INDEX

Sr. No. PARTICULARS Page No.

1 Introduction 1.1 to 1.7
a] Overview Of The Industry 1.1
b] Importance Of Study 1.2
c]Objective Of The Study 1.
d] Research Methodology 1.5
e] Scope Of The Study 1.6
f] Limitation Of The Study 1.7
2 Company profile 2.1 to 2.7
a] History of organization 2.1
b] Achievments of organization 2.2
c] Vision ,Mission, goals 2.3
d] promoters of organization 2.5
e] Other information of organization 2.6
3 Theoretical Background 3.1 to 3.9
a] Introduction And Definition Of HRM. 3.1
b] Performance Appraisal Meaning 3.2
c] Method Of Performance Appraisal 3.3
d] Methods 3.4
e] Disadvantage 3.5
f] Benifits 3.6
g] Rating Errors In Performance Appraisal 3.7
h] Roles In Performance Appraisal 3.8
i] Key Concept In PMS 3.9
4 Data Analysis and Interpretation 4.1 to 4.24
5 Observations and Findings 5.1
6 Conclusions 6.1
Bibliography 7.1
Appendices: Questionnaires 8.1
 CHAPTER-I
INTRODUCTION OF THE STUDY
 CHAPTER I) : INTRODUCTION OF THE STUDY:

1.1: OVERVIEW OF INDUSTRY-

 Engineering is a diverse industry with various segments. A company from this sector can be a power
equipment manufacturer (like transformers and boilers), execution specialist for Engineering,
Procurement and Construction (EPC) projects or a niche player (e.g.: providing environment friendly
solutions like waste water and air pollution treatment plants). The company can also be an electrical, non-
electrical machinery or static equipment manufacturer too.
 Order book size is the biggest determinant of the company’s performance in engineering sector. The
same holds true for construction companies as well. It indicates companies’ revenue visibility. In order to
bag big contracts, companies need to have a strong balance sheet and proven execution capabilities.
Companies in these sectors need huge working capital to execute bigger contracts. In most cases, they
receive only part payment at initial stages and the remaining comes as projects get executed.
 Indian capital goods manufacturers have been facing competition from foreign players; particularly
Chinese and Korean manufacturers since the onset of 11 th five year plan. Currently, despite increased domestic capacities, low cost foreign
manufacturers still give tough competition to domestic manufactures in some segments of the industry.

 Power sector contributes almost 70-75% to the engineering companies' revenues. The government
plans to add large generation as well as transmission and distribution (T&D) capacities in view of the
long term paucity of power in the country. Barring the short term challenges, there is enormous potential
for the engineering majors in the power space, though renewables have been giving a tough time to
makers of traditional power generation equipment.
 Given the lack of quality infrastructure in India, the construction industry has over the long term been
witness to a strong growth wave powered by large spends on housing, road, ports, water supply, rail
transport and airport development. The sector’s growth has however remained quite subdued over the past
few years – especially when compared to the boom years. A big reason for this is the stalling of various
big ticket projects in recent years due to myriad reasons. Infrastructure is also a key area of operation for
major Indian engineering companies.
THE ENGINEERING SECTOR (KEY POINTS)-

 SUPPLY

 Supply is abundant across most of the segments, except for technology intensive executions. However,
supply of equipments face bottlenecks such as logistics and lack of manpower for timely assembly and
erection of equipments; etc.
 DEMAND
 Demand growth in this sector is fuelled by expenditure in core sectors such as power, railways,
infrastructure development, private sector investments and the speed at which the projects are implemented.
The pipeline for projects are down to a trickle due to the current slowdown in private investment and the
pace of project execution has been lumpy in the year gone by due to many delays in execution and cash
crunch on the part of clients.
 BARRIERS TO ENTRY

 Barriers to entry are high at upper end of the industry as skilled manpower and technologies as well as
ability to execute large projects are a prerequisite in engineering sector. However, in few construction
businesses like road business, which are not very technologically inclined, the company’s expertise in
execution is the key differentiator.
 BARGAINING POWER OF SUPPLIERS

 Bargaining power of suppliers is low because of intense competition amongst them. However, in
technology driven high-end segments, suppliers have the upper hand.
 BARGAINING POWER OF CUSTOMERS

 Bargaining power for technology driven and highly skilled segments is low. However, fierce competition
has increased bargaining power of customers in power generation and T&D equipments.
 COMPETITION
 Majority of the companies compete in terms of pricing, experience in specific field, quality of equipment,
capabilities with respect to size of projects that can be handled and timely execution. Nevertheless,
competition is higher in the industry as companies of all sizes have been trying to move towards scaling up
their technology and capacity.
FINANCIAL YEAR '17

 FY17 was yet another disappointing year for the Indian engineering industry. Order inflows were
weak due to tepid private sector investments, delays in project awards, land acquisition problems and
environmental issues. Due to the low demand environment, operating margins continued to be under
pressure. Thus just like the previous year, slowdown in order inflows along with lower pace of project
execution proved to be a double whammy for the engineering companies.
 Due to low capacity utilization across the industrial sectors, the much anticipated capex failed to pick
up during the year. Commodity prices have shown some signs of life, but overall remain at relatively
lower levels which has further lead to weakness demand for capital equipment. This could further impact
the momentum in industrial capex. While there has been some increase in activity this year, there remains
uncertainty about when the much awaited revival in the capex cycle will come in earnest.
 The situation in the construction industry remained subdued too - given the slowdown in the overall
economy. A key issue faced by private players has been financial pressures in terms debt servicing
coupled with errors in estimation and delays in execution across segments. This has led to a lot of stress
in the balance sheets of many of these companies as well as their lenders, leading to further reluctance on
the part of banks to lend.

PROSPECTS

 World class infrastructure is of utmost importance for unleashing high and sustained growth. In fact, it
is the long term driver for the construction sector as well. While short term factors may keep sentiments
subdued, over the long term, demand will remain strong. The government’s stated commitment to
improving the country’s infrastructure should translate into business for construction companies as and
when the black clouds clear-up. However, assimilation of goods and services tax across the rank and file
of industry and the low demand environment are likely to push a whole hearted recovery in capital
investments further into the future.
 From a policy perspective there has been a growing consensus that a private-public partnership is
required to remove difficulties concerning the development of infrastructure in the country. The
realisation finally seems to be setting in with numerous variations of BOT (build, operate and transfer)
projects being awarded to various private sector companies. The government has also put in place dispute
resolution mechanisms for PPP projects. The long term future of the Indian engineering and construction
sector remains promising.
 Any government initiatives to bring clarity to power sector reforms are welcome. As per Government
official reports, regulatory delays have stalled projects large projects in the road, power, coal and mining
sectors. The government has been working on trying to fast track large sized infrastructure projects. It
will work to expedite these projects which have been stalled due to delay in clearances, funding and
various other reasons. These initiatives may help revive the Engineering and Construction sector going
forward.
 The next couple of years may remain challenging for the engineering and construction companies.
While execution pace is slowing down due to various internal as well as macro issues, margins have also
come under enormous pressure due to anemic demand, rising competition and over capacity in many sub
sectors. Thus, unless the macro-environment shows significant improvement, overall growth will
continue to remain sluggish in the near term.

GROWTH OF ENGINEERING INDUSTRY-

The Indian Engineering sector has witnessed a remarkable growth over the last few years driven by increased
investments in infrastructure and industrial production. The engineering sector, being closely associated with the
manufacturing and infrastructure sectors, is of strategic importance to India’s economy.
India on its quest to become a global superpower has made significant strides towards the development of its
engineering sector. The Government of India has appointed the Engineering Export Promotion Council (EEPC)
as the apex body in charge of promotion of engineering goods, products and services from India. India exports
transport equipment, capital goods, other machinery/equipment and light engineering products such as castings,
forgings and fasteners to various countries of the world. The Indian semiconductor industry offers high growth
potential areas as the industries which source semiconductors as inputs are themselves witnessing high demand.
India became a permanent member of the Washington Accord (WA) in June 2014. The country is now a part of
an exclusive group of 17 countries who are permanent signatories of the WA, an elite international agreement on
engineering studies and mobility of engineers.

