Covering Letter

“PERFORMANCE APPRAISAL SYSTEM AND ITS EFFECTIVENESS IN AN ORGANISATION”

TRAINING REPORT
OF

SUMMER TRAINING, UNDERTAKEN AT

“FEDERAL MOGUL GOETZE INDIA LTD., BAHADURGARH, PATIALA”
SUBMITTED IN PARTIAL FULFILLMENT OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION

COMPANY CERTIFICATE

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CERTIFICATE BY PROJECT GUIDE
This is to certify that the project entitled”PERFORMANCE APPRAISAL SYSTEM AND ITS EFFECTIVENESS IN AN OGANISATION” submitted in the partial fulfillment of the requirement for the degree of MBA of Punjab Technical University, Jalandhar is bonafied research work carried out by ………………… under my supervision and no part of this research report has been submitted by any other degree. This assistance and help received during the course of this research has been fully acknowledged.

Dated:

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DECLARATION
I,……….. hereby declare that the project ITS entitled “PERFORMANCE IN AN

APPRAISAL

SYSTEM

AND

EFFECTIVENESS

ORGANISATION” assigned to me by FEDERAL MOGUL GOETZE (INDIA) LTD, during my six weeks training for the partial fulfillment of M.B.A, Degree from GYAN JYOTI INSTITUTE OF MANAGEMENT AND TECHNOLOGY, MOHALI is the Original work done by me and the information provided in the study is authentic to the best of my knowledge. This study has not been submitted to any other institution or university for the award of any other degree.

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ACKNOWLEDGEMENT
“Thanking may just be a formality, but if done inwardly, it surely reflects your noblest thoughts within”. -Louis Philippe II.

This research project is an important part of my long journey in obtaining my degree in MBA. I have not traveled in a vacuum in this journey. There are some people who made this journey easier with words of encouragement and more intellectually satisfying by offering different places to look to expand my theories and ideas. A journey is easier when you travel together. Interdependence is certainly more valuable than independence. It is a pleasant aspect that I have now the opportunity to express my gratitude for all of them. The first person I would like to thank is Mr. V.K.Malhotra, Chief Welfare Officer, Federal Mogul Goetz (India) limited, Patiala. I have known Mr. V.K.Malhotra as a sympathetic and principle-centered person. His overly enthusiasm and integral view on research and his mission for providing 'only high-quality work and not less', has made a deep impression on me. I owe him lots of gratitude for having me shown this way of research. He could not even realize how much I have learned from him. I am really glad that he had accepted to be my guide for this project. He took me on the process of learning and made himself available even through his very heavy work,

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teaching schedule. Thank you doesn’t seem sufficient but it is said with appreciation and respect. I would like to thank my parents, who gave me the confidence and support to begin my Master’s program in Business Administration. They challenged me to set my benchmark even higher and to look for solutions to problems rather than focus on the problem. I learned to believe in my future my work and myself. Thank you so much. I have to put a special note of thanks to Ms.Paramjeet Sujlana, Project Guide, GJIMT, Mohali, for her valuable suggestions and co-operation during the proceedings of the project .I also have to thank Mr.G.S.Bedi, Chairman, GJIMT, Mohali, for him being the director of the whole process. Last but not the least, I am thankful to all the faculty members of FMGI, for providing me with enough knowledge in the duration of my course, and all those people who have been directly or indirectly been instrumental in the completion of the project. My deepest and sincere gratitude to all those who were directly or indirectly responsible for inspiring and guiding this humble being.

THANK YOU ONE AND ALL.



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.………………...40 Gian Jyoti Institute of Management & Technology Page92 OBJECTIVES OF THE STUDY…………………………………………………………………..19 7) FEDERAL MOGUL GOETZE (INDIA) LIMITED.23 (II) COLLABORATIONS……………………………………………………………………….23 13) SWOT ANALYSIS………….……….…………..…………..23 (I) EXPORT DESTINATIONS………………………………………………………………..22 12) GLOBAL MARKET…………………………………………………………………………………….BEGINNING OF THE INDUSTRY……………………………………14 2) FEDERAL MOGUL GOETZE (INDIA) LIMITED…………………………………………….…32 ORGANISATIONAL SET UP……………………………………………………………33 INTRODUCTION TO THE PROJECT…………………………………………..….……………18 6) MANAGEMENT………………………………………………………………………………………….………………….30 17) MARKET SHARE OF PISTON MANUFACTURERS IN INDIA………………………….…36 RATIONALE OF THE STUDY……………………………………………………..38 THEORATICAL FRAMEWORK….22 11) VISION OF THE COMPANY………………………………………………………………………..……….37 .…24 14) PRODUCT PROFILE OF COMPANY……………………………………………………………..35 1) 2) 3) 4) 5) INTRODUCTION…………………………………………………………………………..…………… 13 1) FEDERAL MOGUL. PATIALA…………………………….29 16) LOCATION OF DEPOTS……………………………………………………………………………..32 (I) (II) CHAPTER-2 ORGANISATIONAL GOALS…………………………………………………………..31 18) ORGANISATION OF FEDERAL MOGUL GOETZE (INDIA) LTD. PATIALA PLANT………………………………………………………………………………………....………………………………………………………………....…..……………………………………………………………………….CONTENTS CHAPTER-1 INTRODUCTION TO THE COMPANY…………………………………………….25 15) MAJOR CUSTOMERS OF THE COMPANY………………………………....…37 LITERATURE REVIEW………………………………………………………………….15 3) COMPANYPROFILE……………………………………………………………………….20 8) QUALITY POLICY………………………………………………………………………………………22 9) POLICY………………………………………………………………………………………….16 4) ORGANISATIONAL CHART…………………………………………………………………………17 5) PRODUCTION FACILITIES…………………………………………………………….22 10) MISION OF THE COMPANY………………………………………………………………...…………….........

..…….50 CHAPTER-4 PERFORMANCE APPRAISAL AS MOTIVATION…………………………….54 2) PURPOSE OF PERFORMANCE APPRAISAL ACCORDING TO SURVEY AT FMGI…………………………………………………………………………………………..56 6) PROBLEMS ENCOUNTERED DURING PERFORMANCE APPRAISAL………………………………………………………………………………………………57 7) WORKING HOURS AT FEDERAL MOGUL…………………………………………………....43 IN PERFORMANCE (VI) MEASURING EMPLOYEE PERFORMANCE………………………………………43 (VII) METHODS AND TECHNIQUES OF PERFORMANCE APPRAISAL……………………………………………………………………………………44 (VIII) BENEFITS OF SYSTEM…………………………………………………47 APPRAISAL CHAPTER-3 CURRENT GLOBAL TRENDS IN PERFORMANCE APPRAISAL PROGRAM………………………………………………………………………………....51 CHAPTER-5 PERFORMANCE APPRAISAL SYSTEM AT FEDERAL MOGUL…………….40 APPRAISAL AND HISTORY……………………….………. (II) DEFINITION ………….…………………………………….…....58 CHAPTER-6 MEASURING EFFECTIVENESS OF APPRAISAL AT FEDERAL MOGUL…………………………………………………………………………………………………....……………48 1) 360 DEGREE APPRAISALS…………………………………….…....42 (IV) PRE.(I) PERFORMANCE …………………..55 5) APPRAISAL FOR EMPLOYEES AT DIFFERENT LEVEL……………….……………………………………………...…41 CONCEPT…………………………………………….55 4) PROCEDURE……………………………….53 1) POLICY…………………………………………….....….59 Gian Jyoti Institute of Management & Technology Page92 .54 3) AIMS OF APPRAISAL AT FMGI…………………………………………………………..……...………………...42 (V) CHALLENGES APPRAISAL………………………………..……..50 3) RANK AND YANK STRATEGY………………………………………………………………..49 2) TEAM PERFORMANCE APPRAISAL…………………………………………………….REQUISITES FOR SUCCESSFUL PERFORMANCE APPRAISAL……………………………………………………………………………...…...……..……………………. (III) PROCESS OF PERFORMANCE APPRAISAL………………………………….…………………………..

.65 8) SAMPLING DESIGN…………………………………………………………….…67 CHAPTER-8 PROFILE OF THE WORKMEN………………………………………………………………..……….62 CHAPTER-7 RESEARCH METHODOLOGY………………………………………………………………….96 CHAPTER-12 Gian Jyoti Institute of Management & Technology Page92 .…….………………………..…65 10) RESPONDENTS……………………………………………………………………..66 14) SURVEY……………………………………………………………………………………...……………….66 11) TOOLS FOR DATA COLLECTION AND ANALYSIS………………………………………66 12) PRE..……………………64 3) CONCEPTUAL DEFINITION…………………………………………………………………….66 13) PILOT STUDY……………………………………………………………..……………………………………………………69 MARITAL STATUS………………………………..…66 15) LIMITATIONS OF THE STUDY……………………………………………….1) PERFORMANCE APPRAISAL FEEDBACK SYSTEM AT FEDRAL MOGUL……………………………………………………………………………………………..73 CHAPTER-10 RESEARCH FINDINGS……………………………………………………………………….……………….65 9) SAMPLE SIZE……………………………………………………………………………………….………….….TESTING………………………………………………………..…72 CHAPTER-9 DATA ANALYSIS AND INTERPRETATION……………………………………………….……………………………………..63 1) INTRODUCTION………………………………………………………………………………….64 5) TYPE OF STUDY………………………………………………………………………………………64 6) METHODOLOGY………………………………………………………………………………….….93 CHAPTER-11 SUGGESTIONS AND RECOMMENDATIONS……….….…64 2) STATEMENT OF THE PROBLEM………………………………………….64 7) SOURCE OF INFORMATION……………………………………………………………....71 EDUCATIONAL QUALIFICATION…………………………………………………….....…………………………………………….…….…..……….70 LOCATION………………………………………………….………………………………….68 DISTRIBUTION OF RESPONDENTS BY (I) (II) (III) (IV) AGE……………………………………………...….…………………………….61 3) LINKING PERFORMANCE APPRAISAL TO T&D………………………………….....64 4) OPERATIONAL DEFINITION………………………………………………………………….60 2) PERFORMANCE REWARD SYSTEM………………………………………………..……..66 16) STUDY DESIGN…………………………………………………………………………….....….………….

CONCLUSION………………………………………………………….…………………………….98 CHAPTER-13 BIBLIOGRAPHY……………………………………………………………………………………100 CHAPTER-14 QUESTIONAIRE……………………………………………………………………………………102 LIST OF TABLES AND ANNEXURES CONTENT OF TABLE DISTRIBUTION OF RESPONDENTS BY AGE PAGE 68 DISTRIBUTION OF RESPONDENTS BY MARITAL STATUS 69 DISTRIBUTION OF RESPONDENTS BY LOCATION 70 DISTRIBUTION OF RESPONDENTS BY EDUCATIONAL QUALIFICATION SERVICE TENURE OF EMPLOYEES SATISFACTION WITH THE PRESENT JOB 71 73 74 Gian Jyoti Institute of Management & Technology Page92 .

