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A PROJECT REPORT ON PERFORMANCE APPRAISAL IN PARTIAL FULLFILLMENT FOR THE DEGREE OF MASTER OF BUSINESS ADDMINISTRATION (SESSION – 2009-2011

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SUBMITTED TO MAHARISHI DAYANAND UNIVERSITY ,ROHTAK

Supervised By: Mrs. SAPNA DADWAL Faculty of MBA, GITM

Submitted By: PAWAN KUMAR ROLL NO.- 09-MBA-132

GURGAON INSTITUTE OF TECHNOLOGY & MANAGEMENT BILASPUR, GURGAON

CONTENTS

Preface Declaration Acknowledgement

Chapter-I Introduction

Introduction (Conceptual Framework)

1-19 1 15 16

Significance of the Study Company Profile Focus of the Study

Chapter-II

Literature Review

20-24

Chapter-III

Research Methodology

25-28

• • • • • •

Objective of the study Scope of the Study Research Design Sample Size and Technique Data Collection method Limitation of the study

26

27 27 28

Chapter-IV

Data Analysis and Interpretation

29-39

Chapter-V

Conclusions & Suggestion

40-43

Chapter-VI

Appendix & bibliography

44-48

PREFA CE
True learning is born out of experience and observation practical experience is one of the best types of leanings that one can remember throughout the life. After III semesters in learning theoretical aspects of administration and management, the day come to apply these in corporate world in content of modern industrial enterprise that has to go through its different terminal to achieve that corporate goals. The main object of practical training is to develop practical knowledge and experience and awareness about industrial environment and business practices in the student as a supplement to theoretical studies of administration and management in specific area like HRM. It increases the skill, ability and attitude of a student to perform specific job in industrial environment.

Fortunately, I got golden opportunity to visit at THE LUMAX. Here, I got chance to see the functioning HRD departments and imbibe a lot learning of the subjects.

DECLARATION

I PAWAN KUMAR, Roll no.09-MBA-132, Class MBA 4TH SEM. Of the GITM here by declare that the project entitled “ PROJECT REPORT ON PERFORMANCE APPRASAIL” is an original work and the same has not been submitted to any other institute for the award of any other degree,the interim report was presented to the supervisor on 4 th apriland the pre submission presentation was made on 11th april 2011.The feasible suggestion have been duly incorporated in consultation with the supervisor Countersigned Signature of the Supervisor Signature of the candidate

Forwarded by

Director /principle of the institute

ACKNOWLEDGEMENT

I would like to thank all those people who helped and provided their support and to complete this Training Report successfully.

We are thankful to Mr. P.k. Sharma (Executive Director) LUMAX for Giving me the permission to carry out the project in the organization.

I am thankful to Mr. L.m.. Yadav (Manager Personnel), and all the employees of LUMAX for giving me their valuable time.

I also thank PROF.NARENDER KUMAR (HOD)and MRS.SAPNA DADWAL(SR.LECT.) for giving me their valuable time.

(PAWAN KUMAR)

CHAPTER-1 INTRODUCTION .

According to Flippo. performance management and performance appraisal is necessary to understand each . which consists of Performance Appraisal . People differ in their abilities and their aptitudes. There is always some difference between the quality of the same work on the same job being done by two different people. refine and reward the performance of the employee. This duration is also said as the training period for us. Its aim is to measure what an employee does. periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for better job. It is a powerful tool to calibrate. Secondly I had chosen my topic. I had completed my training with Human Resource Management also known as Personnel Department. PERFORMANCE APPRAISAL Performance appraisal is the process of obtaining.INTRODUCTION This report was made during the summer vacation after the end of the II semester at GITM. Therefore. By focusing the attention on performance appraisal goes to the heart of personnel management and reflects the management’s interest in the progress of the employees. I had chosen this topic because I wanted to know that how a company works and while working with personnel department I find that the desire of my heart was fulfilled because I was able to know the company in a better way.” Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future. a prominent personality in the field of Human resources. It helps to analyze his achievements and evaluate his contribution towards the achievement of the overall organizational goals. During the summer training I had gone to Bhiwadi in Lumax. “performance appraisal is the systematic. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. analyzing and recording information about the relative worth if an employee. which is directly related to company’s performance and the workers performance respectively.

