INTRODUCTION

Human Resource Management is concerned with the people dimension in

management since every organization is made up of people acquiring their services
developing their skills motivating them to achieve a higher level of performance & ensuring
that they continue their commitment to the organization & which is essential in achieving an
organizational objective.

This is true regardless of the type of organization, Government, education, health,

recreation, or social action.

H.R.M. is planning, organizing, Directing, Controlling, developing,

compensation, integration, maintenance & separating HR to the end that individual &
organizational & social objectives are accomplished. Thus H.R.M refers to a set program,
function & activities designed & carried out in order to maximize both employee as well as
organizational effectiveness.

Meaning:

Human resource management is a management function that helps the manager to

recruit select, train, and develop members of the organization Because human force acts as
the heart of an organization without human organization cannot achieve its predetermined
goals. In fact, H.R.M. is a management function concerned with hiring and motivating &
maintaining people in the organization.

Definition:

“H.R.M is a series of integrated decisions that form of employment relation the

quality contributes to the organization while employees to achieve their objectives.”

Significance:

 H.R.M. plays a crucial role in employee satisfaction, improving performance and

productivity. This helps in the organization’s competitive advantage, and it contributes to the
organization’s success. Every organization starts with a vision that their business, the priority
is to hire a competent workforce means the right person in the right place and the right time .

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Objective

Human Resource Management helps a company to achieve its objective from time to
time by creating a positive attitude among workers. Reducing wastage and making maximum
use of resources etc.

Facilitates professional growth

 Due to proper Human Resource policies employees are trained well and this makes
them ready for future promotions. Their talent can be utilized not only in the company in
which they are currently working but also in other companies which the employees may join
in the future.

Better relations between union and management  

Healthy Human Resource Management practices can help the organization to maintain
co-ordinal relationship with the unions. Union members start realizing that the company is
also interested in the workers and will not go against them therefore chances of going on
strike are greatly reduced.

Helps an individual to work in a team/group

  Effective Human Resource practices teach individuals team work and adjustment. The
individuals are now very comfortable while working in team thus team work improves.

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Identifies person for the future

Since employees are constantly trained, they are ready to meet the job requirements.
The company is also able to identify potential employees who can be promoted in the future
for the top-level jobs. Thus, one of the advantages of HRM is preparing people for the future.

Allocating the jobs to the right person

 If proper recruitment and selection methods are followed, the company will be able to
select the right people for the right job. When this happens the number of people leaving the
job will reduce as the will be satisfied with their job leading to decrease in labour turnover.

Improves the economy

Effective Human Resource practices lead to higher profits and better performance by
companies due to this the company achieves a chance to enter -into new business and start
new ventured thus industrial development increases and the economy improves.

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OBJECTIVES OF THE STUDY

 Help employees set goals

 Motivate high-performing employees

 Counsel underperforming employees

 Support for raises and promotions

 Plan for new hires

 Improve organizational performance

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NEED OF THE STUDY
Performance Appraisal is the organized analysis of the overall performance of employees in
this paper we will discuss about the performance appraisal in TATA MOTORS.

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SCOPE OF THE STUDY
The scope of performance management and appraisal should include in the
Providing employees with a better understanding of their role and responsibilities to increase
their confidence through recognizing strengths while identifying training needs to improve
weaknesses, Improve working relationships and communication between supervisors and
subordinates to increase commitment towards organizational goals, and develop employees
into future supervisors.

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RESEARCH AND METHODOLOGY

This paper mainly based on secondary data .The articles which are published in the area of
performance appraisal and information from TATA MOTORS WEBSITE.

Tata Motors Limited formerly is an Indian multinational automotive manufacturing

company headquartered in Mumbai, India and a subsidiary of the Tata Group. Its products
include passenger cars, trucks, vans and coaches. It is the world's eighteenthlargest motor
vehicle manufacturing company, fourthlargest truck manufacturer and second-largest bus
manufacturer by volume. Tata Motors has auto manufacturing and assembly plants in:

1) Jamshedpur

2) Pantnagar

3) Lucknow

4) Sanand

5) Dharwad

6) Pune

Tata Motors has produced and sold over 6.5 million vehicles in India since 1954.
Originally a manufacturer of locomotives, the company manufactured its first commercial
vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969. In 2010,
Tata Motors surpassed Reliance to win the coveted title of 'India's most valuable brand' in an
annual survey conducted by Brand Finance and The Economic Times. Tata Motors was
ranked as India's 3rd Most Reputed Car manufacturer in the Reputation Benchmark Study -
Auto (Cars) Sector, launched in April 2012.