KNOWLEDGE AND ABILITIES OF THE EMPLOYEES ESSENTIAL FOR PERFORMANCE APPRAISAL OF AN INDIVIDUAL OPPORTUNITY GIVEN TO EMPLOYEES TO MAKE AN INPUT TO THEIR OWN PERFORMANCE APPRAISAL ARE THE PERFORMANCE APPRAISAL REPORTS FREELY ACCESSIBLE AND COMMUNICATED TO YOUR EMPLOYEES 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 Gian Jyoti Institute of Management & Technology Page92 .AWARENESS OF TECHNIQUE OF PERFORMANCE APPRAISAL EMPLOYEES’ OPINION AS TO THE PRESENT APPRAISAL SYSTEM EMPLOYEE PERCEPTION AS TO THE FREQUENCY OF APPRAISAL APPRAISAL EFFECTING PRODUCTIVITY OF EMPLOYEES WHO SHOULD DO THE APPRAISAL DOES APPRAISAL HELP IN POLISHING SKILLS AND PERFORMANCE AREA DOES PERSONAL BIAS CREEPS-IN WHILE APPRAISING AN EMPLOYEE REVIEW OF THE CURRENT APPRAISAL TECHNIQUE APPROPRIATE METHOD OF CONDUCTING THE PERFORMANCE APPRAISAL PERFORMANCE APPRAISAL LEADS TO IDENTIFICATION OF HIDDEN POTENTIAL SELF-APPRAISAL FOR WORKERS OPINION ABOUT PERFORMANCE APPRAISAL PERFORMANCE APPRAISAL IS IN UTILIZING THE OPTIMAL SKILLS.

The deeper we dig. We cannot achieve anything worthwhile in any field only on the basis of theoretical knowledge from books. The quest for knowledge can never end. based on broad understanding of process and mode of operation of organization. firsthand experience for working in the actual environment. A well planned. the students get the real. It provides a linkage between the student and industry to develop an awareness of industrial approach to problem solving. No man can honestly say that he has learned all that this world has to offer. the greater the unexplored seems to be. It is the environment that makes sure that whether the result of this attitude is visible or otherwise. Gian Jyoti Institute of Management & Technology Page92 .PREFACE Excellence is an attitude that the whole of the human race is born with. During this period. properly executed and evaluated industrial training helps a lot in inculcating a professional attitude.

Pragmatic knowledge obtained through working at the ground zero level and gaining experience. Theoretical knowledge is of no use without practical one.B. I had the opportunity to have a real experience on my venture.A. positive and concrete results. This report pertains to Summer Training in partial fulfillment of my degree of M. the classroom knowledge need to be effectively wedded to the realities of the situation existing outside the classroom. which has increased my sphere of knowledge to a great extent. Gian Jyoti Institute of Management & Technology Page92 . in my view. is essential as theoretical one. In order to achieve tangible. if not more.

INTRODUCTION TO THE COMPANY Gian Jyoti Institute of Management & Technology Page92 .

marine. we continue to build on our position status as a market leader in product and service solutions to set ever higher standards and continually exceed customer. We are a premier supplier of products. as well as in power generation. we have developed the innovative products our customers need to produce the next generation of vehicles. The 40. aerospace.BEGINNING OF THE INDUSTRY Federal-Mogul Corporation is an innovative and diversified $6.000 people of Federal-Mogul located in 36 countries drive excellence in all they do. and to aftermarket customers who sell our world renowned brand-name in replacement parts through repair shops and retail outlets. Our globally-networked engineering and technical centers in the U. services and solutions to original equipment manufacturers that use our quality components in their vehicles and automotive systems. heavy-duty and off-highway vehicles. Gian Jyoti Institute of Management & Technology Page92 . shareholder and employee expectations. For more than a century.9 billion global supplier of quality products. Europe and Asia enable us to bring to our customers breakthroughs in advanced technology and innovation.S. light commercial. trusted brands and creative solutions to manufacturers of automotive. Now.. We partner with a global network of suppliers whose commitment to excellence and on-time delivery is crucial to our success. rail and industrial. as we write the history of our next 100 years.

ISO14001 and OHSAS 18001. light commercial vehicles. SUVs. sintered parts and cylinder liners covering a wide range of applications including two/three-wheelers. heavy commercial vehicles. Widest range of piston rings and pistons varying from 30mm to 300mm diameter. cars.Engine Parts • Manufacturer of world-class pistons. Market leaders both in OEM and aftermarket.26/3 Mohan Co-operative Industrial Estate New Delhi .110044 Tel: 41497600 Nanda Group Auto Ancl . Goetze and Goetze Brico provide leading-edge technologies and competitive solutions for original equipment manufacturers and the automotive aftermarket. • • • • COMPANY PROFILE Gian Jyoti Institute of Management & Technology Page92 . tractors.FEDERAL-MOGUL GOETZE (INDIA) LIMITED Registered & Corporate Office: Business Group: Industry Type: A . stationary engines and high output locomotive diesel engines. The most modern production facilities at Bangalore. Patiala and Bhiwadi are certified TS 16949. piston rings. Exports to many countries.

Goetze-Werke of Germany is now owned by FederalMogul Corporation. Germany.Federal-Mogul Goetze (India) Limited was established in 1954 as a joint venture with Goetze-Werke of Germany. Piston ring and liner production Piston production as Escorts (automotive division) (Collaboration: MAHLE) Cast iron/forged piston production started Pins/rings carrier production started New production plant installed in Bangalore Steel rings/large bore locomotive pistons Light alloy products Auto thermic piston production Moly coated/IKA/chrome oil rings Composite pistons/new ring foundry Bangalore Patiala. Goetze TP (India) ltd. a $6.3 billion global company and one of the leading manufacturers of automotive components in the world. Patiala. Bangalore Patiala Bangalore. With Goetze (India) ltd. 1954 1957 1958 1960 1968 1977 1982 1985 1989 1990 1994 1996 1997 2000 2003 2004 2004 2006 2006 Incorporated as a joint venture with Goetze werke. set up for manufacture of steel rings. Merger of FEDERAL-MOGUL sintered products ltd. Introduction of chrome-ceramic rings. Patiala. Merger of Escorts pistons activities with Goetze (India) ltd. Technical collaboration for pistons with Federal-Mogul Corporation Majority stake holding acquisition by Federal-Mogul Corporation Name changed "Goetze (India) Limited" to "Federal-Mogul Goetze (India) Limited" Gian Jyoti Institute of Management & Technology Page92 . Escorts (automotive division) hived off into joint venture with m/s Mahle. Patiala. Federal-Mogul Goetze (India) Limited is the largest manufacturer of pistons and piston rings in India. Patiala.

c CF t i on P ni l iR o n yi e n & g s A r tP i u & n d I r . sI r no i n cn g o n me l i n g e r v &i c e s L A F & & I n s p e c t i o n S t o r e s T o oT l r a i n i n g R o o m gI n h s t p Q e . yE S . Ot iP n . L i n e r us h r P c Ph T aC e s ce h a n i c a l t D e i as e l Dp a a e r p t a.ORGANIZATION CHART C E D M a r Hk M x h a i r m a n e e c u t i v i r e c t o r e . n c e P S l a Fn t i n M a n a c n e I u . Q f a P . l g a n H t . O a t C e r h i ai F e l if s n a . c C e t ur . t o P r C y l . el a s n t s C L F y C l i n y d l R i e n i r dn R ge i r n L g i i n L e i r n F e o r uM n a d A c r yh l o uM n a d &c r yh iS n h e F o op S h Go p I L L a b Gian Jyoti Institute of Management & Technology Page92 . r t .

PRODUCTION FACILITIES Gian Jyoti Institute of Management & Technology Page92 .

Quality Head . Subramaniam Mr. Andreas Kolf Mr. Mahesh Joshi Gian Jyoti Institute of Management & Technology Page92 . Peter Miller Mr.N. Rustin Ray Murdock Mr. K. Mukul Gupta CORPORATE LEADERS Whole Time Director & CFO Executive Director .Original Equip. Rajan Luthra Mr. Rustin Ray Murdock Mr.Operations Financial Controller & Company Secretary Head . Rainer Jueckstock Mr.MANAGEMENT BOARD OF DIRECTORS Designation Chairman & Director Managing Director & President Whole Time Director & CFO Director Director Name Mr. Sales Mr. SGP Naidu Mr. Rajesh Sinha Mr. Jean de Montlaur Mr.Information Systems Head – AE + R&D Head .

Bahadurgarh. entered into joint venture with M/s. Patiala was set up in 1954 with the collaboration of M/s. ventured into manufacturing of Pistons in 1958 with the collaboration of M/s. Pistons (on 302 working days). Escorts Ltd. The total capital employed as on 31 March 2004 is 134. in Ring Activity and 1304 in Piston Activity as on 31 March 2004. In June 2000. Escorts entered in collaboration with M/s. about 10 kms. both Escorts Mahle Ltd. a well-known group of USA. Mahle GmbH. Piston Rings and 52. Considering the need of complete Piston assembly.46 crores in Ring Activity and Piston Activity. in 1998. From Patiala on the Patiala-Rajpura Road. a parallel unit for manufacturing Pistons and Piston Pins was set up in Bangalore. From 1 October 1996.68 lac nos. SUKO GmbH. The plant is situated at Bahadurgarh. The turnover of the Patiala Plants is 159 crores excluding Excise (combined in Ring Activity and Piston Activity) as on 31 March 2004..09 lacs nos. Germany. The workforce including managers and supervisors is 1131 nos. Germany with the formation of the new company Escorts Mahle Ltd. BAHADURGARH. Escorts Ltd. Goetze also became a part of Federal Mogul. Goetze Werke. Germany for Piston Rings in 1967 and manufacturing started in 1968. and Goetze have become QS-9000 certified companies. which delivered the Indian automobile industry its Pistons in 1960. PATIALA Goetze (I) Ltd. The present capacity of the plant is 285.FEDERAL MOGUL GOETZE (INDIA) LTD. Gian Jyoti Institute of Management & Technology Page92 . Mahle GmbH. in 1977. Germany which started its production of Piston Rings for automobile industry in 1957. To meet the increasing demand of market.

Manufacturing Facilities: The Patiala plant is located in the north of India about 250 km from the capital . Sunit Kapur Rajpura Road. piston rings.com http://federalmogulgoetzeindia.kapur@federalmogul.New Delhi.htm Gian Jyoti Institute of Management & Technology Page92 . This plant manufactures a wide range of pistons. It is connected by road and rail routes. Patiala-147001 India 91-175-2381441 to 46 91-175-2381406 sunit. Bahadurgarh.net/web/index. cylinder liners and light alloy castings  Campus Manager:  Factory:     Phone Number: Fax Number: E-mail: Website: Mr.

Consistent development of human resources through training at all levels will be our major thrust area. It commits to develop and build an image in the international market to achieve a sustained annual growth in exports. POLICY We shall continue to manufacture all our products in conformity with accepted international norms/ standards.GRANT MISSION OF THE COMPANY “Steadily moving towards leadership with piston with vision strategy seeing it as the best way to leaders in business” VISION OF THE COMPANY Page92 “To be one of the worlds leading automotive solutions provider” Gian Jyoti Institute of Management & Technology .QUALITY POLICY FEDERAL MOGUL GOETZE (INDIA) LIMITED commits itself to leadership in national market for all its products and ensuring total customers’ satisfaction highest in industry.CHARLES B. MR. We shall also continue to retain our leadership in development of products through technical know-how from our Collaborators and in-house developments.

JAPAN  Yamaha  Kayaka C. USA  HUGHES E. FRANCE  Bosch Gian Jyoti Institute of Management & Technology Page92 . GERMANY  Faun  Class B.A Germany Nepal Sri Lanka Uganda COLLABORATIONS A.S. UK  JCB (Goetze)  Ford D.GLOBAL MARKET FMGI has the distinction of pioneering exports and collaborations with following countries: EXPORT DESTINATION           Dubai Bangladesh Singapore Egypt Mauritius U.

