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A

SYNOPSIS

ON

360 DEGREE PERFORMANCE APPRAISAL

AT

HERO MOTOCORP LIMITED

A Project report submitted to Osmania University

In partial fulfilment for the Award of the Degree of

MASTER OF BUSIUNESS ADMINISTRATION

Submitted by

S. DANI KRISHNA

HT NO: 212118672100

UNDER THE GUIDANCE OF

--------------------------------------

ARISTOTLE PG COLLEGE

(Affliated To Osmania University,Hyderabad)

Recognized By UGC under section 2(f) of UGC Act 1956

Beside Moinabad Police Station,

Chilkur, Moinabad ,Ranga Reddy District, Telangana.


CHAPTER-I
INTRODUCTION
INTRODUCTION
Human Resource Management

Human resource management (HRM) is the strategic and coherent approach to the
management of an organization's most valued assets - the people working there who
individually and collectively contribute to the achievement of the objectives of the business

“Human resource management is a collective implementation of managerial functions


such as planning, organizing, directing and, controlling to reach the organization goals”

360 DEGREES PERFORMANCE APPRAISAL


360 Degrees Performance appraisals is a formal system that evaluates the quality of a
worker’s performance; an appraisal should not be viewed as an end in itself, but rather as an
important process within a broader performance management system that links:
• Organizational objectives
• Day-to-day performance
• Professional development
• Rewards and incentives
Effects of 360 Degrees Performance appraisal On Careers of Employee:
360 Degrees Performance appraisal helps to identify the hidden talents and potential
of the individuals. Identifying these potential talents can help in preparing the individuals for
higher responsibilities and positions in the future. The 360 Degrees Performance appraisal
process in itself is developmental in nature. It is also closely linked to other HR processes
like helps to identify the training and development needs, promotions, demotions, changes in
the compensation etc. A feedback communicated in a positive manner goes a long way to
motivate the employees and helps to identify individual career developmental plans. Based
on the evaluation, employees can develop their career goals, achieve new levels of
competencies and chart their career progression. 360 Degrees Performance appraisal
encourages employees to reinforce their strengths and overcome their weaknesses.
Types Of Performance Apprisal:
1.Critical Incident Method:
This format of 360 Degrees Performance appraisal is a method which is involved
identifying and describing specific incidents where employees did something really well or
that needs improving during their performance period.
2. Weighted checklist method:
In this style, 360 Degrees Performance appraisal is made under a method where
the jobs being evaluated based on descriptive statements about effective and ineffective
behavior on jobs.

3. Paired comparison analysis:


This form of 360 Degrees Performance appraisal is a good way to make full use
of the methods of options. There will be a list of relevant options. Each option is in
comparison with the others in the list. The results will be calculated and then such option
with highest score will be mostly chosen.
4. Graphic rating scales:
This format is considered the oldest and most popular method to assess the
employee’s performance.
In this style of performance appraisal, the management just simply does checks on the
performance levels of their staff.
5. Essay Evaluation method:
In this style of performance appraisal, managers/ supervisors are required to
figure out the strong and weak points of staff’s behaviors. Essay evaluation method is a non-
quantitative technique. It is often mixed with the method the graphic rating scale.
6. Behaviorally anchored rating scales:
This formatted 360 Degrees Performance appraisal is based on making rates on
behaviors or sets of indicators to determine the effectiveness or ineffectiveness of working
performance. The form is a mix of the rating scale and critical incident techniques to assess
performance of the staff.
7. Performance ranking method:
The 360 Degrees Performance appraisal of ranking is used to assess the
working performance of employees from the highest to lowest levels.
Managers will make comparisons of an employee with the others, instead of making
comparison of each employee with some certain standards.
8. Management By Objectives (MBO) method:
MBO is a method of 360 Degrees Performance appraisal in which managers or
employers set a list of objectives and make assessments on their performance on a regular
basis, and finally make rewards based on the results achieved. This method mostly cares
about the results achieved (goals) but not to the way how employees can fulfill them.