Tata Motors has been ranked 314th in the Fortune Global 500 rankings of the
world's biggest corporations for the year 2012. Tata Motors is a crosslisted company; Its
stock trades on the Bombay Stock Exchange and the New York Stock Exchange as TTM.
Tata entered the commercial vehicle sector in 1954 after forming a joint venture with
Daimler-Benz of Germany. After years of dominating the commercial vehicle market in
India.

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 Tata Motors entered the passenger vehicle market in 1991 by launching the Tata
Sierra, a multi utility vehicle. After the launch of three more vehicles, Tata Estate (1992, a
stationwagon design based on the earlier 'TataMobile' (1989), a light commercial vehicle),
Tata Sumo (LCV, 1994) and Tata Safari (1998, India's first sports utility vehicle). Tata
launched the Indica in 1998, the first fully indigenous Indian passenger car. Although initially
criticised by auto-analysts, its excellent fuel economy, powerful engine and an aggressive
marketing strategy made it one of the best selling cars in the history of the Indian automobile
industry.

A newer version of the car, named Indica V2, was a major improvement over
the previous version and quickly became a mass-favorite Tata Motors also successfully
exported large quantities of the car to South Africa. The success of Indica played a key role in
the growth of Tata Motors. In 2004 Tata Motors acquired Daewoo's South Koreabased truck
manufacturing unit, Daewoo Commercial Vehicles Company, later renamed Tata Daewoo.

In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and
coach manufacturer Hispano Carrocera. Tata Motors continued its market area expansion
through the introduction of new products such as buses (Starbus & Globus, jointly developed
with subsidiary Hispano Carrocera) and trucks (Novus, jointly developed with subsidiary
Tata Daewoo).

In 2006, Tata formed a joint venture with the Brazilbased Marcopolo, Tata
Marcopolo Bus, to manufacture fully built buses and coaches. In 2008, Tata Motors acquired
the British car maker Jaguar Land Rover, manufacturer of the Jaguar, Land Rover and
Daimler luxury car brands, from Ford Motor Company. In May 2009 Tata unveiled the Tata
World Truck range jointly developed with Tata Daewoo. Debuting in South Korea, South
Africa, the SAARC countries and the Middle-East by the end of 2009.

Tata acquired full ownership of Hispano Carrocera in 2009. In 2010, Tata

Motors acquired an 80% stake in the Italy-based design and engineering company Trilix for a
consideration of €1.85 million. The acquisition formed part of the company's plan to enhance
its styling and design capabilities. In 2012, Tata Motors announced it will invest around Rs
600 crore on developing Futuristic Infantry Combat Vehicles in colloboration with DRDO.
Tata Motors has vehicle assembly operations in India, the United Kingdom, South Korea,
Thailand, Spain and South Africa.

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 It plans to establish plants in Turkey, Indonesia and Eastern Europe.Tata
Motors' principal subsidiaries include Jaguar Land Rover, Tata Daewoo and Tata Hispano.
Tata Motors is among the top three in passenger vehicles in India with products in the
compact, midsize car and utility vehicle segments.

The company is establishing a new plant at Sanand (Gujarat). Tata's

dealership, sales, service and spare parts network comprises over 3500 touch points. Tata also
has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and
Senegal.

Tata has dealerships in 26 countries across 4 continents. Though Tata is

present in many countries it has only managed to create a large consumer base in the Indian
Subcontinent, namely India, Bangladesh, Bhutan, Sri Lanka and Nepal.

Tata has a growing consumer base in Italy, Spain and South Africa. Tata
Motors has more than 250 dealerships in more than 195 cities across 27 states and 4 Union
Territories of India. It has the 3rd largest Sales and Service Network after Maruti Suzuki and
Hyundai. Tata Daewoo. In 2004, Tata Motors acquired Daewoo Commercial Vehicle
Company of South Korea.

To expand the product portfolio Tata Motors recently introduced the

25MT GVW Tata Novus from Daewoo‟s (South Korea) (TDCV) platform. Tata plans to
leverage on the strong presence of TDCV in the heavy-tonnage range and introduce products
in India at an appropriate time. This was mainly to cater to the international market and also
to cater to the domestic market where a major improvement in the Road infrastructure was
done through the National Highway Development Project.

Tata Daewoo is the second-largest heavy commercial vehicle

manufacturer in South Korea. Tata Motors has jointly worked with Tata Daewoo to develop
trucks such as Novus and World Truck and buses including GloBus and Star Bus. In 2012,
Tata will start developing a new line to manufacture competitive and fuel efficient
commercial vehicles to face the competition posed by the entry of international brands like
Mercedes-Benz, Volvo and Navistar into the Indian market

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LIMITATIONS

1. Errors in Rating

2. Lack of reliability

3. Negative approach

4. Multiple objectives

5. Lack of knowledge

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INDUSTRIAL PROFILE
Tata Motors Limited is an Indian multinational automotive manufacturing
company, headquartered in Mumbai, India, which is part of the Tata Group. The company
produces passenger cars, trucks, vans, coaches, buses.