Rising prices of raw materials. Availability of cheap labor. Decades of experience WEAKNESS • Raw material prices are on the increase. Gian Jyoti Institute of Management & Technology Page92 . State of the art quality assurance. Stock of raw materials for 5-6 months.  OPPORTUNITIES • • • Expanding exports. 95 % capacity utilization. • Many types of machinery have become obsolete. Forward as well as backward integration.  THREAT • • Growing competition from foreign brands. • The operating expenses are on the higher side.SWOT ANALYSIS  STRENGTH • • • • • • • • • •  Latest technology Established product Established market Strong finance Experienced and committed personnel. Foreign collaboration.

Piston Pins. Production Capacity: Product Range: Applications: 13 million pistons per annum 30 mm to 300 mm diameter Bi-wheelers. Heavy commercial vehicles.  PISTONS Federal-Mogul Goetze India has state-of-the-art test bed facilities. Piston rings. Cylinder Liners. Brackets. Shock Absorber.PRODUCT PROFILE Federal Mogul Goetze (I) Limited manufactures wide range of Liners. Cars. Tractors. Light Alloy casting & Sintered Products. Light Alloy casting & Sintered Products. Gudgeon Pins. . Brackets. Piston. Gudgeon Pins. Gian Jyoti Institute of Management & Technology Page92 SUVs. Cylinder blocks. Shock Absorber. design facilities for products and dies and tooling with CAD/PRO-E.

tooling with CAD/PRO-E/GLIDE SOFT and test bed facilities. Federal-Mogul Goetze India is dedicated to developing new technologies and continuously improving its products. SUVs. Tractors. Stationary engine Products suitable for 4 stroke engines 2 stroke engines Gasoline engines  PISTON RINGS Goetze piston rings of OEMs and Aftermarket in India have state-of-the-art design facilities for products. Cars. . Production Capacity: Product Range: Applications: 55 million rings per annum 30mm to 300mm diameter Bi-wheelers. Heavy output locomotive diesel engines.Heavy output locomotive diesel engines. Gian Jyoti Institute of Management & Technology Page92 Heavy commercial vehicles.

Stationary engine TX Type Expander & Cr Plated Rails Chrome Plated Ring Coating on Running Surface: Chrome ceramic plated rings (CKS) Molybdenum coated rings Plasma filled rings Semi-inlaid rings Ferrox filled rings Features: Thin rings made from SG iron Asymmetric profile rings Specially honed chrome rings Lower sharp edge rings Reverse torsion rings Conformable chrome oil rings Keystone Interrupted cut Narrow land  CYLINDER LINERS Gian Jyoti Institute of Management & Technology Page92 .

including cylinder blocks. makes a wide variety of light metal castings. and aluminum tube castings and aluminum crown handles for motorcycles. cylinder heads for single cylinder engines.5 million liners per annum 50 mm to 120 mm internal diameter Bi-wheelers Cars Tractors Light commercial vehicles Heavy commercial vehicles Stationary engines Features: Thin-walled Plateau honed With and without flanges Coating: Phosphating  METAL CASTINGS Gian Jyoti Institute of Management & Technology Page92 Federal-Mogul Goetze (India) Ltd.Federal-Mogul Goetze India manufactures wet and dry cylinder liners with honing and sleeves for bi-wheeler applications for its quality conscious customers. . Production Capacity: Product Range: Applications: 0.

o Telco  BI-WHEELERS o Bajaj Auto Ltd. o Escorts Yamaha Ltd. o Premier Automobiles Ltd. o Mahindra & Mahindra Ltd. Gian Jyoti Institute of Management & Technology Page92 . o Kinetic Engineering Ltd. o Ideal Jawa (I) Ltd. o Scooters India Ltd. o TVS Suzuki Ltd. o Escorts Ltd. o Majestic Auto Ltd. (Farmtrac Division) o HMT Ltd. o Lohia Machines Ltd. (TD) o Escorts Ltd. o Maruti Udyog Ltd. o Mahindra & Mahindra Ltd.MAJOR CUSTOMERS OF THE COMPANY  PASSENGER CARS & JEEPS o Hindustan Motors Ltd.  TRACTORS o Eicher Tractors Ltd.

LOCATION OF DEPOTS Gian Jyoti Institute of Management & Technology Page92 . COMMERCIAL VEHICLES (LCV’s & MCV’s) o Telco  DEFENCE o Vehicles Factory. Jabalpur  COMPRESSORS o Telco  STATIONERY ENGINES o Kirloskar Oil Engines Ltd.

MARKET SHARE OF PISTON MANUFACTURERS IN INDIA Company Name Goetze Perfect Circle IP Ring Shriram Piston SAMKRG Piston Menon Piston Market Share (%) 36.0 3.5 Perfect Circle IP Rings Shriram Piston SAMKRG Piston Menon Piston Gian Jyoti Institute of Management & Technology Page92 .5 16.5 MARKET SHARE OF PIST ON MANUFACTURERSIN INDIA Goetze 9 3.5 12.5 22.5 22.5 12 36.5 9.0 16.

ORGANISATION GOALS The company has laid down for itself goal of improving the “value” to the customers through: 1. TECHNICAL REQUIREMENT: Products are manufactured as per specifications based on DIN / JIS / IS / MAHLE NORMS / SUKO NORMS as also against customers specific requirements. several measures like smoke precipitators. CUSTOMER SATISFACTION: It shall strive to achieve customer satisfaction rating more than 90%.ORGANISATION OF FEDERAL MOGUL GOETZE (INDIA) LTD. plantation programs etc. QUALITY: To improve quality consistently through quality assurance and process control. Product Development: To develop Piston and Piston Pins for all new applications as identified. have been adopted. DELIVERY: To strive to achieve 100% on time delivery as per customer requirements 6. ENVIRONMENT AND SAFETY: FMGI is fully aware of its environment and social responsibilities. 2. 4. effluent treatment plant. Pollution control Gian Jyoti Institute of Management & Technology Page92 . Technology: modernization and up gradation of technology to the latest improvements to meet customer requirements. To keep the environment healthy. 5. LEADERSHIP: To maintain leadership in following categories Market share: to maintain its status as brand leaders in the country for Piston and Piston Pins. 3.

4. EMPLOYEE COMMUNICATION so that employees contributes their best to company’s objectives and also get opportunities for advancement and self-development. b. . HR Department Finance Department Purchase and Store Department Production Department HR DEPARTMENT HR department advises the management on all matters relating to HR administration. to meet selling costs to provide credit facilities to customers and to maintain inventories is also the function of this department. 2. TRAINING AND WELFARE MEASURES. PROVISION OF COMMUNICATION. where employees get treatment on reimbursement basis ORGANISATION SET UP The organizational set up of the following departments is studied in detail: 1. 2. The top management takes into account its advice before arriving at final decisions on human resources and administrative matters. HR Policies in FEDERAL MOGUL GOETZE (INDIA) LIMITED have been divided into three parts: a. The company has its own medical centre as well as a heart institute and research centre. INDUSTRIAL RELATIONS between employer and employee so as to promote satisfactory relations by providing channels for upward and downward communication and establishing systematic procedure for redress. 3. HR FUNCTIONS to encourage the adoption and utilization of latest methods and techniques in areas of manpower planning and development and keeping avenues of promotion open to employees.methods adopted by the company have been approved by the Central Govt. c. 1. FINANCE DEPARTMENT Gian Jyoti Institute of Management & Technology Page92 The realization of cash for the purpose of raw materials components and spares to pay wages and salaries to incur day to day expenses and overhead costs. MEDICAL FACILITIES: Company takes a lot of interest in the extra curricular activities like medical programs and rural development programs etc. 7. Periodic checks and regular training is conducted to ensure safety.

Labor budget c. It is very essential that there should be proper synchronization between Purchase Department and Store Department. Prices Stores deal with an array of material. The purchase order is placed only with approved contractors. PRODUCTION DEPARTMENT The Department is responsible for production of various items fixed on basis of production budget. The Purchase Department scrutinize the following aspects: a. Plant utilization budget GOETZE (INDIA) LIMITED turns out a wide variety of Piston Rings for BiWheelers. Raw materials b. fringe benefits of retirement. which the employees get for rendering their services to the company 3. list the potential sellers and the rates. provident funds deduction. formulation and execution of credit policy is also the function of Finance Department. Quality and Technical specifications b. PURHCASE AND STORE DEPARTMENT Purchase and Store are two Departments. Heavy Light Commercial Vehicles and Motor Cars etc.The formulation of policies with regard to profitability risk and liquidity. The Company has maintained steady growth in Piston Rings in view of ready acceptability of its products. decisions about comparison and level of current assets and liabilities. formulation of production policy to keep the production steady by accumulating inventories. which can be divided into: a. Delivery c. In GOETZE (INDIA) LIMITED. Raw material budget b. Components c. Standard items or patent items 4. the main responsibility of Purchase Department is to receive orders from other Departments. choose the best and go ahead with purchase. Form modes production of 22517 rings in 1957 it touched a figure of 24 million in 2003-04. It deals with determination of monthly wages. bonus and all the rewards. which go hand in hand. do the market survey. incentives. which includes: a. Gian Jyoti Institute of Management & Technology Page92 . salaries of employees.

INTRODUCTION TO THE PROJECT Gian Jyoti Institute of Management & Technology Page92 .

So our field of interest for research was Federal Mogul Goetze (India) limited. both in the private as well as public sector organizations.how far the targets have been achieved. There are various parameters or yardsticks to measure the efficiency and capabilities of the employee and his dedication towards the organization. Federal Mogul has come a long way as a huge organization. Patiala Performance Appraisal has different measures to judge the capabilities and efficiency of an individual in an organization. how has his performance been! It plays a very important role in their analysis as it keeps the employees motivated towards their jobs. Gian Jyoti Institute of Management & Technology Page92 . a trendsetter. This assessment also helps in the overall growth of the organization. So Performance Appraisal today plays a very important role in keeping a track of various employees for different kinds of jobs in the organization. This is basically a process which evaluates the performance of an employee from time to time. Even today in the era of globalization Performance Appraisal has become very important and a dire necessity for the employees.INTRODUCTION Down the ages in some or the other form Performance Appraisal has always been in vogue in mundane forms and features. We particularly chose this company also because we happen to know people who work for the organization and can effectively help us in getting meaningful information.

Human Resource (or personnel) management. the reality for many organizations are that their people remain under valued. RATIONALE OF THE STUDY Performance Appraisal is the important aspect in the organization to evaluate the employee’s performance. To take the response of employees towards the Performance Appraisal activities carried on upon them and to study the implications of an effective performance appraisal system on the productivity of employees • • To analyze the employee expectations and responsibilities towards the organisation. involvement. contributions and potentials of employees. under trained and under utilized. It helps in understanding the employees work culture. It helps the organization in deciding employee’s promotion. It consists of all formal procedures used in the working organizations to evaluate personalities. which no member of any senior management team would disagree with. “People are our most valuable asset” is a cliché. • • To study the strengthening the relationship and communication between superior subordinates and management – employees. and satisfaction. 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. is an essential part of every manager’s responsibility. transfer. Yet. incentives. Gian Jyoti Institute of Management & Technology Page92 .OBJECTIVES OF THE STUDY The objectives of present study are as follows: • To study the current performance appraisal system of the organization and identify the gaps between the current state and the desired-in-state To study the implications of an effective performance appraisal system on the productivity of employees and the organizational performance as a whole. in the sense of getting things done through people. Performance Appraisal is 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. and pay increase.

