basic principle, we strive to tailor management strategies to ensure rapid response to every customer need. To respond quickly and accurately to customer demand, a company must be efficiently managed. Rest assured that we at ESTOFA AUTOMOTIVES have dedicated ourselves to strengthening and improving the efficiency of our business operations. Although most prominent in the technical sphere, our dedication goes well beyond that area; we're also active in improving efficiency in development, production, and sales. Our goal is to maximize customer satisfaction, a goal that demands not just the best products, but the highest quality technologies and services. Our highly effective mutual supply regime - which lets us access production and supply bases globally for optimum production and procurement - is one way of making that goal a reality. With this approach as our motivating principle, we seek to strengthen our business foundations while making even greater contributions within the international

community ARUN KUMAR Plant Head ESTOFA AUTOMOTIVES

PHILOSOPHY OF ESTOFA

Our Fundamental Beliefs Respect for the individuals Trust / Fairness / Independence The three pillars of Showas philosophy of Respect for the individual are: trust, fairness and independence. 1. Trust: Trust means to build a mutually respectable relationship where one always considers others and respects the opinions and situations of others in good faith. 2. Fairness: Fairness means that, given that everyone is equal, everyone is given equal Opportunity regardless of individuals attributes such as nationality, gender or educational background. 3. Independence: Independence means to act according to ones freely-held ideas and beliefs with Passion and responsibility in a trusting and fair environment. Our Corporate Principle With the aim of becoming a global company trusted by worldwide customers, we are Committed to making continuous innovations to provide superior products of the best technology and the highest quality to meet every users needs. Code of Conduct 1. Let actions be driven by ideals and visions.

2. Value time and ideas, and approach problems based on fundamentals and principles. 3. Place value on communications and understand the situation of othe COMPANY OVERVIEW

Company Name Plant Head :

ESTOFA AUTOMOTIVES ARUN KUMAR : Gali No.10, Plot No.6B Saroorpur Ind.Area Faridabad Phone No. 0129-2230307 July 15, 2009 MATHEW K.V. 25 Years in field of Automobile

Email estofaautomotives@gmail.com Office :

Established GM Operation Experience Industries.

: : :

OUR VALUABLE CUSTOMERS

Shreenath Casting Pvt.Ltd. Vee Tee Auto Manufacturing Co. Pvt. Ltd. Talbros Automotives Components Ltd.

Auto International (India) Ltd.

Sri Aurobindo Automotive Components. Anvil Forge Pvt.Ltd. Gates Indian Pvt.Ltd.

MAIN PRODUCTS As a manufacturer of automotives components for the automobile industries, Estofa group endeavor s to strengthen its product development capabilities of

Automobile technology by swiftly acquiring the social needs. At the same time, we continuously strive to strengthen our product competitiveness through thorough going cost reforms. AUTOMOTIVE COMPONENTS

Housing (Steering Suspension) Stem Steering Rod (Steering Suspension) Tube Machined (Steering Suspension) Rod Machined (Steering Suspension) SERRATIO PIN (Steering Suspension) All Type of Ball Pin Socket Machined (Cold Forging)

CHAPTER-2 THE

INTRODUCTION OF STUDY

PERFORMANCE APPRAISAL INTRODUCTION:Every year, most employees experience an evaluation of their past performance. This may take the form of a five-minute informal discussion between employees and their supervisors, or a more elaborate, several- week process involving many specific steps. Irrespective of their formality, however, employees generally see these evaluations as having some direct effort on their work lives. They may result in increased pay, a promotion, or assistance in personal development areas for which the employees needs some training. As a result, any evaluation of employees work can create an emotionally charged event. Because the performance evaluation is not the simple process it once was, it is now more critical to performance one while simultaneously focusing on key activities of the job. For example, should an employees body language in term of interaction with other employees and customers become part of the employees performance evaluation? How about how well a manager serves as a mentor to her employees? Moreover, should a supervisors employee s have input into their bosss effectiveness at work? Should employee ability to perform tasks in a timely and accurate manner matter in an evaluation of their work? Questions like these cannot be overlooked. If we want to know how well our employees are doing, weve got to measure their performance- not necessary an easy task. Many factor go into the performance evaluation process, such as why do we do them, who should benefit from the evaluation, what type of evaluation should be used, and what problem we might encounter. This project seeks answers to these and several other important factor in the performance-appraisal process. Before beginning this project, however, recognize that no performance appraisal system is perfect. There are a lot of reasons for completing them properly, but sometimes that simply doesnt happen. That may be a function of poor appraisal training or obsolete measures. It could also be the result of the dynamic environment in which employees work. That is, the job changes so supposed to do over the next 12 months. As a result, performance appraisal have come under attack.

