CONTENTS

CHAPTER NO. TOPICS PAGE NO.

CHAPTER (1) INTRODUCTION

(1.1) ABOUT JK TYRE
(1.2) VISION & MISSION
(1.3) FUTURE PLANS
(1.4) ORGANISATION STRUCTURE
(1.5) PERFORMANCE APPRAISAL SYSTEM
(1.6) PROCESS OF PERFORMANCE APPRAISAL
(1.7) METHODS OF PERFORMANCE APPRAISAL
(1.8) REVIEW OF LITERATURE
(1.9) OBJECTIVES OF THE STUDY
CHAPTER(2) RESEARCH METHODOLOGY
(2.1) THE STUDY
(2.2) SAMPLING PROCEDURE
(2.3) DATA COLLECTION
(2.4) DATA ANALYSIS
CHAPTER(3) RESULTS AND DISCUSSION
(3.1) RESULTS & GRAPHICAL REPRESENTATION
CHAPTER(4) FINDINGS & OBSERVATION
CHAPTER(5) SUGGESTION & RECOMMENDATION
CONCLUSION
REFERENCES
ANNEXURE








CHAPTER-1
INTRODUCTION


INTRODUCTION OF 1.K.TYRE & INDUSTRIES :
JK Tyre and Industries is a leading corporate entity which believes in excellence,
innovation and technology. The Company started manuIacturing tyres in 1977, with a
capacity oI 0.5 million tyres per annum and has grown multiIold over the years to its
present capacity oI more than 16 million tyres per annum. JK Tyre has Iive state-oI-
the art plants strategically located in India; in the States oI Rajasthan, Madhya Pradesh
and Karnataka. The Company is known Ior manuIacturing India`s leading tyre brands
- JK Tyre, Vikrant and Tornel in Mexico, Ior all categories oI Iour-wheelers.
As the 22nd largest tyre manuIacturer in the world, JK Tyre exports its tyres to over
80 countries across 6 continents and enjoys a premium brand status in various
sophisticated markets, including the Americas. The Company also outsources tyres
Irom China and other low cost countries Ior its international markets. JK Tyre
pioneered the Radial technology in India way back in 1977 and is India`s only tyre
manuIacturer, oIIering Iull range oI radial tyres Ior Cars, Jeeps, SUVs, LCVs, Truck
& Bus and Tractors. The Company manuIactures the entire range oI tyres Ior all Iour-
wheeler categories.
The Company is the No.1 player in OII the Road` (OTR) tyre segment and has
presence across India in almost all applications like Mining, Rock Excavating,
Quarrying, Dam Building and Port operations, and also manuIactures Ultra-Large
OTR tyres in its state-oI-the-art Iacility at Mysore.
With a distribution network oI over 4000 dealers and over 120 stocking points, JK
Tyre has leIt a mark across every Indian road treading into every nook and corner oI
the country. This includes 125 JK Tyre Steel Wheels` high-tech one-stop-tyre
shops, and over 20 JK Tyre Truck Radial Care Centres on major National highways
which operate on a 365 days/24 hours basis. JK Tyre is a preIerred Original
Equipment ManuIacturers (OEM) supplier and continues to be ranked No.1 by the JD
Power Asia PaciIic Tyre Customer SatisIaction Index Survey. JK Tyre` is the Iirst
and the only Indian Tyre Brand to be recognized as a 'Superbrand
The Company has consciously been modernizing and expanding its manuIacturing
Iacilities continuously to retain its edge in the market place. JK Tyre is a Total Quality
Management (TQM) driven company, having received all Iour ISO 9001, QS 9000,
ISO 14001 and TS 16949 accreditations. The Company was the Iirst tyre company in
the world to receive ISO/TS 16949:2000 certiIicate Ior its entire operations in one go.
This indeed is a true reIlection oI JK Tyre`s commitment to systems and quality
oriented approach.
JK Tyre is a technology driven company. Its R&D Centres, 'HASETRI (Hari Shankar
Singhania Elastomer and Tyre Research Institute) one oI its kind institute in Asia;
'Raghupati Singhania Centre oI Excellence Ior Tyre and Vehicle Mechanics, set up
jointly with IIT Madras, a successIul example oI Academia Industry Collaboration`;
and its Test Track at Chennai, keep the Company at cutting edge oI tyre technology. It
also has a technical collaboration with M/s Continental AG, Germany, the 4th largest
tyre manuIacturer in the world.
JK Tyre started a revolution by unveiling the nation's Iirst eco-Iriendly colored radials.
These Green Tyres were developed indigenously at JK Tyre's state-oI-the-art R&D
Iacilities HASETRI.
As a constructive partner in the communities in which it operates, JK Tyre has been
taking various actions to realize its commitment towards society. Over the years, JK
Trye has supported enumerable social and community initiatives in the Iields oI health
care, education, social, cultural and environmental projects. JK Tyre is committed to
the protection oI environment and has undertaken various projects Ior conservation oI
energy, water resources, as also by introduction oI 'Green products and processes.
With a strong belieI in 'People make the Organisation JK Tyre provides a
challenging and healthy work environment Ior the growth and IulIillment oI its people
With a vision to be amongst the most admired Companies in India, JK Tyre is striving
to surpass its own successes and achievements day aIter day.
VISION:
'To be amongst the most admired companies in India committed to excellence.
MISSION:
O Be a customer obsessed company.
O No.1 Tyre Brand in India.
O Deliver enhanced value to all stake holder.
O Most proIitable Tyre company in India.
O Enhance global presence through acquisition.
O Motivated and committed team development Ior high perIormance Organization.

