A

PROJECT ON

PERFORMANCE APPRAISAL

IN

Hero Moto Corp at K.L GUPTA, GAYA

(In Partial Fulfilment of the Degree of BBM)

Mirza Ghalib College, Magadh University, Gaya

Under Supervision of : Submitted By:

M KASHIF RAZA KHAN VIKASH PATHAK

DEPT. OF BUISNESS MANAGEMENT CLASS : B.B.M IIIRD

MIRZA GHALIB COLLEGE, GAYA CLASS ROLL : 51

MAGADH UNIVERSITY, BODHGAYA EXAM ROLL : ……………

REG. NO. : 1101259/11 SESSION : 2011-14

ACKNOWLEDGEMENT

This study is incomplete without proper expression of gratitude towards the

people who made their valuable contribution in the completion of the study.

This project has been completed with an intention to understand Performance

Appraisal Programme in Indian automobile Industry. The dimension of the

relevance of the project has been expanded and connected to Indian National

Productivity. I am thankful to all of the people who supported me with their

priceless help, guidance, responses and motivation.

I am deeply thankful to Mr. Sidharth Basir, the Manager of the K.L Gupta Hero

Moto Corp, Gaya, Mr Purnendu Saran, Network Manager and all other

organization members, who participated with their valuable guidance and

responses against the questionnaires, during the project.

I am truly thankful to my guide M. Kashif Raza Khan, Lecturer, Mirza Ghalib

College, M.U Gaya. I am also thankful to all my team members Md. Meraj Taj,

Vikash Pathak, Md.Mahtab Alam Khan, Rakesh Raushan, Haider khan,

Shahnwaz Alam. I am also thankful to all my friends who supported me

anyway, in the project.

We are indebted from the deepest core of our heart to H C B Human Capacity Building Institute for all the step by step training, guidance, extra ordinary Leadership & Management Training and Motivation. We are thankful that H C B has directed our efforts and potential to convert into quality performance and professional success.

I must acknowledge the immense gratitude of my parents who have been the

fountain of support, love and my existence itself.

I must also acknowledge that I assume myself a responsible National and

Global citizen and wish to contribute my part share to the growth and

development of the Nation and the Human society across the globe.

Md. Meraj Taj

B.B.M – 3rd

CONTENT

i. Acknowledgement

ii. Certificate from K.L Gupta Hero Moto Corp

iii. Guide Certificate

iv. Executive Summary

CHAPTER: 1 INTRODUCTION

1. Introduction

2. Introduction to Study

3. Importance Of Study

4. Introduction to Hero Moto Corp

5. Introduction to K.L Gupta, Gaya, Bihar

CHAPTER: 2 LITERATURE REVIEW

1. Introduction to Performance Appraisal

2. Importance of Performance Appraisal

3. Methods of Performance Appraisal

CHAPTER: 3 RESEARCH METHODOLOGY

1. Research Design

2. Research Process

3. Research Sampling

4. Data Collection

5. Research Limitations

CHAPTER: 4 FINDING & DATA INTERPRETATION

1. Findings

2. Conclusion

CHAPTER: 5 RECOMMENDATIONS & SUGGESTIONS

CHAPTER: 6 ANNEXURE

BIBLIOGRAPHY

PREFACE

This project is empirical presentation of “Performance Appraisal in K.L Gupta

HERO” Gaya”.

Performance appraisal occupies an important place in an organization. Today

almost in every business organization appraisal system is conducted with

different techniques to maintain the performance of an employee who is

working in an organization. Every employee wants to know that the effort

which he is giving to organization is valuable or not.

The organization uses various techniques to trace out the performance of

employees to utilize the best effort of an employee. They even conduct survey

with customer know over it.

This report is also based on the survey, which is conducted by our group

member (Md. Meraj Taj , Vikash Pathak , Md. Mahtab Alam Khan , Rakesh

Raushan , Haider Khan, and Shahnawaz Alam) through interview with

manager.

EXECUTIVE SUMMARY

The main objective of this project is to check the Appraisal System of

executives and the workers in an organization is using a correct method or not.

It was necessary to use the techniques of Performance Appraisal should be

marked in these segment. The Performance Appraisal mostly done in a

company of Hero Moto Corp. organization. The study of employees Appraisal

systems insights the behavior relating to the organization.

The first section of my report deals with a detailed company profile. It includes

the company’s history: its activities and operations, organizational structure,

etc. this section attempts to give detailed information about the company and

the nature of its functioning.

The second section deals with performance appraisal. In this section, a brief

conceptual explanation to performance appraisal is given. It contains the

definition, process and significance of performance appraisal.

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

the process of performance appraisal at Hero Moto corp. This section also

contains my findings, conclusions, suggestions and feedback.

The fourth and final section of this report consists of extra information that I

related to the main contents of the report. These annexure includes the

Questionnaire on the basis of which the primary data was collected and

research study was conducted.

CHAPTER: 1 INTRODUCTION

INTRODUCTION:

Performance appraisal represents one of the most complex areas facing

today’s managers when it comes to managing their employees. Many studies

have demonstrated an unusually large impact of the performance Increment

and the level of Motivation of workers, while the level of Motivation has an

impact on productivity and hence, also on performance of business

organizations. Unfortunately, in our region performance appraisal has not still

received the proper attention from neither scholars nor managers of various

businesses.

Introduction To The Study:

A recent report excerpt published in TIMES ASCENT, on 19 Feb 2014 about

research of TECHNOPAK’S VOCATIONAL EDUCATION & TRAINING (V.E.T)

Outlook 2014, discovers that India ranks among the lowest in terms of

productivity, within the Asian cohort. In this global context Indian Productivity

is low and this has relationship with employees’ Job commitment, Motivation

and Job Satisfaction.

