CHAPTER-I

INTRODUCTION

1
 INTRODUCTION OF THE STUDY

A major concern of every organization should be to contribute positively

towards the achievement of its objective. Organizational effectiveness is often equated with
managerial efficiency. A manager can ensure organizational effectiveness only by
guaranteeing the full utilization of human resource available through individual employees
under his guidance. Hence, it is always required for a manager to monitor and measure the
performance of employees.
Moreover, since the organization exists to achieve the goals, the degree of
success that individual employees have in reaching this individual goal is important in
determining organizational effectiveness. The assessment of how successful employees
have been at meeting their individual goal to comes a critical part of human resource
management. This leads to concept of performance appraisal.
A performance appraisal system functions as definitions of performance.
Performance appraisal is a method of evaluating the behaviour of employees
in the work spot, including both qualitative and quantitative aspects of job performance
indicates how an individual is fulfilling the job demands and it is always in terms of results.
Under performance appraisal not only the performance of an employee but also his
potential for development is evaluated.

Performance Appraisal is a systematic description of an employees job relevant strengths

and weaknesses.

In performance appraisal or merit rating refers to all the formal procedures

used in working organizations to evaluate the personalities and contributions and potential
group members. In appraisal system the employees merits like initiatives, dependability,
personality etc., are compared with others and ranked to rated. Appraisals might be based
on the criteria of employees skills, educational

2
qualifications, knowledge, abilities to delegate plans, supervise, assume responsibility,
exercise leadership, personal qualities, creativity, decision making and interpersonal skills.
An appraisal motivates an employee into increased effort aimed at enhancing the
outcome of the assessment. It tells an employee what set of activities or what qualities are
considered desirable by the organization.
It is the systematic method of obtaining, analyzing & recording information about an
employee that is needed:
For effective management of business.
By the manager to help him improve the jobholders performance and plan his
career.
By the jobholder to assist him to evaluate his own performance and develop
himself.
In performance planning and review, the Reporting Manager is expected to set
targets or tasks for the appraise in the beginning of the year. In the middle of the year, the
appraise fills the self-appraisal form, indicating the extent which the target or task has been
completed, the difficulties faced and the suggestions for improvement. At the end of the
year, there is the annual review and targets/tasks set for the next year. Both in the mid-year
review and annual review, the self-appraisal is supplemented by a performance review,
discussion, the problems are discussed and the appraiser is given feedback on how he is
doing.
The appraisal system is an instrument for improving the work culture by
convincing employees that their career growth is linked with the performance of the
company.

3
NEED FOR THE STUDY:
The need of the performance appraisal is to determine what aspects of performance
are required to be evaluated.
To identify those who are performing their assigned task well and those who are
not and the reason for such performance.

To provide information about the performance ranks basing on which decisions

regarded salary fixation, conformation, promotion, demotion and transfer are
taken.

To provide feedback information about the level of achievements and behavior of

an employee.
To provide information and counsel the employee.
To compare actual performance with the standards and in out deviations (positive
and negative)
To create and maintain satisfactory level of performance.
To prevent grievance and in disciplinary activity.
To facilitate fair and equitable compensation.
To ensure organizational effectiveness.
It guarantees useful information about employees and the nature of their duties.
We can briefly say that performance appraisal systems are necessities to
assess performance at regular intervals with consistency to study improvements, deviation
and to take corrective actions to bride gaps and improve performance over a period of time.

4
OBJECTIVES:
The objective is to know how effective is the execution of appraisal system
in PHOENIX MOTORS PVT LTD., Hyderabad.

The aim of most performance appraisal programming is to encourage the

employees to set his own objective for the next time period following the review of his past
performance. It enables the management to make effective decisions/ to modify earlier
decisions based on the evaluation of the existing plans, information

system, job analysis, and internal and external environment factors influencing employee
performance.
The objectives is to identify the common goals of the organization, define
each individuals major areas of responsibility in terms results expected of him, review the
individual performance progress in a job and his potential for future improvement. It aims
at providing data to managers with whom they may judge future job assignments and
compensation.

To establish an objective basis fro the different levels of performance and to

identify executives with potential to grow in the organization.

To counsel the employees appropriately regarding their strengths and

weaknesses and asses in developing them to realize they are full potential in line with the
companys objectives and goals. Always emphasize that the role of a manager is to offer
constructive support and not condemn. Give the employees many opportunities to ask
guidance to air grievances and discuss anxieties

5
 .SCOPE:
In the present study a attempt has been made to know the actual
implementation of performance appraisal techniques in general and some other aspects such
as awareness of the workers, effectiveness of the performance appraisal system in
particular.
Human resource projections are valid on appraisals. By improving job skills,
the employees have lot of scope for development and prepare themselves for higher
responsibilities.
A thorough analysis of the performance appraisal system will help the
management to know the short comings, if any. It also help the company in knowing
whether the performance appraisal techniques are used to full extent or not, there by the
researcher can understand the effective implement of the performance appraisal system.
METHODOLOGY & DATABASE:

The research methodology is a systematic way to solve the problem and it is

an important component of the study without which researcher may not be able to obtain
the facts and figures from the employees.
SOURCE OF DATA:
The study is based on primary as well as secondary data collected from
different sources:
A). Primary Data:
The primary data is collected with the help of questionnaires, which consists
of twenty questions each. The questionnaires are chosen because of its simplicity and
liability. Researcher can expect straight answers to the questions. The respondents are
informed about the significant of the study and requested to give their fair opinions.
B). Secondary Data:
Secondary data is collected through the documents provided by the personnel
department. The documents include personnel manuals, books, reports, journal, etc.

6
SAMPLING PROCESS:

A). Sample Unit:

The executives and employed at PHOENIX MOTORS PVT
LTD., Hyderabad constitute universe of the present study. A part of it is taken as sample
unit for the resent study. It includes JGMS, AGMS, manager and other employees of
PHOENIX MOTORS PVT LTD Hyderabad.
B). Sample Size:
The sample size consists of 50 respondents employed in
PHOENIX MOTORS PVT LTD, Hyderabad. Of these 15 are executives, 10 are senior
executives and the remaining 25 are employ
PERIOD OF THE STUDY:

Since so many years PHOENIX MOTORS PVT LTD

Hyderabad has been following the same procedure of appraisals for their executives and
employees and for the study of my project last on-year data has collected on performance
appraisals.

PLAN OF THE STUDY CHAPTERIZATIONS:

To shed light on introduction on subject background of study
The profile of the company
Present frame work regarding research design of the study
Explore performance appraisal process in PHOENIX MOTORS PVT LTD.,
Hyderabad
Exam in data, analysis and interpretation
Highlight summary of findings and conclusions
Offer suggestions and recommendations

7
 CHAPTER-II

INDUSTRIAL PROFILE
&
COMPANY PROFILE

8
Automobile industry in India

The automobile industry in India is the ninth largest in the world with an annual production
of over 2.3 million units in 2008 In 2009, India emerged as Asia's fourth largest exporter of
automobiles, behind Japan, South Korea and Thailand.

Following economic liberalization in India in 1991, the Indian automotive industry has
demonstrated sustained growth as a result of increased competitiveness and relaxed
restrictions. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki
and Mahindra and Mahindra, expanded their domestic and international operations. India's
robust economic growth led to the further expansion of its domestic automobile market
which attracted significant India-specific investment by multinational automobile
manufacturers. In February 2009, monthly sales of passenger cars in India exceeded 100,000
units.

bryonic automotive industry emerged in India in the 1940s. Following the independence, in
1947, the Government of India and the private sector launched efforts to create an automotive
component manufacturing industry to supply to the automobile industry. However, the
growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj
which hampered the Indian private sector. After 1970, the automotive industry started to
grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars
were still a major luxury. Japanese manufacturers entered the Indian market ultimately
leading to the establishment of Maruti Udyog. A number of foreign firms initiated joint
ventures with Indian companies.

In the 1980s, a number of Japanese manufacturers launched joint-ventures for building

motorcycles and light commercial-vehicles. It was at this time that the Indian government
chose Suzuki for its joint-venture to manufacture small cars. Following the economic
liberalization in 1991 and the gradual weakening of the license raj, a number of Indian and
multi-national car companies launched operations. Since then, automotive component and
automobile manufacturing growth has accelerated to meet domestic and export demands.

9
HISTORY OF THE TWO WHEELERS:

The Britannica Encyclopedia a motorcycle as a bike or tricycle propelled by an

internal combustion engine (or, less often by an electric engine). The automobile was the
reply to the 19th century reams of self-propelling the horse-drawn bikeriage. Similarly, the
invention of the motorcycle created the self propelling bicycle. The first commercial design
was three-wheeler built by Edward Butler in Great Britain in 1884. This employed a
horizontal single-cylinder gasoline engine mounted between two steer able front wheels and
connected by a drive chain to the rear wheel. The 1900s saw the conversion of many
bicycles or pedal cycles by adding small, centrally mounted spark ignition engine engines.
There was then felt the need for reliable constructions. This led to road trial tests and
competition between manufacturers. Tourist Trophy (TT) races were held on the Isle of main
in 1907 as reliability or endurance races. Such were the proving ground for many new ideas
from early two-stroke-cycle designs to supercharged multivalent engines mounted on
aerodynamic, bikebon fiber reinforced bodywork.

INVENTION OF TWO WHEELERS:

The invention of two wheelers is a much-debated issue. Who invented the first
motorcycle? May seem like a simple question, safety, bicycle, i.e., bicycle with front and
rear wheels of the same size, with a pedal crank mechanism to drive the rear wheel. Those
bicycles in turn described from high-wheel bicycles. The high wheelers descended from an
early type of pushbike, without pedals, propelled by the riders feet pushing against the
ground. These appeared around 1800, used iron banded wagon wheels, and were called
bone-crushers, both for their jarring ride, and their tendency to toss their riders. Gottiieb
Daimler (who credited with the building the first motorcycle in 1885, one wheel in the front
and one in the back, although it had a smaller spring-loaded outrigger wheel on each side. It
was constructed mostly of wood, the wheels were of the iron-banded wooden-spooked
wagon-type and it definitely had a bone-crusher chassis!

