A STUDY ON

POTTENTIAL APPRAISAL
WITH SPECIAL REFERENCE TO

MARUTHI (HYDERABAD)
Submitted in Partial Fulfillment of the Award of the Degree
Of

MASTER OF BUSINESS ADMINISTRATION

Submitted By
M.B.A H.T NO: (131910672079)

Under The Guidance Of

Mrs. PREMALATHA
M.B.A (ASST.PROF) DEPARTMENT OF MANAGEMENT STUDIES

PRIYADARSHINI COLLEGE OF BUSINESS MANAGEMENT (AFFILIATED TO OSMANIA UNIVERSITY)

HYDERABAD 2010-2012
1

DECLARATION

I here declare that the project report entitled A STUDY ON POTTENTIAL APPRAISAL has been prepared by me in partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION I also declare that this project work is a result of my effort and it has not been submitted to any other university for the award of any degree or diploma.

PLACE: DATE:

B.KRISHNA VENI
(131910672079)

ACKNOWLEDGMENT
With a profound sense of thankfulness, I acknowledge my indebtedness to my company guide Mr. RAKESH SARMA (HR MANAGER) Faculty Guide Mrs. PREMLATHA M.B.A., for their valuable guidance, timely suggestions and constant encouragement. Their insightful criticisms and patience throughout the duration of this project have been instrumental in allowing this project to be completed. My sincere thanks are to the name of Director, Mr. G. SRIDHER REDDY (M.A) (P.hd)., name of HOD,SALEEMUNNISA (M.com, M.B.A) and all the staff members of Department of management studies, Priyadarshini College of Computer Science and Research ,For their consistent guidance in my project work. Their continual support and careful attention to the details involved in producing a document of this nature are very much appreciated.

(B.KRISHNA VENI)

CONTENTS PAGE
CHAPTER -I
INTRODUCTION

PAGE NO:

NEED & IMPORTANCE OF THE STUDY OBJECTIVES OF THE STUDY SCOPE OF THE STUDY METHODOLOGY OF THE STUDY LIMITATIONS OF THE STUDY

CHAPTER- II

THEORITICAL FRAME WORK CHAPTER III

INDUSTRY PROFILE COMPANY PROFILE CHAPTER- IV

DATA ANALYSIS & INTERPRETATION

CHAPTER V

FINDINGS SUGGESTIONS

CHAPTER -VI CONCLUSION (QUESTIONNAIRE FORMAT) BIBLIOGRAPHY

ABSTRACT
Managing human resources in todays dynamic environment is becoming more and more complex as well as important. Recognition of people as a valuable resource in the organization has led to increases trends in employee maintenance, job security, etc My research project deals with Potential Appraisal as carried out at MARUTI UDYOG LIMITED. In this report, I have studied &evaluated the Potential appraisal process as it is carried out in the company. The first section of my report deals with a detailed company profile. It includes the companys history: its activities and operations, organizational structure, etc. this section attempts to give detailed information about the company and the nature of its functioning. The second section deals with Potential appraisal. In this section, I have given a brief conceptual explanation to Potential appraisal. It contains the definition, process and significance of Potential appraisal. In the third section of my report, I have conducted a research study to evaluate the process of Potential appraisal at MARUTI UDYOG LIMITED.; this section also contains my findings, conclusions, suggestions and feedback. The forth and final section of this report consists of extra information that I related to the main contents of the report. These annexure include some graphs and diagrams relating to the company, graphs relating to the research study and important documents upon which the project is based. Organization Introduction

CHAPTER-1

INTRODUCTION
Potential appraisal is another powerful tool of employee development. Whether managers realize it or not, they are accustomed to make potential assessments. Every time a manager recommends or fails to recommend an employee for a promotion, a potential assessment has, in fact, been made. The process of assessing the managerial potential of employees deals with the question of whether or not they have the ability to handle positions in the future which involve considerably more responsibility than what they have right now. As long as individuals are viewed as being able to handle increased or different responsibilities, they would be considered to have potential (either latent or visible). Potential appraisal may thus be defined as a process of determining an employees strengths and weaknesses with a view to use this as a predictor of his future Potential. This would help determine the promotabilty of an individual to a higher position and help chalk out his career plan. The fundamental difference between reviewing Potential and assessing potential is in the criteria used. In reviewing Potential, the criterion used is what goals the employee achieved and what skills he or she currently possesses that could be indicators of his or her ability to assume different or more advanced responsibilities. It is this that makes potential appraisal a very crucial & critical area. If an employee without requisite abilities is promoted to a higher position and does not perform as per expectations, then it becomes impossible to demote him. Thus, he is unable to perform at the higher level and becomes a passenger in the system. It is rightfully assumed that every individual has potential, low or high. Many organizations have people whose potential being low; Potential too is not up to the mark. Whilst the question in our minds hovers around how such people got into the system, the fact remains that they do not contribute to the organizations Potential. If appraisal process implemented well, professional Potential and potential appraisal could take the organization on a fast development track and faster productivity through people. The potential appraisal refers to the appraisal i.e. identification of the hidden talents and skills of a person. The person might or might not be aware of them. Potential appraisal is a future oriented appraisal whose main objective is to identify and evaluate the potential of the employees to assume higher positions and responsibilities in the organizational

hierarchy. Many organizations consider and use potential appraisal as a part of the Potential appraisal processes. Potential appraisal is one of the most important requirements for successful business and human resource policy (Kessler 2003). Rewarding and promoting effective Potential in organization, as well as identifying ineffective performers for developmental programs or other personnel actions are essential to effective human resource management (Pulakos 2003). Project on potential appraisal was done by many, and the research process carried out to find out the employees potential. Sajitha Nair had done a project on potential appraisal for succession planning in the year 2005. She looked at the competencies required by the person who will fit in the job role. Then looked at the competencies possessed by the person and did a gap analysis. She found that everyone excels in all key actions, full mastery of all competencies. Many companies, which carry out performance appraisal, also keep records on the potential of their employees for future promotion opportunities. The task of identifying potential for promotion cannot be easy for the appraising manager, since competence of a member of staff to perform well in the current job is not an automatic indicator of potential for promotion. Very often the first class salesman is promoted to become a mediocre sales manager, the excellent chief engineer is promoted to become a very poor engineering director, and the star football player struggles to be a football manager. Potential can be defined as a latent but unrealized ability. There are many people who have the desire and potential to advance through the job they are in, wanting the opportunity to operate at a higher level of competence in the same type of work. The potential is the one that the appraiser should be able to identity and develop because of the knowledge of the job. This requires an in-depth study of the positions which may become vacant, looking carefully at the specific skills that the new position may demand and also taking into consideration the more subjective areas like qualities required. These may be areas where the employee has not had a real opportunity to demonstrate the potential ability and there may be areas with which you, as the appraisers are not familiar.

NEED &IMPORTANCE OF THE STUDY

It is necessary to identify the latest talent of people to cater the future needs of the Organization .Without assessing the potential of the employee it is risky to promote the person to the next higher level. The capabilities required to perform one role may not be same as those required to perform a higher role having different functions. Therefore, past performance is not necessarily a good indicator of the suitability of an individual for a higher role. The head of the department should be able to provide them with a role model and guide Them, properly with the objective of job skills and competence.

OBJECTIVES OF THE STUDY

The research is about studying the Employees potential level in MARUTI UDYOG LIMITED at Head Office. The objective of this project is to find out the capabilities and skills of the employees and request the management to provide necessary training required. Potential appraisal is an important part of the appraisal process. Appraising employees potential helps to evaluate his/her capability for growth and development to greater challenges, responsibilities and positions in the organizational hierarchy.

Most organization incorporate potential appraisal in their appraisal processes for identifying and developing suitable employee base for succession planning. This appraisal concentrates on the future, based on the Potential of the past and helps in developing the personal interests of the employees in alignment to the organizational goals.

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SCOPE OF THE STUDY

The performance areas in which the improvement or development is indicated. The accomplishments and the targets achieved in the current appraisal period Overall rating of the performance What skills, knowledge, competencies and qualities should be developed?Has the employee taken any steps for improving his performance and his career development?

Recommendations for the training and development of the employee Updating knowledge on the latest developments on their job related and subject areas. Rate the employee on the following characteristics or how does the employee fair on following behavioral characteristics:

The past performance of the employee and the potential of performing in future helps to identify the hidden talents.

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METHODOLOGY OF THE STUDY

RESEARCH DESIGN: Research Design refers to "framework or plan for a study that guides the collection and analysis of data". A typical research design of a company basically tries to resolve the following issues: a) Determining Data Collection Design b) Determining Data Methods c) Determining Data Sources d) Determining Primary Data Collection Methods e) Developing Questionnaires f) Determining Sampling Plan (1) Explorative Research Design: Explorative studies are undertaken with a view to know more about the problem. These studies help in a proper definition of the problem, and development of specific hypothesis is to be tested later by more conclusive research designs. Its basic purpose is to identify factors underlying a problem and to determine which one of them need to be further researched by using rigorous conclusive research designs. (2) Conclusive Research Design: Conclusive Research Studies are more formal in nature and are conducted with a view to eliciting more precise information for purpose of making marketing decisions. These studies can be either: a) Descriptive or b) Experimental

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Thus, it was mix of both the tools of Research Design that is, Explorative as well as Conclusive. SAMPLING PLAN: Sample Size = 50 Employees Sample Area = Maruti Udyog Duration = Two (2) Months. DATA COLLECTION: Data Sources: (i) Secondary Data through Internet (ii) Primary Data through Questionnaire (iii) Contact Method (iv) Personal Interaction DATA PRESENTATION AND ANALYSIS: 1. Bar graphs 2. Pie Diagrams 3. Doughnuts

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LIMITATION OF THE STUDY

The potential appraisal refers to the appraisal i.e. identification of the hidden talents and skills of a person. the person might or might not be aware of them. potential appraisal is a future oriented appraisal whose main objective is to identify and evaluate the potential of the employees to assume higher positions and responsibilities in the organizational hierarchy. many organizations consider and use potential appraisal as a part of the performance appraisal processed advise employees about their overall career develop entandfutureprospects. Help the organization to chalk out succession plans Motivate the employees to further develop their skills and competencies.