MARKET SIZE
Turnover of capital goods industry is estimated to have reached US$ 70 billion in 2017^.
India exports its engineering goods mostly to the US and Europe, which accounts for over 60 per cent of the total
exports. Engineering exports for the period of FY18 were US$ 76.20 billion as against US$ 65.23 million in the
same period previous year. Exports of electrical machinery and equipment grew at a CAGR of 7.00 per cent
during FY10-18 to reach US$ 6.7 billion in FY18. The figure stood at US$ 1.28 billion for Apr-May 2018.
The electrical equipment industry observed a witnessed a record seven-year high growth of 12.8 per cent in
2017-18, on the back of increase in government spending on rural and household electrification schemes and
programmes to improve power distribution.
Construction equipment industry of India is expected to grow over 18 per cent in 2018-19.
INVESTMENTS
The engineering sector in India attracts immense interest from foreign players as it enjoys a comparative
advantage in terms of manufacturing costs, technology and innovation. The above, coupled with favourable
regulatory policies and growth in the manufacturing sector has enabled several foreign players to invest in India.
The foreign direct investment (FDI) inflows into India's miscellaneous mechanical and engineering industries
during April 2000 to December 2017 stood at around US$ 3.39 billion, as per data released by the Department of
Industries Policy and Promotion (DIPP).
In the recent past there have been many major investments and developments in the Indian engineering and
design sector:

 L&T Hydrocarbon Engineering bagged a 5 year framework agreement with Shell Global Solutions
International B.V., to provide procurement, construction management services and engineering services
for latter’s projects in South East Asia, Middle East and India.

GOVERNMENT INITIATIVES
The Indian engineering sector is of strategic importance to the economy owing to its intense integration with
other industry segments. The sector has been de-licensed and enjoys 100 per cent FDI. With the aim to boost the
manufacturing sector, the government has relaxed the excise duties on factory gate tax, capital goods, consumer
durables and vehicles.

 In the Union Budget 2018-19, the government allocated US$ 92.22 billion for the infrastructure sector.
Allocation to the defence sector was raised to US$ 45.57 billion under Union Budget 2018-19. In
addition, Make in India policy is being carefully pursued to achieve greater self-sufficiency in the area of
defence equipment including air-craft.
 The Union Cabinet has approved incentives up to Rs 10,000 crore (US$ 1.47 billion) for investors by
amending the M-SIPS scheme, in order to further incentivise investments in electronics sector, create
employment opportunities and reduce dependence on imports by 2020.

The engineering industry, and the capital goods sector in particular, have a feast when the nation-building
process is on an upswing. But whenever a society or polity inadvertently grinds the process of nation-building to
a halt, the engineering industry faces a famine.

Across the globe, India not excluded, the political community seems to have forgotten that the population is
growing and that it is growing more in the developing world. To meet the needs of that growing population, and
satiating their ever-increasing demands, capacity-building in the social, agricultural, infrastructure, industrial and
service sectors has to continue irrespective of economic cycles. Barring China, which has possibly created
surplus capacity, every country in the developing world is bereft of sufficiency in virtually every sector.

In India, with a clear mandate bestowed by the electorate to improve development and end corruption, the
Narendra Modi government started very well. Between the government and the regulator, inflation—which
made the common man poorer by the day—was brought under control. A visible move was made to cut interest
rates to kickstart the investment cycle. The bureaucracy was energized with a clear direction from the Make in
India policy. Providential help came from the slide in crude prices, which brought the current account deficit to a
respectable 1.8%. We also have a prime minister who has elevated the visibility of ‘Brand India’.

All this brought back growth. Though part of it was attributable to the way GDP (gross domestic product) was
calculated, in comparison to a bruised Europe, China, Russia, Japan and West Asia, we are almost unscathed and
better placed.

One may wonder then about why us, “the argumentative Indians”, are complaining. Is it that Indians do not want
to be happy? No. The truth lies elsewhere. We have not been able to adequately capitalize on our strengths. One
reason for this is that we did not behave like a unified nation or even a federal nation. Because of that, we have
lost one year. I hope we will not lose another.

For the engineering industry, it hasn’t entirely been a lost year. Sectors such as food, food processing,
pharmaceuticals, beverages, textiles, auto, auto ancillaries, consumer durables and light engineering continued to
create capacities. Both brownfield as well as greenfield projects are getting implemented in these sectors. The
renewable energy sector, especially the solar photovoltaic segment, is witnessing unprecedented growth,
supported by substantially reduced capital costs and supportive and pragmatic government policies.

The laggards are the cement, steel, non-ferrous metallurgy, oil and gas, fertilizer, and power sectors. Among
these, the first three are justified in not adding new capacities since their capacity utilization is languishing
between 60% and 70%. Unless capacity utilization moves closer to 90%, new capacity addition cannot be
justified.

However, inaction in the other three sectors in initiating capacity building will certainly have serious
ramifications in the medium term. India’s demand for traction oil and petrochemicals is growing at a fast pace.
With a growing population, agriculture has to keep pace with food demand. We import fertilizer, putting
pressure on our foreign currency wallet. We continue to deny power to both the industry and the population by
resorting to power cuts (in many parts for extended hours) rather than building power plants.
Our energy sensitivity for future growth will almost be on par with GDP growth. This will translate into an
average 7-8% demand growth annually. We need the central and state governments to set up more power plants
without any further delay as they take at least four to five years from concept to completion.

Traction is already building in the road, railways and defence sectors, with a focus on driving capacity creation
and modernization. We are expecting these initiatives to translate into orders and then to execution at an
accelerated pace in 2016. The sheer sizes of the projects already announced, and those that are in the pipeline,
should give a boost to the order book of the engineering industry both in the organized and SME (small and
medium enterprise) sectors.

We have witnessed a noticeable retardation in our engineering exports in the recent past. Depressed economies
across the world are going slow in building capacities. A lot more non-tariff barriers are indirectly getting
erected to protect domestic manufacturers by many of India’s target export markets. As much as India is
promoting domestic manufacturing, many potential and substantive markets in South-east Asia, West Asia and
South America are also demanding domestic manufacturing and value-addition to reduce hard currency outflow
and push job creation.

The unprecedented depreciation of the euro and the Japanese yen in the past year has allowed companies from
those geographies re-emerge as credible competition to Indian exporters. To combat this challenge, we look
forward to export incentives on par with China, Japan and South Korea and an extension of long-term credit
facilities for our international customers.

The only levers that are going to help the Indian engineering industry get through the rough weather is
innovation, operational excellence and cost containment coupled with help from the governance. Having seen
the worst, the engineering and capital goods industry expects a better year ahead. But still nowhere close to the
boom years of 2003-10.
1.2 IMPORTANCE OF THE STUDY

Performance appraisals provide employees and managers with opportunities todiscuss areas in which employees excel and
those in which employees need improvement.Performance appraisals should be conducted on a regular basis, and they
need not be directlyattached to promotion opportunities.

Personal Attention

During a performance appraisal review, a supervisor and an employee discuss theemployee's strengths and weaknesses.
This gives the employee individual face time with thesupervisor and a chance to address personal concerns.

Feedback

Employees need to know when their jobduties are being fulfilled and when there areissues with their work performance.
Managers should schedule this communication on aregular basis.

Career Path

Performance appraisals allow employees and supervisors to discuss goals that must bemet to advance within the company.
This can include identifying skills that must beacquired, areas in which one must improve, andeducationalcourses that must
be completed.

Employee Accountability

When employees know there will be regularly scheduled evaluations, they realize thatthey are accountable for their job
performance.

Communicate Divisional and Company Goals

Besides communicating employees' individual goals, employee appraisals provide theopportunity for managers to explain
organizational goals and the ways in which employeescan participate in the achievement of those goals.

1.3: OBJECTIVES OF THE STUDY :

To study or measure performance appraisal of employee.

To identify technique of performance appraisal followed by top gear transmission, satara.

To study how the employee are rated against these parameter.

To identify how the performance of the employee is improved and enhanced.

To provide suggestion and reccomendation to improve their performance appraisal.