10
FURTHER DEVELOPMENTS:

Most of the developments during the early phase concentrated on three and four-wheeled
design since it was complex enough to get the machines running with out having to worry
about them falling over. The next notable two-wheeler though was the Hildebrand & Wolf
Mueller, patented in Munich in 1894. In 1895, the French firm of DeDion-button built and
engine that was to make the mass production and common use of motorcycle possible. The
first motorcycle with electric start and a fully modem electrical system; the Hence special
from the Indian Motorcycle Company astounded the industry in 1931. Before World War 1,
IMC was the largest motorcycle manufacturer in the world producing over 20000 bikes per
year.

INCREASING POPULARITY:

The popularity of the vehicle grew especially after 1910, in 1916; the Indian
motorcycle company introduced the model H racer, and placed it on sale. During World War
1, all branches of the armed forces in Europe used motorcycles principally for dispatching.
After the war, it enjoyed a sport vogue until the Great Depression began in motorcycles
lasted into the late 20th century; weight the vehicle being used for high-speed touring and
sport competitions. The more sophisticated of a 125cc model. Since then, an increasing
number of powerful bikes have blazed the roads.

HISTORICAL INDUSTRY DEVELOPMENTS:

Indian is the second largest manufacturer and producer to two wheelers in the World.
It stands next only to Japan and China in terms of the number of V produced and domestic
sales respectively. This destination was achieved due to variety of reason like restrictive
policy followed by the government of India towards the passenger bike industry, rising
demand for personal transport, inefficiency in the public transportation system etc. The
Indian two-wheelers industry made a small beginning in the early 50s when Automobile
products of India (API) started manufacturing scooters in the country. Until 1958, API and
Enfield were the sole producers.

11
 The two wheelers market was opened were opened to foreign competition in the
mid-80s. And the then market leaders-Escorts and Enfield were caught unaware by the
onslaught of the 100cc bikes of the four Indo- Japanese joint ventures. With the availability
of fuel-efficiency low power bikes, demand swelled, resulting in Hero Honda then the only
producer of four stroke bikes (100cc category), gaining a top slot.

The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki
and Hero Honda brought in the first two-stroke and four-stroke engine motorcycles
respectively. These two players initially started with assembly of CKD Kits, and later on
progressed to indigenous manufacturing.

The industry had a smooth ride in the 50s, 60s and 70s when government prohibited
new entries and strictly controlled capacity expansion. The industry saw a sudden growth in
the 80s. The industry witnessed a steady of 14% leading to a peak volume of 1.9 mn vehicles
in 1990.

In 1990 the entire automobile industry saw a drastic fall in demand. This resulted in a
decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4mn vehicles.
Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94.
Hero Honda showed a marginal decline in 1992.

The reason for recession in the sector were the incessant rise in fuel prices, high input
costs and reduced purchasing power due to significant like increased production in 1992, due
to new entrants coupled with recession in the industry resulted in companies either reporting
losses or a fall in profits.

CONCLUSION:

The two-wheelers market has had a perceptible shift from a buyers market to a sellers
market with a variety of choice, players will have compete on various fronts viz. pricing,
technology product design, productivity after sale service, marketing and distribution. In the
short term, market shares of individual manufacturers are going to be sensitive to capacity,
product acceptance, pricing and competitive pressures from other manufacturers.

12
 As incomes grow and people grow and people feel the need to own a private means of
transport, sales of two-wheelers will rise. Penetration is expected to increase to
approximately to more than 25% by 2005.

The motorcycle segment will continue to lead the demand for two-wheelers in the
coming years. Motorcycle sale is expected to increase by 20% yoy as compared to 1%
growth in the scooter market and 3% by moped sales respectively for the next two years.

The four-stroke scooters will add new dimension to the two-wheeler segment in the coming
future.

The Asian continent is that largest user of the two-wheelers in the world. This is due to poor
road infrastructure and low per capita income, restrictive policy on bike industry. This is due
to oligopoly between top five players in the segment, compared to thirsty manufacturers in
the bike industry.

Hero Honda motors LTd., is one of the leading companies in the two-wheeler
industry. At present it is the market leader in the motorcycle segment with around 47% the
market share during FY 2000 01. During the year, company posted a 41.15% yoy rise in
turnover to Rs.31, 686.5mn in motorcycles which driven by a 35.17% yoy rise in Motorcycle
sales volumes. The company has emerged as one of the most successful players, much ahead
of its competitions an account of its superior and reliable product quality complemented with
excellent marketing techniques. The company has been consistently addressing the growing
demand for motorcycles and has been cumulative customer base of over 4 million customers,
which is expected to reach 5min mark with rural and semi-urban segment being the new class
of consumers.

13
COMPANY PROFILE

14
 CORPORATE PROFILE

Hero MotoCorp 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 MotoCorp Ltd. continues to maintain this position
till date.

Today, every second motorcycle sold in the country is a Hero Honda bike. Every 30 seconds,
someone in India buys Hero Honda's top-selling motorcycle Splendor.

Vision
The Hero Honda story began with a simple vision the vision of a mobile and an empowered
India, powered by Hero Honda. This vision was driven by Hero Hondas commitment to
customer, quality and excellence, and while doing so, maintaining the highest standards of
ethics and societal responsibilities. Hero Honda believes that the fastest way to turn that
dream into a reality is by remaining focused on that vision.

Strategy
Hero Hondas key strategy has been driven by innovation in every sphere of activity
building a robust product portfolio across categories, exploring new markets, aggressively
expanding the network and continuing to invest in brand building activities.

Manufacturing
Hero Honda bikes are manufactured across three 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 is based at Haridwar,
in the hill state of Uttrakhand.
Technology

15
In the 1980s Hero Honda pioneered the introduction of fuel-efficient, environment friendly
four-stroke motorcycles in the country. Today, Hero Honda continues to be technology
pioneer. It became the first company to launch the Fuel Injection (FI) technology in Indian
motorcycles, with the launch of the Glamour FI in June 2006.
Products
Hero Honda's product range includes variety of motorcycles that have set the industry
standards across all the market segments. The company also started manufacturing scooter in
2006. Hero Honda offers large no. of products and caters to wide variety of requirements
across all the segments.

Distribution
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 Honda's extensive sales and
service network now spans close to 4500 customer touch points. These comprise a mix of
authorized dealerships, Service & Spare Parts outlets, and dealer-appointed outlets across the
country.

Brand

The company has been continuously investing in brand building utilizing not only the new
product launch and new campaign launch opportunities but also through innovative
marketing initiatives revolving around cricket, entertainment and ground- level activation.

Hero Honda has been actively promoting various sports such as hockey, cricket and golf.
Hero Honda was the title sponsor of the Hero Honda FIH Hockey World Cup that was played
in Delhi during Feb-March 2010. Hero Honda also partners the Commonwealth Games Delhi
2010.
2010-11 Performance

Total unit sales of 54,02,444 two-wheelers, growth of 17.44 per cent

Total net operating income of Rs. 19401.15 Crores, growth of 22.32 per cent
Net profit after tax at Rs. 1927.90 Crores

16
Total dividend of 5250% or Rs. 105 per share including Interin Dividend of Rs. 70 per share
on face value of each share of Rs. 2 each
EBIDTA margin for the year 13.49 per cent
EPS of Rs. 96.54

2009-10 Performance

Total unit sales of 46,00,130 two-wheelers, growth of 23.6 per cent

Total net operating income of Rs. 15860.51 Crores, growth of 28.1 per cent
Net profit after tax at Rs. 2231.83 Crores, growth of 74.1 per cent
Final dividend of 1500% or Rs. 30 per share on face value of each share of Rs. 2
EBIDTA margin for the year 17.4 per cent
EPS of Rs. 111.77, growth of 74.1 per cent

HERO HONDA'S MISSION

Hero Hondas mission is to strive for synergy between technology, systems and human
resources, to produce products and services that meet the quality, performance and price
aspirations of its customers. At the same time maintain the highest standards of ethics and
social responsibilities.

This mission is what drives Hero Honda to new heights in excellence and helps the
organization forge a unique and mutually beneficial relationship with all its stake holders.

HERO HONDA'S MANDATE

Hero Honda is a world leader because of its excellent manpower, proven management,
extensive dealer network, efficient supply chain and world-class products with cutting edge
technology from Honda Motor Company, Japan. The teamwork and commitment are
manifested in the highest level of customer satisfaction, and this goes a long way towards
reinforcing its leadership status

17
BOARD OF DIRECTORS

No. Name of the Directors Designation

1 Mr. Brijmohan Lall Munjal Chairman & Whole-time Director
2 Mr. Pawan Munjal Managing Director & C.E.O.
3 Mr. Toshiaki Nakagawa Joint Managing Director
4 Mr. Sumihisa Fukuda Technical Director
5 Mr. Sunil Kant Munjal Non-Executive Director
6 Mr. Suman Kant Munjal Non-Executive Director
7 Mr. Takashi Nagai Non-Executive Director
8 Mr. Yuji Shiga Non-Executive Director
9 Mr. Pradeep Dinodia Non-executive & Independent Director
10 Gen. (Retd.) V. P. Malik Non-executive & Independent Director
11 Mr. Analjit Singh Non-executive & Independent Director
12 Dr. Pritam Singh Non-executive & Independent Director
13 Ms. Shobhana Bhartia Non-executive & Independent Director
14. Mr. M. Damodaran Non-executive & Independent Director
15. Mr. Ravi Nath Non-executive & Independent Director
16. Dr. Anand C. Burman Non-executive & Independent Director

BRIEF PROFILE OF DIRECTORS

MR. BRIJMOHAN LALL MUNJAL

Mr. Brijmohan Lall Munjal is the founder Director and Chairman of the Company and the $
3.2 billion Hero Group. He is the Past President of Confederation of Indian Industry (CII),
Society of Indian Automobile Manufacturers (SIAM) and was a Member of the Board of the
Country's Central Bank (Reserve Bank of India). In recognition of his contribution to
industry, Mr. Munjal was conferred the Padma Bhushan Award by the Union Government.
Mr. Brijmohan Lall Munjal is currently on the board of the following companies:

No. Name of Company Nature of Office

1 Hero Honda Motors Limited Chairman and Whole-time Director

18
2 Hero Honda Finlease Limited Chairman and Director
3 Munjal Showa Limited Chairman and Director
4 Easy Bill Limited Director
5 Rockman Industries Limited Director
6 Shivam Autotech Limited Director

