Performance Appraisal at MARUTI SUZUKI

8/12/2019 Performance Appraisal at MARUTI SUZUKI

1/105

A

WINTER TRAINING REPORT

ON

PERFORMANCE APPRAISAL AT MARUTI SUZUKI

Submitted to Mr. Pramod Kumar Pandey

MAHARSHI DAYANAND UNIVERSITY, ROHTAK

In partial fulfillment of the requirementFor the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

(INDUSTRY INTEGRATED)

(Vth S!"t#)

S$%!&tt' %

Name: Ajay Singla egn. No.: !!"#"$###"

oll No. : !!%#!!!!%&

AGANNATH INSTITUTE OF MANAGEMENT SCIENCES

'() )*+': **+-.+-+

*)F Site N*.$, Se-tor), Near Poli-e Station, Nel/on Mandela oad,0a/ant Kunj, New +elhi

Mar-h, $#!1


2/105

CERTIFICATE

2hi/ i/ to -ertify thatA/0 S&1230a /tudent of the Mahari/hi +ayanand

3ni4er/ity, ohta5, ha/ prepared hi/ 2raining eport entitled PERFORMANCE

APPRAISAL AT MARUTI SUZUKI a MARUTI SUZUKI LTD under my

guidan-e. 6e ha/ fulfilled all hi/ requirement/ leading to award of the degree of

77A 8Indu/try Integrated9. 2hi/ report i/ the re-ord of bonafide training underta5en

by hi/ and no part of it ha/ been /ubmitted to any other 3ni4er/ity or 'du-ational

In/titution for award of any other degreediplomafellow/hip or /imilar title/ or pri;e/.

I wi/h hi/ all /u--e// in life.

Signature of Fa-ulty


3/105

STUDENTS DECLARATION

I hereby de-lare that the 2raining eport -ondu-ted at

M0#$t& S$4$5& LTD

3nder the guidan-e of

M#6 D705 S&1230

/ubmitted in Partial fulfillment of the requirement/ for the +egree of

7A)6'(* *F 73SIN'SS A+MINIS2A2I*N

8Indu/try Integrated9

TO

MAHARSHI DAYANAND UNIVERSITY,ROHTAK

I/ my original and the /ame ha/ not been /ubmitted

for the award of any other +egree+iplomaFellow/hip

*r other /imilar title/ or pri;e/.

P3089 N: D3h& AAY SINGLA

+ate: Feb.,$#!" egn No.:!!"#"$###"

oll No.: !!%#!!!!%&


4/105

ACKNOWLEDGEMENT

2he beatitude, bli// and euphoria that a--ompany /u--e//ful -ompletion of any ta/5

would be in-omplete without the e>pre//ion of gratitude to the people who made it

po//ible with their e4ery bit of help. A/ /u--e// in any wor5 i/ -redited to hard wor5,

but without a proper guidan-e it may be out of one?/ rea-h, /o with re4eren-e and

honor we a-5nowledge all tho/e who helped u/ in -arrying out thi/ proje-t

/u--e//fully.

@e a4ail thi/ opportunity to e>pre// our profound /en/e of /in-ere and deep gratitude

to

M#6 D705 S&1230 who guided u/ with hi/ 4aluable help in -hanneli;ing our effort in

the right dire-tion during the -our/e of the proje-t.

@e are al/o grateful people who filled in the que/tionnaire and pro4ided u/ the input/

/o that the /ampling data -ould the prepared.

(a/t but not the lea/t, we are 4ery mu-h than5ful to our friend/ and wellwi/her/ and

all other/ who ha4e been in/trumental in -ompletion of thi/ wor5.

.

(A/0 S&1230 )


5/105


6/105

TABLE OF CONTENTS

S6 N; TOPIC P026 N;

Ch07t# - < I1t#;'$8t&;1 -=>?

!.!. *4er4iew of Indu/try a/ a whole

!.$. Profile of the *rgani;ation

*rigin

e-ent A-hie4ement/

Mi//ion 0i/ion

Produ-t/ *rgani;ation Stru-ture

!." Introdu-tion to the 2opi-2itleProblem Studied

Ch07t# . = O%/8t&@ Mth;';3;2 >=*

$.!. *bje-ti4e/ of the Study

$.$. e/ear-h Methodology

e/ear-h +e/ign

Sour-e/ of data

Sampling 2e-hnique

Sample /i;e, if any

Method/ of data -olle-tion

2ool/ and te-hnique/ of analy/i/

$.". (imitation/ of the Study

Ch07t# * = D0t0 A103"&" I1t#7#t0t&;1 =?

Ch07t# = F&1'&12" ?>=?

Ch07t# = R8;!!1'0t&;1" ??=?

A11$#" +=.

=ue/tionnaire/

2able/


7/105

B&%3&;2#07hR#18" *=


8/105

CHAPTER=-

INTRODUCTION


9/105

INTRODUCTION

-6-6 O@#@&: ; I1'$"t# 0" 0 :h;3

2he automobile indu/try i/ one of the large/t in term/ of employment and 4alue

addition. A/ a leader in produ-t and pro-e// te-hnologie/ for the manufa-turing

/e-tor, it ha/ been a--epted a/ one of the important dri4er/ of e-onomi- growth.


10/105

indu/try. 2he t two de-ade/ the number in-rea/ed to "#,%% i.e. a )A


11/105

mar5et /hare. @ith in-rea/ing -ompetition from new entrant/, thi/ mar5et /hare ha/

plummeted to almo/t D$C in F$###.

A brief "year downturn till !%%" and -ar /ale/ boun-ed ba-5 to regi/ter a !& per -ent

growth rate in !%%&.Sin-e then, the e-onomy /lumped into re-e//ion and /ale/ of -ar/

remained quite /tagnant F%& and F%%. 2he Finan-ial year $### ha/, howe4er, been

the turnaround year for the Auto indu/try with the e-onomy loo5ing up. 2he indu/try

a-hie4ed 4olume /ale/ of D",!G unit/ a/ again/t 1#%,%G! unit/ in !%%%, thu/,

-ro//ing the half million mar5 for the fir/t time. 2herefore, at pre/ent, the )Ai/ting player/ had to an impre//i4e /hift from a -on/trained /upply /ituation to a

/urplu/ one. @ithin the pa/t de-ade, about "# model/ ha4e entered the Indian mar5et

with a number of model/ /till awaiting laun-h. 2he deli-en/ing of auto indu/try in

!%%" opened the gate/ to a 4irtual flood of international automa5er/ into the -ountry

with an idea to tap the large population ba/e of %G#mn people. Al/o the lifting of

quantitati4e re/tri-tion/ on import/ by the re-ent poli-y i/ e>pe-ted to add up to the

flurry of foreign -ar/ in to the -ountry.

Many -ompanie/ ha4e entered the -ar manufa-turing /e-tor, to tap the middle and

premium end of -ar indu/try. 2he new entrant/ are +aewoo 8Mati;9, 2el-o 8Indi-a9

and MA32I 8Santro9 in upper end of e-onomy -ar mar5et.


12/105

at a )Aury -ar /egment/ 8abo4e /!mn9. '-onomy /egment dominate/ with a mar5et

/hare of about #C of total -ar /ale/ in F$###.

2a5ing into -on/ideration the ri/e in e>pendable in-ome le4el/ and ne-e//ity of

per/onal tran/portation a/ a re/ult of ineffi-ient or defi-ient publi- tran/portation

mean/, the demand for -ar/ i/ e>pe-ted to in-rea/e. F$### wa/ an indi-ator of thegrowth pha/e to follow, regi/tering a $#year high growth rate of GDC. 2he /e-ond

highe/t growth wa/ re-orded in !%G at 1$C when Maruti had entered the mar5et.

iding on the popularity of the /mall -ar /egment, -oupled with the boo/t in /ale/ of

the mid /i;e /egment, total /ale/ grew by GDC. 6owe4er, /u-h high le4el of growth i/

highly un/u/tainable in the long run gi4en the fa-t that there i/ an a/ yet unutili;ed

-apa-ity in the indu/try. 2hi/ would ma5e the que/tion of /ur4i4al important and

-arma5er/ would ha4e to play their -ard/ well to remain in -ontention. Moreo4er,/ale/ growth in F$### wa/ -al-ulated on a lower ba/e of F%%.

'>port/ are e>pe-ted to in-rea/e a/ a re/ult of o4er -apa-ity in the dome/ti- -ar

indu/try and the go4ernmentE/ poli-y to bring in a more liberal regime on the foreign

e>-hange front. 2he flood of new entrant/ into the -ar indu/try a/ a re/ult of

liberali;ation ha/ led to a -omplete tran/formation of the /e-tor. 2he -ar /egment i/

flooded with new model/ from new and e>i/ting player/, a 4i/ible /hift from a


13/105

-on/trained /upply /ituation to a /urplu/. In the la/t de-ade or /o, a/ many a/ "#

model/ ha4e in4aded the mar5et ma5ing it a -a/e of embarra//ment of

ri-he/. Moreo4er a lot many model/ are waiting to hit the ramp by the end of the year.

2he -apa-ity of -ar produ-tion ha/ in-rea/ed /ub/tantially in the la/t three year/ and i/

e>pe-ted to grow manifold in the -oming year/. 2he low -apa-ity utili;ation will

for-e a mar5eting war between the -ar manufa-turer/. 2he 3SJ D. billion Indian -ar

indu/try ha/ regi/tered a )A


14/105

Th F"t C$"t;!#

Mr. 6arpal Singh, Maruti?/ fir/t -u/tomer, proudly re-ei4ed the 5ey/ of the Maruti

## -ar from the Prime Mini/ter Smt. Indira t de-ade. 'a-h of the/e model/ wa/ an in/tant draw

with the Indian -on/umer/. Su;u5i Motor )orporation in-rea/ed it/ /ta5e on two

o--a/ion/ 8$DLL 1# LL G# LL -ontrolling /ta5e and brought it to G# per -ent in the

mid !%%#/ 8and to G1C with pri4ati;ation in $##$-ompany manufa-ture/ pa//enger

-ar/ at it/ fa-tory in


15/105

2he -ompany i/ a /ignifi-ant e>porter with e>port/ to o4er G# -ountrie/. +uring

F%, e>port/ al/o witne//ed a drop of $D.&C to $1,&G& -ar/. For the period April

E% to Banuary E%%, M3( -ar e>port/ dropped by !#C to !&,!GG -ompared to !%,#G1

-ar/ for the -orre/ponding period in F%. In Augu/t E%, the -ompany laun-hed the

die/el 4er/ion of the en that i/ powered by a !G$& -- engine /upplied by Peugeot

)itreon Motor/, Fran-e. 2he -ompany al/o intend/ to laun-h a die/el 4er/ion of the


16/105

al/o a--ounted for D$C of the -ar /ale/ in the -ountry, fo-u/ing on it /eemed to ma5e

/en/e.

*nly, by !%%%, e4en a/ Khattar too5 o4er, the profile of the -ar mar5et had begun

-hanging radi-ally. 2he entry le4el, /ub/ $.G la5h Maruti ## /egment wa/ no

longer the bigge/t -hun5 of the mar5et. 'a/y a--e// to -ar finan-e and the entry of

ri4al/ li5e the +aewoo Mati;, the 6yundai Santro, the 2el-o Indi-a and the Fiat 3no

in the / " la5h to / 1 la5h /egment had turned that into the hotte/t portion of the

mar5et, a--ounting for a whopping 1#C plu/, of the total -ar mar5et in term/ of unit

/ale/. @hile MarutiE/ en remained the leader in it/ pri-e band, it had le// than G#C

/hare of it/ /egment. @hatE/ more, be-au/e the ba/i- Maruti ## had remained

un-hanged for o4er !G year/, and e4en the en had been in the mar5et for o4er fi4e

year/, the -on/umer per-eption wa/ that Maruti wa/ peddling old model/. In e//en-e,

the -ountryE/ bigge/t -arma5er wa/ fa/t getting the /ame image that 6indu/tan

Motor/E Amba//ador and Premier Automobile/E Padmini had when Maruti fir/t

entered the mar5et. Maruti ha/ only one new weapon left that it -an borrow from

parent Su;u5iE/ /mall -ar armory the Alto. And the laun-h of the Alto -ould bring it/

own problem/ it might further erode Maruti ## /hare rather than add fre/h /ale/.

