Nithya Kumari

Internship Report on
A STUDY ON PERFORMANCE APPRAISAL SYSTEM

WITH SPECIAL REFERENCE TO
SUPRAJIT ENGINEERING LTD, BENGALURU
BY
NITHYA KUMARI
USN: 4SN13MBA19
Submitted To
VISVESVARAYYA TECHNOLOGICAL UNIVERSITY, BELAGAVI
In partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION

Under the guidance of
Internal Guide External Guide

Prof. K. RADHAKRISHNAN MR. SUSHAN KUMAR SHETTY
Faculty, MBA Department Officer HR Department
SRINIVAS INSTITUTE OF TECHNOLOGY SUPRAJIT ENGINEERING LTD
MANGALURU BENGALURU
DEPARTMENT OF MBA
SRINIVAS INSTITUTE OF TECHNOLOGY
MANGALURU
2015
TABLE OF CONTENT
CHAPTER PARTICULARS PAGE NO.
EXECUTIVE SUMMARY
1 Introduction
1.1 Introduction about the Internship
1.2 Topic chosen for the Study
1.3 Need for the Study
1.4 Statement of the Problem
1.5 Objectives of the Study 1-5
1.6 Scope of the Study
1.7 Methodology Adopted
1.8 Literature Review
1.9 Limitations of the Study
2 INDUSTRY PROFILE
6-30
COMPANY PROFILE
2a. Background and Inception of the Company
2b. Promoters
2c. Vision, Mission and Quality Policy
2d. Product Profile
2e. Areas of Operation
2f. Infrastructure Facilities
2g. Competitors Information
2h. Swot Analysis
2i. Future Growth and Prospects
2j. Analysis of Financial Statement
3 THEORETICAL BACKGROUND OF THE STUDY 31-37
4 DATA ANALYSIS AND INTERPRETATION 38-63
5 FINDINGS, SUGGESTIONS & CONCLUSION 64-66
BIBLIOGRAPHY
ANNEXURE
LIST OF TABLES
TABLE PARTICULARS PAGE

NO NO
2.1 Profit And Loss Account of Suprajit Engineering Ltd 24
2.2 Balance Sheet of Suprajit Engineering Ltd 25
2.3 Current Ratio 26
2.4 Debt Equity Ratio 27
2.5 Inventory Turnover Ratio 28
2.6 Quick Ratio 29
2.7 Fixed Asset Turnover Ratio 30
4.1 Age of The Employees 38
4.2 Employees Responses on how Frequent is the Appraisal done 39
for Confirmed Staff
4.3 Classification of Employees Based on Gender 40
4.4 Responses Regarding Employees Work Experience in Present 41
Organization
4.5 Responses Regarding Employees Expectation in Terms of 42
Work
4.6 Appraisal Methods Followed in the Organization 43
4.7 Employees Responses Regarding the Components taken into 44
Consideration in Evaluating the Performance
4.8 Employees Participation in the Performance Appraisal Process 45
4.9 Employees Ratings on Performance Appraisal Process in 46
Suprajit Engineering Limited
4.10 Employees Responses Regarding any Increment in their Salary 47
after Performance Appraisal
4.11 Employee’s Response Regarding the Performance Appraisal 48
Report on Imparting Training Based on Performance Appraisal
4.12 Employees Responses on Growth and Learning Facilitated 49
through Performance Appraisal
4.13 Employee Response Regarding the Reliability of Performance 50
Management System
4.14 Employees Responses on Performance Appraisal 51
4.15 Employees Responses Regarding the Opportunity for self 52
Appraisal
4.16 Employees Responses on Appraisal System which helped the 53
Management to take Decisions
4.17 Employees Responses Regarding the Measures Undertaken by 54
the Organization to Develop Employee Productivity
4.18 Employees Responses Regarding their Present Performance 55
4.19 Responses Regarding the Improvement of the Employees after 56
Performance Appraisal
4.20 Employee’s Response Regarding, who does the Performance 57
Appraisal in the Company
4.21 Employees Responses Regarding Methods of Performance 58
4.22 Employees Responses on Achieving Meaningful Goals 59
4.23 Employees Response Regarding the Ideal Performance 60
Appraisal System Followed in the Organization
4.24 Employees Responses Regarding on Performance Appraisal 61
Improvement of Motivation and job Satisfaction through
4.25 Employees Response Regarding the Opinion about Selecting 62
KRAs
4.26 Employee Responses Regarding the Formal Feedback on 63
Performance
LIST OF FIGURES
TABLE NO PARTICULARS PAGE

NO
4.1 Age of the Employees 38
4.2 Employees Responses on how Frequent is the Appraisal 39
done for Confirmed Staff
4.3 Classifications of Employees based on Gender 40
4.4 Responses Regarding Employees work Experience in 41
Present Organization
4.5 Responses Regarding Employees Expectation in Terms of 42
Work
4.6 Appraisal Methods Followed in the Organization 43
4.7 Employees Responses Regarding the Components taken 44
into Consideration in Evaluating the Performance
4.8 Employees Participation in the Performance Appraisal 45
Process
4.9 Employees Ratings on Performance Appraisal Process in 46
Suprajit Engineering Limited
4.10 Employees Responses Regarding any Increment in their 47
Salary after Performance Appraisal
4.11 Employee’s Response Regarding the Performance 48
Appraisal report on Imparting Training Based on
4.12 Employees Responses on Growth and Learning Facilitated 49
through Performance Appraisal
4.13 Employee Response Regarding the Reliability of 50
Performance Management System
4.14 Employees Responses on Performance Appraisal 51
4.15 Employees Responses Regarding the Opportunity for self 52

Appraisal
4.16 Employees Responses on Appraisal System which Helped 53
the Management to take Decisions
4.17 Employees Responses Regarding the Measures Undertaken 54
by the Organization to Develop Employee Productivity
4.18 Employees Responses Regarding their Present Performance 55
4.19 Responses Regarding the Improvement of the Employees 56

4.20 Employee’s Response Regarding, who does the 57
Performance Appraisal in the Company
4.21 Employees Responses Regarding Methods of Performance 58
4.22 Employees Responses on Achieving Meaningful Goals 59
4.23 Employees Response Regarding the Ideal Performance 60

Appraisal System Followed in the Organization
4.24 Employees Responses Regarding on Performance Appraisal 61
Improvement of Motivation and Job Satisfaction through
4.25 Employees Response Regarding the Opinion about 62
Selecting KRAs
4.26 Employee Responses Regarding the Formal Feedback on 63
Performance
EXECUTIVE SUMMARY
This study is conducted on ―Performance Appraisal System‖ with special reference to

Suprajit Engineering Ltd. The main objective of the study is to evaluate the effectiveness
and satisfaction level of the employee towards performance appraisal system in the
organization. The report of the study is prepared by dividing into five chapters.
The study is conducted using a questionnaire for the selected sample. Statistical tools like
percentile method are used for analyzing and interpreting the data. The major findings of
the study are majority of the employees are agreed growth and learning are taking place
through performance appraisal. The major suggestions of the study are the results of the
performance appraisal system will have direct impact on careers.
Chapter-1 Includes introduction about the internship, topic chosen for the study, need for
the study, and objectives of the study, scope of the study, research methodology,
literature review and the limitation of the study.
Chapter-2 Includes industry profile with growth of the industry. Consist of the company
profile, company profile is divided into ten sub chapters which refers to the background
of the company, promoters, vision-mission, quality policy, product profile, areas of
operation, infrastructural facilities, competitors information, future growth and
prospectus, SWOT analysis of the Suprajit Engineering Ltd that is the strength,
weakness, opportunities, threats of the company and give the brief analysis of financial
statement and different types of ratios.
Chapter-3 Includes theoretical background of the company.
Chapter-4 Contains the data analysis and interpretation where analysis through
questionnaire using tables and charts.
Chapter-5 Provides findings, suggestions and conclusion at last bibliography and

questionnaire are appended.
CHAPTER 1
INTRODUCTION
CHAPTER -1
INTRODUCTION
1.1 Introduction about the Internship
An internship is a learning situation where we can gain the opportunity to gain practical
experience. When placed this situation, we can expand their concepts of different
organizational structures of different working relationship within the workplace.
The main objective of any internship program is to bridge the gap between the classroom
and practical work and the real world situations. Theoretical knowledge which is gained
in the classrooms becomes the base for all the real world transactions but there are some
aspects which can be learnt when dealt practically. Hence internship program helps in
learning those aspects of real world. This becomes the core objective of internship
training.
1.2 Topic Chosen for the Study:
The topic chosen for the study is entitled as “A Study on Performance Appraisal System
with Special Reference to Suprajit Engineering Limited, Bengaluru”
1.3 Need for the Study
Performance appraisal is the assessment of an individual’s performance in an

performance in a systematic way, the performance being measured against such factors as
job knowledge, quality and quantity of output, initiative, leadership abilities, supervision,
dependability, co-operation, judgment, versatility etc. assessment should not be confined
to the past performance alone. Potentials of the employee for the future performance must
also be assessed. The HR department of an organization plays a strategic role in
establishing an organizations performance appraisal system. An effectively framed and
accepted performance appraisal system showcases the professional working standards
and governance ethics of an organization. A lot of researchers have undertaken research
on this topic but still there is a data gap, to fill that data gap this study is conducting.
1
1.4 Statement of the Problem
The Problem is stated as ―A Study on Performance Appraisal with Special reference to

Suprajit Engineering LTD‖ Bengaluru. The performance appraisal report is kept
confidential for all categories of employees. However, the appraisal system should be
made more transparent by letting the employees know on what basis they are been
appraised and also giving them timely feedback on their performance. Instead of
conducting appraisal once a year the confirmed staff, regular appraisal should be
conducted for all categories of employees. Further appraisal should be conducted with
one to one discussion. Taking into consideration the above aspects, the study is
undertaken to find out how effective are the functions to evaluate the performance
appraisal in Suprajit Engineering Limited.
1.5 Objectives of the Study
 To identify various appraisal methods