To identify the training needs

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CHAPTER -2

15

16

THEORETICAL FRAME WORK

Potential Appraisal is an important part of the appraisal process. Appraising an employees potential helps to evaluate and his/her capability for growth and development to greater challenges, responsibilities and positions in the organisational hierarchy. Most organisations incorporate potential appraisal in their appraisal processes for identifying and developing suitable employee base for succession planning. This Performance appraisal concentrates on the future, based on the performance of the past and helps in developing the personal interests of the employees in alignment to the organisational goals. With the help of the potential appraisal form, the employees/ individuals are judged on various performance and behavioral parameters like: The potential appraisal refers to the appraisal i.e. identification of the hidden talents and skills of a person. The person might or might not be aware of them. Potential appraisal is a future oriented appraisal whose main objective is to identify and evaluate the potential of the employees to assume higher positions and responsibilities in the organizational hierarchy. Many organizations consider and use potential appraisal as a part of the performance appraisal processes. It helps to identify what can happen in future so that it can be guided and directed towards the achievement of individual and organizational growth and goals. Therefore, potential should be included as a part of the Performance appraisal in Organizations. Potential appraisal can serve the following purposes: To advise employees about their overall career development and future prospects Help the organization to chalk out succession plans Potential Appraisal is the process of tracking unrevealed skills and abilities in a person which even he/she is unaware of. It is a future oriented appraisal which aims to track the potential of the employees to rise up in the organisational structure. Potential Appraisal is potent device for employee advancement. The term is not known to many; however, Managers of almost every organization have been making potential assessments every 17

Year. Managers use the predictors to determine whether the employee has the managerial Potential to execute added responsibilities in the future. Potential appraisal helps in the Decision making of promoting candidates and making a career plan for them. Confidential report: It is mostly used in government organizations. It is a descriptive report prepared, generally at the end of every year, by the employee's immediate superior. The report highlights the strengths and weaknesses of the subordinate. The report is not database. The impressions of the superior about the subordinate are merely recorded there. It does not offer any feedback to the appraisee. The appraisee is not very sure about why his ratings have fallen despite his best efforts, why others are rated high when compared to him, how to rectify his mistakes, if any; on what basis he is going to be evaluated next year, etc. Since the report is generally not made public and hence no feedback is available, the subjective analysis of the superior is likely to be hotly contested. In recent years, due to pressure from courts and trade unions, the details of a negative confidential report are given to the appraise. (b) Essay evaluation: Under this method, the rater is asked to express the strong as well as weak points of the employee's behavior. This technique is normally used with a combination of the graphic rating scale because the rater can elaborately present the scale by substantiating an explanation for his rating. While preparing the essay on the employee, the rater considers the following factors: (i) Job knowledge and potential of the employee; (ii) Employee's understanding of the company's programmes, policies, objectives, etc.; (iii) The employee's relations with co-workers and superiors; (iv) The employee's general planning, organizing and controlling ability; (v) The attitudes and perceptions of the employee, in general. Essay evaluation is a non-quantitative technique. This method is advantageous in at least one sense, i.e., the essay provides a good deal of information about the employee and also reveals more about the evaluator. The essay evaluation method however, suffers from the following limitations: It is highly subjective; the supervisor may write a biased essay. The employees who are sycophants will be evaluated more favorably then other employees. Some evaluators may be poor in writing essays on employee performance. Others may be superficial in explanation and use flowery language which may not reflect the actual performance of the employee. It is very difficult to find effective writers nowadays. The 18

appraiser is required to find time to prepare the essay. A busy appraiser may write the essay hurriedly without properly assessing the actual performance of the worker. On the other hand, appraiser takes a long time, this becomes uneconomical from the view point of the firm, because the time of the evaluator (supervisor) is costly. (c) Critical incident technique: Under this method, the manager prepares lists of statements of very effective and ineffective behavior of an employee. These critical incidents or events represent the outstanding or poor behavior of employees on the job. The manager maintains logs on each employee, whereby he periodically records critical incidents of the workers behavior. At the end of the rating period, these recorded critical incidents are used in the evaluation of the workers' performance. An example of a good critical incident of a sales assistant is the following: July 20 The sales clerk patiently attended to the customers complaint. He is polite, prompt, enthusiastic in solving the customers' problem. On the other hand the bad critical incident may appear as under: July 20 The sales assistant stayed 45 minutes over on his break during the busiest part of the day. He failed to answer the store manager's call thrice. He is lazy, negligent, stubborn and uninterested in work. This method provides an objective basis for conducting a thorough discussion of an employee's performance. This method avoids recency bias (most recent incidents get too much emphasis). This method suffers however from the following limitations: Negative incidents may be more noticeable than positive incidents. The supervisors have a tendency to unload a series of complaints about incidents during an annual performance review session. It results in very close supervision which may not be liked by the employee. The recording of incidents may be a chore for the manager concerned, who may be too busy or forget to do it. Most frequently, the critical incidents technique of evaluation is applied to evaluate the performance of superiors rather than of peers of subordinates. (d) Checklists and weighted checklists: Another simple type of individual evaluation

method is the checklist. A checklist represents, in its simplest form, a set of objectives or 19

descriptive statements about the employee and his behavior. If the rater believes strongly that the employee possesses a particular listed trait, he checks the item; otherwise, he leaves the item blank. A more recent variation of the checklist method is the weighted list. Under this, the value of each question may be weighted equally or certain questions may be weighted more heavily than others. The following are some of the sample questions in the checklist. l l l l l Is the employee really interested in the task assigned? Is he respected by his colleagues (co-workers) Does he give respect to his superiors? Does he follow instructions properly? Does he make mistakes frequently? Yes/No Yes/No Yes/No Yes/No Yes/No

A rating score from the checklist helps the manager in evaluation of the performance of the employee. The checklist method has a serious limitation. The rater may be biased in distinguishing the positive and negative questions. He may assign biased weights to the questions. Another limitation could be that this method is expensive and time consuming. Finally, it becomes difficult for the manager to assemble, analyze and weigh a number of statements about the employee's characteristics, contributions and behaviors. In spite of these limitations, the checklist method is most frequently used in the employee's performance evaluation. (e) Graphic rating scale: Perhaps the most commonly used method of performance evaluation is the graphic rating scale. Of course, it is also one of the oldest methods of evaluation in use. Under this method, a printed form, as shown below, is used to evaluate the performance of an employee. A variety of traits may be used in these types of rating devices, the most common being the quantity and quality of work. The rating scales can also be adapted by including traits that the company considers important for effectiveness on the job. A model of a graphic rating scale is given below. Table: Typical Graphic Rating Scale Employee Name................... Department ......................... Job title ................. Rate ...............

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Indicators of Potential A sense of reality: This is the extent to which a person thinks and acts objectively, resisting purely emotional pressures but pursuing realistic projects with enthusiasm. Imagination: The ability to let the mind range over a wide variety of possible causes of action, going beyond conventional approaches to situations and not being confined to This is the way it is always being done! Power of analysis: The capacity to break down, reformulate or transform a complicated situation into manageable terms. Breadth of vision: The ability to examine a problem in the context of a much broader framework of reference; being able to detect, within a specific situation, relationships with those aspects which could be affecting the situation. Persuasiveness: The ability to sell ideas to other people and gain a continuing commitment, particularly when the individual is using personal influence rather than management authority. Source: Adopted from Philip, Tom (1983). Making Performance Appraisal Work, McGraw Hill Ltd., U.K. Like the Performance Appraisal, potential appraisal is also done by the employees supervisor who has had the opportunity to observe the employee for some time. Potential appraisal may be done either regularly or as and when required. Generally last part of appraisal deals with potential appraisal, as this is seen in case of Maruti Udyog Ltd. POTENTIAL APPRAISAL CAN SERVE THE FOLLOWING PURPOSES: To advise employees about their overall career development and future prospects Help the organization to chalk out succession plans Motivate the employees to further develop their skills and competencies. To identify the training needs.

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TEHNIQUES OF POTENTIAL APPRAISAL

Self appraisals Peer appraisals Superior appraisals MBO Psychological and psychometric tests Management games like role playing Leadership exercises etc.

With the help of the potential appraisal form, the employees/ individuals are judged on various Potential and behavioral parameters like:

The Potential areas in which the improvement or development is indicated. The accomplishments and the targets achieved in the current appraisal period Overall rating of the Potential What skills, knowledge, competencies and qualities should be developed? Has the employee taken any steps for improving his Potential and his Career development? Recommendations for the training and development of the employee Updating knowledge on the latest developments on their job related and subject areas. Rate the employee on the following characteristics or how does the employee fair on following behavioral characteristics: Decision making Independent Confidence towards the job Handling stress and pressure Inter-personal skills, both with superiors and subordinates Leadership, motivating and conflict handling

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SELF APPRAISAL FORM

Self appraisal is the self evaluation where the employee himself gives the feedback or his views and points regarding his Potential. The employee himself critically analyses the Potential, his strengths, weaknesses, accomplishments, problems faced, the training and development needs (if any) etc. The self appraisal form generally starts with the employee details like: The name of the employee Designation Date of joining Date of last appraisal Department Reporting officer The next section is, commonly, designed to gather the information from the employee regarding his on-the-job Potential and his responsibilities: The current responsibilities held by the employee Accomplishments Goals for the next appraisal period Areas for improvement Training requirements felt for the present job Responsibilities the employee would like to add to his current responsibilities Problems faced Solutions tried Measures taken for personal and professional development Best and worst aspects of the job Is the superior supportive

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The form also includes a section where the employee rates himself on various behavioral parameters like: Communication skills Inter-personal skills Problem-solving Team work Adaptability/Flexibility Initiative Decision Making Leadership Maturity The self appraisal form also includes a section where the employee can quote examples and incidents to support his ratings and answers. The self appraisal form generally ends with a subjective section asking for suggestions and the choice of discussing any other topic that the employee feels the need to raise and discuss. MARUTI UDYOG chooses Self Appraisal as a primary method to judge an Employees potential.