Formerly known as Tata Engineering and Locomotive Company (TELCO),

the company was founded in 1945 as a manufacturer of locomotives. The company
manufactured its first commercial vehicle in 1954 in a collaboration with Daimler-Benz AG,
which ended in 1969. Tata Motors entered the passenger vehicle market in 1988 with the
launch of the TataMobile followed by the Tata Sierra in 1991, becoming the first Indian
manufacturer to achieve the capability of developing a competitive indigenous automobile.
 In 1998.
[7]

Tata launched the first fully indigenous Indian passenger car, the Indica, and in
2008 launched the Tata Nano. Tata Motors acquired the South Korean truck
manufacturer Daewoo Commercial Vehicles Company in 2004. Tata Motors has been the
parent company of Jaguar Land Rover since the company established it for the acquisition
of Jaguar Cars and Land Rover from Ford in 2008.

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 Tata Motors' principal subsidiaries include British premium car maker Jaguar Land
Rover (the maker of Jaguar and Land Rover cars) and the South Korean commercial vehicle
manufacturer Tata Daewoo. Tata Motors has a construction-equipment manufacturing joint
venture with Hitachi (Tata Hitachi Construction Machinery), and a joint venture
with Stellantis which manufactures automotive components and Fiat Chrysler and Tata
branded vehicles. On 12 October 2021, private equity firm TPG invested $1 billion in Tata
Motors' electric vehicle subsidiary.

Tata Motors has auto manufacturing and vehicle plants

in Jamshedpur, Pantnagar, Lucknow, Sanand, Dharwad, and Pune in India, as well as in
Argentina, South Africa, the United Kingdom, and Thailand. It has research and development
centres in Pune, Jamshedpur, Lucknow, Dharwad, India and South Korea, the United
Kingdom, and Spain.

Tata Motors is listed on the BSE (Bombay Stock Exchange), where it is a

constituent of the BSE SENSEX index, the National Stock Exchange of India, and the New
York Stock Exchange. The company is ranked 265th on the Fortune Global 500 list of the
world's biggest corporations as of 2019.

On 17 January 2017, Natarajan Chandrasekaran was appointed chairman of

the company Tata Group.

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 HISTORY

Tata Motors was founded in 1945, as a locomotive manufacturer. Tata

Group entered the commercial vehicle sector in 1954 after forming a joint
venture with Daimler-Benz of Germany in which Tata developed a manufacturing facility in
Jamshedpur for Daimler lorries. By the November of 1954 Tata and Daimler manufactured
their first goods carrier chassis at their Jamshedpur plant with 90-100hp and capacity of 3-5
tons.

 After years of dominating the commercial vehicle market in India, Tata Motors

entered the passenger vehicle market in 1991 by launching the Tata Sierra, a sport utility
vehicle based on the Tata Mobile platform. Tata subsequently launched the Tata
Estate (1992; a station wagon design based on the earlier Tata Mobile), the Tata Sumo (1994,
a 5-door SUV) and the Tata Safari (1998).

Tata Indica (first generation)

Tata launched the Indica in 1998. A newer version of the car, named Indica V2,
later appeared. Tata Motors also exported cars to South Africa.

In the 2000s, Tata Motors made a series of acquisitions and partnerships,

acquiring Daewoo's South Korea-based truck manufacturing unit,  a joint venture with the
Brazil-based Marcopolo, Tata Marcopolo Bus, Jaguar Land Rover. Hispano Carrocera, and
an 80% stake in the Italian design and engineering company Trilix.

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OPERATATION

Tata motors cars :

Tata Motors Cars is a division of Tata Motors which produces passenger cars under
the Tata Motors hood. Tata Motors is among the top five passenger vehicle brands in India
with products in the compact, midsize car, and utility vehicle segments.

Tata Daewoo

Tata Daewoo is a commercial vehicle manufacturer headquartered

in Gunsan, Jeollabuk-do South Korea, and a wholly owned subsidiary of Tata Motors. It is
the second-largest heavy commercial vehicle manufacturer in South Korea and was acquired
by Tata Motors in 2004.

Tata Hispano
Tata Hispano Motors Carrocera, S.A. was a bus and coach manufacturer based in Zaragoza,
Aragon, Spain, and a wholly owned subsidiary of Tata Motors.