For Khattar, therefore, the pre//ure i/ mounting with the di/in4e/tment -lo-5 ti-5ing

away. And there /eem/ no ea/y /olution. If he -anEt get MarutiE/ mar5et /hare/ to

mo4e up fa/t, it/ mar5et 4alue will drop e4en more. If it -ut/ pri-e/ to /hore up mar5et

/hare, it will be at the e>pen/e of profit/ and that will again pu/h down the

-arma5erE/ 4aluation. 2he / $#,### pri-e -ut in the Maruti ## alone -ould mean

almo/t / "&D -rore in lo/t /ale/ reali;ation/ o4er the full year. And hi/ ri4al/ in the

mar5et are wat-hing him -lo/ely to /ee what -ard he will play ne>t. @at-h thi/ /pa-e.

+e-ember !%" heralded a re4olution in the Indian -ar indu/try. Maruti -ollaborated

with Su;u5i of Bapan to produ-e the fir/t affordable -ar for the a4erage Indian. At thi/

time, the Indian -ar mar5et had /tagnated at a 4olume of "#,### to 1#,### -ar/ for the

de-ade ending !%". 2hi/ wa/ from where Maruti too5 o4er.


17/105

2he /ale/ figure for the year !%%" rea-hed up to !,%D,$#. 2he -ompany rea-hed a

total produ-tion of one million 4ehi-le/ in Mar-h !%%1 be-oming the fir/t Indian

)ompany to -ro// thi/ mile/tone. It -ro//ed the two million mar5 in !%%&. IndiaE/

large/t automobile -ompany, Maruti entered the Indian -ar mar5et with the a4owed

aim to pro4ide high quality, fuel effi-ient, low -o/t 4ehi-le/. It/ -ar/ operate on

Bapane/e te-hnology, adapted to Indian -ondition/ and Indian -ar u/er/. Maruti -ome/

in a 4ariety of model/ in the ## /egment.

2o fend off growing -ompetition, Maruti ha/ re-ently -ompleted a /. 1 billion

e>pan/ion proje-t at the -urrent /ite, whi-h ha/ in-rea/ed the total produ-tion -apa-ity

to o4er ",$#,### 4ehi-le/ per annum. It ha/ further plan/ to moderni;e the e>i/ting

fa-ilitie/ and to e>pand it/ -apa-ity by !,##,### unit/ in the year !%%%%. 2he total

produ-tion of the -ompany will e>-eed 1,##,### 4ehi-le/ per year.

In the /mall -ar /egment it produ-e/ the Maruti ## and the en.

2he big -ar /egment in-lude/ the Maruti '/teem and the Maruti !###.

It al/o manufa-ture/ the Maruti *mni.

2he late/t addition to the Maruti able i/ the )la//i-, billed a/ the -ar that will lead

the way to the ne>t millennium. *ther model/ on their way in-lude the @agon and the 7aleno.

-6.6.9 A8h&@!1t"

2he /aga of thi/ -ompany ha/ been an ody//ey of opportunity, -hallenge, growth,

/o-ial le4elling, mobility and the 4i/ible e>-itement it brought to an entire nation.

2hough o4er $G manufa-turer/ offer nearly # model/ to Indian -ar buyer/, Maruti

Su;u5i -ontinue/ to retain it/ leader/hip. @ith per-ei4able benefit/ of quality,

reliability, te-hnology, performan-e, tru/tworthine// and /er4i-e, it dominate/ the

large/t mar5et /egment affordable, 4aluepa-5ed, fueleffi-ient -ar/ and i/ /-oring

/ignifi-ant /u--e//e/ in fa/tgrowing upper /egment/ a/ well. Maruti Su;u5i al/o ha/

fully operational, India?/ large/t /er4i-e networ5, /panning o4er !$## town/ and

-itie/. Maruti Su;u5i?/ greate/t a-hie4ement ha/ been the /pe-ial ni-he it ha/ -ar4ed

for it/elf with -u/tomer/.


18/105

A:0#'" 01' A8h&@!1t"

ear $##%!# HPlatinum +ealerH, Pre/tigiou/ award for the be/t o4erall

performan-e whi-h wa/ won by u/.*nly 1# dealer/ were honoured with thi/

band among ## dealer/hip outlet/ a-ro// India.

7a-5 to ba-5 Award/ from Maruti Su;u5i India (td

Mr.+ine/h N ) ha/ won the Maruti Su;u5i 'meging Star, )onte/t held in

7angalore on $!/t September $#!#.

Mr.6emanth Kumar 6 N ha/ been !/t unner up in Maruti Su;u5i Sale/

)aptain )onte/t held in 7angalore on $$nd September $#!#.

M/. +i4ya Naya5 ha/ been awarded "rd Pla-e in Maruti Su;u5i 2rue 0alue

Selling S5ill )onte/t held on $&th Sepember $#!#.

Ser4i-e: Award for lowe/t I)8In/uran-e )laim/ atio9 in the -ountry

Ser4i-e: Award for 7e/t )u/tomer elation/hip 7uilding a-ti4itie/.

P0#t&8$30#" Y0#

Platinum +ealer Award $##% $#!#

@inner of H7e/t )u/tomer elation/ 7uilding A-ti4ityH $##%

(owe/t HIn/uran-e )laim atio 0alueH $##%

-6.6*9 COMPANYS MISSION VISION

-) C;!701" P;#t;3&;9

Maruti 3dyog (imited 8M3(9,IN+IA?/ fine/t and A/ia?/ large/t automobile indu/trywa/ e/tabli/hed in !%! by an a-t of parliament.M3(, the fir/t automobile -ompany

in the world to be honored with an IS* %###:$### -ertifi-ate, i/ a /ub/idiary of

Su;u5i Motor )orp 8hold/ a G1C equity /ta5e9. 2he


19/105

.) B$"&1"" P;#t;3&;9

2he


20/105

Produ-tion of large number of motor 4ehi-le/ whi-h wa/ ne-e//ary for

e-onomi- growth.

Mar5et Penetration, Mar5et +e4elopment Similarly Produ-t +e4elopment and

+i4er/ifi-ation.

Partner relation/hip management, 0alue -hain, 0alue deli4ery networ5.

-6.69 P#;'$8t" ; th C;!701

A=STAR

Maruti Su;u5iE/ -ompa-t AStar, whi-h will be laun-hed in *-tober, i/ e>pe-ted to

/urpa// the earlier /tri-t emi//ion norm/ announ-ed by the -ompany.

'mi//ion from the AStar not only -omplie/ with the 'uro " 87harat"9 norm/ that are

operational in !" Indian -itie/, in-luding +elhi, but al/o geared to meet /tringent

emi//ion norm/ that will be implemented a-ro// 'urope in the -oming year/.


21/105

2he AStar/ )*$ emi//ion will be e4en lower than !#% gm5m whi-h we had

en4i/aged earlier. 2hi/ i/ mu-h lower than the 'uropean emi//ion norm/ that require

-ar/ to emit !$# gm5m in the future /aid Shin;o Na5ani/hi, M+, Maruti Su;u5i.

IndiaE/ 'uro " norm/ i/ G year/ behind tho/e -urrently enfor-ed in 'urope, while 'uro

1 norm/ that are enfor-ed out/ide the !" Indian -itie/ are !# year/ behind 'uropean

ben-hmar5/. @hile ga/eou/ and parti-ulate matter -ompri/e 'uro 1 gradation in India,

'uropeE/ emi//ion report/ e/timate the )*$ di/-harge le4el/ only. (ower )*$ le4el/

in -ar/ mean/ the -ar ha/ /uperior fuel effi-ien-y, /aid Anomita )howdhury, A//o-iate

+ire-tor, )entre for S-ien-e and 'n4ironment.

Maruti Su;u5iE/ de-i/ion to manufa-ture the AStar -ar in India i/ part of parent

Su;u5iE/ o4erall /trategy to ma5e India the manufa-turing hub for the produ-tion of

/mall -ar/ li5e the Alto, Swift, and Maruti ##. @e may -on/ider manufa-turing the A

Star later in )hina whi-h will -ater to the )hine/e mar5et only. In that -a/e we may

ha4e to e>port auto -omponent/ from India to )hina, /aid Na5ani/hi. 2he firm hope/

to e>port about one la5h unit/ of the AStar to 'urope. In about $" year/ from the

laun-h, we may e>port to S Ameri-a and the S' A/ian region, he /aid. A/ part of it/

/trategy to -on/olidate it/ po/ition in the A$ /egment, whi-h will witne// newer

player/ li5e Ni//an,2oyota, and 6onda thi/

year onward/, Maruti

Su;u5i ha/ indi-ated it

will laun-h the

-ompa-t Spla/h ne>t

year.

SWIFT DZIREP#;#!018

2he '/teem?/

repla-ement i/ a Swift with a boot. It?/ a4ailable with the /ame engine/ a/ it/

hat-hba-5 -ou/in whi-h i/ the !." litre petrol unit from the '/teem and the fabulou/

++IS multijet die/el motor from the Swift +ie/el. @eight penalty o4er the Swift i/

only around "#5g/, /o performan-e le4el/ are /imilar to the hat-hba-5. 2he petrol ha/

all the a-tion toward/ the topend of the powerband and may feel a little lethargi-


22/105

when fully loaded. 2he die/el howe4er, i/ the one that ma5e/ the mo/t of the torque

a4ailable. A /light hint of lag below $###rpm, but after that the motor -ome/ into it/

own and pi-5/ up the pa-e -on/iderably. 2he gearbo> i/ again -arried o4er from the

Swift, /o it -ome/ with a /weet /hifting a-tion with /hort and dire-t throw/.

R&' H01'3&12

2he rear /u/pen/ion ha/ been /tiffened due to the added weight of the boot and the

Swift already had a /lightly bumpy rear /eat ride, thi/ remain/ in the +;ire a/ well.

2hi/ mean/ on rough pat-he/, you will ha4e to /low down unli5e in the (ogan whi-h

you -an dri4e without a -are o4er bad road/. 7ut the /tiff /etting/ pay di4idend/ in

handling. ou -an pu/h the -ar through -orner/, there i/ minimal body roll and the

'PS /teering al/o feel/ pre-i/e that weigh/ up with /peed.

R&1!1t

2he engine/ both die/el and petrol are refined powerplant/ and you will not find any

rea/on to -omplain. 2he interior/ loo5 good and are made of good material/, but a/ in

the Swift, they may /tart to rattle fairly early in the -ar?/ life. 2he /u/pen/ion doe/n?t

ma5e it/ pre/en-e 5nown e4en on rough pat-he/.

S 1

It i/ e>pe-ted to be laun-hed in Indian mar5et in three month/. 2he new Maruti S1

/edan i/ e>pe-ted to be built at MarutiE/ new manufa-turing fa-ility at Mane/ar. It will

be offered in the A" /egment, whi-h -urrently a--ount/ for !G C of the Indian

pa//enger -ar mar5et. '>ep-ted prei-e range i/ D la-/ to & la-/ .


23/105

Su;u5i, a world leader in the -ompa-t -ar/ a-hie4ed an image ma5eo4er with the

laun-h of Swift.Apart from India, Swift re-ei4ed the )ar of the year award a-ro// the

world. 2he un4eiling of the S1 /edan at


24/105

a//i/ted ra-5 pinion /teering /y/tem, highten/ile /teel in a A, 7, and ) pillar/, high

impa-t door beam/, front and rear -rumple ;one/ et-.

It/ -omfort feature/ in-lude better /pa-e and three row/ of /eating arrangement.

