A RESEARCH REPORT

ON

A STUDY ON PERFORMANCE APPRAISAL IN TATA MOTORS

SUBMITTED IN THE PARTIAL FULLFILMENT OF THE

REUIREMENT FOR THE AWARD ON THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

KIPM COLLEGE OF MANAGEMENT

Submitted by: Underguidence

Anjali Shrivastava MS VISHAKHA
JAISWAL

ROLLNO 1851770009 ASSISTANT

PROFESSOR

MBA 3rdsemester KIPM COLLEGE OF MANAGEMENT

 TABLE OF CONTENT

Sr.No. Contents Page no.

1. ACKNOWLEDGEMENT
2. EXECUTIVE SUMMARY
3. INTRODUCTION
4. REVIEW OF LITERATURE
5. OBJECTIVE OF STUDY
6. SCOPE OF STUDY
7. COMPANY PROFILE
8. RESEARCH METHODOLOGY
9. FINDINGS
10 CONCLUSION
11. SUGGESTION AND RECOMMENDATION
12 LIMITATION
13 BIBILOGRAPHY
 ACKNOWLEDGEMENT
It gives me tremendous pleasure in bringing out this research report
entitled “ A study on performance appraisal system and its
effectiveness in TATA MOTORS ” taken up during my second year
MBA degree course.
I would like to thanks KIPM COLLEGE OF
MANAMENT and it’s elite MBA department Dr.Deepak
Srivastava(Director), Dr.Jaibeer pratap singh (head of department)
Further I have to appreciate the guidance given by such
a adroit personality Vishakha ,by her consolidate I could enhance my
knowledge . I also want to underline all the seniors who helped me
directly or indirectly.
Last but not least I would like to thanks my parents,
faculty members, friends, and my colleagues, who supported me in
doing this.
 EXECUTIVE SUMMARY

Managing human resource in today’s dynamic environment is becoming more and

more complex as well as important . Recognition of people as a valuable
resource in the organization has led to increase trends in employee
maintenance , job security, etc. my research deals with “ Performance appraisal
out at Tata motors” . In this report, I have studied & evaluated the performance
appraisal process as it is carried out in the company.

The first section of my report deals with a detailed company profile . It includes
the company’s history: its activities and operation, organizational structure,etc.
this section attempts to give detailed information about the company and
nature of its functioning.

The second section deals with Performance appraisal. In this section, a brief
conceptual explanation to Performance appraisal is given . It contains the
definition , process and significance of Performance appraisal.

In the third section of my report, I have conducted a research study to evaluate

the process of performance appraisal at Tata motors; this section also contains
my findings, conclusions, suggestions and feedback.

The fourth and final section of this report consists of extra information that I
related to the main contents of the report.
 Preface:

Performance Appraisal may be accomplished wi1th following objectives in mind:

To maintain records in order to determine compensation packages, salary
structure, wages raises, etc. To recognize the strengths and weaknesses of
employees to place right men on appropriate job. To maintain and assess the
potential present in a person for further growth and improvement. To give a
feedback to employees regarding their performance and related status. To
provide a suggestion to employees regarding their overall performance and
related status. It serves as a basis for impacting on working behavior of the
workers. To evaluate and maintain the promotional and other training
programmes. Advantages of Performance Appraisal It will be said that
performance appraisal is an investment for the organization which can be justified
by following advantages.

Promotion

Compensation

Employee development

Selection validation

Communication

motivation
TATA MOTORS
INTRODUCTION
INTRODUCTION TO HUMAN RESOURCE MANAGEMENT

Human resource management, in the sense of getting things done

through people, is an essential part of every manager’s responsibility ,
but many organization find it advantageous to establish a specialist
division to provide an expert service dedicated to ensuring that the
human resource function is performed efficiently.
“ People are our most valuable asset”is a clichés , which no member of
any senior management team would disagree with. Yet, the reality for
many organizations is that their people remain undervalued, under
trained and underutilized.
The market place for talented,skilled people is competitive and
expensive. Taking on new staff can be disruptive to existing employees.
Also, it takes time to develop ‘cultural awarness’ product/
process/organization knowledge and experience for new staff
members.

FUNCTION OF HUMAN RESOURCE MANAGEMENT

Following are the various function of Human Resource Management

that are essential for the effective functioning of the organization.

1. Recruitment
 2. Selection
3. Induction
4. Performance appraisal
5. Training & Development

Recruitment:-
Recruitment refers to the overall process of attracting, shortlisting, selecting and
appointing suitable candidates for jobs (either permanent or temporary) within
an organization.

Selection:-
Selection is the process of picking or choosing the right candidate, who is most
suitable for a vacant job position in an organization. In others words, selection
can also be explained as the process of interviewing the candidates and
evaluating their qualities, which are required for a specific job and then choosing
the suitable candidate for the position.

Induction:-
Induction is the process of introducing a new employee to his/her job and
organization and giving him all the necessary information required by him/her to
start his work. ... Induction helps to reduce the anxiety of a new entrant in the
organization and helps him to feel a sense of belongingness in the organization.

WHAT IS PERFORMANCE APPRAISAL?

A performance appraisal, also referred to as a performance review, performance
evaluation, (career) development discussion, or employee appraisal is a method
by which the job performance of an employee is documented and evaluated.
Performance appraisals are a part of career development and consist of regular
reviews of employee performance within organizations. Annual performance
reviews have been criticized as providing feedback too infrequently to be useful,
and some critics argue performance reviews in general do more harm than good .
A performance appraisal is a systematic, general and periodic process that
assesses an individual employee's job performance and productivity in relation to
certain pre-established criteria and organizational objectives. Other aspects of
individual employees are considered as well, such as organizational citizenship
behavior, accomplishments, potential for future improvement, strengths and
weaknesses, etc.

According to Edwin B Flippo, “Performance appraisal is a systematic, periodic and

so far as humanly possible, an impartial rating of an employee's excellence in
matters pertaining to his present job and to his potentialities for a better job.

CHARACTERISTICS:-

1. Performance appraisal is a process.

2. It is the systematic examination of the strengths and weakness of an
employee in terms of his job.
3. It is scientific and objective study. Formal procedures are used in the study.
4. It is an ongoing and continuous process wherein the evaluations are
arranged periodically according to a definite plan.
5. The main purpose of performance appraisal is to secure information
necessary for making objective and correct decision an employee.

PROCESS:-
The process of performance appraisal

1. Establish Performance Standards

2. Employee Communication

3. Measure Employee Performance

4. Compare to all Employee Metrics

5. Employee Feedback

6. Action Plan Development

LIMITATIONS:-

1. Halo effect :- 

In this case the superior appraises the person on certain positive qualities only.
The negative traits are not considered. Such an appraisal will no give a true
picture about the employee. And in some cases employees who do not deserve
promotions may get it.

2. Horn effect :- 

In this case only the negative qualities of the employee are considered and based
on this appraisal is done. This again will not help the organization because such
appraisal may not present a true picture about the employee.

3. Central tendency :- 

In this case the superior gives an appraisal by giving central values. This prevents a
really talented employee from getting promotions he deserves and some
employees who do not deserve any thing may get promotion.

4. Leniency and strictness :-

Some bosses are lenient in grading their employees while some are very strict.
Employee who really deserves promotions may loose the opportunity due to
strict bosses while those who may not deserve may get benefits due to lenient
boss. 

5. Spill over effect :-

In this case the employee is judged +vely or –vely by the boss depending upon the
past performance. Therefore although the employee may have improved
performance, he may still not get the benefit.

6.Fear of loosing subordinates and spoiling relations :-

Many bosses do not wish to spoil their relations with their subordinates.
Therefore when they appraise the employee they may end up giving higher
grades which are not required. This is an injustice to really deserving employees. 