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Jaguar Land Rover
Jaguar Land Rover PLC is a premium British automaker headquartered
in Whitley, Coventry, United Kingdom, and has been a wholly owned subsidiary of Tata
Motors since June 2008, when it was acquired from Ford Motor Company of USA.[36] Its
principal activity is the development, manufacture and sale of Jaguar luxury and sports cars
and Land Rover premium four-wheel-drive vehicles.

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Electric vehicles

Tata Motors has unveiled electric versions of the  Tata Indica passenger car
powered by TM4 electric motors and inverters, [51] as well as the Tata Ace commercial
vehicle, both of which run on lithium batteries which launched in 2022.

In 2008 Tata Motors' UK subsidiary, Tata Motors European Technical Centre,

bought a 50.3% holding in electric vehicle technology firm Miljøbil Grenland/Innovasjon of
Norway for US$1.93 million, and planned to launch the electric Indica hatchback in Europe
the following year.[52][53][54] In September 2010, Tata Motors presented four CNG–Electric
Hybrid low-floored Starbuses to the Delhi Transport Corporation, to be used during the 2010
Commonwealth Games. These were the first environmentally friendly buses to be used for
public transportation in India.

List of Tata electric vehicles:

 Tata Nexon EV
 Tata Tigor EV
 Tata Altroz EV
 Tata Tiago EV

Notable vehicles

Tata Nano
The Nano was launched in 2009 as a city car intended to appeal as an affordable alternative
to the section of the Indian populace that is primarily the owner of motorcycles and has not
bought their first car. Initially priced at ₹100,000 (US$1,500), the vehicle attracted a lot of
attention for its relatively low price. However, the Nano was very poorly rated for safety [58]
[59]
 and in 2018, Cyrus Mistry, chairman of the Tata Group, called the Tata Nano a failed
project, with production ending in May 2018.

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Tata Ace
Tata Ace, India's first indigenously developed sub-one-ton minitruck, was launched in May
2005. The minitruck was a huge success in India with auto analysts claiming that Ace had
changed the dynamics of the light commercial vehicle (LCV) market in the country by
creating a new market segment termed the small commercial vehicle segment. Ace rapidly
emerged as the first choice for transporters and single truck owners for city and rural
transport.

Tata Harrier
Tata Harrier is a 5-seater SUV that rivals the MG Hector and Jeep Compass. This car uses the
engine from Fiat which is a 2.0 L-4 cylinder turbocharged diesel motor and transmission
from Hyundai which is a 6-speed, available in both manual and automatic. Tata Harrier is
derived from the H5X Concept displayed at the 2018 Auto Expo. It was launched on 23
January 2019.

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Tata Nexon
The Tata Nexon is a subcompact crossover SUV produced by Tata Motors since 2017. It is
the first crossover SUV from Tata Motors, and occupies the sub-4 metre crossover SUV
segment in India.[69] The electric version of the Nexon was revealed on 19 December 2019.
The Nexon EV uses components from Tata Motors' electric vehicle technology brand
Ziptron.

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COMPNEY PROFILE

Tata Motors Limited (TML), a USD 42 billion organization, is India’s largest

automobile company by revenues. The company is a leading global manufacturer of cars,
utility vehicles, buses, trucks and defence vehicles and is working towards developing Smart
Mobility Solutions for Smart Cities. Tata Motors is also developing a smart range of EVs, to
accelerate the adoption of Electric Vehicles (EV) in the country, supporting the government’s
mission on electric vehicles. Incorporated in India, in the year 1945.

Tata Motors is a part of the USD 100 billion Tata group and has
operations across India, UK, South Korea, Thailand, South Africa, and Indonesia. A leader in
the Indian commercial vehicle market, Tata Motors also ranks amongst India’s top passenger
vehicle manufacturers, with over 9 million vehicles plying on Indian roads.

The company has played an instrumental role in transforming the country into
a destination for world-class automotive manufacturing and continues to work towards
building the nation. Tata Motors has always been at forefront of innovating technologies and
providing products and experiences catering to the discerning needs of our customers across
both passenger and commercial vehicles business. With its corporate brand identity -
Connecting Aspirations.

Tata Motors continues to create segment-defining products that will fire up

the imagination of customers - generation after generation; reiterating the company’s promise
of offering better journeys. With some of the worlds’ most iconic brands, including Jaguar
Land Rover in the UK, Tata Daewoo in South Korea, and a network of 76 subsidiaries
globally, the company has consolidated its position as the Tata Motors Group.