 To find out the existing performance appraisal used in the company.
 To evaluate the effectiveness and satisfaction level of the employee towards
performance appraisal system.
 To suggest remedial measure to improve performance and to increase productivity of
the company.
1.6 Scope of the Study
Performance management system is one of the major functions of HR department. In any

organization performance appraisal is used for giving promotion and it is also used for
training and development.
The findings of the present study can be used by Suprajit Engineering Limited and also
this can be used by similar companies.
2
1.7 Methodology Adopted
Research methodology is a systematic way to solve the research problems. It may be

understood as a science of studying how research is done scientifically. In it we study
various steps that are generally adopted by a researcher in studying his research problem
along with the logic behind them. Researchers not only need to know how to develop
certain indices or tests, how to calculate the mean, mode or standard deviation or chi-
square, how to apply particular research techniques, but they also need to know which of
these methods or techniques, are relevant and which are not and what would they mean
indicate and why. The data required for the study was collected through both primary and
secondary data. This study is conducted to find out the evaluation of performance
appraisal at Suprajit Engineering Limited, Bangalore in order to get necessary data a well
structured questionnaire has been prepared for this type of study and the data have been
collected from the employees of HR and IR department of Suprajit Engineering Limited.
The entire study is based on both primary data and secondary data.
Primary data
Questionnaire methods are used to elicit information from employees of various
hierarchy departments. Primary data are those which are gathered especially for the
project at hand is directly through questionnaire and personal interaction. Primary data is
collected by using the questionnaire and also by personal interaction
Secondary data
The secondary data has been collected from different books, company files and website.
Secondary data has been collected by an individual from different sources. Internet,
journals, employee records are the main source of secondary data.
Sample Design
It is the method of selecting the sample, in other words is a definite plan predetermined
before any data are actually collected for obtaining a sample from a given sample frame.
Sample Size
The sample size taken for the study is 30 out of 250 employees
3
Statistical tools used
The data are analyzed and interpreted by using statistical tools like percentiles and also
used charts and graphs.
1.8 Literature Review
 According to Bruce L. Katcher, Ph.D. (1982) the study hints that more than half of
all employees believe that performance Reviews have not been useful in helping them
to improve their job performance. Employees have become cynical about the
performance management process.
 According to Robert S. Kaplan and David P. Norton (1986): A balance scorecard
can be constructed with a specific purpose of linking any aspect of the organizations
with the overall organizations goals. Our literature survey indicates that the there is no
stock type of mathematical formula for performance appraisal. It differs from company
to company. The research on company specific performance appraisal is inadequate.
This has promoted us to take up this research investigation
 According to Levinson: performance (1999) appraisal seeks to provide an adequate
feedback to each individual for his/her performance. It purports to serve as a basis for
improving or changing behavior towards some more effective working habits. It also
aims at providing data to managers with which they may judge future job assignment
and the compensation.
 According to Heyell (2000): it is the process of evaluate the performance and
qualification of the employee in terms of the requirements of the job for which he
employed, for the purpose of administration including placement, selection for
promotion, providing financial rewards and other actions which require different
treatment among the members of a group a distinguished from actions affecting all
members equally
 According to Thomas C. Alewine (2004): if the employees were involved in the
performance appraisal from the beginning, informed of his/her progress(or lack of
progress) all along and given a stake in the process, then chances were better than the
4
main object of the employee’s anger or frustration will not have been employees
supervisor
1.9 Limitations of the Study
1. The study is limited to only some employees of Suprajit Engineering Limited,

therefore the result cannot be generalized to whole organization.
2. Confidentiality matter restricts for an in depth study.
3. Personal Bias of the respondent and their busy schedule also was a limiting factor in
the collection of the data
4. The attitude of the respondents may also act as hurdle to the study.
5. Some of the employees had not co-operated in filling up and answering the
questionnaire.
5
CHAPTER 2
INDUSTRY PROFILE
AND COMPANY
PROFILE
CHAPTER - 2
INDUSTRY PROFILE
2.1 Introduction
Incorporated as a Private Limited Company in 1986, Suprajit Engineering Limited started

manufacturing, supplier & exporter high quality liner cables to exacting Japanese
standards for the automotive industry in 1987. Currently catering to a wide spectrum of
automotive and non-automotive cable requirements, Suprajit Engineering LTD has
achieved phenomenal growth and has cemented itself as India's largest manufacturer of
automotive cables with a capacity of over 150 million cables a year with a turnover of
100 million USD. SEL is now listed in the Indian bourses and is amongst the top five
cable manufacturers in the world. The firm not only manufactures but has a good niche in
exporting and supplying of Automotive Cables, Non-Automotive Cables, Mechanical
Gauges, Two Wheeler Cables, Automotive OEM Products and Cable Parts.
The firm has observed unprecedented success in last few years and has marked global
presence in the market. All this has happened under the perfect guidance of Mr.Ajit
Rai who is our Chairman & Managing Director. His understanding of global market
condition is unmatched and the organization has reaped huge benefit from the same.
Our excellent infrastructural facility in Bengaluru, Karnataka caters to our entire business
needs in efficient manner. We have provisioned sufficient place for all the departments to
facilitate their functioning, these departments have all the amenities which provide
enormous support. Our manufacturing plant is huge and has capacity to carry out bulk
production with complete comfort. We believe in carrying out our business tasks in a
very organized manner and thus have a very organized warehousing system wherein all
our manufactured products are kept in a systematic manner till the time they get
dispatched to clients.
6
We being a client centric organization lay huge stress on quality of our products as the
same have huge implications in the area of their application. We ensure to test the entire
range on various quality parameters during the process of manufacturing and also when
they take a final shape. We are very particular about quality and will never compromise
on it at any cost. Clients are facilitated with various easy payment options so that do not
face any inconvenience while making the payments, they can pay us through DD, cheque,
cash, online and RTGS. We make sure the products reach the doorstep on time through
our efficient distribution network.
Financials
SEL is not only a leading manufacturer of its products; it also has an excellent financial
history. SEL was listed in the BSE on 24th of March, 2003 and in the NSE on the 18th of
February, 2005. It has given consistent returns to investors ever since. The company can
be tracked by investors on the BSE (SEL BSE Tracker) and on the NSE (SEL NSE
Tracker).
The company’s stock has outperformed benchmark indices over long periods of time.
Important Contact Detail for investors:
 Investor Contact: Investor Relations Team (investor@suprajit.com)

 Share transfer agents: Integrated Enterprises (India) Limited (alfint@vsnl.com)
 Company Contact & Compliance Officer: Medappa Gowda, Company Secretary and
Vice President Finance (medappagowdaj@suprajit.com, +91(80)43421138)
Suprajit automotive
Registered office: No.100, Bommasandra Industrial. Area, Bangalore-560 099,

Karnataka, India Located near Bengaluru in India, Suprajit Automotive Limited (SAL) is
a 100% export oriented subsidiary of Suprajit Engineering LTD. SAL is specialized in
the large scale manufacture of cables to marque customers worldwide. Setup on a
sprawling 100,000 square feet of manufacturing space, this plant prides itself on globally
competitive manufacturing and works closely with SEL Europe to serve its customers.
7
Suprajit Europe
Based in Tamworth in the United Kingdom, SEL Europe is the SEL’S Group's technical
center to the western world. With over 70 years of cable making experience and cutting
edge development capabilities, SEL Europe seamlessly blends the cost competitive
manufacturing facilities in India with the demanding expectations of global customers.
With world class research and development, prototyping, warehousing and small volume
specialist cable manufacturing facilities, SEL Europe acts as a perfect intermediary for
the global operations of Suprajit Group.
Suprajit Engineering Limited, together with its subsidiaries, manufactures and sells liner
cables to the automotive industry in India and internationally. It offers various control
cables, including throttle and clutch cables, parking brake cables, gear shift cable
assemblies and mechanisms, transmission shifter cables, window regulator and door
cables, push pull and hood cables, tailgate cables, fuel and tailgate assemblies, tire lock
cables, fuel lid cable assemblies, brake assemblies, hood and fuel cable assemblies, lever
control throttle cables, sling and PTO cables, front and rear brake cables, choke and
speedometer cables, open close and three piece throttle cables, seat lock cables, and other
cables for automotive and non-automotive applications. The company also manufactures
mechanical gauges, such as speedometers, tachometers, fuel gauges, and various other
instruments. In addition, it provides cable parts comprising turn, rubber, and press parts;
and fuel sender/tanks and molded parts, as well as tank units, engineering parts and
assemblies, and specialized components for OEMs. Suprajit Engineering Limited was
incorporated in 1985 and is based in Bengaluru, India.
8
COMPANY PROFILE
2a. Background and Inception of the Company
Suprajit Engineering Limited was promoted first generation technocrat entrepreneur