OBJECTIVES OF PERFORMANCE APPRASIAL:Data relating to performance assessment of employees are recorded, stored, and used for several purposes. The main purposes of employee assessment are: 1. To effect promotions based on competence and performance. 2. To confirm the services of probationary employees upon their completing the probationary period satisfactorily. 3. To assess the training and development needs of employees. 4. To decide upon a pay raise where (as in the unorganized sector) regular pay scales have not been fixed. 5. To let the employees know where they stand insofar as their performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development. 6. To improve communication. Performance appraisal provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goals and concerns. This can also have the effect of increasing the trust between the rater and the rates. 7. Finally, performance appraisal can be used to determine whether HR programmed such as selection, training, and transfers have been effective or not. Broadly performance appraisal serves four objectives- (i) developmental uses, (ii) administrative uses/ decisions, (iii) organizational maintenance/ objectives, and (iv) documentation purposes.

WHEN IS IT COMPLETED? A supervisor is asked to complete a performance appraisal for each employee once a year. You may complete appraisals at other times of the year. For example, an appraisal is used to evaluate a new employee who completing a probationary period. WHO IS RESPONSIBLE FOR COMPLETING THE APPRAISAL FORM? The employees immediate supervisor completes the appraisal form. The immediate supervisor assigns and directs the employees work, checks work proper methods and results, is responsible for correction of performance problem and is immediately responsible for the work of the employee. The completed appraisal from is also reviewed by the line executive. Space is provided on the last page for signature and comments by the reviewer and employee.

THE APPRAISAL PROCESS:The appraisal process begins with the establishment of performance standards in accordance with the organizations strategic goals. These should have evolved out of the companys strategic direction and, more specifically, the job analysis and the job description. These performance standards should also be clear and objective enough to be understood and measured. Too often, these standards are articulated in ambiguous phrases that tell us little, such as a full days work or a good job. What is a full days work or a good job? The expectations a supervisor has in term of work performance by her employees must be clear enough in her mind so that she will be able to, at some later date, communicate these expectations to her employees, mutually agree to specific job performance measures, and appraise their performance against these established standards.

1. Establish performance standards with employees. 2. Mutually set measurable goals. 3. Measure actual performance. 4. Compare actual performance with standards. 5. Discuss the appraisal with the employee. 6. If necessary, initiate corrective action. (The appraisal process)

APPRAISAL METHODS:Three different approaches exist for doing appraisals: employees can be appraised against (1) absolute standards, (2) relative standards, or (3) objectives. No one approach is always best; each has its strengths and weaknesses. IN WHAT WAYS CAN ONE EVALUTE STANDARDS? Our first group of appraisal methods uses absolute standards. This means that employees are compared to a standard; and their evaluation is independent of any other employee in a work group. Included in this group are the following methods: the essay appraisal, the critical incident appraisal, the checklist, the adjective rating scale, forced choice, and behaviorally anchored rating scales. Lets look at each of these, focusing on their strengths and weaknesses.