It helps to align the individual performance with the organizational goals and also review their performance. An attempt has been made to study the current global trends in performance appraisal.employee’s abilities. the methods and approaches of performance appraisal. Performance appraisal helps to rate the performance of the employees and evaluate their contribution. competencies and relative merit and worth for the organization. sample performance appraisal forms and the appraisal software’s available etc. The history of performance appraisal can be dated back to the 20th century and then to the Second World War when the merit rating used for the first time. Performance appraisal rates the employees in terms of their performance. Performance Appraisal takes into account the past performance of the employees and focuses on the improvement of the future performance of the employees. An employer evaluating their employees is a very old concept. we attempt to provide an insight into the concept of performance appraisal. Here at naukrihub. If the process of performance appraisal is formal and properly structured. Performance appraisals are widely used in the society. Performance appraisal is necessary to measure the performance of the employees and the organization to check the progress towards the desired goals and aim. . Towards the organizational goals. Performance appraisals are an indispensable part of performance measurement. The latest mantra being followed by organizations across the world being –“get paid according to what you contribute” – the focus of the organizations is turning performance management and specially to individual performance. it helps the employees to clearly understand their roles and responsibilities and give direction to the individual’s performance.

To judge the effectiveness of the other human resources functions of the organization such as recruitment. Provide information to assist in the other personal decisions in the organization. To provide feedback to the employees regarding their past performance. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. Helps to strengthen the relationship and communication between superior – subordinates and management – employees. To provide clarity of the expectations and responsibilities of the functions to be performed by the employees.OBJECTIVE OF Performance appraisal : • • • • • • • • • To review the performance of the employees over a given period of time. training and development. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. . selection.

This recognizes employees as individuals and focuses on their development. The Modern approach to performance appraisal is a future oriented approach and is developmental in nature. The results of performance appraisals are used to take various other HR decisions like promotions. demotions. reward outcomes. In 1950’s the performance appraisal was recognized as a complete system in itself and the Modern Approach to performance appraisal was developed. during a past – specified period of time. performance appraisal has been used as just a method for determining and justifying the salaries of the employees. This approach was a past oriented approach. Than it began to be used a tool for determining rewards (a rise in the pay) and punishment (a cut in the pay) for the past performance of the employees. Appraisal have become a continuous and periodic activity in the organizations. this approach is also called as the overall approach. This approach did not consider the development needs or career developmental possibilities. transfers. which focused only on the past performance of the employees i. The modern approach to performance appraisals includes a feedback process that helps to strengthen the relationship between superiors and subordinates and improves communication throughout the organization.e. Now.APPROACHES TO PERFORMANCE DEVELOPMENT Performance appraisal – Traditional approach Traditionally. employees training needs. training and development. career development paths. rewards and bonuses and their promotions to the next levels. the performance appraisal is taken as a tool to identify better performing employees from others. Performance appraisal – Modern approach The modern approach to performance development has made the performance appraisal process more formal and structured. . Therefore. The primary concern of the traditional approach is to judge the performance of the organization as a whole by the past performances of its employees.

may creep in the appraisal process. They should have the required expertise and the knowledge to decide the criteria accurately. halo effect (i. Therefore the rater should exercise objectivity and fairness in evaluating and rating the performance of the employees o Resistance The appraisal process may face resistance from the employees and the trade unions for the fear of negative ratings. o Errors in rating and evaluating Many errors based on the personal bias like stereotyping. The standards should be clearly communicated and every employee should be made aware that what exactly is expected from him/her. Therefore. the employees should be communicated and clearly explained the purpose as well the process of appraisal.CHALLENGES OF PERFORMANCE APPRAISAL In order to make a performance appraisal system effective and successful. one trait influencing the evaluator’s rating for all other traits) etc. . They should have the experience and the necessary training to carry out the appraisal process objectively.e. an organization comes across various challenges and problems. The main challenges involved in the performance appraisal process are : o Lack of competence Top management should choose the raters or the evaluators carefully.

3.PERFORMANCE ASSESSMENT GUIDELINES 1) Self-Assessment All Appraises will make a Self-Assessment of their own performance and fill in the following information in the Performance Assessment Worksheet: S. No. 2) Performance Assessment Discussion . Measure(s) These are yardsticks for evaluating the extent of performance with respect to a KRA. Performance with respect to defined KRAs lead to distinct contributions/ outcomes towards organizational objectives. achievable and time-bound. 2. Key Result Area (KRA) These are critical functions of a job. Performance Standard This is a specific goal corresponding to the Measure of a KRA and should preferably be realistic. Term Description 1. 4. The minimum Weight age is 10% 5. A particular KRA may have more than one Measure. Weight age (%) This demonstrates the relative importance of the KRA in terms of the priority and effort and should add up to 100%. Extent of Over-/ Underachievement (with elaboration) To what extent the Performance Standards were met and description about the causes of /factors responsible for Over/ Under-Achievement.

