CHAPTER-1

INTRODUCTION TO

THE STUDY

1
 Performance appraisal

Introduction

The process of obtaining, analyzing and recording information about the relative worth of an
employee. The focus of the performance appraisal is measuring and improving the actual
performance of the employee and also the future potential of the employee. Its aim is to measure
what an employee does.

According to Flippo, a prominent personality in the field of Human resources, "performance

appraisal is the systematic, periodic and an impartial rating of an employee‟s excellence in the
matters pertaining to his present job and his potential for a better job." Performance appraisal is a
systematic way of reviewing and assessing the performance of an employee during a given
period of time and planning for his future.

It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to
analyze his achievements and evaluate his contribution towards the achievements of the overall
organizational goals performance appraisal, employee appraisal, performance review, or (career)
development discussion[1] is a method by which the job performance of
an employee is evaluated (generally in terms of quality, quantity, cost, and time) typically by the
corresponding manager or supervisor.[2] A performance appraisal is a part of guiding and
managing career development. It is the process of obtaining, analyzing, and recording
information about the relative worth of an employee to the organization. Performance appraisal
is an analysis of an employee's recent successes and failures, personal strengths and weaknesses,
and suitability for promotion or further training. It is also the judgement of an employee's
performance in a job based on considerations other than productivity alone.

The history of performance appraisal is quite brief. Its roots in the early 20th century can be
traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same
may be said about almost everything in the field of modern human resources management. As a

2
distinct and formal management procedure used in the evaluation of work performance, appraisal
really dates from the time of the Second World War - not more than 60 years ago.

Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things
historical, it might well lay claim to being the world's second oldest profession!

There is, says Dulewicz (1989), "... a basic human tendency to make judgements about those one
is working with, as well as about oneself." Appraisal, it seems, is both inevitable and universal.
In the absence of a carefully structured system of appraisal, people will tend to judge the work
performance of others, including subordinates, naturally, informally and arbitrarily..

The process was firmly linked to material outcomes. If an employee's performance was found to
be less than ideal, a cut in pay would follow. On the other hand, if their performance was better
than the supervisor expected, a pay rise was in order.

Little consideration, if any, was given to the developmental possibilities of appraisal. If was felt
that a cut in pay, or a rise, should provide the only required impetus for an employee to either
improve or continue to perform well.

Sometimes this basic system succeeded in getting the results that were intended; but more often
than not, it failed.

For example, early motivational researchers were aware that different people with roughly equal
work abilities could be paid the same amount of money and yet have quite different levels of
motivation and performance.

These observations were confirmed in empirical studies. Pay rates were important, yes; but they
were not the only element that had an impact on employee performance. It was found that other
issues, such as morale and self-esteem, could also have a major influence.

As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s
in the United States, the potential usefulness of appraisal as tool for motivation and development

3
was gradually recognized. The general model of performance appraisal, as it is known today,
began from that time.

Modern Appraisal

Performance appraisal may be defined as a structured formal interaction between a subordinate

and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in
which the work performance of the subordinate is examined and discussed, with a view to
identifying weaknesses and strengths as well as opportunities for improvement and skills
development.

In many organizations - but not all - appraisal results are used, either directly or indirectly, to
help determine reward outcomes. That is, the appraisal results are used to identify the better
performing employees who should get the majority of available merit pay increases, bonuses,
and promotions.

By the same token, appraisal results are used to identify the poorer performers who may require
some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay.
(Organizations need to be aware of laws in their country that might restrict their capacity to
dismiss employees or decrease pay).

Whether this is an appropriate use of performance appraisal - the assignment and justification of
rewards and penalties - is a very uncertain and contentious matter.

In today's litigious society, having formal documentation of an employee's performance is an

important protection device. Detailed record of poor performance and unmet goals can be an
effective counter to claims of bias in the case of a dismissed worker and arc often held up by the
courts as legitimate, justification for termination

4
 OBJECTIVES

Employee Performance Management has been designed to achieve the following objectives: -

 To effect promotions based on competence and performance.

 To assess the training and development needs of employees.
 To decide upon a pay raise where (as in the unorganized sector) regular pay scales have not
been fixed.
 To let the employees know where they stand in so far as their performance is concerned and
to assist them with constructive criticism and guidance for the purpose of their development.
 To improve communication. Performance appraisal provides a format for dialogue between
the superior and the subordinate, and improves understanding of personal goals and concerns.
This can also have the effect of increasing the trust between the rater and the ratee.
 Finally, performance appraisal can be used to determine whether HR programs such, as
selection, training and transfers have been effective or not.
 Provide inputs for salary increments, additional responsibilities and promotions.

 Develop the competences of employees and improve their performance;

 Help people to grow within the organization in order that, as far as possible, its future
needs for human resource can be met from within;

 Reduce the learning time for employees starting in new jobs on appointment, transfers or
promotion, and ensure that they become fully competent as quickly and economically as
possible

5
Broadly, Performance Management serves four objectives: -

Table below outlines these and specific uses more c1early:-

Multiple Purposes of Performance Assessment

General Applications Specific Purpose

Developmental Uses Identification of individual needs

Performance feedback

Determining transfers and job assignments

Administrative Uses/Decisions Salary

Promotion

Retention or Termination

Lay-offs

Identification of poor performers

Organizational Maintenance/Objectives HR Planning

Determining organization training needs

Evaluation of organizational goal

achievement

Information for goal identification

Evaluation of HR systems Reinforcement
of organizational

6
 IMPORTANCE

In today's fast-paced business world, it may seem like a chore for organizations to spend
precious resources planning, developing and engaging m employee performance management.
The three key reasons for every organization to give performance reviews are:

1. Performance Management help employees become better workers:

All good managers provide regular feedback to employees so that they can develop into skilled
workers that will be useful to the organization. A written performance evaluation is a way of
formalizing this feedback and lets employees know that how they perform counts. A formal
review also allows employees to take a stop back from what they are doing, to focus on how
well they are doing it. From this vantage point, they can make action plans to improve or alter
behavior and set new personal goals. Encouraging people' to work to their full potential is the
ultimate goal of a performance evaluation.

2. Performance Management can help determine employees compensation:

As pay-for-performance compensation grows in importance, so too docs the need for an
objective performance metric. The best evaluation forms serve this purpose and bring clarity to
the manner" in which employees are compensated. From sales people, who are paid by their
ability to "meet plan", to non-revenue generating workers whose goals are less tangible,
performance appraisals serve to state objectives and "then measure the degree to which those
objectives are achieved.

3. Performance Management can protect organizations:

In today's litigious society, having formal documentation of an employee's performance is an
important protection device. Detailed record of poor performance and unmet goals can be an
effective counter to claims of bias in the case of a dismissed worker and arc often held up by the
courts as legitimate, justification for termination

7
 CHAPTER-2

INDUSTRY & COMPANY

PROFILE

8
 INDUSTRY PROFILE

HVDC

HVDC (high-voltage direct current) is a highly efficient alternative for transmitting large
amounts of electricity over long distances and for special purpose applications. As a key enabler
in the future energy system based on renewables, HVDC is truly shaping the grid of the future.
HIGHLIGHTS
Why HVDC?
Power stations generate alternating current (AC) electricity, and consumers get AC power in
their sockets - so where does HVDC fit in?

ABB enables world‟s first HVDC grid in China

ABB brings latest technology solutions to WindEnergy Hamburg 2018
ABB wins major order to enable transmission of clean energy in Central Asia
Press release
ABB to supply HVDC converter stations as part of US $330 million consortium project with
Cobra, to bring hydropower to consumers in Pakistan

9
MITSUBISHI ELECTRIC COMPANY

MITSUBISHI ELECTRIC IN INDIA

Mitsubishi Electric is a well-known brand and Global Leader in Electric and Electronic
Equipment for Residential, Commercial and Industrial use. Mitsubishi Electric has presence
across India with a large distribution channel which is expanding to more cities.
Mitsubishi Electric India offers complete solution for factory automation and industrial products,
residential, commercial and industrial air conditioning, video and imaging products and
provision for technical and marketing support for power semiconductors, photovoltaic modules,
transportation, power systems and CNC solutions.

Mitsubishi Electric India participated in Automation Expo 2018

29th August to 1st September 2018:Mitsubishi Electric India participated was held at the
Bombay Convention and Exhibition Center, Mumbai. Automation Expo is the largest
Automation & Instrumentation exhibition of South-East Asia. It is a good platform to display the
products and solutions from MEI- MEI-FACTORY AUTOMATION AND INDUSTRIAL
DIVISION (FAID) and CLPA India.

Mitsubishi Electric India participated in ACMEE 2018

Mitsubishi Electric India participated in ACMEE 2018, a five-day machine tool show, heldfrom
21st to 25th June 2018 at the Chennai Trade Centre. The 13thpresentation of ACMEE series was
organized by the Ambattur Industrial Estate Manufacturers Association (AIEMA) and AIEMA
Technology Centre. A record number of 45600 visitorswitnessed the fair which was spread wide
5 Halls. The event focused on the latest in machine tools technology available in different parts
of the world with emphasis on Energy Saving Solutions, Improving Productivity and Industrial

10
Automation. The product profile included CNC, Special Purpose Machines, Hydraulics,
pneumatics, instrumentation, cutting tools, low cost automation, industrial robotics, welding, etc.
Mitsubishi Electric Group Companies in India support aspiring youngsters of PU College,
Naraspura
Donated 175 bicycles to 78 boys and 97 girl students as a part of their corporate social
responsibility program. Naraspura is a village in the outskirts of Bangalore which is now being
developed as a progressive industrial corridor by KIDB. The Mitsubishi Elevators India
manufacturing facility is also located in this region which manufactures residential and
commercial use Japanese quality elevators at this factory.
Mitsubishi Electric India inaugurates exclusive MEQ Cooling Planet Showroom in
Gurgaon
Mitsubishi Electric India (MEI) recently inaugurated its exclusive and unique concept showroom
MEQ Cooling Planet for air conditioners at Seva Corporate Park. Shop No. G-2A, Mehrauli
Gurgaon Road, Near MG Road Metro Station, Gurgaon Haryana. Mitsubishi Electric have been
world leaders in air conditioning systems for residential, commercial and industrial use since
decades. Mitsubishi Electric Quality (MEQ), measures the quality to give best experience in our
products, services, partnership and people. MEQ Cooling Planet is a unique concept showroom
that clubs together Mitsubishi Electric‟s world class technology and affordability. MEQ Cooling
Planet offers a range of the company‟s products with quality and durabilityat a lower ownership
cost. These showrooms are designed to encourage residential and commercial customers to have
a touch and feel of MEI products.

Mitsubishi Electric India Inaugurates Exclusive MEQ Hiroba -- a unique concept

showroom for Air Conditioners in Gurgaon.
Mitsubishi Electric, a global leader in premium Air-conditioners, inaugurated an exclusive and
unique „concept showroom‟ for residential use, Air-conditioners at 612/613 , Nehru Lane, Laxmi
Bazar , New Colony , Gurgaon. This exclusive showroom is referred to as MEQ Hiroba, which
offers the range of Mitsubishi Electric products with highly advanced technology, quality and
durability at a sustainable cost. Mitsubishi Electric Quality (MEQ), measures the quality to give
best experience in our products, services, partnership and people. Hiroba in Japanese means a

11
public space for people to gather and MEQ Hiroba will be the platform where new technologies
are announced.
Mitsubishi Electric India Inaugurates Exclusive MEQ Hiroba -- a unique concept
showroom for Air Conditioners in Delhi.
Mitsubishi Electric, a global leader in premium Air-conditioners, inaugurated an exclusive and
unique „concept showroom‟ for residential use, Air-conditioners at Shop no 4, KD-1, KD –
Block,Kohat Metro station, Pitampura , New Delhi. This exclusive showroom is referred to as
MEQ Hiroba, which offers the range of Mitsubishi Electric products with highly advanced
technology, quality and durability at a sustainable cost. Mitsubishi Electric Quality (MEQ),
measures the quality to give best experience in our products, services, partnership and people.
Hiroba in Japanese means a public space for people to gather and MEQ Hiroba will be the
platform where new technologies are announced.