The easy appraisal Probably the simplest method of appraisal is to have the appraiser write a narrative describing an employees strengths, weaknesses, past performance, potential, and suggestion for improvement. The strength of the easy appraisal lies in its in its simplicity. It requires no complex forms or extensive training to complete. The easy appraisal is also valuable in providing specific information, much of which can be easily fed back and understood by the employee. The critical incident appraisal Critical incident appraisal focuses the raters attention on those critical or key behaviors that make the difference between doing a job effectively and doing it ineffectively. The appraiser writes down anecdotes describing what the employee did that was especially effective or ineffective. Note that with this approach to appraisal, specific behaviors are cited, not vaguely defined individual traits. A behavior- based appraisal such as this should be more valid than trait- based appraisals because it is clear more job related. It is one thing to say that an employee is aggressive, imaginative, or relaxed, but that dose not tell us anything about how well the job is being done. Critical incidents, with their focus on behaviors, judge performance rather than personalities. The checklist appraisal In the checklist appraisal, the evaluator uses a list of behavioral descriptions and checks off those behaviors that apply to the employee. Once the checklist is complete, it is usually evaluated by the HRM staff, not the appraiser completing the checklist. Therefore the rater dose not actually evaluates the employees performance; he or she merely records it. An analyst in HRM then scores the checklist, often weighing the factors in relationship to their importance to that specific job. The final evaluation can then be returned to the appraiser for discussion with the employee, or someone from HRM can provide the feedback to the employee.

The adjective rating scale appraisal

One of the oldest and most popular methods of appraisal is the adjective rating scale. An example of some rating scale items is shown in exhibit 10-3. Rating scale can be used to assess factors such as quantity and quality of work, job knowledge, cooperation, loyality, dependability, attendance, honesty, integrity, attitudes, and initiative. However, this method is most valid when abstract traits like loyalty or integrity are avoided, unless they can be defined in more specific behavioral terms. The forced-choice appraisal Have you ever completed one of those tests that presumably give you insights into what kind of career you should pursue? ( Questions might be, for example, would you rather go to a party with a group of friends or attend a lecture by a wellknown political figure?) If so, then you are familiar with the forced- choice format. The forced- choice appraisal is a special type of checklist where the rate must choose between two or more statements. Each statement may be favorable or unfavorable. The appraisers job is to identify which statement is most (or in some cases least) descriptive of the individual being evaluated. As with the checklist method, to reduce bias, the right answers are not known to the rater; someone in HRM scores the answers based on the answer key for the job being evaluated. This key should be validated so HRM is in a position to say that individuals with higher scores are better-performing employees. The behaviorally anchored rating scale An approach that has received considerable attention by academics in the past years involves behaviorally anchored rating scales (BARS). These scales combine major elements from the critical incident and adjective rating scale approaches. The appraiser rates the employees based on items along a continuum, but the point are examples of actual behavior on the given job rather than general descriptions or traits. The enthusiasm surrounding BARS grew from the belief that the use of specific behaviors, derived for each job, should produce relatively errorfree and reliable ratings. Although this promise has not been fulfilled, it has been argued that this may be partly due to departures from careful methodology in the development of the specific scales themselves rather than to inadequacies in the concept. BARS, too, has also been found to be very time-consuming.

WHAT ARE THE RELATIVE STANDARDS METHODS? In the general category of appraisal methods, individuals are compared against other individuals. These methods are relative standards rather than absolute