7. Goodwill and techniques to be used :-

METHODS OF PERFORMANCE APPRAISAL

Ranking Method:
It is the oldest and simplest formal systematic method of performance
appraisal in which employee is compared with all others for the purpose of
placing order of worth. The employees are ranked from the highest to the lowest
or from the best to the worst.

Paired comparison method:-

 Method of evaluation in which each employee and job is compared with each
other employee and job. Employee comparisons are performed usually on the
basis of overall performance, whereas job-evaluations are usually on the basis of
skill, knowledge, and time required in their performance.

Grading Method:
In this method, certain categories of worth are established in advance and
carefully defined. There can be three categories established for employees:
outstanding, satisfactory and unsatisfactory. The employee is, then, allocated to
the grade that best describes his or her performance.

Forced distribution method:-

The forced distribution method of performance appraisal derives its name from
the fact that those responsible for providing evaluations, the raters, are “forced”
to distribute ratings for the individuals being evaluated into a “pre-
specified” performance distribution.

Forced choice method:-

It is a method of performance appraisal in which the rater has to make a forced
choice between the available characteristics, about the employees. It is in the
form of a survey questionnaire.

Checklist method:-
It is the simplest form of evaluation method. Under this a list of statements
describing the job related behaviour of the employees is given to the evaluator.
He then submits it to the human resources department where counting of the
checks is carried out and performance is assessed.

Essay method:
Essay Appraisal is a traditional form of Appraisal also known as “Free
Form method.” It involves a description of the performance of an employee by
his superior which needs to be based on facts and often includes examples to
support the information.

Field Review Method:

In this method, an employee is not appraised by his direct superior but by
another person usually from the HR department. This is an appraisal by someone
outside the assessee's own department, usually someone from the corporate
office or the HR department.

Management by objectives –
commonly referred to as MBO – is a performance appraisal method that
determines how closely aligned an employee's goals are to organizational
goals. MBO appraisals are suitable for measuring quantitative and qualitative
output of high-level employees.

Assessment Centre Method

This method is used to test the individual in various social situations by using a
number of procedures and assessors. The performance, as well as the potential of
an employee, is evaluated by this method by assessing his performance on the
job-related simulations. It includes all the characteristics which the concerned
manager feel is important for a candidate to get success in his job. This method
uses different techniques such as business games role play and in-basket
exercises

360 Degree Appraisal

It is another staff appraisal method wherein the details of an employee’s

performance are collected from other stakeholders which include the peers,
superiors, colleagues and self. It is used to make the appraisal process more
objective, participative, and transparent. It is called a 360 degree appraisal
because it involves the persons above him, alongside him, below him as well as a
self-appraisal to evaluate an employee’s performance.

ADVANTAGE OF PERFORMANCE APPRAISAL

 1. Improves Performance.
Performance appraisals major focus on improving employees performance
as it analyses and evaluates the opportunity factors like social process and
technology.

2. Employee Development.
Performance appraisal helps determine who is in need of more training as
it gives information regarding the strengths and potentials as well as
weaknesses of the employees.
3. Corrects Deficiencies.
Performance appraisal detects employee deficiency and suggests on
corrective measures to be taken.
1. Career Growth.
Appraisal serves as a tool for the employees’ career planning and
development as it assists in preparing each employee’s SWOT analysis.
2. Promotion.
Appraisals help the management determine which employee is to be
promoted, transferred or rewarded.
3. Motivation.
Appraisals motivate employees to work harder.

Disadvantages of Performance Appraisal

1. Prone To Biasness.
Some raters may rate one depending on the general impression one gives. For
instance, one might be rated high on all criteria even though he/she just
performed well in a single area. The rater’s biases and prejudices also affect the
process. These cases are seen when a one gets underrated because of sex,
religion, favoritism, appearance, and race.
2. Contrast Error.
Performance appraisal is always based specific standards, however, when one
gets rated without taking the standards into account a contrast error occurs. This
also can occur if the rater looks at an employee’s current performance based on
the past performance.
3. Generalization Tendency Error.
This occurs when a rater rates everyone within a narrow range because he/she
thinks that the employees are all on the same level averagely.
4. Severity Or Leniency.
Appraisals demand that an evaluator should objectively draw a conclusion
regarding an employee’s performance.
5. Sampling Error.
This occurs when a rater uses a small portion of an employee’s work to draw a
conclusion.

6. Regency And Primary Errors.

Employee behavior at the start of the appraisal period and at the end can affect
the process a time. For instance, a salesperson’s performance varies with season,
at times it can be low and a time high.
Overall, appraisals are good only if the management operating them stick with
their standards otherwise it will pointless.

Benefits of performance appraisal:-

1. Every employee’s individual performance influences how all the team or

even the firm (especially if it is small) is doing.
2. It clarifies the employee’s role and status in the organization. Some
workers like to know where they stand regarding their job performance and
want to see what else (useful) they can do for the company.
3. Self-development is the most important benefit for the employee.
Performance appraisal allows you to provide positive feedback as well as
identifying areas for improvement. An employee can discuss and even
create a developmental (training) plan with the manager so he can improve
his skills.
4. It motivates employees if supported by a good merit-based compensation
system. Best performers get better pay and benefits packages. Similarly,
those employees that lag behind get penalized.
5. It provides a structured process for an employee to approach the
management for discussions, identify problems, clarify expectations and
plan for the future. It lets both manager and employee set up long- and
short-term goals.
6. The statistics can be used to monitor the success of the organization’s
recruitment and induction practices.
 7. Performance appraisal system also helps the management in deciding
about the promotions, transfers and rewards of the employee.
8. It is easy to identify the under-performers and decide whether you want to
keep them hoping for improvement or sometimes have to let them go.
9. Both manager and employee, keep performance appraisal records and can
retrospectively review the changes in the performance in future.

Rating Errors in performance appraisals:-

There are many possible sources of errors in the performance appraisal process.
Various types of rater errors are mentioned next

 Recency error.

 Central tendency error.

 Leniency error.

 Halo effect.

 Contrast error.

 Similarity error.

 Personal bias.

 Personal prejudice.

 Paperwork.

 Fear of spoiling relations.

 Evaluate performance, not person.

 Horn-effect.

Recency error

The recency effect occurs when a rater gives greater weight to recent events
when appraising an individual’s performance. A recent action- either good or bad-
is more likely to be remembered by the rater.

Using some method of documenting both positive and negative performance can
minimize this problem.

Central tendency error

Appraisers, who rate all employees within a narrow range, usually the middle or
average, commit a central tendency error. It is the reluctance to make extreme
ratings in either direction, the inability to distinguish between and among ratees;
a form of range restriction.

Leniency error

Every evaluator has his own value system, which acts as the standard against
which appraisals are made. Some evaluators mark high and others low. The
former is referred to as positive leniency error and the latter as negative leniency
error or strictness.

Halo effect

The halo effect occurs when a manager rates an employee high or low on all items
because of one characteristic. For example, she is tall, so she is intelligent. This
may not be true.
Contrast error

This error is the tendency to rate people relative to other people rather than to
performance standards. Two people may not be the same. People are
heterogeneous.

So it is essential to compare a person with the standard, not with another person.

Similarity error

When evaluators rate other people in the same way that the evaluators perceive
themselves, they are making a similarity error.

Based on the perception that evaluators have themselves, they project those
perceptions onto others. You are an honest person; you expect others to be
honest.

Personal bias

Appraisal is affected by personal bias of the rater. If the rater has good relations
with the ratee (an employee who is getting rated), he may give higher scores to
the ratee, even though the ratee does not deserve such high scores.

So personal bias may lead to favored treatment for some employees, and bad
treatment to others. Students often complain against a few teachers against their
personal biases. distort the ratings those people receive.

Discrimination may occur in terms of age, gender, religion, and country of origin,
etc.

For example, some HR departments have noticed that male supervisors give
undeserved low ratings to women who hold traditionally male jobs.
Personal prejudice

A rater’s dislike for a group or class of people may distort the ratings those people
receive. Discrimination may occur in terms of age, gender, religion, and country of
origin, etc.