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 In India, Tata Motors’ presence cuts across the length and breadth of the country
with a manufacturing base spread across its biggest industrial hubs; Jamshedpur (Jharkhand),
Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Sanand (Gujarat)
and Dharwad (Karnataka). Recognized for its world-class quality, originality, engineering
and design excellence, the company is on the path of shaping the future of mobility in India.
With a strong team of 4,500 engineers, scientists and technicians at the company’s
Engineering Research Centre, Tata Motors’ R&D centers span multiple geographies,
including Pune (India), UK and South Korea. For the rapidly changing automotive
environment.

Tata Motors launched its sub-brand – TAMO. TAMO acts as an incubating center of
innovation towards new technologies, business models and partnerships in order to define
future mobility solutions. It operates as an agile, ring-fenced vertical, in the first step on a low
volume, low investment model to provide fast tracked proves of technologies and concepts.
TAMO will transform the experience of interfacing and interacting with customers and the
wider community.

It will provide a digital eco-system, which will be leveraged by Tata Motors to

support the mainstream business in the future. Sustainability and the spirit of ‘giving back to
society’ serves as the guiding philosophy at Tata Motors; along with good corporate
citizenship, which is strongly embedded in the company’s DNA. Through the Affirmative
Action Program, it has touched the lives of more than 5 lakh people in FY 16-17

Tata Group company whose relationship with India’s defence and security forces is
synonymous with that of the group is Tata Motors. India’s largest automobile company
(subsidiaries include Jaguar Land Rover), with consolidated revenues of almost $35 billion in
2012-13, is strategically moving from the logistics vehicle segment into the combat vehicle
segment.

20
n September 2004, we became the first company from India’s automotive sector to be listed
on the New York Stock Exchange. Our ADSs are traded on the NYSE under the symbol
“TTM”. Our Ordinary Shares and ‘A’ Ordinary Shares are traded on the BSE under the codes
500570 and 570001, respectively, and the National Stock Exchange of India Ltd., or NSE,
under the symbols “TATAMOTORS” and “TATAMTRDVR”, respectively.

As at March 31, 2015, our operations included 72 consolidated subsidiaries, 2

joint operations, 3 joint ventures and 18 equity method affiliates, in respect of which we
exercise significant influence. As at March 31, 2015, we had approximately 73,485
permanent employees, including approximately 45,488 permanent employees at our
consolidated subsidiaries and joint operations. Our Registered Office is located at Bombay
House, 24, Homi Mody Street, Mumbai 400 001, India

Our business segments are (i) automotive operations and (ii) all other
operations. Our automotive operations include all activities relating to development, design,
manufacture, assembly and sale of vehicles including financing thereof, as well as sale of
related parts and accessories. We provide financing for vehicles sold by dealers in India. The
vehicle financing is intended to encourage sales of vehicles by providing financing to the
dealers’ customers and as such is an integral part of our automotive business. Our automotive
operations segment is further divided into Tata and other brand vehicles (including financing
thereof) and Jaguar Land Rover.

We produce a wide range of automotive products, including:

Passenger Cars: Our range of Tata brand passenger cars include the Nano, a micro, the
Indica, the Vista, the Zest and the Bolt, which are compacts and the Indigo eCS and the
Manza, which are mid-sized, in the sedan category. We have expanded our passenger car
range with several variants and fuel options designed to suit various customer preferences.
Our Jaguar Land Rover brands have an established presence in the premium passenger car
category under the Jaguar brand name. There are four car lines currently manufactured under
the Jaguar brand name, including the F-TYPE two-seater sports car coupe and convertible
(including all-wheel drive derivatives) the XF sedan (including the Sportbrake and all-wheel
drive derivatives), the XJ saloon, and the new XE sports saloon, which commenced sales in
May 2015.

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 Utility Vehicles: We manufacture a range of Tata brand utility vehicles, including the
Sumo and the Safari, which are SUVs, the Xenon XT, a lifestyle pickup, the Tata Aria, a
crossover, and the Venture, a multipurpose utility vehicle. We offer two variants of the
Safari: the Dicor and the Storme. We also offer a variant of the Sumo, the Sumo Gold, and
launched the new Movus in May 2014, which is an entry level UV. There are six car lines
under the brands of Range Rover and Land Rover in the premium all-terrain vehicles
categories: the Range Rover, Range Rover Sport, including the Range Rover Sport SVR, the
Range Rover Evoque (available in 5-door and coupe versions), Land Rover Discovery,
including the Discovery 4 which features 7-seat capacity, the Discovery Sport and the
Defender, which will cease production in Fiscal 2016.

Light Commercial Vehicles: We manufacture a variety of light commercial

vehicles, including pickup trucks and small commercial vehicles. This includes the Tata Ace,
India’s first indigenously developed mini-truck, with a 0.75 ton payload with different fuel
options, the Super Ace, with a 1-ton payload, the Ace Zip, with a 0.6 ton payload, including a
CNG variant launched in Fiscal 2015, the Magic and the Magic Iris, including an electric
variant, both of which are passenger variants for commercial transportation developed on the
Tata Ace platform, and the Winger. In addition, we introduced a new generation of Ultra
LCV trucks, including the Ultra narrow cab, in Fiscal 2015. We also offer the City Ride and
Starbus ranges of buses.