Planning of KRAs.This candid discussion between the Appraiser and the Appraisee on the latter’s performance during the year should focus on the following aspects: • • • • Demonstration of the extent of performance by the employee in the objective terms. the Appraiser will fill in the following information: Comments of Appraiser This will include specific observations/ remarks relevant to the Assessment of the Appraisee. Reviewing and discussing performance bottlenecks and making plans to overcome them. 3) Assessment by Appraiser Post discussion with the employees. Definition of Level Assessed Level Description of Level Typical % Achievement of Results KRA Performance Overall Performance . Identifying the key drivers and facilitators for performance. Assessed Level The Performance Level of an Appraisee for each of his/her KRAs as well as the Overall Performance ( for the Job as a whole) will be as per table below. Measures and Performance Standards for the next year. or any other Jobrelated aspect.

4) Performance Review The Appraiser will forward the Worksheet duly assessed and completed by him/her to the Reviewer (the immediate supervisor of the Appraiser) for his/her review and validation. NI Needs Improvement Less than 85% Performance only partially Overall Performance only Meets expectations and Partially meets job expectations Needs improvement. consistently DE Demonstrates Excellence Greater than Achieving challenging and Overall performance exceeds all 120% Stretch goals and meets Job expectations and is “visible” Industry/ organizational Across the organization. ME Meets Expectations Between Performance meets Overall Performance Demonstrated meets all job Expectations. the Assessed Level of Overall Performance for the employee will be documented in the Worksheet (based on the guidelines in the above table). Based on discussion with the Reviewer. And improvement is needed. SME Short of Minimum Expectations Poor or Performance demonstrated Overall performance Insignificant Falls short of minimum Demonstrated falls short of Results Expectations. . Standards of excellence. expectations and is “visible” Job Across the Department/ Function/ Location.Performance exceeds Expectation. Minimum job expectations. EE Exceeds Expectations Between Performance exceeds Overall Performance exceeds all 100% to 120%Expectations in all respects. 85% to 100% Expectations.

the Overall Performance as assessed will be taken through the Performance Calibration Process by the Functional Directors. . if any. Performance Appraisal is aimed at: o To review the performance of the employees over a given period of time. Typically. Performance level Distribution guidelines: Assessed Level DE EE ME NI SME % of Head Count 10% 25% 50% 10% 5% PURPOSE OF PERFORMANCE APPRAISAL Performance appraisal is being practiced in 90% of the organizations worldwide appraisal and potential appraisal also form a part of the performance appraisal purpose. 5) Performance Calibration Process After the completion of performance review. This process would aim at reviewing performance levels across the functional area and apply necessary changes in line with structured guidelines.The reviewer and the appraiser shall document their overall comments relating to the assessment of employee and sign off at respective places in the worksheet.

o To diagnose the training and development needs of the future.o To judge the gap between the actual and the desired performance. but the fundamentals of performance appraisal are the same. selection. But as the level of the employees’ increases. To reduce the grievances of the employees. training and development. . The parameters. Provide clarity of the expectations and responsibilities of the function performed by the employees. To judge the effectiveness of the other Human Resource function of organization such as recruitment. o To help the management in exercising organizational control. performance appraisal is more effectively used as the tools of managing performance. the characteristics and the standards for evaluating may be different. - Provide information to assist in the HR decisions like promotions transfers etc. - Helps to strengthen the relationship and communication between superior – subordinates and management – employees. PERFORMANCE APPRAISAL DIFFERENT LEVELS FOR EMPLOYEES AT Performance appraisal is important for employees at all levels throughout the organization.

PERFORMANCE APPRAISAL OF MANAGERS: Appraising the performance of managers is very important. Managers can be rated on the above parameters or characteristics. and Performance as managers Performance in accomplishing goals is Managers are responsible for the performance of their teams as a whole. organizing. it is qualitative in nature like leading his/her team. which are concerned with planning.e. his plans of course of action to achieve them and the extent of achievement of the goals. CRITERIA FOR MEASURING DIFFERENT LEVELS: PERFORMANCE AT The criteria for measuring performance changes as the levels of the employees and their roles and responsibilities change. planning etc. leading. motivating and controlling. but at the same time. guiding. Therefore. Performance as managers The responsibilities of managers include a series of activities. directing. Performance in accomplishing goals would mean to look at the completion or achievement of the goals set for a team of employees which is being assigned to or working under a particular manager. it is one of the most difficult tasks in the organization. It is difficult because most of the managerial work cannot be quantified i. A few examples for each level are described below: For top-level management • Degree of organizational growth and expansion . The best measuring criteria for a manager are high goals. motivating. the two things to be noted and evaluated for the purpose of appraisals are: • • Performance in accomplishing goals.