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APPRAISAL PROCESS
Potential appraisal is an important part of the appraisal process. Appraising an employees potential helps to evaluate his/her capability for growth and development to greater challenges, responsibilities and positions in the organizational hierarchy. MARUTI UDYOG incorporates potential appraisal in their appraisal processes for identifying and developing suitable employee base for succession planning. This appraisal concentrates on the future, based on the Potential of the past and helps in developing the personal interests of the employees in alignment to the organizational goals. Potential appraisal is another powerful tool of employee development. The fundamental difference between reviewing Potential and assessing potential is in the criteria used. In reviewing Potential, the criterion used is what goals the employee achieved and what skills he or she currently possesses that could be indicators of his or her ability to assume different or more advanced responsibilities. It is this that makes potential appraisal a very crucial & critical area. If an employee without requisite abilities is promoted to a higher position and does not perform as per expectations, then it becomes impossible to demote him. Thus, he is unable to perform at the higher level and becomes a passenger in the system. It is rightfully assumed that every individual has potential, low or high. MARUTI UDYOG (like other organizations) has people whose potential being low; Potential too is not up to the mark. Whilst the question in our minds hovers around how such people got into the system, the fact remains that they do not contribute to the organizations Potential.

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GAUGING EMPLOYEES POTENTIAL FOR MANAGEMENT POSITION

The aim of potential assessment is to identify training and development needs, provide guidance on possible directions in which an individual's career might go, and indicate who has potential for promotion. A more comprehensive approach is provided by the use of assessment centers. These incorporate a range of assessment techniques and typically have the following features: The focus of the centre is on behavior. Exercises are used to capture and simulate the key dimensions of the job. These include one to one role plays and group exercises. It is assumed that Potential in these simulations predicts behavior on the job. Interviews and tests will be used in addition to group exercises. Potential is measured in several dimensions in terms of the competencies required to achieve the target level of Potential in a particular job or at a particular level in the organization. Several candidates or participants are assessed together to allow interaction and to make the experience more open and participative. Several assessors or observers are used in order to increase the objectivity of assessments. Involving senior managers is desirable to ensure that they 'own' the process. Assessors must be carefully trained. Assessment centers provide good opportunities for indicating the extent to which candidates match the culture of the organization. This will be established by observation of their behavior in different but typical situations, and by the range of the tests and structured interviews that are part of the proceedings. Assessment centers also give candidates a better feel for the organization and its values so that they can decide for themselves whether or not they are likely to fit.

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ASSESMENT CENTERS
Employees are not contended by just having a job. They want growth and individual development in the organization. An assessment centre is a multiple assessment of several individuals performed simultaneously by a group of trained evaluators using a variety of group and individual exercises. Assessment centers are a more elaborate set of performance simulation tests, specifically designed to evaluate a candidates managerial potential. Line executives, supervisors, and/or trained psychologists evaluate candidates as they go through one to several days of exercises that simulate real problems that they would confront on the job. Based on a list of descriptive dimensions that the actual job incumbent has to meet, activities might include interviews, in-basket problem-solving exercises, leaderless group discussions, and business decision games. For instance, a candidate might be required to play the role of a manager who must decide how to respond to ten memos in his/her in-basket within a two-hour period. Assessment centers have consistently demonstrated results that predict later job performance in managerial positions. The American Telephone and Telegraph Company (AT&T) began experiments with Assessment Centre approach in the 1950s as a part of a wide programme of management development. The AT&T Company designated a particular building where the Assessments were carried out. This building became known as Assessment centre and the name has stuck as a way of referring to the method. The method became established in the industry in the USA during the 1960s and 1970s and was introduced in UK during this period. This method is now regarded as one of the most accurate and valid assessment procedures and is widely used for selection and development. According to IPMA (The International Personnel Management Association), an assessment center consists of a standardized evaluation of behavior based on multiple inputs. They are used to assess the strengths, weaknesses and potential of employees. The specific objective is to reinforce strengths, overcome weaknesses and exploit potential of the employees through training and 27

developmental efforts. Several trained observers and techniques are used. Judgments about behavior are made, in major part, from specifically developed assessment simulations. These judgments are pooled in a meeting among the assessors or by a statistical integration process. In an integration discussion, comprehensive accounts of behavior, and often ratings of it, are pooled. The discussion results in evaluations of the performance of the assesses on the dimensions/ competencies or other variables that the assessment center is designed to measure. There is a difference between an assessment center and assessment center methodology. Various features of the assessment center methodology are used in procedures that do not meet all of the guidelines set forth here, such as when a psychologist or human resource professional, acting alone, uses a simulation as a part of the evaluation of an individual. Such personnel assessment procedures are not covered by these guidelines; each should be judged on its own merits. Procedures that do not conform to all the guidelines here should not be represented as assessment centers or imply that they are assessment centers by using the term assessment center as part of the title.

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The following are the essential elements for a process to be considered an assessment center: a) Job Analysis A job analysis of relevant behaviors must be conducted to determine the dimensions, competencies, attributes, and job performance indices important to job success in order to identify what should be evaluated by the assessment center. The type and extent of the job analysis depend on the purpose of assessment, the complexity of the job, the adequacy and appropriateness of prior information about the job, and the similarity of the new job to jobs that have been studied previously. If past job analyses and research are used to select dimensions and exercises for a new job, evidence of the comparability or generalizability of the jobs must be provided. If job does not currently exist, analyses can be done of actual or projected tasks or roles that will comprise the new job, position, job level, or job family. Target dimensions can also be identified from an analysis of the vision, values, strategies, or key objectives of the organization. Competency-modeling procedures may be used to determine the dimensions/competencies to be assessed by the assessment center, if such procedures are conducted with the same rigor as traditional job analysis methods. Rigor in this regard is defined as the involvement of subject matter experts who are knowledgeable about job requirements, the collection and quantitative evaluation of essential job elements, and the production of evidence of reliable results. Any job analysis or competency modeling must result in clearly specified categories of behavior that can be observed in assessment procedures. A competency may or may not be amenable to behavioral assessment as defined herein. A competency, as used in various contemporary sources, refers to an organizational strength, an organizational goal, a valued objective, a construct, or a grouping of related behaviors or attributes. A competency may be considered a behavioral dimension for the purposes of assessment in an assessment center if i) it can be defined precisely ii) expressed in terms of behaviors observable on the job or in a job family and in Simulation exercises. iii) a competency also must be shown to be related to success in the target job or Position or job family. 29

b) Behavioral Classification Assessment centre requires that Behaviors displayed by participants must be classified into meaningful and relevant categories such as dimensions, attributes, characteristics, aptitudes, qualities, skills, abilities, competencies, and knowledge. c) Assessment Techniques The techniques used in the assessment center must be designed to provide information for evaluating the dimensions previously determined by the job analysis. Assessment center developers should establish a link from behaviors to competencies to exercises/ assessment techniques. This linkage should be documented in a competency-by exercise/ assessment technique matrix. d) Multiple Assessments Multiple assessment techniques must be used. These can include tests, interviews, questionnaires, sociometric devices, and simulations. The assessment techniques are developed or chosen to elicit a variety of behaviors and information relevant to the selected competencies/ dimensions. Self-assessment and 360 degree assessment data may be gathered as assessment information. The assessment techniques will be pretested to ensure that the techniques provide reliable, objective and relevant behavioral information. Pretesting might entail trial administration with participants similar to assessment center candidates, thorough review by subject matter experts as to the accuracy and representativeness of behavioral sampling and/or evidence from the use of these techniques for similar jobs in similar organizations. e) Simulations The assessment techniques must include a sufficient number of job related simulations to allow opportunities to observe the candidates behavior related to each competency/ dimension being assessed. At least oneand usually severaljob related simulations must be included in each assessment center. A simulation is an exercise or technique designed to elicit behaviors related to dimensions of performance on the job requiring the participants to respond behaviorally to situational stimuli. Examples of simulations include, but are not limited to, group exercises, in-basket exercises, interaction (interview) simulations, 30

presentations, and fact-finding exercises. Stimuli may also be presented through video based or virtual simulations delivered via computer, video, the Internet, or an intranet. Assessment center designers also should be careful to design exercises that reliably elicit a large number of competency- related behaviors. In turn, this should provide assessors with sufficient opportunities to observe competency-related behavior. f) Assessors Multiple assessors must be used to observe and evaluate each assesses. When Selecting a group of assessors, consider characteristics such as diversity of age, sex, organizational level, and functional work area. Computer technology may be used to assess in those situations in which it can be shown that a computer program evaluates behaviors at least as well as a human assessor. The ratio of assesses to assessors is a function of several variables, including the type of exercises used, the dimensions to be evaluated, the roles of the assessors, the type of integration carried out, the amount of assessor training, the experience of the assessors, and the purpose of the assessment center. A typical ratio of assesses to assessors is two to one. A participants current supervisor should not be involved in the assessment of a direct subordinate when the resulting data will be used for selection or promotional purposes. g) Assessor Training Assessors must receive thorough training and demonstrate performance that meets requirements prior to participating in an assessment center. The training should focus on processing of information, drawing conclusions, interview techniques and understanding behavior. h) Recording Behavior A systematic procedure must be used by assessors to record specific behavioral observations accurately at the time of observation. This procedure might include techniques such as handwritten notes, behavioral observation scales, or behavioral checklists. Audio and video recordings of behavior may be made and analyzed at a later date.

