Professional Documents
Culture Documents
Vol-40-Issue-70-March -2020
(UGC Care Journal)
Abstract
Performance Appraisal is the systematic, periodic and impartial rating of an employee's
excellence, in matters pertaining to his present job and his potential for a better
job.Performance refers to “outcomes, results or accomplishments”, Performance appraisal
is “the systematic description of an employee‟s strengths and weaknesses”.The main
objective of the study was to assess the performance appraisal practice of Tata Motors
in Jharkhand. We tend to frame the subsequent objectives:
1. Identification of the technique of performance appraisal followed in Tata Motors.
2. Worker angle towards the current appraisal system.
3. Review of this appraisal system so as to
a. Enhance productivity
b. Attain world standards
4. To produce suggestions & recommendations from the study conducted.
Both qualitative and quantitative analysis approaches were used to
assembleinformation needed for the current study from sampled workers that were hand-
picked from the total population of 55 and enclosed to the study through straight
forward random sampling techniques. The collected information, that was
gatheredvictimization form, observations and secondary documents was
sorted, processed and analyzed manually with descriptive statistics, i.e. Percentage‟s and
tables in order to form valid generalization. Ultimately the analysis give affordable results
that might facilitate the management to take affordable call for his or her future
activity like worker‟s performance is evaluated on regular basis or
procedure; workers don't understand for what purpose that the performance appraisals
conducted in their organization; employee cannot understand whether or not they area
unit sturdy or weak at their performance and rater committees the error seen during
this organization.
1. Introduction
Performance appraisal, as a very important analysis system, has its roots in the
th
early 20 century, stemming from Taylor's pioneering time and motion studies. Performance
appraisal, as a definite and formal management procedure, that extremely dates from the time
of the Second World War, no more than sixty years past, is employed within the analysis of
labor performance appraisal. It's a basic human tendency to createjudgmentsregarding those
one is functioningwith,additionallyasregarding oneself (Dulewicz, 1989).
creating valid and excusable human resource management selections within the larger
institutional context.
Validate choice techniques and human resource policies to satisfy federal Equal
Employment chance needs.
2. Statement of Problem
Employees are the backbone, the foremost valuable assets & living half of an
organization that will build things happen, the follow of performance analysis is an inherent
and indivisible a part of the organization's life. The attainment of structure objectives mostly
depends on the motivation of employee to work and to their sensible perception of the
organization. The condition of an organization's being effective or ineffective is chiefly
increase the performance of their staff in a very sort of human resources applications
(Gungor, 2011).Thus,performance management ought to be a very important step within
the organization's HRM system and
influencesworkerperformancethento structure performance.
The reason why I selected this Research topic is that these days there square
measure several organizations that square measure counting on workers for fulfillment and
aggressiveness. According to their source – based view, workers square measure the
resources and assets of a corporation. Consequently, organizations have to be compelled to
discern methods for distinctive, encouraging, measuring, evaluating, up and gratifying
employees' performance at work. In line with this respect, performance management and
appraisal systems have return to play an indispensable role in serving to organizations to
succeed in their goals of productivity (Stevers&Joyce, 2000). In fact, human resource
management practices may influence the behaviours of individual workers. The impact of
Human Resources (HR) practices on employees' commitment and performance depends on
employees' perception and analysis of these practices (Guest, 1999).
Therefore, it's necessary that this analysis are conducted, or existing analysis
are expanded to grasp employees' experiences and perceptions of performance management
and appraisal system so that a completed and comprehensive performance system may
be engineered up. Moreover, it's necessary for employee and managers to grasp that
performance management and performance management systems area unit the key
determinants of an organization's long success or failure. If employee aren't happy or don't
accept as true with the performance management system, they're possible to be unwilling to
require a full of life half within the method as a result of they are doing not see any worth of
it. As a result, the structure performance and productivity would decrease thanks to the in
economical worker performance. To conclude, this subject would be fascinating and
significant for any organization as a result of the performances of staff have a major
relationshipwith structure performance. Also, understanding however HRM practices
influence employee performance may facilitate organizations fitting a higher management
system, and eventually improve employee performance and structure performance.