Mr.K.Ajith Kumar Rai in the year 1985.The primary objective was to set up a cable plant
to meet the cable needs of Indian Automotive Industries.
Suprajit Engineering Limited engages in the manufacture and sale of liner cables to the
automotive industry in India and internationally. It offer a range of cables, including
throttle and clutch cables, parking brake cable assemblies, gear shift mechanisms,
transmission shifter cables, window regulator and door cables, push pull and hood cables,
tailgate cables, fuel and tailgate assemblies, tyre lock cables, fuel lid assemblies, lever
control throttle cables, brake and choke cables, sling and PTO cables, speedometer
cables, open close and three piece throttle cables, seat lock cables, and other cables for
automotive and non-automotive applications. The company is also involved in the
manufacture and sale of mechanical gauges, such as speedometers and parts, tachometers,
fuel gauges, and various other instruments. In addition, it provides cable parts comprising
turn, rubber, and press parts; and fuel sender/tank and molded parts, as well as tank units,
engineering parts and assemblies, and specialized components for original equipment
manufacturers. Suprajit Engineering Limited was incorporated in 1985 and is based in
Bengaluru, India.
SEL is a customer centric company taking on challenging product development while
manufacturing to international stipulation for a wide range of control cables and
instruments.
Suprajit Engineering Ltd (SEL) was incorporated on May 24, 1985 as a private limited
company and was converted into public limited company on June 15, 1995.
SEL started manufacturing high quality liner cables exacting Japanese standards for the
automotive industry in 1987. It is today India’s most preferred manufacturer of cables
and instruments and meets the demand of virtually every major OEM in the automotive
sector.
9
It is a customer centric company, ready to take on challenging product development and
manufacturing to international specifications for a wide range of automotive cables and
instruments. Today catering to a wide spectrum of automotive and non-automotive cable
requirements SEL has achieved a phenomenal growth, making it India's largest
manufacturer of automotive cables with a capacity of over 50 million cables a year.
From an initial turnover of Rs.0.3 million in the year 1987, SEL has now achieved a
turnover of Rs.1.00 Billion. Its compounded annual growth of over 35 % is higher than
the industry average. And it also has one of the largest manufacturing capacities for any
one company in a specific country in the world.
SEL is committed to being a world class organization, supplying cables and components
to overseas and domestic customers in automobile and non-automobile sectors.
With ISO/TS 169 49 2002 certifications, SEL practices a philosophy of continuous
improvement and adopts processes that ensures fool proof & defect free manufacturing.
SEL also seamlessly and efficiently satisfies its customer needs by optimizing production
cycles.
Product range of the company includes:
Automotive Cables
 Brake cables
 Clutch cables
 Throttle cables
 Starting cables
 Gear Shift cables
 Choke cables
 Speedometer
 Tachometer cables
 Window Regulator cables
 Mirror cable assemblies
 Seat recliner cables
 Latch Release cables, and many more.
Non - Automotive Cables for:
 Washing Machines
10
 Material Handling
 Earth Moving Equipment
 Marine applications and many more.
Push-Pull Cables
 Push Pull Cables for varied applications.
Clientele:
 TVS Motor Company
 Hero Honda Motors
 Bajaj Auto
 Telco
 Yamaha Motor
 Hyundai Motors (Tier-II)
 Ford (Tier-II)
 Honda Motorcycles & Scooters
 LML
 Lear Corporation
 Eicher Motors
 General Motors (Tier-II)
 Mahindra & Mahindra
 Swaraj Mazda
 Piaggio
 JCB
Achievements/ recognition:
 ISO/TS 169 49 2002 certification
11
2b. Promoters
Managing Director – Ajith Kumar Rai
Executive Director – Dr. Mohan Chelliah
President -- N.S. Mohan
Vice President -- Narayan Shankar
VP Finance and CS – Medappa Gowda
VP of Human Resource – Shankar
Head of Information Technology – Akhilesh Rai
2c. Vision, Mission, and Quality Policy
Vision
 To be a globally competitive manufacturer of cable in terms of Quality, Cost,

Delivery and Development.
 To supply customers globally by leveraging current competence, opportunities,
expansions and acquisitions.
 To be a leader in automotive cable business, globally
Mission
Suprajit Engineering Limited is a global supplier of automotive components and sub-

systems serving the world's original equipment manufacturers and the aftermarket. We
utilize our engineering and materials expertise, proprietary technology, manufacturing
skill, distribution flexibility and marketing power to deliver products and services of
value to our customer. We're focused on the globalization of our teams, products and
12
processes to bring greater opportunities for our customer and employees, and value to our
constituents.
Quality Policy
Excellence in customer satisfaction by providing consistent quality, on - time Delivery,

competitive cost and development of benchmarked products. Through focused efforts on
continual improvements in system and processes with total employee involvement.
Quality Objectives
 To work continuously towards customer Satisfaction by implementing customer

specific requirements in all levels of organization.
 To work continuously with suppliers for QMS implementation and improvement,
SQMS rating 70% within one year and 80% thereafter
 To work towards zero missed schedules within six months and ensure 100%
thereafter to all customers.
 To work continuously towards ITR improvements 20 within one year and 25
thereafter; and 100% adherence to min-max levels for customers and stores stock.
 To work towards implementation of SMED for minimum 4 critical processes within
one year and minimum 6 critical processes within 2 years
 To work continuously to reduce COPQ by minimum 10% within one year and
minimum 5% thereafter.
 To study identify and eliminate non value and eliminate non value added activities
across all functions/ process minimum 1 per month.
 To achieve start of production for one product from one new customer every year.
Also to benchmark two processes/ practices per year.
 To work continuously on employee training average of 20hrs/year per person within
one year and 25hrs/year person thereafter.
 To study and identify every year once Un-Safe Act and Un-Safe condition(s) and
eliminate them within the year.
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2d. Product Profile
The history of the automobile begins as early as 1769, with the creation of steam engine
automobiles capable of human transport. In 1806, the first cars powered by an internal
combustion running on fuel gas appeared, which led to the introduction in 1885 of the
ubiquitous modern gasoline- or petrol-fueled internal combustion engine. Cars powered
by electric power briefly appeared at the turn of the 20th century, but largely disappeared
from use until the turn of the 21st century. The early history of the automobile can be
divided into a number of eras, based on the prevalent means of propulsion. Later periods
were defined by trends in exterior styling, and size and utility preferences.
The Indian Automobile industry seven decades old is one of the largest industries and
contributes 5 per cent of gross domestic product (GDP) and has deep forward and
backward linkages. Investment in the India automobile industry amounts to US$10
billion, and it employs 500,000 people directly There are 13 passenger car manufacturers,
7 commercial vehicle manufacturers, 10 tractor manufacturers and four engine makers.
The future projections on Indian automobile industry is that production capacity will
reach 7 million in 2004-2005, exports achieve US$1 billion in 2006 and passenger car
demand reach 800,000 by 2006. India is likely to emerge as the preferred manufacturing
base for small cars in Asia.
Speed control with a centrifugal governor was used in automobiles as early as the 1910s,
notably by Peerless. Peerless advertised that their system would "maintain speed whether
uphill or down". The technology was invented by James Watt and Matthew Bolton in
1788 to control steam engines. The governor adjusts the throttle position as the speed of
the engine changes with different loads.
Modern control cable (also known as a Speedo stat) was invented in 1945 by the inventor
and mechanical engineer Ralph Teeter. His idea was born out of the frustration of riding
in a car driven by his lawyer, who kept speeding up and slowing down as he talked. The
first car with Teeter’s system was the 1958 Imperial (called "Auto-pilot"). This system
calculated ground speed based on driveshaft rotations and used a solenoid to vary throttle
position as needed.
14
A 1955 U.S. Patent for a "Constant Speed Regulator" was filed in 1950 by M-Sgt Frank
J. Riley. He installed his invention, which he conceived while driving on the
Pennsylvania Turnpike, on his own car in 1948. Despite this patent, the inventor, Riley,
and the subsequent patent holders were not able to collect royalties for any of the
inventions using control cable.
Theory of operation
Control cable is a system that automatically controls the speed of an automobile. The
driver sets the speed and the system takes over the throttle of the car to maintain the
speed. The system thereby improves driver comfort in steady traffic conditions. In
congested traffic conditions, where speeds vary widely, these systems are no longer
effective. Most control cable systems do not allow the use of cable control below a
certain speed.
In modern designs, the control cables may need to be turned on before use — in some
designs it is always "on" but not always enabled (not very common), others have a
separate "on/off" switch, while still others just have an "on" switch that must be pressed
after the vehicle has been started. Most designs have buttons for "set", "resume",
"accelerate", and "coast" functions. Some also have a "cancel" button. Alternatively,
depressing the brake or clutch pedal will disable the system so the driver can change the
speed without resistance from the system. The system is operated with controls easily
within the driver's reach, usually with two or more buttons on the steering wheel spokes
or on the edge of the hub like those on Honda vehicles, on the turn signal stalk like in
many older General Motors vehicles or on a dedicated stalk like those found in,
particularly, Toyota and Lexus. Earlier designs used a dial to set speed choice.
The driver must bring the vehicle up to speed manually and use a button to set the control
cable to the current speed. The control cable takes its speed signal from a rotating
driveshaft, speedometer cable, wheel speed sensor from the engine's RPM, or from
internal speed pulses produced electronically by the vehicle. Most systems do not allow
the use of the control cable below a certain speed (normally around 25 mph). The vehicle
will maintain the desired speed by pulling the throttle cable with a solenoid, a vacuum
15
driven servomechanism, or by using the electronic systems built into the vehicle (fully
electronic) if it uses a 'drive-by-wire' system.
All control cable systems must be capable of being turned off both unambiguously and
automatically when the driver depresses the brake, and often also the clutch. Cable
control often includes a memory feature to resume the set speed after braking, and a coast
feature to reduce the set speed without braking. When the cable control is engaged, the
throttle can still be used to accelerate the car, but once the pedal is unconfined the car will
then slow down until it reaches the previously set speed.
On the latest vehicles fitted with electronic throttle control, control cable can be easily
integrated into the vehicle's engine management system. Modern "adaptive" systems (see
below) include the ability to automatically reduce speed when the distance to a car in
front, or the speed limit, decreases. This is an advantage for those driving in unfamiliar
areas.
The control cable systems of some vehicles incorporate a "speed limiter" function, which
will not allow the vehicle to accelerate beyond a pre-set maximum; this can usually be
overridden by fully depressing the accelerator pedal. (Most systems will prevent the
vehicle accelerating beyond the chosen speed, but will not apply the brakes in the event
of over speeding downhill.)
Electronic Control Cable
Daniel Aaron Wisner invented Automotive Electronic Control Cable in 1968 as an