Mitsubishi Electric’s Air-conditioner Exclusive Service Showroom Inauguration – MEQ

Senmonka
18th April 2018: Mitsubishi Electric India (MEI), Air-Conditioning Systems opened its 1st MEQ
Senmonka, an exclusive service provider at 1321, Gill Kanal Road, Guru Nanak Colony,
Ludhiana, Punjab for all its air conditioning products. Mitsubishi Electric has taken this initiative
towards enhancing post-sale service and building long-lasting relationship with its customer.
“Senmonka” is a Japanese word which means “Specialist” and MEQ Senmonka would act as a
specialist to facilitate the customer experience and engagement for all service related queries and
to provide assistance. It is company‟s continuous endeavour to impart best post sales service
experience by enhancing the customer satisfaction with trained and skilled service engineers.
Mitsubishi Electric participated in Coolex Exhibition
16th April 2018: Mitsubishi Electric Living Environment Division participated in the CII Coolex
-2018 at Chandigarh and Lucknow, an exclusive exhibition on Air-conditioning, Refrigeration
and Ventilation.
Hon. Prime Minister Mr. Narendra Modi Visits Mitsubishi Electric “Empowering
Express” at Magnetic Maharashtra 2018
18th February, 2018: Honourable. Prime Minister Mr. Narendra Modi visited the Mitsubishi
Electric caravan truck „Empowering Express‟ at Magnetic Maharashtra 2018. The „Empowering

12
Express‟ is a 7-tonne 16 wheeler virtual industrial showroom-on- wheels bristling with
technology. It carries a live demonstration of high-tech Factory Automation and Switchgear
products of Mitsubishi Electric.
3rd Mitsubishi Electric Cup ends on a high note at NIRMA University, Ahmedabad
Dayalbagh Educational Institute from Agra walked away with the winning trophy of 3rd
Mitsubishi Electric Cup February 17th, Ahmedabad: Budding engineers from some of the best
colleges across the country battled it out at the grand finale of the Mitsubishi Electric Cup
popularly known as the “ME Cup” among young engineering students. The third edition of
India‟s biggest National-Level Automation Competition was held amidst much fanfare on
February 16th and 17th at NIRMA University, Ahmedabad.

Mitsubishi Electric Air Conditioners organized Dealer Meet in Srilanka

Mitsubishi Electric Air Conditioners organized its Annual Dealers Meet 2018 at Colombo,
SriLanka from 17th to 22nd January, with a huge gathering of business partners and employees
to celebrate the successful year and hard work. The event was honored by the presence of Mr.
Yozo Ito- Director and Business Unit Head, Living Environment Division, Mitsubishi Electric
India., Mr Neeraj Gupta- General Manager, Living Environment Division, Mitsubishi Electric
India and Mr. Bhasker Pandey- Service Head, Living Environment Division, Mitsubishi Electric
India amongst other dignitaries and our esteemed business partners.

Mitsubishi Electric India, LE-Service Division, organises Authorized Service Provider

Meet in Mumbai
MEI, LE-Service Division organized two day meet for Authorized Service Providers on 14th and
15th December 2017 in Mumbai. The objective of the session was to update and educate the
service providers about products, company policies, processes and tools. The event was attended
by authorized service providers along with their respective service in charges.
Top AC segment influencers from India visit Mitsubishi Electric Corporation Air
Conditioning & Refrigeration System Works, Japan to understand advanced technology
Living Environment Division organized a special factory visit to Corporation Air Conditioning
& Refrigeration (AC&R) System Works, Wakayama, Japan. Major stakeholders and influencers
from the air conditioning segment in witnessed the facility while integrating the technological

13
know-how from these specialized air conditioning and refrigeration plants. The whole exercise
has contributed a great deal in development and manufacture of highly efficient products and
systems.
Mitsubishi Electric India Participated in Engimach 2017
The ENGIMACH is a leading engineering and machine tools show and showcase engineering
products and services, heavy and light machines, machinery equipment and accessories, tools
and parts, technological devices and products, engineering tools and allied products and services.
It was an ideal event that witnessed the best buyer and seller partnership and was a dynamic
platform from 6th to 10th December 2017. The event provided opportunities for Micro, Small
and Medium Enterprises (MSMEs) to seek business tie ups and showcase their products at global
level. It also gave investment opportunities in the innovation of technology.
Mitsubishi Electric India inaugurates unique concept showroom MEQ Hiroba for ACs at
Berhampur
(MEI) inaugurated an exclusive and unique „concept showroom‟ for residential use air-
conditioners at 1st Miltrylane, Side of Paltan Masjid, Berhampur, Odisha.
Mitsubishi Electric India, LE-Service Division, organises Authorized Service Provider
Meet in Kolkata
MEI, LE-Service Division organized two days meet for Authorized Service Providers on 2nd and
3rd November 2017 at The Sonnet Hotel, Kolkata. The objective of the session was to update
and educate the service providers about products, company policies, processes and tools. The
event was attended by authorized service providers along with their respective service in charges.
Mitsubishi Electric India, LE-Service Division, organises Authorized Service Provider
Meet in Chennai
MEI, LE-Service Division organized meet for Authorized Service Providers on Tuesday, 11th
October 2017 in Chennai. The objective of the session was to update and educate the service
providers about products, company policies, processes and tools. The event was attended by
authorized service providers along with their respective service in charges.
Mitsubishi Electric held a Tree Plantation and Cleanliness Drive
Mitsubishi Electric India organised a Tree Plantation and Cleanliness drive jointly with
Mitsubishi Elevator India and Uthaan NGO at the Green Patch near Huda City Centre Metro
Station under Metro Pillar Number 210 and 218 Central Median, Gurugram, Haryana.

14
Omron adept company

Omron Adept Technology, Inc. is a multinational corporation with headquarters

in Pleasanton, California (San Francisco Bay Area). The company focuses on industrial
automation and robotics, including software and vision guidance. Adept has offices throughout
the United States as well as in Dortmund, Germany, Paris, France, and Singapore. Adept was
acquired by Omron in October 2015.[3]

COMPANY HISTORY

Adept was founded in 1983, and was formerly the West Coast Division of Unimation, which
became part of Westinghouse after being a division of Consolidated Diesel Electronic (Condec)
for many years. However, its roots go back almost 10 years earlier, when company founders
Bruce Shimano and Brian Carlisle, both Stanford graduate students, started to work with Victor
Scheinman at Stanford's AI lab.

Automated Guided Vehicle produced by Adept Technology.

15
ROBOTS

In 2000，Adept Technology acquired Pensar Tucson Inc

Today, the company is active in a variety of industries requiring high speed, precision part
handling including food handling, consumer product and electronics, packaging, medical and lab
automation, automotive, as well as emerging markets like solar manufacturing.

In 1984, the company introduced its first product, the AdeptOne SCARA robot. The simplicity of
the mechanism, based on direct-drive motors, made AdeptOne robots very robust in continuous
industrial automation applications, while maintaining high accuracy. AdeptOnerobots continue to
be in use worldwide in 2009.

Around 2004, Adept introduced table-top SCARA robots called the Adept Cobra i600/i800, with
the system and servo controls, and the power amplifiers, embedded in the base of the robot. The
related Adept Cobra s600/s800 models employ an external controller (with the servo controls
and amplifiers still in the robot base) to achieve greater system functionality. These robots are
claimed to be the fastest robots in their class.

In 2006, Adept released its new delta-4 robot, the Adept Quattro. It is based on a new concept of
delta-style robot mechanism that has four arms versus the traditional three-arm design. The
rotation is achieved through a parallel platform.

Adept also offers Adept Python linear-module robots with one to four axes in various
configurations, and six-axis Adept Viper articulated robots.

Adept has its own robot control operating system, V+, which has come to version 17.x by 2009.
The history of V+ dates back to the days of Unimation. At the time it was called VAL(Victor's
Assembly Language), which evolved into VAL-II and VAL-III later. After the formation of
Adept, the rights to parts of the OS were granted to Adept].

The Adept OS at that time was called V, and it ran on the refrigerator-sized controllers that were
based on the MultiBus technology. Around 1986 the Adept MC controller was introduced; while
still based on the MultiBus, it was smaller than the original controller. After the Adept
MC controller (around 1990), came the Adept MV controller, which was based on the VME

16
backplane technology. Then around 2000 the SmartController CS/CX controllers were
introduced, which are current production as of 2009.

Along with the changes of the controller itself, the servo controls also saw major improvements
over the years. Around 200x, with the V+ version reaching ver. 14, the servo amplifier and
controls were part of the robot, and hence separated from the main robot controller itself. This is
when distributed controls were introduced by the company. The idea of having the amplifier and
servo controls in the base of the robot was named AIB (Amplifier in Base). Adept still follows
the AIB mantra, and has an AIB in the latest robot, Adept Quattro, reducing the footprint of the
robot/manipulator/controller system.

HARDWARE AND SOFTWARE HISTORY

Adept has its own robot control operating system, V+, which has come to version 17.x by 2009.
The history of V+ dates back to the days of Unimation. At the time it was called VAL(Victor's
Assembly Language), which evolved into VAL-II and VAL-III later. After the formation of
Adept, the rights to parts of the OS were granted to Adept].

The Adept OS at that time was called V, and it ran on the refrigerator-sized controllers that were
based on the MultiBus technology. Around 1986 the Adept MC controller was introduced; while
still based on the MultiBus, it was smaller than the original controller. After the Adept
MC controller (around 1990), came the Adept MV controller, which was based on the VME
backplane technology. Then around 2000 the SmartController CS/CX controllers were
introduced, which are current production as of 2009.

Along with the changes of the controller itself, the servo controls also saw major improvements
over the years. Around 200x, with the V+ version reaching ver. 14, the servo amplifier and
controls were part of the robot, and hence separated from the main robot controller itself. This is
when distributed controls were introduced by the company. The idea of having the amplifier and
servo controls in the base of the robot was named AIB (Amplifier in Base). Adept still follows
the AIB mantra, and has an AIB in the latest robot, Adept Quattro, reducing the footprint of the
robot/manipulator/controller system.

17
FANUC ROBOTICS COMPANY

FANUC (/ˈfænʊk/; often styled Fanuc) is a group of companies, principally FANUC

Corporation (Kabushikigaisha) of Japan, Fanuc America Corporation of Rochester Hills,
Michigan, USA, and FANUC Europe Corporation S.A. of Luxembourg, that
provide automation products and services such as robotics and computer numerical
control wireless[5] systems. FANUC is one of the largest makers of industrial robots in the world.
FANUC had its beginnings as part of Fujitsu developing early numerical control (NC)
and servo systems. The company name is an acronym for Fuji Automatic NUmerical Control.

HISTORY

In 1955, Fujitsu Ltd approached Seiuemon Inaba, who was then a young engineer, to lead a new
subsidiary dedicated to the field of numerical control. This nascent form of automation involved
sending instructions encoded into punched or magnetic tape to motors that controlled the
movement of tools, effectively creating programmable versions of the lathes, presses, and
milling machines. Within three years after spending heavily in R&D, he and his team of 500
employees shipped Fujitsu‟s first numerical-control machine to Makino Milling Machine
Co.[7] In 1972, the Computing Control Division became independent and FANUC Ltd was
established.[8] The next phase of expansion would be computer numerical control, which relied
on G-code,a standard programming language. At the time, the 10 largest CNC companies in the
world were based in the U.S., however by 1982, FANUC had captured half of the world CNC
market.[9]

FANUC is listed on the first section of Tokyo Stock Exchange and is a constituent of the TOPIX
100[10] and Nikkei 225[11] stock market indices. It is headquartered in Yamanashi Prefecture.

18
In 1982, FANUC entered into a joint venture with General Motors Corporation (GM), called
GMFanuc Robotics Corporation, to produce and market robots in the United States. The new
company was 50 percent owned by each partner and was based in Detroit, with GM providing
most of the management and Fanuc the products. In 1987, Fanuc entered into a joint venture with
General Electric Company (GE). The two companies formed GE Fanuc Automation to
manufacture computerized numerical control (CNC) devices. GE stopped making its own CNC
equipment and turned its Charlottesville, Virginia, plant over to the new company which
produces Fanuc CNC devices. Fanuc made the German engineering slogan Weniger Teile, which
means "fewer parts," machines with fewer parts are cheaper to produce and easier for automatons
to assemble to provide high reliability and lower manufacturing costs.

The company's clients include numerous U.S. and Japanese automobile and electronics
manufacturers. Use of industrial robots has allowed companies like Panasonic in Amagasaki to
run factories which produce 2 million television sets a month (mostly high end plasma LCD
screens) with just 25 people.[12]

FANUC has over 240 joint ventures subsidiaries, and offices in over 46 countries.[13] It is the
largest maker of CNC controls by market share with 65% of the global market.[14] and is the
leading global manufacturer of factory automation systems.[15]

SUBSIDIARIES AND JOINT VENTENRES

FANUC Europe Corporation S.A., a sister company, is headquartered in Luxembourg, with

customers in Europe, and which provides sales, service and support in Europe and abroad.

FANUC America Corporation is responsible for FANUC operations in North and South
America. The current incarnation, organized in 2013, unifies FANUC activities in the Americas,
including the former FANUC Robotics America Corporation (1992-2013) and FANUC CNC
America (2010-2013), which succeeded an earlier incarnation of FANUC America Corporation.

FANUC Robotics America Corporation (1992-2013) supplied robotic automation in North and
South America, with over 240,000 robots installed. It also produced software, controls, and
vision products that aid in the development of robotic systems. Headquartered in Rochester Hills,

19
Michigan, the company had 10 regional locations in the U.S., Canada, Mexico and Brazil. The
company provided these systems for applications including automotive and fabricated metals to
medical devices and plastics. It was founded in 1982 as a joint venture between FANUC Ltd
and General Motors Corporation, named GMFanuc Robotics Corporation. A staff of 70 began
work at the GM Technical Center in Warren, Michigan. In 1992, the company became a wholly
owned subsidiary of FANUC Ltd of Oshino-mura, Japan. The company was a member of the
Robotics Industries Association (RIA) and of the International Federation of Robotics (IFR).