i) Reports

31

Assessors must prepare a report of the observations made during each exercise before the integration discussion. It is suggested that assessors must prepare the report immediately after the assessment is over otherwise they are likely to forget the details. Not only this, these reports must be independently made. j) Data Integration The integration of behaviors must be based on a pooling of information from assessors or through a statistical integration process validated in accordance with professionally accepted standards. During the integration discussion of each dimension, assessors should report information derived from the assessment techniques but should not report information irrelevant to the purpose of the assessment process. The integration of information may be accomplished by consensus or by some other method of arriving at a joint decision. Methods of combining assessors evaluations of information must be supported by the reliability of the assessors discussions. Computer technology may also be used to support the data integration process provided the conditions of this section are met. Uses of Assessment Centers Data generated during the process of Assessment can become extremely useful in identifying employee potential for growth. This data can be used for: a) Recruitment and Promotion: Where particular positions which need to be filled exist, both internal and external can be assessed for suitability to those specific posts. b) Early Identification of Personnel: The underlying rationale here is the need for the organization to optimize talent as soon as possible. High potential people also need to be motivated so that they remain with the organization. c) Diagnosis of Training and Development Needs: It offers a chance to establish individual training and development needs while providing candidates with a greater appreciation of their needs. d) Organizational Planning: Assessment centers can be used to identify area where widespread skill deficiencies exist within organizations, so that training can be developed 32

in these areas. Results can also be integrated with human resource planning data to provide additional information concerning number of people with particular skills needed to meet future needs. ASSESSMENT CENTRES AND DEVELOPMENT CENTRES Traditionally an assessment centre consisted of a suite of exercises designed to assess a set of personal characteristics. It was seen as a rather formal process where the individuals being assessed had the results fed back to them in the context of a simple yes/no selection decision. However, recently we have seen a definite shift in thinking away from this traditional view of an assessment centre to one which stresses the developmental aspect of assessment. A consequence of this is that today it is very rare to come across an assessment centre which does not have at least some developmental aspect to it. Increasingly assessment centers are stressing a collaborative approach which involves the individual actively participating in the process rather than being a passive recipient of it. In some cases we can even find assessment centers that are so developmental in their approach that most of the assessment work done is carried out by the participants themselves and the major function of the centre is to provide the participants with feedback that is as much developmental as judgmental in nature. Assessment centers typically involve the participants completing a range of exercises which simulate the activities carried out in the target job. Various combinations of these exercises and sometimes other assessment methods like psychometric testing and interviews are used to assess particular competencies in individuals. The theory behind this is that if one wishes to predict future job performance then the best way of doing this is to get the individual to carry out a set of tasks which accurately sample those required in the job. The particular competencies used will depend upon the target job but one should also learn such competencies such as relating to people; resistance to stress; planning and organizing; motivation; adaptability and flexibility; problem solving; leadership; communication; decision making and initiative. The fact that a set of exercises is used demonstrates one crucial characteristic of an assessment centre, namely; that it is behavior that is being observed and measured. This represents a significant departure from many traditional selection approaches which rely on the observer or selector attempting to infer 33

personal characteristics from behavior based upon subjective judgment and usually precious little evidence. This approach is rendered unfair and inaccurate by the subjective whims and biases of the selector and in many cases produces a selection decision based on a freewheeling social interaction after which a decision was made as whether the individuals face fit with the organisation. Differences between Assessment and Development Centres The type of centre can vary between the traditional assessment centre used purely for selection to the more modern development centre which involves self-assessment and whose primary purpose is development. One might ask the question Why group assessment and development centers together if they have different purposes? The answer to that question is threefold. a) they both involve assessment and it is only the end use of the information obtained which is different i.e. one for selection and one for development. b) it is impossible to draw a line between assessment and development centers because all centers, be they for assessment or development naturally lie somewhere on a continuum somewhere between the two extremes. c) Most assessment centers involve at least some development and most development centers involve at least some assessment. This means that it is very rare to find a centre devoted to pure assessment or pure development. It is easier to think about assessment centers as being equally to do with selection and development because a degree of assessment goes on in both. d) Development Centers grew out of a liberalization of thinking about assessment centers. While assessment centers were once used purely for selection and have evolved to have a more developmental flavor, the language used to describe them has not. Another problem with using the assessment development dichotomy is that at the very least it causes us to infer that little or no assessment goes in development centres. While one hears centres being called assessment or development centres assessment goes on in both and to that extent they are both assessment centres. The end result of this is that it is not possible to talk about assessment or development centres in any but the most general terms. A number of differences between assessment and development centres exist are presented below: 34

a) Assessment centres have a pass/fail criteria while Development centres do not have a pass/fail criteria b) Assessment centres are geared towards filing a job vacancy while Development centres are geared towards developing the individualc) Assessment Centres address an immediate organizational need whileDevelopment Centres address a longer term need d) Assessment Centres have fewer assessors and more participants whileDevelopment Centres have a 1:1 ratio of assessor to participante) Assessment Centres involve line managers as assessors while DevelopmentCentres do not have line managers as assessorsf) Assessment Centres have less emphasis placed on self-assessment whileDevelopment Centres have a greater emphasis placed on self-assessmentg) Assessment Centres focus on what the candidate can do now while Development Centres focus on potentialh) Assessment Centres are geared to meet the needs of the organisation while Development Centres are geared to meet needs of the individual as well as the organizations) Assessment Centres assign the role of judge to assessors while Development Centres assign the role of facilitator to assessors. j) Assessment Centres place emphasis on selection with little or no developmental while Development Centres place emphasis on developmental feedback and follow up with little or no selection function.k) Assessment Centres feedback and follow up while Development Centres give feedback immediately.l) Assessment Centres give feedback at a later date while Development Centres involve the individual having control over the information obtained.m) Assessment Centres have very little pre-centre briefing while DevelopmentCentres have a substantial pre-centre briefing.n) Assessment Centres tend to be used with external candidates while development Centres tend to be used with internal candidates.

35

CAREER PLANNING PROCESS

It is obvious from the foregoing analysis that individuals differ a great deal in term of their career orientation .The career orientation is influenced by the preference for a particular career anchor, the life cycle stage, individual difference in values, goals, priorities, and aspiration. Organization also on the other hand differ in term of career path and opportunities that they can provide given the reality of their internal and external environments .The career system available in organizational depend on their growth potential, goals and priorities. The difference between what the employees look for in their career progression and what career growth opportunities the organizations able to provide, gives rise to situation of potential conflict. If the conflict is allowed to persist, the employee will experience dissatisfaction and withdraw from being actively engaged in the productive pursuit .They might even choose the option of leaving the organization. In either case, the organization is not able to optimally utilize the potential contribution of its employee towards the achievement of its goal. The possibility of conflict between the individualorganization objective calls for career planning efforts which can help identify areas of conflict and initiate such action as necessary to resolve the conflict . Career planning thus involves matching of rewards and incentives offered by the career path and career structure with hope and aspiration of employees regarding their own concept of progression. A general approach to career planning would involve the following steps: a) Analysis of the characteristic of the reward and incentives offered by the prevailing career system needs to be done and made know to employee .Many individuals may not be aware of their own career progression path as such information may be confined to only select group of managers. b) Analyse the characteristic of the hopes and aspirations of different categories of employee including the identification of their career anchor must be done through the objective assignment. Most organization assume the career aspiration of individual employee which need not be in tune with the reality .The individual may not have a clear idea of their short and long term career and life goals , and may not be aware of the aspiration and career anchor . 36

c) Mechanism for identifying congruence between individual career aspiration and organizational career system must develop so as to enable the organization to discuss cases of mismatch or incongruence. On the basis of analysis, it will be necessary to compare and identify specific area of match and mismatch for different categories of employee. d) Alternative strategies for dealing with mismatch will have to be formulated. Some of the strategies adopted by several organization include the following:

Change in the career system by creating new career path, new incentives, new rewards, by providing challenge through job redesign opportunities for lateral movement and the like.

Change in the employees hopes and aspirations by creating new needs, new goals, new aspiration or by helping the employees to scale down goal and aspiration that are unrealistic or unattainable for one reason or the other.

Succession Planning Seek new basis of integration, compromise or other form of mutual change on the part of employee and organizational through problem solving, negotiation or other devices. A framework of career planning process aimed at integrating individual and organizational needs is presented. e) Reviewing Career Plans a periodic review of career plans is necessary to know whether the plans are contributing to the effective utilization of human resources by matching employee objectives to job needs. Review will also indicate to employee in which direction the organizations is moving, what changes are likely to take place and what skills are needed to adapt to the changing needs of the organization.