engineer for RCA's Industrial and automation systems division in Plymouth, Michigan.
His invention described in two patents filed that year (#3570622 & #3511329), with the
second modifying his original design by debuting digital memory, was the first electronic
gadgetry to play a role in controlling a car and ushered in the computer-controlled era in
the automobile industry. Two decades lapsed before an integrated circuit for his design
was developed by Motorola Inc. As the MC14460 Auto Speed Control Processor in
CMOS. As a result, cable control was eventually adopted by automobile manufacturers as
standard equipment and nearly every car built and many trucks are fitted with a
configuration of the circuitry and hardware nearly identical to his prototype. The
16
advantage of electronic speed control over its mechanical predecessor, which was
featured on luxury models but never gained wide acceptance, was that it could be easily
integrated with electronic accident avoidance and engine management systems.
Advantages and Disadvantages
Some of those advantages include:
 Its worth for long drives (reducing driver fatigue, improving comfort by allowing
positioning changes more safely) across highways and sparsely populated roads. This
usually results in better fuel efficiency.
 Some drivers use it to avoid unconsciously violating speed limits. A driver who
otherwise tends to unconsciously increase speed over the course of a highway journey
may avoid a speeding ticket. Such drivers should note, however, that a cable control
may go over its setting on a downhill which is steep enough to accelerate with an
idling engine.
However, control cable can also lead to accidents due to several factors, such as
 The lack of need to maintain constant pedal pressure, which can help lead to accidents
caused by highway hypnosis or incapacitated drivers; future systems may include a
dead man's switch to avoid this.
 When used during inclement weather or while driving on wet or snow- and/or ice-
covered roads, the vehicle could go into a skid (although this may be somewhat
mitigated by cars equipped with Electronic Stability Control). Stepping on the brake
such as to disengage the control cable could result in the driver losing control of the
vehicle. Driving over "rolling" terrain, with gentle up and down portions, can usually
be done more economically (using less fuel) by a skilled driver viewing the
approaching terrain, by maintaining a relatively constant throttle position and allowing
the vehicle to accelerate on the downgrades and decelerate on upgrades, while
reducing power when cresting a rise and adding a bit before an upgrade is reached.
Control cable will tend to over throttle on the upgrades and retard on the downgrades,
wasting the energy storage capabilities available from the inertia of the vehicle.
17
2e. Areas of Operation
Sl.No State Number of

branches
1 Bangalore 6
2 Pune 2
3 Vapi 1
4 Sahand 1
5 Bhawadi 1
6 Manesar 1
7 Haridwar 1
8 Pantnagar 1
2f. Infrastructure Facilities

Company shall provide the required infrastructure facilities at all the plants. To ensure the
comfort of the employees, adequate space and proper furniture shall be provided in the
company. Clean drinking water facility to the workers shall be provided in the company.
Suprajit Engineering Limited has its own office premises. The infrastructure facilities that
are available in the company are,
Training and development:
It has a well-organized training and development center. The employees are given
training in various areas as per the administrative requirement if they have. The suitable
organizational training is given to all.
 Canteen:
Canteen is well established by personnel department. The objective of this faculty is to
provide the employee clean, hygienic and nutritious food at cheaper rate.
 Office:
Suprajit Engineering Ltd has its own well structured building with a central air condition
System, fire extinguishing service.
18
2g. Competitors Information
1. Premier Auto Cables
A premier engineering company is offering a diverse range of control and speedometer
cables including clutch cables, Throttle cables, and many more. Cables are the most
imperative parts of the automotive industry. Premier auto cables, established in the year
1977, are engaged as a manufacturer, supplier and exporter of cables and cable
accessories. Our wide ambit of products includes control and speedometer cables for
diverse applications-
 Two wheeler cables for motorcycles, scooters, Electronic bikes and mopeds
 Three wheeler cables for load carriers and passenger carrier
 Passenger car cables
 Tractor cables
 Commercial vehicle cables for light commercial vehicles, buses and trucks
 Snowmobile cables
2. Metex Group
With accurate, fitting, durable and reliable cables, we, Metex group have carved a
valuable niche in the national as well as international market. Since our inception in the
year 1979, we have moved places to become one of the most accomplished
manufacturers and exporters of Throttles, Gears, Clutches, Hand breaks, Rear breaks,
stop, Auto lights, etc. We are the first indian manufacturer of speedometer sand control
cables.
3. Raju Auto wire
With utmost sincerity towards manufacturing and supplying world class automotive
control wires, we Raju Auto wire have expanded our business throughout the nation.
Backed by a team of engineers possessing years of industry experience, we have
established a strong foothold in the domain of Auto control wires for three wheelers, two
wheelers etc. Established in 2001, we are recognized as one of the leading manufacturers
and suppliers assuring quality products and services. Precisely designed in compliance
19
with industry standards, our automotive control wires are highly demanded in the
automobile industry. We are offering two wheeler wires, three wheeler wires, Gear wire,
Break wire and more.
4. Padoti Enterprises
Since our establishment in the year 2013, we, Padoti enterprises are engaged in
manufacturing, exporting and supplying of qualitative range of products at most
competitive prices, our offered range comprises of brake shoe, Two wheeler brake shoe,
clutch, front brake, meter, Outer-inner accelerator cable, inner tubes, Butyl tubes, two
wheeler tubes, three wheeler tubes and Rear brake. Our products are made using high
grade raw materials which are sourced from the reliable vendors of the industry.
Manufactured using high tech machinery and technology, our products are demanded for
their cost effective prices, performance prices, performance, long service life, strong
construction, resistance against rust and corrosion etc.
5. Champion Cables, Lucknow
Company was set up in 1977 as manufacturers and suppliers of premium quality spare
parts with it unit at Lucknow. The company started production of automobile cables
made to the specifications of Bajaj, Hero Honda, Royal Enfield, Scooters India, LML,
Piaggio Lambretta Scooters etc. With the passage of time, the organization exhibited
consistent growth and expansion. The quality policy of the company enabled it to become
the pioneer automobile cable manufacturer in the country.
6. Silco Cables, Delhi
Established in the year 2008, at New Delhi, India. We ―Suraj Auto Industries‖ are a
quality driven company engaged in manufacturing and supplying of automotive cables
and automotive wires. Providing absolute usage satisfaction to its clients, we ensure that
right from procurement to the end production stage; all processes are carried out
flawlessly so as to ensure delivery of a quality end product.
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2h. SWOT Analysis:
SWOT is a technique to identify the strength, weaknesses, threat and opportunities

a company in terms of both the external and the internal environment of a company
Strengths:
The important strengths of SEL are as follows
 Quality control and high quality products: SEL produces good procedures to test
the quality of incoming and outgoing products. This will help SEL to produce good
quality products.
 Technology: SEL using good and highly influenced technology this will helps to
produce high quality products.
 High level of training: As SEL is an emerging manufacturing company of the

country; they are continuously striving hard to increase their productivity. Hence they
give much importance in training their employees. There is training sessions for the
engineers, masons, retailers and dealers of the company which are held all over
Bengaluru at different times of the year. On the other hand, the factory workers in the
factory of SEL are also trained from time to time. This training mainly involves when
new machinery or a process system is implemented in the factory. The employees of
various departments working in the corporate office of SEL are also trained from time
to time. Intensive training programs are organized by each department for the new
entrants of the company.
 Good location: SEL located in a good location which is center part of all business
activities like production, availability of raw material, availability of labors,
transportation facility everything is near to SEL.
 Large marketing team: the company has a large marketing team who are actively
working to manage the work marketing, sales, consumer service collectively as all
these works are done within one department. Due to this the flow of work is efficient
in terms of time and flexibility.
21
 Setting up of new plants at a record speed & nearer to customers manufacturing
location.
 Addition of capacities from time to time customer demands.

 ISO 14000 & 18000 under implementation.
Weakness:
Suprajit is a very big organization in India. SEL is providing a good quality product to
the customers. On my study I am not able to find out the weakness of SEL, but also I can
find some weakness of SEL. I may not say these are weakness but I would say it’s just a
drawback of SEL.
 Toyota is one of the major automotive sectors in India as well as globe. It is ruling the
Indian automotive sector but this company is missing from SEL’s customer list. This
is one of the important drawbacks of SEL.
 On my study I found that installation charge of machineries of SEL is too high.

Because SEL installing machineries in each and every unit. This may increase the
cost of installation of the company.
 SEL has to enlarge its business all over the globe. Already SEL has some foreign
customers but also enlarge the foreign customer list.
 SEL is not taking any entertainment activities to motivate the employees.
 No diversification in the business.
Opportunities:
 Opportunity for export: SEL is already exporting their products abroad. However,
there is a good opportunity for the company to export their products in other countries
such as Russia, Australia. They are also getting offers from some African countries
for exporting their products.
 Great potential for growth and profitability: Given the current situation of the
cable manufacturing industry of the country, there is a great opportunity for the
company to expand their business and earn more profits in the long run.
22
 Having capacity for meeting high demands and attains optimum utilization of existing
resources.
 Due to advancement in technology there is a scope for recruiting and retaining right
people on right job.
 Opportunity to diversify the business into different sectors.
Threats:
 Presence of competitors: There is huge number of both local and foreign
competitors of SEL in the automotive market. These companies; especially the
multinational companies are a huge threat to SEL in terms of their experience,
resources and adaptation of foreign management practices and skills.
 Price increase in International market: The price increase in international market

is another matter of concern for SEL due to the variation in exchange rates as well as
the decreased value of the money. This is the main threat to SEL because SEL has
most of foreign customers so that it should deal with foreign currency.
 Increase of raw material in international market: Some of the raw materials are
imported from abroad. Thus if the price of the raw materials increase then the overall
cost and price of the product produced by SEL and other companies would also have
to be increased. Since SEL imports most its raw material from china only.
 Political instability: There is lot of political instability in the country. This may
anytime bring interruptions in the proper flow of the operation of SEL and other
companies of the country as well.
2i. Future growth and Prospects