Hence, Performance Appraisal is an important to K.L Gupta i.e. HERO MOTO

CORP, in one important automobile Industry, would certain offer the current

representation of performance appraisal of employees in Indian Business Set

up. We found it very important and relevant to work to know the performance

level of employees, with the purpose to understand the factors of appraisal.

Although the impact of performance appraisal is traverse Performance,

Productivity, Work Efficiency, Profitability and contribution to Nation Growth,

yet the research is limited to discover only the appraisal Level of Employees in

K.L Gupta.

To conduct this empirical study we developed questionnaire on this basis of

methods of performance appraisal are as follows:

1. 360 method

2. M.B.O

3. Cost Accounting

4. Confidential

The main aim of our study is to appraise that whether the performance

appraisal of an employee is successful in Indian context or not. If not then it is

important to provide a better system. For this purpose I critically examined the

performance appraisal activities of K. L. Gupta Hero Moto Corp Gaya, and its

impact on the employees who are working in the organization and we have to

observe that performance appraisal. So that the some suggestion and finding

can be analyzed.

To carry out the study at Hero Moto Corp, we framed the following objectives

1. Identification of the technique of performance appraisal applied and

followed in Hero Moto Corp.

2. Employee (Manager) attitude towards the present appraisal system.

3. Review of the current appraisal system in order to

i. Enhance Productivity

ii. Attain Global Standards

iii. Create Motivation

iv. Career Growth

4. To provide suggestions & recommendations from the study conducted

IMPORTANCE TO THE STUDY

1. As there was no same research work previously done on the Topic by

any student of Magadh University, it was important to do a research on

the same and come up with the actual scenario of performance

appraisal at K.L Gupta, representing performance appraisal in

automobile Industry across

2. In our region, in Bihar and the like states, majority of graduates tend to

prepare for managing profile, due to lack of enough Career

Opportunities Awareness. This is one of the reason that is why

westerners taunt that India only produce executives.. In this tendency, it

became more relevant and important for our Magadh, Bihar and the

Indian youth, to know what would the Performance Level, their total

Productivity and their contribution to the national Growth, after even

they all get into industry interface.

3. National Skills Development Corporation(NSDC), TECHNOPAK’S

VOCATIONAL EDUCATION & TRAINING (V.E.T), Research Team of TIMES

OF INDIA etc, all report similar type of dismal scenario that India ranks

among the lowest in terms of Productivity and India is working at half

Efficiency and half Productivity. In this context also involvement on

employees and performance of the employees has an important role

play to contribute to the organizational productivity as well as National

Productivity.

As the title suggest that this study is to check the appraising method of

employee working in organization. This has following importance:-

Identify skillful employees

Impact of employees in an organization

Applied techniques of appraisal for the employees

Analysis of Methods used at different levels of employees

Know the actual Performance Appraisal System for employees

Know the relationship between Top Management and Executive

INTRODUCTION TO HERO MOTOCORP LTD.

Hero Motorcorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world’s largest manufacturer of two - wheelers, based in India.

In 2001, the company achieved the coveted position of being the largest two-wheeler manufacturing company in India and also, the 'World No.1' two-wheeler company in terms of unit volume sales in a calendar year. Hero Motorcorp Ltd. continues to maintain this position till date. The story of Hero Honda began with a simple vision - the vision of a mobile and an empowered India, powered by its two wheelers. Hero Motorcorp Ltd., company's new identity, reflects its commitment towards providing world class mobility solutions with renewed focus on expanding company's footprint in the global arena Hero MotoCorp’s mission is to become a global enterprise fulfilling its customers' needs and aspirations for mobility, setting benchmarks in technology, styling and quality so that it converts its customers into its brand advocates. The company will provide an engaging environment for its people to perform to their true potential. It will continue its focus on value creation and enduring relationships with its partners. Hero MotoCorp’s key strategies are to build a robust product portfolio across categories, explore growth opportunities globally, continuously improve its operational efficiency, aggressively expand its reach to customers, continue to invest in brand building activities and ensure customer and shareholder

delight. The new Hero is rising and is poised to shine on the global arena. Company's

new identity "Hero MotoCorp Ltd." is truly reflective of its vision to strengthen

focus on mobility and technology and creating global footprint.

Building and promoting new brand identity will be central to all its initiatives,

utilizing every opportunity and leveraging its strong presence across sports,

entertainment and ground-level activation.

Hero MotoCorp two wheelers are manufactured across 3 globally

benchmarked manufacturing facilities. Two of these are based at Gurgaon and

Dharuhera which are located in the state of Haryana in northern India. The

third and the latest manufacturing plant are based at Haridwar, in the hill state

of Uttarakhand.

The Company's growth in the two wheeler market in India is the result of an

intrinsic ability to increase reach in new geographies and growth markets. Hero

MotoCorp’s extensive sales and service network now spans over to 6000

customer touch points. These comprise a mix of authorized dealerships,

service & spare parts outlets and dealer-appointed outlets across the country.

“Hero” is the brand name used by the Munjal brothers for their flagship company, Hero Cycles Ltd. A joint venture between the Hero Group and Honda Motor Company was established in 1984 as the Hero Honda Motors Limited at Dharuhera , India. Munjal family and Honda group both owned 26% stake in the Company.

During the 1980s, the company introduced motorcycles that were popular in India for their fuel economy and low cost. A popular advertising campaign based on the slogan 'Fill it – Shut it – Forget it' that emphasised the motorcycle's fuel efficiency helped the company grow at a double-digit pace since inception. In 2001, the company became the largest two-wheeler manufacturing company in India and globally. It maintains global industry leadership till date. The technology in the bikes of Hero Moto corp (earlier Hero Honda) for almost 26 years (1984–2010) has come from the Japanese counterpart Honda.

1956—Formation of Hero Cycles in Ludhiana(majestic auto limited)

1975—Hero Cycles becomes largest bicycle manufacturer in India.