KEY MILESTONES OF HERO HONDA

Year Event
1983 Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan signed
Shareholders Agreement signed
1984 Hero Honda Motors Ltd. incorporated
1985 First motorcycle "CD 100" rolled out
1987 100,000th motorcycle produced
1989 New motorcycle model - "Sleek" introduced
1991 New motorcycle model - "CD 100 SS" introduced
500,000th motorcycle produced
1992 Raman Munjal Vidya Mandir inaugurated - A School in the memory of founder Managing
Director, Mr. Raman Kant Munjal
1994 New motorcycle model - "Splendor" introduced
1,000,000th motorcycle produced
1997 New motorcycle model - "Street" introduced
Hero Honda's 2nd manufacturing plant at Gurgaon inaugurated
1998 2,000,000th motorcycle produced
1999 New motorcycle model - "CBZ" introduced
Environment Management System of Dharuhera Plant certified with ISO-14001 by DNV
Holland
Raman Munjal Memorial Hospital inaugurated - A Hospital in the memory of founder Managing
Director, Mr. Raman Kant Munjal
2000 4,000,000th motorcycle produced
Environment Management System of Gurgaon Plant certified ISO-14001 by DNV Holland
Splendor declared 'World No. 1' - largest selling single two-wheeler model
"Hero Honda Passport Programme" - CRM Programme launched
2001 New motorcycle model - "Passion" introduced

19
 One million production in one single year
New motorcycle model - "Joy" introduced
5,000,000th motorcycle produced
2002 New motorcycle model - "Dawn" introduced
New motorcycle model - "Ambition" introduced
Appointed Virender Sehwag, Mohammad Kaif, Yuvraj Singh, Harbhajan Singh and Zaheer Khan
as Brand Ambassadors
2003 Becomes the first Indian Company to cross the cumulative 7 million sales mark
Splendor has emerged as the World's largest selling model for the third calendar year in a row
(2000, 2001, 2002)
New motorcycle model - "CD Dawn" introduced
New motorcycle model - "Splendor +" introduced
New motorcycle model - "Passion Plus" introduced
New motorcycle model - "Karizma" introduced
2004 New motorcycle model - "Ambition 135" introduced
Hero Honda became the World No. 1 Company for the third consecutive year.
Crossed sales of over 2 million units in a single year, a global record.
Splendor - World's largest selling motorcycle crossed the 5 million mark
New motorcycle model - "CBZ*" introduced
Joint Technical Agreement renewed
Total sales crossed a record of 10 million motorcycles
2005 Hero Honda is the World No. 1 for the 4th year in a row
New motorcycle model - "Super Splendor" introduced
New motorcycle model - "CD Deluxe" introduced
New motorcycle model - "Glamour" introduced
New motorcycle model - "Achiever" introduced
First Scooter model from Hero Honda - "Pleasure" introduced
2006 Hero Honda is the World No. 1 for the 5th year in a row

15 million production milestone achieved

20
2007 Hero Honda is the World No. 1 for the 6th year in a row
New 'Splendor NXG' launched
New 'CD Deluxe' launched
New 'Passion Plus' launched
New motorcycle model 'Hunk' launched
20 million production milestone achieved

2008 Hero Honda Haridwar Plant inauguration

New 'Pleasure' launched
Splendor NXG lauched with power start feature
New motorcycle model 'Passion Pro' launched
New 'CBZ Xtreme' launched
25 million production milestone achieved
CD Deluxe lauched with power start feature
New 'Glamour' launched
2009 Hunk' (Limited Edition) launched
Splendor completed 11 million production landmark
New motorcycle model 'Karizma - ZMR' launched
2010 Silver jubilee celebrations
New model Splendor Pro launched
2011 Launch of new Super Splendor and New Hunk

New licensing arrangement signed between Hero and Honda

Launch of new refreshed versions of Glamour, Glamour FI, CBZ Xtreme, Karizma
Crosses the landmark figure of 5 million cumulative sales in a single year

PROMINENT AWARDS TO THE COMPANY

Year Awards & Recognitions

Two-wheeler Manufacturer of the Year award by Bike India magazine.

2011
Adjudged the "Bike Manufacturer of the Year" at the Economic Times ZigWheels Car and
Bike Awards.
- CNBC Awaaz - Storyboard special commendation for "Effective rebranding of a new

21
 corporate entity" by CNBC Awaaz Consumer Awards
- "Most Recommended Two-Wheeler Brand of the Year" award by CNBC Awaaz
Consumer Awards
- Colloquy Loyalty Awards "Innovation in Loyalty Marketing International 2011" for
Hero GoodLife
- "Best Activity Generating Short or Long-Term Brand Loyalty" by the Promotion
2010 Marketing Award of Asia Order of Merit for Hero GoodLife
- Ranked No 1 brand in the Auto (Two-Wheelers) category in the Brand Equity "Most
Trusted Brand" 2011 survey

Company of the Year awarded by Economic Times Awards for Corporate Excellence 2008-
09.

CNBC TV18 Overdrive Awards 2010 'Hall of Fame' to Splendor

NDTV Profit Car & Bike Awards 2010 -

Two-wheeler Manufacturer of the Year
CnB Viewers' Choice Two-wheeler of the Year (Karizma ZMR)

Bike Maker of the Year by ET-ZigWheels Car & Bike of the Year Awards 2009

2009 'Two-wheeler Manufacturer of the Year' by NDTV Profit Car & Bike Awards 2009 and
Passion Pro adjudged as CNB Viewers' Choice two-wheeler

Top Indian Company under the 'Automobile - Two-wheelers' sector by the Dun &
Bradstreet-Rolta Corporate Awards

Won Gold in the Reader's Digest Trusted Brand 2009 in the 'Motorcycles' category

NDTV Profit Business Leadership Awards 2009 - two-wheeler category

2008 NDTV Profit Business Leadership Award 2008 - Hero Honda Wins the Coveted "NDTV
Profit Business Leadership Award 2008"
TopGear Design Awards 2008 - Hunk Bike of the Year Award
NDTV Profit Car India & Bike India Awards - NDTV Viewers Choice Award to Hunk
in Bike category
IndiaTimes Mindscape and Savile Row ( A Forbes Group Venture ) Loyalty Awards -
Customer and Brand Loyalty Award in Automobile (two-wheeler) sector
Asian Retail Congress Award for Retail Excellence (Strategies and Solutions of business
innovation and transformation) - Best Customer Loyalty Program in Automobile category

22
 NDTV Profit Car India & Bike India Awards - Bike Manufacturer of the year

Overdrive Magazine - Bike Manufacturer of the year

TNS Voice of the Customer Awards:
No.1 executive motorcycle Splendor NXG

No.1 standard motorcycle CD Deluxe

No. premium motorcycle CBZ Xtreme

2007 The NDTV Profit Car India & Bike India Awards 2007 in the following category:
Overall "Bike of the Year" - CBZ X-treme

"Bike of the Year" - CBZ X-treme (up to 150 cc category)

"Bike Technology of the Year" - Glamout PGM FI

"Auto Tech of the Year" - Glamout PGM FI by Overdrive Magazine.

"Bike of the Year" - CBZ X-treme by Overdrive Magazine.

Ranked CBZ X-treme "Bike of the Year" - by B S Motoring Magazine

Most Trusted Company , by TNS Voice of the Customer Awards 2006.

CD Deluxe rated as "No 1 standard motorcycle" by TNS Voice of the Customer Awards 2006.
2006 Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler
Company).

One of the 8 Indian companies to enter the Forbes top 200 list of worlds most reputed
companies.

No. 1 in automobile industry by TNS Corporate Social Responsibility Award.

Best in its class awards for each category by TNS Total Customer Satisfaction Awards
2006:
Splendor Plus (Executive)

23
 CD Deluxe (Entry)

Pleasure (Gearless Scooters)

Splendor & Passion - Top two models in two wheeler category by ET Brand Equity Survey
2006.

Adjudged 7th Top Indian Company by Wallstreet Journal Asia (Top Indian Two Wheeler
Company).

Top Indian company in the Automobile - Two Wheeler sector by Dun & Bradstreet -
American Express Corporate Awards 2006.

Hero Honda Splendor rated as India's most preferred two-wheeler brand at the Awaaz
Consumer Awards 2006.

Certificate of Export Excellence for outstanding export performance during 2003-04 for two-
wheeler & three- wheelers - Complete (Non SSI) by Engineering Export Promotion Council.

The NDTV Profit Car India & Bike India Awards 2006 in the following category:
Bike Maker of the Year

Bike of the Year - Achiever

Bike of the Year - Achiever (up to 150 cc category)
Bike of the Year - Glamour (up to 125 cc category)

NDTV Viewers' Choice Award to Glamour in the bike category

CORPORATE SOCIAL RESPONSIBILITY (CSR)

STAKEHOLDER TIES AT THE GRASSROOTS

Hero Honda Motors takes considerable pride in its stakeholder relationships, especially ones
developed at the grassroots. The Company believes it has managed to bring an economically
and socially backward region in Dharuhera, Haryana, into the national economic mainstream.

24
An Integrated Rural Development Centre has been set up on 40 acres of land along the Delhi-
Jaipur Highway. The Centre-complete with wide approach roads, clean water, and education
facilities for both adults and children-now nurtures a vibrant, educated and healthy
community.

The Foundation has adopted various villages located within vicinity of the Hero Honda
factory at Dharuhera for integrated rural development. This includes:

Installation of deep bore hand pumps to provide clean drinking water.

Constructing metalled roads and connecting these villages to the National Highway
(NH -8).
Renovating primary school buildings and providing hygienic water and toilet
facilities.
Ensuring a proper drainage system at each of these villages to prevent water-logging.
Promoting non-conventional sources of energy by providing a 50 per cent subsidy on
biogas plants.

The Raman Munjal Vidya Mandir began with three classes (up to class II) and 55 students
from nearby areas. It has now grown into a modern Senior Secondary, CBSE affiliated co-
educational school with over 1200 students and 61 teachers. The school has a spacious
playground, an ultra-modern laboratory, a well-equipped audio visual room, an activity room,
a well-stocked library and a computer centre.