Avoiding performance issues ultimately decreases morale. theoretical. current and relevant references with consistent. evaluate. Organization's are hard pressed to find good reasons why they can't dedicate an hour-long meeting once a year to ensure the mutual needs of the employee and organization are being met. Second a literature review seeks to describe. Most often associated with science-oriented literature. PhD. clarify and/or integrate the content of primary reports". decreases credibility of management. their own personal strengths and areas for development and a solid sense of their relationship with their supervisor. summarize. decreases the organization's overall effectiveness and wastes more of management's time to do what isn't being done properly. appropriate referencing style. Performance reviews help supervisors feel more honest in their relationships with their subordinates and feel better about themselves in their supervisor roles. critical/analytic. MBA. Authenticity Consulting. Gian Jyoti Institute of Management & Technology Page92 . do not report any new or original experimental work. but in the vast majority of cases reports are written documents. Copyright 1997-2008. proper use of terminology. and an unbiased and comprehensive view of the previous research on the topic. such as a thesis. According to Cooper (1988) "a literature review uses as its database reports of primary or original scholarship. Subordinates are assured clear understanding of what's expected from them. the literature review usually precedes a research proposal. The types of scholarship may be empirical. Adapted from the Field Guide to Leadership and Supervision. LLC. Yearly performance reviews are critical.LITERATURE REVIEW A literature review is a body of text that aims to review the critical points of current knowledge on a particular topic. A good literature review is characterized by: a logical flow of ideas. The primary reports used in the literature may be verbal. or methodological in nature. Literature reviews are secondary sources. Its ultimate goal is to bring the reader up to date with current literature on a topic and forms the basis for another goal. Basics of Conducting Employee Performance Appraisals Written by Carter McNamara. methodology and results section. and does not report new primary scholarship itself. and as such. such as future research that may be needed in the area.

There is also a group who argues that the evaluation of employees for reward purposes. and feel more satisfied with it. Research (Bannister & Balkin. and goal-based . Vol 63. are part of the basic responsibilities of management. The practice of not discussing reward issues while appraising performance is. based on inconsistent and muddled ideas of motivation. ratees and other users of performance appraisal is described in this book. June. Understanding performance appraisal: organizational. Gian Jyoti Institute of Management & Technology Page92 . Performance management By Robert Bacal You can achieve performance levels once thought unattainableÐbut only when managers and workers establish clear lines of communication. and frank communication with them about their performance. British Psychological Society. It will show you how to conduct goals-focused performance planning meetings and performance appraisals and foster a true commitment to success within each employee. The authors suggest ways in which this goal-oriented perspective might be applied in developing. the manager. Performance Management will benefit the employee. The model emphasizes the context in which appraisal occurs and takes as a starting point the assumption that many of the apparent shortcomings of performance are. A social-psychological model of organizational appraisal processes which emphasizes the goals pursued by raters. sensible adaptations to the various requirements. implementing and evaluating performance appraisal systems. 1990) has reported that appraisees seem to have greater acceptance of the appraisal process.D. and understand how their jobs contribute to the goals of both themselves and the organization.B. D.. B. pressures and demands of that context. By Kevin R. and the organization itself. Jeanette Cleveland social. in fact. Performance Management is the comprehensive guidebook on how to establish a communication system to get top performance and value from each employee.. when the process is directly linked to rewards. (1990) Performance evaluation and compensation feedback messages: an integrated model. & Balkin.Bannister. A meaningful tool for stimulating workplace cooperation. Murphy. Journal of Occupational Psychology. say critics. Such findings are a serious challenge to those who feel that appraisal results and reward outcomes must be strictly isolated from each other.

The University of Akron. We believe that the focus of recent performance appraisal research has widespread implications ranging from theory development and enhancement to practical application. 290 East Buchtel Avenue. Vol. Indianapolis. No. we developed a model of this process and conducted a systematic review of the relevant research.005 Gian Jyoti Institute of Management & Technology Page92 . HR strategies. Indiana University-Purdue University Indianapolis. Finally. First.1016/j. OH44325-4301. Williams Psychology Department. Levy Department of Psychology. 402 N. the influence that the feedback environment or feedback culture has on performance appraisal outcomes is an especially recent focus that seems to have both theoretical and applied implications. but which have received very little research attention.2004.edu Jane R.06. USApelevy@uakron. Journal of Management. Second. This review of over 300 articles suggests that as a field we have become much more cognizant of the importance of the social context within which the performance appraisal process operates.jm.edu Performance appraisal research over the last 10 years has begun to examine the effects of the social context on the appraisal process. 30. and economic conditions that are potentially important for understanding the appraisal process. IN 46142. 881-905 (2004) DOI: 10. 6. Akron.. Drawing from previous theoretical work. research has broadened the traditional conceptualization of performance appraisal effectiveness to include and emphasize ratee reactions. there appears to be a reasonably large set of distal variables such as technology. USAjrwillim@iupui.The Social Context of Performance Appraisal: A Review and Framework for the Future Paul E. Blackford St.

it seems. informally and arbitrarily." Appraisal. people will tend to judge the work performance of others. should provide the only required impetus for an employee to either improve or continue to perform well. if their performance was better than the supervisor expected. a cut in pay would follow. fair. But this is not very helpful. appraisal was used to decide whether or not the salary or wage of an individual employee was justified. there is little chance of ensuring that the judgments made will be lawful. ethical and legal problems in the workplace. Without a structured appraisal system. If was felt that a cut in pay. As a distinct and formal management procedure used in the evaluation of work performance. Yet in a broader sense. early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. In the absence of a carefully structured system of appraisal. appraisal really dates from the time of the Second World War .THEORETICAL FRAME WORK PERFORMANCE APPRAISAL HISTORY: The history of performance appraisal is quite brief. If an employee's performance was found to be less than ideal. For example. as well as about oneself. was given to the developmental possibilities of appraisal.. In the scale of things historical. is both inevitable and universal. a pay rise was in order. On the other hand. Gian Jyoti Institute of Management & Technology Page92 . or a rise. Little consideration. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. That is. for the same may be said about almost everything in the field of modern human resources management. The process was firmly linked to material outcomes.. Performance appraisal systems began as simple methods of income justification. if any.not more than 60 years ago. it might well lay claim to being the world's second oldest profession! There is". naturally. The human inclination to judge can create serious motivational. it failed. the practice of appraisal is a very ancient art. These observations were confirmed in empirical studies. Pay rates were important. including subordinates. a basic human tendency to make judgments about those one is working with. Sometimes this basic system succeeded in getting the results that were intended. defensible and accurate. but more often than not.

Gian Jyoti Institute of Management & Technology Page92 . DEFINATION AND CONCEPT: Performance Appraisal is the process of obtaining. performance appraisal goes to the heart of personnel management and reflects the management’s interest in the progress of the employees. but they were not the only element that had an impact on employee performance.yes. As a result. the traditional emphasis on reward outcomes was progressively rejected. It is a powerful tool to calibrate. periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job. a prominent personality in the field of Human resources. could also have a major influence." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future. According to Flippo. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals. In the 1950s in the United States. analyzing and recording information about the relative worth of an employee. Its aim is to measure what an employee does. began from that time. such as morale and self-esteem. By focusing the attention on performance. It was found that other issues. “performance appraisal is the systematic. The general model of performance appraisal. refine and reward the performance of the employee. as it is known today. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. the potential usefulness of appraisal as tool for motivation and development was gradually recognized.

achievable. time bound and measurable. It also helps the evaluators to give a proof and the basis of their ratings. 5) Communication – Communication is an indispensable part of the performance appraisal process. motivating.The appraisal format should be simple. easy to understand. fair and objective. clear. 4) Evaluation technique – An appropriate evaluation technique should be selected. the appraisal system should be performance based and uniform. 3) Practical and simple format . The desired behavior or the expected results should be Gian Jyoti Institute of Management & Technology Page92 . 2) Standards / Goals – the standards set should be clear.PROCESS OF PERFORMANCE APPRAISAL: PRE-REQUISITES FOR SUCCESSFUL PERFORMANCE APPRAISAL: The essentials of an effective performance system are as follows: 1) Documentation – means continuous noting and documenting the performance.

7) Personal Bias – Interpersonal relationships can influence the evaluation and the decisions in the performance appraisal process. 4) Errors in rating and evaluation-The rater should exercise objectivity and fairness in evaluating and rating the performance of the employees 5) Resistance-The appraisal process may face resistance from the employees and the trade unions for the fear of negative ratings. CHALLENGES IN PERFORMANCE APPRAISAL: In order to make a performance appraisal system effective and successful. an organization comes across various challenges and problems. • Organizational outcomes or the achievement of organizational goals should also be kept in mind. the criteria selected should be in quantifiable or measurable terms 2) Create a rating instrument.communicated to the employees as well as the evaluators. Gian Jyoti Institute of Management & Technology Page92 . 3) Lack of competence-Top management should choose the raters or the evaluators carefully. Measuring employee performance is the basis of the Performance appraisal processes and performance management. vendors and the employee himself. customers. Some suggestions and tips for measuring employee performance are: • Clearly define and develop the employee plans of action (performance) with their role. different input forms can be used for taking the feedback from the various sources like the superior. 6) Feedback – The purpose of the feedback should be developmental rather than judgmental. the employees should be communicated and clearly explained the purpose as well the process of appraisal. Measuring the performance covers the evaluation of the main tasks completed and the accomplishments of the employee in a given time period in comparison with the goals set at the beginning of the period.The focus of the system should be on the development of the employees of the organization. MEASURING EMPLOYEE PERFORMANCE: The most difficult part of the performance appraisal process is to accurately and objectively measure the employee performance. The main challenges involved in the performance appraisal process are: 1) Determining the evaluation criteria-For the purpose of evaluation. They should have the required expertise and the knowledge to decide the criteria accurately. duties and responsibilities. Therefore. peers. For the purpose of measuring employee performance.

organizations. Timely recognition of the accomplishments also motivates the employees and help to improve the performance.• • Focus on accomplishments and results rather than on activities. Also take note of the skills. • Financial measures like the return on investment. the market share. knowledge and competencies and behaviors of the employees that help the organization to achieve its goals. For example: By measuring only the activities in employee’s performance. • If possible. It is a detailed report prepared by the immediate boss. it is very important to monitor or measure its’ and its employee performance on a regular basis. No feedback is given to the employee. Measuring the performance of the employees based only on one or some factors can provide with inaccurate results and leave a bad impression on the employees as well as the organization. CONFIDENTIAL REPORT: mostly used in govt. collect the feedback about the performance of the employees through multi-point feedback and self-assessments. an organization might rate most of its employees as outstanding. Gian Jyoti Institute of Management & Technology Page92 . Effective monitoring and measuring also includes providing timely feedback and reviews to employees for their work and performance according to the pre-determined goals and standards and solving the problems faced. the profit generated by the performance of the team should also be considered. METHODS AND TECHNIQUES OF PERFORMANCE APPRAISAL: INDIVIDUAL EVALUATION METHOD: 1. Therefore. even when the organization as a whole might have failed to meet its goals and objectives. For an organization to be an effective organization and to achieve its goals. a balanced set of measures (commonly known as balanced scorecard) should be used for measuring the performance of the employee.