In 2010, FANUC America Corporation and the prior CNC business unit from GE Fanuc
Intelligent Platforms in the US were combined into a new company by the name of FANUC
CNC America. This business unit was a wholly owned subsidiary of FANUC Ltd. of Japan and
offered CNC systems, lasers, Manufacturing Intelligence software products, field repairs and
advanced technical services, expanded training classes, a vast inventory of CNC replacement
parts, PCB motor repair and return, field support, and CS-24 after hours support. It was
headquartered in the Chicago suburb of Hoffman Estates, Illinois. It
offered CNC and laser technical services, training, replacement parts, PCB and motor repair and
return, field support, and after hours support. It had over 30 locations in the
U.S., Canada, Mexico, Brazil and Argentina. The company provides these services to machine
tool builders, machine tool dealers, and small mom and pop tool shops across a variety
of industries. In 1977, the company was established as a wholly owned subsidiary of FANUC
Ltd of Oshino-mura, Japan.

GE Fanuc Intelligent Platforms (1986-2010) was a joint venture between General Electric and
FANUC Ltd. In 2009, GE and FANUC Ltd. agreed to split, with FANUC Ltd. retaining the CNC
business. GE renamed its part of the business GE Intelligent Platforms.[16][17][18]

Fanuc India operations are led by Sonali Kulkarni.

20
 COMPANY PROFILE

ABB LTD

The idea originated alongside the development of HVDC (high-voltage, direct current), a
technology for the efficient transmission of large amounts of electricity. In 1992, ABB‟s
development manager for the technology, Gunnar Asplund, drew up a map detailing how
renewable energy could be harnessed to meet the needs of our power-hungry populations.

His scheme included wind farms, hydro- and geothermal plants, and a series of solar plants
across North Africa, connected to Europe by high-efficiency HVDC power links. In the 1990s,
the map inspired dreams of the future. It is now the central theme of the Desertec project.

Desertec aims to make this vision a reality by generating emission-free solar power in the
Sahara, meeting up to 15 percent of Europe‟s electricity needs and a significant amount of local
demand in producer countries by 2050. Last month, a group of European companies led by
insurer Munich Re pledged support for the project, amid rising concern over the economic
impact of global warming.

“The full potential of renewable energy in Europe and North Africa is huge,” said Joachim
Schneider, head of ABB‟s Power Products division in Germany, when he addressed the Power-
Gen Europe conference in Cologne earlier this year. “Scandinavia alone has some 200 gigawatts
of hydropower and 300 GW of offshore wind power, while southern Europe and North Africa
have about 700 GW of solar power.”

21
Gunnar Asplund's map showing ABB's vision of renewable power

ABB has been a technical advisor to the Desertec Foundation for several years and has spoken
about the project at a number of high-level conferences, most recently in May this year, at
Power-Gen Europe in Cologne.

Until relatively recently, the idea of generating solar power in the desert and transporting it
thousands of kilometers to consumers in Europe was unthinkable. The problem was three-fold:
there was a lack of efficiency in transmission; a lack of generation technology; and a lack of
political will.

But with improvements in the efficiency of power transmission and solar power technology, two
of the hurdles are all but overcome. As the financial implications of global warming become
clearer, the political will to drive projects like Desertec is building.

Using HVDC transmission, a technology pioneered by ABB in the 1950s, it is possible to

22
transfer power with losses of no more than 3 percent per 1,000 km. With more than 90 percent of
the world‟s population living within 3,000 km of a desert, HVDC transmission lends ABB‟s
vision enormous potential. Still the world leader in HVDC technology, ABB is working on a
number of projects to strengthen the European grid. This includes the so-called European “super
grid,” to feed power from offshore wind parks into the network, and efforts to increase the
number of inter-grid connections, which will improve the flexibility and reliability of the grid.

The most recently completed project was NorNed, between Norway and the Netherlands: a 580
km underwater link that enables the Netherlands to import emission-free hydropower from
Norway when demand is high, and export excess capacity from its thermal power stations when
demand is low. This exchange reduces need for thermal generation and avoids an estimated 1.7
million metric tons of greenhouse gas emissions every year.

On the generation side, ABB is the leading supplier of systems and components for the wind
industry and provides an extensive range of equipment, instrumentation and control systems to
the hydropower sector. The Group has also been active in the solar industry since the 1990s.

ABB also has extensive expertise in conventional power generation and how it must be adapted
to support the incorporation of large-scale renewable generation. ABB now has a broad offering
of power and automation solutions for the solar sector and continues to develop the specialist
technologies that will be vital to the realization of projects like Desertec.

ABB solar installations include the Extresol and Andasol thermo-solar power plants in Spain,
each with a capacity of 2X50-MW, and the pioneering 175-MW Hassi R‟Mel integrated solar
combined cycle power plant, in Algeria.

ABB‟s turnkey delivery of the Totana photovoltaic plant in Spain in 2008, equipped with
innovative solar trackers and patented optimization technologies to maximize the plant‟s
performance, demonstrated the breadth of the Group‟s offering to the sector. With much still to
be done, ABB is working to support Desertec and provide the technological advances that will
make large-scale solar power generation a reality.

23
Information policy

ABB, as a publicly traded company, is committed to communicating in a timely and consistent

way to shareholders, potential investors, financial analysts, customers, suppliers, the media and
other interested parties. ABB ensures that material information pertaining to its businesses is
disseminated in a manner that complies with its obligations under the rules of the stock
exchanges where its shares are listed: the SIX Swiss Exchange and exchanges in Stockholm and
New York.

ABB publishes an annual report consisting of an Operational and financial review and a
Sustainability review. The Operational and financial review provides information on the results
of ABB's businesses. The Operational review also provides information on human resources,
sustainability and corporate governance. The Financial review provides the audited financial
statements for the reported year, as well as a management discussion and analysis of ABB's
business results. The Sustainability review provides information on the company's performance
in environmental management, social responsibility and employee health and safety.

Apart from this annual report, ABB also submits an annual report on Form 20-F to the U.S. stock
exchange supervision authority, the SEC. In addition, ABB publishes its results on a quarterly
basis as press releases, distributed pursuant to the rules and regulations of the stock exchanges on
which its shares are listed. Press releases relating to financial results and material events are also
filed with the SEC on form 6-K. An archive containing annual reports, Form 20-F reports,
quarterly results releases and related presentations and conference call webcasts can be found on
the ABB Web site (www.abb.com/investorrelations). These presentations are not regularly
updated but reflect developments within the company over time. The quarterly results press
releases contain unaudited financial statements in accordance with U.S. GAAP.

24
 Supply Management contacts in ABB

How ABB assesses performance

Our suppliers are a valued and integral extension of our enterprise. The overall performance of
ABB's supply chain directly impacts our ability to support our customers' requirements.

ABB is committed to improving supplier's performance through a standardized Supplier

Performance Rating process. The process consists of a data-driven approach to regularly measure
and provide feedback to suppliers. This feedback enables ongoing communication, continuous
process improvement, and supplier development. Furthermore, this process focuses ABB and our
suppliers on the critical business issues that must be addressed to better support ABB‟s customer
requirements.

The Supplier Performance Rating process measures and monitors the following Key
Performance Indicators (KPIs):

Quality % defect-free lots received

Delivery % of all shipped received complete and on time, based on agreed
Incoterms

The Supplier Performance Rating score is then used as the basis for future sourcing decisions
and for annual awards and recognition.

What suppliers can expect from ABB

ABB recognizes our suppliers as a valued and integral component of our company's long-term
success. Therefore, ABB is committed to providing technical resources to our suppliers to
support their development and enable them to achieve a sustainable competitive advantage. ABB
is able to leverage its global resources and strengths to assist suppliers in areas such as
continuous process improvement, lean manufacturing, and quality management. In participating
in the Supplier Development Process, suppliers will share in ABB‟s R&D and technology
capabilities.

25
ABB contributes to strategic supplier development by customizing development plans, sharing
resources and technologies, exchanging best practices, and monitoring performance. ABB‟s
structured approach to Supplier Qualification, Supplier Performance Requirements, Supplier
Performance Assessment and Supplier Development enables long term supplier success.
Ultimately, this structured approach better supports our customers

ABB's News center

This Web site is designed to meet the needs of the media and people seeking the latest press
releases and information issued by ABB.

Press releases

Press releases for business, technology and trade media

Media resources

Events, presentations, videos, photo gallery and glossary

Media contacts

Global and local contacts for media inquiries

Feature articles

How ABB's power and automation technologies are meeting customers' needs

Investor AB increases its ownership in b-business partners by acquiring shares from ABB

Stockholm, January 4, 2002: Investor AB has increased its position in b-business partners, a pan-
European venture capital company, by acquiring 90 percent of ABB‟s shares and capital
commitments. As a result of the transaction, ABB received EURO 188 million (US$ 166
million). Investor's share of paid in capital and future commitments will now be approximately

26
75 percent. This transaction is in line with Investor AB‟s strategy to further strengthen its
position in the European venture capital market, and ABB‟s strategy of focusing on its core
businesses in power and automation technologies. In addition, the Supervisory Board and
management of b-business partners determined it can at present achieve its investment objectives
using less capital than when it was founded. This is due to companies today requiring less capital
to carry out their business plans and because they have lower valuations. b-business partners has
therefore temporarily reduced the paid in capital of all its shareholders. The positive net cash
effect on Investor AB of the transactions is EURO 25 million. The total capital commitment to b-
business partners is EURO 728 million, of which Investor represents approximately EURO 550
million. b-business partners' paid in capital, after the above transactions, is approximately EURO
270 million, of which Investor has contributed approximately EURO 200 million. The remainder
will be drawn down as necessary to fund future investments. b-business partners is a venture
capital company with an international network of experience and competence in industry and
finance. b-business partners shareholders are: Investor AB, ABB, SEB, AstraZeneca, Atlas
Copco, Electrolux, Ericsson, Hewlett-Packard, Saab Aerospace, Sandvik, SKF, Stora Enso and
WM-data. b-business partners has invested approximately EURO 60 million and has a portfolio
of ten companies.

ABB commissions world’s longest and most powerful transmission link

The world‟s first ultrahigh-voltage power superhighway starts commercial operation in China
Zurich, Switzerland, July 19, 2010 - ABB, the leading power and automation technology group,
has achieved another significant milestone with the commissioning of the Xiangjiaba-Shanghai
project, the world‟s first UHVDC (ultrahigh-voltage direct current) transmission link to go into
commercial operation. ABB was the main technology supplier to State Grid Corporation of
China (SGCC) and the project was completed in 30 months, one year ahead of schedule.

The ±800 kV Xiangjiaba-Shanghai UHVDC link has the capacity to transmit up to 7,200
megawatts (MW) of power from the Xiangjiaba hydropower plant in southwest China to
Shanghai, the country's leading industrial and commercial center about 2,000 kilometers away.
The new link is able to meet the electricity needs of about 24 million people, and sets a new
benchmark in terms of voltage levels and transmission capacity, superseding the 600 kV

27
(kilovolt) Itaipu transmission line in Brazil, which was also delivered by ABB. ”800 kV UHVDC
will play an important role in providing China with access to remote renewable energy, a key
focus area for us,” says Zheng Baosen, Executive Vice President, SGCC. “We are extremely
pleased with the support and co-operation of ABB and the local Chinese suppliers during the
execution of this project which enabled its completion in record time.”

The high-capacity power link comprises a single overhead line and occupies less space than the
existing system. Moreover, transmission losses on the new line are under 7 percent, again,
considerably less than the existing 500 kV system. The electricity saved is equivalent to the
power needs of around one million people in China. “The Xiangjiaba-Shanghai link sets a new
standard in ultrahigh-voltage power transmission and underlines ABB‟s global leadership in
HVDC technology,” said Peter Leupp, head of ABB‟s Power Systems division. ”We
congratulate State Grid Corporation of China on this remarkable achievement and acknowledge
the excellent cooperation and support of all our local partners.”

As part of the turnkey project, ABB was responsible for overall system design and supplied the
main equipment. The scope of delivery included 28 high- and ultrahigh-voltage converter
transformers, ten of which were delivered from Sweden and the rest manufactured with ABB
components and technology, in local partnership. Other key products delivered include thyristor
valves, DC and AC (direct and alternating current) switchyard equipment and the newly
developed DCC800 HVDC control system.

UHVDC transmission is a development of HVDC, pioneered by ABB more than 50 years ago.
The new technology with an advanced control system represents the biggest capacity and
efficiency leap in power transmission systems in more than two decades. It is particularly
suitable for vast countries like China and India, where consumption centers are often located far
from power sources, including renewables.