37

SUCCESSION PLANNING
Succession planning is an ongoing process that identifies necessary competencies, then works to assess, develop, and retain a talent pool of employees, in order to ensure a continuity of leadership for all critical positions. Succession planning is a specific strategy, which spells out the particular steps to be followed to achieve the mission, goals, and initiatives identified in workforce planning. It is a plan that managers can follow, implement, and customize to meet the needs of their organization, division, and/or department. The continued existence of an organization over time require a succession of persons to fill key position .The purpose of succession planning is to identify and develop people to replace current incumbents in key position for a variety of reasons. Some of these reasons are given below: Superannuation: Employees retiring because they reach a certain age. Resignation: Employees leaving their current job to join a new job Promotion: Employees moving upward in the hierarchy of the organization. Diversification: Employees being redeployed to new activities. Creation of New Position: Employees getting placed in new positions at the same level. Succession can be from within or from outside the organization. Succession by people from within gives a shared feeling among employee that they can grow as the organization grows. Therefore organization needs to encourage the growth and development with its employee. They should look inward to identify potential and make effort to groom people to higher and varied responsibilities. In some professionally run large organizations, managers and supervisor in every department are usually asked to identify three or four best candidate to replace them in their jobs should the need arise. However, the organization may find it necessary to search for talent from outside in certain circumstance. For example, when qualified and competent people are not available internally, when it is planning to launch a major expansion or diversification programmers requiring new ideas 38

etc.. Complete dependence on internal source may cause stagnation for the organization. Similarly complete dependence on outside talent may cause stagnation in the career prospects of the individual within the organization which may in turn generate a sense of frustration. Succession planning provides managers and supervisors a step-by-step methodology to utilize after workforce planning initiatives have identified the critical required job needs in their organization. Succession planning is pro-active and future focused, and enables managers and supervisors to assess, evaluate, and develop a talent pool of individuals who are willing and able to fill positions when needed. It is a tool to meet the necessary staffing needs of an organization/department, taking not only quantity of available candidates into consideration, but also focusing on the quality of the candidates, through addressing competencies and skill gaps.

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RATING ERRORS IN POTENTIAL APPRAISAL

Potential appraisals are subject to a wide variety of inaccuracies and biases referred to as 'rating errors'. These errors can seriously affect assessment results. Some of the most common rating errors are: Leniency or severity: - Leniency or severity on the part of the rater makes the assessment subjective. Subjective assessment defeats the very purpose of Potential appraisal. Ratings are lenient for the following reasons: a) The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will reflect poorly on his or her own worthiness. b) He/She may feel that a derogatory rating will be revealed to the rate to detriment the relations between the rater and the ratee. c) He/She may rate leniently in order to win promotions for the subordinates and therefore, indirectly increase his/her hold over him. Central tendency: - This occurs when employees are incorrectly rated near the average or middle of the scale. The attitude of the rater is to play safe. This safe playing attitude stems from certain doubts and anxieties, which the raters have been assessing the rates. Halo error: - A halo error takes place when one aspect of an individual's Potential influences the evaluation of the entire Potential of the individual. The halo error occurs when an employee who works late constantly might be rated high on productivity and quality of output as well ax on motivation. Similarly, an attractive or popular personality might be given a high overall rating. Rating employees separately on each of the Potential measures and encouraging raters to guard against the halo effect are the two ways to reduce the halo effect. Rater effect: -This includes favoritism, stereotyping, and hostility. Extensively high or low score are given only to certain individuals or groups based on the rater's attitude towards 40

them and not on actual outcomes or behaviors; sex, age, race and friendship biases are examples of this type of error. Primacy and Regency effects: - The rater's rating is heavily influenced either by behavior exhibited by the ratee during his early stage of the review period (primacy) or by the outcomes, or behavior exhibited by the ratee near the end of the review period (regency). For example, if a salesperson captures an important contract/sale just before the completion of the appraisal, the timing of the incident may inflate his or her standing, even though the overall Potential of the sales person may not have been encouraging. One way of guarding against such an error is to ask the rater to consider the composite Potential of the rate and not to be influenced by one incident or an achievement. Potential dimension order: - Two or more dimensions on a Potential instrument follow each other and both describe or rotate to a similar quality. The rater rates the first dimensions accurately and then rates the second dimension to the first because of the proximity. If the dimensions had been arranged in a significantly different order, the ratings might have been different. Spillover effect: - This refers lo allowing past Potential appraisal rating lo unjustifiably influence current ratings. Past ratings, good or bad, result in similar rating for current period although the demonstrated behavior docs not deserve the rating, good or bad.

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ROLES IN POTENTIAL APPRAISAL PROCESS

a) Reporting Manager

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

Ensures that employee is aware of the normalization / Potential appraisal process

Address employee concerns / queries on Potential rating, in consultation with the reviewer b) Reviewer (Reporting Managers Reporting Manager)

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

Where required, independently assess employees for the said behavioral traits; such assessments might require collecting data directly from other relevant employees c) HOD (In some cases, a reviewer may not be a HOD) Presents the proposed Potential Rating for every employee of his / her function to the Normalization committee.

HOD also plays the role of a normalization committee member Owns the Potential rating of every employee in the department d) HR Head

Secretary to the normalization committee Assists HODs / Reporting Managers in communicating the Potential rating of all the employees

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KEY CONCEPTS
In order to understand the Potential Management System at MARUTI UDYOG LIMITED, some concepts need to be explained which play a very important role in using the PMS successfully. They are:

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

What are the guidelines for setting the KRAs for an employee? How does an employee write down his KRAs for a particular financial year?

KRAs: The Four Perspectives. How is the KRA score calculated for an employee on the basis of the targets sets and targets achieved?

BEHAVIORAL TRAITS: Some of the qualitative aspects of an employees Potential combined with the general behavioral traits displayed by the employee during a year constitutes his behavior traits. An employee is assigned the rating on the basis of the intensity of the behavior displayed by him. They play a very important role in the deciding the final Potential rating for an employee as is even capable of shifting the rating one level upwards/downwards.

THE POTENTIAL RATING PROCESS: The rating process tries to explain the four different types of rating that an employee can achieve i.e. EP, SP, NP and PP. It also explains the criteria, which is considered for awarding any of these ratings to the employee.

ROLE OF HUMAN RESOURCE DEPT

43

Human Resource (or personnel) management, in the sense of getting things done through people, is an essential part of every managers responsibility, but many organizations find it advantageous to establish a specialist division to provide an expert service dedicated to ensuring that the human resource function is performed efficiently. People are our most valuable asset is a clich, which no member of any senior management team would disagree with. Yet, the reality for many organizations are that their people remain under valued, under trained and under utilized. Following are the various functions of Human Resource Management that are essential for the effective functioning of the organization: 1. Recruitment 2. Selection 3. Induction 4. Potential Appraisal 5. Training & Development Quality of work: Neatness, thoroughness and accuracy of work Knowledge of job A clear understanding of the factors connected with the job Attitude: Exhibits enthusiasm and cooperativeness on the job Dependability: Conscientious, thorough, reliable, accurate, with respect to attendance, reliefs, lunch breaks, etc. Cooperation: Willingness and ability to work with others to produce desired goals. From the graphic rating scales, excerpts can be obtained about the performance standards of employees. For instance, if the employee has serious gaps in technical-professional knowledge (knows only rudimentary phases of job); lacks the knowledge to bring about an increase in productivity; is reluctant to make decisions on his own (on even when he makes decisions they are unreliable and substandard); declines to accept responsibility; fails to plan ahead effectively; wastes and misuses resources; etc., then it can safely be inferred that the standards of the performance of the employee are dismal and disappointing. 44

The rating scale is the most common method of evaluation of an employee's performance today. One positive point in favor of the rating scale is that it is easy to understand, easy to use and permits a statistical tabulation of scores of employees. When ratings are objective in nature they can be effectively used as evaluators. The graphic rating scale may however suffer from a long standing disadvantage, i.e., it may be arbitrary and the rating may be subjective. Another pitfall is that each characteristic is equally important in evaluation of the employee's performance and so on. (f) Behaviorally anchored rating scales: Also known as the behavioral expectations It is a scale, this method represents the latest innovation in performance appraisal.

combination of the rating scale and critical incident techniques of employee performance evaluation. The critical incidents serve as anchor statements on a scale and the rating form usually contains six to eight specifically defined performance dimensions. The following chart represents an example of a sales trainee's competence and a behaviorally anchored rating scale. Table: An Example of Behaviorally Anchored Rating Scale (BARS) PerformancePoints 7Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country. Good Can expect to initiate creative ideas for improved sales. Above average Can expect to keep in touch with the customers throughout the year. Average Can manage, with difficulty, to deliver the goods in time. Below average Can expect to unload the trucks when asked by the supervisor. Poor Can expect to inform only a part of the customers. Extremely poor1Can expect to take extended coffee breaks and roam around purposelessly. How to construct BARS? Developing a BARS follows a general format which combines techniques employed in the critical incident method and weighted checklist ratings scales. Emphasis is pinpointed on pooling the thinking of people who will use the scales as both evaluators and evaluees. Step 1: Collect critical incidents: People with knowledge of the job to be probed, such as job holders and supervisors, describe specific examples of effective and ineffective behavior related to job performance.

45

Step 2: Identify performance dimensions: The people assigned the task of developing the instrument cluster the incidents into a small set of key performance dimensions. Generally between five and ten dimensions account for most of the performance. Examples of performance dimensions include technical competence, relationships with customers, handling of paper work and meeting day-to-day deadlines. While developing varying levels of performance for each dimension (anchors), specific examples of behavior should be used, which could later be scaled in terms of good, average or below average performance? Step 3: Reclassification of incidents: Another group of participants who are knowledgeable about the job is instructed to retranslate or reclassify the critical incidents generated (in Step II) previously. They are given the definition of job dimension and told to assign each critical incident to the dimension that it best describes. At this stage, incidents for which there is not 75 per cent agreement are discarded as being too subjective. Step 4: Assigning scale values to the incidents: Each incident is then rated on a one-toseven or one-to-nine scale with respect of how well it represents performance on the appropriate dimension. A rating of one represents ineffective performance; the top scale value indicates very effective performance. The second group of participants usually assigns the scale values. Means and standard deviations are then calculated for the scale values assigned to each incident. Typically incidents that have standard deviations of 1.50 or less (on a 7-point scale) are retained. Step 5: Producing the final instrument: About six or seven incidents for each performance dimension all having met both the retranslating and standard deviation criteria will be used as behavioral anchors. The final BARS instrument consists of a series of vertical scales (one for each dimension) anchored (or measured) by the final incidents. Each incident is positioned on the scale according to its mean value. Because the above process typically requires considerable employee participation, its acceptance by both supervisors and their subordinates may be greater. Proponents of BARS also claim that such a system differentiates among behavior, performance and results and consequently is able to provide a basis for setting developmental goals for the employee. Because it is job-specific and identifies observable and measurable behavior, it is a more reliable and valid method for performance appraisal.