1983—Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed Shareholders Agreement signed

1984—Hero Honda Motors Ltd. incorporated

1985—Hero Honda motorcycle CD 100 launched.

1989—Hero Honda motorcycle Sleek launched.

1991—Hero Honda motorcycle CD 100 SS launched.

1994 – Hero Honda motorcycle Splendor launched.

1997—Hero Honda motorcycle Street launched.

1999 – Hero Honda motorcycle CBZ launched.

2001 – Hero Honda motorcycle Passion and Hero Honda Joy launched.

2002—Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition launched.

2003—Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor plus, Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Karizma launched.

2004—Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle CBZ* launched.

2005—Hero MotoCorp Super Splendor, Hero Honda motorcycle CD Deluxe, Hero Honda motorcycle Glamour, Hero Honda motorcycle Achiever and Hero Honda Scooter Pleasure.

2007—New Models of Hero Honda motorcycle Splendor NXG, New Models of Hero Honda motorcycle CD Deluxe, New Models of Hero Honda motorcycle Passion Plus and Hero Honda motorcycle Hunk launched.

2008—new Models of Hero Honda motorcycles Pleasure, CBZ Xtreme,

Glamour, Glamour Fi and Hero Honda motorcycle Passion pro launched. 2009—New Models of Karizma: Karizma – ZMR and limited edition of Hunk

launched

New Hero 2010—new Models of Hero Honda motorcycle Splendor pro and Honda motorcycle Hunk and New Hero Honda Motorcycle Super Splendor launched.

2011—New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ Xtreme, Karizma launched. New licensing arrangement signed between Hero and Honda. In August Hero and Honda parted company, thus forming Hero Moto Corp and Honda moving out of the Hero Honda joint venture. In November, Hero launched its first ever Off Road Bike Named Hero "Impulse".

2012-New Models of Hero Moto corp Maestro the Masculine scooter and Ignitor the young generation bike are launched.

2013-Hero Moto Corp unveiled line-up of 15 updated products including Karizma R, ZMR, Xtreme, Pleasure, Splendor Pro, Splendor iSmart, HF Deluxe ECO, Hero Moto corp Super Splendor, Passion Pro and Xpro, Glamour and Glamour FI etc. It also introduced three new technologies- Engine Immobilizer in new Xtreme, Integrated Braking System (IBS) in new Pleasure and i3S (Idle Stop and Start System) in new Splendor iSmart

INTRODUCTION TO K.L GUPTA, GAYA

K.L Gupta is one of the leading names in the Automobiles Business in the state

of Bihar. It was established in 1987 at centre of Gaya city. It has 18 product of

Hero MotoCorp. It has obtained Authorised Dealership of Hero Moto Corp at

Gaya city. One comes across all popular products of Hero bikes at K.L GUPTA

Hero MotoCorp’s showroom at Gaya. It has 38 employees in showroom and

105 employees in workshop.

CHAPTER: 2 LITERATURE REVIEW

INTRODUCTION TO PERFORMANCE APPRAISAL

Performance appraisal is an important device for employees and management

to know what he or she has done in the current job and what they can improve

on. It also provides a way for management to improve their performance, their

effectiveness and the productivity of their staff.

It is a systematic and objective way of judging the relative worth or ability of an

employee in Performance of his/her task. It is one of the important functions

of Human Resource Management these days. Human Resource Management is

that area of management which deals with human being and there changing

behavior. It is the assessment of an individual’s performance in a systematic

way, the performance being measured against such factors like job knowledge,

quality and quantity of output, initiative, leadership, abilities, supervision,

OPINION OF OUR GROUP

“Performance Appraisal is an important tool for Business success as well as a great

individual success. It offers continuous control over progress towards individual and

organizational goals”. – MD.MERAJ TAJ

“Performance Appraisal is the technique of fair rating of the employees to evaluate

performance and potential for development of a group member and the

organization”. - VIKASH PATHAK

“Performance Appraisal is a systematic way to evaluate the skills, abilities,

knowledge, productivity, human relation etc in employee to perform his current job

well”. – RAKESH RAUSHAN

“Performance Appraisal is a technique to improve the efficiency of an organisation

by attempting the maximum efforts from individuals employed on it”.

-MAHTAB ALAM KHAN

“Performance Appraisal is concerned with determining the differences of

performance among the employees working in the organisation”.

- SHANAWAZ KHAN

“Performance Appraisal determines who shall receive merit increases, council

employees on their improvement, determines training needs, determines

promotability identifies those who should be transferred”.

- HAIDER KHAN

dependability, co-operation, judgment, versatility, health and the likes. This is

concerned with determining the performance among the employees working

in the organization. It is a powerful tool to calibrate, refine and reward the

performance of the employee. It helps to analyze his achievements and

evaluate his contribution towards the achievements of the overall

organizational goals as well as individual goal. “Performance Appraisal is

defined as the process of 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 consists of all formal procedures used in working

organizations and potential of employees by focusing the attention on

performance, performance appraisal goes to the heart of personnel

management and reflects the management's interest in the progress of the

employees.

MEANING OF PERFORMANCE APPRAISAL

It is concern with determining the performances among the employees

working in the organisation. The appraisal is done by individual immediate

superior. Thus it is continuous and scientific process of examination of the

strength and weakness of an employee in terms of his job. Everyone in the

organisation who rates other is also rated by his superior. Performance

appraisal determines who shall receive merit increase on their improvement,

determines training needs, determines promotion abilities, and identifies

those who should be transferred.

DEFINITION OF PERFORMANCE APPRAISAL

On the subject many author have defined performance appraisal according to

their view. Out of them some of the important definition has been discussed

here under:-

According to Beach, “Performance Appraisal is the systematic evaluation of

the individual with regard to his or her performance on the job and his

potential for development”.