GRAPHIC RATING SCALE: In this method. The rater is unaware of how the phrases are marked and therefore chooses what best describes the employee. Steps in MBO: Gian Jyoti Institute of Management & Technology Page92 . The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. 4. Develop final instrument FORCED CHOICE METHOD: Focus of this method is to eliminate the rater from giving too high or too low ratings to the employee. 8. 3. CHECKLIST METHOD: The rater is given a checklist of the descriptions of the behavior of the employees on job. Identify critical incidents Step 2. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees. 6.      7. Assign scales to incidents Step 5. the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. also known as “Free Form method” involves a description of the performance of an employee by his superior. The factors taken into consideration include both the personal characteristics and characteristics related to the on-the-job performance of the employees. It includes both negative and positive points. Retranslate the incidents Step 4. CRITICAL INCIDENTS METHODS: In this method of Performance Appraisal. measurable goals with each employee and then periodically discusses the performance towards these goals.2. MANAGEMENT BY OBJECTIVES (MBO): This requires the management to set specific. an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. 5. Select performance dimension Step 3. This method uses paired phrases that carry favorable or unfavorable credits. ESSAY APPRAISAL METHOD: This traditional form of appraisal. BARS (BEHAVIORALLY ANCHORED RATING SCALE) Step 1.

This technique is not fully developed. this group used any of the techniques mentioned above of appraising. FIELD REVIEW: In this method. HOD. Group consists of immediate supervisor. It is quite useful for a comparative evaluation 10. 11.MULTIPLE. HUMAN RESOURCE ACCOUNTING (HRA): It is a sophisticated way of accounting for people as an organizational resource.PERSON EVALUATION METHODS 9. this method compares each employee with all others in the group. The value if an employee is increased when organizations invest in T&D. FORCED DISTRIBUTION: To eliminate the element of bias from the rater’s ratings. 13. OTHER METHODS 12. the employees are given the final rankings. the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. GROUP APPRAISAL: An employee is appraised by a group of appraisers. After all the comparisons on the basis of the overall comparisons. STRAIGHT RANKING METHOD: This is one of the oldest and simplest techniques of performance appraisal. Gian Jyoti Institute of Management & Technology Page92 14. other supervisors. In this method. one at a time. PAIRED COMPARISON: A better technique of comparison than the straight ranking method. the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective . The rater chooses the appropriate fit for the categories on his own discretion. manager etc.

Observers then rank the performance of each and every participant. ASSESSMENT CENTRE: Individuals from various departments are brought together to spend 2-3 days working on individual or group assignments similar to the ones they have handled. But this method helps to reduce the superiors’ personal bias. These centers are basically meant for evaluating the potential of candidates. BENEFITS OF APPRAISAL SYSTEM BENEFITS TO THE APPRAISER  Improved performance of individual and department  Improved relationship  Identification of staff weakness  Identification of existing problem  Identification of departmental training needs  Identification of individual training needs  Identification of potential  Identification of own strength and weaknesses  Increased opportunity to communicate companies objective BENEFITS TO THE APPRAISER  Opportunity to express own views  Opportunity to find about own strengths and weaknesses  Find out the areas in which to increase the delegation  Increased opportunity to praise and conduct  To demonstrate own managerial skills BENEFITS TO THE ORGANISATION  Improved performance of individuals  Improved performance of department  Improved profitability and efficiency  Improved quality of production  Increased ability to evaluate value of training provided  Valid information relating to labour turnover  More accurate assessment of potential individuals and department  Able to plan & adjust salary scales where appropriate  Able to adopt the short terms needs Gian Jyoti Institute of Management & Technology Page92 . 15. A major drawback of this method is that it is a very time consuming method.subordinates.

CURRENT GLOBAL TRENDS IN PERFORMANCE APPRAISAL PROGRAM Gian Jyoti Institute of Management & Technology Page92 .

and input from superiors. customer feedback. Organizations are increasingly using feedback from various sources such as peer input. . • In India. Performance appraisal defines and measures the performance of the employees and the organization as a whole. Different forms with different formats are being used to obtain the information regarding the employee performance.CURRENT GLOBAL TRENDS IN PERFORMANCE APPRAISAL PROGRAM: The performance appraisal process has become the heart of the human resource management system in the organizations. • Performance measuring. the most prominent being the lack of quantifiable indicators of the performance. It is a tool for accessing the performance of the organization. also known as 'multi-rater feedback'. rating and review system have become more detailed. structured and person specific than before. • Trend towards a 360-degree feedback system • The problems in the implementation of the performance appraisal processes are being anticipated and efforts are being made to overcome them. • Performance related pay is being incorporated in the strategies used by the organizations. the performance appraisal processes are faced with a lot of obstacles. GLOBAL TRENDS The emergence of following concepts and the following trends related to Performance appraisal can be seen in the global scenario:  360 DEGREE APPRAISALS: Gian Jyoti Institute of Management & Technology Page92 360 degree feedback. is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job. The important issues and points concerning performance appraisal in the present world are: • The focus of the performance appraisals is turning towards career development relying on the dialogues and discussions with the superiors.

the rank and yank strategy refers to the performance appraisal model in which best-to-worst ranking methods are used to identify and separate the poor performers from the good performers.  RANK AND YANK STRATEGY: Also known as the “Up or out policy”. to measure and rate the performance of the individual employee. it becomes difficult to measure and appraise the performance of the team. Microsoft and Sun Microsystems Gian Jyoti Institute of Management & Technology Page92 . after which the appropriate HR decisions are taken. Some of the organizations following this strategy are Ford. Most of the performance appraisal techniques are formulated with individuals in mind i.e. Therefore.S. A solution to this problem that is being adopted by the companies is to measure both the individual and the team performance. with the number of teams increasing in the organizations. Companies”. TEAM PERFORMANCE APPRAISAL: According to a wall street journal headline. team based objectives are also included in the individual performance plans. Then the action plans and the improvement opportunities of the poor performers are discussed and they are given to improve their performance in a given time period. Sometimes. “Teams have become commonplace in U. The question is how to separate the performance of the team from the performance of the employees.

PERFORMANCE APPRAISAL AS MOTIVATION Gian Jyoti Institute of Management & Technology Page92 .

who receive both accuracy and a pay increase during their performance review. The discrepancies and the inaccuracies in the performance review can de motivate the employees. are likely to be the most motivated. Similarly. Employees. forcing the employees to look out for other options. An employee prefers an accurate performance review with no increase in the salary over inaccurate performance review with an increase in salary. Therefore. Various surveys and studies have testified the relationship between performance review. Such inaccuracies can kill the innovating and risk taking enthusiasm and spirit in the employees. inaccurate reviews with no hike in compensation can increase the attrition rate in the organization. even if there has been an increase in the salary. performance appraisal (review and its consequence in the form of compensation adjustments) has the potential of motivating employees and increasing their job satisfaction. support him to overcome the problems and failures. pay and motivation. Gian Jyoti Institute of Management & Technology Page92 . The latest trend being followed by the HR professionals is to use the performance appraisal and review process as a motivating mechanism. Inaccurate evaluation is one reason because of which most employees dread going through performance appraisals. the HR professionals are approaching and using the performance appraisal as a fuel to motivate employees. An employee always expects his appraiser to recognize and appreciate his achievements.PERFORMANCE APPRAISAL AS MOTIVATION Keeping in mind the growing attrition rates and the employee dissatisfaction among the employees. One of the most motivating factors for the employees. in the performance appraisal processes is to receive a fair an accurate assessment of their performance.

PERFORMANCE APPRAISAL SYSTEM AT FEDERAL MOGUL Gian Jyoti Institute of Management & Technology Page92 .

The second board objective of the document is to introduce value orientation in the company with the heads of department being the key inculcating forces of such values in their respective departments. the percentage of employees of the FMGI using performance appraisal for the various purposes is as shown in the diagram below: The most significant reasons of using Performance appraisal are: • • Making payroll and compensation decisions – 80% • Identifying the gaps in desired and actual performance and its cause – 76% Gian Jyoti Institute of Management & Technology Page92 Training and development needs – 71% . with the personnel policies and practices of the company. PURPOSE OF PERFORMANCE APPRAISAL ACCORDING TO SURVEY AT FEDERAL MOGUL According to a recent survey. the heads of the department as the executing forces. with personnel department as the critical initiating and coordinating factor. The objectives have been defined and the set objectives are:To overhaul and improvise the existing personnel policies and practices of the company. so that the company. productive as well as humane organization. For both the workers & staff. as a whole becomes an effective. and the top management as the spirit.POLICY A Well defined appraisal policy exists in FEDRAL MOGUL GOETZE INDIA.

This form will be retained by the appraisal and he will make nothing of extra ordinary performance and not up to mark round the year.• • • Deciding future goals and course of action – 42% Promotions. etc. promotions.  Executive director will be appraising the top category. demotions and transfers – 49% Other purposes – 6% (including job analysis and providing superior support. Document criteria used to allocate organizational rewards. assistance and counseling) AIMS OF PERFORMANCE APPRAISAL AT FMGI: • • • • Give feedback on performance to employees. Identify employee training needs. Form a basis for personnel decisions: salary increases. He will make the help of this data during appraising the appraise and while conducting the appraisal .  The performance is based on factor analysis and appraises has to select the best suited in front of each anchor (activity) according to the performance of the appraisal based on the objective determined and norms set by the company.  The performance appraisal from will be maintained by personnel department and it will be responsible for sending and collecting it timely. Provide the opportunity for organizational diagnosis and development.  The appraisal below second line in command will be done by heads of the department. Facilitate communication between employee and administrator. Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements.  The objective and expectations should be clearly defined in the beginning of the year and well communicated to the appraisee. Gian Jyoti Institute of Management & Technology Page92  For officer and above appraisal has to fill critical incident form. disciplinary actions. • • • PROCEDURE  Periodicity of appraisal will be half yearly for all categories of staff and annual for workers.

b) How to apply/administer the appraisal form. but the fundamentals of performance appraisal are the same.  Periodic training is to be given to appraiser on appraising techniques orientation session are conducted for first line and second line for the following purpose:a) How to fill in initial incident method form. performance appraisal is more effectively used as the tools of managing performance.  Heads of the department will be sending critical incident from of second line in command duly fulfilled to executive director for his reference. the characteristics and the standards for evaluation may be different.  Accuracy and Productivity of each process. c) How to conduct appraisal interview with the concerned subordinates/appraisees. But as the level of the employees’ increases. Such appraisal interview would go a long way in motivating the subordinates effectively. a) Increments b) Promotion c) Training d) Transfer e) Counseling f) Stoppage of increments g) Stoppage of promotions h) Termination i) Any other APPRAISAL FOR EMPLOYEES AT DIFFERENT LEVELS: Performance appraisal is important for employees at all levels throughout the organization.e.  The personal departments will analysis the appraisal data submit is recommendation for necessary action as below. The general parameters for the measurement of employees’ performance are:  Speed i.  Appraisal interview for officers and above will be conducted by the immediate appraiser/superior and feedback is to be given on their performance. process performance. The parameters. recording twice a year.interview. Gian Jyoti Institute of Management & Technology Page92 .