In accordance with the on top of general objectives, the specific objectives of the study of
Tata Motors are:-
To determine the factors that has an effect on performance appraisal of staff within
the Tata Motors.
To extend the workers awareness and satisfaction on performance appraisal inside the
organization
To investigate the responsibilities of employee's on performance appraisal.
To supply suggestions & recommendations from the study conducted.
5. Review of Literature
these down in termsof the character of appraisal and therefore the context within which it
operates. The previousis taken into account in terms of up to date thinking on the content of
appraisal (contextual performance, goal orientation and self-awareness) and therefore
the method of appraisal (appraiser - appraisee interaction, and multi-source feedback). The
discussion of the context of appraisal concentrates on cultural variations and therefore
the impact of latest technology”.
6. Research Methodology
describeand explain the qualitative and theoretical aspects of performance appraisal while
the quantitative approach was used to assess and describe efficiency and awareness of
employee's with table and percentages.To conduct this study, both Primary and Secondary
data sources were used. Secondary data were obtained direct from written documents.
Primary data were obtained from Questionnaire. In this research paper the researcher were
used probability sampling design with a sampling technique of Simple random sampling
in order to give equal chance of being the population is included in the sample. Considering
constraints including the study comprises a sample of 33 of 50 employees and 2 of 5 mangers
was used using simple random sampling techniques.Data processing and analysis were
Descriptive analysis with frequency distribution of responses along with percentages was
done and the analyzed data was organized and presented with tables.
7. Company Profile
Tata Motors Group (Tata Motors) could be a $45 billion organisation. It's a
number one world automobile producing company. Its numerous portfoliosinclude an
extensive rangeof cars, sports utility vehicles, trucks, buses and defense vehicles. Tata Motors
is one in all India's largest OEMs providing an extensive range of integrated, good and e-
mobility solutions
Tata Motors is a component of the USD 100 billion Tata Group founded by
Jamsetji Tata in 1868. Property and also the spirit of „giving back to society‟ could be a core
philosophy and smart company citizenship is powerfully embedded in our DNA. Tata Motors
is India‟s largest automobile company. We tend to bring around the client a tried legacy of
thought leadership with relation to customer-centricity and technology. We tend to drive the
transformation of the Indian business vehicle landscape bygivingcustomersvanguard
Auto technologies, packaged for power performances and lowest life-cycle prices. Our
new passenger cars are designed for superior comfort, connectivity and performance. What
keeps us at the forefront of the market is our concentrate on future-readiness and our pipeline
of tech-enabled product. Our design and R&D center‟s placed in India, the
UK,ItlayandKoreaattempt to initiate new Product that accomplish performances that will
fire the imagination of GenNext customers. Across the globally distributed organisation
that we tend to nowadays, there is one thing that energises and drives all our people and our
activities – that is our mission “to be Passionate in anticipating and providing the most
effective vehicles and experiences that excite our customers globally''.
Established in 1945, Tata Motors' presence indeed cuts across the length and
breadth of India. Over 7.5 million Tata vehicles ply on Indian roads, since the primary
extended in 1954. The company's producing base in India is unfold across Jamshedpur
(Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand),
Sanand (Gujarat) and Dharwad (Karnataka). Following a strategic alliance with Fiat in
2005, it's started associate degree industrial Joint venture with Fiat group Automobiles at
Ranjangaon (Maharashtra) to manufacture both Fiatand Tata cars and Fiat power trains. The
company's business concern, sales, services and spare parts network includes over 3,500
touch points.
A detailed discussion with HR head Mr. Ravi Shankar Singh of Tata Motors
(Jamshedpur branch), gave us the insight within the performance appraisal system followed
within the organization of Tata Motors group. The appraisal model that is followed on annual
basis starting from the month of April to next year of March has been extraordinarily
effective for the workers of Tata Motors
Half yearly appraisal system was started a year ago. This activity was started
keeping in mind the dynamic behavior of the trade and industry. With a half yearly appraisal
system, the employee gets feedback doubly a year, which provides him/her an opportunity to
re-look at his/her approach of operating. Necessary steps are also undertaken for workers who
deviate from their goals. They have introduced a comprehensive system of quarterly
appraisals wherever an employee selects his/her own goals or Key Result Area (KRAs)
quarterly and he/she assesses his/her own performance against these parameters. At Spice jet
whereas formally the method is annual, for many of the frontline employees, there are
performance connected quarterly payouts designed to reward them with incentives for his or
her performance.
