CHAPTER I

INTRODUCTION

1.1. GENERAL INTRODUCTION

The employees become the most important factor in any organization since they are the back
bone of the company. The organization depends on the quality and characteristics of the
employees, without them the organization cannot achieve its goals and targets. Human
resources manager views performance appraisal as a motivational tool which makes the
employees to know their personal strengths and weaknesses. This guides the employee to
work more efficiently for the organization. The performance appraisal is a systematic process
of assessing and evaluating the performance of employee on the job. Appraising human
potential is one of the ways to enhance one’s performance. It is a periodic review of an
individual employee’s job performance. Performance appraisal is the assessment of past
performance within a given time. The purpose is to judge how well employees have
performed with relevant to organizations expectations. The human resources manager has
several goals, which includes employee’s development, employee motivation development
and organization development. Performance appraisal is a widely discussed concept in the
field of performance management. Employee job performance is measured in terms of
quality, quantity, cost, behavior and time. This measurement is done by the manager or
supervisor under whom the person is directly working. It plays major role in employee’s
career development. This consists of measuring, comparing, finding, guiding, correcting and
managing the employee. The performance management framework is the role of employee
performance in achieving organizational goals. Evaluation enhances motivation to increase
performance. Number of organizations use performance appraisal to promote the needs and
goals of the organization. The organization should ensure right working environment for
employee’s better performance. The environment includes fair treatment, offering support,
effective communication. It is important to revisit and redesign the appraisal system that is
aligned to the vision and mission of the organization. Human resources management which
connects the aims of the organization to the performance of the individual.

1.2. STATEMENT OF THE PROBLEM

The present working system demands a great need of commitment and effort from
employees, who in turn expect a great deal from their employers. Performance appraisal over
the years becomes a very crucial part of the human resources management in the
organization. Performance appraisal is designed to maximize the effectiveness in individual
level about standards of work, potential, aspirations and concerns. It is an opportunity for
employees to develop the quality of their working lives. Now-a-days if an employee gives
better quality of goods and services in return enjoys better quality of goods and services from
the employers.

Performance appraisal is a process of assessing, summarizing, and developing the work

performance of an employee. In order to be effective and productive the performance
manager should make is better effort to communicate information about the employees
performance as best as possible. Low performance can push the organization back in today’s
tough competitive world. This research is aimed to assess the performance appraisal in
KYOWA CASTEC INDIA PRIVATE LIMITED.

1.3. IMPORTANCE OF STUDY

Performance appraisal is an essential and irreplaceable activity which is necessary for all
important decisions relating to people, such has placement and promotion, remuneration and
reward, training and development and also organization development. In recent years efforts
have been taken by the organizations to use the appraisal system for motivation, for more
effective communication, for strengthening employees, for achieving goals and for improving
the whole performance of the organization.

A very good performance appraisal system is needed for every organization, that makes the
organization dynamic and growth oriented. This system is the best requirement to bring up
the organization and its productivity. Performance appraisal is very important for the
development of both individual and organization. The employee assessment has been done by
the system of appraisal by the superior or human resources manager. This system gives
chance for the individuals in organization to improve their knowledge on job, skills and other
developments related to their career.

1.4. ORGANIZATION PROFILE

HISTORY
On September 2012 the KYOWA CASTEC INDIA PRIVATE LIMITED was registered in
India. A temporary office started in Chennai on November 2012. On December 2013 got the
factory land allotment confirmation letter. Construction work started with ground breaking
ceremony on February 2014 and MoU signed with honorable Chief Minister
Ms.J.Jayalalithaa. Inauguration of factory was done on February 2015 and planned to start the
production on March 2015.

ABOUT

Kyowa Castec India Private Limited is a wholly owned subsidy of Kyowa Altec Co., Ltd.,
Japan. Kyowa Castec India Private Limited is the aluminum casting company situated in
SIPCOT Industrial Park near Sriperumbudur, Kanchipuram District in Tamilnadu, India.
Founded in July 2012, our factory operations began in 2014.

We cast a wide variety of materials from 125 tons to 800 tons of die casting machine. We
actively incorporate the best die design and the latest casting system and offer customers the
best products in terms of both quality and cost. We have the latest cutting-edge processing
equipment and responds to customer’s high precision required quality. In addition, we are
making optimum process corresponding to multi-product small volume production.

VISION

We aim to become a company that continues to be chosen.

MISSION

We Challenge the Business & Technology Innovation.

VALUE

We Value for the people.