CORE VALUES :
- Caring Ior people.
- Integrity including intellectual honesty, openness, Iairness & trust.
- Commitment to Excellence.








FUTURE PLANS :

India is Iast emerging as a global automobile hub particularly Ior small cars. It oIIers
immense opportunities Ior JK Tyre to grow its business both organically and
inorganically.

We have been constantly exploring ways oI increasing our presence in diIIerent world
markets, through alliances and acquisitions in tyre and related business. In all our
Endeavour`s, our core Iocus is on customer delight. Enlarging the customer base,
providing them with better quality oI services and more value added products, will
continue to be the key areas oI our thrust.

CUSTOMER SATISFACTION - OUR CREDO
Customer SatisIaction has always been our prime Iocus. We are indeed proud oI our
highly experienced and proIessional team Ior winning the trust oI customers and
building strong relationships with them.
Our 115 company owned stocking points serve over 4000 dealers across the country.
We have set up 130 JK Tyre Steel Wheels - a unique concept in car tyre retailing
which provides value added services like wheel balancing, alignment and tyre care to
customers.
Our Truck Radial Care Centers oIIer aIter-sales service Ior Truck/Bus Radials, which
operate on 365 days / 24 hours basis. A large number oI such centers have been set up
along all major National Highways.JK Tyre has been among the top two tyre
companies in respect oI Customer SatisIaction, as per JK Power Asia PaciIic Study,
Ior many years.
First Indian tyre company to introduce All Steel Truck & Bus Radials in India in 1999
Pioneered Radial technology in India by introducing passenger radials in 1977
First Indian tyre company to be recognized as 'SUPERBRAND' by Global
Advertising ProIessionals.

MILESTONES :
1976 First in India to produce steel belted Radial Tyres Ior passenger cars,
trucks and buses- J.K. Tyre Plant, Kankroli.


1980 First in world to make Steel Belted Radial Tyres Ior three wheelers- J.K.
Tyre Plant, Kankroli.


1984 First in India to produce white cement through dry process- J.K. White
cement. Gotan.


1985 First in India to produce Cathonic Dyeable Polyester Fibre- J.K.
Synthetics Ltd., Kota.
First in India to produce Nylon Tyre Cord based on Spin Draw
Technology- J.K. Synthetics Ltd., Kota.


1989 First in India to produce magnetic tapes with cobalt technology J.K.
magnetics, Surajpur.


1991 Banmore Tyre Plant (BTP) set-up with a capacity oI 5.7 lacs tyres p.a.


1992 R & D center set-up at HASTERI.


1994 India's Iirst T-Rated tyre launched
Banmore Tyre Plant (BTP) crossed 100 TPD.


1995 Mercedes Benz Launched on JK steel radials
First tyre manuIacturer in the world to get ISO 9001


1996 India's Iirst dual contact high traction steel radial- aquasonic launched.
Introduced steel wheels.


1997 Awarded the National Export Award Ior 96-97.
Vikrant Tyres (VTL) acquired.
India's Iirst H rated tyre launched.
Only Tyre manuIacturer to get 'E' Mark certiIication.
HASETRI became the Iirst research institute in Asia to get ISO 9002.


1998 First tyre manuIacturer in the world to get QS 9000.
Awarded CAPEXIL's highest export award Ior 1997-98.


1999 Synergy with VTL in procurement, marketing and production Ilexibility.
Completion oI state oI the art modernisation oI truck radials.
JK Tyres ranked 16th largest Tyre Company in the world.
ISA - 14000 accredition Ior environment & saIety.


2000 JK introduced National Go-Karting Championships.


2001 Recieved CAPEXIL award.
J.K. Industries recieved FOCUS LAC export award Ior the year 1999-
2000.
Commendation CertiIicate oI CII Exim.
IInd National Go-Karting Championships held.


1.K.TYRE & INDUSTRIES, BANMORE PLANT :
BANMORE TYRE PLANT started its production in 1991 and the Iirst tyre rolled out
25
th
march 1991.The initial capacity oI the plant was 4.5 mt/ day. Radial tyre
production in passenger and light commercial vehicle segment was added in 1996.
The plant is continuously improving its capacity, particularly in radial segment.
Present radial capacity is 9000 tyre/ day. Total investment is in last three years Ior in
capacity in radial tyre is apporx Rs117 crore. The expencesion oI radial plant is still
on.
Our customer`s base virtually covers the entire Original equipment manuIactures
|OEM| in India together with replacement market Ior Iour wheeler, deIence and state
transport undertaking. Besides India, we have worldwide customers base exporting to
more then 60 countries.
Plant manages their process through documented procedures based upon
ISO/TS16949QMS and ISO 14001 EMS |Ior plant only|. These described only all the
activities in structured manner to be perIormed at all BU & SSU level. These
procedures are audited at least twice in six months, once each by internal and external
auditors. These audits ensure that systems are eIIectively Iunctioning and continual
improvement are achieved.
BANMORE TYRE PLANT has started its TPM (Total Productive Maintenance)
journey Irom October 2005.