1.4: RESARCH METHODOLOGY-

Resarch methodology is a way to systematically solve a research problem.it is science of studying how reasarch
is done scientifically. Essentially it is procedure by which the researchers go about their work of describing,
evaluating & predicting phenomenon.

It aims to give the work plan of research. It provides training in choosing methods, materials, scientific tools &
technology relevant for solution of problem.

RESEARCH DESIGN TYPE:

Since employees from all levels (strata) namely the top level, the middle level, and the lower level are bound to experience
stress, the sample has to include employees from all levels. Stratified random sampling technique was selected while
preparing questionnaire as this was the only technique that helped to draw conclusions accurately

POPULATION:

All the items under consideration in any field of inquiry constitute a “universe” or “population”.population were
used for performance appraisal is 50.

SAMPLE SIZE:

A sample size of 50 respondents was chosen because of time constraint. Through

small sample size but it consist of varied type of respondents so as to overcome any

error at the time of generalization of result.

SAMPLE SELECTION METHOD:

Simple random sampling were used for collection of data.

DATA COLLECTION –

Data collection simply means gathering & selection of information which is most critically used for particular
research. This is an exploratory type of research. The study involved interviwes with workers of “TOP GEAR
TRANSMISSION .SATARA”. the data was collected with help of a questionnaire.

The study has been carries out by using of both the source of data primary as well as secondary.

PRIMARY SOURCE OF DATA :-

It is the first time information collected by the researcher for the study. There

are methods used for collection of data and the researcher has used

1. Observation Method

2. Questionnaires Method

3. Discussion Method

The primary data are those which are collected afresh & for first time & thus happen to be original in character.
The primary data can obtain through direct communication with respondent in one form or another or through
personnel interviews. The primary data is collected from employee of various department in the organization the
primary data is also collected from managers, supervisors & other member of working staff.

SECONDARY SOURCE OF DATA:-

Secondary source are those which have already been collected by someone else & which have already been
through the statistical process. Secondary data is collected from report of “TOP GEAR TRANSMISSION
.SATARA”. other information is collected from magazine & handbook of the organization.

Secondary data collected from –

 Internet
 Organizational report
 Books & magazines.
1.5 SCOPE OF THE STUDY :-
1) FUNCTIONAL SCOPE :-

Functional scope of study is employee satisfaction to wages & salary. It has a wide scope in each &
every organization .but this report is particularly related with one company.

2) GEOGRAPHICAL SCOPE :-

Geographical scope of the study is concern with satara.rural area of the state of maharashtra in
satara district.

3) ANALYTICAL SCOPE :-
For data analysis method used. it is just a numeric data given by the workers themselves. data has
been presented in pie .diagram.

4) CONCEPTUAL SCOPE:
The study dealing with concept of performance appraisal, methods of performance appraisal and
sources of appraisal.

1.6 LIMITATIONS OF THE STUDY

 As the study revolves around the performance appraisal of human resources aspects the overall organization
performance cannot be ascertained. In spite of giving honest and sincere efforts there are several limitations, which
are as follows:
 The period of study is only for about 2 months, which is a major constraint.
 The perception bias or attitude of the respondents may also act as hurdles to the study.
 The study is only confined to performance appraisal.
 The study cannot be oriented with all HRM practices followed by
 The sample size taken for the research is small due to the constraint of time.
 CHAPTER-II

ORGANISATIONAL PROFILE
CHAPTER II) : ORGANISATIONAL PROFILE-

2.1: HISTORY OF THE COMPANY:-

The company “Top Gear Transmissions” was started in June 2002 by Mr. Shrikant Pawar having

prior experience of 10 years as a Design Manager in one of the gear manufacturing company

(Manufactures planetary gearboxes). Top Gear Transmissions (TGT) made a humble beginning with a

team of 6 people & a total capital of Rs. 5 lacs. The first factory was purchased from a nationalized bank

which was a sick unit & revived it into a progressive company with a healthy growth rate of up to 100%

per annum. In the first couple of years most of the parts which required critical machining were

outsourced from various sources due to lack of own infrastructure & machines. Mr. Pawar diverted most

of the profit into increasing capital, infrastructure, tooling & machinery. By the year 2002 TGT had a

turnover of Rs. 26 lacs which has now increased to Rs. 1200 lacs in 2008-09 & other group companies

putting in another Rs. 800 lacs, which comes to total of Rs. 20 Crores in 2008-09.
 From his college days he had dreamt of starting a company manufacturing planetary gear boxes

of his own. He was working in a private company when he partially started a small workshop in which he

executed various job works. Slowly, but surely he extended his workshops activities into making

agricultural machines, constructions machines, chemical machinery, etc. He realized the potential in

himself & vowed to setup an industry in a backward region like SATARA, there by bringing in more

employment opportunities for people & recognition for the region.

During early days in business Mr. Pawar faced problems at every step & stage with meager

capital investment as well as working capital. He was forced to hire machines in order to complete

individual orders. During these tough times he got little or no financial support from his family, friends

or relatives since none from his family had done business before him & were economically not rich.

With the help of ISO 9001 certification, TGT has laid down their own quality parameters &

policy, hence supplying the best of quality to its customers. TGT has the strategy of maintaining a

healthy growth rate of 100% per year. TGT is increasing its export contribution, thus adding more

foreign currency, name & fame both for the country & company. In due process it is continually

increasing employment opportunities in the region. Presently TGT & its sister companies together

employ about 150 highly qualified & experienced people. Not only TGT, but its vendors are also basking

in the glory of its success. At present TGT has a vendor base of 36 subcontractors in the city & another

12 in the adjoining areas, each employee about 5 to 10 people. TGT therefore directly and indirectly

provides employment for a skilled work force of about 300 to 400 people in & around Satara.

Top Gear Transmissions are engaged in the field of Manufacturing Planetary Gear Boxes as well

as number of custom built gearboxes with optimum design feature & using latest technology for

improving the geometrical accuracy of the gear teeth profile with the help of a team of experienced

professionals.

TGT now has even better management system in place with the help of ERP BUSINESS

SOLUTIONS system and Computer Aided Design which further helps in serving the customer even
better. Short delivery period with efficient before and after sales service are the basis of the service that

Top Gear offers to its customers, with the commitment of everybody in Top Gear Transmissions to

improve the level of quality of its products. This is recognized by a number of satisfied customers in

India and Abroad. TGT has made up its goal to establish their brand name and make its mark at the

global level as one of the leading manufacturers of Planetary Gear Boxes. The path to global recognition

has already been laid down by Mr. Pawar by exhibiting in Germany in 2009. Many more international

exhibitions are coming in near future like Brazil in 2009. TGT has already supplied planetary gear boxes

in countries like USA, Italy, Germany, France, Middle East & other in the neighborhood countries like

Bangladesh, Pakistan, Nepal, Shri Lanka, etc.

TGT has special way of increasing both its capital & manufacturing capacity every year by

reinvesting its profits into business again & again, hence successful in maintaining a health growth rate

of 100% every year. The same is expected for years to come under the leadership of Mr. Pawar.

Repetitive orders from international clients prove the quality acceptance of TGT gear boxes at global

level.
2.2: CONSTITUTION OF THE ORGANISATION-

ACHIEVMENTS-

National Award for Developing Indigenous

Technology 2010
By the Hands of Hon’ble Late Dr. A.P.J Abdul Kalam Former
President of India
 FICCI Award 2009
By Hands of Hon’ble Mr. Pranab Mukharjee Finance Minister
Govt. of India

National Level SME & Entrepreneurship Excellence

Award 2008
By the Hands of Hon’ble. Mr. Dinesh Rai (IAS) Secretary
MSME Ministry Govt Of India, From Small & Medium Business
Development Chamber of India.
 National Productivity Award 2009
By the Hands of Hon’ble. Mr. Rajendra Darda, Secretary Industry Minister – Govt.of Maharashtra By National Productivity
CounciL

2.3: VISION, MISSION, GOALS OF ORGANIZATION-

MISSION:

We are determined to design, manufacture and deliver; innovative and most optimal solutions to our esteemed
clients. We will strive to earn the global recognition as a preferred source for wide range of gear boxes.

VISION:

Top gear transmission aims to become the most trusted and admired power transmission solutions provider by
adopting the best engineering practices and by relentlessly improving our products and business efficiencies.