PRODUCT MANUFACTURING PROCESS

MELTING-Aluminum ingot are melted in a dissolution furnace

CASTING-Melted aluminum are injected into metal mould on HPDC Machine

TRIMMING-Remove unwanted material from the casting

DEBURRING-Finishing edge and surface

MACHINING-Machining DC part to final shape

INSPECTION-Inspect surface check will be done by measurement

ASSEMBLY-Child parts assembly

LEAK TEST-Setup leak tester to check air leak

INSPECTION-Check visual inspection

PAINTING / CHEMICAL-Painting or chemical treatment process

FINAL INSPECTION-Inspect appearance and dimensional check with using instruments

and make report

DELIVARY-Deliver to the customer

ENVIRONMENTAL INITIATIVES

Kyowa Castec India recognizes that protection of the global environment is the most
important issue common to mankind and strives to realize “manufacturing in green” and
protect the global environment with the aim of harmonious coexistence with nature.

Based on the environmental management system (ISO 14001), Kyowa Castec India aims to
“create products surrounded by greenery” and is working on environmentally friendly
processes and product creation.

As part of it, we are proactively implementing the introduction of sound proofing / fire
proofing facilities and energy-saving equipment and improving recycling aimed at “zero
emissions”.

In addition, participating in “Challenge 25”, an effort to reduce CO 2 emissions, we regard

environmental protection as an important management task.
 Taking into consideration the environmental impact inside the factory, we strive to
prevent environmental pollution and aim for a factory trusted by local communities.
 Continue improvement and improvement of comprehensive environment.
 We will comply with environmental laws and regulations and other requirements
agreed by us.
  Based on the environmental policy, we set environmental objectives and targets, carry
out periodic review and confirm the degree of achievement, and we will carry out
ongoing improvement activities.
 We will notify all employees of our environmental policy and improve the level of
awareness of environmental improvement through ongoing training.
 Information on this environmental policy and environment is widely publicized both
inside and outside.

EQUIPMENTS

FURNACE
 Center Furnace 2000Kg×1
 Electric Holding Furnace ×12
 Advanced metal transfer method ×2
MOULD
 Mould open/close
 Mould assembly m/c
 Lathe milling drilling
 Bardsaw cutting m/c
CASTING
 Die Cast 125T×1
Die Cast 200T×1
Die Cast 250T×3
Die Cast 350T×3
Die Cast 500T×1
Die Cast 650T×１
Die Cast 800T×2
Trimming Robot
MACHINING
 Machining Center × 2
 Turning mic (NC) × 2
 Robot Drill × 16
 SPC × 6
SHOT BLAST
 Chemical × 1
 Shot Blast × 3
 Vibro Polish Machine × 1
ASSEMBLY
 Leak Tester ×9
 Hand press ×9
QUALITY
 Roundness Measuring ×1
 Material Composition analyzer ×1
 Roundness Measuring ×1
 Crushing Strength test ×1
 Surface Thickness Tester ×1
 Co-ordinate Measuring Machine ×1

TPM ACTIVITY

TPM activity is an abbreviation for “Total Productive Maintenance” and is a production

conservation activity by all members participating. Specifically, it is an activity to establish
mechanisms to prevent any loss beforehand on every worksite, and to do everything from the
top to the front-line employees across all sectors such as production department, technical
department, sales department, management department etc.

At our company, the difference between the form that should be and the form of the present
situation is taken as a loss, and the whole activity that fills up the loss is regarded as a TPM
activity. We are also working on integrating environmental issues and improving quality by
integrating TPM activities with ISO activities.

 Efficient manufacture of good products with high reliability and economy in

consideration of customer’s requirements.
 Do not inconvenience customers after delivery.
 To achieve this objective, all employees should have the necessary information
necessary for carrying out the work based on TPM activities and principle activities.
 In order to implement this basic policy, we set quality objectives as TPM activity
policy and goals and evaluate achievement level.
 Continually improve the effectiveness of the quality management system.
 CHAPTER II

REVIEW OF LITERATURE

According to Spriegel and others, “Performance appraisal is the process of evaluating the
employee’s performance on the job in terms of requirements of the job.”

In the words of Edwin. B. Floppy, “Performance appraisal is the systematic, periodic and an
impartial rating of an employee’s excellence in matters pertaining to his present job and his
potential for a better job.”

Alford and Beatty have defined it as – “the evaluation or appraisal of the relative worth to
the company of a man’s services on his job”.

According to Dale S. Beach, “Performance appraisal is the systematic evaluation of the

individual with regards to his or her performance on the job and his potential for
development.”