ORGANIZATION STRUCTURE :

PERFORMANCE APPRAISAL :
A perIormance appraisal system Iunctions as deIinitions oI perIormance. PerIormance
appraisal is a method oI evaluating the behaviour oI employees in the work spot,
including both qualitative and quantitative aspects oI job perIormance indicates how
an individual is IulIilling the job demands and it is always in terms oI results. Under
perIormance appraisal not only the perIormance oI an employee but also his potential
Ior development is evaluated. 'PerIormance Appraisal is a systematic description oI
an employee`s job relevant strengths and weaknesses.
A major concern oI every organization should be to contribute positively towards the
achievement oI its objective. Organizational eIIectiveness is oIten equated with
managerial eIIiciency. A manager can ensure organizational eIIectiveness only by
guaranteeing the Iull utilization oI human resource available through individual
employees under his guidance. Hence, it is always required Ior a manager to monitor
and measure the perIormance oI employees.
Moreover, since the organization exists to achieve the goals, the degree oI success that
individual employees have in reaching this individual goal is important in determining
organizational eIIectiveness. The assessment oI how successIul employees have been
at meeting their individual goal to comes a critical part oI human resource
management. This leads to concept oI perIormance appraisal.
In perIormance appraisal or merit rating reIers to all the Iormal procedures used in
working organizations to evaluate the personalities and contributions and potential
group members. In appraisal system the employee`s merits like initiatives,
dependability, personality etc., are compared with others and ranked to rated.
Appraisals might be based on the criteria oI employee`s skills, educational
qualiIications, knowledge, abilities to delegate plans, supervise, assume responsibility,
exercise leadership, personal qualities, creativity, decision making and interpersonal
skills.
An appraisal motivates an employee into increased eIIort aimed at enhancing the
outcome oI the assessment. It tells an employee what set oI activities or what qualities
are considered desirable by the organization.
It is the systematic method oI obtaining, analyzing & recording inIormation about an
employee that is needed:
O For eIIective management oI business.
O By the manager to help him improve the jobholders perIormance and plan his
career.
O By the jobholder to assist him to evaluate his own perIormance and develop
himselI. In perIormance planning and review, the Reporting Manager is expected
to set targets or tasks Ior the appraise in the beginning oI the year. In the middle oI
the year, the appraise Iills the selI-appraisal Iorm, indicating the extent which the
target or task has been completed, the diIIiculties Iaced and the suggestions Ior
improvement. At the end oI the year, there is the annual review and targets/tasks
set Ior the next year. Both in the mid-year review and annual review, the selI-
appraisal is supplemented by a perIormance review, discussion, the problems are
discussed and the appraiser is given Ieedback on how he is doing. The appraisal
system is an instrument Ior improving the work culture by convincing employees
that their career growth is linked with the perIormance oI the company.

We can brieIly say that perIormance appraisal systems are necessities to assess
perIormance at regular intervals with consistency to study improvements, deviation
and to take corrective actions to bride gaps and improve perIormance over a period oI
time.






What is the Purpose of Performance Appraisal ?
O ProIessional development such as identiIying strengths and weaknesses in
perIormance, implementing strategies Ior improvement.
O Determining organizational training and development needs.
O Making and validating administrative decisions like pay, promotion, placement,
and termination.etc.
O IdentiIying systemic Iactors that are barriers to, or Iacilitators oI, eIIective
perIormance.
O It guarantees useIul inIormation about employees and the nature oI their duties.

Objectives of Performance Appraisal :

O To review the perIormance oI the employees over a given period oI time.
O To judge the gap between the actual and the desired perIormance.
O To help the management in exercising organizational control.
O Helps to strengthen the relationship and communication between superior
subordinates and management employees.
O To diagnose the strengths and weaknesses oI the individuals so as to identiIy the
training and development needs oI the Iuture.
O To provide Ieedback to the employees regarding their past perIormance.
O Provide inIormation to assist in the other personal decisions in the organization.
O To judge the eIIectiveness oI the other human resource Iunctions oI the
organization such as recruitment, selection, training and development.
O To reduce the grievances oI the employees.
O To identiIy those who are perIorming their assigned task well and those who are
not and the reason Ior such perIormance.
O To create and maintain satisIactory level oI perIormance.
O To ensure organizational eIIectiveness.
O To diagnose the training and development need oI the Iuture.