GOAL:

Top Gear believes and strives for nurturing values like Ethics, Respect, Unity and responsibility  in each of
these  individual employees and also within and outside the organization.

Top Gear Transmission as a Organization orientates all its business activities towards aim of offering its
customers an unrivalled quality of products.

To aid the progression towards this goal, Top Gear has implemented a Management system and gained
accredition to ISO 9001:2008 Standard.

Top Gear understands that most important in any Management system is people who operate within an
organization. Top Gear therefore pledges to do all that is necessary to provide its Employees with Technical
Knowhow, sufficient Training, and Personal development opportunities that are necessary to develop ethos
of Continuous Improvement in Organization

2.4: PROMOTERS OF ORGANIZATION-

BOARD OF DIRECTORS-

Mr. Shrikant Pawar – CMD

Everyone has dreams but only few have the passion to transform it into a vision.
Mr. Shrikant Pawar , a 1990 Production Engineering had such a dream.

Backed by wide experience in Gear Technology & latest developments and Mr. Shrikant Pawar is globally
recognized for his innovative solutions to various Segments.

This has all been possible thanks to a dream which became reality through an iron will, the ability to inspire
enthusiasm in his staff and encourage them to achieve more and more, and through confidence in his own
success – qualities that make Mr. Shrikant Pawar a role model for new generations of aspiring entrepreneurs.

2.5: OTHER INFORMATION OF ORGANIZATION-

ORGANISATIONAL CHART-
 M.D
M.R
General
Manager

Production Marketing Purchase HR & Admin QA Head Design Head

Head Head Head Head

Marketin Service Dispatch Purchase HR & Job Draftsman

g Engineer Clerks Assistant Admin Inspector &
Engineer Assistant Engineers

Maintenance Store Incharge Assembly In-charge Production Planning

Incharge Engineer

Assembly Fitters Supervisors

Skilled & Unskilled

Operators

PRODUCT -

PLANETARY GEARED MOTOR

Planetary geared motor is offered in modular
design with wide a range of variety. The geared
motors are offered with IEC motors having ISI
standard with IP55 protection & S 4 Class duty, 50 Hz
& 440 Volts. The geared motor can be supplied
along with electromagnetic brake too as per the
demand.

Constructional features of planetary geared motors

design is space saving & compact in size .It has high torque to weight ratio compared to conventional geared
motors.

The planetary geared motor is becoming very popular in various industries due to various advantages, simplicity
in design, less maintenance, high reliability & energy saving.

PLANETARY DRIVES
Complete range of modular design planetary gearboxes for industrial applications. It combines high performance
with low cost and compact size, excellent reliability, simple installation and reduced maintenance. Top Gear’s
industrial planetary gearboxes come in a range of sizes to ensure optimum duration and silent running in all sorts
of applications.

Features

Power                      :  0.17 kW to 75 kW

Torque Capacity     :  100 Nm to 1000 Nm

Reduction Ratio      :  3.6 to 100000:1

Mounting                    : Flange / Foot / Shaft mounted

Application -Steel Industry & Alumina refinery 

Sugar Industry
Chemical Industry
Textile Industry
Infrastructure Industry
Cement and Mining Industry
Plastic & Rubber Industry
Industrial Automation
Material Handling Equipment
Conveyors
Machine Tools
Bottling Plants
Paper Industry
BEVEL PLANETARY DRIVES

Bevel planetary drives suits the application demand where

in space constraints for inline prime mover.

The range of Bevel Planetary Drives comes with spiral bevel gears at input stage. The prime mover arrangement
can be offered as solid shaft to mount a pulley or sprocket or coupling, and also for hollow female type where in
flange mounted electric or hydraulic motor can be directly installed through a flexible shaft.

Gear box mounting can be offered as foot mounting or flange mounting as per application demands.

Use of Bevel Planetary Drives is becoming popular in various applications mainly for right angle transmission &
replacement of conventional worm or bevel helical gearboxes

Applications Steel Industry & Alumina refinery

Sugar Industry
Textile Industry
Plastics and Rubber Industry
Chemical Industry
Cement and Mining Industry
Material Handling Equipment
Clarifier drives
EOT Cranes
Pipe Plants
Machine Tools
OTHER INFORMATION-

TOP GEAR TRANSMISSION PVT LTD M-71, Addl. M.I.D.C.

SATARA. Dist Satara

Maharashtra, India, Pin : 415 004  Telephone :

91-2162-240642

91-2162-240493 Email id – [email protected]
 CHAPTER-III

CONCEPTUAL FRAMEWORK

CHAPTER III) : CONCEPTUAL FRAMEWORK:

Human resource management (HRM or HR) is the strategic approach to the effective management of
organization workers so that they help the business gain a competitive advantage, Commonly referred to as the
HR Department, it is designed to maximize employee performance in service of an employer's strategic
objective HR is primarily concerned with the management of people within organizations, focusing
on policies and on systems. HR departments are responsible for overseeing employee-benefits design,
employee recruitment, training and development, performance appraisal, and rewarding (e.g., managing pay and
benefit systems). HR also concerns itself with organizational change and industrial relations, that is, the
balancing of organizational practices with requirements arising from collective bargaining and from
governmental laws.

Human resources overall purpose is to ensure that the organization is able to achieve success through people.
[5]
 HR professionals manage the human capital of an organization and focus on implementing policies and
processes. They can specialise in recruiting, training, employee-relations or benefits. Recruiting specialists find
and hire top talent. Training and development professionals ensure that employees are trained and have
continuous development. This is done through training programs, performance evaluations and reward programs.
Employee relations deals with concerns of employees when policies are broken, such as in cases involving
harassment or discrimination. Someone in benefits develops compensation structures, family-leave programs,
discounts and other benefits that employees can get. On the other side of the field are Human Resources
Generalists or business partners. These human-resources professionals could work in all areas or be labor-
relations representatives working with unionized employees.

HR is a product of the human relations movement of the early 20th century, when researchers began
documenting ways of creating business value through the strategic management of the workforce.[citation needed] It
was initially dominated by transactional work, such as payroll and benefits administration, but due
to globalization, company consolidation, technological advances, and further research, HR as of 2015 focuses on
strategic initiatives like mergers and acquisitions, talent management, succession planning, industrial and labor
relations, and diversity and inclusion. In the current global work environment, most companies focus on
lowering employee turnover and on retaining the talent and knowledge held by their workforce.[citation needed] New
hiring not only entails a high cost but also increases the risk of a newcomer not being able to replace the person
who worked in a position before. HR departments strive to offer benefits that will appeal to workers, thus
reducing the risk of losing corporate knowledge
PERFORMANCE APPRAISAL –

INTRODUCTION

Performance Appraisal is the important aspect in the organization to evaluate the employees performance. It
helps in understanding the employees work culture, involvement, and satisfaction. It helps the organization in
deciding employees promotion, transfer, incentives, pay increase.

3.1 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT-

Human Resource (or personnel) management, in the sense of getting things done through people, is an essential
part of every manager’s responsibility, but many organizations find it advantageous to establish a specialist
division to provide an expert service dedicated to ensuring that the human resource function is performed
efficiently.

“People are our most valuable asset” is a cliché, which no member of any senior management team would
disagree with. Yet, the reality for many organizations are that their people remain under valued, under trained
and under utilized.

The market place for talented, skilled people is competitive and expensive. Taking on new staff can be disruptive
to existing employees. Also, it takes time to develop ‘cultural awareness’, product / process / organization
knowledge and experience for new staff members.

3.2 FUNCTIONS OF HUMAN RESOURCE MANAGEMENT

Following are the various functions of Human Resource Management that are essential for the effective
functioning of the organization:

1.    Recruitment

2.    Selection

3.    Induction

4.    Performance Appraisal

5.    Training & Development

RECRUITMENT

The process of recruitment begins after manpower requirements are determined in terms of quality through job
analysis and quantity through forecasting and planning.

SELECTION

The selection is the process of ascertaining whether or not candidates possess the requisite qualifications,
training and experience required.