The Raman Munjal Sports Complex has basketball courts, volleyball courts, and hockey
and football grounds are used by the local villagers. In the near future, sports academies are
planned for volley ball and basket ball, in collaboration with National Sports Authority of
India.

Vocational Training Centre

In order to help local rural people, especially women, Hero Honda has set up a Vocational
Training Centre. So far 26 batches comprising of nearly 625 women have been trained in

25
tailoring, embroidery and knitting. The Company has helped women trained at this centre to
set up a production unit to stitch uniforms for Hero Honda employees. Interestingly, most of
the women are now self-employed.

Adult Literacy Mission

This Scheme was launched on 21st September, 1999, covering the nearby villages of
Malpura, Kapriwas and Sidhrawali. The project started with a modest enrolment of 36 adults.
Hero Honda is now in the process of imparting Adult Literacy Capsules to another 100 adults
by getting village heads and other prominent villagers to motivate illiterate adults.
Marriages of underprivileged girls

Marriages are organized from time to time, particularly for girls from backward classes, by
the Foundation by providing financial help and other support to the families.

Rural Health Care

Besides setting up a modern hospital, the Foundation also regularly provides doorstep health
care services to the local community. Free health care and medical camps are now a regular
feature in the Hero Group's community outreach program
KEY POLICIES AN ENVIRONMENTALLY AND SOCIALLY, AWARE COMPANY

At Hero Honda, our goal is not only to sell you a bike, but also to help you every step of the
way in making your world a better place to live in. Besides its will to provide a high-quality
service to all of its customers, Hero Honda takes a stand as a socially responsible enterprise
respectful of its environment and respectful of the important issues.

Hero Honda has been strongly committed not only to environmental conservation
programmers but also expresses the increasingly inseparable balance between the economic
concerns and the environmental and social issues faced by a business. A business must not
grow at the expense of mankind and man's future but rather must serve mankind.
"We must do something for the community from whose land we generate our wealth."
A famous quote from our Worthy Chairman Mr.Brijmohan Lall Munjal.
Environment Policy

26
 We at Hero Honda are committed to demonstrate excellence in our environmental
performance on a continual basis, as an intrinsic element of our corporate philosophy.
To achieve this we commit ourselves to:
Integrate environmental attributes and cleaner production in all our business
processes and practices with specific consideration to substitution of hazardous
chemicals, where viable and strengthen the greening of supply chain.
Continue product innovations to improve environmental compatibility.
Comply with all applicable environmental legislation and also controlling our
environmental discharges through the principles of "alara" (as low as reasonably
achievable).
Institutionalise resource conservation, in particular, in the areas of oil, water,
electrical energy, paints and chemicals.
Enhance environmental awareness of our employees and dealers / vendors, while
promoting their involvement in ensuring sound environmental management.

Quality Policy

Excellence in quality is the core value of Hero Honda's philosophy.

We are committed at all levels to achieve high quality in whatever we do, particularly in our
products and services which will meet and exceed customer's growing aspirations through:

Innovation in products, processes and services.

Continuous improvement in our total quality management systems.
Teamwork and responsibility.

Safety Policy

Hero Honda is committed to safety and health of its employees and other persons who
may be affected by its operations. We believe that the safe work practices lead to better
business performance, motivated workforce and higher productivity.
We shall create a safety culture in the organization by:
Integrating safety and health matters in all our activities.

27
 Ensuring compliance with all applicable legislative requirements.
Empowering employees to ensure safety in their respective work places.
Promoting safety and health awareness amongst employees, suppliers and
contractors.
Continuous improvements in safety performance through precautions besides
participation and training of employees.

INTRODUCTION ABOUT PHOENIX DEALER PROFILE (PHOENIX MOTORS)

PHOENIX MOTORS PVT LTD is dealership type of business. PHOENIX MOTORS

PVT LTD. is established on 21 st march 2003. The business is running by only one man.

The owner name is ch .madhu mathi the firm is located at habsiguda in Hyderabad.

Generally the sale will be either on cash basis or on institutional basis. Bank

like ICICI, HDFC and CENTURION are providing loans to customers.

Advertising strategy of phoenix motors:

They are giving the ads through newspapers, wall paintings, hoardings and

field staff. They are upgrading sales by introducing the schemes, group bookings,

institutional sales and customer door-to-door activities.

Categorization of Staff members:

Staff members are categorized for technicians, 25 members are allotted

for field staff, 5 members are recruited for sales for persons, 5 persons are placed for

evaluating for spare parts, 5 members are allotted for managerial accounts and another 3

persons for cash transaction and other members are allotted for remaining work.

Customer relationship:

They entertain the showroom providing a customers huge having pool

game, internet facility and television with home there system. They provide bile maintenance

programs on every week.

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According to other dealers PHOENIX motors in first in sales and best in service. They treat

customer, is the very important person at PHOENIX motors customer satisfaction is their

motto, why because, they will satisfied customer is the best advertisement. They provide

better value for the customers and as well as employees also. At PHOENIX motors the

customer is the boss.

SALES STRATEGY OF PHOENIX MOTORS:

Average they are selling 25 vehicles per day. PHOENIX motors PVT L.T.D is

the A.P s NO.1 dealership in sales and other activities? It is a QLAD (qualify leader through

quality dealer). At PHOENIX motor they gave the quality service to the customers why

because the cost is long forgotten but the quality is remembered for ever. They treat quality

has a...

Q Quest for excellence

U Understanding customers needs

A Action to achieve customers appreciation.

L Leadership determined to be a leader

I involving all the people

T Team spirit to work for a common goal

Y Yard sticks to measure programs.

WARRANTY ON PROPRIETARY ITEMS:

Warranty on proprietary items like Tyros, Tubes and Battery etc, will be directly

handled by the respective original manufactures (OEMs) except AMCO for batteries and

Dunlop and Falcon tires and Tubes. In case of any defect in proprietary items, other than the

above two mentioned OEMS the dealers must approach the Brach office dealer of the

29
respective manufacture. For AMCO batteries and Dunlop and falcon tires, tubes claims will

be accepted at our authorized dealerships per the mutually agreed terms and conditions

between HERO HONDA and of these two OEMs in case the claim is not accepted for

invalid reasons. Then the claim along with the refusal note form the OEM can be sent to the

warranty section at gorgon plan after due to recommendation of the area service engineer. If

any other six services or subsequent paid services is not availed as per the recommended

schedule given in the owners manual. If HERO HONDA recommended engine oil is not

used. To normal wear & tear components like bulbs, electric wiring, filters, spark plug,

clutch plates, braded shoes, fasteners, shim washers, oil seals, gaskets, rubber parts (other

than tyre and tube) plastic components, chain$ sprockets and in case of wheel rim

misalignment or bend.

If there is any damage due o modification or fittings of accessories other than ones

recommended by HERO HONDA. If the motor has been used in any competitive events like

tracking races or rallies. If there is any damage to the painted surface due to industrial

pollution or other extraneous factors. For clams made for any consequential damage due to

any previous malfunction. For normal phenomenon like noise, vibration, oil seepage, which

do not affect the performance of the motorcycles.

SOCIAL SERVICE ACTIVITIES

PHOENIX motors participate and conduct social service activities. Recently the

phoenix motors organized a BLOOD DONATION CAMP for the trust on 21 st January

2006.they motivated on the consumers to participated in this camp and also provide

certificate for the customers

30
THE MARKETED BIKES OF PHOENIX (All Hero Moto Corp.)

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32
33
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CUSTOMER RELATIONSHIP:

To entertain the customers the showroom providing a customers huge having pool game,
Internet facility and television with home theatre system. They provide bike maintenance
programs on every week. According to other dealers PHOENIX motors in first in sales and
best in service. They treat customer, is the very important person at PHOENIX motors
customer satisfaction is their motto, why because, the well satisfied customer is the best
advertisement. They provide better value for the customers and as well as employees also.
At PHONIX motors the customer is the boss.

SOCIAL SERVICE ACTIVITIES

PHOENIX Motors participates in social service activities. The Phoenix motors

organize a BLOOD DONATION CAMP for the trust in every year. They motivated on the
customers to participated in this camp and also provide Certificate for the customers.

35
 CHAPTER-III

REVIEW OF THE LITERATURE

36
 PERFORMANCE APPRAISAL

Once the employee has been selected, trained and motivated,

he is then appraised for his performance. Performance appraisal is the step where the
management finds out how effective it has been hiring and placing employees. If any
problems are identified, steps are taken to communicate with the employee and remedy
them.
Performance appraisal or merit rating is one of the oldest and
most universal practices of management. Performance appraisal often provides the rational
foundation for the payment of piecework wages, bonus etc. the estimates of the relative
contributions of employees help to determine the rewards and privileges rationally.

Performance appraisal serves as means for evaluating the

effectiveness of devices used for the selection and classification of workers.
Performance appraisal has been considered as a most
significant and indispensable tool for an organization, for the information it provides is
highly useful in making decisions regarding various personal aspects such as promotions
and increases.
According to Ronald Benjamin, performance appraisal
determines who shall receive merit increases, counsels employees ob their improvement
determines training needs, determines promotability, identifies those who should be
transferred.

METHODS,TECHNIQUES FOR APPRAISING PERFORMANCE

Several methods and techniques of appraisal are available for

measuring the performance of an employee. They are:
1. Straight rank method
2. Man to man comparison method

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 3. Grading
4. Graphic rating method
5. Forced choice description method
6. Forced distribution method
7. Checklists
8. Free from easy method
9. Critical incidents
10. Group appraisal
11. Field review method

Modern Methods:
1. Assessment center
2. Appraisal by results or management by objectives
3. Human asset accounting method
4. Behaviorally anchored rating sales
TRADITIONAL METHODS

1. Straight Rank Method:

It is the oldest & simplest method of performance appraisal,
by which the man and his performance are considered as an entity by the rater. Then
ranking of a man in work group is done against may also do that of another member of a
competitive group by placing him as one or two or three in total group, i.e. persons are
tested in order of merit and place in a simple grouping.

2. Man To-man Comparison Method:

The USA army during the FIRST WORLD WAR used this
technique. By this method, certain factors are selected for the purpose of analysis and a
scale is designed by the rater for each factor. A scale of man is also created for each selected
factor. The each man to be rated is compared with in the scale, and certain scores for each

38
 factor are awarded to him. This method is used in job evaluation, and is known as the factor
comparison method.