The rater might not be competent to do the evaluations Gian Jyoti Institute of Management & Technology Page92 .PROBLEMS ENCOUNTERED DURING PERFORMANCE APPRAISAL  Ineffective organizational policies  Judgment errors • • • • • • • First impressions Halo effect Horn effect Leniency Central tendency Stereotyping Recency effect  Poor appraisal forms • • • • The rating scale may be vague and unclear The form may ignore important aspects of job performance The rating form may contain irrelevant dimensions The forms may be too long and complex  Lack of rater preparedness • • The rater may not be trained PA activities.

m.m.30 p.m.30 a. 10. namely. Gian Jyoti Institute of Management & Technology Page92 .m.m. Afternoon and Night.30 a.WORKING HOURS AT FEDERAL MOGUL The factory runs round the clock in three shifts.). 2.30 p. To 2. to 6. (From 9 a. To 10.30 p. to 5 p.m.Morning.m. TIMINGS SHIFTS 6. Morning Shift Afternoon Shift Night Shift However the Non-production department works in a General Shift.30 p.m.

MEASURING EFFECTIVENESS OF APPRAISAL AT FEDERAL MOGUL Gian Jyoti Institute of Management & Technology Page92 .

Thereafter the ratings will be revealed to the appraisee and the form will be duly signed by all concerned. its findings can also be discussed at this stage. Gian Jyoti Institute of Management & Technology Page92 . The purpose of this session is to reinforce the feedback given in the counseling session and to discuss things beyond performance appraisal. Dissatisfaction with Appraisal: If any technicians/ team members is dissatisfied with his appraisal and has sufficient reason to believe that there is inaccuracy in the appraisal. 3. This feedback mechanism will work in the following manner: 1. This improvement statement will be noted down in the space provided in the form. The ratings assigned in the ranking meeting will not be changed during this review. he can take up the issue with manufacturing/production/HR manager. The HR Manager and the Function Head will briefly discuss the achievements and the shortcomings of the appraisee and will also discuss the special points raised in the ranking meeting. Improvement Statement: A written statement will be prepared by the technicians/ team members in consultation with the team leader & PMS Facilitator detailing how they intend to improve their performance in the next appraisal period. The team leader will appreciate the positive incidents and provide guidelines to improve the performance in the problem areas. The preliminary ratings will be finalized at this stage but will not be revealed to the appraisee as the rating might change after the ranking meeting. 2. the HR Manager and the Function Head. Review Session: The review session will be attended by appraisee. Personal Counseling Sessions: Every employee will have counseling session with his team leader on the appraisal in presence of the PMS Facilitator. 4. if any. The appraisers will discuss the achievements and shortcomings of the appraisee.PERFORMANCE APPRAISAL FEEDBACK SYSTEM AT FEDERAL MOGUL: Performance so appraised should be communicated to the employee and comprehensive feedback must be given so as to suggest & explain the ways to improve the performance and appreciate good work. Once the Employee Satisfaction Survey has been instituted in the factory. Employee’s performance on each Performance Appraisal criteria will be discussed and explained to the employee.

Plant Productivity based bonus 1. will be linked to the overall plant performance. PERFORMANCE BASED WAGE INCREMENT The yearly wage increments will be dependent on the individual performance of the technicians/ team members. Individual Performance based wage increments 2. PRODUCTIVITY BONUS The second component of performance reward system.Middle 70% .PERFORMANCE REWARD SYSTEM The compensation of the technicians/ team members will be linked to the performance by two components: 1. It will be decided as follows: • Flat rate of bonus for all technicians and team members on basis of Plant AU • Certain minimum acceptable AU level will attract zero productivity bonus • Every percentage point over such level leads to increasing productivity bonus Gian Jyoti Institute of Management & Technology Page92 . The wage increments will be decided as follows: • Decide Average Increment figure every year • Decide Individual Increment based on normal curve o 3 Bands of increments based on Performance Appraisal percentage score o Top 15% . Productivity Bonus.Bottom 15% Low Performers Average Performers High Performers • Middle Band gets the pre decided average increment • Top and bottom Bands get higher and lower increments respectively • Overall decided average maintained Rationale The performance based wage increment is based on the following rationale: • Results in permanent change in Income Level – Strong Motivator • Clear difference in pay level of consistent performers & non performers in long run • Helps recognize & retain the best talent 2.

The HR department will review the completed Performance Appraisal forms to filter out all forms where: a. Rating in any functional or behavioral competency is “Below Expectation” These shall be the employees who need training in various fields. Gian Jyoti Institute of Management & Technology Page92 . will be forwarded to the Training & Development department for further action. The list of the employees in need of training along with established trend. Overall Rating is “Below Expectation” and/or b. The following three step process will be followed to ensure that Performance Appraisal results are actively linked with Training & Development: 1. 3.Rationale The productivity bonus is based on the following rationale: • Links overall performance to reward • Promotes overall teamwork • Sets clear motivation for increasing productivity • Peer Pressure – Performers will automatically check non performers PERFORMANCE REWARD SYSTEM – SALIENT FEATURES • Enhances individual performance o Directly links Performance Appraisal results to Salary Structure o Permanent Change • Enhances performance as a unit by linking AU to bonus o Promotes coordination and instills a sense of responsibility o Temporary Chan LINKING PERFORMANCE APPRAISAL TO T&D The performance appraisal results so obtained will be used to determine the training and development needs of employees. if 13 people are scoring “Below Expectation” in the Making department. If more than 10 people exhibit the lack of same competency. if any. a mass training need exists. there exists a specific need for refresher training in the making concepts. 2. For example. The forms so filtered out will then be analyzed to establish any possible trend in lack of competencies.

Gian Jyoti Institute of Management & Technology Page92 .

CONCEPTUAL DEFINITION: Performance Appraisal is defined as the process of assessing the performance and Gian Jyoti Institute of Management & Technology Page92 . situation or a group: -Determination the frequency with which phenomenon occurs or with which it is associated with another: -Test a hypothesis of a casual relationship between variables STATEMENT OF THE PROBLEM: "Performance appraisal system and its effectiveness in an organization". Research may be done to -Gain familiarity with a phenomenon or to achieve new insights into it: -Portray accurately the characteristics of the particular individual.RESEARCH METHODOLOGY INTRODUCTION The word research refers to finding the truth about something through a systematic study.

Descriptive studies aim at portraying accurately the attitudes or views of a particular group of people towards any situation.progress of an employee or a group of employees on a given job and his / their potential for future development. The methodology followed in this study is detailed here. periodic and an important rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job. It consists of all formal procedures used in working Organizations and potential of employees OPERATIONAL DEFINITION: Performance Appraisal is the systematic. TYPE OF STUDY: The type of the study was descriptive in nature. Gian Jyoti Institute of Management & Technology Page92 . METHODOLOGY: To fulfill any task. it is necessary to follow a systematic method.

simple random sampling method was adopted. Gian Jyoti Institute of Management & Technology Page92 . 2. SAMPLING DESIGN: For the research. Also number of books and papers on quality of work life were used. manuals and existing records of the company. Secondary data: The secondary data was collected from journals. SAMPLE SIZE: All the employees in the organization are considered as universe. Hundred respondents were selected at random basis.SOURCE OF INFORMATION: The relevant data in the subject under study was collected from the following sources. 1. Primary data: These data were collected from the workmen of the company.

On requesting a lot they cooperated a bit. analysis of the data collected etc. The schedule was prepared to collect the data on areas.  Employees were not willing to fill the questionnaires and use to say that fill what ever you want. and Patiala.  The collection of data was one of the limitations faced. They can be regarding collection of data. which affect quality of work life.  Employees were not at all interested in giving their job detail or the personal detail. a pre-test was conducted with five respondents. SURVEY: Personal interviews were conducted with hundred workers out of the universe. During the pilot study it was evident that the workers were ready to give any information and they offered their full co-operation. PRE. The limitations of the study done by me can fit somewhere in the given categories.RESPONDENTS: The respondents were the workmen of Federal Mogul Goetze (India) Ltd. The tools used for data analysis include diagrams like Pie diagram. Based on the pre-test questionnaire was redrafted. Pre-tested questionnaire was used to collect information. descriptive or casual research. PILOT STUDY: Pilot study was conducted in order to check the feasibility of the study and availability of data. The investigator conducted personal interview with all the respondents chosen as sample.TESTING: In order to understand the effectiveness of the questionnaire designed.  Employees were not at all enthusiastic in providing the information. bar diagram etc. Bahadurgarh.  They were feeling insecure and didn’t believe that it was just a survey. LIMITATIONS OF THE STUDY: Every study has its own limitations whether it is an exploratory.  Time allotted for the survey was less Gian Jyoti Institute of Management & Technology Page92 . TOOLS FOR DATA COLLECTION AND ANALYSIS: The tool used for data collection was interview scheduled for workers (Questionnaire). forming of the questionnaire.

STUDY DESIGN Title of the study Performance appraisal system and its effectiveness in an organization Descriptive 1. 2. Primary data Secondary data Type of the study Sources of information Method of data collection Sample size Respondents Method of sampling Tools for data collection Tools for data analysis Sample survey Hundred Workers of FMGI. Simple random sampling 1. 2. Patiala. Questionnaire Personal interviews Bar diagram Pie diagram Gian Jyoti Institute of Management & Technology Page92 . 1. 2.

This was deliberately fixed because the preliminary study shows that the workers had the same aspirations and desire and they all had almost the same opinion. location. The profiles of the workmen were categorized according to age.PROFILE OF THE WORKMEN The study on the personal data is necessary for a research study.. experience & marital status. In the case of this study also investigator study the personal details of the workmen of the FMGI. Gian Jyoti Institute of Management & Technology Page92 . The details are given below. educational qualification. A sample was fixed as 100 from workmen category.

8 workers come under the category of 28-38 years. This can be represented with the help of following figure. FIGURE 2 DIST RIBUT ION OF RESPONDENT S BY AGE 18-28 0% 28-38 8% 38-48 28% 18-28 28-38 38-48 48-5 8 48-58 64% Gian Jyoti Institute of Management & Technology Page92 . This points out that a majority of 64 % were highly experienced workers. A maximum of 64 workers are in the age group of 48-58 years.TABLE 2 DISTRIBUTION OF RESPONDENTS BY AGE Age group 18-28 28-38 38-48 48-58 Total Distribution 0 8 28 64 100 Out of the 100 workers. and 28 workers come under the category of 38-48 years.

This can be represented by the following diagram.TABLE 3 DISTRIBUTION OF RESPONDENTS BY MARITAL STATUS Marital status Married Bachelor Total Distribution 100 0 100 From the above table it is clear that all the respondents were settled down with their family. FIGURE 3 DI ST RI BUT I ON OF RESPONDENT S BY MARIT AL ST AT US Bachelor 0% Married Bachelor Married 100% Gian Jyoti Institute of Management & Technology Page92 .

This is represented in the following figure. FIGURE 4 DI ST RIBUT ION OF RESPONDENT S BY LOCAT ION Corporation 10% Town 28% Village 62% Village T own Corporation Gian Jyoti Institute of Management & Technology Page92 . majority of workers. 10% were coming from corporation and 28% were coming from town.e.. 62% were coming from village. i. From the remaining 38%.TABLE 4 DISTRIBUTION OF RESPONDENTS BY LOCATION Location Village Town Corporation Total Distribution 62 28 10 100 Out of the 100 workers.