For example, some HR departments have noticed that male supervisors give
undeserved low ratings to women who hold traditionally male jobs.

Sometimes, raters are unaware of their prejudice, and this makes such biases
more difficult to overcome.

Paperwork

Some supervisors complain that performance appraisal is pointless paperwork.

They complain because many times, performance appraisal reports are found
only in the files. It does not serve any practical purpose.

In other words; the performance appraisal reports are not used by some
organizations. They are conducted just as a formality or for the namesake.

For example, in public universities, no extra reward or recognition is given for

extraordinary performance.

Fear of Spoiling Relations

Performance appraisal may also affect superior-subordinate relations.

An appraisal makes the superior more of a judge than a coach. So, the
subordinate may have a feeling of suspicion and mistrust, about the superior.

Evaluate performance, not person

The rater should evaluate the performance, i.e. output, new ideas, extraordinary
efforts, etc. and not the person. In reality, the person is evaluated and not his
performance. It should be noted that failure is an event and not a person.
For example, the family background and political affiliation of a candidate are
given more priority than merit while making personnel decisions.

Horn-effect

Sometimes the raters may evaluate on the basis of one negative quality. This
results in the overall lower rating of the particular employee. For example, Karim
does not shave regularly, therefore, he must be lazy at work.

Spillover effect, in this case, the present performance is highly influenced by past
performance. A person who has not done a good job in the past is considered to
be bad for doing present work.

Role and Evaluation

During appraisal time, employees can get nervous about the process and the
results. This concern can be countered if there is a clear explanation of the
employee's role as well as a definitive framework for employees to follow. It's
important to have a clear idea of what the employee's job responsibilities are, as
well as any deliverables, or required projects or products that should be delivered
within the appraisal timeframe. The following are some important steps an
employee can follow for their appraisal:

1. Be Prepared: At the beginning of the year, employees should make sure to

communicate with their manager about what is needed and wanted from
them as an employee. This will give a great foundation to follow
throughout the year. If there are consumers or other individuals that will be
requiring work from the employee, the employee should also meet with
them to understand what is expected, so there is no confusion.
2. Participate: During the year, employees should try to meet with their
managers regularly to confirm current work requirements, and to see how
they are progressing. Additionally, they should document complaints and
kudos that are received throughout the year.

KEY CONCEPTS IN PERFORMANCE MANAGEMENT SYSTEM

I n   o r d e r   t o   u n d e r s t an d   t h e   P e r f o r m a n ce   M an a g e m e n t   S y s t e m   a t   T
a t a Motors , some concepts need to be explained which play a very importantrole
in using the PMS successfully. They are:
•
KRA’S (KEY RESULT AREAS)
 The performance of an employee isl a r ge l y   d e p e n d e n t   o n   t h e    ! "   s c o r e   a
c h i e v e d   b y   t h e   e m p l o y e e during that parti cular year. Thus, it is
necessary to answer a fewbasic Questions i.e.
•
What are the guidelines for setting the KRA’s for an employee?
•
How does an employee write down his KRA’s for a 
P a r ti c u l a r Financial year?
•
How is the KRA score calculated for an employee on the basis of the targets sets
and targets achieved?

•
KRA’s: The Four Perspectives
.
BEHAVIORAL TRAITS:
Some of the Qualitati ve aspects of an employees
performance combined with the general
behavioral traits displayed by the employee during a year
consti tutes his behavior traits. An employee is assigned the rati ng on the
basis of the intensity of the behavior displayed b y h i m . T h e y p l a y a
v e r y i m p o r t an t r o l e i n t h e d e c i d in g t h e Final performance rating for an
employee as is even capable of shifting the rating one level upwards/downwards.

L E A D E R S H I P   C O M P E T E N C Y   F R A M E W O R K :
 Thisc o m p e t e n c y   f r a m e w o r k   i s   a   s i m p le   an d   s t r u c t u r e d   w a y   t o
describe the elements of behaviors required to perform a role
e ff c ti v e l y .   T h i s   f r a m e w o r k   a l s o   t r i e s   t o  
a s s e s s   t h e performance of an employee objectively.
THE PERFORMANCE RATING PROCESS:
 The rating processt r i e s   t o   e x p l a i n   t h e   f o u r   d i ff e r e n t   t y p e s   o f   r a
ti n g   t h a t   a n employee can achieve i.e.EC, SC, C and PC.
It also explain t h e c r i t e r i a , w h i c h i s c o n s i d e r e d f o r a w a r d i n g a n y o f
t h e s e ratings to the employee.