According to a popular saying: “ A SUCCESSFUL MAN IS ONE WHO CAN LAY A FIRM FOUNDATION WITH THE BRICKS OTHERS HAVE THROWN AT HIM. But the way of giving as well as receiving the feedback differs from person to person and they’re way of handling and their outlook towards the issue. on the part of the person receiving the feedback. o .” Therefore. He should not hesitate to ask for the help of his superior. the following points important to be taken care of: o o The employee should have a positive attitude towards the feedback process.• • • Extent of achievement of organizational goals Contribution towards the society Profitability and return on capital employed For middle level managers • • • • Performance of the departments or teams Co-ordination with other departments Optimal use of resources Costs v/s revenues for a given period of time The communication with superiors and subordinates • For front line supervisors • • • • Quality of actual output against the targets Quality of output against the targets Number of accidents in a given period Rate of employee absenteeism PERFORMANCE APPRAISAL FEEDBACK Performance Appraisal process is incomplete without the feedback given to the employee about his appraisal and his performance. He should listen to the suggestions of the appraiser calmly and try to incorporate them in his plans.

o Have a positive attitude towards the process. The goal is not to criticize the employee. o Be fair and objective. . o Listen to the employee and note his points. o Don’t judge the appraiser as a person. which motivate him to perform better.o Should have a co-operative attitude during the feedback meeting. • Helpful to learn what is the performance appraisal system of the company. On the part of the appraiser or the manager/person giving the feedback. o Prepare yourself for what to say and how to say. o The appraiser should make it a two – way conversation i. problems etc. o The appraiser should not adopt a confrontational approach towards the meeting. SIGNIFICANCE OF THE STUDY: • This study very helpful to know about how to appraise the employees. suggestions. o Should take the feedback objectively. the following points are to be taken care of: o The appraiser should make the receiver feel comfortable during the feedback meeting. o Provide a constructive feedback to the employee i. Make the appraisal feedback meeting useful and productive for the organization and the employee. in a way. let the employee speak.e.e. o Should not judge the appraiser as a person on the basis of the feedback. o Try to understand the reasons of his failure.

• Performance appraisal system also motivate the employee for better performance. • This study also helpful to know about how personal department work and how it adjust with lower level and upper level ? .• This study also helping for knowing the methods of performance appraisal system.

The company went public in the year 1984 . foundation. Japan .COMPANY PROFILE COMPANY PROFILE Lumax Industries Ltd. was incorporated in 1945.Ten years of highly rewarding partnership resulted in Stanley picking up financial stake Lumax signifies . promoted by S C Jain has grown from success to success since its in Lumax in the year 1994 . and thus in the same year embarked on its highly successful technical collaboration with Stanley.

two are located in cities of Gurgaon . Jain . attained its QS 9000 certification in the year 1998 and achieved the ISO/TS 16949 : 2002 and ISO 14001 in 2003. It has taken automotive lighting to an entirely new level. near Mumbai in Maharashtra and one plant near Chennai . technology.‘LUMINOSITY MAXIMA’ for today’s demanding automobile users. Dharuhera in the state of Haryana. Lumax has seven ultra modern manufacturing plants in India. catalyzed by its over two decades strong technical and financial collaboration with Stanley Electric Company Ltd. Lumax . near New Delhi and three plants in Pune.C. Lumax is listed on major stock exchanges . manufacturing and market leadership. In the same year Lumax Industries Ltd de-merged from its Mirror and Filter Division . enjoys a history of more than half a century of innovation. serving automobile manufacturing in India as-well-as worldwide. under the aegis of its founder S. Lumax has come a long way since its inception as a trading company in the year 1945. Lumax has a futuristic vision with an experienced and customer focused management team. there-by focusing on its core competency of producing stellar automotive lighting products. Today. Of these. As the most experienced automotive lighting solutions company in South Asia. automotive lighting now enjoys a singular focus at Lumax Industries. Lumax became an ISO 9002 certified company in 1995 . Japan. Lumax facilities are manned by over a 2000 highly skilled and specialized personnel composed of associates. despite a de-merger from its mirror and filters businesses. a world leader in vehicle lighting and illumination products for automobiles. executives and managers. Lumax Industries Limited is a full-capability provider of high quality automotive lighting solutions for four wheelers and two wheeler applications. Lumax posted a growth of over 39% in 2004-05. Today Lumax accounts for over 60% market share in the Indian automobile lighting business. their plants are busy producing automotive lighting products in large quantities to customer's exacting standards. These facilities have been laid out to match world's best plant engineering standards. Lumax strives for continual improvement of manufacturing processes with emphasis on consistent quality and cost effectiveness. This is clearly evident from their financial growth which has seen a steady upward trend right since their inception.