PROCESS OF PERFORMANCE APPRAISAL :
ESTABLISHING PERFORMANCE STANDARD :
The Iirst step in the process oI perIormance appraisal is the setting up oI the standards
which will be used to as the base to compare the actual perIormance oI the employees.
This step requires setting the criteria to judge the perIormance oI the employees as
successIul or unsuccessIul and the degrees oI their contribution to the organizational
goals and objectives. The standards set should be clear, easily understandable and in
measurable terms. In case the perIormance oI the employee cannot be measured, great
care should be taken to describe the standards.
COMMUNICATING THE STANDARDS :
Once set, it is the responsibility oI the management to communicate the standards to
all the employees oI the organization. The employees should be inIormed and the
standards should be clearly explained to the. This will help them to understand their
roles and to know what exactly is expected Irom them. The standards should also be
communicated to the appraisers or the evaluators and iI required, the standards can
also be modiIied at this stage itselI according to the relevant Ieedback Irom the
employees or the evaluators.
MEASURING THE ACTUAL PERFORMANCE :
The most diIIicult part oI the PerIormance appraisal process is measuring the actual
perIormance oI the employees that is the work done by the employees during the
speciIied period oI time. It is a continuous process which involves monitoring the
perIormance throughout the year. This stage requires the careIul selection oI the
appropriate techniques oI measurement, taking care that personal bias does not aIIect
the outcome oI the process and providing assistance rather than interIering in an
employees work.
COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE :
The actual perIormance is compared with the desired or the standard perIormance.
The comparison tells the deviations in the perIormance oI the employees Irom the
standards set. The result can show the actual perIormance being more than the desired
perIormance or, the actual perIormance being less than the desired perIormance
depicting a negative deviation in the organizational perIormance. It includes recalling,
evaluating and analysis oI data related to the employees` perIormance.
DISCUSSING RESULTS :
The result oI the appraisal is communicated and discussed with the employees on one-
to-one basis. The Iocus oI this discussion is on communication and listening. The
results, the problems and the possible solutions are discussed with the aim oI problem
solving and reaching consensus. The Ieedback should be given with a positive attitude
as this can have an eIIect on the employees` Iuture perIormance. The purpose oI the
meeting should be to solve the problems Iaced and motivate the employees to perIorm
better.
DECISION MAKING :
The last step oI the process is to take decisions which can be taken either to improve
the perIormance oI the employees, take the required corrective actions, or the related
HR decisions like rewards, promotions, demotions, transIers etc.



How to conduct a performance appraisal ?
The Iollowing Iive-step approach to conducting a systematic perIormance appraisal is
recommended:
1. IdentiIy key perIormance criteria
2. Develop appraisal measures
3. Collect perIormance inIormation Irom diIIerent sources
4. Conduct an appraisal interview
5. Evaluate the appraisal process.

Step 1: Identify key performance criteria :
Perhaps one oI the most challenging aspects oI setting up a perIormance appraisal is
deciding what to assess. In essence, Iour key dimensions oI perIormance should be
considered in a perIormance appraisal.
Key Dimensions of Performance:
Competencies : Knowledge, skills, and abilities relevant to perIormance
Behaviors : SpeciIic actions conducted and / or tasks perIormed
Results / outcomes : Outputs, quantiIy able results, measurable outcomes
and achievements, objectives attained.
Organizational citizenship
behavior : Actions that are over and above usual job
responsibilities

To ensure that the perIormance criteria are relevant to work practice and acceptable to
appraisers and workers:
i. Base the perIormance criteria on an up-to-date job description
ii. Develop criteria in consultation with appraisers and workers
Step 2: Develop appraisal measures :
Once clear and speciIic perIormance criteria have been developed, the next step is to
decide how to assess workers` perIormance. It is recommended that a structured and
systematic approach is taken to assessing perIormance. Problems that arise when an
unstructured 'blank sheet approach is used include:
Increased chance oI appraiser errors
Knowledge, skills and abilities most critical to job perIormance may be overlooked
Reduced consistency between appraisers
Perceptions oI 'subjectivity in evaluations, which may in turn, reduce workers`
satisIaction with, and acceptance oI, appraisals.
Step 3: Collect performance information from different sources :
Once the appraisal measures are developed, the next step involves collection oI
accurate perIormance inIormation. A common trap is to begin noting observations oI
workers just beIore conducting appraisals. This is likely to give an inaccurate picture
oI a worker`s perIormance. Ideally, workers` perIormance should be observed in a
systematic way over time .This method ensures the accuracy oI inIormation about
their perIormances.
Traditionally, it has been the sole responsibility oI managers / supervisors to assess
perIormance. However, other organizational members can be a valuable source oI
inIormation as they are likely to have exposure to diIIerent aspects oI a worker`s
perIormance. This approach is known as 360-degree Ieedback. For instance,
coworkers can provide valuable inIormation on teamwork skills, and subordinates can
provide useIul inIormation on leadership style.
Five diIIerent sources oI perIormance appraisal inIormation are considered here:
i. Manager / supervisor appraisals
ii. SelI appraisals
iii. Coworker appraisals
iv. Subordinate appraisals
v. Client appraisals.
Step 4: Conduct an appraisal interview :
The next step in a perIormance appraisal is to conduct the appraisal interview. The
two central purposes oI the appraisal interview are to:
ReIlect on past perIormance to identiIy major achievements, areas that require
Iurther development, and barriers / Iacilitators to eIIective perIormance
IdentiIy goals and strategies Ior Iuture work practice.
Step 5: Evaluate the appraisal process :
As with any organizational system, the perIormance appraisal process should undergo
regular review and improvement.







APPROACHES OF PERFORMANCE APPRAISAL :
Traditional approach:
Traditionally, PerIormance appraisal has been used as just a method Ior determining
and justiIying the salaries oI the employees. It begins to use as a tool Ior determining
rewards and punishments Ior the past perIormance oI the employees.
This approach was a past oriented approach which Iocused the employees i.e. during a
past did not consider the development aspect oI the employee perIormance. The
primary concern oI the traditional approach is to judge the perIormance oI the
organization as a whole by the past perIormance oI its employees. ThereIore this
approach is also called as the overall approach.
Modern approach.
The modern approach to perIormance development has made the perIormance
appraisal process more Iormal and structured. Now, the perIormance Appraisal is
taken as a tool to identiIy better perIorming employees training needs, career
development. Paths, rewards and bonuses and their promotions to the next level. The
modern approach to perIormance appraisal includes a Ieedback process that helps to
strengthen and subordinates and improves communication through the organization.