P R O M O T I O N   A N D   R A T I N G   D I S R T R I B
U T I O N GUIDELINES:
 The promotion and normal distribution
Guidelines provide the frame work within which the performance appraisal
process has to work. It is very important that the HR department pays due
attention to these guidelines while preparing the bell curves for various functions
and the consolidated bell curve for all the functions . These guidelines also help
in deciding upon the promotion cases in a year.
REVIEW OF LITREATURE
PERFORMANCE APPRAISAL LITERATURE REVIEW The amount of research
regarding the topic “Performance Appraisal” is so vast. The topic is literally not
new; it is as old as the formation of the organizations. Before the early 1980‟s,
majority of theoretical studies emphasized on revamping the rating system within
the organization. The actions were a great thing to reduce the chaotic of
employee‟s performance appraisal (Feldman, 1981). With the passage of the time
the methods and rating system among the employees got enhanced and received
an immense appreciation and attentions of the managers. Behavioral Observation
Scale (BOS) is one of the best techniques utilized by the managers to arte the
employees. The dilemma was on the peak in the 1960s and 1970s. In the same
period couple of new innovated rating scales were introduced, which was
Behaviorally Anchored Rating Scale (BARS) and the Mixed Standard Scale (MSS).
The innovations were dominant one which condensed the errors and improved
the observation skills from the performance appraisal practice.
According to the research of Arvey and Murphy (1998), there were hundreds of
thousands of researches had been taken place between the periods of 1950 to
1980, which merely focused on the different types of rating scales. Landy and Farr
(1980) reviewed and researched the methods of performance appraisal in totally
a different manner, in which they understand the rater and process in an
organizational context. Other Performance appraisal reports include the rater
characteristics in their report like race, gender and likeability. After the year 1980
the biasness among the performance appraisal system occurred outrageously and
appraisal had been granted on the favoritism or race and gender basis rather
examined the knowledge, skills and style of the work of the employee. The
accuracy criteria among the performance appraisal system clutched its grip in the
start of the 1980s, where the researches were emphasized on common
psychometric biases which include the diversified rating errors like leniency,
central tendency and halo, which were termed as rating errors in the appraisal
method.
It has been observed that the bias free appraisals were inevitably true or more
precisely we can say more accurate, but the concept was totally refused by the
research of Hulin in 1982. According to them the biasfree appraisals were not
necessarily accurate (Murphy & Balzer, 1989).Researches which had been done in
the year 1980 were found the most dominating one which contributed the
appraisal system in a great deal. The researches of the1980 also helped out to
clarify some presumed assumptions regarding the performance appraisal, just like
the work of Murphy (1982). Research has included the measure of employee
attitudes towards the system of performance appraisal and its acceptance
(Roberts, 1990). Bernardian and Beatty (1984), suggested in their research that
behavioral and attitudinal kinds of measure ultimately prove to be better
anticipator as compared with the traditional psychometric variables, which we
have declared earlier as well, like leniency, halo and discriminability. A
Performance Appraisal system is totally ineffective in practice due to the dearth
of approval from the end users (Roberts, 1990). According to a number of
researchers, the enhanced and upgraded performance appraisal procedure and
method will enhance the satisfaction level of the employees and definitely will
improve the process of goal setting within the organization.
Need for the Study: Performance Appraisal is the organized analysis of the overall
performance of employees in this paper we will discuss about the performance
appraisal in TATA MOTORS.
Objective: To study the performance appraisal in tata motors.
Methodology: This paper mainly based on secondary data .The articles which are
published in the area of performance appraisal and information from TATA
MOTORS WEBSITE.
Tata Motors Limited formerly is an Indian multinational automotive
manufacturing company headquartered in Mumbai, India and a subsidiary of the
Tata Group. Its products include passenger cars, trucks, vans and coaches. It is the
world's eighteenth- largest motor vehicle manufacturing company, fourth- largest
truck manufacturer and second-largest bus manufacturer by volume. Tata Motors
has auto manufacturing and assembly plants in:
1) Jamshedpur
2) Pantnagar
3) Lucknow
4) Sanand
5) Dharwad
6) Pune
India, as well as in Argentina, South Africa, Thailand and the United Kingdom.
Tata Motors has produced and sold over 6.5 million vehicles in India since 1954.
Originally a manufacturer of locomotives, the company manufactured its first
commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended
in 1969. In 2010, Tata Motors surpassed Reliance to win the coveted title of
'India's most valuable brand' in an annual survey conducted by Brand Finance and
The Economic Times. Tata Motors was ranked as India's 3rd Most Reputed Car
manufacturer in the Reputation Benchmark Study - Auto (Cars) Sector, launched
in April 2012. Tata Motors has been ranked 314th in the Fortune Global 500
rankings of the world's biggest corporations for the year 2012. Tata Motors is a
cross- listed company; Its stock trades on the Bombay Stock Exchange and the
New York Stock Exchange as TTM. Tata entered the commercial vehicle sector in
1954 after forming a joint venture with Daimler-Benz of Germany. After years of
dominating the commercial vehicle market in India. Tata Motors entered the
passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility
vehicle.
After the launch of three more vehicles, Tata Estate (1992, a stationwagon design
based on the earlier 'TataMobile' (1989), a light commercial vehicle), Tata Sumo
(LCV, 1994) and Tata Safari (1998, India's first sports utility vehicle). Tata launched
the Indica in 1998, the first fully indigenous Indian passenger car. Although
initially criticised by auto-analysts, its excellent fuel economy, powerful engine
and an aggressive marketing strategy made it one of the best selling cars in the
history of the Indian automobile industry. A newer version of the car, named
Indica V2, was a major improvement over the previous version and quickly
became a mass-favorite Tata Motors also successfully exported large quantities of
the car to South Africa. The success of Indica played a key role in the growth of
Tata Motors. In 2004 Tata Motors acquired Daewoo's South Korea- based truck
manufacturing unit, Daewoo Commercial Vehicles Company, later renamed Tata
Daewoo.
In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and
coach manufacturer Hispano Carrocera. Tata Motors continued its market area
expansion through the introduction of new products such as buses (Starbus &
Globus, jointly developed with subsidiary Hispano Carrocera) and trucks (Novus,
jointly developed with subsidiary Tata Daewoo). In 2006, Tata formed a joint
venture with the Brazil- based Marcopolo, Tata Marcopolo Bus, to manufacture
fully built buses and coaches. In 2008, Tata Motors acquired the British car maker
Jaguar Land Rover, manufacturer of the Jaguar, Land Rover and Daimler luxury car
brands, from Ford Motor Company. In May 2009 Tata unveiled the Tata World
Truck range jointly developed with Tata Daewoo. Debuting in South Korea, South
Africa, the SAARC countries and the Middle-East by the end of 2009. Tata
acquired full ownership of Hispano Carrocera in 2009.
In 2010, Tata Motors acquired an 80% stake in the Italy-based design and
engineering company Trilix for a consideration of €1.85 million. The acquisition
formed part of the company's plan to enhance its styling and design capabilities.
In 2012, Tata Motors announced it will invest around Rs 600 crore on developing
Futuristic Infantry Combat Vehicles in colloboration with DRDO. Tata Motors has
vehicle assembly operations in India, the United Kingdom, South Korea, Thailand,
Spain and South Africa. It plans to establish plants in Turkey, Indonesia and
Eastern Europe.Tata Motors' principal subsidiaries include Jaguar Land Rover,
Tata Daewoo and Tata Hispano. Tata Motors is among the top three in passenger
vehicles in India with products in the compact, midsize car and utility vehicle
segments.
The company‟s manufacturing base in India is spread across: 
Jamshedpur (Jharkhand) 
Pune (Maharashtra)
Lucknow (Uttar Pradesh)
Pantnagar (Uttarakhand)
Dharwad (Karnataka).
The company is establishing a new plant at Sanand (Gujarat). Tata's dealership,
sales, service and spare parts network comprises over 3500 touch points. Tata
also has franchisee/joint venture assembly operations in Kenya, Bangladesh,
Ukraine, Russia and Senegal .Tata has dealerships in 26 countries across 4
continents. Though Tata is present in many countries it has only managed to
create a large consumer base in the Indian Subcontinent, namely India,
Bangladesh, Bhutan, Sri Lanka and Nepal. Tata has a growing consumer base in
Italy, Spain and South Africa. Tata Motors has more than 250 dealerships in more
than 195 cities across 27 states and 4 Union Territories of India. It has the 3rd
largest Sales and Service Network after Maruti Suzuki and Hyundai. Tata Daewoo .
In 2004, Tata Motors acquired Daewoo Commercial Vehicle Company of South
Korea. :
To expand the product portfolio Tata Motors recently introduced the 25MT GVW
Tata Novus from Daewoo‟s (South Korea) (TDCV) platform. Tata plans to leverage
on the strong presence of TDCV in the heavy-tonnage range and introduce
products in India at an appropriate time. This was mainly to cater to the
international market and also to cater to the domestic market where a major
improvement in the Road infrastructure was done through the National Highway
Development Project. Tata Daewoo is the second-largest heavy commercial
vehicle manufacturer in South Korea. Tata Motors has jointly worked with Tata
Daewoo to develop trucks such as Novus and World Truck and buses including
GloBus and StarBus. In 2012, Tata will start developing a new line to manufacture
competitive and fuel efficient commercial vehicles to face the competition posed
by the entry of international brands like Mercedes-Benz, Volvo and Navistar into
the Indian market.
OBJECTIVE OF THE STUDY
To carry out the study of TATA MOTORS, we framed the following objectives

1. Identification of the technique of performance appraisal followed in

Tata Motors.

2. Employee attitude towards the present appraisal system.

3. Review of the current appraisal system in order to

1. Enhance productivity

2. Attain global standards

4. To provide suggestions &recommendation from the study conducted.

Scope of the study

Performance management system is a kind of performance management forms.
Supervisors and managers are responsible for managing the performance of their
employees. Each organization's policy should specify how the performance
management system will be carried out. Organizations should adopt performance
management practices that are consistent with the requirements of this policy
and that best fit the nature of the work performed and the mission of the
organization. Therefore , it is important that this research will be conducted, or
existing research will be expanded to understand employees' experiences and
perceptions of performance management and appraisal system so that a
completed and comprehensive performance system could be built up. Moreover,
it is important for employees and managers to understand that performance
management and performance management systems are the key determinants of
an organization's long-term success or failure. If employees are not happy or do
not agree with the performance management system, they are likely to be
unwilling to take an active part in the process because they do not see any value
of it. As a result, the organizational performance and productivity would decrease
due to the inefficient employee performance. To conclude, this topic would be
interesting and meaningful for any organization because the performances of
employees have a significant relationship with organizational performance. Also,
understanding how HRM practices influence employee performance could help
organizations setting up a better management system, and finally improve
employee performance and organizational performance