It -ome/ in different -olor/:

)ool 7eige Metalli-

7lui/h 7la-5 Metalli-


25/105

2ype 1 /tro5e -y-le, water -ooled

S*6) ! )$ 0i)10U

Number of -ylinder/ "

2yre/

Std. G.DG!$1 P ' + adial/ !1G!$

OMNI

Spe-ifi-ation

(ength "" mm

@idth !1!# mm

6eight !D1# mm !"G mmU

@heel ba/e !1# mm


26/105

+imen/ion/

(ength "1%G mm

@idth !1%G mm

6eight !1#G mm

@heelba/e $""G mm


27/105

Spe-ifi-ation

(ength "1%G mm

@idth !1%G mm

6eight !1D# mm

@heel ba/e $"D# mm

Min. turning radiu/ 1.D m

'ngine

2ype F), 1 4al4e/ per -ylinder,

MPFI )ontrol !D bit )omputer

Number of -ylinder/ " 1U

Pi/ton di/pla-ement &%D--!#D! --U

Front Ma-pher/on Strut with tor/ion type anti

roll bar.

ear )oil /pring with double a-tion tele/-opi-

/ho-5 ab/orber/.

7ra5e/ boo/ter a//i/ted

Front +i/- ear +rum

2yre/

)apa-ity

Fuel tan5 "G (t/

W02;1 R


28/105


29/105

Spe-ifi-ation

(ength "1%G mm

@idth !1%G mm

6eight !DD# mm

@heel ba/e $"D# mm

i,

!$1# Kg of A>

2ran/mi//ion

Manual type G forward all /yn-rome/h,

! re4er/e gear

Automati- type " /peed with planetary gearU

'ngine Number of -ylinder/ 1 inline, F) engine

1 4al4e/ per -ylinder.

Swept 4olume !#D! --

Ma>imum power D$ bhp T D### rpm

Ma>imum torque .1 Kgm T "G## rpm

Su/pen/ion

Front M-Pher/on Strut with tor/ion type roll

-ontrol de4i-e

ear )oil /pring and ga/ filled /ho-5 ab/orber/with three lin5 rigid a>le and i/olatedtrailing arm/

7ra5e/ boo/ter a//i/ted

Front +i/-

ear +rum

2yre/ !1G !" 8adial9

)apa-ity

Fuel tan5 "G (t/

BALENO


30/105

+imen/ion/

(ength 1$$G mm 1"&G mmU

@idth !D%# mm

6eight !"%# mm !1D# mmU

@heelba/e $1# mm

Min. turning radiu/ 1.% m@eight

Kerb weight %&G Kg!#$# KgU

2ran/mi//ion Manual G forward,

'ngine

2ype All Aluminum

)ontemporary, !D 4al4e S*6)

Number of -ylinder/ 4al4e/ 1 inline, !D

Ma>imum torque !"$ NMT"### rpm Fuel +i/tribution MPFI

7ra5e/ 0a--um a//i/ted hydrauli-

Front 0entilated di/-

ear +rum, leading trailing

2yre/ !DG#!"

Fuel tan5 G! (t/.


31/105

SALES FIGURES

Maruti Su;u5i /ale/ in September $#!# New +elhi, *-tober #!, $#!# 2he -ompany

had /old a total of &!,### 4ehi-le/ in September $##%.

Th "03" &2$#" ;# S7t!%# .+-+ 0# 2&@1 %3;:9

S2!1t M;'3"

I1 S7t!%# T&33 S7t!%#A7#&3+? =

M0#8h+.+-+ .++J

Ch012

.+-+=

-+

.++?=

+

J

Ch012

A! M## "$#& "1D& &.GC !GGD $&D 11.%C 1%""

) *mni, 0er/a $%& &1!D !!.%C 111"" 1#% .GC &&%1

A$

Alto, @agon

, en, Swift,

A/tar, it;

G$G# 1GD$! !G.!C $%%$% $1"G!# $".!C G!!"%D

A" S1, +E;ire &"GD &1!" #.C 11$$G "1&% $&.!C &G%$

T;t03 P0""12# C0#" -*>? >*- --6J +** *?+ ->6.J ->

M30 >?. -+6J +>? *- -6J ..-

'>port !!&!$ D"! G.1C DD1!% "#$"D !!%.&C #$"

T;t03 S03" ?**+> -+++ -6*J .- *?.+* .*6?J .->

A="t0# 30$18h' &1 N;@!%#+, R&t4 30$18h' &1 M0-+, G#01' V&t0#0 .6

30$18h' &1 $3+6


32/105

-6.6 O#201&40t&;1 St#$8t$#

Maruti Su;u5i India (imited 8MSI(, formerly Maruti 3dyog (imited9, a /ub/idiary of

Su;u5i Motor )orporation of Bapan, i/ India?/ large/t pa//enger -ar -ompany,

a--ounting for o4er G# per -ent of the dome/ti- -ar mar5et.

Maruti offer full range of -ar/ from entry le4el Maruti ## Alto to /tyli/h

hat-hba-5 it;, A /tar, Swift, @agon , '/tillo and /edan/ +ire, S1 and Sport/

3tility 4ehi-le


33/105

.++* Su;u5i Metal India?/ foundry, a B0 between Su;u5i Motor )orporation of

Bapan and Maruti 3dyog (td, -ome/ on /tream

.++ Maruti Su;u5i Automobile/ India e/tabli/hed in -ollaboration with Su;u5i

Motor )orporation to build a new manufa-turing plant with a total in4e/tment

of /!Gbn

S6W6O6T ANALYSIS OF THE ORGANIZATION

STRENGTHS9

Boint 4enture of Su;u5i Motor )orporation, Bapan.

*nly produ-er of the A! /egment -ar in India -urrently.

Strong di/tribution networ5 all o4er India.

It ha/ the ma>imum number of /er4i-e /tation/ all o4er the -ountry, with /er4i-e/

a4ailable in the remote area/ too.

)ar/ 5nown for there effi-ien-y, effi-ien-y in term of maintenan-e -o/t and

running -o/t.

WEAKNESS9

2he -ompany doe/ not offer die/el 4er/ion of there brand/.

2he number/ of model/ offered in A" and ) /egment are 4ery le//.

2he model/ offered by the -ompany are 4ery old and loo5/ outdated in

-ompari/on to the new -ar/ a4ailable in the /egment.

OPPORTUNITY9

*pportunity e>i/t/ in the A" /egment, whi-h ha/ re-orded a double digit growth of

!GC in Indian mar5et.

2he -ompany -an /ign in -ontra-t/ with MN)?/ for pro4iding them with the -ar/

for purpo/e of pi-5 and drop. 2hi/ way the /ale/ of 0er/a -an be impro4ed.

THREATS9


34/105

2he /. !.G la5h -ar to be laun-hed by 2ata and 20S India.

(aun-h of new -ar/ li5e


35/105

ible, with undefined potential. Performan-e i/ the 5ey word in the life of

an enterpri/eO it i/ the /taffing that perform/ the management ta/5/O not the ma-hine/

or the material/. It i/, therefore, ama;ing, yet under/tandable, how the apprai/alof the

employee effe-ti4ene// i/ mo/tly left to -han-e. It i/ ama;ing be-au/e of the

importan-e of the ta/5 the /ta5e that it hold/ for the enterpri/e. And it i/ yet

under/tandable, be-au/e of the diffi-ulty of the apprai/al.

It will be our 'ndea4our, in thi/ report to probe the -ontent of the apprai/al pro-e//,

e>amine the problem/, /ur4ey the apprai/al method/ in -urrent pra-ti-e and -ome to a

-on-lu/ion.


36/105

MEANING AND IMPORTANCE

M01&129

Performan-e apprai/al i/ the /y/temati-, periodi- and impartial rating on an

employee?/ e>-ellen-e in matter/ pertaining to hi/ pre/ent job and to hi/ potentialitie/

for a better job. @hen properly -ondu-ted, performan-e apprai/al /hould not only let

the employee 5now how well he i/ performing but al/o influen-e the employee?/

future performan-e.

Performan-e apprai/al i/ a method of e4aluating the beha4iour of employee/ in the

wor5/pot, normally in-luding both the quantitati4e and qualitati4e a/pe-t/ of job

performan-e. It indi-ate/ how well an indi4idual i/ fulfilling the job demand/. *ften

the term i/ -onfu/ed with effort, but performan-e i/ alway/ mea/ured in term/ of

re/ult/ and not effort/.

Performan-e apprai/al i/ not job e4aluation. It refer/ to how well /omeone i/ doing

the a//igned job. Bob e4aluation determine/ how mu-h a job i/ worth to the

organi;ation and therefore, what range of pay /hould be a//igned to the job.

2hu/, performan-e apprai/al i/ a pro-e// of e/timating or judging the 4alue,e>-ellen-e or qualitie/ of employee/ in an organi;ation.

I!7;#t018

Performan-e apprai/al ha/ be-ome a 4ery /ignifi-ant a-ti4ity in mo/t of the

enterpri/e/ be-au/e it pro4ide/ data about pa/t, pre/ent and e>pe-ted performan-e of

the employee/, whi-h i/ helpful in ta5ing de-i/ion/ on /ele-tion, training and

de4elopment, in-rea/e/ in pay, tran/fer/ and the li5e. 2he/e day/ a large amount of

money i/ being /pent on apprai/al/ by mo/t of the organi;ation/. 2he following

benefit/ of performan-e apprai/al ju/tify the de/igning of an effe-ti4e program of

performan-e apprai/al:

Performan-e Impro4ement Performan-e feedba-5 pro4ide/ a /-ientifi- ba/i/ for

judging the merit or worth of employee/ who will try to impro4e their

performan-e if it i/ not up to the /ati/fa-tion of the employer/.


37/105

Pla-ement +e-i/ion/ It i/ a /ound ba/i/ for promotion/, demotion/, tran/fer/ or

e4en termination of employee/. *ften promotion/ are a reward for pa/t

performan-e/.

2raining and +e4elopment Need/ It help/ in di/tingui/hing between effi-ient and

ineffi-ient wor5er/. Poor performan-e may indi-ate the need for retraining.

(i5ewi/e, good performan-e may indi-ate untapped potential that /hould be

de4eloped.

)areer Planning and +e4elopment Performan-e feedba-5 guide/ -areer

de-i/ion/ about /pe-ifi- -areer path/ one /hould in4e/tigate. It al/o help/ the

management to a//ign wor5 to indi4idual/ for whi-h they are be/t /uited.

'>ternal )hallenge/: Sometime/, performan-e i/ influen-ed by fa-tor/ out/ide the

wor5 en4ironment, /u-h a/ family, finan-ial, health or other per/onal matter/. If

un-o4ered through apprai/al/, the human re/our-e/ department may be able to

pro4ide a//i/tan-e.

If the apprai/al i/ done /-ientifi-ally and /y/temati-ally, it will pre4ent grie4an-e/ and

de4elop a /en/e of -onfiden-e among the wor5er/. 2hu/, apprai/al help/ in -reating a

-ongenial en4ironment of employeremployee relation/.

O%/8t&@" ; A77#0&"03

2he o4erall obje-ti4e of performan-e apprai/al i/ to impro4e organi;ational

effe-ti4ene// by pro4iding information about effi-ien-ie/ and defi-ien-ie/ of it/

human re/our-e/.

2he fir/t fun-tion of thi/ -ontrol me-hani/m i/ admini/trati4e i.e., it help/ inadmini/trating a reward and penalty /y/tem. It often pro4ide/ the rational foundation

for the e/timation of the -ontribution/ of employee/, and help/ to determine the

reward/ and pri4ilege/ rationally.

2he ne>t important u/e of /u-h apprai/al i/ that it enable/ the management to inform

the employee/ where they /tand. In other word/, it /er4e/ a/ a feedba-5 to the


38/105

employee. 7y letting the employee 5now how well he i/ doing or where he /tand/, it

tell/ them what they -an do to impro4e their performan-e.

A third purpo/e of /u-h apprai/al i/ to lo-ate or identify the potential for growth of

indi4idual employee/. 7y identifying the /trength/ and wea5ne//e/ of an employee, it

/er4e/ a/ a guide for formulating a /uitable training and de4elopment program to

impro4e their quality of wor5. Al/o, it help/ to determine whether an employee -an

-ontribute more in a higher or different job. It help/ in their /uitable promotion or

pla-ement.