Medium and Heavy Commercial Vehicles: We manufacture a variety of medium

and heavy commercial vehicles, which include trucks, tractors, buses, tippers, and multi-
axled vehicles, with GVWs (including payload) of between 8 tons and 49 tons. In addition,
through Tata Daewoo Commercial Vehicles Co. Ltd., or TDCV, we manufacture a wide
array of trucks ranging from 215 horsepower to 560 horsepower, including dump trucks,
tractor-trailers, mixers and cargo vehicles. Our Prima line of trucks is aimed at its customers

22
in India and South Korea, and we have extended the Prima line by offering Prima LX and
multi-axle truck variants. We expect to gradually export our Prima products to other countries
such as South Africa, Russia, the other South Asian Association for Regional Cooperation
countries, the Middle East and various countries in Africa. We also offer a range of buses,
which includes the Divo Coach, the Semi Deluxe Starbus Ultra Contract Bus and the new
Starbus Ultra.

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THEORITICAL FRAMEWORK

The effects of performance appraisal on employees are more than debatable. For
a long time the overall consensus, at least amongst scholars, was that performance appraisals,
generally, have a positive effect on employee performance - amongst other organizational
outcomes including productivity, citizenship behavior, satisfaction and engagement.
However, there are also conflicting sentiments, deeming them outdated, unjust, disruptive;
too simplistic, subjective or harsh.

There are three main theories that the effects of performance appraisals on employees are
hinged upon: Social Comparison Theory, Feedback Intervention Theory and Learning
Goal Orientations.

Social Comparison Theory

Social Comparison Theory suggests that when individuals judge their own
performance, they tend to compare themselves or their work to those around them, suggesting
that people are not so much concerned about their performance in an absolute sense, but how
it measures up in relation to relevant peers. Hence, performance appraisals are founded on the
belief that employees will improve their performance when faced with unfavourable
comparative information. This theory is problematic, which we will go onto discuss later .

Feedback Intervention Theory

Feedback Intervention Theory suggests that when confronted with a

discrepancy between what they wish to achieve and the feedback received, individuals are

24
strongly motivated to attain a higher level of performance. At least, that’s the part that
advocates of performance appraisals will tell you. First proposed by Kluger and DeNisi, FIT
is a hybrid theory, drawing from a number of other behavioral theories (e.g. control theory,
social-cognitive theory) to build a picture of how different types of feedback can be both
positively and negatively received and thus affect performance in conflicting ways.

Goal Orientations

Goal Orientations posit that there are three types of people in the workplace,
and likely the world. If we were transported into a sort of bureaucratic dystopian nightmare
(or fantasy, depending on your views), people would either be labelled LGO, PPGO or
PAGO.

The former are learning-goal orientated, view ability as malleable and desire to
develop the self by acquiring new skills and mastering new situations. Those with
performance-prove goal orientation (PPGO) are more concerned with demonstrating their
competence, seek and only work to be positively evaluated, and thus avoid tasks that pose a
risk of error. Despite being the only ones with a legitimate name, the PAGOs of society
(performance-avoidance goal orientation) strive only to avoid negative judgments from
others.

Whilst these theories can be used to promote the effects of performance

appraisals on employees, there is plenty of research seeking to explain the circumstances in
which they can have adverse effects on employees.

Know your audience

Kluger also suggested that individuals who have high self-efficacy are more likely to be
motivated to change their behavior, meaning feedback may be more effective for these
individuals. They also suggest that individuals who are anxious are more likely to experience
cognitive interference, meaning their attention will be taken away from the task, and
feedback is likely to be less effective.

25
Among the other personality variables that affect reaction to feedback are self-esteem (Ilgen
et al 1979), locus of control and altruism (Korsgaard et al 1994). Such findings led to the
belief that reactions to feedback, rather than the feedback itself, influence performance.

Keep it fair

Research has demonstrated that when procedures are perceived as just, reactions are
favourable, largely irrespective of the outcome. This is called the fair process effect and
indicates ‘the perceived fairness of decision-making processes and the degree to which they
are consistent, accurate, unbiased, and open to voice and input’ (Colquitt et al 2013).

Be Objective

Quantifying anything regarding human behavior is always tricky, you want to make sure your
system is not oversimplifying something that is actually rather complex.

For this reason, the uniform grading system, i.e. the five-point scale, is probably one of the
worst ways of measuring employee, or any human potential for that matter.