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and
industry customers to improve performance while lowering environmental impact. The ABB
Group of companies operates in around 100 countries and employs about 117,000 people

28
 GENERAL INFORMATION

ABB robots light the way for Indian automotive parts maker.

Gurgaon used to be a small settlement in the Indian countryside but, thanks to its proximity to
the capital, New Delhi, it has emerged as one of the fastest-growing cities in India. One of the
early arrivals in Gurgaon was Lumax Industries Limited which established an automotive
lighting plant there in 1985. Today it is one of Lumax Automotive Parts eight plants in India.
The company accounts for more than 60 percent of the market share of the country‟s automobile
lighting business. Among its international clients are such well-known companies as the
American tractor manufacturer John Deere, while its domestic customers include major Indian
names including Maruti-Suzuki, Tata Motors and Mahindra & Mahindra. “The auto market in
India has been growing at about 25 - 30 percent per annum,” says Lumax Industries Assistant
General Manager (Projects), Shabaj Singh, as he surveys the assembly line of the Gurgaon
operation “In the last three years, Lumax has managed to match that with an annual growth rate
of about 25 percent. In this kind of environment, it is vital that Lumax performs at a consistently
high level.” Lumax Automotive Parts prides itself on keeping abreast of the latest trends in
production technology.

Automating production

The company made its first venture into automated production in the 1990s, taking delivery of
six robots from its Japanese joint venture partner, Stanley Electric Company Ltd. Between 1998
and 2005, Lumax bought six robots from Vaccutek Automation Inc, Taiwan. The following year
Lumax turned to ABB, which has since supplied the company with a total of 28 robots (IRB 140
and IRB1410 robot types). “When it comes to choosing vendors,” says Singh, “there are four
crucial factors for us: quality, cost, delivery and after-sales service. ABB meets all four of these
requirements and that‟s why we now go with ABB. Lumax is very satisfied with the robots and
with their performance.”

29
Hot melt adhesive

The principal robot application within Lumax is the gluing of headlamp parts with hot melt
adhesive. One specialty of the Gurgaon plant is the assembly of two-wheeler headlamps, mainly
for Hero Honda motorcycles. An ABB robot is used to glue together the lamp body‟s main
components, the lens and the reflector. Half a dozen employees are trained to operate the robot
although at any one time, only one person is required to oversees the operation The rest of the
unit‟s parts are assembled manually. Lumax also has an ABB robot for training and hanging
from the roof above the robot is a sign which proclaims in bold letters: “Quality is Everybody’s
Responsibility.”

Increasing productivity

“The introduction of these robots was seen by Lumax not just as an improvement to the process
but as an essential requirement,” says Singh. “For that reason, we don‟t really look at the issue of
return on investment in the same way as a lot of companies. But Lumax has done its sums. We
estimate that ROI payback time is 39 months per robot – but this is not the decisive factor when
looking at an essential capital investment of this kind.” Lumax estimates the productivity levels
using the ABB robots are significantly higher than when relying solely on manual labor: For
every eight-hour shift, says the company, one hour of labor time is saved. For example, whereas
manual production can produce 300 two-wheeler headlamps per hour, robot production can
produce 345 finished pieces per hour. Similarly, the cycle time for the manual production of a
two-wheeler headlamp is about 16 seconds – four seconds slower than with robot production.

Consistent high product quality

Though unskilled labor in India is still relatively inexpensive in global terms, skilled labor is not
always widely available and can no longer be regarded as cheap. Indian companies wishing to
compete in the global marketplace increasingly realize that product quality is essential – and to
achieve this, modern equipment and manufacturing plant are crucial. “Of course, productivity
remains an issue,” says Singh. “But consistency and quality are the main factors for us and
that‟s where the robots really earn their worth as far as we‟re concerned.” Also appreciated by
the Lumax staff are the support and after-sales services provided by ABB engineers based at

30
Faridabad, near Delhi.“It‟s not so much that our ABB robots benefit any one individual in the
company,” says Singh. “The way we look at it, they benefit the whole of Lumax Industries.”

ABB in the Printing Industry

ABB‟s solutions have proven their value in many printing installations around the world and
offer substantial advantages regarding asset and value chain optimization. Their scope of
operation ranges from the page planning, the digital workflow, the roll supply, the press
automation up to the total planning and tracking of the entire production chain.

Newspaper Solutions

 Solutions for newspaper printing

Press automation and integrated workflow solutions for the entire newspaper production process.

Retrofit & Service

 Retrofit solutions for newspaper printing presses

ABB provides a complete spectrum of retrofit solutions for existing presses.

 Service

Our service is focused on enhancing our customers‟ productivity and maximizing their
return on investment.

31
  MPS UserClub

The continuous dialog between supplier and user is a source of valuable information for
every participant to reach top performance in daily newspaper production.

COMMITMENTS

Growth through Commitments

We care about

Quality Research & Development

Health, Safety & Environment

Human Resource Development

Energy Conservation

Corporate Citizenship

ABB believes that any business conduct can be ethical only when it rests on the nine core values
of Honesty, Integrity, Respect, Fairness, Purposefulness, Trust, Responsibility, Citizenship and
Caring.

The essence of these commitments is that each employee conducts the company's business with
integrity, in compliance with applicable laws, and in a manner that excludes considerations of
personal advantage.

We do not lose sight of these values under any circumstances, regardless of the goals we

32
have to achieve. To us, the means are as important as the ends.

Awards & Accolades won

During the year 2010-11 ABB received various prestigious awards. Some of the important
awards are enlisted below:

· ABB has been conferred with India Power Award 2010 by Council of Power Utilities for
„Social and Community Impact‟ on 11.11.2010 in recognition of ABB‟s outstanding work under
Corporate Social Responsibility.

· ABB has been conferred with the „Best PSU in creating Alternative Energy Resources‟ award
at the 2nd Infrastructure Excellence Awards on 21.2.11.

· Adjudged as the top Indian company under the Power Sector at the Dun & Bradstreet- Rolta
Corporate Awards 2010 for its contribution to the Indian economy.

· Conferred with the „Gentle Giants Award” under Non-Manufacturing Mini Ratna Category by
Dalal Street Investment Journal.

· Conferred with CIDC Vishwakarma Award 2011 under the category for „Social Responsibility‟
on 7.3.11.

· The award recognizes the best practices adopted by ABB and its overall contribution to the
Indian construction industry.

· Awarded “First Prize” by Ministry of Home Affairs, Government of India under India Gandhi
Rajbhasha Award programme for outstanding work in implementation of Rajbhasha amongst
Public Sector Undertakings located in Region „A‟ for the year 2008-09.

33
· Awarded First Prize for 2008-09 and Second Prize for 2009-10 for outstanding work in
implementation of Rajbhasha amongst Power Sector Utilities.

· Adjudged as the top Indian company under the Power Sector at the Dun & Bradstreet- Rolta
Corporate Awards 2010 for its contribution to the Indian economy.

· Conferred with the „Gentle Giants Award” under Non-Manufacturing Mini Ratna Category by
Dalal Street Investment Journal.

Human Resource Development

Human Resource Development (HRD) is the framework for helping employees develop their
personal and organizational skills, knowledge, and abilities. Human Resource Development can
be formal or can be informal

Human Resource Development includes such opportunities as

 employee training
 employee career development
 Performance management
 Development
 coaching
 mentoring,
 succession planning
 key employee identification
 tuition assistance
 organization development.

ABB focus of all aspects of Human Resource Development is on developing the most superior
workforce so that the organization and individual employees can accomplish their work goals in
service to customers.

34
ABB has conceived and initiated Business Process Reengineering & Restructuring exercise
aimed at evolving new organization design, optimizing Human Resource and assessing and
articulating Business Strategy through a reputed Consultant.
Several organization development initiatives have been implemented including revisiting of HR
Policies on the basis of an extensive organization climate survey. ABB has implemented
Productivity Linked Group Incentive Scheme (PLGI) which envisages variable pay up to 12.5%
of the annual basic pay of an employee.

Aiming to provide social security to the employees, the ABB Social Security Scheme has been
introduced which envisages equal contributions from the employee and the employer. In the
event of death/ permanent disability, the employee / his family can get up to Rs

RECRUITMENT & SELECTION PROCESS IN ABB.LTD

 WRITTEN TESTS : ABB.LTD conducts written tests for recruitment of

employees. This test is also conducted on line. This is the pattern of written test.
Candidates will be able to appear the exam in Hindi or English. The test will be of
three hours and in three parts i.e. multiple choice questions in concerned
discipline, general awareness and reasoning.

 INTERVIEWS : Those candidates who have cleared the written test will be
called for intervi

 MEDICAL TEST : The candidates who clear the interview will have to undergo
medical checkup as ABB.LTD requires people to work in high altitude and low
pressure area

 SELECTION : The final candidates who have cleared the above steps gets the
“letter of appointment

35
ABB STRENGHT IT’S EMPLOYEES

The quality of an organization can never exceed the quality of the minds that make it up”. The
way a team plays as a whole determines its success. There may be a bunch of individual stars in
the sky, but only when put together that it forms a constellation worth a dime.

ABB, as an organization, meets the talent and organizational needs of the widening global
corporates by pooling in new talent group, nurturing employees and managing employee
relationships. The steps involved in achieving these targets are as follows:

RECRUITMENT AND TRAINING:-

ABB recruit individuals with adequate knowledge and a passion to excel in business based not
only on academic excellence but also on a proactive approach. At ABB, training needs are
identified periodically for various levels and all the new technical recruits are trained in technical
training center on welding, pressing machining and other technical fields and then placed in the
concerned departments.

EMPLOYEE ENHANCEMENT THROUGH INVOLVEMENT:-

The Company encourages employees' feedback for enhancing improvement in process and
alignining employee goals with business objectives. It helps in building mutual trust and foster
teamwork. At workman level, for example, expansion of canteen facilities with better services,
improved telephone services, safe working environment were some of the initiatives taken
during the year. A series of initiatives were taken up at each location to improve employee
engagement. These included communications, team building and creation of cross-functional
teams to enhance job content, work environment and employee empowerment.

EMPLOYEE MOTIVATION:-
The organization motivates its employees by awarding them with various awards like long-term
awards, attendance awards, customer representative winner award... Various recreational
activities are conducted for employees and their families, birthday greetings are sent across to the

36
employees, a quarterly magazine is published for and by employees to encourage their creativity
and to share their personal and academic excellence which acts as value addition for the
company named as ABB. This helps in promoting the feeling of oneness.

HR MISSION:-
“To promote and sustain the culture of developing world class leaders for value addition in every
sphere of original activities while fulfilling employees‟ professional and personal satisfaction.”

Human Resource Development

98.5 % of the employees relating to Operation & Maintenance of Power Stations were trained
during FY 2010-11 against the MoU target of 85%. ABB has been given the opportunity to
organize training programme on Operation & Maintenance for Hydro Power Station for the
participants from African Countries by Ministry of External Affairs.

The programme was organized at Chamera-I Power Station and was highly appreciated by the
participants. ABB has also received an invitation from Ministry of Power, Govt. of Nigeria for
exploring business opportunities in Nigeria.

ABB has taken several initiatives for developing its human resource, which includes establishing
Learning Joint Ventures (LJVs) with premier academic institutes like:

 IIT- Roorkee

IIT-Delhi

IIM-Bangalore

IIM-Calcutta

IIM-Kozhikode

IIM-Indore

37
IIM-Lucknow

MDI-Gurgaon

IMT Ghaziabad

ISB-Hyderabad

ASCI-Hyderabad

ESCI-Hyderabad

CPRI-Bangalore

NCB-Ballabgarh

ISM-Dhanbad

BHEL-Bhopal

NWA-Pune etc

Also training & development programmes are conducted through reputed manufacturers like
ABB, Areva, Alstom, VA-Tech, Siemens etc. for keeping the employees updated with the state-
of-the-art technologies.

Corporate Social Responsibility:

ABB, a socially responsible Corporate Citizen, has adopted a new comprehensive CSR Policy in
line with the DPE guidelines, significantly widening the horizon of CSR activities. The new
Policy stipulates earmarking 0.5 % of profit for CSR activities and forming a non-lapsable pool
for CSR Fund.

The community development initiatives include creating Herbal Parks, Afforestation, Catchment
Area Treatment, Fisheries Management, organizing Medical / Vaccination Camps, Educational
Institutions, Peripheral Development, organizing Sports / Cultural Festivals, Melas etc.
In order to promote education facilities in remote areas, ABB‟s initiatives are as under:

38
i) Constructing ABB College of Science, Technology, Arts and Commerce at Tawang,
Arunachal Pradesh.
ii) Setting up a Hydro Training Institute in Srinagar, Jammu and Kashmir.
iii) Setting up an Engineering College in Bilaspur, Himachal Pradesh in partnership with NTPC.
iv) Provide financial assistance of about Rs. 5 crore to develop infrastructure for a new ITI in
Sikkim.