According to Flippo, “Performance Appraisal is the systematic, periodic and

impartial rating of an employee’s excellence in matter pertaining to his present

job and his potential for a better job”.

According to Dole Yoder, “Performance Appraisal refers to all formal

procedures used in working organisations to evaluate personalities and

contributions and potential of group members”.

According to Heyel, “Performance Appraisal is the process of evaluating the

performance and qualifications of the employees in terms of requirements of

the job for which he is employed for purposes of administration including

placement selection for promotions providing financial rewards and other

actions which require differential treatment among the members of the group

as distinguished from actions affecting all member equally”

CHARECTERISTICS OF PERFORMANCE APPRAISAL

Performance appraisal is a continuous process.

It is a systematic evaluation of an employee in terms of his job.

It is scientific and objective study.

Formal procedure is used in the study of performance appraisal.

It is an ongoing and continuous process where in the evaluation are

arranged periodically according to a definite plan.

The main purpose of performance appraisal is to secure information,

necessary for making objective and correct decision of an employee’s

training and development.

STEPS OF PERFORMANCE APPRAISAL

There are few steps or component to appraise the performance of an

employee.

Figure 1: - Steps Of Performance Appraisal

1. Set Standard: - As first step standard performance for all employees or

established in terms of productivity quality, quantity, etc. Employees try to

achieve the target every month. They know what to do how much to do and

within time to do.

2. Measure Actual Performance: - Then actual performance of each

individual employee is measured. Employees may vary to their performance

as per their capabilities.

3. Compare Actual Standard: - The actual performance is compared with

the standard performance to understand the difference, whether less than

the target, equal to the standard / target or more than the standard.

TAKE CORRECTIVE MEASURES

FEEDBACK

MANAGEMENT EMPLOYEE

COMPARE ACTUAL STANDARD

MEASURE ACTUAL PERFORMANCE

SET STANDARD

4. Feedback: - Performance feedback is shared with employee so that they

may know where they actually stand. Performance is appreciated, problems

are discussed and training needs are analyzed.

Feedback is also forwarded to the H.R department in order to

take decisions regarding compensation, training, transfer or promotion.

5. Take Corrective Measure: - Final step of performance appraisal is to

take action to solve the problem. Counseling, training, transfer, promotion,

demotion or termination decision is taken, as per the requirement.

IMPORTANCE OF PERFORMANCE APPRAISAL

Performance Appraisal determines who shall receive merit increase counsels

employees on their improvement determines training needs, determines

training needs, determines promotion abilities, Identifies those who shall be

transferred. Following are the some importance of performance appraisal:-

Figure 2:- Importance of Performance Appraisal

IMPORTANCE OF

PERFORMANCE APPRAISAL

PERFORMANCE FEEDBACK

TRAINING AND DEVELOPMENT

VALIDATING SELECTION PROCESS

PROMOTION

TRANSFERLAY OFF

COMPENSATION

HUMAN RESOURCE PLANNING

CARREER DEVELOPMENT

1. Performance Feedback: - Employees are interested to know how

well they are doing and they can perform better. They want feedback to

improvement, promotion and incentives. Feedback give them

satisfaction and motivation.

2. Training And Development: - On the basis of performance appraisal,

decisions are taken for providing training and development as per the

requirement of employees.

3. Validating Selection Process: - Performance Appraisal is a means to

validate internal training, promotion and external hiring. This helps find

out the suitable tools of recruitment and selection.

4. Promotion: - performance appraisal enables to know which employee

should be given promotion.

5. Transfers: - transfer often involves change in job responsibilities. So

this is important to know who can take perfect responsibilities.

6. Lay off: - performance appraisal helps in recognition of the poorest

performer to lie off.

7. Compensation: - On the basis of performance appraisal compensation

such as salary increment, incentive etc is decided.

8. Human Resource Planning: - performance appraisal helps recognize

employee to be promoted, transferred, laid off or terminated.

Management decides future employment plan on the basis of this data

knowledge.

9. Career Development: - This enable manger to coach and counsels

employee in their career development.

METHODS OF PERFORMANCE APPRAISAL

There are many methods of performance appraisal into two types:-

Figure 3:- Methods of Performance Appraisal

METHODS OF PERFORMANCE

APPRAISAL

TRADITIONAL METHODS

•RANKING SYSTEM

•GRADING SYSTEM

•PAIR COMPARISON

•CRITICAL INCIDENT

•FORCED CHOICE

•FORCED DISTRIBUTION

•GRAPHIC RATING SCALE

•CONFIDENTIAL REPORT

•CHECKLIST

MODERN METHODS

•M.B.O

•360` METHOD

•COST ACCOUNTING

•ASSESSMENT CENTRE

•B.A.R.S

A. Traditional Methods

i. Ranking system- According to Dessler (2009), ranking method is a

method is a system in which employees are ranked from best to worst

on a particular, until all are ranked.

ii. Grading system – In this system of performance appraisal employees

are evaluated as per different grades like Grade-A, Grade-B, and Grade-

C ---------etc.

iii. Pair comparison method- In this method employees are compared

with each other in terms of performance and the employee who gets

maximum times rank is considered the best employee.

iv. Critical Incident Method- This techniques was developed by “Fitts

and Jones” in 1947 for classifying pilot error experiences in reading and

interpreting aircraft instruments.

According to Dessler, critical incident method is keeping a record of

uncommonly good or undesirable employee’s work behaviour and

renewing it with standard.

v. Graphical Rating Scale- This was developed by Peterson, 1922.

According to Deshler (2011), “Graphic Rating Scale is a scale that lists a

number of traits and rated by identifying the score that best describes

his level of performance for each trait”.