3. Grading Method:
Under this system, the rater considers certain features and
marks them accordingly to a scale. The selected features may be analytical ability,
cooperativeness, dependability, self-expression, job knowledge, judgment, leadership and
organizing ability, etc. they may be

A Outstanding,
B Very good,

C Good or average,
D Fair,
E Poor,
-B (or B-) very poor or hopeless.
The actual performance of an employee is then compared with
these grade definitions; such type of grading is done in semester examinations and also in
the selection of candidates by the public service commissions.

4. Graphic or Linear Rating scale:

This is most commonly used method of performance appraisal.
Under it, a printed forms one of each person to be rated. According to juices, these factors
are employee characteristics ad employee contribution. In employee characteristics are
included such qualities and initiative, leadership, cooperativeness, dependability, industry,
attitude, enthusiasm, loyalty, creative ability, decisiveness, analytical ability, emotional
ability and co-ordination. In the employee contribution are quantity and quality of work, the
responsibility assumed specific goals achieved regularity of attendance, leadership offered,
attitude towards supervisors and associates, versatility etc.

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 The rating scale method is easy to understand and easy to use,
and permits a statistical tabulation of scores. A ready comparison of scores among the
employees is possible.

5. Forced Choice Description Method:

This method was evolved after great deal of research
conducted for military services during World War II. It attempts to correct a raters
tendency to give consistently high or consistently low ratings to all employees. The use of
this method calls for objective reporting and minimum subjective judgment. Under this
method the rating elements are several sets of pair phrases or adjectives (usually sets of
four phrases two of which are positive, two negative) relating to job proficiency
Or personal qualifications. The rater is asked to indicate which of the four phrases is most
and least descriptive of the employee.

6. Forced Description Method:

Joseph Tiffin evolved this method after statistical work. This
system is used to eliminate or minimize raters bias, so that all personnel may not

be placed at the higher end or at the lower end of the scale. It requires the rater to appraise
an employee according to a predetermined distribution scale. Under this
system, it is assumed that it is possible and desirable to rate only to factors, viz., job
performance and promotability. For this purpose, a five point performance scale is used
without any descriptive statement. Employees are placed between the two extremes of
good and bad job performance.

7. Check List:
Under this method, the rater does not evaluate employee
performance; he supplies report about it and the personnel department does the final rating.
A series of questions are presented concerning an employee to his behaviour. The rater, the

40
checks to indicate if the answer to a question about an employee is positive or negative. An
example of check list is given below:

1. Is the employee really interested in his job? Yes/No

2. Is regular on his job? Yes/No
3. Does he follow instructions properly? Yes/No
4. Is he always wiling to help other employees? Yes/No
5. Does he ever make mistakes? Yes/No

8. Free Easy Method:

Under this method, the supervisor makes a free from, open-
ended appraisal of an employee in his own words and puts down his impressions about the
employee. He takes not of these factors.
a.General Organization and planning ability.
b. Job knowledge and potential.
c.Employee characteristics and attitudes.
d. Understanding and application of company policies and procedures.
e.Production, quality and cost control.
f. Physical conditions.
g. Development needs for future.

9. Critical Incident Method:

The essence of this system is that I attempts to measure
workers performance of certain events or episodes that occur in the performance of the
rates job. The supervisor keeps a written record of the events that can easily be recalled and
used in the course of periodical of formal appraisal. Feedback is provided about the
incidents during performance review session. Various behaviors are recorded under such
categories as the type of job, requirements for employees, judgment, learning ability,
productivity and precision in work, responsibility and initiative.

10. Group Appraisal Method:

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 Under this method, an appraisal group rates employees,
Consisting of their supervisor and three or four other supervisors who have knowledge of
their performance. The supervisor explains to the group the nature of his subordinates
duties. The group then discusses the standards of performance for that job, the actual
performance of the job holder, and the causes of their particular level of performance, and
offers suggestions for future improvement, if any.

11.Field Review Method:

Under this method, trainer employees from the personnel
department interview line supervisors to evaluate their respective subordinates. The appraiser
is fully equipped with definite test questions, usually memorized in advance, which he puts to
the supervisors. The supervisor is required to give his opinion about the progress of his
subordinates, the level of the performance of each subordinate, his weakness, good points,
outstanding ability, and promotability, and the possible plans of action in cases requiring
further consideration.

MODERN METHOD OF APPRAISAL:

1) Appraisal by Results Management by Objectives(MBO):

Peter ducker has evolved this method. MBO is potentially a
powerful philosophy of managing and an effective way for operationlising the evaluation
process. It seeks to minimize external controls and maximize internal motivation through
joint goal setting between the managers and subordinate and increasing the subordinates
own control of the work. It strongly reinforces the importance of allowing the subordinate
to participate actively in the decisions that affect him directly. Management by objectives
can be described as a process where by the supervisor and subordinate managers of an
organization jointly identify its common goals, define each individuals major areas of
responsibility in terms of results expected of him and use these measures as guides for
operating the unit and assessing the contributions of each of its members.

Objectives of MBO:

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 MBO has an objective in itself. The objective is to change
behaviour and attitudes towards the affecting getting the job done. In other words, it is
result oriented; it is performance that counts. It is a management system and philosophy
that stresses goals rather has methods. It provides responsibility and accountability and
recognizes that employees have needs for achievement and self-fulfillment. It meets
These needs by providing opportunities for participation goals setting process. Sub
ordinates become involved in planning their own careers.

MBO Process:
This method emphasizes the value of the present and the future
instead of that of the past, and focuses attention on the results that are accomplished and not
on personal traits or operational methodology. An employee is not judged in terms of
operational methodology, or in terms of initiative, cooperativeness, attitude, emotional
stability, or any other human quality, but on the basis of the achievement of the targets that
have been set. This method is largely applied to technical, professional, supervisory or
execute personnel and not to the hourly paid workers because their jobs are usually too
restricted.
Under MBO programme, an employee and his supervisory
meet and together define, establish and set certain goals or objectives which the employee
would attempt to achieve within the period of, prescribed time.
It consists of five basic steps:
Set organizational goals i.e., establishment of an organization wide strategy
and goals.
Joint goals setting i.e., establishment of short term performance targets
between the management and the subordinate in a conference between them.
Performance review i.e., frequent performance review meetings between the
manager and the subordinate.
Set check points i.e., establishment of major check points to measure progress.
Feed back.

1) Benefits of MBO Programme:

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 The benefits of MBO programme are:
MBO helps and increases employee motivation because it reveals overall
goals to the individual goals and help to increase an employees understanding
of where the organization is and where it is heading.
MBO reduces role conflict and ambiguity. Role conflict exists when a person
is faced with conflicting demands from two or more. Supervisors and role
ambiguity exists when a person is uncertain as how he will be evaluated, or
what he has to achieve. Since MBO aims at providing clear targets and their
order of priority, it reduces both these situations.
MBO identifies problems better and early. Frequent performance review
sessions make this possible.
MBO forces and aids in planning. By forcing top management to establish a
strategy and goals for the entire organization and by requiring other managers
to set their targets and plan how to reach them.
MBO helps he individual manager to develop personal leadership especially
the skills of listening, planning, counseling, motivating and evaluating.

2) Assessment Center Method:

Under this method, many evaluations join together to judge
employee performance in several situations with the use of a variety of criteria. The purpose
of this method was end is to test the candidates in a social situation using a number of
assessors and a variety of procedures. The most important feature of this is job related
simulations.

3). Human Asset Accounting Method:

This method refers to activity devoted to attaching money estimates
to the value of a firms internal human organization and its external customer goodwill. If
able, well trained personnel leave a firm, the human organization is worthless if they join it,
its human assets are increased. If distrust and conflict prevail, the human enterprise
devalued. If team work and high moral prevail, the human organization is a very valuable
asset.

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4) Behaviorally Anchored Rating Scales(BARS):
This is a new technique for appraisals. It provides better, more
equitable appraisals as compared to other techniques. Though bars technique is more time
consuming and expensive than other appraisal tools. Since bars is done by persons expert
in the technique, the results are sufficiently accurate. It has got certain advantages:
More accurate
It clearly clarifies what we extremely good performance, average
performance & so forth.
More useful in providing feedback to the people being appraised.
Helps in making dimensions more independent if one another.
The technique is not biased by the experience and evaluation of the
rater.

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 RESEARCH DESIGN OF THE STUDY

The research design in preliminary design of research work to

be carried out and is in agreement to the condition for collection and analysis of data in
manner that aims to combine prevalence of research design with respect to work carried
data, techniques used to interpret and analyze the data and finally concluding on certain
with the help of findings and recommendations.

STATEMENT OF THE PROBLEM:

Employees, executives and mere workers are the backbone of
every organization. In fact, questions like do the organization achieve the said goals? Does
the organization work smoothly? Will be answered by the efficiency, commitment,
contentment, dedication, inclination to work and such other positive tendencies of the
employees. Bet whether the employees are committed, dedicated, willing to work hard etc.
depends on few factors viz., employees feelings about the nature of work, yearning for
recognition, cordial relations and above all a well guided and properly designed personnel
appraisal system is implemented to achieve the said goal. This has led to the researcher to
choose the topic.
In the present study an attempt has been made to throw a
beacon of light on the various aspects related to performance appraisal system as witnesses
phoenix motors pvtLtd., Hyderabad. Based on the analysis it needs to be probed how
performance appraisal practices help in achieving the organizational goal?

PERFORMANCE APPRAISAL SYSTEM IN PHOENIX MOTORS PVT

LTD., HYDERABAD:

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 Performance appraisal system serves the organizational
objectives and goals besides encouraging high level performance. This evaluation system is
useful in identifying employees, rewarding performance equitably and determining
employee needs for development. These are some of the activities that support the
organizations strategic orientation.
In PHOENIX MOTORS PVT LTD., Hyderabad, performance
appraisal system was carried out in two ways. For executives grading system is carried out
and for workers they implement merit rating system. These systems are carries on at
different intervals.
For executives the grading system is carried out once in a year
and for workers if his done ever six months. These systems have the following procedures.