The company is presently producing 150 million cables. In future they are planning to
produce 160 million cables. The company has also plans to locate three more plants at
Gujarat, Bangalore and Chennai. The company has also plans to expand its business
through tie ups with Yamaha and Hyundai
23
2j. Analysis of Financial Statement
Table No: 2.1 Profit and Loss accounts of Suprajit Engineering Ltd. for the year
ended 2014, 2013, 2012.
Income 2014(crore) 2013(crore) 2012(crore)

Sales turnover 482.30 420.98 378.72
Excise duty 0.00 0.00 0.00
Net sales 482.30 420.98 378.72
Other income 2.83 8.32 2.18
Stock Adjustments 8.42 3.56 5.26
Total Income 493.55 432.86 386.16
Expenditure
Raw materials 311.82 273.96 253.60
Power & Fuel cost 7.84 6.42 5.73
Employee Cost 56.79 46.77 40.18
Other Manufacturing Expenses 0.00 0.00 0.00
Selling and Admin Expenses 0.00 0.00 0.00
Miscellaneous Expenses 29.11 24.55 17.94
Preoperative ExpCapitalised 0.00 0.00 0.00
Total Expenses 405.56 351.70 317.45
Operating Profit 85.16 72.84 66.53
PBDIT 87.99 81.16 68.71
Interest 11.85 9.59 8.64
PBDT 76.17 71.57 60.07
Depreciation 6.95 5.67 5.12
Other Written Off 0.00 0.00 0.00
Profit Before Tax 69.22 65.90 54.95
Extra-ordinary items 0.00 -0.19 0.00
PBT 69.22 65.71 54.95
Tax 21.56 18.27 15.74
Reported Net Profit 47.66 47.45 39.22
Total Value Addition 93.75 77.74 63.85
Preference Dividend 0.00 0.00 0.00
Equity Dividend 11.40 9.00 7.80
Corporate Dividend tax 1.94 1.50 1.27
Per Share data (annualized)
Shares in issue (lakhs) 1200.20 1200.20 1200.20
Earnings Per Share (Rs) 3.97 3.95 3.27
Equity Dividend (%) 95.00 75.00 65.00
Book value (Rs) 16.60 13.74 10.66
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Table No: 2.2 Balance Sheet of Suprajit Engineering Ltd for the year 2014, 2013,
2012 are given below.
Sources 2014(crores) 2013(crore) 2012(crore)

Total share capital 12.00 12.00 12.00
Equity Share capital 12.00 12.00 12.00
Share Application Money 0.00 0.00 0.00
Preference Share Capital 0.00 0.00 0.00
Reserves 187.25 152.94 115.98
Revaluation Reserves 0.00 0.00 0.00
Net worth 199.25 164.94 127.98
Secured Loans 115.37 86.21 64.80
Unsecured Loans 0.43 1.43 2.71
Total Debt 115.80 87.64 67.51
Total Liability 315.05 252.58 195.49
Application of Fund
Gross Block 181.15 150.22 125.57
Less: Accum. Depreciation 47.84 41.32 35.88
Net Block 133.31 108.90 89.69
Capital Work in Progress 0.72 11.59 12.39
Investment 95.42 66.02 38.69
Inventories 58.52 36.96 32.39
Sundry Debtors 100.90 84.40 75.56
Cash and Bank Balance 4.00 5.98 2.90
Total Current Assets 163.42 127.34 110.85
Loans and Advances 17.00 15.00 12.83
Fixed Deposits 0.00 0.00 0.00
Total CA, Loans & 180.42 142.34 123.68
Advances
Deferred Credit 0.00 0.00 0.00
Current Liability 85.24 69.02 62.08
Provisions 9.59 7.24 6.87
Total CL & provisions 94.83 76.26 68.95
Net Current Assets 85.59 66.08 54.73
Miscellaneous Expenses 0.00 0.00 0.00
Total Assets 315.04 252.59 195.50
Contingent Liabilities 8.99 10.28 15.74
Book Value(Rs) 16.60 13.74 10.66
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Ratio Analysis
1. Current Ratio:
Current ratio may be defined as the relationship between current assets and current
liabilities. Current ratio indicates the ability to repay the short-term commitments
promptly. It is most widely used to make the analysis of short term financial positions or
liquidity of the firm. It is calculated by dividing the total of current assets by the total
current liabilities. The ideal current ratio is 2:1.
Current asset
Current Ratio =
Current Liability
Table No: 2.3 Current Ratio
Year 2012 2013 2014
Current Assets 221.7 254.68 326.84
Ratio 3.57 3.68 3.83
As a conventional rate, a current ratio of 3.57 or more is considered as good. Here the
above table shows the current ratio of the company in 2013 is 3.68 which increased to
3.83 in the year 2014. These ratios clearly show that the company is in good position to
meet its current liability.
26
2. Debt Equity Ratio
Debt equity ratio is an important ratio which shows the financial position of an
organization. It expresses the relationship between the debt owned by an organization and
the net worth owned by the same. Usually a firm using high debt will be having a high
debt equity ratio and vice versa. It is a financial ratio indicating the relative proportion of
shareholders equity and debt used to finance a company’s assets
Debt
Debt equity Ratio =
Equity
Table No: 2.4 Debt Equity Ratio
Year 2012 2013 2014
Debt 67.51 87.64 115.80
Equity 127.98 164.51 199.25
Ratio 0.53 0.53 0.58
The above table shows that the comparatively satisfactory financial position. In the year
2012 the financial ratio was 0.53 and in the year 2013 the ratio is 0.53 there is no changes
in debt equity ratio. But in the year 2014 we can see that slight increase in the ratio
actually this is not good sign for the company.
27
3. Inventory Turnover Ratio
The inventory turnover ratio is an efficiency ratio that shows how effectively inventory is
managed by comparing cost of goods sold with average inventory for a period. This
measures how many times average inventory is ―turned ―or sold during a period
Net Sales
Inventory Turnover Ratio =
Invenory
Table No: 2.5 Inventory Turnover Ratio
Year 2012 2013 2014
Net sales 378.72 420.98 482.30
Inventory 32.39 36.96 58.52
Ratio 11.69 11.39 8.24
The above table shows that in 2012 inventory turnover ratio is 11.69 and in 2013
inventory turnover ratio is 11.39 and it has been again decreased to 8.24 in 2014. It shows
that the company is not using their inventory to get good turnover.
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4. Quick Ratio
The acid test ratio or quick ratio is a measure of liquidity. It is referred to as quick ratio
because it is measurement of firm’s ability to convert its current assets quickly in to cash
in order to meet its current liabilities. Liquid asset means all the current asset less
inventories which can be quickly converted to cash. A liquid ratio of 1:1 is considered
satisfactory. An asset is liquid if it can be converted in to cash immediately without a loss
of value. Cash in the most liquid assets other assets are considered to be relatively liquid
and included in quick assets are debtors, bills receivables and marketable securities.
Quick Asset
Quick Ratio =
Current Liability
Table No: 2.6 Quick Ratio
Year 2014 2013 2012
Quick Asset 121.90 105.38 91.29
Ratio 1.29 1.38 1.32
From the above table it can be seen that in the year 2012 quick ratio was 1.32, in the year
2013 ratio was 1.38 and in the year 2014 quick ratio was 1.29. A quick ratio is said to be
satisfactory when it is 1:1. In the year 2014 the ratio was decreased to 1.29 when
compared with previous year. So the ratio of company showed a good liquidity position.
29
5. Fixed Asset Turnover Ratio
Fixed asset turnover ratio compares the sales revenue a company to its fixed assets. This
ratio tells us how effectively and efficiently a company is using its fixed assets to
generate revenues. This ratio indicates the productivity of fixed assets in generating
revenues. If a company has a high fixed asset turnover ratio, it shows that the company is
efficient at managing its fixed assets. Fixed assets are important because they usually
represent the largest component of total assets. An increasing trend in fixed assets
turnover ratio is desirable because it means that the company has less money tied up in
fixed assets for each unit of sales. A declining trend in fixed asset turnover may mean
that the company is over investing in the property, plant and equipment
Sales
Fixed Asset Turnover Ratio =
Fixed Asset
Table No: 2.7 Fixed Asset Turnover Ratio
Year 2014 2013 2012
Turnover 482.30 420.98 378.72
Fixed Asset 181.15 150.22 125.57
Ratio 2.66 2.80 3.02
The Table No: 2.7 shows that, In 2012 Fixed Asset Turnover Ratio is 3.02 and it
increased to 2.80 in 2013, but in 2014 it has been decreased to 2.66. So the decrease in
2014 which need to be looked upon by the management and necessary actions for
reconciling the same should be adopted.
30
CHAPTER 3
THEORETICAL
BACKGROUND OF THE
STUDY
CHAPTER - 3
THEORETICAL BACKGROUND OF THE STUDY
3.1 Performance Appraisal
One of the most challenging aspects for a firm is how to manage a performance of the
various overseas facilities. Performance appraisal that enables to performance against
clearly defined pre-set goals and targets. Goals tend to be translated into performance
criteria so specificity and measurability issues are important aspect we need to recognize
that soft and contextual goals are often used as bases for performance criteria. Hard goals
are objectives, quantifiable and directly measured such as return on assets and market
share. Soft goal tend to be relationship or trait based, such as leadership style or
interpersonal skills. Contextual goals attempt to take into consideration factors that result
from the situation in which performance occurs.
The process of performance appraisal helps the employee and management to know the
level of employee’s performance compared to the standards/ predetermined level. It is
viewed that performance appraisal is useful to decide upon employee promotions
transfer, salary determination and the like. The recent development in the human resource
management recently indicates that performance appraisal is the basis for employee’s
development. Performance appraisal indicates the level of desired performance level,
level of actual performance and the gap between these two.
An organization goal can be achieved only when people put in their best efforts.
Performance appraisal helps to ascertain whether an employee has shown his or her best
performance on a given job. The employee assessment is one of the fundamental jobs or
HRM, but not an easy one though.
In simple terms, performance appraisal may be understood as the assessment of a

individual’s performance in systematic way, the performance being measured against
such factors as job knowledge, quality and quantity of output, initiative, leadership,
abilities health, judgment and the like. Assessment should not be confined to past
31
performance along potentials of the employee for future performance must also be
assessed.
3.2 Meaning
Performance appraisal is the process of obtaining analyzing and recording information

about the relative worth of an employee. The focus of the performance appraisal is a
measuring and improving the actual performance of the employee and also the future
potential of the employee. Its aim is to measure what an employee does.
3.3 Definition
According to Flippo, a prominent personality in the field of Human resources,