Apart from this, ABB is actively pursuing the “National Skill Development Mission” by
adopting Industrial Training Institutes (ITIs) in three states viz. Arunachal Pradesh, J&K and
Uttarakhand so that up-gradation and modernization of the institutes can be carried out.

39
CHAPTER-3

REVIEW OF

LITERATURE

40
 REVIEW OF LITERATURE

Performance appraisal has been one of the most debated management practices for several
decades. It has generated a wide variety of viewpoints. A more comprehensive definition of
Performance Appraisal is -

"Performance Appraisal is a formal structured system of measuring and evaluating

employees job related behaviors and outcomes to discover how and why the employee
is presently performing on a job and how the employee can perform more effectively
in the future so that the employee, organization and society all benefit"

 Performance Appraisal consists of a systematic, face-to-face discussion of an employee's

work performance, training and development needs, future job goals and job aspirations.
It looks backwards, reviewing the employee's performance during the period under
review and forwards, helping the employee prepare and set goals for the upcoming
review period.

Performance Management is central to most Human Resource practices. An organization

tries to increase productivity and performance there is an increased emphasis on appraisals.
Over recent years there has also been a significant increase in the number of organizations
linking Performance Appraisal of employees and managers with business plans and
departmental goals.

 Managers evaluate things everyday. This may be done unconsciously. Managers also
evaluate employees often also unconsciously. They know whether they are "good
worker", reliable and conscientious. For a variety of reasons many organizations ask
managers to make conscious formal evaluations of employees too. It may be as part of
the organization's normal annual or biannual Performance Appraisal System, which
gives everyone a chance to clarify aims and objectives, build on strengths and plan to
strengthen weakness.

41
 In addition to these, there has been a trend through development in 'employment law' for
Performance Appraisal to be viewed as important documentation for legal protection. This
reason alone is sufficient to emphasize the importance of valid and equitable appraisal
management.
 Performance appraisal leads to the identification of the training and development needs of
the employees. It also has close links with other important areas of human resource
management, in particular with selection, motivation, and succession planning. Performance
data provides relevant information required for validating selection methods and also helps
in assessing whether selection methods are bringing high performers into the organization.
 Here the organization must not get trapped into the various pitfalls that come along with
administration of appraisal system. The question that arises here is - how to avoid these
pitfalls? A necessary condition for the effective management of performance appraisal
system in any organization is the need to clarify and communicate to all concerned the
objectives that the system intends to achieve.
 The culture of the organization clearly affects appraisal relationships. The only possible way
for organizations, to minimize the possible conflict among appraisal objectives, is to
emphasize on climate setting that will facilitate achieving the objectives that an appraisal
system intends to achieve.
 Thus what needs to be done is to encourage managerial styles that will lead to openness and
frankness in relationships as a condition for establishing an effective performance appraisal
system. The Indian companies need to realize that the relationship between organization
culture and performance appraisal system is a two way process implying that they can
successfully use their performance appraisal system to bring about cultural change.
 The design of Employee Performance Appraisal and Development Plan thus formed would
assist in evaluating employee performance and identifying their potential and guide in
developing a plan to improve his/her performance as also to prepare him/her for greater
responsibilities in case of promotions and transfers. It should be filled carefully, thoughtfully
and objectively. Before an appraisal is made, the superior should ensure that he/she and the
employee are in agreement concerning responsibilities, for result expected and what
constitutes satisfactory performance.

42
 The whole approach is a positive one; its purpose is improvement of individual's ability and
performance.

 The next fundamental question of importance is, to what extent, links should exist between
performance appraisal pay decisions. The general trend with regard to the Indian
organizations suggests atilt towards performance appraisal systems being linked to individual
rewards and pay. The advocates of this trend argue that when performance appraisal system
is linked to individual pay and rewards then all parties (appraisers, appraisees and reviewers)
take performance appraisal more seriously. Organizations are likely to develop performance
-- oriented cultures, in which high performers are seen to receive extra rewards, and lower
performers receive lower rewardsBut at the same time the issues that need to be looked into
when pay and performance appraisal are closely linked are:

• The pay issue may overshadow all the other purposes of performance appraisal; there may
be a tendency of employees to withhold negative information about performance, leading to
less than frank appraisal discussions;

• Employees may adapt their behaviors to focus only on receiving good ratings, rather than
genuinely improve their overall performance.

So the question arises what to do?

1. Firstly the organization must realize that pay related performance appraisal is likely to be
effective only where jobs are designed in such a way that allows individual performance to
be measured. Thus in situation characterized by high interaction among jobs in achieving
results, group-related pay systems may be more appropriate. Thus before establishing
company policies on the matter, it may be good idea to read about alternative methods for
rewarding good performance like gain sharing or tying rewards to team performance or the
company performance rather' than only to individual performance,

2. Sometimes a combination of reward systems works much better and has fewer nasty side
effects than a single way of rewarding performance.

43
The design of Employee Performance Management and Development Plan thus formed would
assist in evaluating employee performance and identifying their potential and guide in
developing a plan to improve his/her performance as also to prepare him/her for greater
responsibilities in case of promotions and transfers. It should he filled carefully, thoughtfully and
objectively. Before an appraisal is made, the superior' should ensure that he/she and the
employee are in agreement concerning responsibilities, for result expected and what constitutes
satisfactory performance. The whole approach is a positive one its purpose is improvement of
individual's ability and performance.

The normal system consists of the following parts:

PART A: SELF-APPRAISAL - To be filled in by the appraisee

PART B: PERFORMANCE APPRAISAL -- To be filled in by the Reporting

Authority/Superior

PART C: PERFORMANCE COUNSELING -- To be filled in by reporting Authority and

to be discussed with the appraisee along with person in charge.

PART D: SUMMARY OV ASSESSMENT- To be filled in by Review

Committee/Authority.

PART E: POTENTIAL APPRAISAL - To be filled in by the H0D / Unit head in

consultation with the reporting Authority.

Designing the Performance Management System :-Numerous have been devised to measure
the quantity & quality of employee‟s job performance. Each of the methods discussed could be
effective for some purposes, for some organizations. None should be dismissed or accepted as
appropriate except as they relate to the particular needs of the organization or of a particular type
of employees. Broadly, all the approaches to appraisal can be classified into:

44
Past-Oriented Methods:

This is the simplest & most popular technique for appraising employee performance. The typical
rating scale system consists of several numerical scales, each representing a job-related
performance criterion such as dependability, initiative, output, attendance, attitude, co-operation,
and the like. Each scale ranges from excellent to poor. The rater checks the appropriate
performance level on each criterion, and then computes the employee‟s total numerical score.
Under this method, a checklist of the statement on the traits of the employee & his or her job is
prepared in two columns.

1. Forced Choice Method

In this, the rater is given a series of statements about an employee. These statements are
arranged in blocks of two or more

2. Forced Distribution Method

The approach focuses on certain critical behaviors of an employee that make all
difference between effective & non-effective performance of a job. The superiors as &
when they occur record such incidents. The advantage of this method is that the
evaluation is based on actual job behavior.

3. critical Incidents Method

The approach focuses on certain critical behaviors of an employee that make all
difference between effective & non-effective performance of a job. The superiors as &
when they occur record such incidents. The advantage of this method is that the
evaluation is based on actual job behavior.

4. Behaviorally Anchored Rating Scales

Behaviorally anchored scales, sometimes called behavioral expectation scales, are rating
scales whose scale points are determined by statements of effective & ineffective
behaviors.

45
5. Field Review Method

This is an appraisal by someone outside the assessee's own department, usually someone
from the corporate office or the HR department. The outsider reviews employee records
& holds interviews with the ratee & his or her superior. The method is primarily used
for making promotional decision at the managerial level field reviews are also useful
when comparable information is needed fromemployees in different units or locations.

6. Performance Tests & Observations

With a limited number of jobs, employee assessment may be based upon test knowledge
or skills. The test may be of the paper-and-pencil variety or an actual demonstration of
skills. The test may be reliable & validated to be useful.

7. Essay Method

In the essay method, the rater must describe the employee within a number of
categories such as:

1. The rater's overall impression of the employee's performance,

2. The promo ability of the employee
3. The jobs that the employee is now able or qualified to perform
4. The strengths & weaknesses of the employee
5. The training & the development assistance required by the employee.

8. Cost Accounting Method

A relationship is established between the cost included in keeping the employee &
the benefit of the organization derives from him or her. Performance of the employee
is then evaluated based on the established relationship between the cost & the benefit

9. Comparative Evaluation Approaches

These are a collection of different methods that compare one worker's performance with

46
 that of his/her co-workers. Supervisors usually conduct comparative appraisals. The usual
comparative forms used in this kind of evaluation are the Ranking Method & The Paired
Comparison Method

Future oriented Performance Management systems :-

It is not enough if only the past performance is assessed. How an employee can perform in the
days to come is equally important. This can be assessed by focusing on employee potential or
setting future performance goals. The commonly used future oriented techniques are MBO,
psychological appraisals, assessment centers and the 360-degrec appraisals.

1. Management by Objectives (MBO)

The MBO concept, as was conceived by Peter Drucker, reflects a management philosophy,
which values and utilizes employee contributions. Application of MHO in the field of
performance appraisal is a recent thinking. The following arc the four steps in which MBO
works:

i) The first step is to establish the goals each subordinate is to attain.

ii) The second step involves setting the performance standard for the subordinates in a
previously arranged time period.

iii) In the third step, the actual level of goal attainment is compared with the goals agreed
upon.

iv) The final step involves establishing new goals and possibly new strategies for goals not
previously attained.

v) The process is then repeated.

47
MBO is criticized on the following grounds:

i) It is not applicable to all jobs in all organizations.

ii) It is most useful with managerial personnel and employees who have a fairly wide range
of flexibility and self control in their jobs.

iii) Employees may be less likely to establish challenging goals.

2. Psychological Appraisals

When psychologists are used for' evaluations, they assess an individual's future potential and not
the past performance. The appraisal normally consists of in-depth interviews, psychological
tests, discussions with supervisors and a review of other evaluations.

The psychologist then writes an evaluation of the employee's intellectual, emotional,

motivational and other related characteristics that suggest individual potential and may predict
future performance. The evaluation by the psychologist may be for a specific job opening for
which the person is being considered, or it may be a global assessment of his / her future
potential.

This method has the following problems associated with its application:

i) It is slow and costly.

ii) Employees may object.

3. Assessment centers

An assessment centre is a central location where mangers may come together to have their
participation in job related exercises evaluated by trained observers. The principal idea is to
evaluate managers over a period of time by observing their behavior across a series of select
exercises or work samples.

The characteristics assessed in a typical assessment centre includes assertiveness, persuasive

48
ability, communicating ability, planning and organizational ability, self confidence, resistance to
stress, energy level, decision making, sensitivity to the feelings of others, administrative ability,
Creativity and mental alertness. A well conducted assessment centre can and does achieve better
forecasts of future performance and progress than other methods of appraisal. Also, reliability,
content validity, and predictive validity are said to be high in the assessment centers.

The problem with assessment centers is that they are not cost effective in nature and are thus,
suitable mainly forhe large organizations.

4. 360-Degree feedback

"The systematic collection and feedback of performance data on an individual or group, derived
from a number of the stakeholders in their performance;"

To Explain:

The data collection is systematic, i.e. done in some systematic way via questionnaires or inter-
views. This formalizes people judgments coming from the natural interactions they have with
each other. There is both a collection and a feedback process data is gathered and then fed back
to the individual participant in a clear way designed to promote understanding, acceptance and
ultimately changed behavior. The performance of either individual or group can be measured.
The process has recently been applied to groups or teams but can be an effective way of
measuring interactions with in a team or team outputs and quality as perceived by the customer.
The source of data is called the stakeholders in the participant's performance. Stakeholder‟s are
people who are both affected by the individuals or group's performance and deal with them
closely enough to be able to answer the specific questions about the way they interact with the
stakeholders.

A Final Observation:

The word 'performances twice in the definition. However, we should be quite clear on the fact
that it refers to the quality of a person's interactive processes or their behavior, rather than the
results they produce.

49
The 360 - degree appraisal, a relatively new model for reviewing employees' performance,
incorporates appraisals from supervisors, co-workers, subordinates and even external customers.
360-degree performance appraisal strengthens the relationship between employee and employer.
The advantage of 360-degree systems over traditional systems is that they accumulate more
information about employees' performance and development areas; this information is used to
give the most beneficial feedback possible.

Increased feedback and multi-source feedback results in a change in management behavior and
in an increase in performance. Theoretically, anonymous feedback is more open and honest then
one - on -- one feedback. The assumption is that honest feedback changes management behavior
faster than restricted feedback.

It is also assumed that employees (and customers) that are listened to and involved will produce
more and have higher satisfaction and retention.

A basic assumption is that employees have knowledge of management behaviors that can be
provided to management. A further assumption is that the "anonymity" provided in 360 process
is credible and results in honest feedback.