One study (Bartol et al, 2001) found that rating segmentation (that is, the number of
alternative appraisal categories available for rating employee performance) affect employees’
perception of fairness and resulted in higher self-efficacy. Moreover, negative responses were
associated with a forced distribution rating system used for administrative purposes,
especially when there was reduced variability in ratees’ task performance (Schleicher et al
2009).

Keep it positive

26
Research demonstrates that employees who receive feedback that focuses only on positive
aspects (such as the employee’s strength and accomplishments)perform significantly better
on the job four months later than employees who receive a traditional performance appraisal
interview (Budworth et al 2015).

The closer the knit the tighter the fit

LMX theory states that managers often have a special relationship with an inner circle of
trusted employees, to whom they give higher levels of responsibility, decision influence and
access to resources. Research shows that the closer the relationship of the rater to the ratee, or
quality of leader–member exchange is a strong predictor for the positive effects of
performance appraisal on employees(Elicker et al 2006).

This might mean you have to take more of a paternalistic, or humble approach to leading to
ensure you are maintaining close-knit relationships with your employees.

THEORETICAL ASPECTS OF PERFORMANCE APPRAISAL

PROCESS AND TOOLS IN CONTEMPORARY ORGANIZATIONS

The success of the organization in meeting the strategic objectives set in the long-
term depends on its ability to manage its workers’ performances and on its ability to ensure
that their measures of performance are commensurate with the organization’s needs. As a
result, the management of the organization’s performances became a strategic issue for the
organizations (Mello, 2011).

Key Words:

Performance Appraisal, Appraisal Process, Systems of performance appraisal,

Worker Appraisal, Process of Performance Appraisal, Motivation, Organizational Politics
The term ‘Performance Appraisal’ addresses a broad group of activities, the goal of which is
the improvement of the workers’ performances.

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 It focuses on ways to motivate workers to improve their performances. The goal of
the process of the management of performances is to improve performances, at first on the
level of the individual worker and eventually on the level of the organization (DeNisi &
Pritchard, 2006).

Campbell (1999) defines performance in the organization as a collection of behaviors, the

adoption of which is relevant to the achievement of the goals of the company or the
organization. The attainment of the organization’s goals, or in other words, effectiveness, is
the outcome of these behaviors.

According to Campbell (1999), the performance is composed of eight different

Factors :

1. Expertise in the performance of the tasks unique to the position.

2. Expertise in the performance of the tasks not unique to the position.

3. Expertise in both written and oral communication related to the position.

4. Investment of effort in work

5. Self-discipline

Performance Appraisal definitions.

According to DeNisi and Pritchard (2006), performance appraisal is an

isolated event that is formally supported by the organization, generally does not occur very
frequently (once or twice a year), when the organization declares clearly the criteria used in
this process. From a different perspective, performances appraisal is a process which
quantitative scores are given on the basis of the judgment of the workers’ performances

Process of performance appraisal. The process was intended to appraise the

worker’s past performances and the future potential of his performances. It means the rating
process. Murphy (2008) listed the reasons why the process of performance appraisal is based
on subjective judgment about the workers’ performances, despite the desire to create systems
of appraisal that will allow the examination of the workers’ performances in an objective
manner.

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 The term ‘work appraisal process’ from the researcher’s perspective is
that there is no engagement in objective measurement but in subjective appraisal, which is the
product of a human judgment process that always has a component of subjective
interpretation.

This interpretation is influenced by many factors, such as the manager’s 12

management style, quality of interpersonal relations between the manager and the worker,
desire to preserve and promote certain interests, organizational politics, organizational
climate, different influences on the appraiser’s part, personal relations, and other judgment
biases. The following figure presents the constellation of factors that may influence in the
worker appraisal process.

Judgment. In this process information is obtained about the worker’s functioning in his job
and the appraiser forms his appraisal from this. However, there are limitations in the human
judgment process and often there are cases in which the appraisal that was created does not
always reflect precisely the performance.

Organizational Politics as a significant element in Appraisal.

This part presents the topic of the organizational politics and the influence on the
political interests in organizations on the processes of performance appraisal. According to
Tziner and Rabenu (2011), in recent years there is increasing evidence that the lack of
accuracy in the performance appraisal derives from voluntary and intentional distortions by
the appraisers. For example, a review of appraisers, appraised people, and administrators of
the system for appraisal showed that most of the respondents in these groups felt that the
distortions pertain far more to the intentional lack of accuracy in the appraisal than cognitive
mistakes of distraction (Bernardin& Villanova, 1986).