―performance appraisal is the systematic, periodic and an impartial rating of an
employee’s excellence in the matters pertaining to his present job and his potential for a
better job.‖ Performance appraisal is the systematic way of reviewing and assessing the
performance of an employee during a given period of time and planning for his future.
It is a powerful tool to calibrate, refine and reward the performance of the employee. It
helps to analyze his achievements and evaluate his contribution towards the achievements
of the overall organizational goals. By focusing the attention on performance,
performance appraisal goes to the heart of personnel management and reflects the
management’s interest in the progress of the employees.
3.4 Objective
The purpose of performance appraisal has been fundamentally backward or historical

oriented, past performance has been reviewed in the light of the results achieved
performance appraisal aims at the different purpose:
 To review the performance of the employees over a given period of time.

 To judge the gap between the actual and the desired performance.
 To help the management in exercising organizational control.
32
 Helps to strengthen the relationship and communication between superior –
subordinates and management – employees.
 To diagnose the strengths and weaknesses of the individuals so as to identify the
training and development needs of the future.
 To provide feedback to the employees regarding their past performance.
 Provide clarity of the expectations and responsibility of the functions to be performed
by the employees.
 To judge the effectiveness of the other human resource functions of the organization
such as recruitment, selection, training and development.
 To reduce the grievances of the employees.
 T o guide job challenges with the help to continues ranking.
 To provide fair and equitable compensation based on performance.
 To create and maintain satisfactory level of performance.
3.5 Traditional Method:
1. Essay evaluation method:
These kinds of performance appraisal, managers / supervisors are required to figure out
the strong and weak points of staff’s behaviors. Essay evaluation method is a non –
quantitative technique. It is often mixed with the method the graphic rating scale.
2. Performance ranking method:
The performance appraisal of ranking is used to assess the working performance of

employees from the highest to lowest levels. Managers will make comparisons of an
employee with the others, instead of making comparison of each employee with some
certain standards.
3. Paired comparison analysis:
This form of performance appraisal is a good way to make full use of the methods of
options. There will be a list of relevant options. Each option is in comparison with the
33
others in the list. The results will be calculated and then such options with highest score
will be mostly chosen.
4. Critical incident method:
This format of performance appraisal is a method which is involved identifying and

describing specific incidents where employees did something really well or that needs
improving during their performance period.
5. Field review:
Field review is useful for large organizations and appears to overcome a number of the
weakness found in many of the other systems. It consists of having a trained employee
from the personnel department interview line supervisors about their respective
subordinates. The supervisor is asked to give his opinion about the progress of his
subordinates, the level of performance of each subordinate and possible plans of action in
cases requiring further consideration.
6. Weighted checklist method:
In this method performance appraisal is made under a method where the jobs being
evaluated based on descriptive statements about effective and ineffective behavior on
jobs.
7. Graphic rating scales:
Graphic rating scales consider the popular and older method in order to assess the
employee’s performance. In this style of performance appraisal, the management just
simply does checks on the performance levels of their staff.
8. Forced ranking (forced distribution):
In this method of performance appraisal, employees are ranked in terms of forced

allocations. For instance, it is vital that the proportions be shared in the way that 10 or
20% will be the highest level of performances, while 70 or 80% will be in the middle
level and the rest will be in the lowest one.
34
3.6 Modern methods
1. Management by Objectives (MBO) method:
MBO is a method of performance appraisal in which managers or employers set a list of

objectives and make assessments on their performance on a regular basis, and finally
make rewards based on the results achieved. This method mostly cares about the results
achieved (goals) but not to the way how employees can fulfill them.
2. 360 degree appraisal:
The appraiser may be any person who has through knowledge about the job content,
contents to be appraised standards while performing a job. The appraiser should be
capable of determining what is more important and what is relatively less importance, he
should prepare reports and make judgment without bias. Typical appraises are
supervisors, peers, subordinates, employees themselves, and consultants.
3. Assessment centers:
An assessment center typically involves the use of methods like social/ informal events,
tests and exercises, assignments being given to a group of employees to assess their
competencies to take higher responsibilities in the future. Generally, employees are given
an assignment similar to the job they would be expected to perform if promoted. The
trained evaluators observe and evaluate employees as they perform the assigned jobs and
are evaluated on job related characteristics.
4. Behaviorally anchored rating scales:
This performance appraisal is based on making rates on behaviors or sets of indicators to

determine the effectiveness or ineffectiveness of working performance. The form is a mix
of the rating scale and critical incident techniques to assess performance of the staff.
35
5. Human resource accounting method:
Human resources are valuable assets for every organization. Human resource accounting
method tries to find the relative worth of these assets in the terms of money. In this
method the performance appraisal of the employees is judged in terms of cost and
contribution of the employees. The cost of employees include all the expenses incurred
on them like their compensation, recruitment and selection costs, induction and training
costs etc where as their contribution includes the total value added( in monetary terms).
The difference between the cost and contribution will be the performance of the
employees. Ideally, the contribution of the employees should be greater than the cost
incurred on them.
3.7 Process of performance appraisal
1. Establishing performance standards:
The performance appraisal is the setting up of the standards which will be used to as the
base to compare the actual performance of the employees. This step requires setting the
criteria to judge the performance of the employees as successful or unsuccessful and the
degrees of their contribution to the organizational goals and objectives. The standards set
should be clear, easily understandable and in measurable terms.
2. Communicating the standards:
Once set, it is the responsibility of the management to communicate the standards to all
the employees of the organization. The employees should be informed and the standards
should be clearly explained to them. This will help them to understand their roles and to
know what exactly is expected from them. The standards should also be communicated to
the appraisers or the evaluators and if required, the standards can also be modified at this
stage itself according to the relevant feedback from the employees or the evaluators.
36
3. Measuring the actual performance:
The major part of the performance appraisal process is measuring the actual performance
of the employees that is the work done by the employees during the specified period of
time. It is a continuous process which involves monitoring the performance throughout
the year. This stage requires the careful section of the appropriate techniques of
measurement, taking care that personal bias does not affect the outcome of the process
and providing assistance rather than interfering in an employees work.
4. Comparing the actual with the Desired Performance:
The actual performance is compared with the desired or the standard performance. The
comparison tells the deviations in the performance of the employees from the standards
set. The result can show the actual performance being less than the desired performance
depicting a negative deviation in the organizational performance. It includes recalling,
evaluating and analysis of data related to the employees.
5. Discussing results:
The result of the appraisal is communicated and discussed with the employees on one- to-
one basis. The focus of this discussion is on communication and listening. The results,
the problems and the possible solutions are discussed with the aim of problem solving
and reaching consensus. The feedback should be given with a positive attitude at this can
have an effect on the employees future performance. The purpose of the meeting should
be solve the problems faced and motivate the employees to perform better.
6. The last step of the process is to take decisions which can be taken either to improve
the performance of the employees, take the required corrective actions, or the related HR
decisions like rewards, promotions, demotions, transfers etc.
37
CHAPTER 4
DATA ANALYSIS AND
INTERPRETATION
CHAPTER- 4
DATA ANALYSIS AND INTERPRETATION
Analysis and interpretation of the data one made based upon the objectives of the study.
The responses for each question are converted in to tables which are interpreted using
statistical tools.
Table No: 4.1 Age of the Employees
Opinion No. of respondents Percentage

Below 25 years 5 17
25-35 years 23 76
35-45 years 2 7
Above 45 years 0 0
Total 30 100
Figure No: 4. 1 Age of the Employees
80 76%
70
60
50
40
30
17%
20
7%
10
0
0
Below 25 years 25-35 years 35-45 years Above 45 years
Percentage
From the Table No: 4.1 and Figure No 4.1 it is clear that 17% of the employees are
below 25 years of age and 76% fall within 25-35 years and only 7% are between 35-45
years of age . So from the analysis it is clear that majority of employees are middle aged.
38
Table No: 4.2 Employees Responses on how Frequent is the Appraisal done for
Confirmed Staff
Opinions No. of respondents Percentage

Once in a year 20 67
Once in 6 months 10 33
Quarterly 0 0
Monthly 0 0
Total 30 100
Figure No: 4.2 Employees Responses on how Frequent is the Appraisal done for
Confirmed Staff
80
70 67%
60
50
40
33%
30
20
10
0 0
0
Once in a year Once in 6 months Quarterly Monthly
Percentage
From the above Table No 4.2 and Figure No 4.2 it is clear that 67% of the employees are
satisfied for the appraisal being done in once in a year, and 33% of the employees are
satisfied for the appraisal being done in once in 6 months. This shows that majority of the
employees are happy with yearly performance appraisal.
39
Table No: 4.3 Showing Classifications of Employees Based on Gender
Opinions No of respondents Percentage
Male 25 83
Female 5 17
Total 30 100
Figure No: 4.3 Showing Classification of Employees Based on Gender
Female
17%
Male
83%
The above Table No: 4.3 and Figure No: 4.3 reveals that 83% of the respondents are male
and only 17% of the respondents are female. This shows that majority of the employees
are male while compare to female in the organization.
40
Table No: 4.4 Responses Regarding Employees Work Experience in Present
Organization