(a/tly, an analy/i/ of the periodi-al a//e//ment/ of all employee/ pro4ide/ a fairly

dependable -onne-ti4e data on the effi-ien-y of the organi;ation/, /tate of employee

morale et-. to the top management where the apprai/al/ are /o /tru-tured a/ to eli-it

/u-h information.

In a -on-i/e manner, we -an /ay that performan-e apprai/al/ aim at attaining the

following different purpo/e/:

2o -reate and maintain a /ati/fa-tory le4el of performan-e.

2o -ontribute to the employee growth and de4elopment through training, /elf

and management de4elopment program/.

2o help the /uperior/ to ha4e a proper under/tanding about their /ubordinate/.

2o guide the job -hange/ with the help of -ontinuou/ ran5ing.


39/105

2o fa-ilitate fair and equitable -ompen/ation ba/ed on performan-e.

2o fa-ilitate te/ting and 4alidating /ele-tion te/t/, inter4iew te-hnique/

through -omparing their /-ore/ with performan-e apprai/al ran5/.

2o pro4ide information for ma5ing de-i/ion/ regarding lay off, retren-hment

et-.

2o en/ure organi;ational effe-ti4ene// through -orre-ting the employee for

/tandard and impro4ed performan-e and /ugge/ting the -hange in employee

beha4ior.

Th A77#0&"03 P#;8""

A77#;08h" t; P#;#!018 A77#0&"039=

Method/2e-hnique/ of Apprai/al

!. 2raditional Method/

$. Modern Method/

A77#;08h" t; P#;#!018 A77#0&"03


40/105

-6 Th 2;03 ;# ;%/8t&@ 077#;08h=2heoreti-ally, thi/ approa-h i/ the /imple/t and

the mo/t /ati/fying. @hen there i/ a goal for the manager an obje-ti4e, ta/5, norm or

targetin mea/urable or 4erifiable form, the apprai/al pro-e// i/ /implified to a

quantitati4e -ompari/on of the a-hie4ement of the goal or obje-ti4e. 7a/i-ally, under

thi/ /y/tem, /pe-ifi- obje-ti4e/ are e/tabli/hed for ea-h po/ition and they are

apprai/ed o4er a /pe-ifi- period of time.

.6 Th t#0&t ;# t#0'&t&;103 077#;08h= 2he trait or traditional approa-h tend/ to

apprai/e people on per/onality rather than on performan-e. 2he logi- behind thi/

approa-h i/ the a//umption that there are -ertain qualitie/, trait/ et-. pre/ent in

e4eryone /ome of them are natural, other/ a-quired and -ulti4ated o4er a period of

time. 2he po//e//ion of the/e trait/ in 4arying mea/ure/ /upplie/ the ba/i/ for

apprai/al. 6en-e, the /-ope wa/ limited only to the e>tent of trait/ and per/onality in

thi/ approa-h.

*6 Th $18t&;103 077#;08h=2hi/ approa-h to apprai/al i/ ba/ed on the the/i/ that an

employer mu/t /u--eed a/ an offi-er or manager. 6e mu/t be judged by how mu-h

and how well he perform/ the fun-tion/ of hi/ po/t planning, organi;ing, /taffing,

dire-ting and -ontrolling. A weightage i/ de-ided for the /e4eral fun-tion/ and the

employer?/ /-ore i/ re-orded again/t ea-h. 2he total /-ore gi4e/ an inde> of hi/ rating.

Apart from the abo4ementioned approa-he/, there are two approa-he/ that are

-olle-ti4ely 5nown a/ -ompo/ite approa-he/.

Th" 0#9

8a9 2he trait-umgoal approa-h

8b9 2he goal-umfun-tional approa-h

2he/e approa-he/ ha4e the -ombined feature/ of any two approa-he/. 2he prin-iple i/

that the goal ha/ to be rea-hed but through the po//e//ion and pra-ti-e of -ertain

e//ential trait/qualitie/ and fun-tion/.

METHODS TECHNIUES OF APPRAISAL


41/105

Se4eral method/ and te-hnique/ are a4ailable for mea/urement of the performan-e of

an employee. 2he method/ /-ale/ 4ary for many rea/on/:

!. 2hey differ in the /our-e/ of trait/ or qualitie/ to be apprai/ed.

$. 2hey differ be-au/e of the different 5ind/ of wor5er/ who are being rated.

". It may be be-au/e of the degree of pre-i/ion attempted in an e4aluation may

be different.

1. 2hey may differ be-au/e of the method/ u/ed to obtain weighting/ for 4ariou/

trait/.

2here i/ mu-h argument on the be/t method to e4aluate performan-e. +ifferentauthor/ ha4e /ugge/ted different approa-he/. For e>ample, o-5 (ewi/

-la//ifi-ationO -la//ifi-ation by obbin/O Strau// Sayle/ -la//ifi-ation /y/tem et-.

2he mo/t widely u/ed -ategori;ation i/ gi4en by Strau// Sayle/. 2hey ha4e

-la//ified performan-e apprai/al method/ into traditional and newer or modern

method/.

2he traditional method/ lay empha/i/ on the rating of the indi4idual?/ per/onality

trait/ /u-h a/ initiati4e, dependability, dri4e, re/pon/ibility, -reati4ity, integrity,

leader/hip potential, intelligen-e, judgement, organi;ing ability et-.

*n the other hand, newer method/ pla-e more empha/i/ on the e4aluation of wor5

re/ult/, job a-hie4ement/ et-., than on per/onal trait/.

T#0'&t&;103 Mth;'"

-6 St#0&2ht R015&12 Mth;' In thi/ /y/tem, the rating of a man in a wor5 group i/

done again/t that of another. /imple/t method of /eparating the mo/t effi-ient from the

lea/t effi-ient. It i/ relati4ely ea/y to de4elop and u/e.

7ut the greate/t limitation of thi/ method i/ that, in pra-ti-e it i/ 4ery diffi-ult to

-ompare a /ingle indi4idual with another. Se-ondly, the ta/5 of ran5ing indi4idual/ i/

diffi-ult when a large number of per/on/ are rated.


42/105

.6 P0' C;!70#&";1 Mth;'=7y thi/ te-hnique, ea-h per/on i/ -ompared with all

other employee/ to be e4aluated. 2he e4aluator then -he-5/ the per/on he or /he felt

had been the better of the two on the -riterion of o4er all ability to do the pre/ent job.

2he number of time/ a per/on ha/ been preferred i/ tallied and the tally de4eloped i/

an inde> of the performan-e/. 2hi/ method i/ not /uitable for a large group.

*6 M01=t;=!01 C;!70#&";1 Mth;'=7y thi/ method -ertain fa-tor/ are /ele-ted for

the purpo/e of analy/i/ 8e.g. leader/hip, dependability, initiati4e9 and the rater de/ign/

a /-ale for ea-h fa-tor. )ertain /-ore/ for ea-h fa-tor are awarded to the apprai/ee.

2hi/ method i/ u/ed in job e4aluation and i/ al/o 5nown a/ the fa-tor -ompari/on

method. It i/ not mu-h u/e, be-au/e the de/igning of /-ale/ i/ a -ompli-ated ta/5.

6 G#0'&12 Mth;'=3nder thi/ /y/tem, the rater -on/ider/ -ertain feature/ and mar5/

them a--ordingly to a /-ale. 2he /-ale may be: Aout/tanding, 74ery good, )good

or a4erage, +fair, 'poor and F4ery poor or hopele//. 2he a-tual performan-e of an

employee i/ then -ompared with the/e grade definition/ and he i/ allotted the grade

whi-h be/t de/-ribe/ hi/ performan-e.

6 G#07h&8 L&10# R0t&12 S803=It i/ the olde/t and mo/t widely u/ed performan-e

apprai/al method. 2he rating -an be a matri> of bo>e/ or a bar graph where thee4aluator -he-5/ off a lo-ation relati4e to the rating.

2hi/ method i/ ea/y to under/tand and u/e. It permit/ a /tati/ti-al tabulation of /-ore/.

*ne /eriou/ di/ad4antage i/ that, often the rating -lu/ter/ on the high /ide when thi/

method i/ u/ed.

>6 F;#8' Ch;&8 D"8#&7t&;1 Mth;'=It attempt/ to -orre-t a rater?/ tenden-y to

gi4e -on/i/tently high or -on/i/tently low rating/ to all employee/. 3nder thi/ method,

the rating element/ are /e4eral /et/ of phra/e/ relating to job profi-ien-y or per/onal

qualifi-ation/. 2he rater i/ a/5ed to indi-ate whi-h of the phra/e/ i/ mo/t and lea/t

de/-ripti4e of the employee.

6 F;#8' D&"t#&%$t&;1 Mth;'=2hi/ /y/tem i/ u/ed to eliminate or minimi;e rater?/

bia/. A Gpoint performan-e /-ale i/ u/ed to rate the employee/, without any

de/-ripti4e /tatement. 'mployee/ are pla-ed between the two e>treme/ of Wgood? and

Wbad? job performan-e/.


43/105

2hi/ method tend/ to eliminate or redu-e bia/. 2hi/ method i/ highly /imple and 4ery

ea/y to apply in organi;ation/.

?6 Ch853&"t Mth;'= 3nder thi/ method, the rater doe/ not e4aluate employee

performan-e, he /upplie/ report/ about it and the per/onnel department doe/ the final

rating. A /erie/ of que/tion/ are pre/ented -on-erning an employee?/ beha4iour. 2he

rater then -he-5/ to indi-ate, if the an/wer to a que/tion about an employee i/ po/iti4e

or negati4e.

2hi/ method /uffer/ from bia/ on the part of the rater be-au/e he -an di/tingui/h

po/iti4e negati4e que/tion/. 2hi/ pro-e// -an be 4ery e>pen/i4e time -on/uming.

6 F# E""0 Mth;'= 3nder thi/ method, the /uper4i/or ma5e/ apprai/al of an

employee in hi/ own word/ and put/ down hi/ impre//ion/ about the employee. 6e

ta5e/ note of a number of fa-tor/ li5e relation/ with -olleague/, general organi;ing,

planning ability, job 5nowledge, potential, attitude, de4elopment need/ for future et-.

2here are no -ommon -riteria for e4aluation. 2hi/ /y/tem require/ -on/iderable time

and thought from the apprai/er.

-+6 C#&t&803 I18&'1t T8h1&$= 2hi/ /y/tem attempt/ to mea/ure a wor5er?/performan-e in term/ of -ertain We4ent/? or Wepi/ode/? that o--ur in the performan-e of

the job. 2he/e e4ent/ are 5nown a/ -riti-al in-ident/. 2he -olle-ted in-ident/ are then

ran5ed in order of frequen-y and importan-e. 2hi/ method ha/ a limitation that

negati4e in-ident/ are generally more noti-eable than po/iti4e in-ident/.

--6 G#;$7 A77#0&"03 Mth;'= 3nder thi/ method, an apprai/al group rate/

employee/, -on/i/ting of /uper4i/or/ who ha4e /ome 5nowledge of their performan-e.

2he group then di/-u//e/ the /tandard/ of performan-e for that job, the a-tual

performan-e of the jobholder, and the -au/e/ of their parti-ular le4el of performan-e

and offer/ /ugge/tion/ for future impro4ement, if any. 2hi/ method i/ 4ery time

-on/uming.

-.6 F&3' R@&: Mth;'=3nder thi/ method, a trainer employee from the per/onnel

department inter4iew/ the /uper4i/or/ to e4aluate hi/ /ubordinate/. 2he /uper4i/or i/


44/105

required to gi4e hi/ opinion about the progre// of hi/ /ubordinate/, the le4el of the

performan-e of ea-h /ubordinate, hi/ wea5ne//e/, good point/, ability et-.

2he /u--e// of thi/ /y/tem depend/ upon the -ompeten-e of the inter4iewer. *ne

defe-t i/ that it 5eep/ two management repre/entati4e/ bu/y with the apprai/al.