METHODS,TECHNIQUES FOR APPRAISING PERFORMANCE
TRADITIONAL METHODS
1. Straight Rank Method:
It is the oldest & simplest method oI perIormance appraisal, by which the man and
his perIormance are considered as an entity by the rater. Then ranking oI a man in
work group is done against may also do that oI another member oI a competitive
group by placing him as one or two or three in total group, i.e. persons are tested in
order oI merit and place in a simple grouping.

2. Man -To-man Comparison Method:
The USA army during the FIRST WORLD WAR used this technique. By this
method, certain Iactors are selected Ior the purpose oI analysis and a scale is
designed by the rater Ior each Iactor. A scale oI man is also created Ior each
selected Iactor. The each man to be rated is compared with in the scale, and certain
scores Ior each Iactor are awarded to him. This method is used in job evaluation,
and is known as the Iactor comparison method.

3. Grading Method:
Under this system, the rater considers certain Ieatures and marks them accordingly
to a scale. The selected Ieatures may be analytical ability, cooperativeness,
dependability, selI-expression, job knowledge, judgment, leadership and
organizing ability, etc. they may be
A Outstanding,
B Very good,
C Good or average,
D Fair,
E Poor.
The actual perIormance oI an employee is then compared with these grade deIinitions;
such type oI grading is done in semester examinations and also in the selection oI
candidates by the public service commissions.
4. Graphic or Linear Rating scale:
This is most commonly used method oI perIormance appraisal. Under it, a printed
Iorms one oI each person to be rated. According to juices, these Iactors are
employee characteristics ad employee contribution. In employee characteristics
are included such qualities and initiative, leadership, cooperativeness,
dependability, industry, attitude, enthusiasm, loyalty, creative ability,
decisiveness, analytical ability, emotional ability and co-ordination. In the
employee contribution are quantity and quality oI work, the responsibility
assumed speciIic goals achieved regularity oI attendance, leadership oIIered,
attitude towards supervisors and associates, versatility etc.The rating scale method
is easy to understand and easy to use, and permits a statistical tabulation oI scores.
A ready comparison oI scores among the employees is possible.

5. Forced Choice Description Method :
This method was evolved aIter great deal oI research conducted Ior military
services during World War II. It attempts to correct a rater`s tendency to give
consistently high or consistently low ratings to all employees. The use oI this
method calls Ior objective reporting and minimum subjective judgment. Under
this method the rating elements are several sets oI pair phrases or adjectives
(usually sets oI Iour phrases two oI which are positive, two negative) relating to
job proIiciency Or personal qualiIications. The rater is asked to indicate which oI
the Iour phrases is most and least descriptive oI the employee.

6. Forced Description Method:
Joseph TiIIin evolved this method aIter statistical work. This system is used to
eliminate or minimize rater`s bias, so that all personnel may not be placed at the
higher end or at the lower end oI the scale. It requires the rater to appraise an
employee according to a predetermined distribution scale. Under this system, it is
assumed that it is possible and desirable to rate only to Iactors, viz., job
perIormance and promotability. For this purpose, a Iive point perIormance scale is
used without any descriptive statement. Employees are placed between the two
extremes oI good` and bad` job perIormance.
.Check List:
Under this method, the rater does not evaluate employee perIormance; he supplies
report about it and the personnel department does the Iinal rating. A series oI
questions are presented concerning an employee to his behaviour. The rater, the
checks to indicate iI the answer to a question about an employee is positive or
negative. An example oI check list is given below:

1. Is the employee really interested in his job? Yes/No
2. Is regular on his job? Yes/No
3. Does he Iollow instructions properly? Yes/No
4. Is he always wiling to help other employees? Yes/No
5. Does he ever make mistakes? Yes/No

8. Free Easy Method:
Under this method, the supervisor makes a Iree Irom, open-ended appraisal oI an
employee in his own words and puts down his impressions about the employee.
He takes not oI these Iactors.
a. General Organization and planning ability.
b. Job knowledge and potential.
c. Employee characteristics and attitudes.
d. Understanding and application oI company policies and procedures.
e. Production, quality and cost control.
I. Physical conditions.
g. Development needs Ior Iuture.

. Group Appraisal Method:
Under this method, an appraisal group rates employees, Consisting oI their
supervisor and three or Iour other supervisors who have knowledge oI their
perIormance. The supervisor explains to the group the nature oI his subordinates
duties. The group then discusses the standards oI perIormance Ior that job, the
actual perIormance oI the job holder, and the causes oI their particular level oI
perIormance, and oIIers suggestions Ior Iuture improvement, iI any.

10.Field Review Method :
Under this method, trainer employees Irom the personnel department interview
line supervisors to evaluate their respective subordinates. The appraiser is Iully
equipped with deIinite test questions, usually memorized in advance, which he
puts to the supervisors. The supervisor is required to give his opinion about the
progress oI his subordinates, the level oI the perIormance oI each subordinate,
his weakness, good points, outstanding ability, and promotability, and the
possible plans oI action in cases requiring Iurther consideration.