COMPANY PROFILE
Tata Motors Limited, formerly Tata Engineering and Locomotive
Company (TELCO), is an Indian multinational automotive manufacturing company
headquartered in Mumbai, Maharashtra, India. It is a part of Tata Group, an
Indian conglomerate. Its products include passenger cars, trucks, vans, coaches,
buses, sports cars, construction equipment and military vehicles.
Tata Motors has auto manufacturing and assembly plants in 
Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India  as well as
in Argentina, South Africa, Great Britain, and Thailand. It has research and
development centres in Pune, Jamshedpur, Lucknow, and Dharwad, India and
South Korea, Great Britain, and Spain. Tata Motors' principal subsidiaries
purchased the English premium car maker Jaguar Land Rover (the maker of Jaguar
and Land Rover cars) and the South Korean commercial vehicle manufacturer Tata
Daewoo. Tata Motors has a bus-manufacturing joint venture with Marcopolo
S.A. (Tata Marcopolo), a construction-equipment manufacturing joint venture
with Hitachi (Tata Hitachi Construction Machinery), and a joint venture with Fiat
Chrysler which manufactures automotive components and Fiat Chrysler and Tata
branded vehicles.
Founded in 1945 as a manufacturer of locomotives, the company manufactured
its first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which
ended in 1969. Tata Motors entered the passenger vehicle market in 1988 with
the launch of the TataMobile followed by the Tata Sierra in 1991, becoming the
first Indian manufacturer to achieve the capability of developing a competitive
indigenous automobile. In 1998, Tata launched the first fully indigenous Indian
passenger car, the Indica, and in 2008 launched the Tata Nano, the world's
cheapest car. Tata Motors acquired the South Korean truck
manufacturer Daewoo Commercial Vehicles Company in 2004 and
purchased Jaguar Land Rover from Ford in 2008.
Tata Motors is listed on the (BSE) Bombay Stock Exchange, where it is a
constituent of the BSE SENSEX index, the National Stock Exchange of India, and
the New York Stock Exchange. The company is ranked 265th on the Fortune
Global 500 list of the world's biggest corporations as of 2019.
On 17 January 2017, Natarajan Chandrasekaran was appointed chairman of the
company Tata Group. Tata Motors increases its UV market share to over 8% in
FY2019.
History

TATA
Sumo (199 4–2019)

Tata Motors was

founded in 1945, as
of locomoti ve manufac
turer. Tata
Group ente red the
commercial vehicle
sector in 1954 after
forming a joint
venture wit h Daimler-
Benz of Germany. After years of dominating the commercial vehicle market in
India, Tata Motors entered the passenger vehicle market in 1991 by launching
the Tata Sierra, a sport utility vehicle based on the Tata Mobile platform. Tata
subsequently launched the Tata Estate (1992; a station wagon design based on
the earlier Tata Mobile), the Tata Sumo (1994, a 5-door SUV) and the Tata
Safari (1998).

Tata Indica (first generation)

Tata launched the Indica in 1998, the first fully indigenous Indian passenger car.
Although initially criticized by auto analysts, its excellent fuel economy, powerful
engine, and an aggressive marketing strategy made it one of the best-selling cars
in the history of the Indian automobile industries. A newer version of the car,
named Indica V2, was a major improvement over the previous version and quickly
became a mass favourite. Tata Motors also successfully exported large numbers
of the car to South Africa. The success of the Indica played a key role in the
growth of Tata Motors.
In 2004, Tata Motors acquired Daewoo's South Korea-based truck manufacturing
unit, Daewoo Commercial Vehicles Company, later renamed Tata Daewoo.
On 27 September 2004, Ratan Tata, the Chairman of Tata Motors, rang the
opening bell at the New York Stock Exchange to mark the listing of Tata Motors.
In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and
coach manufacturer Hispano Carrocera. Tata Motors continued its market area
expansion through the introduction of new products such as buses (Starbus and
Globus, jointly developed with subsidiary Hispano Carrocera) and trucks (Novus,
jointly developed with subsidiary Tata Daewoo).
In 2006, Tata formed a joint venture with the Brazil-based Marcopolo, Tata
Marcopolo Bus, to manufacture fully built buses and coaches.

Tata Bolt

In 2008, Tata Motors acquired the English car maker Jaguar Land Rover,
manufacturer of the Jaguar and Land Rover from Ford Motor Company.
In May 2009, Tata unveiled the Tata World Truck range jointly developed with
Tata Daewoo; the range went on sale in South Korea, South Africa,
the SAARC countries, and the Middle East at the end of 2009.
Tata acquired full ownership of Hispano Carrocera in 2009.
In 2009, its Lucknow plant was awarded the "Best of All" Rajiv Gandhi National
Quality Award.
In 2010, Tata Motors acquired an 80% stake in the Italian design and engineering
company Trilix for €1.85 million. The acquisition formed part of the company's
plan to enhance its styling and design capabilities.
In 2012, Tata Motors announced it would invest around ₹6 billion in the
development of Futuristic Infantry Combat Vehicles in collaboration with DRDO.
In 2013, Tata Motors announced it will sell in India, the first vehicle in the world
to run on compressed air (engines designed by the French company MDI) and
dubbed "Mini CAT".
In 2014, Tata Motors introduced first Truck Racing championship in India "T1
Prima Truck Racing Championship".
On 26 January 2014, the Managing Director Karl Slym was found dead. He fell
from the 22nd floor to the fourth floor of the Shangri-La Hotel in Bangkok, where
he was to attend a meeting of Tata Motors Thailand.
On 2 November 2015, Tata Motors announced Lionel Messi as global brand
ambassador at New Delhi, to promote and endorse passenger vehicles globally.
On 27 December 2016, Tata Motors announced the Bollywood actor Akshay
Kumar as brand ambassador for its commercial vehicles range.
On 8 March 2017, Tata Motors announced that it has signed a memorandum of
understanding with Volkswagen to develop vehicles for India's domestic market.
On 3 May 2018, Tata Motors announced that it sold its aerospace and defense
business to another Tata Group Entity, Tata Advanced Systems, to unlock their full
potential.
On 29 April 2019, Tata Motors announced a partnership with Nirma
University in Ahmedabad to provide a B.Tech. degree programme for employees
of its Sanand plant.
Operations
Tata Motors has vehicle assembly operations in India, Great Britain, South Korea,
Thailand, Spain, and South Africa. It plans to establish plants in Turkey, Indonesia,
and Eastern Europe.
Tata Motors Cars
Main article: Tata Motors Cars

Tata Motors Cars is a division of Tata Motors which produces passenger cars
under the Tata Motors marque. Tata Motors is among the top four passenger
vehicle brands in India with products in the compact, midsize car, and utility
vehicle segments. The company's manufacturing base in India is spread across
Jamshedpur (Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh),
Pantnagar (Uttarakhand), Dharwad (Karnataka) and Sanand (Gujarat). Tata's
dealership, sales, service, and spare parts network comprises over 3,500 touch
points. Tata Motors has more than 250 dealerships in more than 195 cities across
27 states and four Union Territories of India. It has the third-largest sales and
service network after Maruti Suzuki and Hyundai.
Tata LPT Trucks made at overseas plants

Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh,

Ukraine, Russia, and Senegal. Tata has dealerships in 26 countries across 4
continents.Tata is present in many countries, it has managed to create a large
consumer base in the Indian Subcontinent, namely
India,
Bangladesh,
Bhutan, Sri Lanka 
and Nepal.
Tata is also present in
Italy,
 Spain,
 Poland, 
Romania, 
Turkey,
 Chile,South
Africa,
Oman,
Kuwait,
Qatar,
Saudi Arabia,
United Arab Emirates,
Bahrain,
Iraq,
Syria
and Australia.