According to empirical data, these intentional distortions of the appraisal occurred

because of the superiors’ lack of comfort in all that pertained to the system of appraisal and

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its results and they reflected the superiors’ conscious efforts to produce appraisals that would
achieve personal goals. These manipulative behaviors can be included under the title of
‘organizational politics’.

Organizational politics is an inseparable part of the organizational life that

addresses power, authority, and influence, when power is defined as the attempt to influence
others (Cobb, 1984) and the ability to recruit sources, energy, and information for a goal or
preferred strategy. There are more than a few cases in organizations in which managers do
not act according to recommendations that derive from the tool of human resources
development following ‘political’ interests or organizational politics

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DATA ANALYSIS AND INTERPRETATION

 The sample size of 30 was taken randomly which includes employees of various
departments of Tata MOTOR Eluru Showroom - Jasper Industries The collected
database been analyzed and interpreted.
 In graphical representation the sale was taken 0-30 representing percentage and
response of the respondents

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 1. Is there a formal appraisal system in your organization?

S. no Opinion No of respondent

1 Yes 30

2 No 0

No of respondent

Yes No

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2. How is your performance appraised- individually, in a team or both?

S. no Opinion No of respondent

1 Individually 10

2 In team 14

3 Both 6

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 No of respondent

Individually In team Both

3. Is the appraisal system able to show the areas in which a person needs
improvement?

S. no Opinion No of respondent

1 Yes 22

2 NO 8

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 NO of respondent

Yes NO

4. Performance appraisal helps you in.

S no Opinion No of respondent

1 Promotion 15

2 Career planning 9

3 Goal achievement 6

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 NO of respondent

Promotion Career planning Goal achivement

5. Do you feel that the rewards are given according to your performance?

S. no Opinion No of respondent

1 Yes 23

2 NO 7

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 No of respondent

Yes No

6. Are you satisfied with the current performance appraisal system?

S. no Opinion No of respondent

1 Yes 24

2 NO 6

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 No of respondent

Yes No

FINDINGS

1. Performance appraisal at IFFCO, New Delhi is done annually.

2. For the above mentioned appraisal, a self appraisal form is given to the staff
members, so that they can fill it. Simultaneously a form is given to their
colleagues to rate them. A rating is given to the employee after taking in

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 consideration the self appraisal form as well as the rating given by the staff
members.

3. Promotions and incentives are given to an employee according to his or her

performance rating.

4. At IFFCO, majority of the staff submits all the information regarding appraisal
well within time to their supervisors.

5. All officers agree that performance appraisal system helps them to perform
better.

SUGESSIONS

 The company should appraise the performance of the workers by giving them some
incentives, which would motivate them to work to their fullest capacity and to
encourage them to work more and show good and better results.

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  The method of the company should be changed periodically so that the employees
have no chance to complain for the method.

 The criteria decided upon which the performance has to be rated should not be fixed,
it should be changed from time to time.

 The standards of the rating should be very specific, clear and concise.

 There should be a feeling of team work in the organization.

 The system should be cost effective and it should suit the budget of the company.

CONCLUSION

TATA motors has been implementing Performance Appraisal which helpful in assessing the
performance and progress of an employee or a group of employees on a given job and his /
their potential for future development it applies appraisal & reward appraisal, reward, carrier
design, retention and employee welfare. quality circle in their organisation to motivate
employees.

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QUESTIONNAIRE

Q-1. Is there a formal appraisal system in your organization?

Yes-

No-

Q-2. Do you understand the basic objective of performance appraisal?

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 Fully-

Partially-

No-

Q-3. In your view does the performance appraisal system function fairly/equitably?

YES-

NO-

Q-4. How is your performance appraised- individually, in a team or both?

Individually-

In Team-

Q-5. Do you agree that the performance appraisal system adopted by the firm isable to gauge
the real performance of employee?

Fully agree-

Partially-

Not at all-

Q-6. Is the appraisal system able to show the areas in which a person needsimprovement?

YES-

NO-

Q-7. Is the appraisal system able to show the progess one has made in order tohis/her set
target?

YES-

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 PARTIALLY-

NO-

Q-8. Performance appraisal helps you in:-

PROMOTION –

CAREER PLANNING-

GOAL ACHIEVEMNT-

Q-9.Are you satisfied with the criteria adopted to appraise you?

YES-

NO-

Q-10. Is the performance appraisal system transparent?

YES-

NO-

BIBLIOGRAPHY

This project required a lot of literature survey before it can into this form. Following
references were made

Books

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Human Resource Management - VSP Rao

Human Resource Management - K Ashwathappa

WEBSITES

http://www.tatamotors.com/sustainability/CSR-11/pdf/defining-priorities.pdf

www.wikipedia.org

www.google.com

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