INDUCTION

a) Induction is the technique by which a new employee is rehabilitated into the changed
surroundings and introduced to the practices, policies and purposes of the organization.

3.3 WHAT IS “PERFORMANCE APPRAISAL”?

Performance Appraisal is defined as the process of assessing the performance and progress of an employee or a
group of employees on a given job and his / their potential for future development. It consists of all formal
procedures used in working organizations and potential of employees. According to Flippo, “Performance
Appraisal is the systematic, periodic and an important rating of an employee’s excellence in matters pertaining to
his present job and his potential for a better job.”

3. 3.1 CHARACTERISTICS

1.    Performance Appraisal is a process.

2.    It is the systematic examination of the strengths and weakness of an employee in terms of his job.

3.    It is scientific and objective study. Formal procedures are used in the study.

4.    It is an ongoing and continuous process wherein the evaluations are arranged periodically according to a
definite plan.

5.    The main purpose of Performance Appraisal is to secure information necessary for making objective
and correct decision an employee.
3.3.2 PROCESS

The process of performance appraisal:

1.    Establishing performance standards

2.    Communicating the Standards

    3.   Measuring Performance

    4.   Comparing the actual with the standards

    5.   Discussing the appraisal

    6. Taking Corrective Action

3.3.3 LIMITATIONS

1.    Errors in Rating

2.    Lack of reliability

3.    Negative approach

4.    Multiple objectives

5.  Lack of knowledge
  

3.4 METHODS OF PERFORMANCE APPRAISAL

The foregoing list of major program pitfalls represents a formidable challenge, even considering the available
battery of appraisal techniques. But attempting to avoid these pitfalls by doing away with appraisals themselves
is like trying to solve the problems of life by committing suicide. The more logical task is to identify those
appraisal practices that are (a) most likely to achieve a particular objective and (b) least vulnerable to the
obstacles already discussed.

The best-known techniques will be treated most briefly.

ESSAY APPRAISAL Before relating the specific techniques to the goals of performance appraisal stated at the outset
of the article, I shall briefly review each, taking them more or less in an order of increasing complexity.

In its simplest form, this technique asks the rater to write a paragraph or more covering an individual's strengths,
weaknesses, potential, and so on. In most selection situations, particularly those involving professional, sales, or
managerial positions, essay appraisals from former employers, teachers, or associates carry significant weight.

GRAPHIC RATING SCALE

This technique may not yield the depth of an essay appraisal, but it is more consistent and reliable. Typically, a
graphic scale assesses a person on the quality and quantity of his work (is he outstanding, above average,
average, or unsatisfactory?) and on a variety of other factors that vary with the job but usually include personal
traits like reliability and cooperation. It may also include specific performance items like oral and written
communication.

FIELD REVIEW

The field review is one of several techniques for doing this. A member of the personnel or central administrative
staff meets with small groups of raters from each supervisory unit and goes over each employee's rating with
them to (a) identify areas of inter-rater disagreement, (b) help the group arrive at a consensus, and (c) determine
that each rater conceives the standards similarly. .

FORCED-CHOICE RATING

Like the field review, this technique was developed to reduce bias and establish objective standards of
comparison between individuals, but it does not involve the intervention of a third party.

MANAGEMENT BY OBJECTIVES
To avoid, or to deal with, the feeling that they are being judged by unfairly high standards, employees in some
organizations are being asked to set - or help set - their own performance goals. Within the past five or six years,
MBO has become something of a fad and is so familiar to most managers that I will not dwell on it here.

RANKING METHODS

For comparative purposes, particularly when it is necessary to compare people who work for different
supervisors, individual statements, ratings, or appraisal forms are not particularly useful. Instead, it is necessary
to recognize that comparisons involve an overall subjective judgment to which a host of additional facts and
impressions must somehow be added. There is no single form or way to do this.

The best approach appears to be a ranking technique involving pooled judgment.

The two most effective methods are alternation ranking and paired comparison ranking.

1.    “ALTERNATION RANKING”:

Ranking of employees from best to worst on a trait or traits is another method for evaluating employees. Since it
is usually easier to distinguish between the worst and the best employees than to rank them, an alternation
ranking method is most popular. Here subordinates to be rated are listed and the names of those not well enough
to rank are crossed. Then on a form as shown below, the employee who is highest on the characteristic being
measured and the one who is the lowest are indicated. Then chose the next highest and the next lowest,
alternating between highest and lowest until all the employees to be rated have been ranked.

2.    “PAIRED-COMPARISON RANKING”:

 This technique is probably just as accurate as alternation ranking and might be more so. But with large numbers
of employees it becomes extremely time consuming and cumbersome.

Both ranking techniques, particularly when combined with multiple rankings (i.e., when two or more people are
asked to make independent rankings of the same work group and their lists are averaged), are among the best
available for generating valid order-of-merit rankings for salary administration purposes.

3. ASSESSMENT CENTERS

So far, we have been talking about assessing past performance. What about the assessment of future performance
or potential? In any placement decision and even more so in promotion decisions, some prediction of future
performance is necessary. How can this kind of prediction be made most validly and most fairly?

4. 360 DEGREE FEEDBACK

Many firms have expanded the idea of upward feedback into what the call 360-degree feedback. The feedback is
generally used for training and development, rather than for pay increases.
Most 360 Degree Feedback system contains several common features. Appropriate parties – peers, supervisors,
subordinates and customers, for instance – complete survey, questionnaires on an individual. 360 degree
feedback is also known as the multi-rater feedback, whereby ratings are not given just by the next manager up in
the organizational hierarchy, but also by peers and subordinates. Appropriates customer ratings are also
included, along with the element of self appraisal. Once gathered in, the assessment from the various quarters are
compared with one another and the results communicated to the manager concerned.

Another technique that is useful for coaching purposes is, of course, MBO. Like the critical incident method, it
focuses on actual behavior and actual results, which can be discussed objectively and constructively, with little
or no need for a supervisor to "play God."

3.5 ADVANTAGES

Instead of assuming traits, the MBO method concentrates on actual outcomes. If the employee meets or exceeds
the set objectives, then he or she has demonstrated an acceptable level of job performance. Employees are
judged according to real outcomes, and not on their potential for success, or on someone's subjective opinion of
their abilities.

The guiding principle of the MBO approach is that direct results can be observed easily. The MBO method
recognizes the fact that it is difficult to neatly dissect all the complex and varied elements that go to make up
employee performance.

MBO advocates claim that the performance of employees cannot be broken up into so many constituent parts,
but to put all the parts together and the performance may be directly observed and measured.

3.6 DISADVANTAGES

This approach can lead to unrealistic expectations about what can and cannot be reasonably accomplished.
Supervisors and subordinates must have very good "reality checking" skills to use MBO appraisal methods.
They will need these skills during the initial stage of objective setting, and for the purposes of self-auditing and
self-monitoring.

Variable objectives may cause employee confusion. It is also possible that fluid objectives may be distorted to
disguise or justify failures in performance.
3.7 BENEFITS OF PERFORMANCE APPRAISALS

 Measures an employee’s performance.

 Helps in clarifying, defining, redefining priorities and objectives.
 Motivates the employee through achievement and feedback.
 Facilitates assessment and agreement of training needs.
 Helps in identification of personal strengths and weaknesses.
 Plays an important role in Personal career and succession planning.
 Clarifies team roles and facilitates team building.
 Plays major role in organizational training needs assessment and analysis.
 Improves understanding and relationship between the employee and the reporting manager and also helps
in resolving confusions and misunderstandings.
 Plays an important tool for communicating the organization’s philosophies, values, aims, strategies,
priorities, etc among its employees.
 Helps in counseling and feedback.

3.8 RATING ERRORS IN PERFORMANCE APPRAISALS

Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as 'rating errors'.
These errors can seriously affect assessment results. Some of the most common rating errors are: -

LENIENCY OR SEVERITY: - Leniency or severity on the part of the rater makes the assessment subjective.
Subjective assessment defeats the very purpose of performance appraisal. Ratings are lenient for the following
reasons:

a)    The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will reflect
poorly on his or her own worthiness.

b)    He/She may feel that a derogatory rating will be revealed to the rate to detriment the relations
between the rater and the ratee.

c)     He/She may rate leniently in order to win promotions for the subordinates and therefore,
indirectly increase his/her hold over him.