45/105

M;'#1 Mth;'"

-6 A77#0&"03 % R"$3t" M0102!1t B O%/8t&@" (MBO)= Management by

obje-ti4e/ -an be de/-ribed a/ a pro-e// whereby the /uperior and /ubordinate

manager/ of an organi;ation jointly identify it/ -ommon goal/, define ea-h

indi4idual?/ major area/ of re/pon/ibility and -ontribution/ of ea-h of it/ member/.Q

It /trongly reinfor-e/ the importan-e of allowing the /ubordinate to parti-ipate

a-ti4ely in the de-i/ion/ that affe-t him dire-tly. Subordinate/ be-ome in4ol4ed in

planning their own -areer/. M7* i/ re/ultoriented. M7* help/ in in-rea/ing

employee moti4ation. 7ut M7* program ta5e/ a great deal of time, energy and form.

2here i/ /ometime/ a tug of warQ in whi-h the /ubordinate trie/ to /et the lowe/t

target po//ible and the /uper4i/or the highe/t.

.6A""""!1t C1t# Mth;'= 3nder thi/ method, many e4aluator/ join together to

judge employee performan-e in /e4eral /ituation/ with the u/e of a 4ariety of -riteria.

A//e//ment/ are made to determine employee potential for promotion. 2he

a//e//ment -enter/ generally mea/ure interper/onal /5ill/ and other a/pe-t/ /u-h a/:

organi;ing and planning, getting along with other/, quality of thin5ing, re/i/tan-e to

/tre//, moti4ation to wor5 et-.

*6*>+ D2# P#;#!018 A77#0&"03= Some organi;ation/ ha4e e>panded the idea

of upward feedba-5 into what they -all "D# degree feedba-5. Performan-e

information i/ -olle-ted all roundQ an employee. From hi/ /uper4i/or/, /ubordinate/

peer/ and internal and e>ternal -u/tomer/. 2he feedba-5 i/ generally u/ed for training

and de4elopment rather than for pay in-rea/e.

6 H$!01 A""t A88;$1t&12 Mth;'= 2he human a//et a--ounting method refer/ to

a-ti4ity de4oted to atta-hing money e/tima e>ternal -u/tomer goodwill. If able, well

trained per/onnel lea4e a firm, the human organi;ation i/ worthle//O if they join it, it/

human a//et/ are in-rea/e. 2hi/ method i/ not yet 4ery popular.

6Bh0@&;#033 A18h;#' R0t&12 S803" (BARS)= 2hi/ i/ a new apprai/al te-hnique.

It pro4ide/ better, more equitable apprai/al/ a/ -ompared to other te-hnique/. Sin-e

7AS i/ done by per/on/ who are e>pert in the te-hnique, the re/ult/ are /uffi-iently

a--urate. 2he te-hnique i/ not bia/ed by the e>perien-e and e4aluation of the rater.


46/105

COMPONENTS OF APPRAISAL

A. @ho of the Apprai/al

7. @hat of Apprai/al

). @hy of Apprai/al

+. @hen of Apprai/al

'. @here of Apprai/al

F. 6ow of Apprai/al

WHO OF APPRAISAL

2he Wwho? of the apprai/al i/ -on-erned with who /hould be rated and who /hould do

the ratingVQ 2he an/wer to the fir/t query i/ that all employee/ of an organi;ation

/hould be apprai/ed, for one rea/on or the other.

egarding the /e-ond i//ue, it may be /aid that the apprai/al -an be a--ompli/hed by

one or more indi4idual/ who -an be the immediate /uper4i/or, other manager/

a-quainted with the apprai/ee?/ wor5, a higher le4el manager, a per/onnel manager,

the apprai/ee?/ peer/, the apprai/ee him/elf or the apprai/ee?/ /ubordinate/.


47/105

3/ually the immediate /uper4i/or mu/t be entru/ted with the ta/5 of rating the

apprai/ee be-au/e he i/ mo/t familiar with hi/ wor5 and he i/ al/o re/pon/ible for

pro4iding a feedba-5 of performan-e apprai/al to the /ubordinate. 2he /taff

/pe-iali/t/, i.e., the per/onnel offi-er/, may al/o do the apprai/al. 2hey may

/ometime/, ju/t ad4i/e the /uper4i/or/ in the pro-e//.

6i/ peer/ may al/o do the apprai/al of an indi4idual. Su-h apprai/al pro4e/ effe-ti4e

in predi-ting future management /u--e//. Sometime/, /elfe4aluation i/ al/o

employed for e4aluating performan-e. It empha/i;e/ human relation/ with the/uper4i/or.

(a/tly, in many -ompanie/, /ubordinate/ and /uperior/ jointly e/tabli/h goal/ and

periodi-ally e4aluate the /ubordinate?/ performan-e with re/pe-t to the/e goal/.

WHAT OF APPRAISAL

2he Wwhat? of the performan-e apprai/al -on/i/t/ of the qualitie/ and attribute/ that

/hould be /-rutini;ed, in order to judge the ability and the performan-e of the

apprai/ee. '4ery organi;ation ha/ to de-ide the -ontent/ to be apprai/ed before the

program i/ appro4ed.


48/105

Selfe>pre//ion: written and oral

Ability to wor5 with other/

(eader/hip /tyle/ and abilitie/

Initiati4e

2e-hni-al /5ill

2e-hni-al ability or 5nowledge

Ability to gra/p new thing/

Ability to rea/on

*riginality and re/our-efulne//

)reati4e /5ill/

Area/ of intere/t

Area of /uitability

Budgment /5ill/

Integrity

)apability for a//uming re/pon/ibility


49/105

(e4el of a--eptan-e by /ubordinate/

6one/ty and /in-erity

2horoughne// in job and organi;ational 5nowledge

Knowledge of /y/tem/ and pro-edure/

=uality of /ugge/tion/ offered for impro4ement

2he abo4e -riteria relate to pa/t performan-e and beha4iour of an employee. 2here i/

al/o the need for a//e//ing the potential of an employee for future performan-e,

parti-ularly when the employee i/ e>pe-ted to a//ume greater re/pon/ibilitie/.

WHY OF APPRAISAL

I1 t;'0" 8;!7t&t&@ W;#3', th :;#' &" PERFORM ;# PERISH6

2he Wwhy? of an apprai/al i/ -on-erned with the purpo/e that i/ /er4ed by the pro-e//.

Performan-e apprai/al/ are e//ential for the effe-ti4e management and e4aluation of

/taff. Apprai/al/ help de4elop indi4idual/, impro4e organi;ational performan-e, and

help in bu/ine// planning. Annual performan-e apprai/al/ enable management and

monitoring of /tandard/, agreeing e>pe-tation/ and obje-ti4e/, and delegation of

re/pon/ibilitie/ and ta/5/. 2hey al/o help to e/tabli/h indi4idual training need/ and

organi;ational training need/ and planning to fulfill tho/e need/.

Performan-e apprai/al/ are important for /taff moti4ation, attitude and beha4iour

de4elopment, -ommuni-ating organi;ational aim/, and en-ouraging po/iti4e


50/105

relation/hip/ between management and /taff. In /hort, performan-e and job apprai/al/

are 4ital for managing the performan-e of people and organi;ation/.

Performan-e apprai/al/, thu/, help in a-hie4ing the following obje-ti4e/:

Performan-e mea/urement /hort, medium and long term.

)larifying and defining prioritie/ and obje-ti4e/.

Moti4ation through agreeing to helpful aim/ and target/.

Moti4ation through a-hie4ement and feedba-5.

A//e//ing the training need/ and learning de/ire/ indi4idual and organi;ational.

Identifi-ation of per/onal /trength/ and dire-tion, in-luding unu/ed hidden

/trength/.

)areer and /u--e//ion planning per/onal and organi;ational.

2eam role/ -larifi-ation and team building.

Apprai/ee and manager mutual awarene//, under/tanding and relation/hip.

e/ol4ing -onfu/ion/ and mi/under/tanding/.

einfor-ing organi;ational philo/ophie/, 4alue/, aim/, /trategie/, prioritie/, et-.

+elegation, additional re/pon/ibilitie/, employee growth and de4elopment.

)oun/eling and feedba-5.

Manager de4elopment all good manager/ /hould be able to -ondu-t apprai/al/

well, itE/ a fundamental pro-e//.

@ellprepared and well-ondu-ted performan-e apprai/al/ pro4ide unique

opportunitie/ to help apprai/ee/ andmanager/ impro4e and de4elop, and thereby al/o

the organi;ation/ for whom they wor5.

WHEN OF APPRAISAL


51/105

2he Wwhen? an/wer/ the query about the frequen-y of apprai/al. 2he time period

between two appri/al/ 4arie/ -on/iderably with different organi;ation/. Apprai/al/ are

-ondu-ted by organi;ation/ e4ery three month/, e4ery /i> month/ or /ometime/ e4en

annually. Sugge/ted time period/ in-lude three and /i> month apprai/al/, a/ during

thi/ time the employee i/ learning the e>pe-tation/ of the job and the -ompany.

Performan-e apprai/al/ are effe-ti4e and u/eful during the beginning period of

employment, at /et inter4al/ or when an employee -hange/ job dutie/. New

employee/ are rated more frequently than the older one/.

Apprai/al/ /hould immediately be followed by di/-u//ion/ between the apprai/er and

the employee who ha/ been apprai/ed. 'ffe-ti4e management require/ timely

feedba-5 to an employee not % month/ after an e4ent o--ur/.

A performan-e apprai/al /hould be a re-ap of the time period for whi-h the re4iew i/

ba/ed. ed and informal. All barrier/ /hould be remo4ed.


52/105

HOW OF APPRAISAL

3nder Whow?, the -ompany mu/t de-ide what different method/ are a4ailable and

whi-h of the/e may be u/ed for performan-e apprai/al. *n the ba/i/ of the

-omparati4e ad4antage/ and di/ad4antage/ it i/ de-ided whi-h method would /uit the

purpo/e be/t.

*n-e thi/ ha/ been done, the pro-e// of apprai/al begin/. Fir/t of all, the apprai/er

/hould -olle-t all the rele4ant data, re-ord/, report/ et- of pre4iou/ performan-e of the

apprai/ee and hi/ -urrent job profile. 2he apprai/ee /hould be informed of the

apprai/al well in ad4an-e /o that he ha/ enough time to -olle-t the ne-e//ary

do-ument/ regarding hi/ pre4iou/ performan-e/ et-.

At the time of the apprai/al, the apprai/er /hould be friendly and warm. 6e /hould try

to put the apprai/ee at ea/e, a/ he may well be terrified. 2he apprai/er /hould try to

re/i/t judging the apprai/ee a--ording to hi/ own /tyle and approa-h and in/tead

pro4ide a good neutral ba/i/ for the di/-u//ion, free of bia/ and per/onal 4iew/.

An o4erall plan /hould be agreed with the apprai/ee, whi-h /hould ta5e a--ount of the

job re/pon/ibilitie/, the apprai/eeE/ -areer a/piration/, the organi;ationE/ prioritie/ et-.

2he plan -an -ontain an o4er4iew of the organi;ation?/ /hort, medium and longterm

a/pe-t/, but importantly it mu/t be agreed and reali/ti-.

2he 5ey to a//e//ing an employeeE/ performan-e i/ the /etting of obje-ti4e/. A 5ey

element of the performan-e apprai/al pro-e// /hould be re4iewing how well the

employee ha/ performed in relation to obje-ti4e/ that ha4e pre4iou/ly been /et for

them.

For obje-ti4e/ to be u/eful, it i/ often /aid they /hould be SMA2.

Spe-ifi-

Mea/urable

A-hie4able Agreed

Re/ult oriented
http://en.wikipedia.org/wiki/SMART_(project_management)http://en.wikipedia.org/wiki/SMART_(project_management)


53/105

Time framed


54/105

2he apprai/er /hould in4ite que/tion/ or querie/ from the apprai/ee and ma5e /ure to

/ati/fy them. (a/tly, the apprai/er /hould than5 the apprai/ee for their -ontribution to

the meeting and their effort through the year, thu/ helping in -lo/ing the apprai/al on a

po/iti4e note.