Randall S. Schuler, “Performance appraisal is a formal, structured system of measuring and

evaluating an employee’s job, related behavior and outcomes to discover how and why the
employee is presently performing on the job and how the employee can perform more
effectively in the future so that the employee, organization, and society all benefit.”

Heyel, “It is the process of evaluating the performance and qualifications of the employees in
terms of the requirements of the job for which he is employed, for purpose of administration
including placement, selection for promotion, providing, financial rewards and other actions
which require differential treatment among the members of a group as distinguished from
actions affecting all members equally.”

Dale Yoder, “Performance appraisal includes all formal procedures used to evaluated
personalities and contributions and potentials of group members in a working organization. It
is a continuous process to secure information necessary for making correct and objective
decisions on employees.”
U.Suphawadee et al, 2015, The Performance Appraisal was an important instruments for
human resource development the same as Education as well as Training. It was significant in
the raise as well as the promotion rather than being used as an instrument for staff
development truly. For the performance appraisal of Secondary School Teachers, under
jurisdiction of Local Administrative Organization in feedback consisted of 2 factors
including: the feedback for those who were evaluated, and the feedback for school.

Boipono.M et. al, 2014, Performance Management System enabled the majority of public
servants to plan, monitor and account for their performance organizational culture affected
the implementation of PMS negatively as some of the leaders did not understand the system
and thus were not able to guide their subordinates towards realizing the goals of the system.
In addition, the study observed that some supervisors use PMS as a punitive tool and
deserving employees were not fully rewarded, something that demotivates employees.

Imran. M, 2014, Performance Appraisal system has a clear sense of path, honest and
meaningful feedback. There should be instant and honest strengthening and give a chance to
employees to contribute in set the goals and standards for performance management. The
purpose of appraisal system to allow for nonstop communication between management and
teachers about job performance and as well as increased the organizational performance.

Nadeem. M et.al,2014, Performance refers to the well-organized planning, achievement and

accomplishment of the given task.It not only focuses on the achievement of goals but also the
ways how the goals are achieved. Performance shows both behavior and achievement.It
depends on variety of questions and multidimensional ideas.In school organization,
performance is not only about efficiency but also about behaviors and acts to achieve the
goals.

Nyongesa.P et.al, 2014, The performance appraisal system is meant to enhance the
performance of teachers by integrating an individual’s goal with those of the organization. It
entails objective setting, self appraisal and feedback on performance and performance
evaluation itself. The purpose of any appraisal system is to enhance the performance of
employees in an organization. Despite the TSC having an appraisal system for the purpose,
performance in secondary schools in Bungoma County remains poor.

Sindhi.S, 2013, As education is becoming more learner-centered than before, on the basis
that pupils need to become actively involved in their own learning processes, in order to learn
and develop to the full and they need to participate in their own development, becoming able
to analyze and reflect on their competencies, so that they become independent thinkers and
doers so all the high achieving schools have started new performance appraisal. The new
appraisal system called ‘360 degree' performance appraisal appeared to be the perfect fit for
the systematic objective and comprehensive teacher appraisal. These schools tried to develop
360 degree performance appraisal system to support individuals planning their own personal
development and to enhance performance.

Aggarwal.A, Thakur. G, 2013, Performance appraisal system is used in the organizations to

measure the effectiveness and efficiency of their employees. Performance Appraisal system is
needed because every employee has a different attitude to handle the work. Performance
Appraisal tends to improve the work performance, communication expectations, determining
employee potential and aiding employee counseling.

Chamundeswari.S, 2013, Performance of teachers mainly depends on the teacher

characteristics such as knowledge base, sense of responsibility, and inquisitiveness; the
student characteristics such as opportunity to learn, and academic work; the teaching factors
such as lesson structure, and communication; the learning aspects such as involvement and
success; and the classroom phenomena such as environment and climate, and organization
and management.

Dash.S et. al, 2013, In the last two decades, the importance of teaching evaluation has been
emphasized in higher education. Many Medical Schools have searched for ways to
effectively and constructively evaluate performances of their faculty members. Teaching
evaluation has been used to provide diagnostic information for teachers on specific aspects of
their teaching to help them improve their performance.

Joshi. M, 2013, Performance Appraisal provides information which is highly useful in

making decisions regarding various aspects such as promotions and merit rating. It is helpful
in preventing grievances because it is a definite aid to management in promoting fairness. It
provides accurate information which plays a vital role in the organization as a whole.

Figazzolo. L, 2013, Within the US, traditional appraisal systems relied heavily upon
classroom observationsbut new appraisal systems are now employing multiple instruments
and multiplesources of information. Classroom observation and student growth and learning
canbe found in almost all recently developed appraisal systems. These comprehensive
teacherappraisal systems include evidence of classroom practice, the contribution a
teachermakes to his or her profession, professional growth, and a teacher’s contribution
tostudent growth and learning.