CENTRAL TENDENCY: - This occurs when employees are incorrectly rated near the average or middle of the
scale. The attitude of the rater is to play safe. This safe playing attitude stems from certain doubts and anxieties,
which the raters have been assessing the rates.

HALO ERROR: - A halo error takes place when one aspect of an individual's performance influences the
evaluation of the entire performance of the individual. The halo error occurs when an employee who works late
constantly might be rated high on productivity and quality of output as well ax on motivation. Similarly, an
attractive or popular personality might be given a high overall rating. Rating employees separately on each of the
performance measures and encouraging raters to guard against the halo effect are the two ways to reduce the
halo effect.

RATER EFFECT: -This includes favoritism, stereotyping, and hostility. Extensively high or low score are given
only to certain individuals or groups based on the rater's attitude towards them and not on actual outcomes or
behaviors; sex, age, race and friendship biases are examples of this type of error.

PRIMACY AND REGENCY EFFECTS: - The rater's rating is heavily influenced either by behavior exhibited by
the ratee during his early stage of the review period (primacy) or by the outcomes, or behavior exhibited by the
ratee near the end of the review period (regency). For example, if a salesperson captures an important
contract/sale just before the completion of the appraisal, the timing of the incident may inflate his or her
standing, even though the overall performance of the sales person may not have been encouraging. One way of
guarding against such an error is to ask the rater to consider the composite performance of the rate and not to be
influenced by one incident or an achievement.

PERFORMANCE DIMENSION ORDER: - Two or more dimensions on a performance instrument follow each
other and both describe or rotate to a similar quality. The rater rates the first dimensions accurately and then rates
the second dimension to the first because of the proximity. If the dimensions had been arranged in a significantly
different order, the ratings might have been different.

SPILLOVER EFFECT: - This refers lo allowing past performance appraisal rating lo unjustifiably influence
current ratings. Past ratings, good or bad, result in similar rating for current period although the demonstrated
behavior docs not deserve the rating, good or bad.

 
3.9 ROLES IN THE PERFORMANCE APPRAISAL PROCESS 

A)  REPORTING MANAGER

Ø      Provide feedback to the reviewer / HOD on the employees’ behavioral traits indicated in the
PMS Policy Manual

Ø      Ensures that employee is aware of the normalization / performance appraisal process

Ø      Address employee concerns / queries on performance rating, in consultation with the

reviewer

B)  REVIEWER (REPORTING MANAGER’S REPORTING MANAGER)

Ø      Discuss with the reporting managers on the behavioral traits of all the employees for whom
he / she is the reviewer

Ø      Where required, independently assess employees for the said behavioral traits; such
assessments might require collecting data directly from other relevant employees

C)     HOD (IN SOME CASES, A REVIEWER MAY NOT BE A HOD)

Ø      Presents the proposed Performance Rating for every employee of his / her function to the
Normalization committee.

Ø      HOD also plays the role of a normalization committee member

Ø      Owns the performance rating of every employee in the department

D)  HR HEAD

Ø      Secretary to the normalization committee

Ø      Assists HOD’s / Reporting Managers in communicating the performance rating of all the
employees

E)  NORMALIZATION COMMITTEE

Ø      Decides on the final bell curve for each function in the respective Business Unit / Circle

Ø      Reviews the performance ratings proposed by the HOD’s, specifically on the upward /
downward shift in ratings, to ensure an unbiased relative ranking of employees on overall
performance, and thus finalize the performance rating of each employee
 

3.10 KEY CONCEPTS IN PMS

In order to understand the Performance Management System at BHARTI, some concepts need to be explained

which play a very important role in using the PMS successfully. They are:

Ø      KRA’S (KEY RESULT AREAS): The performance of an employee is largely dependent on the KRA
score achieved by the employee during that particular year. Thus, it is necessary to answer a few basic
questions i.e.

o       What are the guidelines for setting the KRA’s for an employee?

o       How does an employee write down his KRA’s for a particular financial year?

o       KRA’s: The Four Perspectives.

o       How is the KRA score calculated for an employee on the basis of the targets sets and targets
achieved? 

Ø      BEHAVIORAL TRAITS: Some of the qualitative aspects of an employees’ performance combined with

the general behavioral traits displayed by the employee during a year constitutes his behavior traits. An
employee is assigned the rating on the basis of the intensity of the behavior displayed by him. They play
a very important role in the deciding the final performance rating for an employee as is even capable of
shifting the rating one level upwards/downwards.

Ø      BHARTI 2010 LEADERSHIP COMPETENCY FRAMEWORK : This competency framework is a

simple and structured way to describe the elements of behaviors required to perform a role effectively.
This framework also tries to assess the performance of an employee objectively.

Ø      THE PERFORMANCE RATING PROCESS: The rating process tries to explain the four different types
of rating that an employee can achieve i.e. EC, SC, C and PC. It also explains the criteria, which is
considered for awarding any of these ratings to the employee.

Ø      PROMOTION AND RATING DISRTRIBUTION GUIDELINES: The promotion and normal

distribution guidelines provide the framework within which the performance appraisal process has to
work. It is very important that the HR department pays due attention to these guidelines while preparing
the bell curves for various functions and the consolidated bell curve for all the functions. These
guidelines also help in deciding upon the promotion cases in a year.

 
 CHAPTER-IV
DATA ANALYSIS AND INTERPRETATION
 140
TABLE 120
4.1 100
80
60 1) IS
40
20
SR. NO RATING SCALE NO.OF IN %
0
Strongly Agree Neutral RESPONDENT
Strongly Agree Disagree
Disagree
1 Strongly Agree 4 8
Series 1 Series 3
2 Neutral 7 14

3 Strongly Disagree 0 0

4 Agree 39 78

5 Disagree 0 0

Total 50 100

PERFORMANCE APPRAISAL HELPS IN THE ASSESSMENT OF INDIVIDUAL POTENTIAL.

GRAPH NO-1
120

100
ANALYSIS-
80

60 From the above table-4.1 it is found

40 that, 78% of respondents have
20 agreed about the assessment of
0 individual potential and 4% of them
Strongly Agree Neutral Strongly Disagree Agree Disagree
have strongly agreed of above
statement and 14% of employee are
in neutral stage and where none of
them have disagreed for above statement.so majority of respondent i.e 78% of the respondents have agreed about the
assessment of individual potential.

INTERPRETATION-
From the above analysis we can interpret that, some of the employees were in neutral position,

Because the organization was not in a full fledge way.

SR. NO RATING SCALE NO.OF RESPONDENT IN %

1. Strongly Agree 2 4
TABLE 4.2
2. Neutral 12 24
3. Strongly Disagree 2 4
2) 4. Agree 30 60
5. Disagree 4 8
TOTAL 50 100

PERFORMANCE APPRAISAL SYSTEM FOLLOWED IN THE ORGANIZATION IS RATIONAL AND FAIR.

GRAPH NO-2
ANALYSIS:

From the above table-4.3 it can be known that, 60% of respondents have agreed that the performance appraisal system
followed in the organization is rational and fair. and 24% of respondents are in neutral stage and 4% strongly agree for
above statement and where as 8%of the respondents disagree for above statement, none of them are in a stage of strongly
disagree opinion.

INTERPRETATION:

The above analysis shows that, some of employees were in neutral position .because the organization doesn’t following the
company’s policies fairly.

TABLE NO-4.3

3) THE JOB EXPECTATIONS ARE INFORMED AND THE SUPERIORS SET THE TASKS.

SR. RATING SCALE NO.OF RESPONDENT IN %

NO
1. Strongly Agree 3 6
2. Neutral 15 30
3. Strongly Disagree 0 0
4. Agree 29 58
5. Disagree 3 6
Total 50 100
GRAPH NO-3

100
90
80
70
60
50
40
30
20
10
0
Strongly Agree Neutral Strongly Agree Disagree
Disagree

ANALYSIS:

From the above table-4.3 it can be known that, 58% of respondents have agreed that the job expectations are
informed and the superiors set tasks. And 30% of respondents are in neutral stage and 6% strongly agree for above
statement and where as 6%of the respondents disagree for above statement, none of them are in a stage of strongly
disagree opinion.