Apprai/al/ -an be-ome 4ery po/iti4e and enjoyable a-ti4itie/ if the abo4e mentioned

guideline/ are followed.

Apprai/al/ are not ju/t about job

performan-e and job /5ill/ training. 2hey /hould fo-u/ on helping the Ewhole per/onE

to grow and attain fulfillment.

L&!&t0t&;1" ; A77#0&"03

A. Problem/ with Apprai/al Method/

7. Fa-tor/ Affe-ting the Apprai/al

). '//ential/ of a


55/105

PROBLEMS WITH APPRAISAL METHODS

A performan-e apprai/al -ontain/ three /tep/ defining the job, apprai/ing

performan-e and pro4iding feedba-5. Some apprai/al/ fail be-au/e /ubordinate/ are

not told ahead of time e>a-tly what i/ e>pe-ted of them in term/ of good performan-e.

*ther/ fail be-au/e of problem with the form or pro-edure u/ed to a-tually apprai/e

the performan-e. Still other problem/ ari/e during the inter4iewfeedba-5 /e//ion,

whi-h in-lude arguing and poor -ommuni-ation/.

Problem/ -an o--ur at any /tage in the e4aluation pro-e//. Some of the pitfall/ to

a4oid in performan-e apprai/al are:

!. U1830# 7#;#!018 "t01'0#'"9 @ithout /tandard/, there -an be no obje-ti4e

e4aluation of re/ult/, only a /ubje-ti4e gue// or feeling about performan-e. Standard/

/hould be e/tabli/hed by analy;ing the job output, to en/ure that /tandard/ are job

related. 2ho/e /tandard/ that are rea/onable, but -hallenging ha4e the mo/t potential

to moti4ate.

.6 U" ; 0%"t#08t :;#'9Problem/ of e4aluation /tandard/ might ari/e be-au/e of the

u/e of 4ery -ommon word/ for grading, 4i;. good, adequate, /ati/fa-tory and

e>-ellent, whi-h mean differently to different e4aluator/.

*6 R0t ##;#"9ate error/ in-lude rate/ bia/ or prejudi-e, halo effe-t, -on/tant error,

-entral tenden-y, and fear of -onfrontation et-.

6 P;;# '%085 t; !73;"9Standard/ andor rating/ mu/t be -ommuni-ated to

the employee in order to for the performan-e e4aluation to be effe-ti4e.

6N20t&@ 8;!!$1&80t&;192he e4aluation pro-e// i/ hindered by -ommuni-ation

of negati4e attitude/, /u-h a/ infle>ibility, defen/i4ene// et-.

>6F0&3$# t; 0773 @03$0t&;1 '0t09Failure to u/e e4aluation/ in per/onnel de-i/ion

ma5ing and per/onnel de4elopment -ontradi-t/ the primary purpo/e of performan-e

e4aluation/. 2he u/e and analy/i/ of multiple -riteria a/ well a/ the frequen-y of

e4aluation al/o pre/ent problem/.


56/105

FACTORS AFFECTING THE APPRAISAL

A wellde/igned performan-e apprai/al /y/tem might fail to bring about the de/ired

re/ult/ if the apprai/er/ are not properly trained. 2he apprai/er/ or rater/ often /uffer

from the following 5ind/ of error/ or wea5ne//e/:

-6 H03; ##;#=It o--ur/ when the rater allow/ one a/pe-t of a man?/ -hara-ter or

performan-e to influen-e hi/ entire e4aluation. In other word/, a /uper4i/or?/ rating of

a /ubordinate on one trait, bia/e/ the rating of that per/on on other trait/.

7eing aware of thi/ problem i/ a major /tep toward a4oiding it. *ne way of

minimi;ing the effe-t of halo error i/ to ha4e the /uper4i/or judge all of hi/

/ubordinate/ on a /ingle fa-tor or trait, before going on to ne>t. In thi/ manner, he -an

-on/ider all of the men, relati4e to a /tandard or to ea-h other, on ea-h trait.

.6 C1t#03 t1'18=It i/ perhap/ the mo/t -ommonly found error in performan-e

apprai/al. 2hi/ error o--ur/ when the rater i/ in doubt about the /ubordinate/, or ha/

inadequate information about them, or i/ gi4ing le// attention and effort to the rating

pro-e//. So he may play it /afe by neither -ondemning nor prai/ing the /ubordinate/

and may rate them Wa4erage/?. Su-h a re/tri-tion -an di/tort the e4aluation/, ma5ing

them le// u/eful for promotion, /alary, or -oun/eling purpo/e/. an5ing employee/

in/tead of u/ing a graphi- rating /-ale -an a4oid thi/ -entral tenden-y problem.

*6 L1&18 ;# "t#&8t1""=Some /uper4i/or/ ha4e a tenden-y to be ea/y rater/ and

/ome other/, to be har/h in their rating/. (enient or ea/y rater/ a//ign -on/i/tently

high 4alue/ or /-ore/ to their /ubordinate/ and /tri-t or har/h rater/ gi4e -on/i/tently

low rating/. Stri-tne//lenien-y i/ not a 4ery major problem.

6 P#";103 %&0"= '4aluator?/ bia/ toward /ome employee/ -an influen-e their

e4aluation. An effe-ti4e training of the e4aluator -an remo4e thi/ bia/. Mode of

e4aluation/ and promotion/ /hould be e>amined by manager/, to -he-5 a po//ible

di/-rimination at the time of e4aluation and ma5e amend/ to redu-e thi/ bia/.

6 R81t Bh0@&;# B&0"


57/105

employee/ being aware of thi/ tenden-y /how better re/ult/ when they feel that they

are being ob/er4ed and the report of their performan-e i/ to be -omplied /oon.

Su-h apprai/al problem/ -an be a4oided by following /ome /imple yet effe-ti4e

guideline/. 2here are at lea/t three way/ to minimi;e the impa-t of apprai/al

problem/:

F"t, be /ure to be familiar with the problem. 3nder/tanding the problem -an help to

a4oid it.

S8;1', -hoo/e the right apprai/al tool. 'a-h tool /u-h a/ the graphi- rating /-ale or

-riti-al in-ident method ha/ it/ own ad4antage and di/ad4antage/.

Th', training /uper4i/or/ to eliminating error/ /u-h a/ halo, lenien-y, and -entral

tenden-y -an help them a4oid the/e problem/.

ESSENTIALS OF A GOOD APPRAISAL SYSTEM

A program of performan-e apprai/al mu/t -on/ider the following e//ential point/ for it

to be effe-ti4e:

-6 It !$"t % 0"&3 $1'#"t01'0%36 If the /y/tem i/ too -omple> or too time

-on/uming, it may be an-hored to the ground by it/ own weight of -ompli-ated form/

whi-h nobody but the e>pert/ under/tand.

.6 Th 077#0&"#" "h;$3' % 2&@1 t#0&1&12%;#h01'6 Super4i/or/ re/pon/ible for

performan-e apprai/al /hould be well trained in the art and /-ien-e of performan-e

apprai/al to en/ure uniformity, -on/i/ten-y and reliability.

*6 It !$"t h0@ th "$77;#t ; 033 7;73 :h; 0'!&1&"t# &t6


58/105

If the line people thin5 it i/ too theoreti-al, too ambitiou/, and too unreali/ti- or that

the management ha/ impo/ed it on them, they will di/li5e it. Similarly, if they feel that

their role i/ not 4ery important they will not ta5e the /y/tem /eriou/ly.

6 Th ""t! "h;$3' % "$&8&1t3 2#;$1'' &1 th #$!1t" ; th

;#201&40t&;16It /hould refle-t the 4alue /y/tem of the organi;ation. In fa-t, it /hould

tell the employee/ what /et of a-ti4itie/ or what qualitie/ are -on/idered de/irable by

the organi;ation. A/ /u-h, it /hould ha4e lin5age with the job de/-ription.

6 Th ""t! "h;$3' % %;th @03&' 01' #3&0%36 2he 4alidity of rating/ i/ the

degree to whi-h they are truly indi-ati4e of the merit of the employee/. 7oth 4alidity

and reliability re/ult from obje-ti4ity. 2he apprai/al /y/tem/ of many organi;ation/

la-5 thi/, without ta5ing into a--ount their merit. 2hi/ produ-e/ out/tanding

performer/ but not out/tanding performan-e and rai/e/ doubt/ about the 4alidity of the

/y/tem.

>6 Th ""t! "h;$3' h0@ %$&3t=&1 &181t&@, that i/, a reward /hould follow

/ati/fa-tory performan-e. 2hi/ rai/e/ the morale of the employee/ and in turn re/ult/

in impro4ement in performan-e.

6 Th ""t! "h;$3' % ;71 01' 70#t&8&70t&@6It /hould in4ol4e employee/ in the

goal/etting pro-e//. 2hi/ help/ in planning performan-e better.

?6 Th ""t! "h;$3' ;8$" !;# ;1 th '@3;7!1t 01' 2#;:th ; !73;"

than on generating data for admini/trati4e de-i/ionma5ing relating to promotion/,

in-rement/ et-.


59/105

It mu/t help in identifying employee/? /trength/ and wea5ne//e/ and indi-ate

-orre-ti4e a-tion/.

6 Th ""t! "h;$3' % 7#&;'&8033 @03$0t' t; % "$# th0t &t &" 8;1t&1$&12 t;

!t &t" 2;03". 2hi/ will -he-5 the danger of the -riteria of apprai/al be-oming

/ubje-ti4e rather than the obje-ti4e. Furthermore, the /y/tem may be-ome rigid in a

tangle of rule/ and pro-edure/, many of whi-h are no longer u/eful.

-+6 Th# "h;$3' % 7#;@&"&;1 ;# 07703"6 2he employee/ /hould ha4e the right to

appeal again/t apprai/al/ to en/ure -onfiden-e of the employee/ and their

a//o-iationunion/. 2he employee/ /hould be gi4en an opportunity to e>pre// their

feeling/ on the performan-e report/.

Eth&8" ; A77#0&"03

In performan-e apprai/al, the ethi-/ of apprai/al /hould get due -on/ideration failing

whi-h many organi;ational problem/ may -rop up and the 4ery purpo/e of apprai/al

may be defeated. 2he e//en-e of the apprai/al i/ that one performan-e i/ ma5ing

judgment/ about -ertain a/pe-t/ of another. Although he i/ not ma5ing a total

judgement of the other per/on?/ worth, but it i/ true that he i/ judging hi/ re/ent or

future u/efulne// to a job or an organi;ation. 2herefore, the apprai/er/ /hould

approa-h employee apprai/al a/ a thoughtful, /eriou/ matter for whi-h they are

a--ountable. In thi/ regard, manager/ need to apply a few /imple rule/, whi-h will

-ontribute to their ethi-al handling of the apprai/al /ituation/.

2he e//ential -omponent/ of an effe-ti4e performan-e apprai/al are a/ follow/:

-6 Dt#!&10t&;1 ; 7$#7;"


60/105

per/on/ /hould apprai/e the performan-e of one man independently, in order to ha4e

obje-ti4e re/ult/.

*6 E"t0%3&"h&12 "t01'0#'" ; 7#;#!018=2he /tandard/ of performan-e /hould be

laid down in -learly and -ommuni-ated to the /ubordinate/ well in ad4an-e. 2hi/ will

help the /ubordinate/ in under/tanding the e>pe-tation/ of the management.

6 F#$18 ; 077#0&"03=2he frequen-y of apprai/al /hould be determined by the

obje-ti4e and /-ope of performan-e apprai/al.

6 P#70#0t&;1 ; ;#!" Suitable form/ /hould be de/igned to help the apprai/er/ in

their wor5. 2he form /hould be related to the job and the -ontent/ and de/ign of the

form/ /hould refle-t the obje-ti4e/ of the performan-e apprai/al program/.