Tata Daewoo
Main article: Tata Daewoo

Tata Daewoo (officially Tata Daewoo Commercial Vehicle Company and formerly
Daewoo Commercial Vehicle Company) is a commercial vehicle manufacturer
headquartered in Gunsan, Jeollabuk-do South Korea, and a wholly owned
subsidiary of Tata Motors. It is the second-largest heavy commercial vehicle
manufacturer in South Korea and was acquired by Tata Motors in 2004. The
principal reasons behind the acquisition were to reduce Tata's dependence on the
Indian commercial vehicle market (which was responsible for around 94% of its
sales in the MHCV segment and around 84% in the light commercial vehicle
segment) and expand its product portfolio by leveraging on Daewoo's strengths in
the heavy-tonnage sector.
Tata Motors has jointly worked with Tata Daewoo to develop trucks such as
Novus and World Truck and buses including GloBus and StarBus. In 2012, Tata
began developing a new line to manufacture competitive and fuel-efficient
commercial vehicles to face the competition posed by the entry of international
brands such as Mercedes-Benz, Volvo, and Navistar into the Indian market.

Tata Hispano
Main article: Tata Hispano

Tata Hispano Motors Carrocera, S.A. was a bus and coach manufacturer based in
Zaragoza, Aragon, Spain, and a wholly owned subsidiary of Tata Motors. Tata
Hispano has plants in Zaragoza, Spain, and Casablanca, Morocco. Tata Motors first
acquired a 21% stake in Hispano Carrocera SA in 2005, and purchased the
remaining 79% for an undisclosed sum in 2009, making it a fully owned subsidiary,
subsequently renamed Tata Hispano. In 2013, Tata Hispano ceased production at
its Zaragoza plant.
Jaguar Land Rover
The Range Rover

Jaguar F-Type

Main article: Jaguar Land Rover

Jaguar Land Rover PLC is a British premium automaker headquartered in Whitley,

Coventry, United Kingdom, and has been a wholly owned subsidiary of Tata
Motors since June 2008, when it was acquired from Ford Motor Company of
USA. Its principal activity is the development, manufacture and sale
of Jaguar luxury and sports cars and Land Rover premium four-wheel-drive
vehicles.
Jaguar Land Rover has two design centres and three assembly plants in the United
Kingdom. Under Tata ownership, Jaguar Land Rover has launched new vehicles
including the Range Rover Evoque, Jaguar F-Type, the Jaguar XE, the Jaguar XJ
(X351), the second-generation Range Rover Sport, and Jaguar XF, the fourth-
generation Land Rover Discovery, Range Rover Velar and the Range Rover (L405).
JD Power, of the US, rates Land Rover and Jaguar as the two worse brands for
initial quality. The Jaguar F-Pace made Consumer Reports February 2019 list of
the 10 Least Reliable Cars. The editors cited "electronics, drive system, power
equipment, noises and leaks" as problematic aspects.
The Jaguar Land Rover subsidiary was struggling by 2019 and Tata Motors wrote
down its investment in JLR by $3.9 billion. Much of the financial problem was due
to a 50% drop in sales in China during 2019, although the situation was improving.
Still, Tata was open to considering a partnership with another company according
to a statement in mid-October, as long as the partnership agreement would allow
Tata to maintain control of the business. The company ruled out the possibility of
a sale of JLR to another entity.
TML Drivelines
TML Drivelines Ltd. is a wholly owned subsidiary of Tata Motors engaged in the
manufacture of gearboxes and axles for heavy and medium commercial vehicles.
It has production facilities at Jamshedpur and Lucknow. TML Forge division is also
a recent acquisition of TML Drivelines. TML Drivelines was formed through the
merger of HV Transmission and HV Axles .
Tata Technologies
Tata Technologies Limited (TTL) is a 43%-owned subsidiary of Tata Motors which
provides design, engineering, and business process outsourcing services to the
automotive industry. It is headquartered in Pune's Hinjewadi business district and
also has operations in London, Detroit and Thailand. Its clients include
Ford, General Motors, Honda, and Toyota.
The British engineering and design services company Incat International, which
specialises in engineering and design services and product lifecycle management
in the automotive, aerospace, and engineering sectors, is a wholly owned
subsidiary of TTL. It was acquired by TTL in August 2005 for ₹4 billion.
In 2017, TAL, a subsidiary of Tata Motors, manufactured India’s first industrial
articulated robot for micro, small, and medium enterprises.
European Technical Centre
The Tata Motors European Technical Centre (TMETC) is an automotive design,
engineering, and research company based at Warwick Manufacturing
Group (WMG) on the campus of the University of Warwick in Great Britain. It was
established in 2005 and is a wholly owned subsidiary of Tata Motors. It was the
joint developer of the World Truck.
In September 2013, it was announced that a new National Automotive Innovation
Campus would be built at WMG at Warwick's main campus at a cost of £100
million. The initiative will be a partnership between Tata Motors, the university,
and Jaguar Land Rover, with £30 million in funding coming from Tata Motors.

Joint ventures
Tata Marcopolo
Main article: Tata Marcopolo

A Tata Marcopolo bus in use in Chandigarh, India

Tata Marcopolo is a bus-manufacturing joint venture between Tata Motors (51%)

and the Brazil-based Marcopolo S.A. (49%). The joint venture manufactures and
assembles fully built buses and coaches targeted at developing mass rapid
transportation systems. It uses technology and expertise in chassis and aggregates
from Tata Motors, and know-how in processes and systems for bodybuilding and
bus body design from Marcopolo. Tata Marcopolo has launched a low-floor city
bus which is widely used by transport corporations in many Indian cities. Its
manufacturing facility is based in Dharwad, Karnataka State, India.

Fiat-Tata
Fiat-Tata is an India-based joint venture between Tata and Fiat
Automobiles which produces Fiat and Tata branded passenger cars, as well as
engines and transmissions. Tata Motors has gained access to Fiat's diesel
engine and transmission technology through the joint venture.
The two companies formerly also had a distribution joint venture through which
Fiat products were sold in India through joint Tata-Fiat dealerships. This
distribution arrangement was ended in March 2013; Fiats have since been
distributed in India by Fiat Automobiles India Limited, a wholly owned subsidiary
of Fiat.
Tata Hitachi Construction Machinery
Main article: Tata Hitachi Construction Machinery

Tata Hitachi Construction Machinery is a joint venture between Tata Motors

and Hitachi which manufactures excavators and other construction equipment. It
was previously known as Telcon Construction Solutions.
Tata Motors European Technical Centre
The TATA Motors European Technical Centre is an automotive design,
engineering, and research company. Company based at Warwick Manufacturing
Group (WMG) on the campus of the University of Warwick in Great Britain. It was
established in 2005 and is wholly owned subsidiary of Tata Motors. It was the
joint developer of the World Truck. In September 2013 it was announced that a
new National Automotive Innovative Campus would be built at WMG at
Warwick's main campus at a cost of 100 million pounds. The initiative will be a
partnership between Tata Motors, the University, and Jaguar Land Rover, with the
30 million pounds in funding coming from Tata Motors.
Products
For details of Tata Motors passenger cars, see Tata Motors Cars. For details of
Land Rover and Jaguar products, see Jaguar Land Rover.
Commercial vehicles

The Tata Xenon pick up

Vehicle Factory Jabalpur (VFJ)'s Bullet Proof 407 used for controlling riots

 Tata Ace
o Tata Ace Zip
 Tata Super Ace
 Tata TL/Telcoline/207 pick-up truck
 Tata 407 Ex and Ex2
 Tata 709 Ex
 Tata 807 (Steel cabin chassis, cowl chassis, medium bus chassis, steel cabin
+ steel body chassis)
 Tata 809 Ex and Ex2
 Tata 909 Ex and Ex2
 Tata 1210 SE and SFC (Semi Forward)
 Tata 1210 LP (Long Plate)
 Tata 1109 (Intermediate truck/ LCV bus)
 Tata 1512c (medium bus chassis)
 Tata 1515c/1615 (medium bus chassis)
 Tata 1612c/1616c/1618c (heavy bus chassis
Military vehicles

Vehicle Factory Jabalpur (VFJ)'s LPTA 715 4X4 Truck for the Indian Army

 Tata LSV (Light Specialist Vehicle)