There were 8 diploma holders and 8PDC holders. This is illustrated in the following figure FIGURE 5 DIST RIBUT ION OF RESPONDENT S BY EDUCAT IONAL QUALIFICAT ION Post Graduate Below 10th 8% 10% Degree/Graduate 28% 10-12/Diploma 54% Below 10th 10-12/Diplom a Degree/Graduate Post Gradu ate Gian Jyoti Institute of Management & Technology Page92 .TABLE 5 DISTRIBUTION OF RESPONDENTS BY EDUCATIONAL QUALIFICATION Educational qualification Below 10th 10-12/Diploma Degree/Graduate Post Graduate Total Distribution 10 54 28 8 100 Among the workmen majority of 74% come under the category of 8-10. 10% of workers were educated below 8th standard.

DATA ANALYSIS & INTERPRETATION Gian Jyoti Institute of Management & Technology Page92 .

For how many yrs you are working with sonali? TABLE 6 Number of years 0-2 2-5 5-10 >10 Total Distribution 1 2 11 16 30 FIGURE 6 SERVICE T ENURE OF EMPLOY EES 0--2 2% 2--5 6% 0--2 2--5 > 10 56% 5--10 36% 5--10 >10 INTERPRETATION It can be seen that 56% of the workers at FMGI are working for more than 10 years whereas 36% are working for more than 5 yrs.Q1. Gian Jyoti Institute of Management & Technology Page92 .

2% of them have average satisfaction.Are you satisfied with your present job at sonalika? TABLE 7 Are you satisfied with the present job? Yes No Average Total Distribution 20 7 3 30 FIGURE 7 SAT ISFACT I ON WIT H T HE PRESENT JOB A v er a ge. 67% INTERPRETATION Job satisfaction is a major indicator of employee morale.Q2. 10% No. 23% Yes No A v er a ge Yes. 16% of the respondents are not satisfied with their job. 82% of the represents are satisfied with their job. This can be represented with the help of the following figure Gian Jyoti Institute of Management & Technology Page92 .

Gian Jyoti Institute of Management & Technology Page92 .Q3. Awareness of technique of Performance Appraisal being followed at FMGI among Employees TABLE 8 Awareness of technique of Performance Appraisal Yes No Total Distribution 21 9 30 FIGURE 8 AWARENESS OF T ECHNIQUE OF PERFORMANCE APPRAISAL No 28% Yes No Yes 72% INTERPRETATION 72% of the respondents agree that they are aware of performance appraisal system in their organization. But 28% of the respondents were of the view that they don’t have any knowledge about the appraisal system.

Gian Jyoti Institute of Management & Technology Page92 . Employees’ opinion as to the present appraisal system TABLE 9 Employees’ opinion as to Responses (in %) the present appraisal system Fully Satisfied Satisfied Can’t Say Dissatisfied Total 1 10 15 4 30 FIGURE 9 EMPLOY EES OPINION T O PERFORMANCE APPRAI SAL Fully Satisfied 2% Dissatisfied 30% Satisfied 24% Fu lly Satisfied Satisfied Can't Say Can't Say 44% Dissatisfied INTERPRETATION Majority of respondents do not possess any opinion about the present appraisal system.Q4. Whereas only 24% are satisfied and 30% are those who are completely dissatisfied.

Q5 Employee perception as to the frequency of appraisal TABLE 10 Employee perception as to the frequency of appraisal Once During The Service Period Continuous Never Can’t Say Total Response (in %) 2 24 0 4 30 FIGURE 10 EMPLOY EE'S PERCEPT ION T O T HE FREQUENCY OF APPRAISAL 0% 6% 2% Once During T h e Serv ice Period Continuou s Nev er 92% Can’t Say INTERPRETATION 92% of the respondents agree that they continuously go through the appraisal process. How Performance Appraisal affects the productivity of the employees Gian Jyoti Institute of Management & Technology Page92 . Q6.

Q7. 24% of the respondents feel that Performance Appraisal doesn’t affect their productivity. Who should do the appraisal? Gian Jyoti Institute of Management & Technology Page92 .TABLE 11 Opinion Positive Feedback Negative Feedback Indifferent Total Response 14 9 7 30 FIGURE 11 HOW DOES APPRAI SAL EFFECT T HE PRODUCT IVIT Y OF EMPLOY EES Indifferent 24% Negativ e Feedback 12% Positiv e Feedback 64% Positive Feedback Negativ Feedback e Indifferent INTERPRETATION 64% of the respondents feel that Performance Appraisal helps in increasing their productivity as they get motivated while 12% of the respondents feel that Performance Appraisal decreases their productivity.

subordinate. peer. or it can be self appraisal. or by consultant whereas 24% of the respondents feel that the appraisal would be done by their superior at work and 16% of the respondents feel that appraisal would be done by both the superior and peer. Does appraisal help in polishing skills and performance area? Gian Jyoti Institute of Management & Technology Page92 . Q8.TABLE 12 Options Superior Peer Subordinate Self Appraisal Consultant All of the above Superior + Peer Total Response ( in % ) 8 0 0 4 2 12 4 30 FIGURE 12 Who sh ould do th e appraisal? 16 Superior 24 0 8 Peer Subordinate Self Appraisal Consu ltant All of the abov e Superior + Peer 48 4 INTERPRETATION 48% of the respondents feel that performance appraisal can be done by their superior.

Q9.TABLE 13 Options Yes No Somewhat Total Response ( in % ) 21 5 4 30 FIGURE 13 DOES APPRAISAL HELPS I N POLISHI NG SKILLS AND PERFORMANCE AREA Somewhat 1 6% No 1 0% Y es 7 4% Y es No Som ewh at INTERPRETATION If the process of appraisal does not lead to the improvement of the skills and proficiency of the employees. Does personal bias creeps-in while appraising an employee TABLE 14 Options Response ( in % ) Gian Jyoti Institute of Management & Technology Page92 . Nearly 10 % of the respondents view that it does not serve this purpose and around 16 % were not able to respond as to whether it serve any such purposes or not. the very purpose of appraisal becomes illogical. In the survey conducted it was observed that nearly 74 % of the respondents agree that Performance Appraisal does leads to polishing the skills of the employees.

If given a chance. as huge as 82 % respond ended that personal bias do creep in while appraising an individual. it is inevitable to say that personal likings do not come in the process of appraisal. Hence. that is. Q10. Thus. when asked from among the sample size of 100 respondents. It is the extent to which the appraiser manages it so that it does not become very partial and bias. be it an objective way of appraising. would employees like to review the current appraisal technique? TABLE 15 Gian Jyoti Institute of Management & Technology Page92 . both the parties are human being. the one who is being apprised and the other who is appraising. there bound to be subjectivity involved.Yes No Total FIGURE 14 24 6 30 DOES PERSONAL BIAS CREEPS I N WHI LE APPRAISING AN EMPLOY EE No 18% Yes 82% Y es No INTERPRETATION In the process of appraising. Thus.

Options Yes No Can’t Say Total Response ( in % ) 16 2 12 30 FIGURE 15 IF GI VEN A CHANCE. Appropriate method of conducting the performance appraisal Options Ranking Method Response ( in % ) 2 Gian Jyoti Institute of Management & Technology Page92 TABLE 16 . Q11. WOULD EMPLOY EES LIKE T O REVIEW T HE CURRENT APPRAI SAL T ECHNIQUE Can't Say 24% Y es No 4% No Yes 72% Can't Say INTERPRETATION 72% of the respondents are in favor of reviewing the current appraisal technique whereas 24% of the respondents can’t find any answer while answering to this question.

Paired Comparison Critical Incidents MBO Assessment Centre 360 degree Total 0 5 4 2 17 30 FIGURE 16 APPROPRIAT E MET HOD OF CONDUCT I NG PERFORMANCE APPRAISAL 6% 0% 20% Ranking Method Paired Comparison Critical Incidents MBO 12% 4% Assessment Centre 360 degree 58% INTERPRETATION 58% of the respondents feel that the appropriate method of conducting the performance appraisal is through 360 degree approach whereas 20% of the respondents feel that critical incidents is the best method. Does performance appraisal leads to identification of hidden potential TABLE 17 Gian Jyoti Institute of Management & Technology Page92 . Q12.

Does the organization facilitate self-appraisal for workers? TABLE 21 Gian Jyoti Institute of Management & Technology Page92 .Options Yes No Total Response ( in % ) 26 4 30 FIGURE 17 DOES PERFORMANCE APPRAISAL LEADS T O IDENT IFI CAT I ON OF HIDDEN POT ENT IAL No 4% Y es No Yes 96% INTERPRETATION 96% of the respondents feel that performance appraisal leads to identification of the hidden potential. Q13.

What according to you is Performance Appraisal? TABLE 22 Gian Jyoti Institute of Management & Technology Page92 .Does the organization facilitate self-appraisal for workers? Yes No Total Distribution 12 18 30 FIGURE 21 DOES THE ORGANISATION FACILITATE SELFAPPRAISAL FOR WORKERS no 7 2% y es no y es 28% INTERPRETATION 72% of the workers have the opinion that the organization does not facilitate any programs for their self-improvement. Q14.

How important Performance Appraisal is in utilizing the optimal skills. The company thinks that performance appraisal gives a clear view of how the employees are performing and where they can improve. Q15. They think that performance appraisal helps in their personal development.Opinion Evaluation of employees Part of career development Total Distribution 18 12 30 FIGURE 22 OPINION ABOUT PERFORMANCE APPRAI SAL Pa r t of ca r eer 0% dev el opm en t 16% Ev alu ation of em ploy ees Ev a l u a t i on of em pl oy ees 84% Part of c areer dev elopm ent INTERPRETATION 84% feels that Performance Appraisal majorly revolves around evaluation of employees. knowledge and abilities of the employees? TABLE 23 Gian Jyoti Institute of Management & Technology Page92 . A performance appraisal system is a means for both setting and recognizing the achievement of goals or standards and also helps them in planning the employees own career development.

Opinion Very important Important Least important Not at all important Total Distribution 30 0 0 0 30 FIGURE 23 IMPORT ANCE OF PERFORMANCE APPRAISAL 100 80 60 40 20 0 Distribution Very im portant Im portant Least im portant Not at all im portant INTERPRETATION 100% people agree to the fact that Performance Appraisal is extremely important in utilizing the optimal skills. Performance appraisal motivates the employees to perform their best by utilizing their knowledge and abilities to fullest. knowledge and abilities of the employees.What do you consider as essential for performance appraisal of an individual? TABLE 24 Gian Jyoti Institute of Management & Technology Page92 . Q16.

their attitude towards seniors and colleagues and attendance. Q17.Opinion Experience Individual performance Individual potential Current performance Total Distribution 0 11 19 0 30 FIGURE 24 ESSENT I AL FOR PERFORMANCE APPRAISAL Current Experience performance 0% 0% Ex perience Individual potential 49% Indiv idual performance 51% Indiv idual perform ance Indiv idual potential Current perform ance INTERPRETATION 51% i. that.e. Individual performance is taken into account. has the employee met his given targets. the majority feels that the most essential thing for Performance Appraisal is an individual’s performance even more than the Team or Group performance.Are employees given an opportunity to make an input to their own performance appraisal? TABLE 25 Gian Jyoti Institute of Management & Technology Page92 .

Are the performance appraisal reports freely accessible and communicated to your employees? . The employees can document not only their achievements.Opinion Yes No Total Distribution 30 0 30 FIGURE 25 OPPORT UNIT Y GI VEN T O EMPLOY EES T O MAKE A N INPUT T O T HEIR OWN PERFORMANCE APPRAI SAL No 0% Y es Y es 100% No INTERPRETATION 100% employees are given opportunities to make inputs to their own Performance Appraisal by filling the employee Self-Assessment Questionnaire. but also the difficulties encountered while working. TABLE 26 Gian Jyoti Institute of Management & Technology Page92 Q18.