>6 C;1@&12 ; #"$3t"= 2he re/ult/ of the apprai/al whether po/iti4e or negati4e,

/hould be -on4eyed to the employee/ in a -on/iderate manner. Al/o, -ertain /tep/

/hould be ta5en ba/ed on the finding/ of the e4aluation, li5e -ondu-ting training/ or

pro4iding -oun/eling, for the de4elopment of the employee/ et-. 2o /um up,

performan-e apprai/al /hould be an obje-ti4e a//e//ment, balan-ed on judgment/ and

unbia/ed e4aluation on the job of any performer by hi/ /uperior.

THE EVALUATION PROCESS

ESTABLISH PERFORMANCE

STANDARDS

COMMUNICATE PERFORMANCE

EPECTATIONS TO EMPLOYEES

MEASURE ACTUAL PERFORMANCE

PERFORMANCE

COMPARE ACTUAL PERFORMANCE WITH

STANDARDS

DISCUSS THE APPRAISAL WITH THE

EMPLOYEE

IF NECESSARY, INITIATE CORRECTIVE

ACTION


61/105

THE EVALUATION PROCESS

ESTABLISH PERFORMANCE STANDARDS

At the time of de/igning a job and formulating a job de/-ription, performan-e

/tandard/ are u/ually de4eloped for the po/ition. 2he/e /tandard/ /hould be -lear and

not 4ague, and obje-ti4e enough to be under/tood and mea/ured. 2he/e /tandard/

/hould be di/-u//ed to find out whi-h different fa-tor/ are to be in-orporated, weight/

and point/ to be gi4en to ea-h fa-tor and the/e then /hould be indi-ated on the

Apprai/al Form, and later on u/ed for apprai/ing the performan-e of the employee/.

COMMUNICATE PERFORMANCE EPECTATIONS TO THE EMPLOYEES

2he ne>t /tep i/ to -ommuni-ate the/e /tandard/ to the employee/, for the employee/

left to them/el4e/, would find it diffi-ult to gue// what i/ e>pe-ted of them. 2o ma5e

-ommuni-ation effe-ti4e feedba-5 i/ ne-e//ary from the /ubordinate to the manager.

Sati/fa-tory feedba-5 en/ure/ that the information -ommuni-ated by the manager ha/

been re-ei4ed and under/tood in the way it wa/ intended.

MEASURE ACTUAL PERFORMANCE

2o determine what a-tual performan-e i/, it i/ ne-e//ary to a-quire information about

it. @e /hould be -on-erned with how we mea/ure and what we mea/ure. Four /our-e/

are frequently u/ed to mea/ure a-tual performan-e:

Per/onal ob/er4ation/

Stati/ti-al report/

*ral report/

@ritten report/


62/105

COMPARE ACTUAL PERFORMANCE WITH STANDARDS

2he employee i/ appri/ed and judged of hi/ potential for growth and ad4an-ement.

Attempt/ are made to note de4iation/ between /tandard performan-e and a-tual

performan-e.

DISCUSS THE APPRAISAL WITH THE EMPLOYEE

2he re/ult/ of apprai/al are di/-u//ed periodi-ally with the employee/, where good

point/, wea5 point/ and diffi-ultie/ are indi-ated and di/-u//ed /o that performan-e i/

impro4ed.

IF NECESSARY, INITIATE CORRECTIVE ACTIONS9 )oa-hing, -oun/elling

may be done or /pe-ial a//ignment/ and proje-t/ may be /etO per/on/ may be deputed

for formal training -our/e/, and de-i/ion ma5ing re/pon/ibilitie/ and authority may be

delegated to the /ubordinate/. Attempt/ may al/o be made to re-ommend for /alary

in-rea/e/ or promotion/, if the/e de-i/ion/ be-ome plau/ible in the light of apprai/al/.

2he detail/ gi4en abo4e may 4ary from organi;ation to organi;ation but the/e /tep/

u/ually form the prin-ipal /tep/feature/ of a /ound e4aluation programme.

METHODS OF PERFORMANCE APPRAISAL

(0) GRAPHIC RATING SCALE METHOD

2he graphi- rating /-ale method pro4ide/ a form wherein, for ea-h per/on who i/ to

be rated, the number of qualitie/ and -hara-teri/ti-/ are enumerated, e.g. the

analyti-al ability, de-i/i4ene//, leader/hip, job performan-e, emotional /tability, et-.

*ne form of the rating /-ale i/ the -ontinuou/ /-ale wherein the rater pla-e/ a mar5

/omewhere on a -ontinuum a/ the tabular matter /how/.

WORK ATTITUDE

+ -+ - .+

N* IN+IFF''N2 IN2''S2'+ 'N263SIAS2I) 0I


63/105

2he rating /y/tem generally depend/ on the allo-ation of mar5/ in order to qualify.

2he mea/urement of performan-e. 2he e>a-t allo-ation of mar5/ to differentiate the

performan-e of one indi4idual from another i/, of -our/e, a deli-ate job.


64/105

the performan-e rating i/ done. 2he danger in /u-h a method i/ that it lead/ to a

danger where the /ubordinate/ feel that their bo// i/ breathing down their ne-5/.

Sometime/, it -reate/ a diffi-ulty in maintaining high morale.

F&3' R@&: S"t! Mth;'

2he e//en-e of thi/ method i/ that line offi-er/ do not them/el4e/ fill up the rating

formO in/tead repre/entati4e/ of the per/onnel department -ome to the /hop floor and

inter4iew the /uper4i/or/ to obtain pertinent information about employee/. 2hi/

information i/ then /ent to the /uper4i/or/ for appro4al. 2hen, the men are -ategori;ed

on thi/ ba/i/. )ompared to the /y/tem of per/onnel men a//e//ing dire-tly, thi/ /y/tem

ha/ a better potential for obje-ti4ity.

FREE FORM ESSAY METHOD

In thi/ form, no /-ale, -he-5li/t/ or other de4i-e/ are u/ed, but a /uper4i/or i/ /imply

required to write down hi/ impre//ion/ about an indi4idual on a /heet of paper. 2hi/

/y/tem ha/ ob4iou/ limitation/.

Ch853&"t" Mth;'

)he-5li/t method -an al/o be further /ub di4ided in two broad -ategorie/, 4i;O

W&2ht' Ch853&"t Mth;'

In thi/ /y/tem a large number of /tatement/ that de/-ribe a parti-ular job are gi4en.

'4ery /tatement ha/ a weight or /-ale 4alue atta-hed to it. @hile rating an employee

the /uper4i/or -he-5/ all tho/e /tatement/ that mo/t -lo/ely de/-ribe the beha4ior of

the indi4idual under atta-hment. A4eraging the weight/ of all the /tatement/ -he-5ed

by the rater then /-ore/ the rating /heet. A -he-5li/t i/ -on/tru-ted for ea-h job by

ha4ing per/on/ who are quite familiar with the job/. Budge/ then -ategori;e the/e

/tatement/ and weight/ are a//igned to the /tatement/ in a--ordan-e with the 4alue

atta-hed by the judge/. 2hi/ /y/tem, howe4er, in4ol4e/ too mu-h of /taff wor5 and i/

not fea/ible in a large underta5ing where great many job/ and men are in4ol4ed.


65/105

F;#8' Ch;&8 Mth;'

In thi/ /y/tem a rating form i/ /pe-ially -on/tru-ted for a type or group of job/ with a

group of four to fi4e /tatement/ for ea-h fa-tor. 2he apprai/er i/ a/5ed to pi-5 up the

/tatement, whi-h i/ the lea/t appli-able to the apprai/al. 2he weight age a//igned to

the /tatement/ i/ 5ept /e-ret from the /uper4i/or/. 2hey are only /uppo/ed to gi4e the

-orre-t de/-ription of the performan-e of the indi4idual in term/ of the higher offi-er

or the apprai/er a/ to whi-h i/ in fa4or and whi-h i/ again/t the indi4idual.

G#;$7 A77#0&"03 Mth;'9 2he group apprai/al method i/ in 4ogue in /ome

organi;ation/. +e-i/ion/ pertaining to promotion/, pay in-rea/e/, job -hange/ and

other /u-h i//ue/ are di/-u//ed in a meeting between the /uper4i/or/ and the

/ubordinate/.

M0102!1t % O%/8t&@9 +ougla/ M-


66/105

N (N=-).9 @here N i/ the number of per/on/ to be -ompared. 2hi/ method i/

illu/trated a/ under:

A 7 ) + ' FINA(

A "

7 $

) !

+ 1

' G

6erein, plu/ /ign 89 implie/ that the employee i/ -on/idered better and minu/ /ign 89

mean/ wor/e than other employee/. In the pair W)? get/ the highe/t number of plu/

/ign/, therefore, hi/ ran5 i/ the highe/t and /o on.

Paired -ompari/on method i/ ea/ier and /impler than ran5ing method. 7ut it i/

/ubje-ti4e be-au/e apprai/al i/ not ba/ed on /pe-ifi- job related performan-e.

Se-ondly, it be-ome/ 4ery -umber/ome when the number of employee/ to be related

i/ large.

C;1&'1t&03 R7;#t Mth;'9 2hi/ i/ traditional form of apprai/al u/ed in mo/t


67/105

planning, re-ruitment, /ele-tion, indu-tion, training, -ompen/ation, et-. -ontribution

on human re/our-e i/ the money 4alue of labor produ-ti4ity or 4alue added by human

re/our-e/. +ifferen-e between -o/t and -ontribution will refle-t the performan-e of

employee. 2hi/ method i/ /till in the tran/ition /tage and i/ therefore not popular at

pre/ent.

A""""!1t C1t# Mth;'9 An a//e//ment -enter i/ a group of employee/ drawn

from different wor5 unit/. 2he/e employee/ wor5 together on an a//ignment /imilar to

one they would be handling when promoted. 2he e4aluator/ ob/er4e and e4aluate

employee/ a/ they perform. '>perien-ed manager/ with pro4en ability /er4e a/

e4aluator/. 2hey e4aluate all employee/ indi4idually and -olle-ti4ely by u/ing

/imulation te-hnique/ li5e role playing, bu/ine// game/ and in ba/5et e>er-i/e/.

'mployee/ are e4aluated on job related -hara-teri/ti-/ -on/idered important for job

/u--e//. @ith a//e//ment -enter method, rater?/ per/onal bia/ i/ redu-ed. 7ut thi/ i/ a

time -on/uming and e>pen/i4e method. Further, the -andidate who re-ei4e/ negati4e

report may feel demorali;ed.

Th H03; E8t ;# E##;#9 2he halo effe-t i/ a tenden-y to let a//e//ment of an

indi4idual?/ onetrait influen-e/ the e4aluation of that per/on on other /pe-ifi- trait/.

2he halo effe-t refer/ to the tenden-y to rate an indi4idual -on/i/tently high or low or

a4erage on the 4ariou/ trait/, depending upon whether the rater?/ o4erall impre//ion

of the indi4idual i/ fa4orable or not. 2he halo effe-t/ ari/e when trait/ are unfamiliar,

ill defined and in4ol4e per/onal relation/.

2hi/ often o--ur/ when an employee tend/ to be more -on/-ientiou/ and dependable,

that the apprai/er might be-ome bia/ed toward/ that indi4idual to the e>tent that the

apprai/er rate/ him high on many de/irable attribute/O or when the employee i/ more

friendly or unfriendly toward/ the apprai/er.

P#;%3!" ; P#;#!018 A77#0&"039 2he ideal approa-h to performan-e e4aluation

i/ that in whi-h the e4aluator i/ free from per/onal bia/e/, prejudi-e/, and

idio/yn-ra/ie/. 6owe4er, a /ingle foolproof e4aluation method i/ not a4ailable.

Inequitie/ in e4aluation often de/troy the u/efulne// of the performan-e /y/tem


68/105

re/ulting in ina--urate, in4alid apprai/al/, whi-h are unfair too. 2here are many

/ignifi-ant fa-tor/, whi-h deter or impede obje-ti4e e4aluation. 2he/e fa-tor/ are:

L1&18 ;# St#&8t1"" T1'18 ;# C;1"t01t E##;#

elati4e to the true and a-tual performan-e an indi4idual e>hibit/, /ome /uper4i/or/

ha4e a tenden-y to be liberal in the rating i.e. they -on/i/tently a//ign high 4alue/ to

the employee, while at other time/ they may ha4e a tenden-y to a//ign low rating/.