46

Researchers, after surveying several studies on BARS, concluded that despite the intuitive appeal of BARS, findings from research have not been encouraging. It has not proved to be superior to other methods in overcoming rater errors or in achieving psychometric soundness. A specific deficiency is that the behaviors used are activity oriented rather than results oriented. This creates a potential problem for supervisors doing the evaluation, who may be forced to deal with employees who are performing the activity but not accomplishing the desired goals. Further, it is time consuming and expensive to create BARS. They also demand several appraisal forms to accommodate different types of jobs in an organization. In a college, lecturers, office clerks, library staff, technical staff and gardening staff all have different jobs; separate BARS forms would need to be developed for each. In view of the lack of compelling evidence demonstrating the superiority of BARS over traditional techniques such as graphic rating scales. Decotis concluded that: It may be time to quit hedging about the efficacy of behavioral scaling strategies and conclude that this method has no clear-cut advantages over more traditional and easier methods of performance evaluation. (g) Forced choice method: This method was developed to eliminate bias and the preponderance of high ratings that might occur in some organizations. The primary purpose of the forced choice method is to correct the tendency of a rater to give consistently high or low ratings to all the employees. This method makes use of several sets of pair phrases, two of which may be positive and two negative and the rater is asked to indicate which of the four phrases is the most and least descriptive of a particular worker. Actually, the statement items are grounded in such a way that the rater cannot easily judge which statements apply to the most effective employee. The following box is a classic illustration of the forced choice items in organizations.

Table: Forced Choice Items 1. Least A B Does not anticipate difficulties Grasps explanations easily and quickly 47 Most A B

C D 2. Least A B C D

Does not waste time Very easy to talk to Can be a leader Wastes time on unproductive things At all times, cool and calm Smart worker

C D Most A B C D

The favorable qualities earn a plus credit and the unfavorable ones earn the reverse. The worker gets over plus when the positive factors override the negative ones or when one of the negative phrases is checked as being insignificantly rated. They overall objectivity is increased by using this method in evaluation of employee's performance, because the rater does not know how high or low he is evaluating the individual as he has no access to the scoring key. This method, however, has a strong limitation. In the preparation of sets of phrases trained technicians are needed and as such the method becomes very expensive. Further, managers may feel frustrated rating the employees in the dark'. Finally, the results of the forced choice method may not be useful for training employees because the rater himself does not know how he is evaluating the worker. In spite of these limitations, the forced choice techniques is quite popular. (h) Management by Objectives (MBO): MBO represents a modern method of evaluating the performance of personnel. Thoughtful managers have become increasingly aware that the traditional performance evaluation systems are characterized by somewhat antagonistic judgments on the part of the rater. There is a growing feeling nowadays that it is better to make the superior work with subordinates in fixing goals. This would inevitably enable subordinates to exercise self-control over their performance behaviors. The concept of management by objectives is actually the outcome of the pioneering works of Drucker, McGregor and Odiorne in management science. Management by objectives can be described as a process whereby the superior and subordinate managers of an organization jointly identify its common goals, define each individuals' major areas of responsibility in terms of results expected of him and use these measures as guides for operating the unit and assessing the contributions of each of its members. MBO thus represents more than an evaluation programme and process. Practicing management scientists and pedagogues view 48

it as a philosophy of managerial practice; it is a method by which managers and subordinates plan, organize, control, communicate and debate.

Features
MBO emphasizes participative set goals that are tangible, verifiable and measurable. MBO focuses attention on what must be accomplished (goals) rather than how it is to be accomplished (methods). MBO, by concentrating on key result areas translates the abstract philosophy of management into concrete phraseology. The technique can be put to general use (nonspecialist technique). Further it is a dynamic system which seeks to integrate the company's need to clarify and achieve its profit and growth targets with the manager's need to contribute and develop himself. MBO is a systematic and rational technique that allows management to attain maximum results from available resources by focusing on achievable goals. It allows the subordinate plenty of room to make creative decisions on his own.

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CHAPTER-3

50

INDUSTRY PROFILE
The human potential is the crux of organization effectiveness. Appraising human Potential in a scientific and systematic manner paves way for enhanced corporateperformance. This research paper tries to shed light on the relevance, scope and applicability of potential appraisal system as an emerging approach for organizational development.Potential represents latent capacities and qualities in a person which manifests while performing the job .Potential refers to the abilities present but not currently utilized. A newsystem of developing employees for occupying higher positions in an organization is called potential appraisal. Potential appraisal is to identify the potential of a given employees to occupy higher positions in the organizational hierarchy and undertake higher responsibilities. In Indian organizations, it is a normal practices to promote people on the basis of their past performance. Most of the organizations are hierarchical in nature. In such organizations, the functions and responsibilities depend upon the level at which the role is located in the organizational hierarchy. Potential appraisal system should be designed by linking other HRDsub-systems like human resource planning career planning and development, Counseling, Communication and Job evaluation. Some characteristics representing potential are: 1. Ability to foresee future opportunities and assess impact of any initiative. 2. Ability to identify resources gaps by the use of basic intelligence/ knowledge/ skill. 3. To display high degree of personal and intellectual integrity at all times. 4. Ability to function in varied departments with confidence and deliver high Performance.

51

COMPANY PROFILE
Maruti Suzuki India Limited is a publicly listed automaker in India. It is a leading four-wheeler automobile manufacturer in South Asia. Suzuki Motor Corporation of Japan holds a majority stake in the company. It was the first company in India to mass-produce and sell more than a million cars. It is largely credited for having brought in an automobile revolution to India. It is the market leader in India and on 17 September 2007, Maruti Udyog was renamed Maruti Suzuki India Limited. The company headquarter is in HYD, Haryana (near Delhi). Profile Maruti Suzuki is one of India's leading automobile manufacturers and the market leader in the car segment, both in terms of volume of vehicles sold and revenue earned. Until recently, 18.28% of the company was owned by the Indian government, and 54.2% by Suzuki of Japan. The Indian government held an initial public offering of 25% of the company in June 2003. As of May 10, 2007, Govt. of India sold its complete share to Indian financial institutions. With this, Govt. of India no longer has stake in Maruti Udyog. Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India, its' only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti has produced over 5 Million vehicles. Marutis are sold in India and various several other countries, depending upon export orders. Cars similar to Marutis (but not manufactured by Maruti Udyog) are sold by Suzuki and manufactured in Pakistan and other South Asian countries. The company annually exports more than 50,000 cars and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Alto tops the sales charts and Maruti Swift is the largest selling in A2 segment.

52

More than half the cars sold in India are Maruti cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti. The rest is owned by the public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange in India. Maruti Suzuki was born as a government company, with Suzuki as a minor partner to make a people's car for middle class India. Over the years, the product range has widened, ownership has changed hands and the customer has evolved. What remains unchanged, then and now, is Marutis mission to motorise India. Partner for the Joint venture Pressure started mounting on Indira and Sanjay Gandhi to share the details of the progress on the Maruti Project. Since country's resources were made available by mother to her son's pet project. A delegation of Indian technocrats was assigned to hunt a collaborator for the project. Initial rounds of discussion were held with the giants of the automobile industry in Japan including Toyota, Nissan and Honda. Suzuki Motor Corporation was at that time a in the two small player in the four wheeler automobile sector and had major share wheeler segment. Suzuki's bid was considered negligible.

Industrial relations For most of its history, Maruti Udyog had relatively few problems with its labour force. Its emphasis of a Japanese work culture and the modern manufacturing process, first instituted in Japan in the 1970s, was accepted by the workforce of the company without any difficulty. Authorized service stations Maruti is one of the companies in India which has unparalleled service network. To ensure the vehicles sold by them are serviced properly, Maruti has 2628 listed Authorized service stations and 30 Express Service Stations on 30 highways across India. Service is a major revenue generator of the company. Most of the service stations are managed on franchise basis, where Maruti trains the local staff. Other automobile companies have not been able to match this benchmark set by Maruti. The Express Service stations help many stranded vehicles on the highways by sending across their repair man to the vehicle. 53

Maruti insurance Launched in 2002 Maruti provides vehicle insurance to its customers with the help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited This service started as a benefit or value addition to customers and was able to ramp up easily. By December 2005 they were able to sell more than two million insurance policies since its inception. Maruti Finance To promote its bottom line growth, Maruti launched Maruti Finance in January 2002. Prior to the start of this service Maruti had started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan.[15] Maruti tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard Chartered Bank, and Sundaram to start this venture including its strategic partners in car finance. Again the company entered into a strategic partnership with SBI in March 2003[16] Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBI-Maruti Finance is currently available in 166 cities across India Maruti Driving School As part of its corporate social responsibility Maruti Udyog launched the Maruti Driving School in Delhi. Later the services were extended to other cities of India as well. These schools are modelled on international standards, where learners go through classroom and practical sessions. Many international practices like road behavior and attitudes are also taught in these schools. Before driving actual vehicles participants are trained on simulators.