France Truck Lite. 1984 Private ltd.C. Nissan. Technical Alliance: • • • Lumax. trucks. earthmovers. buses. xompany to public limited company . 1975 Manufacturing unit set up for automotive filters .in India and depicts a shareholding holding of 26% by Indian promoters. stellar quality Head Lamps and Tail Lamps. Hero Honda. John Deere. Chairman. 1956-66 Manufacturing units set up for automotive lighting equipment and other components. Japan Valeo lighting Systems. Maruti Suzuki. Bajaj. establishes a trading concern. Technical assistance agreement with a Japan based company for lighting equipment. Volvo Fiat and many more. two wheeler. which includes. Sundry and Auxiliary Lamps and other related products and accessories for four wheeler. 1985-87 Dedicated manufacturing unit for Maruti-Suzuki at Gurgaon . Europe Milestones: • • 1945 S. Tata. Clients The company is having a highly diversified customer base its clientele includes global as well as domestic automotive majors like. tractors and a variety of diverse applications. 1990 Manufacturing unit for auto bulbs with assistance a Japanese company. Vignal. Ford. • • • • • . TruckLite.Haryana. Product range of the company includes: Lumax Industries offers a wide array of complete automobile lighting systems and solutions. 1977-79 Manufacturing units became functional at Faridabad-Haryana and PuneMaharashtra. and 46% by public and corporate bodies . Jain .

1995 ISO 9002 Certification to Gurgaon unit by TUV Germany . 2003 ISO/TS 16949 : 2002 Certification for GURGAON and Dharuhera plants by DNV.Core Lighting Technology. 1999 QS-9000 Certification to Dharuhera unit by DNV Netherlands . USA . Production begins at Lumax Dharuhera . • • • • • . Dharuhera and Chennai plants by DNV . De-merger .• 1994 Financial participation of collaborator with a Japanese firm . 2004 ISO 14001 Certification for Gurgaon. 1998 QS-9000 Certification to Gurgaon unit by DNV Netherlands . Manufacturing unit at Aurangabad-Maharashtra .

Rationale Performance appraisals are one of the most important requirements for successful business and human resource policy (Kressler. Rewarding and promoting effective performance . 2003).CHAPTER-2 LITERATURE REVIEW LITERATURE REVIEW I.

Introduction Performance evaluations have been conducted since the times of Aristotle (Landy. 2003). and their potentials. and motivation of the employee. 1983). within the Student Affairs division. performance information provides the vehicle for increasing satisfaction. training programs. and reward allocations (Landy. Evaluating employee performance is a difficult task. II. Cleveland. In addition. selection rules. middle-level and lower level employees. Cleveland. 1983). 1983). are essential to effective to human resource management (Pulakos. Cleveland. and training decisions and assignments (London. The ability to conduct performance appraisals relies on the ability to assess an employee’s performance in a fair and accurate manner. the information needs to be collected in a systematic way. Zedeck. .Zedeck. promotional strategies. In the counseling setting. their competencies. as well as identifying ineffective performers for developmental programs or other personnel actions. Once the supervisor understands the nature of the job and the sources of information. There is little disagreement that if well done. It also provides for the raw data for the evaluation of the effectiveness of such personnel. Performance measurement allows the organization to tell the employee something about their rates of growth. it provides the foundation for behaviorally based employee counseling. commitment.Zedeck. The measurement of an employee’s performance allows for rational administrative decisions at the individual employee level. The model discussed is an example of a performance appraisal system that can be implemented in a large institution of higher education. provided as feedback. 2003). Evaluation instruments (forms) are provided to assist you with implementation the appraisal system.system components and processes as recruiting policies. performance measurements and feedback can play a valuable role in effecting the grand compromise between the needs of the individual and the needs of the organization (Landy. The earliest formal employee performance evaluation program is thought to have originated in the United States military establishment shortly after the birth of the republic (Lopez. After a review of literature. 1968).in organizations. a performance appraisal model will be described in detail. and integrated into the organization’s performance management process for use in making compensation. job placement. The model can be applied to tope level.