INTERPRETATION:

The above analysis shows that, some of employees were in neutral position .Because the job expectations were not
informed, and the tasks were not assigned by superiors properly.

TABLE NO-4.4
4) PERFORMANCE APPRAISAL FOLLOWED IN THE ORGANIZATION HELPS TO ASSESS THE
TRAINING AND DEVELOPMENT NEEDS OF EMPLOYEE.

SR RATING SCALE NO.OF IN %

. RESPONDENT
NO
1. Strongly Agree 7 14
2. Neutral 10 20
3. Strongly Disagree 0 0
4. Agree 30 60
5. Disagree 3 6
Total 50 100
 120

100

80

60

40

20

0
Strongly Agree Neutral Strongly Agree Disagree
Disagree

GRAPH NO-

ANALYSIS:

From the above table-4.3 it can be known that, 60% of respondents have agreed that. performance appraisal
followed in the organization helps to the training and development needs of employee.
and 20% of respondents are in neutral stage and 14% strongly agree for above statement and where as 6%of the
respondents disagree for above statement, none of them are in a stage of strongly disagree opinion.

INTERPRETATION:

The above analysis shows that, majority of employees openine that a good performance appraisal system in the
organization, helps to train and develop an in all aspect, some of employees were in neutral position .Because the
job expectations were not informed, and the tasks were not assigned by superiors properly.

TABLE NO-5

5) PERFORMANCE APPRAISAL IN THE ORGANIZATION HELPS TO RECOGNIZE THE

COMPETENCE AND POTENTIAL OF AN INDIVIDUAL.
 120
SR RATING SCALE NO.OF IN
100 . RESPONDENT %
80 NO
1. Strongly Agree 7 14
60 2. Neutral 10 20
40 3. Strongly Disagree 0 0
4. Agree 30 60
20
5. Disagree 3 6
0 Total 50 100
Strongly Agree Neutral Strongly Disagree Agree Disagree

GRAPH NO-5

ANALYSIS:

From the above table-4.5 it is found that, 60% of respondents have agreed for the performance appraisal in the organization
helps to recognize the competence and potential of individual and 14% of the respondents have strongly agreed, and 20%
of the respondents are in neutral stage and 6% are in disagreed opinion none of the respondents strongly disagree for the
above statement.

INTERPRETATION:

The above analysis elicits that, some of the employees were in neutral and disagree position. Because the appraisal
process in the organization is not that much effective

TABLE NO-4.6
6) EMPLOYEES ARE HAPPY WITH THE ASSESSMENT OF PERFORMANCE FOLLOWED IN THE
ORGANIZATION.
 100
Sr. In
90 Rating Scale No Of Respondent
80 No %
70 1. Strongly Agree 3 6
60 2. Neutral 14 28
50 3. Strongly Disagree 0 0
40 4. Agree 28 56
30 5. Disagree 5 10
20 Total 50 100
10
0
Strongly Agree Neutral Strongly Disagree Agree Disagree

GRAPH NO-4.6

ANALYSIS:

From the above table-4.6 it is found that, 56% of respondents have agreed that
they are happy with the assessment of performance appraisal followed in the organization. And 28% of the
respondents are in neutral stage and 10% of the respondents are in a disagreed stage where 6% have strongly
agreed for the above statement but none of them have strongly disagreed for this statement.

INTERPRETATION:

We can interpret that, most of the employees were in disagree and neutral position. Because the assessment system
in the organization was not up to the mark.

TABLE NO-4.7
7) EMPLOYEES HAVE BEEN APPRAISED FAIRLY ACCORDING TO THE COMPANY'S
POLICIES.

SR
NO.OF IN
. RATING SCALE
RESPONDENT %
NO
1. Strongly Agree 2 4
2. Neutral 13 26
3. Strongly Disagree 0 0
4. Agree 33 66
5. Disagree 2 4
Total 50 100

GRAPH NO -7

120
100
80
60
40
20
0
Strongly Agree Neutral Strongly Disagree Agree Disagree

ANALYSIS:
From the above table-4.7 it is found that, 66% of respondents have agreed that the employees have been appraised
fairly according to the company policies and 26% of the respondents are neutral stage and 4% of them are strongly
agree and where as 4% of the respondents disagree for the above opinions and none of them have disagree for the
above opinion.

INTERPRETATION:
Here we can state that, most of the employees were in disagree and neutral position. Because performance
appraisal was not done fairly according to the companies policies.

TABLE NO-4.8
 8) ADVISES
70 AND
60
50
40 SR RATING SCALE NO.OF IN
30
. RESPONDENT %
NO
20
1.
Strongly Agree 3 6
10
2. Neutral 20 40
0
3. Agree
Strongly
Neutral Disagree
Strongly Strongly Disagree 0
Agree Disagree 0
4. Agree 10 20
5. Disagree 17 34
Total 50 100
SUGGESTIONS ARE GIVEN TO THE EMPLOYEES DURING THE APPRAISAL PROCESS.

GRAPH NO- 4.8

ANALYSIS:

From the above table4.8 it is found that, 34% of respondents have disagreed that advises and suggestions are given
to the employees during the appraisal process and 20% of them have agreed and 6% of the respondents strongly
agree and majority of the respondents i.e.40% are in a neutral stage and 34%of them have disagreed for the above
statement.
 90
80
70
60
50
40
30
20
10
0
Positive Way Uninteresting Negative Way Neutral

SR RATING SCALE NO.OF IN %

. RESPONDENT
NO
1. Positive Way 7 14
2. Uninteresting 25 50
3. Negative Way 0 0
4. Neutral 18 36
Total 50 100
INTERPRETATION:
The above analysis exhibits that, employees are expecting many moresuggestions and advises, during the appraisal
process that would be helpful for their career.

TABLE NO-4.9
9) THE EMPLOYEES ACCEPT THE APPRAISAL FEED BACK AS.

GRAPH NO-9
 ANALYSIS:
From the above table-4.9 it is found that, 14% of respondents have a positive way regarding acceptance of the
appraisal feed back. And 36% of them are in neutral opinion and 50% of the respondents feel it uninteresting on
the above statement .And none of them have a negative acceptance of this statement.

INTERPRETATION:
This analysis shows that, employees are not much interested in taking the appraisal feedback.

TABLE NO-4.10
10) THE APPRAISER OF THE COMPANY SHOULD BE.

SR RATING SCALE NO.OF IN %

. RESPONDENT
NO
1. Superior 11 22
2. HOD 35 70
3. Subordinate 2 4
4. Peer groups 2 4
Total 50 100

GRAPH NO-10
 120

100

80

60

40

20

0
Superior HOD Subordinate Peer groups

ANALYSIS:
From the above table-4.10 it is found mat, 70% of respondents feel that their HOD should be their appraiser and
22% of them feel that their superior should be the appraisal and 4% of the respondents feel that their subordinates
and 4% peer groups should be the appraiser.

INTERPRETATION:
This states that, the appraiser should be the head of the department, the employee feel that he is the right person to
evaluate their performance.

TABLE NO-4.11
11) EMPLOYEE NEED TO BE ASSESSED AS.

SR RATING SCALE NO.OF IN %

. RESPONDENT
NO
1. Once in 3 months 8 16
2. Once in 6 months 11 22
3. Once in a year 31 62
Total 50 100

GRAPH NO-11
 120
100
80
60
40
20
0
Once in 3 months Once in 6 months Once in a year

ANALYSIS:

From the above table-4.11 it is found that, 62% of respondents feel that their appraisal system should be once in a year and
22% of the respondents feel that it should be twice in a year (6 months) and where as 16% of the respondents feel that it
should be for every 3months.

INTERPRETATION:

Here, the employees felt that, they need to be assessed once in a year, as they felt it is a right period of time to assess the
performance.

TABLE NO-4.12

12) THE PERFORMANCE APPRAISAL FOLLOWED IN THE ORGANIZATION MAKES THE

EMPLOYEES.