Exports Maruti Suzuki has helped India emerge as the fourth largest exporter of automobiles in Asia. Shown here is Maruti Gypsy in Hyderabad . 54

Maruti Exports Limited is the subsidiary of Maruti Udyog Limited with its major focus on exports and it does not operate in the domestic Indian market. The first commercial consignment of 480 cars were sent to HYD. By sending a consignment of 571 cars to the same country Maruti crossed the benchmark of 300,000 cars. Since its inception export was one of the aspects government was keen to encourage. Every political party expected Maruti to earn foreign currency. The objectives of the study are:

To narrate the profile of the company

Overview of Maruti and Suzuki Building understanding of the car market in India and various segments

To study the HRM of the company

To enhance my knowledge about Recruitment and Selection. To convert my theoretical knowledge into practical knowledge. To prepare myself as a H.R. person who can easily identify the training need through his experience which is very essential quality of a H.R. Person & for the organization as well. To enhance my knowledge about Training & Development

To analysis the Marketing Management of the Company

Understand MULs product range and positioning in each segment Understanding the basics in the automobile industry Overview of each Maruti model and the MUL Advantage Overview of the selling process and how to uncover needs of a customer to do need based selling

To study the financial position of the company

Role of financing as a sales tool and the various financing options available Ensuring Company effectiveness in implementing accounting standards Analyzing companys financial statements in ratios

Type

Public (BSE MARUTI, NSE MARUTI)

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Founded Headquarters Key people Industry Products Revenue Employees Parent Website

1981 [1] HYD, Haryana, India Mr. Shinzo Nakanishi, Managing Director and CEO Automotive Cars US$3.5 billion (2009) 6,903 [2] Suzuki MarutiSuzuki.com

1981 1982 1983 1984 1985 1986 1987 1988 1992 1994 1995 1996 1997 1998 1999 2000 2001 2002

MILE STONES Maruti Udyog Ltd. was incorporated. Steped into a JV with SMC of Japan. Maruti 800, a 796 cc hatchback, India's first affordable car was produced. Installed capacity reached 40,000 units. Omni, a 796 cc MUV was in production. Launch of Maruti Gypsy (970cc, 4WD off-road vehicle). Produced 100,000 vehicles (cumulative production). Exported first lot of 500 cars to HYD Installed capacity increased to 100,000 units. SMC increases its stake to 50 per cent. Produced the 1 millionth vehicle since the commencement of production. Second plant launched, the installed capacity reached 200,000 units. Launch of 24-hour emergency on-road vehicle service. Produced the 2 millionth vehicle since the commencement of production. Launch of website as part of CRM initiatives. Launch of Maruti - Suzuki innovative traffic beat in Delhi and Chennai as social initiatives. IDTR (Institute of Driving Training and Research) launched jointly with Delhi government to promote safe driving habits. Launch of customer information centers in Hyderabad, Bangalore, and Chennai. SMC increases its stake to 54.2 per cent. Launch of Maruti Finance with 10 finance companies in Mumbai. 56

2003 2004 2005 2007 2008 2009

Start of Maruti True value in Mumbai. Production of 4 millionth vehicle. Listed on BSE and NSE after a public issue oversubscribed 10 times. Maruti closed the financial year 2003-04 with an annual sale of 472122 units, the highest ever since the company began operations 20 years ago. The fiftieth lakh car rolls out in April, 2005. Swift diesel launched. World premier of concept A-star at 9th expo. Ritz has launched.

57

JOURNEY OF MARUTHI SUZUKI Feb 1981 - The result, Maruti Suzuki India Limited (MSIL) was born in February 1981. Maruti Suzuki started as a government company, with Suzuki as a minor partner, to make a people's car for middle class India. Over the years, the company's product range has widened and ...The result, Maruti Suzuki India Limited (MSIL) was born in February 1981. Maruti Suzuki started as a government company, with Suzuki as a minor partner, to make a people's car for middle class India. Over the years, the company's product range has widened and ownership has changed hands. A subsidiary of Suzuki Motor Corporation (SMC) of Japan, the Maruti Suzuki India Limited headquartered in Delhi, running with 3 vehicle assembly plants at HYD and 1 vehicle assembly.

1983

Dec 14, 1983 - Maruti completes 25 years Maruti Suzuki recently completed 25 years. On December 14, 1983, the first Maruti 800, India's iconic car, rolled off the assembly line at the company's HYD plant. Since then, Maruti Suzuki has produced and sold around
1.

2000

Nov 21, 2000 - Also, Suzuki is registered under trademark laws in various countries. They hybrid trademark 'Maruti Suzuki' has been used on products of the joint venture company in India. The Indore-based World Information Pages had claimed that the word Maruti is name of an Indian god.
2.

2002

Jan 25, 2002 - The rights issue will thus witness Suzuki becoming the largest shareholder in Maruti. In return for this, the Government will get a renunciation premium for forgoing its portion of the rights in favour of Suzuki as well as control premium for giving up majority control in Maruti to the .
3.

2003

May 31, 2003 - Osamu Suzuki, chairman & CEO, Suzuki Motor Corporation, said: "Maruti is controlled by Suzuki and will continue to be managed by Suzuki in India." Responding to queries on the future control of Maruti, Suzuki said: "General Motors has a 20 per cent stake in Suzuki, Japan.
4.

2004

May 2004 - Maruti Suzuki's all-conquering hatchback Swift has just added another feather to its crown by becoming the fastest car model to reach the 3-lakh 58

milestone. Launched in May 2005, the sporty car achieved this feat in only three years and eight months. On the occasion .Maruti Suzuki's all-conquering hatchback Swift has just added another feather to its crown by becoming the fastest car model to reach the 3-lakh milestone. Launched in May 2005, the sporty car achieved this feat in only three years and eight months. On the occasion, Maruti Suzuki's Managing Executive Officer (Marketing and Sales), Mayank Read More... Email This Filed Under: Maruti.
5.

200 5

June 26, 2005 - Maruti Suzuki's all-conquering hatchback Swift has just added another feather to its crown by becoming the fastest car model to reach the 3-lakh milestone. Launched in May 2005, the sporty car achieved this feat in only three years and eight months. On the occasion

2006 Nov 13, 2006 - The former India bureaucrat is managing director of Maruti Suzuki, the Indian subsidiary of Suzuki Motor, the Japanese automaker's biggest operation outside of ... Such are the current competitive dynamics facing Maruti Suzuki in one of the fastest-growing auto markets in the world
6.

2007

Dec 11, 2007 - India's rapidly expanding automobile market is key for Suzuki, its chairman has often said. Maruti Suzuki, in which Suzuki owns a 54.2% stake, is expanding its lineup and dealer network here. Suzuki also faces competition from global automakers like Toyota (nyse: TM - news - people ). Apr 25, 2008 - `The best year': Mr S. Nakanishi, Managing Director and CEO, Maruti Suzuki India Ltd, addressing a press conference in the Capital on ... Announcing the results, Mr Shinzo Nakanishi, the company's Managing Director, said, "The year 2007-08 was the best year in the history of Maruti." Jul 1, 2009 - MUMBAI, July 1 (Reuters) - Maruti Suzuki, India's top car maker, said its car sales rose 22.6 percent in June, up for the six month in a row, 'This month's export numbers are the highest ever monthly export volume in the company's history,' Maruti said in a statement on Wednesday. ...

7.

2008

8.

2009

9.

59

VISION & VALUES VISION VALUES

The leader in the Indian Automobile Industry, creating CUSTOMER customer delight and shareholders wealth A pride of India. OBSESSION FAST, FLEXIBLE & FAST MOVER INNOVATION AND CREATIVITY NETWORKING AND PARTNERSHIP OPENNESS AND LEARNING BOARD OF DIRECTORS Name R C Bhargava Shuji Oishi Keilchi Asai Kenichi Ayukawa Pallavi Shroff Davinder Singh Brar Designation Chairman / Chair Person Director Director Director Director Director Name Shinzo Nakanishi Tsuneo Ohashi Osamu Suzuki Amal Ganguli Manvinder Singh Banga Hirofumi Nagao Designation Managing Director & CEO Director Director Director Director Director

HUMAN RESOURCE MANAGEMENT: Personnel management is that part of management process which is primarily concerned with the human constituents of an organization. Objectives: To help the organization reach its goals. 60

To employ the skills and abilities of the workforce efficiently. To provide the organization with well-trained and well-motivated employees. To increase to the fullest the employees job satisfaction and self-actualization. To develop and maintain a quality of work life. To communicate HR policies to all employees. To be Ethically and Socially Responsive to the needs of society.

HR VISION: Lead and Facilitate continuous Change towards organizational Excellence ; create a learning And vibrant organization with High sense of pride amongst its Members CULTURE BUILDING INITIATIVES SINCE INCEPTION:

Japanese Spirit Management philosophy of Team Common uniform Open office Common Canteen

FOCUS OF EFFECTIVE MANAGENENT PROCESS Top Driven HR MD is also Director HR HRs role of a facilitator Line managers as HR Managers Year of the Customer HR INTERNAL CUSTOMER FOCUS Focus on Internal & External Customer

61

CHAPTER -4

62

ANALYSIS OF THE PA ANALYSIS OF THE PA 1. Employees Opinion as to the Purpose of Potential Appraisal

Potential standards / yardsticks Options Yes No Response 84 16

100 80 60 40 20 0 Response Y es No

The above graph represents opinion of the appraisal to get promotion on performance based potential appraisal 84% said yes for the purpose of potential standard in organization.

63

2. Awareness of technique of Potential Appraisal being followed at BSNL among Employees Options Yes No Response 72 28

80 70 60 50 40 30 20 10 0 R esponse Y es No

The above graph represents opinion of the appraisal to get promotion on performance based potential appraisal 84% said yes for the purpose of potential standard in organization.