9. 360 Degrees degree performance appraisal:


The style of 360 Degrees degree 360 Degrees Performance appraisal is a
method that employees will give confidential and anonymous assessments on their
colleagues. This post also information that can be used as references for such methods of
performance assessments of 720, 540, 180…

10.Forced ranking (forced distribution):


In this style of performance appraisal, employees are ranked in terms of
forced allocations.For instance, it is vital that the proportions be shared in the way that 10 or
20 % will be the highest levels of performances, while 70 or 80% will be in the middle level
and the rest will be in the lowest one.
11. Behavioral Observation Scales:
The method based on the scales of observation on behaviors is the one in
which important tasks that workers have performed during their working time will be
assessed on a regular basis.
Fundamentals of an appraisal system
To develop a successful 360 Degrees Performance appraisal system, two criteria need
to be met

• Relevance and applicability to everyday work practice


• Acceptability to appraisers and workers.
A systematic approach to 360 Degrees Performance appraisal can help ensure that
these two important criteria are met.
CHAPTER-II
REVIEW OF LITERATURE

The following five-step approach to conducting a systematic 360 Degrees Performance


appraisal is recommended:

1. Identify key performance criteria


2. Develop appraisal measures
3. Collect performance information from different sources
4. Conduct an appraisal interview
5. Evaluate the appraisal process.

Step 1: Identify key performance criteria


Perhaps one of the most challenging aspects of setting up a 360 Degrees Performance
appraisal is deciding what to assess. In essence, four key dimensions of performance should
be considered in a performance appraisal.

Key Dimensions of Performance:


Competencies : Knowledge, skills, and abilities relevant to
performance
Behaviors : Specific actions conducted and / or tasks performed
Results / outcomes : Outputs, quantify able results, measurable outcomes
and achievements, objectives attained
Organizational citizenship
behaviors : Actions that are over and above usual job
responsibilities
To ensure that the performance criteria are relevant to work practice and acceptable to
appraisers and workers:
i. Base the performance criteria on an up-to-date job description
ii. Develop criteria in consultation with appraisers and workers
Step 2: Develop appraisal measures

Once clear and specific performance criteria have been developed, the next step is to
decide how to assess workers’ performance. It is recommended that a structured and
systematic approach is taken to assessing performance. Problems that arise when an
unstructured “blank sheet” approach is used include:
• Increased chance of appraiser errors
• Knowledge, skills and abilities most critical to job performance may be overlooked
• Reduced consistency between appraisers
• Perceptions of “subjectivity” in evaluations, which may in turn, reduce workers’
satisfaction with, and acceptance of, appraisals.

Step 3: Collect performance information from different sources

Once the appraisal measures are developed, the next step involves collection of
accurate performance information. A common trap is to begin noting observations of workers
just before conducting appraisals. This is likely to give an inaccurate picture of a worker’s
performance. Ideally, workers’ performance should be observed in a systematic way over
time .This method ensures the accuracy of information about their performances.

Traditionally, it has been the sole responsibility of managers / supervisors to assess


performance. However, other organizational members can be a valuable source of
information as they are likely to have exposure to different aspects of a worker’s
performance. This approach is known as 360 Degrees-degree feedback. For instance,
coworkers can provide valuable information on teamwork skills, and subordinates can
provide useful information on leadership style.

Five different sources of 360 Degrees Performance appraisal information are


considered here:
i. Manager / supervisor appraisals
ii. Self appraisals
iii. Coworker appraisals
iv. Subordinate appraisals
v. Client appraisals.
Step 4: Conduct an appraisal interview
The next step in a 360 Degrees Performance appraisal is to conduct the appraisal interview.
The two central purposes of the appraisal interview are to:

• Reflect on past performance to identify major achievements, areas that


require further development, and barriers / facilitators to effective
performance

• Identify goals and strategies for future work practice.


Step 5: Evaluate the appraisal process

As with any organizational system, the 360 Degrees Performance appraisal process should
undergo regular review and improvement.
CHAPTER-III
RESEARCH METHODOLOGY
“Research is simply a systematic and refined technique of thinking, employing specialized
tools, instruments, and procedures in order to obtain a more adequate solution of a problem
than would be possible under ordinary means. It starts with a problem, collects data or facts,
analysis these critically and reaches decisions based on the actual evidence. It evolves
original work instead of mere exercise of personal. It evolves from a genuine desire to know
rather than a desire to prove something. It is quantitative, seeking to know not only what but
how much, and measurement is therefore, a central feature of it.”