Tata Motors have a mid-term review for all those that are performers, thereby
making anticipation amongst the workers of a rise in salary twice a year if they perform well.
They want to have annual appraisals earlier; then again they felt that the incentives aren‟t
enough to motivation the sales division that generates major revenues or the organization.
They do offer financial increments and designation hikes, in keeping with the
performance. If the employee deserves both, they provide him/her both the benefits otherwise
a minimum of one in all them. Designation hikes are given annually. These are proportional
to effort of the individual, team and also the department. Designation changes are given
keeping in mind the immense responsibility one has got to shave a high rank. Financial
increments are primarily incentives that are given either in Money or kind as an example they
provide them travel package within India or outside. Also, they need an accumulating
incentive scheme within which employees will accumulate incentives and acquire them
annually with interest.
To meet the new demands of the business and to inspire the employees for
higher performance, they need started linking a locality of the wage 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 an amount of your
time. Executives are categorized in levels supported their performances in an exceedingly
relative ranking and supported outcome performance-linked pay is awarded.
9. Data Analysis
In this Research Paper the data obtained through questionnaire were used for
analysis. 35 questionnaires were prepared and distributed, out of these only 30 questionnaires
or 85.7% of respondent filled and returned the questionnaire.
Managers /
Percentage
Percentage
Executives
Workers /
Employee
Option
Is the re formal
appraisal process in
your organization? Yes 2 100% 28 100%
No - - - -
Total 2 100% 28 100%
Source: Own Survey, 2019
Table 1 above indicates that full response of formal appraisal method. The complete the
complete that there was the formal appraisal method in the organization. Typically in this
organization an employee‟s performance is evaluated on regular basis or procedure and
therefore the organization has planned manner of material possession the Employees to
understand wherever they stand and the way they were progressing.
Percentage
Percentage
Executives
Workers /
Employee
Option
How often
Once a Year - - - -
performance
appraisal Two Times a
2 100% 14 50%
conducted in Year
As indicated in Table 2 on top of both 100% of managers and 50% Employee confirmed that
in their organization performance appraisal activities square measure command semi-
annually or twice in a very year and remaining 50% of Employee confirmed that in their
organization performance appraisal activities in Thrice in a year. This shows that the
organization is prepared to grasp the strength or weakness of the employee's performance
often and the raters spent a lot of their time conducting evaluations and finishing forms at just
once which can lead them to require to "get it over with" quickly.
Percentage
Percentage
Executives
Workers /
Employee
Option
Is Your
Director - - - -
Organisation
who does Division
- - - -
usually conduct Manager
Performance Immediate
1 50% 20 71%
Appraisal? Supervisor
Peer /
1 50% 8 29%
Subordinate
Total 2 100% 28 100%
Source: Own Survey, 2019
As shown in the on top of table 3, 50% of managers and 71% of employees respond that
performance appraisal follow was done by immediate supervisor and 50% of Managers
& 29% of employee argue that the appraisal follow is through peer/subordinates. This shows
that in ERA, the responsibility for critical employee‟s performance is given to the immediate
supervisor. Really having just one rater isn't applicable for the organization as a result of the
rating result is exposed to bias as a result of subjective analysis techniques. Often; eliciting
performanceinformation from a form of supply results in performance
managementmethodthatis comparatively correct and effective. Thus, having multiple raters
like managers, peers, self, subordinate etc. provide a means that for minimizing bias
in an otherwise subjectiveanalysistechniques.