III. The employee development goals should be recognized as legitimate.The relationship between supervisor and employees is taken to an adult-to-adult level. A portion of the process should be devoted to an examination of potential opportunities to pursue advancement of acceptance of more complex responsibilities. These sessions will be particularly important for new employees who will benefit from early identification of performance problems. 1993). Both the supervisor and the employee should recognize these sessions as constructive occasions for two-way communication. 1993). but it also motivates an employee to pursue additional commitments. Once these observations have been shared. When the goals are identified. the plan might involve additional training.Employee learns of his or her own strengths in addition to weaknesses. concrete. and plans should be made to reach the goals through developmental experiences or education (Barr. Employee renews his or her interest in being a part of the organization now and in the future. Both the supervisor and employee should recognize that a strong relationship exists between training and performance evaluation (Barr. not personalities. . problems that need to be corrected. 1993). The supervisor should keep in contact with the employee to assure the training experiences are producing desired impact (Barr. the pursuit of these objectives will also improve the prospect that current employees will be qualified as candidates when positions become available. Purpose Performance appraisals should focus on three objectives: performance. . . 1993). reaching agreement on what the employee is going to improve in his performance and what you are going to do (McKirchy.Work teams may be restructured for maximum efficiency. relevant issues. valid. a plan for their achievement should be developed. In addition. 1998). and additional responsibilities that might be undertaken.New goals and objectives are agreed upon. Encouraging development is not only a supervisor's professional responsibility. The plan may call for resources or support from other staff members in order to meet desired outcomes. the supervisor and employee should develop a mutual understanding about areas for improvement. - . Each employee should be allowed to participate in periodic sessions to review performance and clarify expectations.Employee is an active participant in the evaluation process. How to arrive? Reasons why need to be done Benefits of productive performance appraisals. . Sessions should be scheduled ahead of time in a comfortable setting and should include opportunities for self-assessment as well as supervisor feedback. This approach not only motivates current performance but also assists the recruitment of current employees as qualified candidates for future positions (Barr. rather than subjective emotions and feelings. . In some cases.

or national origin) must be a valid system (an accurate measure of performance associated with job requirements). Holding the employee responsible for the impact of factors beyond his/her control. 4.Time is devoted to discussing quality of work without regard to money issues. 2003). Bias/Prejudice. These pitfalls may include but are not limited to: 1. . 6. Otherwise. Trait assessment. 1992). 3. 5. the Civil Rights Act of 1991 and the Age Discrimination in Employment Act of 1975 (London. age.Supervisor becomes more comfortable in reviewing the performance of employees. (Randi. 2. Pitfalls to Avoid When conducting performance appraisals on any level. family background. Sachs.e. Relying on impressions rather than facts. it is important to keep in mind the common pitfalls to avoid. Failure to provide each employee with an opportunity for advance preparation (Maddux. religion. IV. . it can be challenged in the courts based on Title VII of the 1964 Civil Rights Act. Toler. race. 1993). education. Over-emphasis on favorable or unfavorable performance of one or two tasks which could lead to an unbalanced evaluation of the overall contribution. Race. Legal Implications Any performance appraisal system used to make employment decisions about a member of a protected class (i.Training needs are identified. . gender. and/or sex. Too much attention to characteristics that have nothing to do with the job and are difficult to measure. . religion. Based on age.Employees feel that they are taken seriously as individuals and that the supervisor is truly concerned about their needs and goals. V.

Another important aspect to consider is the employee’s right to privacy. Employees must have complete access to their personnel files. The question of how specific the reward. and vacation time. and how to reward group efforts can be a tricky subject to master. relevant. VI. Our advice on this is to keep it simple. If two employees are being evaluated in the same way.Uniform Guidelines on Employee Selection 1978 is the controlling federal law in the area of performance appraisals. additional professional development funding. . rewards can be as simple as more autonomy on the job. It is important to have an established reward system. The Equal Employment Opportunity Commission (EEOC) requires that any measurement used to differentiate between employees must be valid and fairly administered. and current. when the reward should be given. Rewards Effective reward systems are often hard to establish when creating performance appraisals. The records should be accurate. their reward opportunities should reflect their evaluation outcomes. praise for progress. The Americans with Disabilities Act (ADA) suggests that performance appraisals for people with disabilities for people with disabilities will not be conducted any differently than those for other employees. The important aspect to remember when establishing reward systems is to be consistent. However. but others should have controlled access.

observation. the pursuit of truth with the help of study. comparison and experiment.CHAPTER-3 RESEARCH METHODOLOGY RESEARCH METHODOLOGY Research is an art of scientific investigation. The Advanced Learner’s dictionary of current English. lays down the meaning of research as a careful investigation or inquiry especially .

Research methodology helps to answer many questions concerning a research problem of study. . concepts and theories for a better study of unknown phenomena. OBJECTIVE OF THE STUDY • The main motto of the study is to learn about the performance appraisal system of the company. It aims at developing new tools. Research aims to analyze interrelationship between variables and to drive explanations and thus enables us to have a better understanding of the world in which we live. a researcher studies the various steps that are adopted to the research problem. Some people consider research as a movement.through search for new facts in any branch of knowledge. To gain the practical knowledge about the personnel relations of employer and employee. a movement from the known to the unknown. • What are the rights enjoyed by the employee while working in the company? • To gain the knowledge of the industry and to know the structure of the company. • My area of interest was personnel department because I want to know about my ability while being in the organization. A significant part of research is the Research Methodology. In research methodology we not only consider the research method but also the logic behind the method chosen. • • What are the various methods to appraise any employee so as to make him work for the good sake of the company? • How to train the employee so he could be able to catch the goals ineffective way. It is actually a voyage of discovery. In it.