NEED FOE THE STUDY:


Conducting study on 360 Performance appraisal at Heritage foods (india)limited, Guntur,
which is having all type of employees as it is manufacturing unit for different products.
Rating Scale 360 Performance appraisal is using by the company by the last few years with
effective and deliberate response form the employees. 360 Performance appraisal is one of
the key factor for analyzing the employee strength and weakness to provide compensation
according to their performance which is for the growth of the organization.

OBJECTIVES OF THE STUDY:

 To study the 360 Degrees Performance appraisal method conducting by the HERO
MOTOCORP LIMITED.
 To analyze the awareness and satisfaction of the employee in.
 To identify how far organization succeed in conducting performance appraisal.
 To review the performance of the employees over a given period of time.
 To judge the gap between the actual and the desired performance.
 To help the management in exercising organizational control.
 Helps to strengthen the relationship and communication between superior –
subordinates and management – employees.

SCOPE OF THE STUDY:


Provide employees with a better understanding of their role and responsibilities.
 Increase confidence through recognizing strengths while identifying training
needs to improve weaknesses.
 Improve working relationships and communication between supervisors and
subordinates.
 Increase commitment to organizational goals; develop employees into future
supervisors.
 Assist in personnel decisions such as promotions or allocating rewards, and allow
time for self-reflection, self-appraisal and personal goal setting.

RESEARCH METHODOLOGY

Work 360 Degrees Performance appraisal systems assess the employee's effectiveness, work
habits and also the quality of the work produced. The research methodology used to evaluate the
accuracy and effectiveness of the appraisal instrument takes different forms and depends on the
type of career professional under the microscope for ev
aluation, but the foundation for all evaluations rests on several basic research techniques. The
evaluation methodology corroborates the original employee evaluations and performance
appraisals through supporting multiple research reporting measures.

TYPE OF RESEARCH:
The present project is Descriptive in nature, the data based on facts collected with the help of
the tools and presented in the form of pie chart and bar-charts, and percentages, describing
present status of the appraisal technique adopted by the organization.

SOURCE OF DATA COLLECTION:

Data is the collection of the individual records in the form of numerical, words…etc for the
evidence of research. This can be done using the collection from different methods.
PRIMARY DATA:
The data that has been analyzed and observed by the researcher for the first time to their
knowledge. It is considered more reliable.
 Primary data collected form Engineers, Supervisors and Operators, with respect to the
content like their satisfaction, knowledge, feedback, Objectives of appraisal
form…etc.
 Mode of data collection : Questionnaire and interview method
 Data collection tool : Questionnaire.

SECONDARY DATA: This data is the statistics not gathered form immediate study at hand
but for some other purpose. The secondary data for the study was collected mainly from
appraisal form, website.

SAMPLE DESIGN:
It is definite plan for obtaining a sample from a given population. It refers to the technique or
the procedure the researcher would adopt in selecting items for the sample.
POPULATION: It refers to the aggregate of data source or any aggregate from which data is
collected .Unrevised is the target group of study and is finite.
SAMPLE SIZE: A sample is a small portion of the population. In the study a sample of 80
employees who are engineers, supervisors and operators.

 Sample size : 80 employees(Engineers, Supervisors, and operators)


TOOLS AND TECHNIQUES USED FOR ANALYSIS:

The basic tools used for the study were questionnaire and interview methods.
QUESTIONNAIRE: A questionnaire handed with engineers, supervisors, and operators
based on the various aspects of 360 Degrees Performance appraisal form. Questionnaire was
prepared on the basis content in appraisal form of the company which is helpful to understand
and brings the awareness about the technique.

INTERVIEW: Continuous interaction with various industry people provided me knowledge


on various helpful industry activities. And satisfaction and assessment level employee,
training programs within in the organization came to figure in mind.
The following are the techniques used to analyze the data collected.
PIE DIAGRAM: The circle is divided into number of sectors representing the values of the
data in identifying the accurate distribution.
TABULATION: The classified data is represented in an orderly way and this calls for
systematic representation of data.
CHAPTER-IV

COMPANY PROFILE

Hero MotoCorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world's largest
manufacturer of two - wheelers, based in India.
In 2001, the company achieved the coveted position of being the largest two-wheeler
manufacturing company in India and also, the 'World No.1' two-wheeler company in terms of
unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain this position
till date.

Today, every second motorcycle sold in the country is a Hero Honda bike. Every 30 seconds,
someone in India buys Hero Honda's top-selling motorcycle – Splendor.