PERFORMANCE RATING SYSTEM FOR DIRECT WORKMEN:

Stages of Appraisal:
1). The appraisal consists of the following stages:
Job knowledge.
Mental ability.
Attitude.
General disposition.
Efficiency.
Leadership (for supervisory staff).

2). General comments are overall assessment including development needs

of the appraised leading to the final assessment.
3). Review discussion between appraised.
4). Follow up action, if any, to be taken.

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Appraisal Ratings:
Individual factors failing within the areas including separate
weightages for WG 1 to 6, WG 5 to 6, WSI, administrative staff is follows:
Factors WGI WGV/VI WSI Administrative
to WGIV Staff
Job knowledge 4 2 2 4
Mental ability 3 2 5 4
Attitude 5 5 4 6
General ability 3 6 2 2
Efficiency/leadership 5 5 7 7

Factor Score:
ach of these factors has to be assessed on a 5-point scale multiplied by
the specified weightage from each other factor. Assessment of each factor will be done
separately by the reporting officer and the reviewing officer.

GENERAL COMMENT AND OVERALL ASSESSMNT:

A general description along with a development plan is
provided for assessment. In this the reporting as well as reviewing officers well mention the
contribution, achievements, strength and weakness of the appraised, the areas in which he
needs improvement and the plan of action there on.

REVIEW DISCUSSION:
A review discussion between appraise n the reporting officer
will take place after the appraisal of the employee is completed both by the reporting and
reviewing officers.
FOLLOW UP ACTION:

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 The personnel department in consultation with the head of the
department concerne will take the necessary follow up- action.

EFFECTIVE DATE AND FREQUENCY:

The officers are required to evaluate the performance of the
workers every 6 months in a year.

PERFORMANCE RATING FOR INDIRECT EMPLOYEES IN

PHOENIX MOTORS PVT LTD., HYDEARBAD.
In PHOENIX MOTORS PVT LTD., Hyderabad the
performance appraisal is mainly done through rating method. In this method they provide
some kind of a scale for measuring absolute difference between individuals. In PHOENIX
MOTORS PVT LTDindirect employees are in WG I, II, III and IV for them there is a
separate appraisal from through their work is assessed.

STAGES OF APPRAISAL:
The appraisal system consists of the following stages:
1. Appraisal rating of the workmen on job:
1. job knowledge
2. efficiency of work
3. volume of output
4. Quality of output.
2. General comments and overall assessment including development of the appraisal
leading to the final assessment.
3. A review discussion between the appraiser and appraise.
4. Follow up action, if any, to be taken.

Appraisal Rating:
Individual factors failing within the above areas have separate
weightages. The details are given below:

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 FACTORS WEIGHTAGE
Job knowledge 4
Volume of output 6
Efficiency of work 6
Quality of output 4
Minimum score 60%

Factors Score:
Each of these factors has to be assessed on a 5-point scale and
multiplied by the specified weightage from each other. Both the reporting officer and the
reviewing officer will separately assess each other.

PERFORMANCE APPRAISAL SYSTEM FOR EXECUTIVES:

INTRODUCTION:
An accepted system of performance appraisal is a great asset in
the development of human resources in an organization.
It helps in assessing managerial strengths and weakness. Such a
system should be an effective tool of growth for the individual as well as contribute to
increase the recognition of the organization and the people in it. A performance appraisal
system has been evolved with this in mind.

OBJECTIVES:
To make known the performance base of the employees and to ensure an
objective assessment of employees performance potential,
To establish an objective basis for the different levels of performance and to
identify executives with potential to grow in the organization.

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 To counsel the employees appropriately regarding their strengths and
weakness and assist in developing them to realize their full potential in line
with the companys objectives and goals.

STAGES OF APPRISAL:

This system consists of the following stages:

1. appraisal rating of the employees on:

Job performance factors.
Managerial ability factors.

2. General comments and overall assessment including developmental needs of the

appraise leading to the final assessment.

3. A review discussion between the appraiser and appraisee.

4. Follow up action, if any to be taken.

APPRAISAL RATINGS:
Individual factors failing within the above areas have separate
weighages for supervisory and executive groups. These are given below:

A Job Performance Factors:

Factors Weightage
Supervisors Executive
Job knowledge 6 4
Quality of work 6 4
Target fulfillment 6 4
Cost/time control 6 4
Safety consciousness 6 4
TOTAL: 30 20

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B. Managerial Ability Factors:
Factors Weightage
Supervisors Executive
Planning and organizing 2 2
Problem analysis and decision making 2 2
Interpersonal skills 2 4
Communication skills 2 4
Self motivation 2 3
Commitment 2 2
Responsiveness to change/innovation 2 3
Developing subordinates 2 3
Management of human resources 2 4
Positive discipline 2 2
TOTAL(B) 2 30
TATAL(A+B) 2 50

Factor Score:
Each of these has to be assessed on a 5-point scale and multiple
by the specified weightage from each other. Assessment of each factor will be done
separately by the reporting officer and the reviewing officer.
Total appraisal score:
In arriving at the total score, the following weightages are
given to the assessment of reporting/reviewing officers.
Reporting officer-60%
Reviewing officer-40%
The total appraisal score for each of this appraise are arrived at
by applying weightages as given below:

Total factor Weightage Score Weighted Score

Reporting Officer 200 60% 120
Reviewing Officer 150 40% 60
Total appraisal score 180

For the purpose of consideration for promotion the total

appraisal score will be divided by 5 and entered in the assessment sheet.

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GENERAL COMMENTS AND OVERALL ASSESSMENT:
A general descriptive assessment is provided along with a
development plan. In this, the reporting officer will mention the contribution, achievement,
strengths and weakness of the appraise, in the areas in which he needs improvement and
training.
A Final overall assessment should be arrived at as under:
Total appraisal score:
200 and above - outstanding
180 and above - very good
150 and above - marginal
120 and above - poor

Review Discussion:
A review discussion between the appraisee and the reporting
officer will the place after the appraisal of the employee is completed both by the reporting
and reviewing officers.
During the review discussion, the appraisee should give a list
of the factors to the appraisal of the employee is completed him approximately on the areas
of strengths and weaknesses. He should specially indicate the lines on which the appraisee
should make improvements and give him proper guideline. The response of the appraisee
should there after be recorded.

PERFORMANCE REVIEW COMMITTEE:

Outstanding appraisals of executives shall be subject to review
in detail by performance review committees constituted as under. The above committees
shall examine these ratings on objective basis keeping in view the significant contributions
of the assesses in relation to the unit/company performance.
A). PS I THROUGH PS VI:
Chief of unit
Chief of finance not below the rank of DGM

53
 Chief of personnel
Chief of works/division
B). PS VII and PS VIII:
Functional director
Business group director
Executive director not below the rank of GM
Chief of unit
Representative of director, finance
Representative of director, personnel

C). Unit chief and above- chairman, managing director and functional director:
The above performance shall also review the ratings of low
performers with the reference to the constraints, if any, faced by the appraisee. The
committees may also recommend development through training or change of job to enable
such low performers to improve their performance.

FOLLOW-UP ACTION:
The appraisal format shall be filled each financial year before
30th April, with effect from 1987-88.

REPORTING AND REVIEWING OFFICERS:

The reporting officer shall normally be the immediate superior of the assesses.
One executive of one group should write no appraisal for another in the same
group. The reporting officer shall in these cases de from the next group.
The reviewing officer should be one step above the reporting officer.

INTERPRETATION:
The interpretation of the personnel directorate shall be final in
respect of this system.

SAVINGS:

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 Management reserves the right to modify the performance
appraisal system partially of wholly.

PERFORMANCE IMPROVEMENT AND DEVELOPMENT SYSTEM:

The performance improvement and development system shall
comprise the following steps:
a) Target setting and identifying the personnel development needs by appraiser and
appraisee jointly.
b) First 4months review by the appraiser and appraisee.
c) Second 4 monthly reviews by the appraiser and appraisee.
d) Annual review and review discussion by the appraiser and appraisee.

e) Evaluation of tasks and performance recording by the appraiser.

f) Evaluation of tasks and performance recording by the reviewing officer.
g) Record keeping, monitoring and effective utilization of performance improvement
and development system for H.R.D network activities by the custodian of the unit, business
group and co-operative levels.
The PIDS form shall be kept with the appraisee for reference of
the task/objectives assigned to him right from the stage (a) to (c). The appraiser will
nevertheless retain it.
In stages (d) to (e) he shall forward the form to the reviewing
officer for taking action on (f) and (g). Finally, the custodian at stage (h) shall take PIDS
form on the record. This will be done for the purpose of record and also for its gainful
utilization for integration of H.R.D network as indicated in this system.

TOTAL INTEGRATION WITH H.R.D NETWORK:

The performance improvement and development systems

(PIDS). Bring about the total integration with the HRD network. The PIDS envisages a
gainful and optimum utilization of such integration as shown in the following diagram.

55
Exceeding high achiever Succession plan
Career growth
Higher achiever Challenging tasks
Training/retraining
Low achiever Counseling
Golden hand shake
Extremely low achiever Rehabilitation
Job rotation
Approach Participative management
MOU/Companys

Key task/objectives Performance

STRUCTURE:
The performance improvement and development system shall
comprise the following structure:
Four monthly and final review discussions.
Factors relating to skills and managerial abilities.
Key performance factors.
Varying performance factors.
Corporate cadre (PSIII to PS VI).
Unit cadre(PSIII to PSVI)
Executives
Unit cadre
Supervisor (PSI & PSII)
Review and observation by the reviewing officer.
OBJECTIVES/TASKS:
The objectives or tasks include routine as well as key tasks.
I) Routine Tasks:
The routine tasks are in conformity with the job description of
each job holder which may not necessary de the dame for all supervisors/executive with

56
 the same designation or play scale. The routine tasks are significant for these assume the
major portion of the activities of any job holder with any designation or skill.
II). Key Tasks:
Key tasks are the special assignment to the appraise as jointly
agreed to by appraiser and appraisee for the specific appraisal year. These shall be in
addition to the routine tasks as described above.
The purpose of the key tasks is to bring about improvement in
the individual job performance and functional effectiveness with creativity and innovation.