A structured questionnaire would be presented to every respondent. relevant websites. related data can be collected in two ways: • Primary data I inquired the respondent through questionnaire. Sources of primary data collection were: • • • Observation Questionnaire Interview . The advantage is that the questionnaires are simple. All these 50 members were the workers working within the company DATA COLLECTION METHOD For every research. • Secondary data The information and data relating to the project was taken form certain selected magazines. reference book and other details provided by the company. easy to understand and administer and can be easily tabulated and analyzed.SAMPLE SIZE The questionnaire in the company was circulated between the workers working in the company at different posts. The questionnaire was conducted for 50 members.

In all two approaches were adopted to collect data and information regarding this study. and requisite organizational information pertinent to the study.  Further some programs have been recently launched and therefore not many people had attended it. and at the same time. namely.  There were constraints of time also. ensure an in –depth perspective of the study. This was also a serious limitation in expanding the sample size. The first step involved the administering of the various questionnaires to the relevant people within the organization. of different department and designation. training and its programs. which provided the details of HR matters. the number of training programs and external to the regional office was dependent on the participative level of the programs. . LIMITATION OF THE STUDY  The sample size were limited due to some unavoidable reasons. the third phase sample was restricted to 50 on suggestion of the training supervisor. The second step was the collection of data from documents and manuals. The strategy applied was to have a wide coverage of the organization.Sources of secondary data collection were: • • • Document sources of the organization Various publications Official research and process data collected by the organization.

CHAPTER-4 DATA ANALYSIS AND INTERPRETATION . However due to unavailability of this information I had to study the effectiveness through the adopted procedure. We also believe that another way to find out the effectiveness of the programs could have been to analyze the performance records of the participants before and after attending the training programs.

Regular activities of the workers (Attendance). Respondents 20-40 40-60 60-80 80-100 Total Percentage 15% 25% 40% 20% 100% TABLE:-1 40% 35% 30% 25% 20% 15% 10% 5% 0% 20-40 40-60 60-80 80-100 20-40 40-60 80-100 60-80 Chart-1 INTERPRETATION .DATA ANALYSIS AND INTERPRETATION 1.

15% respondents are under 20-40 respondents.25% respondents are under 40-60 respondents. Do workers work with their full response towards the work? Respondents Excellent Good Average Total Percentage 44% 44% 12% 100% TABLE:-2 Chart-2 INTERPRETATION 44%respondents work excellent towards their work.40% respondents are under 60-80 respondents 2.44%respondents work good towards their workand 12%respondents work average towards their work .

Do the workers give the fruitful performance? Respondents Yes No Can’t say Total Percentage 55% 35% 10% 100% TABLE:-3 Can’t say No Yes 0% 20% 40% 60% C an’t say No Y es Chart-3 INTERPRETATION 55%person give their fruitful work.35% person don t give their fruitful work and can not be told about 10%person .3.

4. Do workers help in maintaining the cleanliness of the company? Respondents Yes No Can’t say Total Percentage 45% 55% 05% 100% TABLE:-4 60% 50% 40% 30% 20% 10% 0% Yes No C an’t say Yes No Can’t say Chart-4 INTERPRETATION .

45% person help in maintaing cleanness in the company 55%person don t help in maintaing cleanness and 5%preson can not say 5. Do the workers work according to rules and regulations of the company? Respondents Yes No Can’t say Total Percentage 50% 50% 00% 100% TABLE:-5 50% 40% 30% 20% 10% 0% Y es No C ’t say an Yes say No Can’t Chart-5 INTERPRETATION 50%person work according their rules and 50%person don t work according their rules and 0% can not say .

6. Do the workers complete the work in given time period? Respondents Yes No Can’t say Total Percentage 45% 35% 20% 100% TABLE:-6 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Yes No Ca s y n’t a Yes No Can’t say Chart-6 INTERPRETATION .

35% person don tcomplete their work in given time period and can not be said about the 20% person 7. Do the workers give the excellent quality of work output? Respondents Excellent Good Average Total Percentage 75% 25% 00% 100% TABLE:-7 80% 60% 40% 20% 0% Averag e Good Ex cellent Ex cellent Good Averag e Chart-7 INTERPRETATION 75% person give the excellent quality of work output.45% person complete the work in given time period.25%person give their good quality of work output .