Example:-

S.NO TRAITS POOR GOOD SOMETIMES VERYGOOD

ALWAYS V.GOOD

1. Reliability 2. Consistency

3. Practicality

4. Behaviour relationship

vi. Confidential Report- A traditional method used in public sector

companies which is maintained annually. This performance appraisal

report is prepared confidentially and is forwarded to higher

management first. Then, if in case of negative appraisal injury is

established and employee is inquired to show cause.

vii. Checklist- In this a checklist of statements of traits of employee in

terms of yes/no based questions is prepared whether the performer has

these traits or not. Here the ratter only does reporting or checking. H.R

department does the actual evaluation.

e.g.:- 1. He is regular yes no

2. Good job knowledge yes no

3. Maintain relationship yes no

4. Achieves target yes no

5. Team skills (good) yes no

viii. Forced choice method – The series of statements arrangements in the

blocks of more are given and the ratter indices which statements is true or

false. The rater is forced to make a choice.

ix. Forced Distribution Method – A list of rating scale is developed and all

the employees are evaluated on those skills only. The rater is forced to the

employees on all the points on the scale evaluate.

B. Modern Method

i. Management By Objective (M.B.O) – This method propounded by

“Peter F Drucker”. In this method Performance is rated by the

achievement of objective, stated by the management. Super Goals,

Organisational Goals are declared and individual goals are declared and

individual goals are identified.

In M.B.O, organisational goals are identified Standard Performance is

established, Actual is measured, compared and feedback is shared with

employees. Corrective measures are finally taken as per the

requirements.

Figure: - Management By Objective

STEPS OF MANAGEMENT BY OBJECTIVE

1. Goal Setting – Goals are set for each individual. The superior and

subordinates jointly establish these objectives.

2. Performance Standard- Standard is set for the employees as per

time limit. When employees start performing they came to know what is

to be done, what has been done and what remains to be done. They

understand their targets clearly.

3. Measure Actual Value- Actual achieved target is measured to

understand performance.

4. Comparison- The actual performance is compared with the target. This

enables find out problem and determine straining needs.

CORRECTIVE MEASURES

FEEDBACK

MANGEMENT EMPLOYEE

COMPARISON

MEASURE ACTUAL

SET STANDARD

GOAL SETTING

5. Feedback- If the actual performance deviates from the standards, the

corrective measures are initiated. Periodic reviews are conducted in a

constructive rather than punitive manner. Feedback is shared and

counselling, training, transfer, promotion etc take place as required.

ii. 360 Performance Appraisal- This method was first developed and

formally used by General Company of U.S.A in 1992. This is feedback

based method which is used to ascertain training and development

needs rather than pay increase.

In 360 Appraisal performance information such as employees, skills,

abilities and behaviours are called from all around the employee, i.e.

1. Superior

2. Subordinate

3. Peers

4. Customer

Figure: - 360 Appraisal System

PEERS SUPERIOR

SUBORDINATECUSTOMER

As these participant appraises provides information or feedback on an

employee by completing survey questionnaires designed for the purpose.

All the information is then completed through the computerised system to

prepare individual reports.

iii. Cost Accounting Appraisal- This method evaluates an employee’s

performance from the monetary benefits the employee yields to the

organisation derived from the employee.

The costs on employee are as follows:-

a. Cost on requirement

b. Cost on training

c. Cost on the maintenance

d. Cost on compensating the employee

Factors

I. Unit wise average value of product.

II. Quality of the product produced by the employee’s.

III. Overhead cost incurred.

IV. Accidents, Damage, Errors, Spoilage, and Wastage caused through

unusual wear and tear.

V. Human relationship with other.

VI. Cost of the time the supervisor spent in appraising the employee.

iv. Assessment Centre- This method was introduced in 1930 in Germany

to appraise army to business arena in 1960. In India it is a recent origin.

An assessment centre is a central location where manager supported by

psychologists and H.R specialist for 2-3 days, by involving them in

various simulated situations

Process of Assessment Centre Method 1. Simulation Participated by managers at one central place

2. Continuous Observation by senior managers, psychologist and H.R

specialists for 2-3 days

3. Assesses are asked to participate in Basket exercises , work groups ,

simulations and role playing which are essential for successful

performance on job

4. Assesses behaviour are recorded by raters and they meet together to

discuss their collected data and observation

5. On the basis of observation assessment are made them

6. At the end of the process feedback in terms of strengths and weakness is

also provided to the assesser

Figure: - Assessment Centre Method

At the end of the process feedback in terms of strengths and weakness is also provided to the assesser

On the basis of observation assessment are made them

Assesses behaviour are recorded by raters and they meet together to discuss their collected data and observation

Assesses are asked to participate in Basket exercises , work groups , simulations and role playing which are essential for sucessful performance on job

Continous Observation by senior managers,psychologist and H.R specialists for 2-3 days

Simulation Participated by managers at one central place

v. Behaviourally Anchored Rating Scale (B.A.R.S) - This method was

developed by south and Kendall to provide a better method of rating

employees. This is different from standard rating scales. This focussed

on behaviours that are considered important for job task.

COMPONENTS

Behaviour- Effective and Ineffective Behaviour related to job are collected

are developed.

Expert Group- A Group of Subject Matter Experts (S.M.E) is asked to define

the expected behaviour on the job. So that their performing behaviour can be

compared with the defined Behaviour.

Scale- Usually a 5-9 point scale is developed in order to measure the

effectiveness of the Job Behaviour.

Rater- On the defined behaviour and scale a ratter does Appraisal. In B.A.R.S

method each and every individual is assessed on each defined behaviour. All

scales are applied to measure the effectiveness of behaviour.

FIGURE: B.A.R.S

BEHAVIOUR

EXPERT GROUP

SCALE

RATER

ADVANTAGE OF PERFORMANCE APPRAISAL

Measures an employee’s performance.

Helps in objective declaration and its achievement.

Motivates the employees.

Facilitates the requirement of training.

Helps in identification of personal weakness and strengths.

Helps in personal and organisational career planning.

Provides and creates leadership skills.