MODERN METHOD OF APPRAISAL:
Appraisal by Results Management by Objectives(MBO):
This method emphasizes the value oI the present and the Iuture instead oI that oI the
past, and Iocuses attention on the results that are accomplished and not on personal
traits or operational methodology. An employee is not judged in terms oI operational
methodology, or in terms oI initiative, cooperativeness, attitude, emotional stability, or
any other human quality, but on the basis oI the achievement oI the targets that have
been set. This method is largely applied to technical, proIessional, supervisory or
execute personnel and not to the hourly paid workers because their jobs are usually
too restricted.
Under MBO programme, an employee and his supervisory meet and together deIine,
establish and set certain goals or objectives which the employee would attempt to
achieve within the period oI, prescribed time.
It consists oI Iive basic steps:
O Set organizational goals i.e., establishment oI an organization wide strategy and
goals.
O Joint goals setting i.e., establishment oI short term perIormance targets between
the management and the subordinate in a conIerence between them.
O PerIormance review i.e., Irequent perIormance review meetings between the
manager and the subordinate.
O Set check points i.e., establishment oI major check points to measure progress.
O Feed back.

Assessment Center Method:
Under this method, many evaluations join together to judge employee perIormance in
several situations with the use oI a variety oI criteria. The purpose oI this method was
end is to test the candidates in a social situation using a number oI assessors and a
variety oI procedures. The most important Ieature oI this is job related simulations.

Human Asset Accounting Method:
This method reIers to activity devoted to attaching money estimates to the value oI a
Iirm`s internal human organization and its external customer goodwill. II able, well
trained personnel leave a Iirm, the human organization is worthless iI they join it, its
human assets are increased. II distrust and conIlict prevail, the human enterprise
devalued. II team work and high moral prevail, the human organization is a very
valuable asset.

Behaviorally Anchored Rating Scales(BARS):
This is a new technique Ior appraisals. It provides better, more equitable appraisals as
compared to other techniques. Though bars technique is more time consuming and
expensive than other appraisal tools. Since bars is done by person`s expert in the
technique, the results are suIIiciently accurate. It has got certain advantages:
O More accurate
O It clearly clariIies what we extremely good perIormance, average perIormance &
so Iorth.
O More useIul in providing Ieedback to the people being appraised.
O Helps in making dimensions more independent iI one another.

ESSENTIALS OF A GOOD PERFORMANCE APPRAISAL SYSTEM.
1.Documentation : Means continuous noting and documenting the
perIormance. It also helps the evaluations to
give a prooI and the basis oI their ratings.
2.Standards/Goals : The standards set should be clear, easy to
understand, achievable, motivating time bound
and measurable.
3.Practical and simple Iormat : The appraisal Iormat should be simple,clear, Iair
and objective.
4.Evaluation technique : An appropriate evaluation technique should be
selected, the appraisal system should be
perIormance based and uniIorm.The criteria Ior
evaluation should be based on observable and
measurable characteristics oI the behavior oI the
employee.
5.Communication : Communication is an indispensible part oI the
perIormance appraisal process. The desired
behavior or the expected results should be
communicated to the employees as well as the
evaluators. Modern communication system
motivates the employees to actively participate
in the appraisal process.
REVIEW OF LITERATURE :
Fletcher C, Performance appraisal and management, November 4, 2001:
PerIormance appraisal has widened as a concept and as a set oI practices and in the
Iorm oI perIormance management has become part oI a more strategic approach to
integrating HR activities and business policies. As a result oI this, the research on the
subject has moved beyond the limited conIines oI measurement issues and accuracy oI
perIormance ratings and has begun to Iocus more oI social and motivational aspects oI
appraisal. This article identiIies and discusses a number oI themes and trends that
together make up the developing research agenda Ior this Iield. It breaks these down
in terms oI the nature oI appraisal and the context in which it operates. The Iormer is
considered in terms oI contemporary thinking on the content oI appraisal (contextual
perIormance, goal orientation and selI awareness) and the process oI appraisal
(appraiserappraisee interaction, and multi-source Ieedback). The discussion oI the
context oI appraisal concentrates on cultural diIIerences and the impact oI new
technology.
David A. Waldman, Predictors of Employee Preferences for Multirater and
Group-Based Performance Appraisal, 1: This study conceptualizes and
measures user preIerences Ior

360-degree appraisals and group-level perIormance
management

(PM). Users are deIined as either recipients oI PM processes

or those
whose job it is to administer the process. Aspects

oI individual users, their work
design, and current appraisal

context were used to predict preIerences..

Predictors
explained signiIicant amounts oI variance in user

preIerences, especially those
pertaining to group-level PM.

Practical implications are suggested with regard to
collecting

and using user preIerences. In addition, suggestions Ior Iuture

research are
oIIered concerning the need to examine a broad

range oI users in diIIerent
organizational settings and to measure

actual system design Ieatures and their
eIIectiveness.
Taylor Cox, Differential Performance Appraisal Criteria, 186 :
Gregory H. Dobbins, A Contingency Approach to Appraisal Satisfaction, 10:

OB1ECTIVES OF THE STUDY :
Primary Objective
O To assess the level oI awareness oI perIormance appraisal system in the
organization.

Secondary Objectives
O To Iind out the eIIectiveness oI the perIormance appraisal system in the
organization.
O To identiIy the attitude oI employees about perIormance appraisal system in the
organization.
O To identiIy on what basis employee`s perIormance are assessing.
O To know the procedure/process oI PerIormance Appraisal.
O To know the methods oI perIormance appraisal.