THE KEY TASKS MUST BE:

Creative and innovation.
Linked to the needs of the section/department.
Descriptive of the end result to be achieved.
Realistic and achievable.
Reasonable and have clearly identified standards quantitative or qualitative.
Capable of being achieved with the specified time limit with dates of completion.
Set in terms of the priorities.
Identified and agreed jointly by the appraiser and appraisee.
THE FOUR MONTHLY AND FINAL DISCUSSION:
Periodical review shall be held in mid august and mid December.
The final review discussion, appraiser and appraisee shall:
Jointly review the appraisers performance against the agreed objective/tasks.
For the preceding year.
Jointly review the routine tasks and key tasks/objectives and standards for the
current year and identity the area for the personal development of the
appraisee.
Review and take follow up action, if any, for:
Agreement and implementation of planning requirements for the appraisee.
Continuous monitoring of progress towards achieving defined
objectives/tasks by the appraisee and appraiser.

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THE APPRAISER SHALL:
Analyze the strengths and weakness and suggest corrective measures
Use of the performance review date for the various aspects integrated HRD
networks, such as training, retraining, counseling, job rotation, transfer,
carrier growth plans, succession plan rehabilitation and golden hand shake.
Evaluate quantitatively the achievements vis--vis the routine tasks.

PERFORMANCE FACTORS RELATING SKILLS AND MANAGERIAL

ABILITIES:
This is the closed portion of PIDS, which is confidentially
recorded by the appraiser and the reviewing officer on their performance rating
respectively.
Key performance factors:
Application of knowledge/skills.
Leadership skills.
Initiative and innovative (creativity).
Participative approach (inclusive of inner-personal relationship and team work).
Cost and quality consciousness (TQM).
Varying performance factors.
In terms of the varying needs and functions of the corporate
cadre, unit cadre and supervisory cadre, different performance factors have been identified
as under.

I. CORPORATE CADRE (PS VII & ABOVE)

CORPORATE CADRE (PS VII GRADE)
Developing/appraising people.
Delegation, organization and control.
Problem analysis and decision making.
Communication skills.
Skills and commitment to manage changes.
Negotiation skills/commitment/safety consciousness.

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 This factor shall vary or be substituted in terms of the nature of job carried out
by the corporate cadre and senior executives.

II. UNIT CADRE (PS III TO PS VI)

Developing/appraising people.
Organization and control.
Problem analysis and decision making.
Communication skills.
Responsiveness to change.
Negotiation skills/safety consciousness/R & D skills.
The factor shall vary or be substituted in terms of nature of job
carried out by the unit cadre executives.

SUPERVISORY CADRE (PS I & II)

Co-ordinates and control.
Attitude towards learning.
Expanding decisions.
Trouble shooting skills
Adaptability to change.
Safety of house keeping.

TOTAL EVALUATION SCORE:

The total evaluation score shall be the sum total of:
i. Evaluation of objectives.
ii. Performance factors.
Following is the allocation of total evaluation score;
a) Objectives/Tasks.
Routine Tasks 7*10=70

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 (7 major routine tasks to be identified jointly)
Key tasks 3*20=60
(3 key tasks to be identified jointly)
Total 130
Performance factors
a). key performance factors 6*4*3=72
(6 key factors common to all cadres / disciplines
On 4 points scale multiplied by the weightage
Of three for each factor)
b). Varying performance factors 6*4*2=48
(6 cadres performance factors for different
Cadres/disciplines on four point scale multiplied
By the weightage of two for each factor)
Total 120
Weightage to reporting and reviewing officer:
In arriving at the total evaluation score, the following weightage
are given to the evaluation marks by the reporting and reviewing officer.
Reporting officer 60%
Reviewing officer 40%

Reporting and reviewing officers:

The reporting officer shall be the immediate supervisor of the appraise.
The reviewing officer shall be the immediate supervisor of the reporting
officer.
For the various functional chiefs, the unit chief/business group chief shall be
appraiser and the respective functional director/financial executive directive
shall be the reviewing officer as described under.
Functional Chief Reviewing Officer
Personal chief of unit _ Director, personal director
Marketing chief of unit _ Marketing policy
Finance chief of unit _ corporate planning and projects

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Quality chief of unit _ Director Finance
HRD chief of unit _ Executive director (HRD)
Vigilance officer of the unit _ Executive director
Internal audit chief of unit _ Director, Finance
Business group
Reviewing officers view:
The reviewing officer, while evaluating the performance of the
appraise shall also evaluate the contribution made by him to help achieve the
tasks/objective set him and also the fulfillment of the personnel development needs.

Performance Review Committee:

The unit boards and the executive committee shall perform the functions of the
performance review committees at the micro-level for supervisory and unit cadres
and at the macro-level for the corporate cadre respectively.
Ordinarily the number of Exceedingly high achievers shall not exceed 20% of the
total strength in any PS credit unit. Where it exceeds 20% all such performance
improvement forms shall be referred to unit board / executive committee shall
identify the 20%out such exceedingly high achievers.
The corporate HRD at macro level and HRD departments of the units of the micro
level will look in to the genuine problems of the extremely low achievers and suggest
the remedial measures in terms of the integration HRD network chart after a formal
interaction with them.

Effective date frequency:

The appraisal shall cover the period of from 1 st April of current
year to 31st March of the succeeding year. The procedure shall be followed as prescribed in
this system.

Interpretation:

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 The PIDS is an integrated part of promotion and carrier growth
policies for PS cadre and other network such as personal department plan, HRD plans,
succession plan, golden hand shake etc,.
The interpretation of the director, personnel shall be final in
respect of all such integrated HRD policies/systems as mentioned above which will be
communicated by DPS directly or by ED(HRD) on his behalf.

FLOW CHARTS (CHANNEL-I)

a) Where the reporting officer and review officer are the same place

PERSONAL TRAINING TRAINING

DEAPRTMENT INVENTORY DEPARTMENT
OF THE UNIT

COMMITTEE TO REVIEW
DEPARTMENT OUSTANDING & COUNCELING
HEADS LOW PERFORMANCE

REVIEW
REPORTING
OFFICER

REVIEWING

b) Where the reporting officer & reviewing officer are at different stations

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 PERSONNEL
PERSONNELCHIEF
CHIEF DIRECTOR PERSONNEL TRAINING INVENTORY

COMMITTEE TO REVIEW
OUTSTANDING & COUNSELING
FOR LOW PERFORMANCE

REPORTING OFFICER HRD CENTER BANGALORE

REVIEWING OFFICER REVIEW DISCUSSION

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FLOW CHART (CHANNEL)-II
a) Where the reporting officer and reviewing officer are at the same place

PERSONNEL
PERSONNELCHIEF OF
CHIEF DIRECTOR PERSONNEL TRAINING
UNIT/OFFICER

COMMITTEE TO REVIEW
OUTSTANDING & COUNSELING
FOR LOW PERFORMANCE

REPORTING OFFICER HRD CENTER BANGALORE

REVIEWING OFFICER
REVIEW DISCUSSION

b) Where the reporting officer and reviewing officer are at different stations

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 PERSONNEEL CHIEF TRAINING TRAINING & OD
INVENTORY DEPARTMENT
OF THE UNIT

DEPARTMENTAL COMMITTEE TO REVIEW

HEADS OUSTANDING & COUNCELING
LOW PERFORMANCE

REPORTING OFFICER

REVIEWING OFFICER REVIEW DISCUSSION

CHAPTER-IV
DATA ANALYSIS AND INTERPRETATION

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 DATA ANALYSIS AND INTERPRETATION

Data analysis has been done by arranging the data in a simple table form and
percentages are calculated. The quantitative data has been represented by drawing out the
charts where ever necessary.

1. Do you think performance appraisal is needed in a company?

(a ) YES (b) NO

s.no Options No. of Responses Percentage

1 YES 50 100
2 NO 0 0
TOTAL 50 100

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Interpretation:
To above question, almost 100% of the employees thought that the performance
appraisal is needed in a company.

2. Performance appraisal rating is used to

(a) Identify areas of improvement
(b) Identifying quality for unit of work
(c) Set performance target
(d) All the above

s.no Options No. of Responses Percentage

Identify areas of
1 improvement 14 28
Identify areas of training
2 & development 24 48
3 Set performance target 4 8
4 All the above 8 16
Total 50 100

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Interpretation:
About the useful of Performance appraisal system, 28% have said that
appraisal system helped them to identify areas of improvement, to 48% it helped in
identifying training & development needs, to 8% it helped in setting performance targets
and to 16% it was helpful in all the above areas. By this we can say that P.A is helpful in
one way or the other for the employees.

3. In your experience the outstanding Performance of an employee is due to:

(a) Actual Performance (b) Qualification
(c) Experience (d) All the above

s.no Options No. of Responses Percentage

1 Actual Performance 14 28
2 Qualification 0 0
3 Experience 26 52
4 All the above 10 20
total 50 100

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Interpretation:
Above 28% of the employees responded that the outstanding Performance
appraisal is due to Actual Performance, 52% of the employees is due to Experience and 20%
of the employees is due to all the above.

4. Do you think that a good workman gets motivated with frequent Performance
appraisal? Is conducted?
(a) YES (b) NO

No. of
s.no Options Responses Percentage
1 YES 44 88
2 NO 6 12
TOTAL 50 100

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 % of respondents

12% NO

88% YES

Interpretation:

A majority of 88% of the employees said that a good workman gets motivated
with frequent Performance Appraisal and 12% of the employees are not satisfied with above.

5. What are the factors taken into consideration while appraising an individual?
(a) Interpersonal effectiveness (b) Team building skills
(c) Self motivate skills (d) leadership

s.no Options No. of Responses Percentage

Interpersonal
1 effectiveness 10 20
2 Teambuilding skills 12 24
3 Self motivate skills 22 44

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 4 Leadership 4 8
Total 50 100

Interpretation:
About 20% of employees considered interpersonal effectiveness while
appraising an individual, 24% of employees considered Teambuilding skills, 22% of
employees considered self motivate skills and 8% of employees considered Leadership. By
this we can say that these are the factors taken into consideration while appraising an
individual.