Improve a good relationship between organisational employees and

reporting manager.

Helps in resolving misunderstanding.

It influence and increase potential of an employee to perform in a better

manner.

It helps in personal or organisational decision making.

It helps in decision making for which employee is able to promoted.

It helps in decision making such as to provide compensation, to facilitate

training, promotion and development of or organisation.

It helps in taking an organisational responsibility.

It helps in development of negotiations skill.

It helps in improvement of communication skill.

Complete a written evaluation that rates performance according to the

stipulated criteria.

Meet the employee to discuss the evaluation and suggest means of

improving performance.

CHAPTER: 3 RESEARCH METHODOLOGY

RESEARCH METHODOLOGY Research in common parlance refers to search for knowledge. Redman and

Mory define research as a “Systematized effort to gain new knowledge.

Research is an academic activity and such the term should be used in technical

sense. According to Clifford Woody, Research comprises defining and

redefining problem, formulating hypothesis or suggested solutions; collecting,

organizing and evaluating data; making deductions and research conclusions;

and at last carefully testing the conclusions to determine whether they fit the

formulating hypothesis. Research is thus an original contribution to the existing

stock of knowledge making for its advertisement. It is pursuit of truth with the

help of study, observation, comparison and experiment. In short the search for

knowledge through objective and systematic method of finding solution to

problem is research.

RESEARCH DESIGN

A Research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the Research purpose with economy in procedure. In fact the Research design is the conceptual structure within which Research is conducted: it constitutes the blueprint for the collection measurement and analysis of data. It must be able to define clearly what they want to measure and must find adequate methods for measuring it along with a clear cut definition of population wants to study. Since the aim is to obtain complete and accurate information in these studies, the procedure to be used must be carefully planned. The research design must make enough provision for protection against bias and must maximize reliability with due concern for the economical completion of the search study.

Research design is a conceptual structured within which research is conducted. It constitutes the blue print for the collection, measurement and analysis of data. Research design is must to focus attention on the following:

Formulating the objective of the study

Designing method of data collection

Selecting the sample

Data collection

Processing and analyzing the data

Finding and Descriptions

Descriptive research is adopted for this study. It includes surveys and fact

finding enquiries of different kinds. The major purpose of descriptive research is description of the state affairs as it exists at present. The main characteristic of this method is that the 20 researcher has no control over the variables. He can only report what has happened or what is happened. The major purpose of Descriptive research is description of the state of affairs, as it exists at present.

Descriptive research concerns a univariate question in which we ask about or state something about the size, form, distribution, or existence of a variable.

The main characteristics of this method are that the researcher has no control over the variables; he can only report what has happened or what is happening. Descriptive Research also includes attempts by researcher to discover causes even when they cannot control the variable

RESEARCH SAMPLING

The Study is primarily based on the primary data collected through

Questionnaire and interview from Hero Moto Corp. Ltd. (K.L Gupta, Gaya)

Manager and Executives.

SAMPLING PLAN

Sample Area : Magadh

Sample Place : K .L Gupta, Gaya

Duration : 3 week

DATA COLLECTION METHOD

For achieving the specific objectives of this study, data were gathered from

both primary and secondary sources.

Primary Data – The instrument used to collect primary data is through questionnaire from the Manager and Executive. It gives first hand information to the researcher. In this study, a questionnaire has been prepared with a view to analyze the work

Direct conversation with the respective Manager and Executive of the Departments.

Face to face conversation with the executives.

Employee’s opinion collected through Questions.

Observation of activities at organisations.

Secondary Data –

Various Records of the company.

Website of Hero Moto Corp. Ltd.

Different types of system information. Daily Performance Appraisal form of company.

Customer feedback form for knowing the response of customer in respect of employee and organisation.

RESEARCH TOOLS

1. Questionnaire- The questionnaire is structured in two different forms.

Some are partly structured while some are partly unstructured. Some are opening ended while some are close ended. Structured Questionnaire is selected as the tool for data collection, which included a set of various types of Questions concerning different aspects of the subject for the study. Several types of Questions were included in the Questionnaire such as Open Ended Questions, Dichotomous and Multiple Choice questions.

2. Interview- Managers and Executives were interviewed by the

researchers. With the help of above questionnaire and through their opinion about performance appraisal adopted by the company and the technique for appraising employees. Following ideas are revealed during the interview of Manager and Executive

- Performance is measured according to the number of bike

sales in a week. - Enquiry maintenance is necessary for all employees because

one enquiry means one customer and one enquiry lapse means one customer lapse.

- Employees are sent for campaign in city for promoting sale for enhancing the capability of employee.

- Top level checks the employees through pertaining the employee confidence because if he has a confidence he is liable to give higher output.

3. Survey- The survey on the topic “Performance Appraisal towards Hero

Moto Corp Ltd. towards K.L Gupta employees” was carried by personal

interview with Managers and Executives individually by our group

member.

Some of the Major points were asked in terms of getting the data are

as follow:-

- Method uses to appraise employee.

- Techniques used for top level and middle level.

- No. of times Performance Appraisal conducted.

- Appraisal conducted in which hour.

- Responsible for conducting appraisal program.

- Inform their employee about appraisal program.

- Incentives are given on the basis of performance appraisal.

- Factors considered for appraising employee.

- Appraisal help in improving employees job performance.

4. Research Advantages :-

a. Knowing about E-commerce which are uses for understanding the

customer about the product.

b. Attendant gives the information about the product.

c. V Lead techniques are used for appraising employees.

d. Rapport Building through the Hero Good life.

e. Make loyalty through gifts and better servicing.

f. We have knowing beyond our own topic.