The 360-degree technique is an appraisal technique that provides a broader perspective about an
employee's performance. In addition, the technique facilitates greater self-development of the
employees. For one's development, multi-source feedback is highly useful. It enables an
employee to compare his/her perceptions about self with perception of others.

It is a systematic collection of performance data on an individual or group; derived from a

number of stakeholders - superiors, team members, customers, peers and self. By design, the
360-degree appraisal is effective in identifying and measuring interpersonal skills, customer
satisfaction, and team building skills.

50
 The Appraisal Interview

Whatever method of appraisal used by an organization, it is crucial to allow for 'employee

feedback'. An interview between the manager and the employee is the main way of achieving
this. The interview provides the opportunity, to discuss an employees‟ performance and explore
areas of possible improvements and growth. It also provides an opportunity to identify attitudes
and feelings more thoroughly and thus improve communication. Fundamental to the success of
the appraisal interview is the relationship between the two participants in the process.

The interview may have any of the following purposes

 Record / summary of performance

 Feedback from employee

 Feedback from manager
 Career development
 Suitability for promotion/ transfer
 counseling
 Motivation
 Foster the working relationship

The format of the interview will be determined in large by

 The purpose of interview

 Type of appraisal method used
 Organization of the interview form (formal record)

The interview is perhaps the most important part of the entire appraisal program. Unfortunately,
interviewers can become overburdened by attempting to discuss too much.

The interviewer should observe the following points: -

 Initially, emphasize strengths on which employee can build rather than weakness to
overcome.

51
  Avoid suggestions about personal traits to change instead suggest more acceptable ways
of performing.
 Concentrate on opportunities for growth that exist within the framework of the
employees' present position.
 Limit plans for growth to a few important items that can be accomplished within a
reasonable period of time

Types of Appraisal Interview

Managers should never assume that only one type of appraisal interview is appropriate for every
review session. Rather, they should he able to use one or more of the interview types depending
on the topic being discussed or the behavior being appraised. Feedback is necessary to effect
improvement in performance, especially when it is inadequate.

Specifically, performance interview has three goals:

 To change behavior of employees whose performance docs not meet organizational

requirements or their own personal goals,
 To maintain the behavior of employees who perform III an acceptable

 To recognize superior performance behaviors so that the}' will be continued.

Three distinct types of interview are commonly used

 Tell and sell

 Tell and listen
 Problem solving and mixed

1. Tell and sell

 It is also called as directive interview; the interviewer lets assesses know how well they arc
doing and sells them on merits of setting specific goals for improvement, if needed.

52
 Has little provision for employee participation

 Generally consists of three stages

 Manager lets employee know how the latter is doing.

 The employee's acceptance of this evaluation is sought.
 The employee agrees to follow a pre-determined plan for improved job
performance.

 This method does not require much of anyone's time but is of little use if the improved
behavior does not eventuate.
 There is no opportunity for employee participation and over time, it is likely that employees
will only perform to conform to their manager's wishes.
 The role of the supervisor / manager is one of 'judge' and 'jury'.

1. Tell and listen

 Tell and listen interview provides the subordinates with chances to participate and establish
a dialogue with their superiors. Its purpose is to communicate the rater's perceptions.
 It is the most commonly used interview technique.
 As with "Tell and Sell", the manager lets the employee know how he or she is doing.

 Communicate strong and weak points of an employee's job performance.

 The employee has a chance to respond to the assessment and present his/ her views.

 Employee‟s feelings of the appraisal are thoroughly explored.

 BOTH views arc then considered together, a conclusion reached and a plan for" future
performance is developed.
 This is much more flexible approach, however, the type of reaction provoked may
strongly affect the success of the interview

 For example, if the manager's remarks arc perceived as unfair.

53
  (Or critical) by the employee, defense mechanism and face saving, rather than
constructive responses might still be the outcome.

 The "Tell and Listen" method assumes that the opportunity to release frustrated feelings
will help reduce or remove them.

3. Problem solving and mixed

 In the problem solving or participative interview, an active and open dialogue is

established between the superior and the subordinate. Not only are perceptions shared,
but also solutions to problems arc presented, discussed, and sought. Mixed interview is a
combination of tell and sell and problem solving interviews.
 Differs markedly from the methods above

. Although recommended by some, since the objective of appraisal is normally to stimulate

growth and development in the employee.

 It is used more widely in 'counseling' and is an unstructured approach.

 The skills an' consistent with the non-directive procedures of the "Tell and Listen"
method in that listening, accepting and responding to feelings arc essential.

 However, it goes beyond an interest in the employee's feelings.

 It seeks to stimulate growth and development in the employee by discussing
problems, needs innovations, satisfactions and dissatisfactions encountered since the
last appraisal

 A work - related situation IS presented and both the manager and the employee discuss a
solution.
 The manager assumes the role of a 'Helper' or 'Facilitator' rather than a judge and
emphasis is on the work situation, not the business of the individual.
 Can lead to a wide range of changes in work practices, patterns of supervision and
individual attitudes.

54
  Managers need to have the following characteristics

 Be well prepared
 Show trust
 Be active listeners
 Discuss frankly any areas where performance IS not up to standard, backing this with
specific examples.
 Conversely good performance should be praised, again using specific examples.

 It is also important for the employee not to leave the interview with any issues unsolved.
Whatever is the approach followed, the emphasis in the interview should be on
counseling and development and not on criticism, witch- hunting and buck passing.
Because of the significance of appraisal interview, every effort must be made to make it
effective. Guidelines given will help make the interview successful.

Guidelines for Effective Appraisal Interview:

 Select a good time

 Minimize interruptions
 Welcome, set at ease
 Start with something positive
 Ask open-ended questions to encourage discussion
 Listen
 Manage eye contact and body language
 Be specific
 Rate behavior, not personally
 Layout development plan
 Encourages subordinate participation
 Set mutually agreeable goals for improvement
 End in a positive, encouraging note

55
 Pitfalls of Performance Management Programs :- Obstacles to the success of
formal Performance Management programs should be familiar to most managers,
either from painful personal experience or from the growing body of critical
literature. Here are the most troublesome and frequently cited drawbacks.

 Performance Management programs demand too much from supervisors.Formal

performance appraisal obviously requires at least periodic supervisor observation of
subordinates' performance. However, the typical first - line supervisor can hardly know, in a
way, just what each of 20, 30, or more subordinates are doing.
 Standards and ratings tend to vary widely and often, unfairly. Some rates are tough, while
some are lenient. Some departments have highly competent people; others have less
competent people. Consequently, employees subject to less competition or lenient ratings
can receive higher appraisals than equally
 Personal values and bias can replace organizational standards. An appraiser may not lack
standards, the standards he uses are sometimes wrong ones. For example unfairly low
ratings may be given to valued subordinates so they will not be promoted out of the rater's
department. More often, outright bias dictates favored treatment for some employees.
 Because of lack of communication, employees may not know how they are rated. The
standards by which employees think they are being judged are sometimes different from
those their supervisors actually use. No performance appraisal system can be very effective
for management decisions, organization development, or any other purpose until the people
being appraised know what is expected of them and by what criteria they are being judged.
 Management techniques tend to be used as performance panaceas. If a worker lacks the
ability or has not been given the necessary training for his job, it is neither reasonable to try
to stimulate adequate performance through performance management, nor fair to base salary,
dismissal, or other negative decisions on such an appraisal.
 In many cases, the validity of ratings is reduced by supervisory resistance to making the
ratings. Rather than confront their less effective subordinates with negative ratings, negative
feedback in appraisal interviews, and below average salary increases, supervisors often take
the more comfortable way out and give average or above average ratings to inferior
performers.

56
The appraisal process begins with the establishment of performance standards. These should
have evolved out of job analysis and the job description discussed under human resource
planning. These performance standards should also be clear and objective enough to be
understood and measured. Too often, these standards are articulated in some such phrase as "a
full day's work" or "a good job". Communication only takes place when the transference has
taken place and has been received and understood by the subordinate. Therefore feedback is
necessary from the subordinate to the manager. Satisfactory feedback censures that the
information communicated by the manager has been received and understood in the way it was
intended.

The third step in the appraisal in the measurement of performance. To determine what actual
performance. To determine what actual performance is, it is necessary to acquire information
about it. We should be concerned with how we measure and what we measure.

What we measure is probably more critical to the evaluation process than how we measure,
since the selection of the wrong criteria can result in serious dysfunctional consequences. And
what we measure determines, to a great extent, what people in the organization will attempt to
excel at.

One of the most challenging tasks facing managers is to present an . accurate appraisal to the
subordinate and then have the subordinate accept the appraisal in a constructive manner.
Appraising performance touches on one of the most emotionally charged activities the
assessment of another individual's contribution and ability. The impression that subordinates
receive about their assessment has a strong impact on their self-esteem and, very important, on
their subsequent performance.

The final step in the appraisal is the initiation of corrective action when necessary. Corrective
action can, be of two types. One is immediate and deals predominantly with symptoms. The
other is basic and delves into causes. Immediate corrective action often described as "putting
out fires," whereas basic corrective action gets to the source of deviation and seeks to adjust the
difference permanently..

57
 THE APPRAISAL PROCESS

Established performance standard

Communicate performance expectations to employee

Measure actual performance

Compare actual performance with standards

Discuss the appraisal with the employees.

If necessary, initiate the corrective action

58
 METHODS OF PERFORMANCE APPRAISAL

Traditional Methods

 Ranking Method
 Paired Comparison
 Grading
 Forced Distribution Method
 Force Choice Method
 Graphic Scale Method
 Essay Method.
 Field Review Method.

TRADITIONAL METHODS OF PERFORMANCE APPRAISAL

Ranking Method:-

Ranking is the oldest and simplest method of appraisal in which a person is ranked against others
on the basis of certain traits and characteristics. In the ranking method, various persons are given
ranks on the basis of their traits. This is a very simple method when the number of persons to be
ranked is small because ranking has to be given on the basis of traits, which are not easily
determinable.

Paired Comparison:-

Paired comparison method is a slight variation of ranking system designed to increase its value
for use in the large groups. In this method, each person compared with other persons taking only
one at a time. This method provides better comparison of persons. However, this increases the
work because of large number of comparisons. This can be calculated by a formula N (N-1)/2
where N is the total number of persons to be compared.

59
Grading:-

In this method, certain categories of abilities or performances are defined well in the advance and
persons are put in particular category depending on their traits and characteristics. Such
categories may be definitional like outstanding, good, average, poor, very poor, or may be in
terms of letters like A, B, C, D, etc. with A indicating the best and D indicating the worst.

Forced Distribution Method:-

In this method the appraiser is forced to appraise the appraises according to the pattern of a
normal curve. The basic assumption in this method is that employee‟s performance level
conforms to a normal statistical distribution. This method is useful to rate job performance and
promo ability.

Forced –Choice Method:-

The Forced-choice rating method contains a series of group of statements and the rater
checks how effectively the statement describes each individual being evaluated. There may be
some variations in the method and statements used, but the most common method of forced
choice contains two statements, both of which may be positive or negative.

o The employee is hard working.

o The employee gives clear instructions to his subordinates.

Both these statements are positive but the rater is asked to rate only one, which is more
descriptive of his subordinate‟s behavior. This is done to avoid subjectivity in rating.

Graphic Scale Method:-

Graphic Scale also known as linear rating scale is the most commonly used method of
performance appraisal. In this method, a printed appraisal form is used for each appraisal the
form contains various employee characteristics and his job performance. Various characteristics
include initiative, leadership, dependability, cooperativeness, enthusiasm, creative ability,

60
analytical ability, decisiveness, emotional maturity, etc. depending on the level of the employee.
The rating is done on the basis of scale which is in continuum 5, 4, 3, 2 and 1 in that order can be
used to denote points for various degrees of excellent-poor, high-low, or good-bad, and so on.

Essay Method:-

Some companies use free essay method, or sometimes, combine this with other methods. In
essay method, the rater assesses the employees on certain parameters in his own words. Such
parameters may be as follows:

 Work performance in terms of quality, quantity and costs;

 Knowledge about the job;
 Knowledge about organizational policies, procedures and rules;
 Employee‟s characteristics and behavior;
 Employee‟s strengths and weaknesses;
 Overall suitability of the employee;
 Employee‟s potential and promotability, and
 Training and development needs of the employee.

The essay method is useful in providing useful information about an employee on the basis of
which he can be appraised.

Field Review Method:-

In the field review method, an employee is not appraised by his direct superior but by another
person, usually from personnel department. The basic idea is that such a person may take more
objective view in appraisal, as he is not under pressure as the superior of the employee may be.
The rater, in this case, appraises the employee based on his records of output and other
quantitative information such as absenteeism, late coming, etc. The rater also conducts
interviews of the employee and his superior to ascertain qualitative aspects of job performance.
This method is more suitable for promotion purpose.