CHAPTER-2
RESEARCH METHODOLOGY










Research Methodology:
The research has been developed on the basis oI the survey. Research is something
which gives at the end oI the day the analyzed and a concrete result oI the report.
Concrete means some research which is supported by some authentic prooI. The
research methodology is a systematic way to solve the problem and it is an important
component oI the study without which researcher may not be able to obtain the Iacts
and Iigures Irom the employees.
Research Design :
Research design is purely and simply the Irame work or plan Ior a study that guides
the collection analysis oI the data. In this study select the research design is
descriptive research.
Sampling :
Sampling units : J K Tyre OIIice,BANMORE
Element : EMPLOYEES/PEOPLE
SAMPLE SIZE : 50 RESPONDENTS

Data Collection Techniques :
The required data is collected both Irom primary as well as secondary sources.
Primary Sources: The primary data is collected with the help oI questionnaires,
which consists oI ten questions each. The questionnaires are chosen because oI its
simplicity and reliability. Researcher can expect straight answers to the questions. The
respondents are inIormed about the signiIicant oI the study and requested to give their
Iair opinions.
Secondary Sources: Secondary data is the data, which is collected and complied Ior
diIIerent purposes, which are used in research Ior this study. Secondary data is
collected through the documents provided by the personnel department. The
documents include personnel manuals, company`s documents, records, reports,
journal, etc.



Method used for analysis of study :
The methodology used Ior this purpose is Survey and Questionnaire Method. A
questionnaire technique will be used in order to obtain data and employees will be
asked to give the answers oI questions in accordance to their best
knowledge.

Analysis of Data :
AIter the data have been collected, the researcher turns to the task oI analyzing them.
The analysis oI data requires a number oI closely related operations such as
establishment oI categories, the application oI these categories to raw data through
coding, tabulation and then drawing statistical inIerences. Thus researcher should
classiIy the raw data into some purposeIul and usable categories. In the process oI
analysis, relationships or diIIerences supporting or conIlicting with original or new
hypotheses should be subjected to tests oI signiIicance to determine with what validity
data can be said to indicate any conclusion.
Interpretation :
The interpretation is done on the basis oI the analyzed data and also some
recommendations are given to Iill the loophole (a way oI avoiding something
stipulated by a law or contract) oI the actual scenario.















CHAPTER-3
RESULTS AND DISCUSSION









DATA ANALYSIS AND INTERPRETATION
Research is conducted Ior Iinding the solution oI the problem. So to Iind the solution
oI the problem data analysis and interpretation is must. There are some questions
related to this research to interpret the result. The sample size in this study consisted
oI 50 individuals and data analyzed Irom the response oI these 50 individuals.
1. ARE YOU AWARE OF THE PERFORMANCE APPRAISAL SYSTEM IN
YOUR ORGANIZATION ?

The basic purpose oI this question is to know about how many people are aware oI
the perIormance appraisal system.









Analysis:-
This table shows that all the 50 individuals were aware of performance
appraisal system in the organization.
100
0
yes
no
RESPONSES NO.OF RESPONSES OF RESPONSES
Yes 50 100
No 0 0
Total 50 100
2.DO YOU THINK PERFORMANCE APPRAISAL IS NEEDED IN A
COMPANY ?
The basic purpose oI this question is to know about how many people think that
perIormance appraisal is needed/required in a company.












Analysis:-
This chart shows that almost all the employees thought that the
performance appraisal is needed in a company.
100
0
yes
no
RESPONSES NO.OF RESPONSES OF RESPONSES
Yes 50 100
No 0 0
Total 50 100
3.HOW LONG ONCE THEY CONDUCT THE PERFORMANCE
APPRAISAL?
The basic purpose oI this question is to know about the periodic evaluation oI
perIormance appraisal .












Analysis:-
The above table clearly shows that from a sample size of 50 respondents, 34
number of employees opinion is that the performance appraisal is conduct
once in every year, while remaining 16 number of employees opinion is that
the performance appraisal is conduct once in two year.

32
once ln every year
once ln Lwo year
CATEGORY NO.OF RESPONSES OF RESPONSES
Once in every year 34 68
Once in two year 16 32
Total 50 100
4. ON WHAT BASIS THEY ARE ASSESSING YOUR PERFORMANCE ?

The basic purpose oI this question is to know that on what basis the superior assess
the employees perIormance.












Analysis:-
Above 16 employees responded that, the superior assess their performance due to
Actual Performance, 24 number of employees said due to Experience and
remaining 10 employees is due to all the above.
32
4
20 acLual performance
experlence
all Lhe above
OPTIONS NO.OF RESPONSES OF RESPONSES
Actual
performance
16 32
Qualification 0 0
Experience 24 48
All the above 10 20
Total 50 100
5.DO YOU THINK THAT A GOOD WORKMEN GETS MOTIVATED WITH
FREQUENT PERFORMANCE APPRAISAL?ARE YOU SATISFIED WITH
THIS ?









Analysis:-
A majority of 44 number of employees said that a good workman gets motivated
with frequent Performance Appraisal and 6 number of employees are not
satisfied with above.