5. Research Limitation :-

a. Limited Management technique

b. Does not have Effective Time Management

c. Lack of knowledge about performance appraisal program

d. Distracted with the topic of performance appraisal

CHAPTER: 5 DATA FINDING AND ANALYSIS

DATA FINDING AND ANALYSIS

Analysis-1: - In total 144 Employees are working here and the following

type of Appraisal systems are conducted at different levels of employees in K.L

Gupta, Gaya (Hero Moto Corp.)

TOTAL NUMBER OF EMLPOYEES

NUMBERS OF EMPLOYEES

LEVELS

APPLIED METHOD

144 EMPLOYEES

34

SALES EXECUTIVE

1.360 APPRAISAL 2. M.B.O 3.COST ACCOUNTING

MECHANICAL

6

SUPERVISOR

1.M.B.O 2.360 APPRAISAL

2

HEAD MECHANIC 1.M.B.O 2.360 Appraisal

97

TECHNICIAN

1.M.B.O 2.360 Appraisal

FINANCIAL

2

FINANCE EXECUTIVE

1.360 Appraisal 2.M.B.O 3.Cost Accounting

MANAGEMENT

3

MANAGER

1.M.B.O 2.360 Appraisal 3.Confidential

2

TEAM LEADER

1.M.B.O 2.360 Appraisal 3.Confidential

Graphical Representation of number of employee working at

K.L Gupta(Hero Moto Corp Ltd) :

Interpretation:-

In the pie chart diagram, we can see that, the total no of employees (i.e.

144=100%) are working in an Organization Hero Moto Corp at K.L Gupta. In

this organization, the methods 360 appraisal system, management by objective

and cost accounting are applied on Sales Executive (i.e. 24% of total

employees). In Mechanical department there is 73% of total employees are

working, the methods 360 appraisal system, and management by objective and

are applied on them. The methods applied on those employees who are

working in Finance department(i.e. 1% of total employees) are management objective,360 appraisal system and cost accounting while the performance

appraisal methods such as management by objective, 360 appraisal and

confidential are applied on Top Level of Management ( D.S.M and N.

MANAGER) i.e. 2% of total employees.

24%

73%

1% 2%

NUMBER OF EMPLOYEES IN %(144)

SALES EXECUTIVE

MECHANICAL

FINANCIAL

TOP MANAGEMENT

1. Bar Diagrammatic Representation of methods applied at K.L

Gupta employees :

Interpretation :-

In this bar diagram showing the methods adopted by HERO MOTO CORP AT K.L

GUPTA at different levels in which we have seen that M.B.O and 360 Appraisal

are used in all the levels, while cost accounting are used for sales executive

and confidential methods are used for management body .

managementby objective cost

accounting 360 appraisalsystem confidential

23.61%23.61%

23.61%

2.08%

2.08%2.08%

1.40%1.40%

1.40%

72.91%72.91% 72.91%

APPLIED METHODS

sales executive top management finance mechanical

ANALYSIS 2: Three types of Performance Appraisal Methods are adopted

for the appraisal of sales executive

NUMBER OF EMPLOYEES APPLIED METHOD NUMBER OF EMPLOYEE IN PERCENTAGE

34

MANAGEMENT BY OBJECTIVE 23.61%

360 Appraisal System

COST ACCOUNTING

DIGRAMATIC REPRESENTATION OF SALES EXECUTIVE:

Interpretation: -In this diagram we can see that, the performance appraisal

methods applied on sales executive (i.e.23.61%) in HERO MOTO CORP (K.L

GUPTA) are Management by Objective, 360 Appraisal method and Cost

Accounting.

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

M.B.O 360 COST ACCOUNTING

SALES EXECUTIVE

SALES EXECUTIVE

Analysis – 3: Different methods are used for mechanical department in

K.L Gupta, Gaya

Number of Employee

Mechanical

105

6

Supervisor

1.M.B.O 2.360 APPRAISAL

2

Head Mechanic

1.M.B.O 2.360 APPRAISAL

97

Technician

1.M.B.O 2.360 APPRAISAL

DIAGRAMATIC REPRESENTATION OF MECHANICAL DEPARTMENT:

Interpretation:-

In this diagram, we have analyzed that performance appraisal methods which

are used in mechanical departments as M.B.O and 360 Appraisal used for

Supervisor, Head Mechanic and Technician.

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

M.B.O 360

SUPERVISOR

HEAD MECHANIC

TECHNICIAN

Analysis 4:- Two methods are used for finance department to

appraise the Employees.

NUMBER OF EMPLOYEES

FINANCE EXECUTIVE

2

360 APPRAISAL SYSTEM

1.40%

M.B.O

DIAGRAMATIC REPRESANTION OF FINANCE DEPARTMENT:

INTERPRETATION: In this graph we can see that in the finance department

of HERO MOTO CORP in K.L GUPTA. The performance appraisal systems are

applied as M.B.O and 360 Appraisal systems.

1.40% 1.40% 1.40%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

360 APPRAISAL M.B.O COST ACCOUNTING

FINANCE

FINANCE

ANALYSIS 5: Three methods are used for top level management for

appraisal

NUMBER OF EMPLOYEES METHODS APPLIED NAUMBER OF EMPLOYEES IN PERCENTAGE

4

CONFIDENCIAL 2.08% M.B.O

360

GRAPHICAL REPRESENTATION OF TOP MANEGEMENT:

INTERPETATION: In this graphical representation, we can see that, at top

level of management there are 4 employees working. The methods applied on

these employees are Confidential, M.B.O and 360.

0.00%

0.50%

1.00%

1.50%

2.00%

2.50%

CONFIDENTIAL M.B.O 360

TOP MANEGEMENT

TOP MANEGEMENT

CHAPTER: 5 RECOMMENDATION AND SUGGESTION

1. Training appraisers are essential for achieving better results with

performance appraisal. The training should be designed to improve

appraiser`s capabilities to; observe, conduct constructive feedback,

listen, support, set objective and ask appropriate questions. Some

benefits that can be achieved by appraiser`s training are as:

Improve the understanding of the system, the forms and technology

to be applied.