How Performance Appraisal helps in retention of employee? Majority of employees feel that effective Performance Appraisal helps a great deal in retention of employees. Only few team leaders think that performance appraisal reports are not so easily accessible. They get monetary benefits which enhance their confidence and motivate them to work towards organizational goal.Opinion Yes No Total Distribution 17 13 30 FIGURE 26 ARE APPRAISAL REPORT S FREELY ACCESSIBLE AND COMMUNICAT ED T O EMPLOY EES 0% No 17 % Y es Y es 83% No INTERPRETATION In Federal Mogul. Q19. the Performance Appraisal reports are freely available to the employee which is a good thing. Performance Appraisal helps in the personal development of the employees and thus the employees in Gian Jyoti Institute of Management & Technology Page92 . The employees can easily check what ratings they have got from their superiors and also what their weaknesses are and what are their strengths.

Q20. Few employees think that Performance Appraisal gives HR an insight about how the employee is performing. If given a chance what changes would you like to bring in the Performance Appraisal policies of your company? Almost all the employees feel that Performance Appraisal should be done on individual ground instead of team or group capabilities.  But they like the trend that the feedback of previous year’s Performance is given to them by their supervisors and also self-assessment performance appraisal system is there. Who are the persons involved in performance appraisal system of your company? Gian Jyoti Institute of Management & Technology Page92 People involved in the Performance Appraisal system are- . Q22. Q21. They think that self-assessment brings more motivation and they are happy that it is a part of Performance Appraisal. Q23. What do you like or dislike about the Performance Appraisal policy of your company?  Most employees dislike the fact that Performance Appraisal happens yearly and in that also the salary hike is minimal. The employees want that the performance appraisal cycle should be half. They would really like to change the Appraisal Cycle from yearly to half-yearly or quarterly.planning their own career development. What are the parameters that determine the Performance Appraisal of an individual? Most say that the major parameters that determine Performance of an individual are whether he has met the targets (CPM) or not. It depends a lot on customer satisfaction. Last but not the least they would like salary hikes and loyalty bonuses. Rest of the parameters is like their attitude towards seniors and colleagues and attendance. how they work in a team and also last years records also affect the Performance Appraisal system.yearly or quarterly and not yearly and the increments given should be more. They get no incentives to be loyally attached to the organization.

and the employees.Supervisor. RESEARCH FINDINGS Page92 Gian Jyoti Institute of Management & Technology .Group leader. Above all on a broader perspective we can call the HR Department which is responsible for Performance Appraisal system of a company.Process AVP Manager.

Study has found the following facts about the appraisal system of FEDERAL MOGUL GOETZE (INDIA) LTD. 6. Generally more educated employees tend to be more satisfied with their appraisal system probably due to their higher job aspirations 4. This shows that the company has failed in motivating those workers. Appraisal can be a motivating factor when it is linked with increased pay packets. Majority of respondents do not possess any opinion about the present appraisal system. 3. 2. It is normally done for new employees. Whereas only 24% are satisfied and 30% are those who are completely dissatisfied Awareness sessions about the performance appraisal (objectives and importance) are conducted in the organization. 7. 5. The findings show a positive attitude of people regarding appraisal system. 24% of the respondents feel that Performance Appraisal doesn’t affect their productivity. 56% of the workers at FMGI are working for more than 10 years whereas 36% are working for more than 5 yrs. Among the 16% of the respondents who are not satisfied with the present job. PATIALA: 1. Those who are educated beyond matriculation agree that they are quite aware of appraisal system in the organization. Financial incentives pay an important role in inducing employees to perform better Gian Jyoti Institute of Management & Technology Page92 . the job satisfaction is the least in the age group 38-58. 64% of the respondents feel that Performance Appraisal helps in increasing their productivity as they get motivated while 12% of the respondents feel that Performance Appraisal decreases their productivity. As against this 28% of the respondents were of the view that they don’t have any knowledge about the appraisal system..

Hence. 72% of the respondents are in favor of reviewing the current appraisal technique whereas 24% of the respondents can’t find any answer while answering to this question. Gian Jyoti Institute of Management & Technology Page92 . but also the difficulties encountered while working. If the process of appraisal does not lead to the improvement of the skills and proficiency of the employees. It is the extent to which the appraiser manages it so that it does not become very partial and bias. it is inevitable to say that personal likings do not come in the process of appraisal. The employees can document not only their achievements. In the survey conducted it was observed that nearly 74 % of the respondents agree that Performance Appraisal does leads to polishing the skills of the employees. Nearly 10 % of the respondents view that it does not serve this purpose and around 16 % were not able to respond as to whether it serve any such purposes or not. 11.8. When asked from among the sample size of 100 respondents. the very purpose of appraisal becomes illogical. 10. as huge as 82 % respond ended that personal bias do creep in while appraising an individual. 9. 100% employees are given opportunities to make inputs to their own Performance Appraisal by filling the employee Self-Assessment Questionnaire.

Gian Jyoti Institute of Management & Technology Page92 SUGGESTION & .

RECOMMENDATIONS 1. assessment centers which are more effective. 6. 5. Gian Jyoti Institute of Management & Technology Page92 . 8. There should be a review of job analysis. More transparency should be brought about in the appraisal system and it should be effectively link to the performance management system of the organization. It should bring more clarity to the goal and vision of the organization and provide more empowerment to the employees by providing them feedback regarding their appraisal 4. Combining the different methods of appraisal can minimize the element of biasness in an appraisal. Performance appraisal should not be perceived just as a regular activity but its importance should be recognized and communicated down the line to all the employees. The frequency of training program for the appraiser should be increased and these sessions should be made interactive. The awareness sessions for the employees/appraisees should be made more interactive and the views and opinion of the appraisees regarding appraisal should be given due consideration. Assistance should be sought from specialists for framing a proper appraisal system that suits the organization climate The employees who have excellent performance should be used as a mentor for other employees who would motivate others to perform better. New methods of appraisal should be adopted so that both appraiser and the appraisee take interest in the appraisal process. 9. job design and work environment based on the performance appraisal. onlineappraisal can be introduced 2. Use of modern appraisal techniques like 360o appraisal. 3. 7. Financial and non-financial incentives should be linked to the annual appraisal system so that employees would be motivated to perform better.

The appraisal system should cover all employees in the organization both white collar and blue-collar jobs. Some of the performance appraisals should be conducted by the top management so that they can understand the employees and their needs.10. 11. CONCLUSION Page92 Gian Jyoti Institute of Management & Technology . behavior better and to find out the loopholes.

That the promotion policy followed differs at different position and category. Uniformity has to be there in the implementation of promotion policy at all levels.  The promotion rules though defined need to be communicated to every employee before appraisal process is done and also justifies the promotion as a result of the appraisal. Also when performance goes down employee has to be given feedback and motivated to do better.The analysis and interpretation of data on study of performance appraisal and its effectiveness in an organization led to the following conclusions:  The result shows that most of the employees in the company have principally faith in the system which is a positive sign and leave scope for easy adoption. feedback is being provided to the employee though on a few occasion and Appraisal System focuses on the performance and future potential of the employee  The result of the appraisal is used for the overall development of the employee. Training needs of an individual employee are assessed from his performance rating in respect of various parameters based on which the performance of an employee is appraised. Gian Jyoti Institute of Management & Technology Page92 .  In Federal Mogul (India) Ltd.  The appraisal outcome has to be used frequently for the purpose of reward on performing well together with the feedback on the performance.

 The employees are made aware by the company regarding their specific roles to play at work. They are made clear about their assigned special duties and responsibilities towards accomplishment of work.  It is considered appropriate to appraise performance of an employee in manufacturing sector on annual basis. However, in service sector appraisal need to be on quarterly basis.

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BIBLIOGRAPHY

 Human Resource Management and Personnel Management By K. A. Aswathappa  Personnel and Human Resource Management By P. Subba Rao and V. S. P. Rao  Management By Harold Koontz & etal.  The Complete Guide to Performance Appraisal By Richard C Grote  Performance Management By Robert Bacal

 www.goetzeindia.com  federalmogulgoetzeindia.net  www.benifits.org  www.employer-employee.com  www.citehr.com  www.management-issues.com  www.e-days.com  www.performance-appraisal.com Gian Jyoti Institute of Management & Technology

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 www.businessballs.com/performanceappraisals.htm  http://www.bizhelp24.com/employment-and-personaldevelopment/employee-appraisal.html  www.hr-guide.com  performance-appraisals.org/  www.managementparadise.com

QUESTIONNAIRE
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For how many years you are working with FMGI ? a) 0-2 yrs b) 2-5 yrs c) 5-10 yrs d) >10 yrs Q2.Designation Years at Service Marital status Life Background Age Educational qualification Monthly Income : : : : : : : Q1. Awareness of technique of Performance Appraisal being followed at FMGI among Employees Yes No Q4. Employees’ opinion as to the present appraisal system Fully satisfied Satisfied Can’t say Dissatisfied Q5.Are you satisfied with your present job at FMGI? Yes No Average Q3. Employee perception as to the frequency of appraisal Gian Jyoti Institute of Management & Technology Page92 .

Once During the Service Period Continuous Never Can’t Say Q6. How Performance Appraisal affects the productivity of the employees Positive Feedback Indifferent Negative Feedback Q7. Appropriate method of conducting the performance appraisal Ranking Method Page92 Paired Comparison 360 degree Gian Jyoti Institute of Management & Technology . Does appraisal help in polishing skills and performance area? Yes No Somewhat Q9. Who should do the appraisal? Superior Subordinates Consultant Peer Self Appraisal All of the above Q8. would employees like to review the current appraisal technique? Yes No can’t say Q11. If given a chance. Does personal bias creeps-in while appraising an employee Yes No Q10.

MBO Assessment Centre Critical Incidents Q12. Are employees given an opportunity to make an input to their own performance appraisal? Yes No Gian Jyoti Institute of Management & Technology Page92 . How important Performance Appraisal is in utilizing the optimal skills. What do you consider as vital for performance appraisal of an individual? Experience Individual performance Current performance Individual potential Q17. What according to you is Performance Appraisal? Evaluation of employees Part of career development Q15. Does performance appraisal leads to identification of hidden potential Yes No Q13. knowledge and abilities of the employees? Very important Not at all important Least important Important Q16. Does the organization facilitate self-appraisal for workers? Yes No Q14.

. …………………………………………………………………………. …………………………………………………………………………. Q22... What do you like or dislike about the Performance Appraisal policy of your company? ………………………………………………………………………….Q18. Gian Jyoti Institute of Management & Technology Page92 . If given a chance what changes would you like to bring in the Performance Appraisal policies of your company? …………………………………………………………………………. What are the parameters that determine the Performance Appraisal of an individual? …………………………………………………………………………. Are the performance appraisal reports freely accessible and communicated to your employees? Yes No Q19. Q23.... How Performance Appraisal helps in retention of employees? ………………………………………………………………………….. Who are the persons involved in performance appraisal system of your company? …………………………………………………………………………. Suggestions and views ………………………………………………………………………….. Q20... …………………………………………………………………………. Q21.. …………………………………………………………………………. ………………………………………………………………………….

…………………………………………………………………………. Date --/--/-- Gian Jyoti Institute of Management & Technology Page92 ..

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