 Tata Mine Protected Vehicle (4×4)
 Tata 2 Stretcher Ambulance
 Tata 407 Troop Carrier
 Tata LPTA 713 TC (4x4)
 Tata LPT 709 E
 Tata SD 1015 TC (4x4)
 Tata LPTA 1615 TC (4x4)

 Tata Sumo 4x4

 Tata Xenon
 Tata 207
Tata Motors proposed an overhaul of armoured fighting vehicles and infantry
main combat vehicles in 2015. The inter-ministerial committee was chaired by
Secretary in the Department of Industrial Policy and Promotion (DIPP) approved
most of the proposals from the defense Manufacturing sector in India.
Electric vehicles
Tata Motors has unveiled electric versions of the Tata Indica passenger car
powered by TM4 electric motors and inverters,as well as the Tata Ace commercial
vehicle, both of which run on lithium batteries.
In 2008 Tata Motors' UK subsidiary, Tata Motors European Technical Centre,
bought a 50.3% holding in electric vehicle technology firm Miljøbil
Grenland/Innovasjon of Norway for US$1.93 million, and planned to launch the
electric Indica hatchback in Europe the following year. In September 2010, Tata
Motors presented four CNG–Electric Hybrid low-floored Starbuses to the Delhi
Transport Corporation, to be used during the 2010 Commonwealth Games. These
were the first environmentally friendly buses to be used for public transportation
in India.

Notable vehicles
Tata Nano
Main article: Tata Nano
Tata Nano is often cited as the world's most affordable car

The Nano was launched in 2009 as a city car intended to appeal as an affordable

alternative to the section of the Indian populace that is primarily the owner of
motorcycles and has not bought their first car. Initially priced at ₹100,000
(US$1,500), the vehicle attracted a lot of attention for its relatively low price. In
2018, Cyrus Mistry, Chair of the Tata Group, called the Tata Nano a failed project,
with production ending in May 2018.

Tata Ace
Main article: Tata Ace

Tata Ace, India's first indigenously developed sub-one-ton minitruck, was

launched in May 2005. The minitruck was a huge success in India with auto
analysts claiming that Ace had changed the dynamics of the light commercial
vehicle (LCV) market in the country by creating a new market segment termed the
small commercial vehicle segment. Ace rapidly emerged as the first choice for
transporters and single truck owners for city and rural transport. By October
2005, LCV sales of Tata Motors had grown by 36.6% to 28,537 units due to the
rising demand for Ace. The Ace was built with a load body produced by Autoline
Industries. By 2005, Autoline was producing 300 load bodies per day for Tata
Motors.
Ace is still a top seller for TML with 500,000 units sold by June 2010. In 2011, Tata
Motors invested Rs 1000 crore in Dharwad Plant, Karnataka, with the capacity of
90,000 units annually and launched two models of 0.5-T capacity as Tata Ace Zip,
Magic Iris.

Tata Super Ace

Ace has also been exported to several Asian, European, South American, and
African countries and all-electric models are sold through Polaris
Industries' Global Electric Motorcars division. In Sri Lanka, it is sold through Diesel
and Motor Engineering (DIMO) PLC under the name of DIMO Batta.
Tata 407
Main article: Tata 407
The Tata 407 is a light commercial vehicle (LCV) that has sold over 500,000 units
since its launch in 1986. In India, this vehicle dominates market share of the LCV
category, accounting for close to 75% of LCV sales.
Tata Prima
Main article: Tata Prima

A Tata Prima 4928.S in Assam, India

Tata Prima is a range of heavy trucks first introduced in 2008 as the company's
'global' truck. Tata Prima was the winner of the 'Commercial Vehicle of the Year'
at the Apollo Commercial Vehicles Awards, 2010 and 2012.

Tata Harrier
Main article: Tata Harrier
Tata Harrier

Tata Harrier is a 5-seater SUV set to rival the Hyundai Creta and Jeep Compass. It
is derived from the H5X Concept displayed at the 2018 Auto Expo. It was launched
on 23 January 2019.
 PERFORMANCE APPRAISAL IN TATA MOTORS

TATA MOTOR IDEOLOGIES

VISION “To be the world class corporate constantly furthering the interest of all
stakeholder”.

HR VISION: Lead and Facilitate continuous change towards organizational

excellence ; create a learning and vibrant organization with high sense of pride
amongst its members
 APPRAISAL & REWARD APPRAISAL
New Appraisal System based on KRAs & Targets
· Review of Targets at regular Intervals·
 People Development an important KRA

REWARD

 Promotions based on Performance·

 Productivity & Profit-linked Incentive Schemes·
 Training including Long-term Term

CAREER DESIGN

o Performance & Potential based Appraisals

o Fast Track Option for High-performers
o Promotions after Managers Vacancy based
o Interviews for promotions above Managers
o Selection of Supervisors:– Performance / Attendance/ Discipline
record– Written Test & Interview
o Job Rotation - including Inter-functional

RETENTION & EMPLOYEE WELFARE

 Residential Colonies for Employees.

 Hospitalization Reimbursement – on actual without Ceiling
 Vehicle Loans
 Household Equipment Loans
 House Building Advance
 Annual Advance
 PF Trust – for better Mgt., Service & speedy redress·
  Proposed MUL Pension Scheme.

SUGGESTION SCHEME & QUALITY CIRCLES

• For better quality and productivity.

• Through involvement of all employees and teamwork

Criteria

 Idea
 Effort
 Result: cost reduction/ quality improvement/ productivity improvement

HR INITIATIVES

• REALIGNING ORGANISATION CULTURE BASED ONNEW VISION & VALUES

• OBJECTIVE PERFORMANCE MANAGEMENT & DEVELOPMENT SYSTEM.

• PERFORMANCE LINKED REWARD AND RECOGNITION SYSTEM

• CAREER PLANNING & PROMOTION POLICY

• REVISED RECRUITMENT POLICY

• COMPETENCY MAPPING

• STRONG FUCUS ON TRAINING INITIATIVESBUILD A LEARNNG ORGANISATION

CO TINUOUS VALUE ADDITION TO PROFESSIONAL SKILL- CUSTOMISED
TRAINING- TRAINING TO PERSONNEL OF BUSSINES PARTNER.

• INTERNAL COMMUNICATION.

• UNION ALIGNMENT.

• EMPLOYEE INVOLVMENT & PARTICIPATION.