Below 5 years 24 80
5-10 years 4 13
10-15 years 2 7
Above 15 years 0 0
Total 30 100
Figure No: 4.4 Responses Regarding Employees Work Experience in Present

Organization
80%
80
70
60
50
40
30 13%
20 7%
0
10
0
Below 5 years 5-10 years 10-15 years Above 15 years
Percentage
The above Table No: 4.4 and Figure No: 4.4 describes 80% of the employees are below 5
years of work experience and 13% fall within 5-10 years and 7% are between to 10-15
years and no employees are above 15 years. This shows that majority of the employees
are having work experience of below 5 years.
41
Table No: 4.5 Responses Regarding Employees Expectation in Terms of Work

Excellent 2 7
Good 20 66
Average 6 20
Poor 2 7
Total 30 100
Figure No:4.5 Responses Regarding Employees Expectation in Terms of Work
66%
70
60
50
40
20%
30
20 7% 7%
10
0
Excellent Good Average Poor
Percentage
From the Table No: 4.5 and Figure No: 4.5 It is foundout that 66% of the respondents
rate that their expectation in terms of work are good, 20% of the respondents rate it as
average and 7% of the respondents rate it as excellent and another 7% rate it as poor. It is
revealed that majority of the respondents are satisfied interms of the expectation of work.
42
Table No: 4.6 Showing the Appraisal Methods Followed in the Organization

Self evaluation 5 17
Supervise evaluation 25 83
Peer evaluation 0 0
360 degree appraisal 0 0
Total 30 100
Figure No: 4.6 Showing the Appraisal Methods Followed in the Organization
83
90
80
70
60
50
40
17
30
20
0 0
10
0
Self evaluation Supervise Peer evaluation 360 degree
evaluation appraisal
Percentage
The above Table No: 4.6 and Figure No: 4.6 reveals that 83% of the employees are
appraised by supervisor’s evaluation where as only 17% of the employees are followed
with self evaluation. This indicates the majority of the employees are apprised by
supervisor.
43
Table No: 4.7 Employees Responses Regarding the Components taken into
Opinion No of respondents Percentage

Quality of Work 23 77
Experience 7 23
Training Given 0 0
Counseling 0 0
Total 30 100
Figure No: 4.7 Employees Responses Regarding the Components taken into
77%
80
70
60
50
40
23%
30
20 0 0
10
0
Quality of Work Experience Training Given Counseling
Percentage
The above Table No 4.7 and Figure No: 4.7 it can be analyzed that 77% of the
respondents opined that quality of work is considered as evaluating the performance and
23% rated as experience and none of them rated as training and counseling. So we can
say that majority of the respondents are stating that quality of work is considered as the
major factor in evaluating the performance in the company.
44
Table No: 4.8 Showing Employees Participation in the Performance Appraisal
Process

High 2 7
Low 4 13
Moderate 6 20
Must 18 60
Total 30 100
Figure No: 4.8 Showing Employees Participation in the Performance Appraisal

Process
60%
60
50
40
30 20%
13%
20
7%
10
0
High Low Moderate Must
Percentage
The above Table No: 4.8 and Figure No: 4.8 describes that 7% of the employees agreed
that high participation in appraisal process and 13% of the employees agreed that low
participation. And 20% of the employees agreed that moderate participated. And 60% of
the employees opined that employee’s participation in the performance appraisal process
is must. This shows that 60% of the employees are in favor of employee participation is
must in appraisal process.
45
Table No: 4.9 Employees Ratings on Performance Appraisal Process in Suprajit
Engineering Limited

Excellent 5 17
Average 10 33
Good 10 33
Poor 5 17
Total 30 100
Figure No: 4.9 Employees Rating on Performance Appraisal Process in Suprajit

Engineering Limited
33% 33%
35%
30%
25% 17%
17%
20%
15%
10%
5%
0%
Excellent Average Good Poor
Percentage
The above Table No: 4.9 and Figure No: 4.9 shows that out of the 30 respondents
selected 33% opined that performance appraisal process is good where as 17% express
that performance appraisal is excellent. However remaining 17% of the respondents
opined that performance appraisal system is poor. It shows that majority of the
respondents are in favor of performance appraisal system.
46
Table No: 4.10 Employees Responses Regarding any Increment in their Salary after

Yes 20 67
No 10 33
Total 30 100
Figure No: 4.10 Employees Responses Regarding any Increment in their Salary
67%
70%
60%
33%
50%
40%
30%
20%
10%
0%
yes no
Percentage
The above Table No: 4.10 and Figure No: 4.10 reveals that 67% of the respondent’s
expressed that there is increment in salary are based on performance appraisal and 33%
states it as it is not based on the performance. This shows that 67% employees got
increment after performance appraisal.
47
Table No: 4.11 Employee’s Response Regarding the Performance Appraisal Report
on Imparting Training Based on Performance Appraisal
Yes 12 40
No 18 60
Total 30 100
Figure No: 4.11 Employees Response Regarding the Performance Appraisal Report
on Imparting Training Based on Performance Appraisal
60%
70% 40%
60%
50%
40%
30%
20%
10%
0%
Yes No
Percentage
The above Table No: 4.11 and Figure No: 4.11 shows that 60% of employees expressed
training is not given on the basis of performance appraisal whereas 40% of viewed that
training is imparting of the base of performance appraisal.
48
Table No: 4.12 Employees Responses on Growth and Learning Facilitated through

Strongly agree 2 7
Agree 22 73
Neutral 4 13
Disagree 2 7
Strongly disagree 0 0
Total 30 100
Figure No: 4.12 Employees Responses on Growth and Learning Facilitated through
73%
80%
70%
60%
50%
40%
30% 13%
20% 7% 7%
10% 0
0%
Strongly Agree Neutral Disagree Strongly
agree disagree
Percentage
The above Table No: 4.12 and Figure No: 4.12 shows that 73% of the respondents are
agreeing that the performance appraisal facilitates growth and learning, 13% of the
respondents were in neutral condition regarding this and 7 %of the respondents strongly
agree and another 7% disagree the statement but none of the respondents strongly
disagree. This indicates that 73% of the employees are agreed growth and learning are
taking place through performance appraisal.
49
Table No: 4.13 Showing Employee Response Regarding the Reliability of
Improved 7 23
Remained the same 15 50
Worsened 8 27
Total 30 100
Figure No: 4.13 Showing Employees Response Regarding the Reliability of

50%
50%
40% 27%
23%
30%
20%
10%
0%
Improved Remained the same Worsened
Percentage
The table No: 4.13 and Figure No: 4.13 reveals that 50% of the respondent’s comments
reliability of the performance system remains the same and 27% of the respondents
comment it as worsened but 23% of the employees comment it has improved. This
indicates that 50% of the employees expressed reliability of performance appraisal is
remained the same.
50
Table No: 4.14 Employees Responses on Performance Appraisal
Agree 13 43
Disagree 8 27
strongly disagree 4 13
Neutral 5 17
Total 30 100
Figure No: 4.14 Employees Responses on Performance Appraisal
50%
45% 43%
40%
35%
30% 27%
25%
20% 17%
15% 13%
10%
5%
0%
Agree Disagree strongly disagree Neutral
Percentage
The above Table No: 4.14 and Figure No: 4.14 shows that 43% of the employees agreed
performance appraisal in the company is fair and just and 13% of the employees strongly
disagree on the performance appraisal system. This reveals that 43% of the employees
have agreed on the existing performer appraisal system is fair and just.
51
Table No: 4.15 Employees Responses Regarding the Opportunity for Self Appraisal
Strongly agree 3 10
Agree 19 63
Neutral 2 7
Disagree 6 20
Total 30 100
Figure No: 4.15 Employees Responses Regarding the Opportunity for Self Appraisal
63%
70%
60%
50%
40%
30% 20%
20% 10%
7%
10%
0%
Strongly agree Agree Neutral Disagree
Percentage
The above Table No: 4.15 and Figure No : 4.15 reveals that 63% of the employees
strongly agreed that there is an opportunity for self appraisal where as 20% of the
employees disagree on the opportunity of self appraisal, only 7% of the employees held
neutral regarding the opportunity for self appraisal.
52
Table No: 4.16 Employees Responses on Appraisal System which helped the
Yes 26 87
No 4 13
Total 30 100
Figure No: 4.16 Employees Responses on Appraisal System which helped the
100%
87%
90%
80%
70%
60%
50%
40%
30%
20% 13%
10%
0%
Yes No
Percentage
The above the Table No:4.16 and Figure No: 4.16 reveals that 87% of the respondents
relied performance appraisal system in the organization helped the management to take
decision but 13% of the respondents rate that performance appraisal system in the
organization does not helps the management to take decision.
53
Table No: 4.17 Employees Responses Regarding the Measures Undertaken by the
Organization to Develop Employee Productivity

Highly satisfied 5 17
Satisfied 15 50
Neutral 7 23
Dissatisfied 3 10
Total 30 100
Figure No: 4.17 Employees Responses Regarding the Measures Undertaken by the
Organization to Develop Employee Productivity
50%
50%
45%
40%
35%
23%
30%
25% 17%
20% 10%
15%
10%
5%
0%
Highly satisfied Satisfied Neutral Dissatisfied
Percentage
The above Table No:4.17 and Figure No: 4.17 describes that 50% of the respondents rate
that they are satisfied with the measures undertaken by the organization to develop
employee productivity where as 23% were neutral ,17% of the respondents were highly
satisfied and 10% were dissatisfied regarding the measures taken by the organization to
develop employee productivity. This indicates that majority of the employees are
satisfied on the measures taken by the organization to organization to develop
productivity.
54
Table No: 4.18 Employees Responses Regarding their Present Performance
Good 21 70
Average 4 13
Bad 0 0
Very good 5 17
Total 30 100
Figure No: 4.18 Employees Responses Regarding their Present Performance
80%
70%
70%
60%
50%
40%
30%
17%
20% 13%
10%
0
0%
Good Average Bad Very good
Percentage
The table No: 4.18 and Figure No: 4.18 shows that 70% of the employees agreed their
present performance is good, 17% rated as very good and 13% rated as average but none
of the employee rated it as bad. It is proved that 70% of the employees viewed their
present performance in the organization is good.
55
Table No: 4.19 Showing Responses Regarding the Improvement of the Employees