measuring devices. The most popular of the relative methods are group order ranking, individual ranking, and paired comparison. Group order ranking Group order ranking requires the evaluator to place employees into a particular classification, such as top 20 percent. This method, for instance, is often used in recommending students to graduate schools. Evaluators are asked to rank the student in the top 5 percent, the next 5 percent, the next 15 percent, and so forth. But when used by appraisers to evaluate employees, raters deal with all their employees in their employees in their area. So, for example, if a rather has 20 employees, only four can be in the top fifth; and, of course, four also must be relegated to the bottom fifth Individual ranking The individual ranking method requires the evaluator merely to list the employee in order from highest to lowest. In this process, only one employee can be rated best. If the evaluator is required to appraise 30 individuals, this method assumes that the difference between the first and second employee is the same as that between the twenty-first and the twenty second. Even though some of these employees may be closely grouped, this method typically allows for no ties. In term of advantages and disadvantages, the individual ranking method carries the same pluses and minuses as group order ranking. For example, individual ranking may be more manageable in a department of six employees than in one where a supervisor must evaluate the 19 employees that report to her. Paired comparison The paired comparison method is calculated by taking the total of [N(N-1)]/2 comparisons. A score is obtained for each employee by simply counting the number of pairs in which the individual is the preferred member. It ranks each individual in relationship to all others on a one-on-one basis. If 10 employees are being evaluated, the first person is compared, one by one, with each of the other nine, and the number of times this person is preferred in any of the nine pairs is tabulated. Each of the remaining nine persons, in turn, is compared in the same way, and a ranking is formed by the greatest number of preferred victories. This method ensures that each employee is compared against every other, but the method can become unwieldy when large numbers of employees are being compared. HOW CAN OBJECTIVES BE USED TO EVALUATE EMPLOYEES?

The third approach to appraisal makes use of objectives. Employees are evaluated on how well they accomplished a specific set of objectives that have been determined to be critical in the successful completion of their job. This approach is frequently referred to as management by objectives (MBO). Management by objectives is a process that converts organizational objectives into individual objectives. It consists of four steps: (1) goal setting, (2) action planning, (3) self control, and (4) periodic reviews.

CHAPTER-3 STUDY

OBJECTIVE OF THE

OBJECTIVES OF THE STUDY

1}to know the motivation level of the employees 2}achievement of future goals and objectives 3}to know the influencing factors effects employees the most 4}to know the employees attitude towards working of the organization 5}to know what should be provided to employees so that they achieve organizational goals.

CHAPTER-4 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

MEANING OF RESEARCH RESEARCH IS DEFINING OR REDEFINING PROBLEM, FORMULATE THE HYPOTHESIS, COLLECT, ORGANISE AND EVALUVATE THE DATA MAKING DEDUCTION AND INDUCTION REACH TO CONCLLUSION AND INTERPRATE THE CONCLUSION AS WHETHER THE FIT WITH THE SOLUATION OR NOT. STEPS IN SAMPLING DESIGN SAMPLE UNIT: - Sampling Unit May Be A Geographical Construction Unit, Social Unit Etc.Our Project Units Geographical. SOURCE LIST: - It Is Also Known As Sampling Frame in Which First We Select the FARIDABAD . This Is The Source List Of Our Project. SIZE OF SAMPLE: - This Refers To The Number Of Items To Be Selected From The Universe To Constitute A Sample. Our Project Size Of Sample Is 50. SAMPLING PROCEDURE:IN THIS WE TAKE THE RANDOM SAMPLING TO SELECT THE SAMPLE

CHAPTER-5 DATA ANALYSIS AND INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

1} Performance appraisal is needed in the organisation?

Response Yes No

% share 70 30

INTERPRETATION:35 Respondents needed performance appraisal in the organisation while 15 employees does not required.

2}The desired target of the organization is achieved through the performance appraisal?

Response Yes No

% share 80 20

INTERPRETATION:40 Respondents helps in achieving desired objectives of the organization through performance appraisal and 10 respondents does not in favour.

3}Are your complaints solved by the superiors?

Response Yes No

% share 60 40

INTERPRETATION:30 Respondents said that their complaints are solved by superiors and complaints of 20 respondents are not solve d by superiors.

4}Which incentive plans satisfies you the most?

Medical facility plan Salary increaments Non financial incentives Credit facility plan

30 30 20 20

INTERPRETATION :15 Respondents are satisfied by the medical facility ,15 by salary increament plan and 10 respondents are satisfied by the credit and 10 by non financial incentives.

5}Performance appraisal is helpful in reducing grievances among the employees?

response Yes No

% share 70 30

INTERPRETATION:35 respondents said that performance appraisal helps reducing grievances among the employees whereas 15 were against this opinion.