61
 MODERN METHODS OF PERFORMANCE APPRAISAL

Assessment Centre Method:- Under this technique many evaluators join together to judge
employee performance in several situations with the use of a variety of criteria. It is used mostly
to help and select employee for the first level supervisory position Assessments are mode to
determine employee potential for purpose of promotion. The merit of this system is that it is a
better method for identifying managerial potential than any other method.

Appraisal by Management by Objective (MBO):- Concept of Management by

Objective (MBO) has been offered by Peter Ducker‟s under this technique, the subordinate sets
his short-term performance goals in consultation with the superior. Goals explicitly state the
actions, which the employee will follow. The subordinate appraises his own performance by
evaluating it vis-à-vis goals. The supervisor is not the evaluator, but directs the goal setting
process to ensure that it matches the objective of the organization.

TOOLS OF PERFORMANCE APPRAISAL

In recent years, the purposes of performance appraisals have greatly expanded. Today
performance appraisals are used by organizations not only for wage increase, transfers & layoffs
but also as a means of communication, motivation & development of employees in an
organization.

Management by Objectives: - Management by Objectives (MBO) is used in this report

to mean as an approach to appraising performance by results. This approach tends to emphasis a
participative but joint determination of objective followed by a participative but joint evaluation
of success in periodic appraisal interviews.

Career Progression: - This phase is used here to mean the upward movement in the career
path through a planned Promotion Scheme.

62
Job Rotation: - It implies the shifting of an employee from one job to another so that
monotony and boredom are reduced and at the same time there is an increase in the skill and
knowledge of the employee about related job.

Job Enrichment :- The term „Job enrichment‟ is used in this report to mean a deliberate
upgrading of responsibility, scope and challenge of the job as a non-financial motivation
device.

Motivation: - Motivation is taken to man as a willingness to expand energy to achieve a goal

or reward. It is a force that activates a dormant energy and acts in motion the action of the
people .It is the function that kindles a burning passion for action among the human beings of an
organization.

Promotion: - Performance appraisal has duality of objectives evaluation of an employee in

his/her present role & their development for doing the present job in better way as well as to
develop him for the higher order job. The performance of this higher order job depends on their
potential in the light of the requirements of the new job. Thus, to determine an employee‟s
likelihood to succeed in the new job, potential appraisal is carried.

Communication:- Performance appraisal helps clear communication between the superiors

and their subordinates. Communication helps in giving feedback to managers on their
performance and thus providing satisfaction to the executive.

APPRAISAL PROCESS

 Self – Appraisal
 Performance Review and planning
 Performance Assessment
 Development plan
 Evaluation and Final grading

63
SELF APPRAISAL

Tasks/targets indicating a few key performance Areas will be set for each appraisee by his
reporting Officer in consultation with the former , This will be communicated to the appraisee by
31st March of every year , before the of the assessment year. The self-appraisal form will be
filled up by the appraisee twice a year in the first week of October and then in the first week of
April.

The appraisee will factually report on the following, in the Self Appraisal every six months:-

 Tasks/targets fulfilled
 Constraints faced
 Facilitating resources
 Suggestions for improvement

In addition, the appraisee will indicate the following while filling up the self appraisal at the end
of the assessment year.

 The highlights of performance

 Major strengths
 Developmental needs

PERFORMANCE REVIEW AND PLANNING

After Self Appraisal, performance Review and planning will be held twice a year between the
appraise and the Reporting Officer in October and April.

During the PRP session, the Reporting Officer will ensure a conducive climate for discussion.

In the PRP session, the Reporting Officer and the appraise will discuss:

The extent of task/targets fulfilled.

64
Major strengths of the appraise

Developmental needs.

Suggestions for improvement of the individual and the team performance.

In the PRP held in October, the discussion will be based on completion of the tasks/ targets up to
the mid year and will incorporate all mid-course change in the tasks/targets for the remaining six
months. In the PRP held in April, the discussion will be based on fulfillment of tasks / targets of
the assessment year.

The outcomes of PRP discussion will be noted in the specific form and signed by both the
Reporting Officer and appraise.

PERFORMANCE ASSESSMENT

The performance of the appraisee will be assessed after the PRP is held. The reporting officer
will assess the appraisee on a five point rating scale on the following factors. Each factor will
carry a weight as indicated below

PERFORMANCE MANAGEMENT

Since organizations exits to achieve goals, the degree of success that individual employees have
in reaching their individual goals is important in determining organization effectiveness.
Performance system is fundamentally, a feed back process, which require sustained commitment.
The cost of failure to provide such feedback may result in a loss of key professional employees,
the continued poor performance of employees who are not meeting performance standards and a
loss of commitment by employees, in sum, the myth that the employee know what. they are
doing without adequate feedback from management can be an expensive fantasy.

65
 REQUIREMENT OF THE PERFORMANCE MANAGEMENT SYSTEM

Reliability: The foremost requirement of a sound system is reliability. In this contact it refers
to consistency of judgment. For any given employee, appraisals made by raters working
independently of one another should agree closely. But raters with different perspective (e.g.
supervisors, peers, subordinates) may see the same individuals job performance very
differently. To provide reliable data, each rater must have an adequate opportunity to observe
what the employee has done and the condition under which he or she has done it. By making
appraisal system relevant, sensitive and reliable we assume the resulting judgment are valid as
well.

Acceptability: In practice, acceptability is the most important requirement of all, for it is true
that human resources program must have the support of. those who will use them.
Unfortunately, many organizations do not put much effort into garnering the front end support
and participation of those who will use the appraisal system. Ultimately it is management's
responsibility to define as clearly as possible the type and level of job behaviour desired of
employees. It is important to enlist the active support and cooperation of subordinates by
making explicit what aspects of job performance they will be evaluated on.

Practicality: This implies that appraisal instruments are easy for managers and employees to
understand and to use. For years, personnel specialists have searched for the 'Perfect; appraisal
method as if it were some kind of miraculous cure for many pitfalls that plague organizations.
Such a method does not exist. In tomorrow‟s world of work far more emphasis needs to be
placed on process issues. Factors such as timing and frequency are no less important. In sum
performance appraisal is a dialogue involving people and data. Both technical and human issues
are involved. Neither can be overemphasized at the expense of the other.

Controversy

Few issues in management stir up more controversy than performance appraisal. There are
many reputable sources -researchers, management commentators, psychometricians -who have

66
expressed doubts about the validity and reliability of the performance appraisal process. Some
have even suggested that the process is so inherently flawed that it may be impossible to perfect
it (see Derven, 1990, for example). At the other extreme, there are many strong advocates of
performance appraisal. Some view it as potentially "... the most crucial aspect of organizational
life" (Lawrie, 1990).

Between these two extremes lie various schools of belief. While all endorse the use of
performance appraisal, there are many different opinions on how and when to apply it, There are
those, for instance, who believe that performance appraisal has many important employee
development uses, but scorn any attempt to link the process to reward outcomes -such as pay
rises and promotions. This group believes that the linkage to reward outcomes reduces or
eliminates the developmental value of appraisals. Rather than an opportunity for constructive
review and encouragement, the reward- linked process is perceived as judgmental, punitive and
harrowing. For example, how many people would gladly admit their work problems if, at the
same time, they knew that their next pay rise or a much-wanted promotion was riding on an
appraisal result? Very likely, in that situation, many people would deny or downplay their
weaknesses.

Nor is the desire to distort or deny the truth confined to the person being appraised. Many
appraisers feel uncomfortable with the combined role of judge and executioner.

Such reluctance is not difficult to understand. Appraisers often know their appraises well, and
are typically in a direct subordinate-supervisor relationship. They work together on a daily
basis and may, at times, mix socially. Suggesting that a subordinate needs to brush up on
certain work skills is one thing; giving an appraisal result that has the direct effect of negating
a promotion is another. The result can be resentment and serious morale damage, leading to
workplace disruption, soured relationships and productivity declines.

On the other hand, there is a strong rival argument which claims that performance appraisal
must unequivocally be linked to reward outcomes. The advocates of this approach say that
organizations must have a process by which rewards -which are not an unlimited resource -may
be openly and fairly distributed to those most deserving on the basis of merit, effort and results.

67
There is a critical need for remunerative justice in organizations. Performance appraisal -
whatever its practical flaws -is the only process available to help achieve fair, decent and
consistent reward outcomes. It has also been claimed that appraises themselves are inclined to
believe that appraisal results should be linked directly to reward outcomes -and are suspicious
and disappointed when told this is not the case. Rather than feeling relieved; appraises may
suspect that they are not being told the whole truth, or that the appraisal process is a sham and
waste of time.

The Link to Rewards

Recent research (Bannister & Balkin, 1990) has reported that appraises seem to have greater
acceptance of the appraisal process, and feel more satisfied with it, when the process is directly
linked to rewards. Such findings are a serious challenge to those who feel that appraisal results
and reward outcomes must be strictly isolated from each other. There is also a group who argues
that the evaluation of employees for reward purposes, and frank communication with them
about their performance, are part of the basic responsibilities of management. The practice of
not discussing reward issues while appraising performance is, say critics, based on inconsistent
and muddled ideas of motivation.

In many organizations, this inconsistency is aggravated by the practice of having separate wage
and salary reviews, in which merit rises and bonuses are decided arbitrarily, and often secretly,
by supervisors and managers.

There are basically three purposes to which performance appraisal can be put. First, it can be
used as a basis for reward allocation. Decision as to who gets salary increase, promotion, and
other rewards are determined by their performance evaluation. Second, these appraisals can be
used for identifying areas where development efforts are needed. The performance appraisal is a
major tool for identifying deficiencies in individuals. Finally it can be used as a criterion against
which selection devices and development programs are validated. As a key input into
management's reward and punishment decision, performance appraisals can motivate or de-
motivate employees.

68
Three different approaches exist for doing appraisals. Employees can be appraised against

1. Absolute standards

2. Relative standards

3. Objectives

WHO SHOULD EVALUATE PERFORMANCE?

The most fundamental requirement for any rater is that he or she has an . adequate opportunity to
observe the rates job performance over a reasonable period of time. This suggest several possible
raters.

The immediate supervisor: Generally appraisal is done by this person. He is probably

the most familiar with the individual's performance and in most jobs has had the best
opportunity to observe actual job performance. Further more, the immediate supervisor is
probably best able to relate the individual's performing to department and organizational
objectives.

In some jobs such as outside sales, law enforcement and teaching, the immediate supervisor
may observe a subordinate's actual job performance rarely (and indirectly thru written
reports). Here judgment of peers play important role. However, there is a danger of potential
bias.

Subordinates: Appraisal by subordinates can be useful input to the immediate

development. Subordinates know first hand the extent to which the supervisor actually
delegates, how well he communicates, the type of leadership he has and the extent to which
he or she plans and orgasms

Self appraisal: On one hand it improves the rate's motivation and moral, on the other it tends
to be more lenient, less variable and biased. The evidence on the accuracy of self
assessment is fairly complex.

69
A satisfactory performance implies doing a job effectively and efficiently, with a minimum
degree of employee -created disruptions. Employees are performing well when they are
productive. Yet productivity itself implies both concern for effectiveness and efficiency.
Effectiveness refers to goal accomplishment. Efficiency evaluates the ratio of inputs consumed
to outputs achieved. The greater the output for a given input, the more efficient the employees.
Similarly, if output is a given, consumed to get that output results in greater efficiency.

There are basically three purposes to which performance appraisal can be put. First, it can be
used as a basis for reward allocations. Decisions as to who gets salary increases, promotions, and
other rewards are determined by their performance evaluation. Second, these appraisals can be
used for identifying areas where development efforts are needed. Management needs to spot
those individuals who have specific skill or knowledge deficiencies. The performance appraisal
is a major tool for identifying these deficiencies. Finally, the performance appraisal can be used
as a criterion against which selection devices and development programs are validated.

70
 CHAPTER-4

RESEARCH
METHODOLOGY

71
 RESEARCH METHODOLOGY

Research comprises "creative and systematic work undertaken to increase the stock of
knowledge, including knowledge of humans, culture and society, and the use of this stock of
knowledge to devise new applications." [ 1] It is used to establish or confirm facts, reaffirm the
results of previous work, solve new or existing problems, support t h e o rem s , or develop
new t h e o rie s . A research project may also be an expansion on past work in the field.
Research projects can be used to develop further knowledge on a topic, or in the example of
a school research project, they can be used to further a student's research prowess to prepare
them for future jobs or reports. To test the validity of instruments, procedures, or
experiments, research may replicate elements of prior projects or the project as a whole. The
primary purposes of basic research (as opposed to a p p l i e d r e s e a r c h ) are documentation,
discovery, interpretation, or the research and development (R&D) of methods and systems
for the advancement of human knowledge. Approaches to research depend on
epistemologies, which vary considerably both within and between humanities and sciences.
There are several forms of research: scientific, humanities, artistic, economic, social,
business, marketing, practitioner research, life, technological, etc.

TYPES OF RESEARCH
 Exploratory Research
 Descriptive Research
 Experimental Research

(A). Exploratory Research:-

Exploratory research studies are also termed as formulative research studies. The main
purpose of such studies is that of formulating a problem for more precise investigation.