Tata Motors Appraisal System

 A detailed discussion with HR head Mrs. Monika Ahuja of Tata Motors (lucknow
branch), gave us the insight in the performance appraisal system followed in the
company. The appraisal model which is followed on annual basis starting from
the month of April till March has been extremely effective for the employees of
Tata Motors. Half yearly appraisal system, was started a year ago. This activity
was started keeping in mind the dynamic behavior of the industry. With a half
yearly appraisal system, the employee gets feedback twice a year, which gives
him/her a chance to re-look at his/her approach of working. Necessary steps are
also undertaken for employees who deviate from their goals. They have
introduced a comprehensive system of quarterly appraisals‟ where an employee
selects his/her own goals or Key Result Area (KRAs) every quarter and him/her
self assesses his/her own performance against these parameters. At Spice jet
while formally the process is annual, for several of the frontline employees, there
are performance related quarterly payouts designed to reward them with
incentives for their performance.
This has resulted in quarterly assessments which are aligned overall to annual
KRAs. Tata Motors have a midterm review for all those who have been
performers, thereby creating an expectation amongst the employees of an
increase in salary twice a year if they perform well. They used to have annual
appraisals earlier, but then they felt that the incentives are not enough to
motivation the sales department, which generates major revenues or the
organization. they do give monetary increments and designation hikes, according
to the performance. If the employee deserves both, they give him/her both the
advantages otherwise at least one of them. Designation hikes are given annually.
These are proportional to effort of the individual, team and the department.
Designation changes are given keeping in mind the immense responsibility one
has to shoulder in a high rank.
Monetary increments are primarily incentives that are given either in cash or kind
for example they give them travel package within India or outside. Also, they have
an accumulating incentive scheme in which employees can accumulate incentives
and get them annually with interest. To meet the new demands of the business
and to motivate the employees for higher performance, they have started linking
a part of the salary increase to individual performance measures as variable pay.
At present, between 6 to 8 percent of the compensation is variable pay, which
they are planning to increase over a period of time. Executives are categorized in
levels based on their performances in a relative ranking and based on outcome
performance- linked pay is awarded.
Goal-Setting Model
A goal setting program in an organization requires careful planning. As shown in
the figure, the first three factors in goal setting process are establishing the goal,
achieving goal commitment, and overcoming resistance to goal acceptance. Goals
can be established in a variety of ways. Best way is to set by joint participation
between the employee and the supervisor. This method often leads to employee
commitment, a crucial ingredient in effective goal setting.
Goal Setting S.M.A.R.T.* Goals
• Specific – precise and detailed
• Measurable – with criteria for determining progress and success
• Achievable – attainable and action-oriented
• Realistic – relevant and aligned
• Time-related – grounded within a time-frame
For this purpose, an online template is circulated in the organization. Superiors fill
out that form keeping in view the performance of their subordinate over the year.
This feedback becomes the basis of the promotion of the employee
 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research is composed of two words “RE” and “SEARCH”, which means to search
again for new facts or to modify older ones in any branch of knowledge. The
obvious function of research is to add new knowledge to the existing store but its
power for cleansing our minds of clichés and removing of rubbish of inapplicable
theory is equally notable. Thus, research can be defined as any scholarly
investigation in search for truths, for facts, for certainties. Research is an original
contribution to the existing stocks of knowledge making for its advancement. The
search for knowledge through the objective and systematic method of finding
solution to a problem is research.

Redman and Mory defines research as a “systematic effort to gain new

knowledge.”
 John Best defines “Research is a more systematic activity directed towards
discovery and the development of an organized body of knowledge.”

RESEARCH DESIGN

It is the conceptual framework within which the research is to be conducted. The

suitable design will be one that minimize the bias and maximize the reliability of
data collected and analyzed. Now we will have a brief look on the different aspects
of the research plan and contact methods. The research design used in the project is
descriptive. The objective of descriptive research is to describe market
characteristics or functions.

DATA SOURCES

This research plan comprises of secondary data sources. Secondary data are the
data that were collected for another purpose and were already present, which were
taken from the website.

METHOD OF COLLECTING SECONDARY DATA WAS

 Magazines and Newspapers

 Promotional Activities
 Secondary data through internet

SAMPLING DESIGN:
 The Sampling design for the study was based on convenience and easy
accessibility.
SAMPLE SIZE:
 50 Respondents

SAMPLE TECHNIQUE
 Random technique was adopted for data collection.
 Analysis and interpretation

Q1
 years of service
below 2 year 2-5 year 5-10 year 10 year and above
12% 4%
30%

54%

Interpretation
From the above pie chart maximum year of service of the employee of Tata
motors is maximum between 5-10 years(i.e54%) and minimum is below 2year
(i.e4%)

Q2
 awarness of technique of performance appraisal
no
30%

yes
70%

yes 35

no 15

Interpretation
From the above pie chart maximum employee are aware of their performance
appraisal technique (i.e.70%) and the employees not aware of it is (i.e. 30%)
Q3

employee's opinion as to the present appraisal system

fully satisfied satisfied can't say dissatisfied
2%

24%
30%

44%

option No. of response

Fully satisfied 12

satisfied 22

Can’t say 15

dissatisfied 1

FINDINGS
1. Presence of a firmly implemented career plan good sense of growth.
2. High proportion of routing work – during training and immediately after.
3. Organization climate-
 Well analyzed goals are set.
 Good and effective performance appraisal strategies applied.
 All the strategies are fair and objective.
 The employees are well aware of what is expected of them
 Proper feedback is not given to the management staff.
 Suggestions and innovation are not rewarded.
 Supervisor are patient with the employee’s problem.
 Good performance leads to annual increments and promotions.
 Training and development programs are not very effective and helpful.
 The purpose of performance appraisal system followed in the
company is fulfilled.
Conclusion
Performance appraisal is the process of reviewing employee performance the set
expectation in a realistic manner, documenting the review verbally in a face to
face meeting, to raise performance standards year over year through honest and
constructive feedback. In the process management expects to reinforce the
employee’s strengths, identify improvement areas so that one can work on them
and also set stretched goals for the coming year.
Effective performance appraisal a good deal offace to face supervisor employee
interaction. By knowing the subordinate , a supervisor can steer them onto a path
of greater productivity and optimized output. It is one of the most significant and
indispensable tool for an organization as it helps in getting to know the people
work for them. Provides information, which helps in taking important decisions
for the development of an individual and the organization.
Finally ,a performance appraisal is only as good as the performance management,
system it is part of. If an organization merely does performance appraisals for the
sake of doing them, they are wasting their time. But if they strategically
incorporate performance management into their strategic plan to implement
business goals, they will provide a process to accomplish those goals.

 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.

 By focusing the attention on performance, performance appraisal goes to the

heart of personnel management and reflects the management's interest in the
progress of the employees.
      
 Performance appraisal may be conducted once in every 6 months or once in a
year. The basic idea of the appraisal is to evaluate the performance of the
employee, giving him a feed back. Identify areas where improvement is required
so that training can be provided. Give incentives and bonus to encourage
employees etc
 Suggestions

 Implement more methods of performance appraisal and update the

employee about the type of method used for performance evaluation.
 The whole performance appraisal should be kept more transparent and
free from bias in the future.
 More opportunities should be provided for expressing their ideas and plans
to implement their level performance.
 More training should be offered to the mentally stressed staff which
improve their potential and result in top appraisal points.
 Overtime should be taken care of at the time of performance appraisal,
which would motivate the employees to better for longer hours.
 Suggestion could be obtained from employees regarding framing the
performance appraisal system.
 Appraisal feedback is very important in any performance appraisal
program. Should be carefully communicated by making high performers
increase their target and low performers to build up their confidence.
 LIMITATION
Lack Of Clarity:-

 .Appraisal Errors:-

 Unequal Performance:-

 Cultural Factors:-

 Time Consuming

Discouragement

Inconsistent Message

Rater Biases

 The review is done in retrospect and is an average of six months old so

recollection of events is poor

 The opinions of staff and manager are often in opposition, causing de-
motivation

 The process is usually Manager driven and the staff member is expected
to be compliant in the interview

 The process usually involves the Manager giving their opinion and the
staff member having to defend the position, rather than a positive
discussion

 There is no room for remedial action during the year

 .The process is usually done in a rushed manner to meet a budget

development process and therefore loses its relevance to performance
 . If not done appropriately, can be a negative experience.
 .Are very time consuming, especially for a manager with many employees.

 .Are based on human assessment and are subject to rater errors and
biases.

.If not done right can be a complete waste of time.

Can be stressful for all involved.

Bibliography

1.) Management of Performance Appraisal.

          By  Monga, M. L. 1983.
      Bombay: Himalaya Publishing House. 

2.) Performance Appraisal Theory and Practice.

          By  Rao, T. V. 1985.
   New Delhi: Vikas Publishing House. 

3.)Make performance appraisal relevant

      Oberg, W. 1972.
      Harvard Business Review

4.)A Manager's Guide to Performance Appraisal.

    Patten, T. H., Jr. 1982. 

5.) Human Resource Management

-C.B.Gupta
Sultanchand & Sons

6.)Human Resource &Personnal Management

K.Aswathappa
Tata Mc Graw hill

7.)www.google.com
       - www.appraisal-smart.com
       -www.soft tech.com
       -www.newmanglobal.biz