2he former tenden-y i/ 5nown a/ po/iti4e lenien-y error, while the latter a/ negati4e

lenien-y error. 7oth the/e trend/ u/ually ari/e from 4arying /tandard/ of performan-e

ob/er4ed by /uper4i/or/ and from different interpretation of what they e4aluate in

employee performan-e.

Th C1t#03 T1'18 P#;%3!

It i/ the mo/t -ommonly found error. It a//ign/ a4erage rating/ to all the employee/

with a 4iew to a4oiding -ommitment/ or in4ol4ementO or when the rater i/ in doubt or

ha/ inadequate information or la-5 of 5nowledge about the beha4ior of the employee

or when he doe/ not ha4e mu-h time at hi/ di/po/al. Su-h tenden-y /eriou/ly di/tort/

the e4aluation/, ma5ing them mo/t u/ele// for promotion, /alary or -oun/eling

purpo/e/.

S&!&30#&t E##;#

PROBLEMSOF

PERFORMANCE

APPRAISAL

SOCIAL

DIFFERENTIATION

MISCELLANEOUS

BIASES

L1&18

St#&8t1""

T1'18

HALO EFFECT

CENTRAL

TENDENCY

SIMILARITY

ERROR


69/105

2hi/ type of error o--ur/ when the e4aluator rate/ other people in the /ame way he

per-ei4e/ him/elf. For e>ample, the e4aluator who per-ei4e/ him/elf a/ aggre//i4e

may e4aluate other/ by loo5ing for aggre//i4ene//. 2ho/e who /how thi/

-hara-teri/ti- may be benefited while other/ may /uffer. 2hi/ error al/o wa/he/ out if

the /ame e4aluator apprai/e/ all people in the organi;ation.

S;8&03 Dt&0t&;1

ating i/ /ometime/ impeded by the e4aluator?/ /tyle of rating beha4ior. Pigou ha/

-la//ified rater/ a/: high differentiator/ i.e. u/ing all or mo/t of the /-ale. 6e

ob/er4e/: low differentiator/ tend to ignore or /uppre// differen-e/, per-ei4ing the

uni4er/e a/ more uniform than it really i/. 6igh differentiator/, on the other hand, tend

to utili;e all a4ailable information to the utmo/t e>tend and, thu/, are better able to

per-eptually deny anomalie/ and -ontradi-tion/ than low differentiator/. So-ial

differentiator/ ma5e e4aluation u/ing trait -riteria unreliable.

M&"83301;$" B&0""

7ia/ again/t employee/ on ground of /e>, ra-e, religion or po/ition i/ al/o -ommon

error in rating. 7e/ide/ the/e, there may be opportunity bia/, group -hara-teri/ti- bia/

and 5nowledgeofpredi-tor bia/.

PERFORMANCE APPRAISAL IN INDIAN INDUSTRIES

A. Apprai/al in


70/105

APPRAISAL IN GOVERNMENT DEPARTMENTS

2he go4ernment i/ the bigge/t employer in the -ountry. It/ /u--e// ultimately depend/

upon how well or badly it/ employee/ perform on their job/. 7ut the e>i/ting

/y/tem of performan-e apprai/al doe/ not help the go4ernment to identify the

/trength/ and wea5ne//e/ of it/ employee/, or to ta5e -orre-ti4e a-tion by way

of promoting the /trength/ and remo4ing the /hort-oming/.


71/105

2he /y/tem i/ not de/igned to impro4e the performan-e of the employee/. It i/ u/ed

mainly a/ a mean/ to di/-ipline employee/, or a/ a /our-e of -olle-ting

information required for -ertain admini/trati4e purpo/e, li5e ta5ing de-i/ion on

promotion/. Mo/t flaw/ in the e>i/ting /y/tem of performan-e e4aluation in u/e

in a go4ernment originate from the la-5 of -larity about ba/i- obje-ti4e/. If one

analy/e/ a performan-e apprai/al form in u/e in a go4ernment department, one

will noti-e a li/t of per/onalityoriented trait/ li5e ;eal, 5eenne//, loyalty,

per/onality, patien-e, re/our-efulne//, ta-t, temperament et-. 2he job -entered

trait/ are either -on/pi-uou/ by their ab/en-e or their number i/ in/ignifi-ant.

2a5e, for in/tan-e, loyalty. 2he a//e//ment of /u-h a trait may 4ary with the 4iewpoint

of the apprai/er. In -a/e, hi/ interpretation empha/i;e/ the per/onal loyalty of

the employee toward/ him, itmay re/ult in hi/ gi4ing high grading to Wye/ men?

in the department and low grading to tho/e who are not loyal or dependable in

that /en/e of the term.

2he te-hnique, whi-h i/ u/ed in go4ernment department/, i/ 5nown a/ the graphi-

rating /-ale method. At the end of e4ery year, a -onfidential report form

-ontaining a li/t of per/onality and beha4ioural trait/ i/ pre/ented to the rater,

who i/ required to indi-ate the degree of the trait po//e//ed by the employee by

u/ing predetermined phra/e/ or adje-ti4e/ li5e out/tanding, 4ery good, good,

/ati/fa-tory, poor, abo4e a4erage, a4erage. 2he u/e of the/e /ummary

e>pre//ion/ re/tri-t/ the /-ope of the apprai/ing offi-er to bring out the realitie/

of employee performan-e.

2he apprai/al form pre/-ribed for /ome go4ernment department/ doe/ not require the

apprai/ing offi-er/ to u/e /u-h e>pre//ion/, but in their -a/e/ the entire

e4aluation i/ done under one broad heading of general a//e//mentQ. @hen the

grading i/ done on the ba/i/ of o4erall impre//ion, it ha/ a greater ri/5 of being

/ubje-ti4e than the /pe-ifi- trait/ bound apprai/al. It al/o doe/ not pro4ide a

-omplete pi-ture of the /trength/ and wea5ne//e/ of an offi-er in re/pe-t of

/pe-ifi- fa-tor/ rele4ant to hi/ job.


72/105

)on/iderable re/ear-h ha/ been done in the field of management to impro4e the

traditional method/ of apprai/al in order to redu-e the element/ of /ubje-ti4ity.


73/105

aid the employee/ in 5nowing their /ubordinate/. Al/o they help them to 5now their

progre//, training de4elopment.

2he apprai/al in publi- enterpri/e/ i/ -ondu-ted on the ba/i/ of -ertain /tandard/ and

-riteria. 2he obje-ti4e/ 4ary from enterpri/e to enterpri/e. Some of the parameter/

may -hange due to e>ternal or e4en internal fa-tor/ /ub/equent to the /etting up of the

enterpri/e. 2he enterpri/e/ ha4e their long and /hort term -apital and operational

plan/. 2he/e pro4ide another /et of referen-e point/ for a//e//ment of the

performan-e. )o/t effi-ien-y i/ another important ba/i/ for apprai/ing performan-e.

7a/i-ally, the /tru-ture of a publi- /e-tor would in-lude the law/, regulation/ and

pra-ti-e/ go4erning re-ruitment, promotion/, and the prin-iple/ of the hierar-hy. 2he

-ulture of the organi;ation, on the other hand, will influen-e the informal -ode/, rule/,

norm/, and beha4ioural pra-ti-e/ of publi- /er4ant/ in relation to the o4erall /tru-ture

of the organi;ation. In the -a/e of the publi- /e-tor, there i/ the problem of

e/tabli/hing pre-i/e and mea/urable -riteria by whi-h performan-e -an be a//e//ed. In

mo/t in/tan-e/, a primary obje-ti4e of the apprai/al /y/tem i/ that it pro4ide/ reward/

for /ati/fa-tory performan-e. 2he human re/our-e management ha/ redefined

-on4entional pro-edure/ of re-ruitment, /ele-tion, promotion, and di/-ipline and ha/

empha/i;ed the need to in-rea/e produ-ti4ity by introdu-ing performan-e /y/tem/ and

/tandard/ and lin5ing them to reward/.


74/105

APPRAISAL IN PRIVATE ORGANIZATIONS

In organi;ation/ falling under the pri4ate /e-tor, mo/t -ompanie/ ha4e formal

performan-e apprai/al /y/tem/ or meritrating program/, whi-h are found 4ery u/eful

in the area/ /u-h a/ the ability to ta5e de-i/ion/, -oordination with -olleague/ and

/uperior/ and rai/e in the o4erall performan-e of the employee/.

2he /u--e// of the/e plan/ depend/ on the -are with whi-h they are planned, operated

and -ontrolled. It i/ e//ential that the apprai/al or meritrating plan/ mu/t not be u/ed

beyond their -apa-itie/.

PERFORMANCE APPRAISAL IN MARUTI SUZUKI

Th" 0# * 5&1'" ; P#;#!018 A77#0&"03 ;#!" th#;$2h :h&8h th !7-;"

0# 077#0&"'6

i9 Manager/ Performan-e Apprai/al form.

ii9 Super4i/or/ Performan-e Apprai/al form

iii9 'mployee/ Performan-e Apprai/al form.

Potential of employee i/ e4aluated after e4ery D month/. MA32I S33KI al/o ha/

a /elf apprai/ing /y/tem.

R0t&12 &" '&@&'' &1 * 80t2;#&"6

i9 'mployee

ii9 Super4i/ory

iii9 Management

2he performan-e of e>e-uti4e/ and /uper4i/or i/ apprai/ed both by the apprai/er and

apprai/ee, a--ording to the e4aluation tran/fer/ and Promotion/ ta5e/ pla-e

Th "803 $"' ;# 033 th th# 80t2;#&" 0#6

i9 Poor

ii9 A4erage in

iii9


75/105

In the 'mployee Performan-e Apprai/al form the apprai/er/ a/ well a/ the apprai/ee/

-omment/ are ta5en after the apprai/er gi4e/ hi/ remar5/ after thi/ -omment/ of the

head of the department i/ ta5en along with Per/onnel Manager?/ and


76/105

Appearan-e


77/105

St7" t051 % MARUTI SUZUKI ;# 7#;#!018 077#0&"03 %3;: "t01'0#'"9

!. @arning letter/ are gi4en to the employee

$. 2ermination

". In-rement/ are held

1. Promotion/ are held

G. Pro4ide training

D. )oun/eling i/ gi4en

AWARDS FOR GOOD PERFORMANCE IN MARUTI SUZUKI9

M;1th3 B"t :;#5# A:0#' S8h!

AIM9 2o enhan-e the performan-e le4el and moti4ate po/iti4ely their wor5er/ for

a-hie4ing higher le4el of gue/t /ati/fa-tion.

SCOPE9 2hi/ /-heme /hall -o4er all -onfirmed employee/ of MA32I S33KI.

FEATURES9

!. All employee/ are judged obje-ti4ely by 6ead of +eptt on the following

parameter/:

Pun-tuality


78/105

All nomination/ /hould rea-h the 6 deptt. by $ thof ea-h month in the format

pro4ided. A meeting -haired by the e-ution

6igh le4el of initiati4e in gue/t /er4i-e/, po/iti4e -omment/ by gue/t/.

6igh degree of /elf impro4ement willingne// to learn and impro4e

Potential for further growth

'mployee mu/t ha4e made /ame tangible -ontribution to hi/her deptt/.

P#;8'$# ;# "38t&;19

2he /taff /ele-ted a/ 7e/t 'mployee on monthly ba/i/ in one -alendar yr 8April

Mar-h9 will be entitled to be 4oted by ea-h -on-erned deptt/ a/ employee of the year.

All nomination /hould rea-h the 6 deptt by !GthMar-h in the format pro4ided.

A meeting )haired by


79/105

path of lea/t re/i/tan-e be-au/e they 5now that the 7ig 7o// will que/tion them about

tho/e rated low or 4ery high.


80/105

Performance Appraisal at MARUTI SUZUKI

Documents

Transcript of Performance Appraisal at MARUTI SUZUKI