OECD, 2013, A clear and transparent chain between the performance assessment and
continuing professional-development opportunities is essential for improving teaching
practice (Ofsted, 2006). Identifying individual teachers’ strengths and weaknesses helps to
determine which professional-development activities meet the teacher’s own needs as well as
the school’s priorities. It is important for teachers to see appraisals as the basis for
improvement and growth in their profession, regardless of their current level of performance
(Isoré, 2009).

Boachie-Mensah.F, Seidu.P, 2012, Employees are likely to embrace and contribute

meaningfully to the Performance Appraisal scheme if they recognise it as an opportunity for
personal development, a chance to be visible and demonstrate skills and abilities and an
opportunity to network with others, but if employees perceive Performance Appraisal as an
unreasonable effort by management to try to closer supervise and gain control over tasks they
carry out, they won’t welcome the scheme as easily.

Toppo.L, Prusty.T, 2012, Performance appraisal and performance management were one of
the emerging issues since last decade. Many organizations have shifted from employee’s
performance appraisal system to employee’s performance management system. This paper
has focused to study the evolution of employee’s performance appraisal system, critics the
system suffered and how the performance management system came to the practice. The
main purpose of this paper is to differentiate these two systems, employee’s performance
appraisal and management system.

Tuytens. M, Devos. G 2012, Performance appraisal is used internationally to improve

employee performance, also in the educational field. However, doubts exist about the
effectiveness of performance appraisal. This study aims to contribute by expanding the
knowledge about important context variables of performance appraisal in secondary
education. In particular, the study aims to examine the role of both characteristics of the
teacher performance appraisal system and the school leader for procedural justice and
perceived feedback utility by teachers.
Adeyemi.T, 2011, Teacher’s job performance was found to be better in schools having
principals using autocratic leadership style than in schools having principals using democratic
or laissez-faire leadership styles. It was recommended that school principals should imbibe a
mixture of autocratic and democratic styles of leadership in their school administration in
order to enhance better job performance among teachers. The use of the laissez-faire
leadership style should be discouraged among school principals, as it could not bring a better
job performance among teachers.

Malik.M et al, 2011, explained employee satisfaction with work as the degree to which an
employee likes his or her job. In simple words it can be said as the likeningness to the job that
motivates the employees to be present at their work places and carry out tasks to accomplish
goals. Whereas employee performance appraisal system can be better understood as Alternate
words used for this concept may be employee appraisal, performance review, career
development discussion etc.

Ontario, 2010, for performance appraisals to be both effective and meaningful, the
procedures governing them must be sound. Within the structure of the performance appraisal
system, principals and teachers should collaborate to find ways of making choices that
contribute to a positive outcome. The procedures should hold promise for bringing about
improvements in both teaching practice and student achievement.

CIPD, 2009, Performance Appraisal still plays a huge part in organisations today. A report
carried out found that 81.3% of organisations surveyed were carrying out performance
appraisal in their organisation as part of their performance management. In recent years,
performance appraisals have been used in organisations for numerous reasons, as opposed to
the historical method it was used for, making administrative decisions.

Redman. T, Wilkinson. A, 2008 The critics of Performance Appraisal believe it is an

expensive process, that it can cause conflict between the appraiser and appraisee, is not
hugely valuable and might also be debilitating the development of employee performance.

Robbins (2008), Managers are often uncomfortable discussing performance weaknesses

directly with employees. Given that almost every employee could stand to improve in some
areas, managers fear a confrontation when presenting negative feedback. Employees tend to
become defensive when their weaknesses are pointed out. Instead of accepting the feedback
as constructive and a basis for improving performance, some employees challenge the
evaluation by criticising the manager or redirecting blame to someone else.

De Cenzo and David.A (2007) feel that appraisers should only rate in those areas in where
they have substantial job knowledge. They should be as close as possible to the
organisational level of the employee being evaluated. If the appraiser is not in position where
they can observe the persons work behaviour then there is a greater chance of inaccuracies.

Armstrong.M (2006) defined Performance Appraisal as the formal assessment and rating of
individuals by their managers at, usually, an annual review meeting. While The Chartered
Institute of Professional Development (CIPD) have a more comprehensive and in-depth
definition which argues that

‘Performance Appraisal is an opportunity for individual employees and those concerned with
their performance, typically line managers, to engage in a dialogue about their performance
and development, as well as the support required from the manager’ (CIPD, 2013).