12
yes
no
RESPONSES NO.OF RESPONSES OF RESPONSES
Yes 44 88
No 6 12
Total 50 100
6.ARE YOUR ANNUAL INCREMENTS/PROMOTIONS BASED ON YOUR
PERFORMANCE ?
This question was asked to the employees to know iI the annual
increments/promotions are based on their perIormance or not.







Analysis:-
3 number of the respondents say that the annual increments/promotions are
based on their performance. number of the respondents say that the annual
increments/promotions are not based on their performance while remaining 2
respondents can`t say or their answers are inapplicable.

1
4
yes
no
canL say
RESPONSES NO.OF RESPONSES OF RESPONSES
Yes 3 8
No 18
Can`t say 2 4
Total 50 100
.TO WHAT EXTENT DO TRAINING & DEVELOPMENT PROGRAMMES
HELP IN IMPROVING YOUR PERFORMANCE ?
This question was asked to the employees to know how Iar the training and
development programme is helping the employees to learn and work better.

Particulars No. of respondents Percentage of
respondents
To great extent 11 22
To some extent 35 0
To very little extent 4 8
Total 50 100



Analysis:-
11 no.of respondents say that the training and development programs help to a
great extent to improve their performance, while 35 no. of respondents say that it
help to some extent to improve their performance & remaining 4 respondents say
that it help to a very little extent to improve their performance.
22
0

Lo greaL exLenL
Lo some exLenL
Lo very llLLle exLenL
8.DO YOU HAVE A GOOD RELATIONSHIP WITH APPRAISER AFTER
PERFORMANCE APPRAISAL ?
This question was asked to the employees to know the good relationship between the
appraiser and employees aIter perIormance appraisal.

Analysis:
A Majority of 44 respondents have the good relationship with appraiser after
Performance appraisal while rest of 6 respondents is not having a good
relationship with appraiser after Performance appraisal.

12
yes
no
RESPONSES NO.OF RESPONSES OF RESPONSES
Yes 44 88
No 6 12
Total 50 100









CHAPTER-4
FINDINGS

FINDINGS :

100 oI the employees are aware oI the perIormance appraisal system in the
organization.
100 oI the employees thought that the perIormance appraisal is needed in a
company.
68 oI the employee`s opinion is that the perIormance appraisal is conduct once
in every year.
32 employees responded that, the superior assess their perIormance due to
Actual PerIormance, 48 number oI employees said due to Experience and
remaining 20 employees is due to all the above.
88 oI employees said that a good workman gets motivated with Irequent
PerIormance Appraisal.
78 oI the employees say that the annual increments/promotions are based on
their perIormance. 18 employees say that the annual increments/promotions
are not based on their perIormance while remaining 4 can`t say.
Only 22 employees agree that the training and development programs help to a
great extent to improve their perIormance, while 70 employees say that it help
to some extent to improve their perIormance & 8 employees say that it help to
a very little extent to improve their perIormance.
88 employees have the good relationship with appraiser aIter PerIormance
appraisal.













CHAPTER-5
SUGGESTIONS









SUGGESTIONS :
Proper Ieedback should be given at Iixed time periods, so that the employees
increase their perIormance based on their remarks.

Besides highlighting the negatives oI the employees, adequate programs Ior selI-
development must be provided.

Management should continue getting promotions on seniority basis, as it is most
preIerred by the employees.

Supervisors could try to inIluence employees and enhance their perIormance
through more personal interaction.

Employees oI the organization are satisIied with the current level oI perIormance
appraisal system and hence this system should implement more as the employees
Ieel that it could help better their job perIormance.

The supervisor should try to analyze the strengths and weaknesses oI an
employee and advise him on correcting the weakness.

EIIective training and development programs should be held so as to enhance or
improve employee`s perIormance.

Suggestions and innovations should be encouraged and rewards should be given
Ior unique achievements oI the employees.














CHAPTER-6
CONCLUSION











CONCLUSION :










































REFERENCES










Books
O Human Recourse & Management, K.Aswathappa.
O Appraising perIormance, T.V. Rao.
O Research Methodology, David .R. Cooper and Schindler.

Websites
O www.jktyre.com.
O www.google.com
O vvv.vikipodia.con
























ANNEXURE









QUESTIONAIRE

I am a student of M.B.A. from Institute of Technology & Management,
Sithouli, 1hansi Road . You are required to fill this questionnaire to enable me
to undertake the study on the said project.
NAME: _________________________________
DESIGNATION: _________________________________
DEPARTMENT: _________________________________
EXPERIENCE: _________________________________

1. Are you aware of the Performance Appraisal System in your organization ?
(a) Yes (b) No
2. Do you think Performance Appraisal is needed in a company ?
(a) Yes (b) No
3. How long once they conduct the Performance Appraisal ?
(a) Once in every year (b) Once in two year
4. On what basis they are assessing your performance ?
(a) Actual Performance (b) Qualification
(c) Experience (d) All the above
5. Do you think that a good workmen gets motivated with frequent Performance
Appraisal ? Are you satisfied with this ?
(a) Yes (b) No
6.Are your annual increments / promotions based on your performance ?
(a) Yes (b) No
(c) Can`t Say
.To what extent do training & development programs help in improving your
performance ?
(a) To great extent (b) To some extent
(c) To very little extent

8. Do you have a good relationship with appraiser / supervisor after Performance
Appraisal ?
(a) Yes (b) No
.What is your expectations and suggestions to improve performance appraisal
system ?
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