Managers /
Percentage
Percentage
Executives
Workers /
Employee
Option
Is there
communication
between the
rater & rates Yes, Always 1 50% 5 18%
about the
purpose of Yes,
1 50% 9 32%
Performance Sometimes
As shown on the above table 4, 50 % of managers and 18% of employee respond that,
Always there is a communication between the rater and rates about the purpose of
Performance Appraisal. While 50% of managers and 32% of employee respond
that,sometimes but not at all there is communication between the rater and the
rates regarding the aim of performance appraisal? Whereas the rest 50% of Employee‟s
says, there's no communication between the rater and also the rates regarding the aim of
performance appraisal. This shows that majority of employees don't recognize for what
purpose that the performance appraisals conducted in their organization.
Percentage
Percentage
Executives
Workers /
Employee
Option
For what
Purpose is the
performance Salary
- - - -
appraisal result Increment
Purpose
To Link
employees
activities with
1 50% - -
the
organizationals
Goal
Do not Know - - 18 64.3%
Total 2 100% 28 100%
Source: Own Survey, 2019
As indicated in the above table 5, managers respond that the aim of performance appraisal in
their organization is principally for rewarding the employees who are outstanding in respond
their performance relative to different and to link the employee‟s activities with
the structure goal. From Employees views, 10.7%, 14.3% and 10.7% responded that the
purpose of performance appraisal in their organization is for rewarding, promoting
and training respectively. Whereas the remainder 64.3% of employees have no
any information or they are doing not apprehend why performance appraisal practices is
conducted in their organization.
Percentage
Percentage
Executives
Workers /
Employee
Option
Do You / Is
there employee
participation on Yes, Always - - - -
Appraisal Yes,
process? 2 100% 19 67.9%
Sometimes
Not at all - - 9 32.1%
Total 2 100% 28 100%
Source: Own Survey, 2019
According to the above table 6, both managers and 67.9% of employees respond that there
is participation once performance appraisal conducted. The remaining 32.1% of employees
don't participate within the appraisal process. This employees might have negative
perspectivetowards performance analysis basic cognitive process that performance appraisal
is merely employed by the organization to apportion blame and to supply a bases for
disciplinary action and that they see it as a stick that the management has got to introduce
with that to beat them.
Generally speaking, from the above response we will conclude that the rater
committees the error like central tendency error, contrast error and bias is wide seen during
this organization.
Most of employees aren't glad within the appraisal process of ERA and
provides suggestions towards improvement of appraisal practice. Provide timely and
complete feedback in an atmosphere of respect andcourtesy, Communicate
expectationsconcerningperformance evaluations, standards and rewards, Minimize rating
errors and biases by providingtraining for the rater, and Establishing consistent
standardsonceevaluatingtotally different employee.
10. Conclusion
Based on the above result, the researcher tried to draw the following Conclusions:
The majority of respondents were adult aged, male and degree holders. In
addition to this most of the respondents were full-fledged workers. In organization an
employee‟s performance is evaluated on regular basis or procedure. Responsibility
forevaluativeemployee‟s performance is given by the immediate supervisor. The
bulkofEmployee‟s doing not apprehend for what purpose that the performance appraisals
conducted in their organization.Employee cannot apprehend whether or not they are strong or
weak at their performance because of the dearth of debate after performance analysis results.
Majority of respondent were that the rater committees the error like central tendency
error,contrast error and bias is widely seen during this organization.
11. Suggestions
As per the data analysis and conclusion, the researcher gives the following better suggestion
which helps the organization to have more effective appraisal system.It is imperative that the
stakeholders should pay attention to awareness development with particular emphasis on
those of employees at performance appraisal. Employee should participate in appraisal
process; if they participate in all the process of performance appraisal those they want
to be committed in their owns or group performance activities. Post-performance discussion
should be conducted. An appraisal is incomplete without discussing the result with the
employees. Without feedback the appraisal become an administrative exercise in filling out
forms. The management should develop standard and criteria for varies job types at every
level of the organization through detailed job analysis and avoided such errors. The
organization should use multi raters in order to reduce appraiser bias. There must be appraisal
interview which provide an opportunity to: - Discuss employee‟s performance possible
improvement in their performance and explain his or her views about the rating, standards,
rating methods, internal and external cause for low level of performance.
12. References