Armstrong. M. and Baron.A. 2005, define performance management as ‘a process which

contributes to the effective management of individuals and teams in order to achieve high
levels of organizational performance. As such, it establishes shared understanding about what
is to be achieved and an approach to leading and developing people which will ensure that it
is achieved.’

Fletcher. C (2004) believes that the general aims of Performance Appraisal also include
Motivating staff, Succession planning and identifying potential, promoting manager-
subordinate dialogue and formal assessment of unsatisfactory performance. However, Khan
(2007) states that the fundamental objective of performance appraisal is to facilitate
management in carrying out administrative decisions relating to promotions, firings, layoffs
and pay increases.

Hartog.D et.al, (2004), Performance management deals with the challenge organisations face
in defining, measuring, and stimulating employee performance with the ultimate goal of
improving organisational performance. Thus, performance management involves multiple
levels of analysis and is clearly linked to the topics studied in strategic human resource
management (HRM) as well as performance appraisal.
Rees.D, Potter .C (2003), define 360 degree appraisal as a process that involves the key
people in a person’s network of working relationships making assessments of a person’s
performance. They subordinate being appraised is then given structured feedback; this may
involve feedback from subordinates and any key outside parties, if it is practicable.

Robert.G( 2003), Participatory performance appraisal is an essential component of a fair and

ethical evaluation of an employee. When employees possess meaning role in the appraisal
process, employee acceptance and satisfaction with the appraisal process is strongly
enhanced.

Pettijohn.P et al (2001) identify participation and perceptions of fairness as integral to

employees' perceptions of job satisfaction and organisational commitment. They conclude
that Performance Appraisal Systems can be used to actually improve employees' levels of job
satisfaction, organisational commitment, and work motivation.

Cole. DJ (2000) says this type of appraisal involves assessment of an employee’s

performance in some systematic and planned way. It serves to determine how well an
employee is working and decides on ways to improve performance. It therefore calls for an
intermediate feedback in order to be effective.

Wiese.D, Buckley.R 1998, The performance appraisal process has been the focus of much
researcher and practitioner attention. In spite of this attention, methods used in performance
appraisal are generally ineffective in increasing the quality of performance appraisal
processes. Thus, while performance appraisal processes have evolved, progress has been less
forthcoming. There are many areas related to the performance appraisal process which are
ripe for development and research creativity.

Nayarana.D (1997) further believes that performance appraisal is based on the principle of
management by agreement or contract rather than management by command. It can in fact
play a major role of providing for an integrated and coherent range of human resource
management processes which are mutually supportive and contribute as a whole to improving
organisational effectiveness.

Mallard. K, (1997) The evaluation of faculty performance is one of the most frustrating and
mismanaged tasks of college and university administrators. Communicating strengths and
areas of improvement to highly educated, critically thinking professionals can be both
challenging and intimidating. When performance is good, when superior and subordinates
have an open relationship, when promotions or salary increases are abundant, when there is
plenty of time for preparation and discussion--evaluations run smoothly. However, these
conditions are rarely met in higher education, and the performance appraisal often becomes a
stressful and negative interview.

Craig.S (1996) Performance Appraisal has three main objectives, to measure performance
fairly and objectively against job requirements, to increase performance by identifying
specific development goals so that the workers may keep pace with the requirements of a fast
placed organization.

Eliza (1996) argued that in many organisations, the appraisal system has been mishandled.
She stresses that the worker should not walk blindly into performance appraisal. Past
counselling sessions, feedback and proper design are crucial. The appraisal should be a joint
effort because no one knows the job better than the person performing it.

The literature on performance review and performance management is, perhaps, the most
extensive in HRM research. This is also of great concern, with organizations constantly
trying to find, modify, and re-invent schemes that work. Performance measurements and / or
decisions are indispensable in any organization. There are some decisions that must be made,
and that require performance appraisal, whether personal or objective. Even in high-
performance environments, performance management can be a double-edged sword. On the
one hand, involving employees in decision-making and giving them maximum autonomy can
be encouraging, but, like Wood et al. (2012) An analysis of data from the 2004 UK
Workplace Employment Relationship Survey found that employees may experience stress
and anxiety, which compromises job satisfaction. Therefore, one of the keys to an effective
performance management system is to maintain a balance between employee and
organizational needs. In practice, the following decisions are usually based on feedback on
performance. Administrators have to decide whether an employee should gain stability after a
trial period; should be promoted pay should be given a salary or bonus in merit; should be
made redundant to facilitate further promotion training Must receive training and
development.