Vision:
The Hero Honda story began with a simple vision – the vision of a mobile and an empowered
India, powered by Hero Honda. This vision was driven by Hero Honda’s commitment to
customer, quality and excellence, and while doing so, maintaining the highest standards of
ethics and societal responsibilities. Hero Honda believes that the fastest way to turn that
dream into a reality is by remaining focused on that vision.

Strategy:
Hero Honda’s key strategy has been driven by innovation in every sphere of activity –
building a robust product portfolio across categories, exploring new markets, aggressively
expanding the network and continuing to invest in brand building activities.

Manufacturing
Hero Honda bikes are manufactured across three globally benchmarked manufacturing
facilities. Two of these are based at Gurgaon and Dharuhera which are located in the state of
Haryana in northern India. The third and the latest manufacturing plant is based at Haridwar,
in the hill state of Uttrakhand.
Technology
In the 1980’s Hero Honda pioneered the introduction of fuel-efficient, environment friendly
four-stroke motorcycles in the country. Today, Hero Honda continues to be technology
pioneer. It became the first company to launch the Fuel Injection (FI) technology in Indian
motorcycles, with the launch of the Glamour FI in June 2006.
Products
Hero Honda's product range includes variety of motorcycles that have set the industry
standards across all the market segments. The company also started manufacturing scooter in
2006. Hero Honda offers large no. of products and caters to wide variety of requirements
across all the segments.

Distribution
The company's growth in the two wheeler market in India is the result of an intrinsic ability
to increase reach in new geographies and growth markets. Hero Honda's extensive sales and
service network now spans close to 4500 customer touch points. These comprise a mix of
authorized dealerships, Service & Spare Parts outlets, and dealer-appointed outlets across the
country.

Brand

The company has been continuously investing in brand building utilizing not only the new
product launch and new campaign launch opportunities but also through innovative
marketing initiatives revolving around cricket, entertainment and ground- level activation.

Hero Honda has been actively promoting various sports such as hockey, cricket and golf.
Hero Honda was the title sponsor of the Hero Honda FIH Hockey World Cup that was played
in Delhi during Feb-March 2010. Hero Honda also partners the Commonwealth Games Delhi
2019.
2019-18 Performance

Total unit sales of 54,02,444 two-wheelers, growth of 17.44 per cent


Total net operating income of Rs. 19401.15 Crores, growth of 22.32 per cent
Net profit after tax at Rs. 1927.90 Crores
Total dividend of 5250% or Rs. 105 per share including Integrin Dividend of Rs. 70 per share
on face value of each share of Rs. 2 each
EBIDTA margin for the year 13.49 per cent
EPS of Rs. 96.54
2017-16 Performance

Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent


Total net operating income of Rs. 15860.51 Crores, growth of 28.1 per cent
Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent
Final dividend of 1500% or Rs. 30 per share on face value of each share of Rs. 2
EBIDTA margin for the year 17.4 per cent
EPS of Rs. 111.77, growth of 74.1 per cent

HERO HONDA'S MISSION

Hero Honda’s mission is to strive for synergy between technology, systems and human
resources, to produce products and services that meet the quality, performance and price
aspirations of its customers. At the same time maintain the highest standards of ethics and
social responsibilities.

This mission is what drives Hero Honda to new heights in excellence and helps the
organization forge a unique and mutually beneficial relationship with all its stake holders.

HERO HONDA'S MANDATE

Hero Honda is a world leader because of its excellent manpower, proven management,
extensive dealer network, efficient supply chain and world-class products with cutting edge
technology from Honda Motor Company, Japan. The teamwork and commitment are
manifested in the highest level of customer satisfaction, and this goes a long way towards
reinforcing its leadership status
CHAPTER-V

CHAPTERIZATION

CHAPTERIZATION
CHAPTER-1
INTRODUCTION

CHAPTER-2
REVIEW OF LITERATURE
CHAPTER-3
RESEARCH METHODOLOGY
 NEED OF THE STUDY
 OBJECTIVES OF THE STUDY
 SCOPE OF THE STUDY
 DATA COLLECTION
 LIMITATIONS
 STATISTICAL TOOLS
CHAPTER-4
INDUSTRY/COMPANY PROFILE
CHAPTER-5
DATA ANALYSIS
CHAPTER-6
FINDINGS
CHAPTER-7
SUGGESTION & CONCLUSION
BIBLIOGRAPHY
ANNEXURES