(B) Descriptive Research:-

Descriptive research is concern with describing the characteristics of a population of
phenomenon.

72
(C) Experimental Research:-
Experimental research studies arc those where the researcher test the hypothesis of casual
relationships between variables.

OBJECTIVES OF THE STUDY

There are basically three purposes to which performance appraisal can be put.

 First, it can be used as a basis for reward allocations. Decisions as to who gets salary
jncreases, promotions, and other rewards are determined by their performance
evaluation.

 Second, these appraisals can be used for identifying areas where development efforts
are needed. Management needs to spot those individuals who have specific skill or
knowledge deficiencies. The performance appraisals is a major tool for identifying these
deficiencies.

 Finally the performance appraisal can be used as a criterion against which selection
devices and development programs are validated. It is one thing to say, for example,
that our selection process is successful in differentiating satisfactory performers from
unsatisfactory performers.

RESEARCH DESIGN

 “A research design is the arrangement of condition for collection & analyzing of

data in a manner that aims to combine relevance to the research purpose with
economy in procures."
 “Research design is the framework or the blueprint or foundation for conducting the
research project”
 “Research design is the conceptual structure within which research IS conducted its

73
 constitutes. The blueprint for the collection, measurement and analysis of data”

METHODS OF DATA COLLECTION

Data Collection Method

 Both primary and secondary data were collected to meet the objective.
Source of Data
(a) Primary Data:
 Primary data is the data which is collected for the first time. It is collected from
the source of origin
 For primary data collection questionnaire was framed considering certain
 factors like manpower planning, recruitment sources, selection method etc.
 A copy of questionnaire is also attached in the Annexure. Questionnaire method
is being followed and was preferred over interview method
 because:-
 It is more economical
 This method can cover wider areas.
 This method is original and therefore very reliable.
 Respondents feel more comfortable while answering the
 questions asked.
(b) Secondary Data:
 The secondary data are those which are already in existence and which have
been collected for some other purpose.
 The secondary data can be collected from the following sources:-
 Company Reports.
 Pamphlets.
 Magazines.
 Personnel Department.
 Hooks on communication

74
 LIMITATIONS OF THE STUDY

The following are the limitations faced by me during the course of the study the sample
consisted only of employees in the day shift.

 Employees of the nightshift were not considered for the purpose of study.
 There is no concrete basis to prove the response given is a true measure of the
opinion of all the employees as a whole.
 Convenient sampling was used as the mode of conducting the research.
 The questionnaire contained mostly multiple-choice questions; therefore many
respondents may not have given a proper thought before answering the questions.
 The response of the respondents may not be accurate thinking that
the\management might misuse the data.
 Almost all of the questionnaires had the open-ended question no. 11, left
unanswered. Sensitive company information cannot be displayed in the project
report.
 Most respondents might be influenced by their peers in answering the questions.
Due to the fact that most of the respondents were young, the questions might not
have been answered with due sincerity.

75
 CHAPTER-5

DATA ANALYSIS &

INTERPRETATION

76
 DATA ANALYSIS AND INTERPRETATION

1. I am satisfied and totally concerned with the performance appraisal

policies laid by the top management.

TABLE 5.1 performance appraisal policies laid by the top management.

Disagree 12%
Neither agree nor Disagree 7%
Strongly Disagree 5%
Strongly Agree 35%
Agree 41%

DIAGRAM 5.1

STRONGLY DISAGREE

5% 12% DISAGREE
35% 7%
NEITHER AGREE NOR
DISAGREE
AGREE
41%
STRONGLY AGREE

Data Analysis & Interpretation: About 76% of the respondents showed their satisfaction
about the way the policies have been laid by the performance
It is a good sign for an organization like ABB where number of people working is very large.
The case of worry for the company is that around 5% of the respondents have strongly
disagreed and 7% neither agreed nor disagreed which indicates that these respondents are
either very dissatisfied or not properly concerned about the policies

77
2. Communications with the top management are canalized properly with the
rest of the organization.

TABLE 5.2 top management are canalized properly with the rest of the

organization.

Disagree 15%
Neither agree nor Disagree 2%
Strongly Disagree 24%
Strongly Agree 15%
Agree 44%

DIAGRAM 5.2

STRONGLY
DISAGREE
15% 15% DISAGREE

NEITHER AGREE NOR

24% DISAGREE
AGREE
44% 2%
STRONGLY AGREE

Data Analysis & Interpretation: The response says that about 60% of the people agree with
the channels of communication as laid by the ABB
Where as nearly 40% have disagreed which highlights employees are dissatisfied due to
ABB being over staff.

78
3. I believe that ABB is professionally managed company.

TABLE 5.3 ABB is professionally managed company.

Disagree 4%
Neither agree nor Disagree 7%
Strongly Disagree 4%
Strongly Agree 40%
Agree 45%

DIAGRAM 5.3

STRONGLY
DISAGREE
4% DISAGREE
4%
40% 7%
NEITHER AGREE
NOR DISAGREE
AGREE
45%

STRONGLY AGREE

Data Analysis & Interpretation: 85% of the respondents have again respected the
organization and taking its side have responded positively to it.
It clearly indicates that to a very good extent ABB employees show due respect to the
organizations.

79
4. I am satisfied with the way the performance appraisal is conducted.

TABLE 5.4 Performance Appraisal Is Conducted.

Disagree 10%
Neither agree nor Disagree 2%
Strongly Disagree 5%
Strongly Agree 25%
Agree 58%

DIAGRAM 5.4

STRONGLY
DISAGREE
5% 10% DISAGREE
25%
2%
NEITHER AGREE
NOR DISAGREE
AGREE
58%
STRONGLY AGREE

Data Analysis & interpretation: Above 80% of the respondents have assured that HR
policies have been directed towards employee satisfaction.
A proper care of employees‟ benefits has been taken by the department.

80
 5. Suggestion scheme maintained by the ABB are encouraging.

TABLE 5.5 Suggestion scheme maintained by the ABB are encouraging

Disagree 10%
Neither agree nor Disagree 2%
Strongly Disagree 4%
Strongly Agree 20%
Agree 64%

DIAGRAM 5.5

STRONGLY
DISAGREE
4% DISAGREE
20% 10%
2%
NEITHER AGREE
NOR DISAGREE
AGREE
64%
STRONGLY AGREE

Data analysis & Interpretation: 84% of the responded have proved that ABB has been
well taking care of Welfare for employees.
The study about the performance appraisal relating to facilities provided has been visibly
proved through the data represented.

81
6. ABB providing a good performance appraisal

TABLE 5.6 ABB providing a good performance appraisal

Disagree 15%
Neither agree nor Disagree 3%
Strongly Disagree 5%
Strongly Agree 35%
Agree 42%

DIAGRAM 5.6

STRONGLY
5% DISAGREE
15% DISAGREE
35%
3% NEITHER AGREE
NOR DISAGREE
AGREE

42% STRONGLY AGREE

Data analysis & Interpretation: The data represents that employees have fair good response
of performance 77% positive response against the 20% dissatisfied ones is enough to prove
the above fact.

82
 7. The performance appraisal policy of both internally and externally has
been properly controlled.

Table 5.7 performance appraisal policy of both internally and externally has

been properly controlled

Disagree 39%
Neither agree nor Disagree 8%
Strongly Disagree 14%
Strongly Agree 18%
Agree 21%

DIAGRAM 5.7

STRONGLY
14% DISAGREE
18%
DISAGREE

NEITHER AGREE
21% NOR DISAGREE
39% AGREE

8% STRONGLY AGREE

Data analysis & Interpretation: The response suggests the organization to take care about
its performance appraisal policy.
Where below 40% respondents felt that it does works well but overall there were 14% who
strongly disagreed and other 39% felt same to a good extent and 8% were confused enough.

83
 8. Company has always takes corrective disciplinary action towards every
misconduct held by.

TABLE 5.8 Company has always takes corrective disciplinary action towards

every misconduct held by

Disagree 30%
Neither agree nor Disagree 2%
Strongly Disagree 12%
Strongly Agree 30%
Agree 39%

DIAGRAM 5.8

STRONGLY
DISAGREE
12% DISAGREE
17%

NEITHER AGREE
30% NOR DISAGREE
39% AGREE
2%

STRONGLY AGREE

Data analysis & Interpretation: The response towards the disciplinary action towards
misconduct has been in the 50:50 Ratio.
The worry for the organization is that large numbers of respondent‟s i.e.44% do not believe
in the discipline procedure of the organization as maintained till now.
The possible reason perceived does the large no of employees in ABB as well as large no of
workers constitute the workforce.

84
9. Overall, I am happier at my company than I was a year ago.

Table 5.9 Overall, I am happier at my company than I was a year ago

Disagree 20%
Neither agree nor Disagree 5%
Strongly Disagree 1%
Strongly Agree 20%
Agree 50%

Diagram 5.9

STRONGLY
DISAGREE
1% DISAGREE
24% 20%
5% NEITHER AGREE
NOR DISAGREE
AGREE
50%
STRONGLY AGREE

Data analysis & Interpretation: For any company with around such great performance
appraisal strength having nearly 3/4th of the respondents assuring faith in the management system
of the company is a god sign for a further bright future of such organization.

85
10: Do you think that performance appraisal is the tool that improves
employees’ performance level?

Table 10.10 Performance appraisal improves employees’ performance level?

TO SOME EXTENT TO A GREAT EXTENT NOT AT ALL

8%
18% 74%

DIAGRAM 10.10

Data analysis & Interpretation: The data represents that employees have fair good response of
performance level 74% positive response against the 18% dissatisfied ones is enough to prove
the above fact.
The graph shows 74% employees agree that up to a great extent, 18% say that to some extent and
8% of the employees believe performance appraisal not at all improves performance appraisal.

86
 CHAPTER-8

CONCLUSION &
SUGGESTIONS

87
 CONCLUSIONS

The following are the suggestions and conclusions derived from this particular research study
One manager's idea of "self-starting ability" can be quite different than another's idea. The
question then arises as to how does one objectively valuates "creativity? If greater amount of
objectivity can be infused into the Appraisal system, it can help to bring more transparency.
Effective Communication One function of performance appraisals is to help employees develop
so they can contribute more effectively. In order for the employees to develop and learn they
need to know what they need to change, where (specifically) they have fallen short, and what
they need to do. If a manager assigns a 1(unsatisfactory) on a scale of 5, it does not convey much
information to an employee. It just says the manager is dissatisfied with something. In order to
make it meaningful and promote growth, far more information must be added to the appraisal
process and the related information should be transparently shared with the employee. Fairness

Most employees resist being classified at the low end of the scale. Employees argue, claiming
that personal bias was involved in the ratings. Managerial Efficiency The implementation of a
Performance Appraisal System rests on the shoulders of the manager and he must ensure that it is
done properly. A good manager can make an average appraisal system work and vice-versa.

88
 SUGGESTIONS

The suggestions after the survey are:

 The Performance Appraisal should be done on half-yearly basis rather than on yearly
basis.
 After the performance Appraisal, the supervisor should personally discuss the strength
and weakness of the managers.
 Everyone should feel free to express their opinion openly without any hesitation.
 The employee in the organization should be made aware of the latest method of the
Performance Appraisal like 3600 Appraisal.
 Proper training should be provided to the managers after discussing the weakness of
the manager.
 All employees should be made of the Performance Appraisal system

89
 CHAPTER-7

BIBLIOGRAPHY

90
 BIBLIOGRAPHY

BOOKS

 K.aswathappa, Human Resource Personal Management.

 V.S.P Rao, Human Resource Management.
 C.R.Kothari ,Methods & Techniques,New Delhi, Age International publications.
 D.N.Venkatesh ,H uman Resource Management.
 Shekharan Uma, Business Research Method, John Wiley Publications.
 Zikmud ,Business Research Methods, Cenage Publications.
 Copper, Business Research Methods, Tata MCGraw Hill.

WEBSITES

 www.hrworld.com
 www.hr.com
 www.google.com
 Adept.Com

 Mitsubishielectric.In

 www.fanuc.co.in

91
 CHAPTER-8

ANNEXURE
 QUESTIONNAIRE

92
 ANNEXURE

QUESTIONNAIRE

1. I am satisfied with the performance appraisal policies laid by the top management.

2. Communications with the top management are channalised properly with the rest of the
organization.

5. I believe that ABB is professionally managed company.

6. I am satisfied with the way the performance appraisal is conducted.

7.ABB providing a good performance appraisal policy

8. The performance appraisal policy of both internally and externally has been properly
controlled.

93
9. Suggestion scheme maintained by the ABB are encouraging.

10.Overall, I am happier at my company than I was a year ago.

As an employee I would like to do the following to make ABB a world-class organization.

NB: Please use additional sheets if needed and staple them to your questionnaire.

PLEASE NOTE:
SD= Strongly Disagree; D= Disagree; A=Agree; SA=Strongly Agree;
NAND=Neither Agree Nor Disagree

94