8. Can workers work or face the compliance and the buyers of the company? Respondents Yes No Can’t say Total Percentage 20% 75% 05% 100% TABLE:-8 80% 60% 40% 20% 0% Y es No C an’t say Y es No C an’t say Chart-8 INTERPRETATION 20% worker face the compliance and and 75%worker don’t face the compliance and can not be said about the 5% person .

20% worker don’t use the resources effectively . Do the workers use the company’s resources effectively? Respondents Yes No Can’t say Total Percentage 80% 20% 00% 100% TABLE:-9 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No C n’t s y a a Chart-9 INTERPRETATION 80% worker uses the company resources effectively.9.

How do workers act to their fellow men and supervisors? Respondents Excellent Good Average Total Percentage 65% 25% 10% 100% TABLE:-10 80% 60% 40% 20% 0% Averag e Good Ex cellent Ex cellent Good Averag e Chart-10 INTERPRETATION 65%worker work excellent to their fellowman and supervisors and 25% worker act good to their fellowman and supervisors and 10% person act average to their fellowman and supervisors .10.

SUGGESTION .CHAPTER-5 FINDING.CONCLUSION &.

40% respondents are under 60-80 respondents 55%person give their fruitful work.FINDING • • • • • 15% respondents are under 20-40 respondents.35% person don t give their fruitful work and can not be told about 10%person 55%person give their fruitful work.20% worker don’t use the resources effectively 65%worker work excellent to their fellowman and supervisors and 25% worker act good to their fellowman and supervisors and 10% person act average to their fellowman and supervisors .35% person don t give their fruitful work and can not be told about 10%person 80% worker uses the company resources effectively.25% respondents are under 40-60 respondents.

This is all because of the effective Personal Department. which is always there to help the environment of the company.CONCLUSION In Lumax there is very large number of the workers working for the company and a company is an export house so it requires a large number of human resources to work over. So it is quite clear that for smooth run of the company it is necessary to have a Personal Department to cope up between the workers and the management. it is the skilled labour that works very effectively to reach the desired goals. Secondly. The company is earning good name and fame in the international market because of its ability of completing the consignment given to them. So we can say that only the Human Resources Department has the ability to bridge the gap between the top management sitting over to earn profit and the workers in the company working to earn livelihood. . This man power helps Lumax to achieve what it wants from the market so for keeping this power in closed hands to utilized it well the company has the Human Resources Department which is their to compromise the fight of the rights of the workers along with the profit of the company.

Workers should be given the good response to the quality of work they give to the organization.SUGGESTION 1. 4. 6. Top level management should try to communicate the workers directly sometimes. The technique of using this Performance appraisal is good and some more techniques must also be practiced as like Training programs and the teaching the workers how to get control various disasters like fire fighting and so on. . All the accessories required by the job must properly provided not only by the time when compliance their on the field. Though the cleanliness of the organization is good but as per my observation more precautionary measures must be there to overcome the unsafe environment. 3. 2. 5. 7. which the outcome of the water used for the washing purpose. Proper treatment should be given to the workers of the company by middle order management. It was good t see the proper usage of the water.

CHAPTER-VI APPENDIX & BIBLIOGRAPHY .

How effective the performance of worker is? ( ) Excellent ( ) Average 4.QUESTIONNAIRE Name:-________________________________ Age:-__________________________________ Gender:-______________________________ Designation:-________________________ Department:-________________________ Date of joining:-____________________ Note: This questionnaire would be kept as confidential document as it’s for Survey Purpose. To what extent the workers maintain the cleanliness of the organization? ( ) Excellent ( ) Good ( ) Good ( ) Party . QUESTIONS 1. and would not be revealed to Lumax Management. Are the workers regular with their activities? ( ) Regular ( ) Irregular 2. How able are workers in completing their work? ( ) Fully ( ) Averaged 3.

Are the workers capable of facing the compliance and buyers in effective way? ( ) Yes ( ) Can’t say 9. Is the quality of output / result is good which workers give? ( ) Excellent ( ) Average 8. Do the workers fully utilize the company’s resources? ( ) Yes ( ) Can’t say 10. How does a worker act towards his fellow men and towards his superior? ( ) Pleasantly ( ) Impolitely ( ) No ( ) No ( ) Good ( ) No ( ) Some times .( ) Average 5. Up to which level do the workers follow the rules and regulations? ( ) Every time ( ) Occasionally 6. Are the workers able to complete the task in given time period? ( ) Yes ( ) Can’t say 7.

B.W. Human Resource Development.W. Readings in Human Resource Development. Rao.V.WIKIPEDIA.B.BIBLIOGRAPHY P. Dr. Sultan Chand and Sons. Himalaya Publication House. Satish Mamorya.Mamorya.COM . W.revised Edition .M. C. Publishers Dr. 2001. Net surfing. Oxford and I. P. Tripathi.C.