Increase accuracy and reduce common judgment errors.

Enhance appraiser`s self confidence about his rating skills and

improve the skill level through practice and feedback.

2. An organization`s leadership has the responsibility to develop positive

culture to facilitate the acceptance of performance appraisal among the

manager and their employees.

3. For the interaction between manager and employees and for the

betterment of the organization an effective communication should be

maintained. 4. The problem of unequal standards can be minimized by ensuring that

the appraisal criteria are job oriented, communicating performance

expectations to the employees before the appraisal review.

5. Maintain proper Image Management.

6. For the development and improvement of performance of employees

performance appraisal program must be included in the organization.

7. Performance appraisal system enhances the capabilities of employee to

perform effectively.

8. Employees who are working in an organization taking their responsibility

effectively or not analyzed by the management through the

performance appraisal system.

9. Performance appraisal system also enhances the skill of time

management and resource optimization.

OTHER SUGGESTIONS FOR

K.L GUPTA (HERO MOTO CORP), Gaya

1. Sitting arrangement should be maximum for visiting customers.

2. Follow the image management.

3. Attention toward the customer.

4. When problems of vehicle are not mentioned by the superior. Such

problems are just burden to the mechanics so take care.

5. Maximize the parking zone.

6. Cabin should be provided to each manager separately for safety and

confidentiality

7. Employees should take their own responsibility of work.

8. Number of security personnel must increase

9. Follow the proper management and professional skills

10. Maximize the work efficiency of each employee

11. Performance appraisal system must be adopted for the enhancement of

work efficiency, productivity, leadership capability, handling the

misunderstanding, Developing training programmes.

OUR LEARNING OPPORTUNITIES

1. To take responsibility of work.

2. Understand the corporate culture.

3. How to convince the costumer.

4. How to regard the costumer and to take customer feedback.

5. How to develop our negotiation skill and collect the information

through the survey.

6. Improvement in communication skill.

7. Importance of meeting and it`s procedure.

8. Report the manger after accumulation of the task of work.

9. Time management skill developed.

10. We have learnt importance of job satisfaction, employability skill.

CONCLUSION

After having the analysis of the data, we have known that Performance

Appraisal in K.L Gupta, Gaya (Hero Moto Corp) is not doing on any fixed time.

We also here know that Performance Appraisal is only done for promotion of

any employee which is done in a year. Performance Appraisal in Hero Moto

Corp is satisfactory for its effective management and evaluation of staff.

Appraisals here are helping individuals to develop, improve organisational

performance, and feed into business planning. Performance Appraisal enable

Management in Monitoring of standards, Agreeing expectations and

objectives, and Delegation of responsibilities and Tasks. Here we have also

seen that all the Executives are given targets and according to that target they

have to work and through this they are appraised and get Incentives. We also

understand that to give effective result is a only due to the confidence of the

employee for the better result in an organisation.

Ideally in the present day scenario, Appraisal should be done, and it should be

done on weekly as well as monthly taking the views of all the concerned

parties who have some bearing on the employees. But, since a change in the

system is required, it cannot be a Drastic one. It would be gradual and a

change in the mindset of both the employees and the Head is required.

ANEXXURE

PROJECT ON PERFORMANCE APPRAISAL AT HERO MOTOCORP

K.L GUPTA, GAYA

Name- …………………………………………………………

Designation/post-…………………………………………

Work experience- ………………………………………….

QUESTIONNAIRE

Q.1 which performance appraisal method do you use in your organization?

(a) Management by objective (b) 360 appraisal system

(C) cost accounting (d) …………………………………

Q.2 Which method do you use for appraisal of –

Manager- ………………………………..

Executive- ……………………………….

Q.3 How many times of performance appraisal system is conducted in your

organization?

(a) Once a year (b) twice a year

(c) Monthly (d) no specific time

Q.4 when the performance appraisal is conducted?

(a) During working hour (b) During non working hour

(c) During recess (d) All of them

Or any other

………………………………………………………………………………………………………………………

………………………………………………………………………………………………………………………

Q.5 who is responsible for conducting performance appraisal program?

(a) Superior (b) Peers

(c) Customer (d) All

Q.6 Do you inform your employees while performance appraisal program

me?

(a) Always (b) Sometimes

(c) Never (d) Partially

Q.7 Do you think Incentives are given strictly on the basis of performance

appraisal?

(a) Usually (b) Sometimes

(c) Almost (d) Rarely

Q.8 Performance appraisal of the employees is conducted by considering and

evaluating which of the following factor?

(a) Communication skill (b) convincing nature

(c) Product knowledge (d) confidence

Q.9 Do you think Performance Appraisal help in improving employees job

performance?

(a) Yes (b) No

Q.10 Is performance appraisal system reviewed and updated now and then?

(a) Frequently (b) Occasionally

(c) Never (d) All of them

Q.11 Other than performance appraisal does you provides employees with

formal feedback for performance improvement?

(a) Frequently (b) occasionally

(c) Never (d) always

Q.12 Are the raters involved while appraising employee?

(a) Highly involved (b) Less involved

(c) Not involved (d) partially

Q.13 What is the reason for conducting performance appraisal in your

organization?

(a) Identify motivating method (b) Decide compensation

(c) Identifying barriers of performance (d) Analyzing training needs

Q.14 Rate your appraisal program?

(a) Reliable (b) Effective

(c) Accurate (d) Motivating

THANKS FOR YOUR CO OPERATION

BIBLIOGRAPHY

1. Human Resource Development Book by S.S KHANKA.

2. Human Resource Development notes of Mirza Ghalib College.

3. Human Resource Development notes of H.C.B.

4. Business Today, Business World .

5. Website of Hero Moto corp. Ltd

6. Wikipedia

7. Times Ascent