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 PATHAKDEPT. OF BUISNESS MANAGEMENT CLASS : B.B.M IIIRDMIRZA GHALIB COLLEGE, GAYA CLASS ROLL : 51MAGADH 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. Acknowledgementii. Certificate from K.L Gupta Hero Moto Corpiii. Guide Certificateiv. Executive Summary

CHAPTER: 1 INTRODUCTION

1. Introduction2. Introduction to Study3. Importance Of Study4. Introduction to Hero Moto Corp5. Introduction to K.L Gupta, Gaya, Bihar

CHAPTER: 2 LITERATURE REVIEW

1. Introduction to Performance Appraisal2. Importance of Performance Appraisal3. Methods of Performance Appraisal

CHAPTER: 3 RESEARCH METHODOLOGY

1. Research Design2. Research Process3. Research Sampling4. Data Collection 5. Research Limitations

CHAPTER: 4 FINDING & DATA INTERPRETATION

1. Findings2. 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 method2. M.B.O3. Cost Accounting4. 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 Productivityii. Attain Global Standards

iii. Create Motivationiv. 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.

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

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, 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 APPRAISALIt 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.

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

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

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. Reliability2. Consistency3. 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.

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

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 trainingc. Cost on the maintenanced. 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 Method1. Simulation Participated by managers at one central place2. 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 them6. At the end of the process feedback in terms of strengths and weakness is

also provided to the assesser

Figure: - Assessment Centre Method

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

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 techniqueb. Does not have Effective Time Managementc. Lack of knowledge about performance appraisal programd. 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

144EMPLOYEES

34 SALES EXECUTIVE1.360 APPRAISAL2. M.B.O3.COST ACCOUNTING

MECHANICAL

6 SUPERVISOR1.M.B.O2.360 APPRAISAL

2

HEAD MECHANIC 1.M.B.O2.360 Appraisal

97 TECHNICIAN1.M.B.O2.360 Appraisal

FINANCIAL

2

FINANCE EXECUTIVE

1.360 Appraisal2.M.B.O3.Cost Accounting

MANAGEMENT

3 MANAGER1.M.B.O2.360 Appraisal3.Confidential

2 TEAM LEADER

1.M.B.O2.360 Appraisal3.Confidential

Graphical Representation of number of employee working at K.L Gupta(Hero Moto Corp Ltd) :

24%

73%

1%

2%

NUMBER OF EMPLOYEES IN %(144)

SALES EXECUTIVEMECHANICALFINANCIALTOP MANAGEMENT

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.

1. Bar Diagrammatic Representation of methods applied at K.L Gupta employees :

manage

ment b

y objec

tive

cost acco

unting

360 apprai

sal sy

stem

confidential

23.61%23.61%

23.61%

0.0208

0.02080.0208

1.40%1.40%

1.40%

0.7291000000000010.7291000000000010.729100000000001

APPLIED METHODS

sales executive top management finance mechanical

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 .

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

34MANAGEMENT BY OBJECTIVE

23.61%360 Appraisal SystemCOST ACCOUNTING

DIGRAMATIC REPRESENTATION OF SALES EXECUTIVE:

M.B.O 360 COST ACCOUNTING0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

SALES EXECUTIVE

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.

Analysis – 3: Different methods are used for mechanical department in K.L Gupta, Gaya

Number of Employee

Mechanical

105

6

Supervisor

1.M.B.O2.360 APPRAISAL

2 Head Mechanic

1.M.B.O2.360 APPRAISAL

97

Technician1.M.B.O2.360 APPRAISAL

DIAGRAMATIC REPRESENTATION OF MECHANICAL DEPARTMENT:

M.B.O 3600.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

SUPERVISORHEAD MECHANICTECHNICIAN

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.

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:

360 APPRAISAL M.B.O COST ACCOUNTING0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%1.40% 1.40% 1.40%

FINANCE

FINANCE

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.

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:

CONFIDENTIAL M.B.O 3600.00%

0.50%

1.00%

1.50%

2.00%

2.50%TOP MANEGEMENT

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.

CHAPTER: 5 RECOMMENDATION AND SUGGESTION1. 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. Ltd6. Wikipedia7. Times Ascent