SR RATING NO.OF IN
. SCALE RESPONDENT %
NO
1. Motivating 38 76
2. Demotivatin 12 24
g
Total 50 100
 GRAPH NO-12

120
100
80
60
40
20
0
Motivating De motivating

Series 1 Series 3

ANALYSIS:
From the above table-4.12 it is found that, 76% of respondents are motivated
towards performance appraisal followed in the organization and 24% of the respondents demotivates for the
above statement. So majority of the respondents i.e.. 76 % of the respondents have motivated towards the appraisal
system followed in the organization.

INTERPRETATION:
From the above study, employees felt performance appraisal system as motivating factor.

TABLE NO-4.13
13) TYPES OF ERRORS / PROBLEMS HAVE IMPACT ON PERFORMANCE RATING IN THE
ORGANIZATION.

SR RATING SCALE NO.OF IN %

. RESPONDENT
NO
1. Influence 9 18
2. Attitude 24 50
3. Biased 8 16
4. Personal grudge 1 2
5. subjectivity 7 14
6. Status effect 1 2
Total 50 100
 GRAPH NO-4.13
90
80
70
60
50
40
30
20
10
0
Influence Attitude Biased Personal subjectivity Status effect
grudge

ANALYSIS:

From the above table-4.13 it is observed that, appraisal system is rated by attitude that is 50% and 18% of the
respondents by influence and 16% by biased, 14% by subjectivity and 2% by personal grudge and remaining 2.%
by status effect.

INTERPRETATION:
The employees opined that, attitude factor have a greater impact on the performance appraisal system.

TABLE NO-4.14
14) FEEDBACK ON PERFORMANCE IS COMMUNICATED AFTER ASSESSMENT OF THE
PERFORMANCE.

SR. NO RATING SCALE NO.OF RESPONDENT IN %

1. YES 19 38
2. NO 31 62
TOTAL 50 100
 100
90
80
70
60
50
GRAPH 40
30
NO-14 20
10
0
Yes No

ANALYSIS:

From the above table-4.14 it is found that, 62% of respondents disagree that feedback on performance is
communicated after assessment of the performance appraisal. And 38%of the respondents agree for the above statement So
majority of the respondents i.e. 62% of the respondents have disagreed that the feedback on performance is communicated
after assessment of the performance appraisals.

INTERPRETATION:

Here, the some of the employees express their view that, the performance feedback need not be communicated after the

assessment, while some of them felt that it is essential.

TABLE NO-4.15

15) EMPLOYEES ARE AWARE OF 360-DEGREE APPRAISAL.

SR. NO RATING SCALE NO.OF RESPONDENT IN %

1. Yes 39 78
2. No 11 22
Total 50 100
 140
120
100
80
60
40
GRAPH NO-15
20
0
Yes No

ANALYSIS:

From the above table-4.15 it is found that, 78% of respondents are aware of 360-degree appraisal and 22% of respondents
are not known of 360-degree appraisal. So majority of the respondents i.e.. 78 % of the respondents have agreed that they
were aware of 360 degree appraisal

INTERPRETATION:

Here from the above study it is known that, the employees are not completely aware of 360-degrees appraisal system
 CHAPTER-V
OBSERVATIONS AND FINDINGS

OBSERVATION & FINDINGS-

1) More than half of the employees (78%) agree that Performance Appraisal is the assessment of individual potential.

2) Some of the employees (24%) neutral that Performance Appraisal system followed inthe organization is rational

and fair.
 3) Some of the employees (30%) neutral that Job expectations are informed and the superiors set the tasks.

4) Most of the employees (60%) agree that Performance Appraisal followed in theOrganization helps to the Training

and development needs of employee.

5) Some of the employees (6%) disagrees that The Performance appraisal in theorganization helps to recognize the

competence and potential of an individual

6) Most of the employees (56%) agrees that they are happy with the assessment of performance followed in the

organization.

7) Most of the employees (26%) neutral that they have been appraised fairly according to the company's policies.

8) Most of the employees (24%) disagrees that Advises and suggestions are given to the employees during the

appraisal process.

9) Most of the employees (50%) uninterestingly accept the appraisal feedback.

10) Most of the employees (70%) feel that appraisal should be given by HOD.

11) Most of the employees (62%) that they need to be assessed as once in a year.

12) Most of the employees (76%) feels that the performance appraisal followed in the organization makes the

employees Motivated.

13) Most of the employees (50%) think that attitude have impact on performance rating in the Organization.

14) Most of the employees (62%) do not agree that Performance is communicated after assessment of the

Performance.

SUGGESTIONS

As per the study the following are the suggestions:

 The Performance Appraisal in the organization should be in a full fledge way so that the others will be accepting
this.
 As the Performance Appraisal is helpful to the employees by the assignment of superiors task by training &
development which should be more effective so that the other employees will also be attracted.
 The Performance Appraisal should be assist effectively to the employees as it recognizes the competence and
potential of an individual.
 Employee’s appraisal should be fairly done according to the companies policies so that it will assist the
performance of the employees.
 The company should give some advises and suggestions to the employees during the process and should get there
feedbacks about the process.
 The employees should assess and appraised by their HOD once in a year.
 The employees should be aware of 360 degrees appraisal and the organization should follow this to motivate
the employee
 CHAPTER-VI
CONCLUSIONS

CONCLUSION

 The options required strong motivation to face the challenges.

  Proper training and satisfaction at all levels will be the strongest foundation to launch an assault on the challenges
and convert the challenges to opportunities through effective performance appraisal measures in the organization.
Industry most response like wise
 In future performance appraisal measures will have to be planned in relation to the changes taking place.
 The performance measures leads exist both at fresh entry level as well as to continuing education level for working
personnel.
 An effective safety measures based on emerging trends suggests model for achieving the targets which will make
engineering industry in India.

BIBLIOGRAPHY

Books:
•Donald L. Kirkpatrick, 2006, Improving Employee Performance through Appraisaland Coaching.

•Richard Rudman, 2003, Performance Planning and Review.

•Roger E. Herman, 1997, The Process of excelling, oak Hill press.

•P. Subba Rao, 2006, Essentials of Human Resource Management and Industrial Relations, Himalaya Publishing House.

WEBSITES-

www.google.com

www.scibd.com

www.performance - appraisal.com

https://www.businesstopia.net/human-resource/performance-appraisal-methods

www.top gear.com

QUESTIONNAIRE

STUDY OF PERFORMANCE APPRAISAL REPORT.

 PERSONAL INFORMATION-

Name of employee-

Department-

Age-

Date-

Mobile no-

1. Is Performance Appraisal helps in the assessment of individual potential?

Strongly Agree Agree Neutral

Disagree Strongly Disagree

2. Does the Performance Appraisal system followed in the organization is rational and fair?

Strongly Agree Agree

Neutral Disagree Strongly Disagree

3. Whether the Job expectations are informed and the superiors set the tasks?

Strongly Agree Agree

Neutral Disagree Strongly Disagree

4. Does the performance Appraisal followed in the organization helps to assess the training and development needs of
employee?

Strongly Agree Agree

Neutral Disagree Strongly Disagree

5. Does the Performance appraisal in the organization helps to recognize the competence and potential of an individual?

Strongly Agree Agree

Neutral Disagree Strongly Disagree

6. Whether the employees happy with the assessment of Performance followed in the organization?

Strongly Agree Agree

Neutral Disagree Strongly Disagree

7.Does the Employees appraised fairly according to the company’s policies?

Strongly Agree Agree

Neutral Disagree Strongly Disagree

8. Does the Advises and suggestions are given to the employees during the appraisal process?

Strongly Agree Agree

Neutral Disagree Strongly Disagree

9. How do the employees accept the appraisal feedback?

Positive way Negative way

Uninteresting Neutral

10.Who should be the appraiser?

Superior Subordinate

HOD Peer group

11.How often should an employee be assessed?

Once in 3 months Once in 6 months

Once in a year

12. How the performance appraisal followed in the organization?

Motivate Denominative

13.What types of errors / problems have impact on performance rating in the organization?

Influence Biased Subjectivity Status

Effect Attitude Personal Grudge

14. Whether the Feedback on performance communicated after assessment of the Performance?

Yes No

15. Are you aware of 360-degree appraisal?

Yes No