6. In your opinion an employee should be:

(a) Effective (b) Moderate (c) Both A & B

s.no Options No. of Responses Percentage

1 Effective 40 80
2 Moderate 0 0
3 Both A & B 10 20
Total 50 100

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 Interpretation:
About 80% of the employees opinion is that the employee should be
effective and rest 20% of the employees opinion is that the employee should be
effective and moderate.

7. Which method you are using for evaluating Performance?

(a) MBO (b) 360 degree appraisal (c) Assessment centre
(d) BARS (e) Any other

s.no Options No. of Responses Percentage

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 1 Mgmt By Objects 24 48
2 360 degree appraisal 12 24
3 Assessment centre 4 8
4 BARS 6 12
5 Any other 4 8
Total 50 100

Interpretation:
About 48% of the employees using Mgmt by objects method for
evaluating Performance, 24% of the employees using 360 degree appraisal, 8% of the
employees using Assessment centre, 12% of the employees using BARS, 8% of the
employees using other method.

8. Is Appraisal process expensive and time consuming?

(a) YES (b) NO

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 s.no Options No. of Responses Percentage
1 YES 32 64
2 NO 18 36
Total 50 100

Interpretation:
About 64% of the respondents said that the performance appraisal is
expensive and time consuming. And 36% of the respondents said that the Performance
appraisal is not expensive and time consuming.

9. Do you agree with the assessment of your reviewing/reporting officers?

(a) Agree (b) Disagree

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 s.no Options No. of Responses Percentage
1 Agree 46 92
2 Disagree 4 8
Total 50 100

Interpretation:
Majority of 92% of the employees responded that reporting officer was good
at grading the performance. Nearly 8% were disagreeing his duties as per the guidelines laid
down.

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10. Do you want any change in frequent between the appraisals?
(a) YES (b) NO

s.no Options No. of Responses Percentage

1 YES 36 72
2 NO 14 28
Total 50 100

Interpretation:

About 72% of the employees want to change in frequent between the

appraisals. And 28% of the employees dont want to change between the appraisals.

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11. Have you been able to express all difficulties & problems which you have been facing
Regarding your job & achievement of your performance area?
(a) YES (b) NO

s.no Options No. of Responses Percentage

1 YES 50 100
2 NO 0 0
Total 50 100

Interpretation:

About 100% of the employees are able to express all difficulties &
problems which they have been facing regarding their job.

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12. Frequency at which merit rating/Performance appraisal is conducted?
(a) 1year (b) 2years (c) half yearly (d) Quarterly

s.no Options No. of Responses Percentage

1 1YEAR 18 36
2 2YEARS 0 0
3 HALF YEARLY 26 52
4 QUATERTLY 6 12
TOTAL 50 100

Interpretation:
About 36% of the employees conducted merit rating/performance appraisal at
the frequency 1year, 52% of the employees conducted at half yearly,12% of the employees
conducted at quarterly.

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13. Are you satisfied with present Performance appraisal system?
(a) YES (b) NO

s.no Options No. of Responses Percentage

1 YES 32 64
2 NO 18 36
TOTAL 50 100

Interpretation:

About 64% of the employees were satisfied with present Performance

appraisal system. Rest 36% of the employees was not satisfied with present system.

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14. The appraisal is an opportunity for self review & reflection?
(a) YES (b) NO

s.no Options No. of Responses Percentage

1 YES 40 80
2 NO 10 20
TOTAL 50 100

Interpretation:
About 80% of the respondents have agreed that its an opportunity to
review themselves. About 20% of them said that it does not help them in reviewing
themselves.

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15. Do you think the reward system is fair and adequate?
(a) YES (b) NO

s.no Options No. of Responses Percentage

1 YES 36 72
2 NO 14 28
TOTAL 50 100

Interpretation:

About 72% said that the reward system is fair and adequate and 28%
responded that it is not fair.

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16. Do you have a good relationship with appraiser after Performance appraisal?
(a) YES (b) NO

s.no Options No. of Responses Percentage

1 YES 48 96
2 NO 2 4
TOTAL 50 100

Interpretation:

A Majority 96% of the respondents have the good relationship with

appraiser after Performance appraisal. Rest 4% of the respondents is not having a good
relationship with appraiser after Performance appraisal.

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17. Do you feel Performance appraisal promote you?
(a) YES (b) NO

s.no Options No. of Responses Percentage

1 YES 38 76
2 NO 12 24
TOTAL 50 100

Interpretation:

About 76% of the respondents feel that the Performance appraisal can
promote the employee. Remaining 24% of the respondents are not agreed with the above
sentence.

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18. In your opinion PIDS is necessary?
(a) YES (b) NO

s.no Options No. of Responses Percentage

1 YES 48 96
2 NO 2 4
TOTAL 50 100

Interpretation:
Majority of 96% of the respondents opinion is that the PIDS is necessary.
About 4% of the respondents opinion is that PIDS is not necessary

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19. By which way you are consistent for Performance appraisal in organization?
(a) Individual (b) Group (c) Both A & B

s.no Options No. of Responses Percentage

1 Individual 4 8
2 Group 28 56
3 Both A & B 18 36
Total 50 100

Interpretation:

About 8% of the respondents were consistent as a Individual for

Performance appraisal, about 56% of the respondents were consistent as a group for
Performing appraisal and 36% of the respondents were consistent as both individual and
group for Performance appraisal.

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20. Is Balance Score Card helps in improving the Performance?
(a) YES (b) NO

s.no Options No. of Responses Percentage

1 YES 44 88
2 NO 6 12
Total 50 100

Interpretation:

About 88% of the respondents agrees that the Balance Score Card helps in
improving the Performance. About 12% of the respondents disagrees that the BSC helps in
improving the Performance.

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 CHAPTER-IV
FINDINGS & CONCLUSIONS
SUGGESTIONS
QUESTIONNAIRE
BIBLIOGRAPHY

87
 FINDINGS & CONCLUSIONS

1. In the light of the above discussion the following findings and conclusions are
made.
1. It is revealed that the executive are getting feedback on their performance though
which they can review their performance. Sort on the problems and can overcome the
difficulties.
2. The management has a clear understanding about the problem that the workers are the
best with moreover, they are eager to solve the problems of the workers as and when
they arise.
3. The management was giving requisite training to workers in the areas where they are
weak.
4. Workers awareness about the fact that the appraisal are one of the factor for
promotion was cent percent.
5. Performance appraisal system is considered as a means that aim at identifying the
areas of improvement, identifying areas of training and development setting
performance target for future.
6. The management desire having cordial relations with the work to hold mutual
discussions.
7. The performance appraisal system it exists as it exist now, is properly worked out
and appropriately evolved. This revealed from the opinion given by the majority of
the employees.

88
 SUGGESTIONS

Based on the findings of the study and personal discussions held

with various executives and employees at PHOENIX MOTORS PVT LTD., Hyderabad
possible suggestions and recommendations are given:
It is recommended that employees should be immediately communicated.
The result of the appraisal particularly when they are negative.
It is recommended that the supervisor should try to analyze the strengths and
weaknesses of an employee and advise him on correcting the weakness.
It is commended to counsel the employees appropriately regarding their strength and
weaknesses and assist in developing them to realize their full potential in line with the
companys goals.
The top management is very much committed in implementing the performance
appraisal system as it is. The performance appraisal system is consider as an essential
tool for bridging gap between the top management and the executives it thus helps
them to develop cordial relations and mutual understanding.
It is recommended that the employees should be communicated information about his
performance, again his acceptance of it and draw up a plan for future improvement, if
necessary.
It is recommended that the rater must be thoroughly well versed in the philosophy and
of the rating system. Factor sales must be thoroughly defined, analyzed and
discussed.
To conclude, it is imperative to immunize of the problems or hindrances to
strengthen the system.

89
 QUESTIONNAIRE

PERSONAL DATA

NAME :
DESIGNATION :
DEPARTMENT :
EXPERIENCE :

1. Do you think Performance appraisal is needed in a Company ?

(a) YES (b) NO

2. Performance appraisal rating is used to

(a) Identify areas of improvement
(b) Identify areas of training and development
(c) Set performance target
(d) All the above

3. In your experience the outstanding Performance of an employee is due to :

(a) Actual Performance (b) Qualification
(c) experience (d) All the above

4. Do you think that a good workmen gets motivated with frequent Performance appraisal is
conducted?
(a) YES (b) NO

5. What are the factors taken into consideration while appraising an individual ?

90
 (a) Interpersonal effectiveness (b) Teambuilding skills
(c) Self motivate skills (d) Leadership

6. In your opinion an employee should be :

(a) Effective (b) Ineffective (c) Both A & B

7. Which method you are using for evaluating Performance ?

(a) MBO (b) 360 degree appraisal (c) Assessment centre
(d) BARS (e) Any other

8. Is it expensive and time consuming?

(a) YES (b) NO

9. Do you agree with the assessment of your reviewing/reporting officers ?

(a) Agree (b) Disagree

10. Do you want any change frequency between the appraisals?

(a) YES (b) NO

11. Have you been able to express all difficulties & problems which you have been
facing regarding your job & achievement of your performance area ?
(a) YES (b) NO

12. Frequency at which Performance appraisal is conducted

(a) 1year (b) 2years (c) half yearly (d) Quarterly

13. Are you satisfied with present Performance appraisal system

(a) YES (b) NO

14. The appraisal is an opportunity for self review & reflection

91
 (a) YES (b) NO

15. Do you think the reward system is fair and adequate?

(a) YES (b) NO

16. Do you have a good relationship with appraiser after Performance appraisal?
(a) YES (b) NO

17. DO you feel Performance appraisal promote you?

(a) YES (b) NO

18. In your opinion PIDS is necessary?

(a) YES (b) NO

19. By which way you are consistent for Performance appraisal in

(a) Individual (b) Group (c) Both A & B

20. Is Balance score card (BSC) helps in improving the performance?

(a) YES (b) NO

(SIGNATURE)

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 BIBLIOGRAPHY

S.NO AUTHOR NAME OF THE BOOK

1. SUBBA RAO.P : Personnel/Human resource Management.

2. ASWATAPPA : Human Resource Management

3. T.V.RAO : Appraising Performance

4. C.B.MAMORIA : Human Resource Management.

PHOENIX MOTORS PVT LTDPERSONNEL MANUAL

WEBSITES:
www.hrindia.com
www.google.com
www.heromotocorp.com

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