64

3. Number of Employees being appraised during their service period Options Yes No Response 68 32

70 60 50 40 30 20 10 0 R pons es e Y es No

The above graph represents opinion of the appraisal to get promotion on performance based potential appraisal 84% said yes for the purpose of potential standard in organization.

65

4. Employees opinion as to the present appraisal system Options Fully Satisfied Satisfied Cant Say Dissatisfied Responses (in %) 64 24 2 10

70 60 50 40 30 20 10 0 Resp ses (in % on ) Fu S lly atisfied S atisfied C t S an ay Dissatisfied

The above graph represents opinion of the appraisal to get promotion on performance based potential appraisal 84% said yes for the purpose of potential standard in organization.

66

3. Employee perception as to the frequency of appraisal Options Once During The Service Period Continuous Never Cant Say Response (in %) 2 92 0 6

100 80 60 40 20 0 Once DuringThe S ervice P eriod C ontinuous Never C ant S ay Response (in % )

The above graph represents opinion of the appraisal to get promotion on performance based potential appraisal 84% said yes for the purpose of potential standard in organization.

67

4. If continuous appraisal what should be the gap between two appraisal period Options Quarterly Half Yearly Yearly Response (in %) 20 44 36

50 40 30 20 10 0 R pons (in % es e ) Qua rterly H lf Y rly a ea Yea rly

The above graph represents opinion of the appraisal to get promotion on performance based potential appraisal 84% said yes for the purpose of potential standard in organization.

68

5. How Potential Appraisal affects the productivity of the employees

Motivated + Feedback 38 - Feedback 12

Indifferent

Demotivated

12

10

28

Neutral

24

21

90 80 70 60 50 40 30 20 10 0
The above graph represents opinion of the appraisal to get promotion on performance based potential appraisal 84% said yes for the purpose of potential standard in organization.

20.4 30.6 45.9

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6. Who should do the appraisal? Options Superior Peer Subordinate Self Appraisal Consultant All of the above Superior + Peer Response ( in % ) 24 0 0 8 4 48 16

50 S uperior 40 30 20 10 0 Peer S ubordina te S Appra a elf is l C ulta ons nt All ofthe a e bov S uperior +Peer

The above graph represents opinion of the appraisal to get promotion on performance based potential appraisal 84% said yes for the purpose of potential standard in organization.

7 Does appraisal help in polishing skills and Potential area?

70

Options Yes No Somewhat

Response ( in % ) 74 10 16

80 60 es Y 40 20 0 Resp se ( in %) on No om S ewhat

If the process of appraisal does not lead to the improvement of the skills and proficiency of the employees, the very purpose of appraisal becomes illogical. In the survey conducted it was observed that nearly 74 % of the respondents agree that Potential 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.

71

Does personal bias creeps-in while appraising an employee

Options Yes No

Response ( in % ) 18 82

100 80 60 40 20 0 R pons (in%) es e Yes No

In the process of appraising, both the parties are human being, that is, the one who is being apprised and the other who is appraising. Thus, there bound to be subjectivity involved, be it an objective way of appraising. Thus, when asked from among the sample size of 50 respondents, as small as merely 18 % respond ended that personal bias do creep in while appraising an individual. Hence, it is inevitable to say that personal likings do not come in the process of appraisal. It is the extent to which the appraiser manages it so that it does not become very partial and bias.

72

If given a chance, would employees like to review the current appraisal technique? Options Yes No Cant Say Response ( in % ) 72 4 24

80 60 es Y 40 20 0 Resp se ( in %) on No an S C t ay

The above graph shows its tells showing of the repose for employers for the current appraisal.

73

The above graph shows employers appraisal techniques to review appraisal techniques ? Appropriate method of conducting the Potential appraisal 12% 0% 20% 58% 4% 6% Rating Scale Paired Comparison Critical Incident MBO Assessment Centre 360 Degree

74

CHAPTER -5

75

LIMITATIONS

A few limitations and constraints came in way of conducting the present study, under which the researcher had to work are as follows:

Although all attempts were made to make this an objective study, biases on the part of respondents might have resulted in some subjectivity.

Though, no effort was spared to make the study most accurate and useful, the sample Size selected for the same may not be the true representative of the Company, resulting in biased results.

This being the maiden experience of the researcher of conducting study such as this, the possibility of better results, using deeper statistical techniques in analyzing and interpreting data may not be ruled out.

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SUGGESTIONS
After having analyzed the data, it was observed that practically there is a constant emphasis on Potential appraisal in the organization. To be an effective tool, it has to be on the continuous basis. This is the thing that has been mentioned time and again in the report, as, in the absence of continuity, it becomes a redundant exercise. Before actually deciding drafting what should be the kind of appraisal the following things should be taken care of: 1. The very concept of Potential appraisal should be marketed throughout the organization. Unless this is done, people would not accept it, be it how important to the organization. 2. To market such a concept, it should not start at bottom, instead it should be started by the initiative of the top management. This would help in percolating down the concept to the advantage of all, which includes the top management as well as those below them. This means that the top management has to take a welcoming and positive approach towards the change that is intended to be brought. 3. Further, at the time of confirmation also, the appraisal form should not lead to duplication of any information. Instead, detailed appraisal of the employees work must be done which must incorporates both the work related as well as the other personal attributes that are important for work Potential. 4. It should be noted that the appraisal form for each job position should be different as each job has different knowledge and skill requirements. There should not be a common appraisal form for every job position in the organization. 5. The job and role expected from the employees should be decided well in advance and that too with the consensus with them.

77

CHAPTER-6

78

CONCLUSION

A neutral panel of people should do the appraisal and to avoid subjectivity to a marked extent, objective methods should be employed having quantifiable data.

The time period for conducting the appraisal should be revised, so that the exercise becomes a continuous phenomenon.

Transparency into the system should be ensured through the discussion about the employees Potential with the employee concerned and trying to find out the grey areas so that training can be implemented to improve on that.

Ideally in the present day scenario, appraisal should be done, taking the views of all the concerned parties who have some bearing on the employee. But, since a change in the system is required, it cannot be a drastic one. It ought to be gradual and a change in the mindset of both the employees and the head is required.

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QUESTIONNAIRES
1.Should the appeasal performance evaluation? 1 a) Fully Satisfied c) Cant Say b) Satisfied d) Dissatisfied b) Continuous d) Cant Say

2. Should the appraisal process be? a) Once during the service period c) Never

3 What in your opinion should be the time period of conducting continuous Appraisal? a) Quarterly b) Half Yearly c) Yearly

4. Any specific reason Does Potential Appraisal helps in improving the productivity of the employees? Motivated + Feedback - Feedback Neutral Indifferent Demotivated

5.

Who in your opinion should appraise the employee? a) Superior c) Subordinates e) Consultant b) Peer d) Self Appraisal f) All of the above

06. Does the appraisal system helps in polishing the skills or Potential area? a) Yes b) No c) Somewhat

07. Do you think personal bias creeps in while appraising an individual? a) Yes b) No

80

08.

If given a chance or an opportunity would you like that the current appraisal procedure should be reviewed? a) Yes b) No c) Cant Say

09.

What according to you should be the appropriate method for conducting Potential appraisal? a) Rating the employee on number of traits along with the range of Potential for each by the supervisor. b) For every trait, each subordinate is paired with and compared to every other Subordinate. c) Reviewing employees on the basis of identified specific examples of good Or poor Potential. d) Setting specific measurable goals with each employee and periodically reviewing the progress made. e) Reviewing Potential through case studies, presentations, role playing, etc. for future Potential. f) Receiving feedback from people whose views are considered helpful and relevant including the appraise himself.

10 Does Potential Appraisal leads to identification of hidden potential of the employees? a) Yes b) No

11. Suggestions and views............................... Thank you, 12 How is Appraisal done? Date --/--/--

)Formal

) Informal

(
81

)Combination of these

13. Who potential appraises?

( (

)Immediate Supervisor ) Subordinates

( (

) Rating Committee ) HR Department

( (

) Peers ) HOD

14. Which method do you follow in these? ( )Rating method ( )Interview or discussion ( )Force choice description ( ) MBO ( )Checklist method ( )Human asset accounting ( )Critical Incidents Method ( )360 degree appraisal ( )Confidential Method ( )Psychological Appraisals (Any other, please specify) 8) On what basis do you appraise an employee?

( ) Traits ( ) Job behavior

( ) Results ( ) A combination of these. (Please specify)

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14. Is goal setting a part of your PA system?

)Yes ( ) No If yes, when is it normally done? ( ) every year ( ( ) every day ( ) every week ( ) every month )Top Management ( ) HR manager

At the beginning of:

Who does it. ( If other specify

) Supervisors ( ) HOD

14 Is Performance Appraisal a motivating factor for employees?

( (

)For all employees. ) For very few employees.

( (

) For some employees. ) For none of the employees.

15 Does an Appraisal keep notes on the major achievements and failures of his/her appraise?

) Yes (

) No

If no, what are the reasons? required.

) It is difficult to keep records or ( ) It is not

12) When was the current Performance Appraisal system introduced in the organization? 12. Has there been a change in the Performance Appraisal system in your n? ( ) All ( ) Some ( )Very few ( ) None 15) According to you, Performance Appraisal is a ------% correct indicator of an employees developmental/ training needs?

) 100%

) 75%

) 50% (

( (

) 25% )No

16) Is Self-Appraisal a part of your system? ( ) Yes If yes, for which cadre of employees? ( )Executives level Management If other specify,

) Top

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BIBLIOGRAPHY

People Management - By Stephen B Robinson

Human Resource Management - By K Ashwatappa

www.Humanlinks.com

WWW.wekipedia.com

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