6}Are your salary matches up your job responsibility?

response Strongly agree Agree Disagree Strongly disagree

% share 60 20 10 10

INTERPRETATION:30 Respondents are strongly agree with this point,10 respondents are agree with this point,5 respondents are disagree and 5 respondents are strongly disagree with this point.

7}Does you benefit from group benefit programmes?

response yes no

% share 60 40

INTERPRETATION:30 respondents get benefit from group benefit programmes and 40 respondents does not get benefit from these programmes.

8}How do you rate your overall performance in last six months?

response Good Fair poor

% share 50 50 0

INTERPRETATION:25 respondents rate themselves as good performer,25 respondents rate themselves as fair performer and no one consider himself with poor performance.

9}Do you find it necessary to communicate with employees issues such as future work prospects,success,failure of company?

response Yes no

% share 90 10

INTERPRETATION:45 respondents find it necessary to communicate with employees about the future prospects and 5 respondents does not find it necessary.

10}Are benefits provided you are adequate and competitive?

Response yes No

% share 80 20

INTERPRETATION:40 Respondents considered that benefits provided are competitive

And adequate while 10 respondents are not satisfied.

11}Are supervisors encourage you to set high goals?

options Strongly agree Agree Strongly disagree Neutral

% share 60 20 20 0

INTERPRETATION:30 Respondents are strongly agree with this point,10 respondents are agree and 10 respondents are strongly disagree with this point.

12}Poor performance is handled sensitively or not?

response Yes No

% share 60 40

INTERPRETATION:30 Respondents are agree with this point while 20 respondents are against this point.

CHAPTER-6 FINDINGS OF THE STUDY

FINDINGS OF THE STUDY

1. Most of the people needed performance appraisal. 2. Performance appraisal helps in reducing grievances among the employees. 3. Performance appraisal helps in achieving organisation . 4. Most of the people satisfied by the organization structure. 5. Most of the people satisfied with their salaries. 6. Poor performance are handled sensitively to some extent. 7.Most of the employees are not satisfied with the incentives plans provided to them. 8. Complaints of most of the employees are not solved sensitively.

CHAPTER-7 AND

SUGGESTIONS RECOMMEDATIONS

SUGGESTIONS AND RECOMMEDATIONS

1. Most of the employees needed performance appraisal.So it must be done on monthly or quarterly on regular basis. 2. Organisation must provide more incentives to employees. 3. Organisation must seek out complaints of all the employees and create loyal atmosphere so that they informally explains the problem. 4. They must give training programmes to the employees. 5. Organisation must identify the personal needs of the employees and fulfils them so that they target organization aims as their objectives. 6. Superiors must have motivating skills.So that they considered as a encouraging tool for employees.

CHAPTER -8

BIBLIOGRAPHY

BIBLIOGRAPHY
1}www.google.com 2}www.wickipedia.com 3}www.estofaautomotives@gmail.com 4}Human Resource Management,V.S.P Rao

CHAPTER-9

ANNEXURE

ANNEXURE
1}Performance appraisal is needed in the organization? A}yes B}no 2}The desired target of the organization is achieved through the performance appraisal? A}yes B}no 3}Are your complaints seek out by the superiors? A}yes B}no 4}Which incentive plan satisfies you the more? A}medical facility plan B}salary increaments C}credit facility plan

D}non financial incentives 5}Performance appraisal is helpful in reducing grievances among the employees? A}yes B}no 6}Are your salary matches up your job responsibility? A}strongly agree B}agree C}disagree D}strongly disagree 7}Does you benefit from the group benefit programmes? A}yes B}no

8}How do you rate your overall performance in the last six months? A}good B}fair C}poor 9}Do you find it necessary to communicate with employees issues such future prospects,success and failure of the company? A}yes B}no 10}Are benefits provided you are adequate and competitive? A}yes B}no 11}Are supervisors encourage you to set high goals? A}strongly agree B}agree C}strongly disagree D}neutral 12}Poor performance is sensitively or not?

A}yes B}no