Confidence 3 10
Coordination 3 10
Competency 8 27
Performance 7 23
Above all 9 30
Total 30 100
Figure No: 4.19 Showing Responses Regarding the Improvement of the Employees
30% 27% 30%

25% 23%
20%
15% 10% 10%
10%
5%
0%
Percentage
The above Table No: 4.19 and Figure No: 4.19 it analyze that 30% of the respondents
expressed their performance level improved the confidence, coordination, competency
and performance whereas 27% rated that it improved competency and 23% rated that it
improved performance, only 10% rated their confidence and coordination. This indicates
that 30% of the employees viewed that their confidence, coordination, competency, and
performance has improved after performance appraisal.
56
Table No: 4.20 Employee’s Response Regarding, who does the Performance
Opinion Respondents Percentage
Immediate supervisor 0 0
Department head 5 17
Hr manager 25 83
All the above 0 0
Total 30 100
Figure No: 4.20 Employees Response Regarding who does the Performance
17% 83%
100%
80%
60%
40%
20% 0 0
0%
Immidiate Department Hr manager All the above
supervisor head
Percentage
The above Table No: 4.20 and Figure No: 4.20 Shows that 83% of the respondents
agreed performance appraisal is to be done by HR manager whereas 17% viewed that it is
done by the department head. This reveals that 83% of the employees are in favor of
performance appraisal is to be done by HR manager.
57
Table No: 4.21 Employees Responses Regarding Methods of Performance Appraisal
in the Company
Merit 0 0
Grading 20 67
Other 10 33
Total 30 100
Figure No: 4.21: Employees Responses Regarding Methods of Performance

67% 33%
100%
80%
60%
40%
0
20%
0%
Merit Grading Other
Percentage
The above Table No: 4.21 and Figure No: 4.21 Shows that 67% of the employees agreed
grading system as performance appraisal method whereas 33% employees viewed some
other methods for performance appraisal.
58
Table No: 4.22 Showing Employees Responses on Achieving Meaningful Goals
Yes 20 67
No 10 33
Total 30 100
Figure No: 4.22 Showing Employees Responses on Achieving Meaningful Goals
67%
70%
60% 33%
50%
40%
30%
20%
10%
0%
Yes No
Percentage
The above Table No: 4.22 and Figure No: 4.22 shows that 67% of the employees agreed
performance appraisal system helped people to achieve meaningful goals. But 33% of the
employees are not agreed with the opinion. This indicates majority of the employees are
agreed that performance appraisal helped to achieve meaningful goals.
59
Table No: 4.23 Employees Response Regarding the Ideal Performance Appraisal
System Followed in the Organization

360 degree appraisal 0 0
Supervisor evaluation 20 67
peer evaluation 0 0
Self evaluation 10 33
Total 30 100
Figure No: 4.23 Employees Response Regarding the Ideal Performance Appraisal
System Followed in the Organization
Percentage
Percentage
Self evaluation 33%
peer evaluation 0
Supervision evaluation 67%
360 degree appraisal 0
The above Table No: 4.23 and Figure No: 4.23 shows that 67% of the employees stated
as supervisor evaluation is to be done in the organization where as 33% of the employees
stated that self evaluation is to be done in the organization. This shows that majority of
the employees are in favor of supervisor evaluation as performance appraisal method.
60
Table No: 4.24 Employees Responses Regarding on Performance Appraisal
Improvement of Motivation and Job Satisfaction through Performance Appraisal
Yes 20 67
No 10 33
Total 30 100
Figure No: 4.24 Employees Responses Regarding on Performance Appraisal

Improvement of Motivation and Job Satisfaction through Performance Appraisal
No 33%
yes
67%
0%
20%
40%
60%
80%
Percentage
The above Table No: 4.24 and Figure No: 4.24 reveals that 67% of the employees rated
as performance appraisal improved their motivation and job satisfaction but 33% of the
employees are not agreeing with the opinion. This indicates that majority of the
employees are agreed performance appraisal improved their motivation and job
satisfaction.
61
Table No: 4.25 Employees Response Regarding the Opinion about Selecting KRAs
Yes 20 67
No 10 33
Total 30 100
Figure No: 4.25 Employees Responses Regarding the Opinion about Selecting KRAs
33%
No
67%
Yes
0% 10% 20% 30% 40% 50% 60% 70%
Percentage
The above Table No: 4.25 and Figure No: 4.25 shows that 67% of the respondents rated
as performance appraisal helped in selecting the KRAs but 33% of the respondents is not
agreeing the opinion. This reveals that majority of the employees are expressed
performance appraisal helped to selecting their KRAs.
62
Table No: 4.26 Employee Responses Regarding the Formal Feedback on
Performance
Yes 10 33
No 20 67
Total 30 100
Figure No: 4.26 Employee Responses Regarding the Formal Feedback on

Performance
67%
70%
60%
33%
50%
40%
30%
20%
10%
0%
Yes No
Percentage
The above Table No: 4.26 and Figure No: 4.26 shows that 67% of the respondents rated
as they do not get any formal feedback regarding their performance but 33% rated as they
are getting formal feedback regarding their performance. This indicates that majority of
the employees are not getting formal feedback on their performance.
63
CHAPTER 5
FINDINGS,
SUGGESTION AND
COCLUSION
CHAPTER-5
5.1 FINDINGS
 The study proved that 76% of the employees in the organization are middle aged.
 Majority of the employees agreed that performance appraisal in their organization is done
once in a year.
 The study proved that majority (83%) of the employees are male while compare to
female in the organization.
 The studies proved that majority (80%) of the employees are having work experience of
below 5 years.
 It is found from the study that 66% of the respondents are satisfied in terms of the
expectation of work.
 The studies proved that majority (83%) of the employees are appraised by supervisor.
 Majority of the respondents are stating that quality of work is considered as the major
factor in evaluating the performance in the company.
 It is found that 60% of the employee are in favor of employee participation is must in
appraisal process.
 The studies proved that majority of the respondents are in favor of performance appraisal
system.
 The study proved that 67% of the employees got increment after performance appraisal.
 It is found that 73% of the employees are agreed growth and learning are taking place
through performance appraisal.
 The study proved that 50% of the employees expressed reliability of performance
appraisal is remained the same.
 Majority of the employees have agreed on the existing performance appraisal system is
fair and just.
64
5.2 SUGGESTION
 The result of the appraisal may be communicated to the employees, so that they may try
to improve their performance.
 The company may review the performance appraisal system frequently so that the
employee can adjust with the changing environment.
 The result of the performance appraisal system will have direct impact on careers.
 An ideal performance appraisal system should be fair and just.
 There may be transparency regarding the results of performance appraisal.
 Employees have to get training and information about performance appraisal.
 The management has to take the opinion of the employees while taking their decision.
 Appraisal result may be based on focusing the strength and weakness of the employees.
 Training may be given to the employees if they lag in their performance to meet the
desired goal of the company.
65
5.3 CONCLUSION
The topic of the study is performance appraisal system is to measure and improve the
actual performance of the employees and also the future potential of the employee and
organizational goal can be achieve only when people put their best efforts. Performance
Appraisal helps to ascertain whether an employee has shown his or her best performance
on a given job. The process performance appraisal has the employee and management to
know the level of employee’s performance compared to the standard performance.
After the study conducted in the organization it is analyzed that performance appraisal of
the company is done by the HR manager and quality of work is considered to be the
major components for evaluating the performance appraisal of the company. Majority of
the employees states that employee participation should be there while conducting
performance appraisal and it helps to facilitate growth and learning.
The company is focusing mainly on the production and quality for that sake they are
providing monthly training to the employees so that they can minimize the accident rate
in the organization. Moreover the company is providing compensation package if any
accident occurred during the work environment. The main focus of the study is to
evaluate the effectiveness and satisfaction level of the employees towards the
performance appraisal system and it is viewed that performance appraisal improves the
job satisfaction level of the employee and motivate them to perform better. The study
also reveals that performance appraisal system helped the management to take decision in
a prominent manner.
66
BIBLIOGRAPHY
BIBLIOGRAPHY
Books:
 TV. Rao, Appraising and developing managerial performance, Excel Books, New
Delhi – 110028, 1999.
 P Subba Rao, Human Resource Management, third edition Himalaya publishing
house, Mumbai – 4000 004, 2007.
 Gary Dessler and Biji Varbvey, Human Resource Management, Twelth Edition,
Pearson Books, New Delhi – 110017.
 Herman Aguinis, ―Performance management‖ Pearson Education, Second
Edition.
 Narendra Ahuja, ―Performance Appraisal System, Plan, Design, Implementation‖
A Porman Publication.
 Cynthia D Fisher, Lvle F Schoen Feldt and James B Shaw, ―Human Resource
Management‖ Wiley Dream Tec Publications, 2005.
 Lawrence S Kleiman, ―Human Resource Management‖ Automic Dog Publishing
Company, 2005.
 H and Weihrich Essentials of management Koontz. HMC Graw Hill Publication.
 Subba Rao ―Personal and Human Resource Management‖. Himalaya Publishing
House..
 V.S.P.Rao. ―Human Resource Management‖
 K. Ashwatappa. TMH, 5th Edition. ―Human Resource Management‖
Journals:
 Company Report
 Company Magazine
Website:
 www.google. Com
 Www. proquest.com
 www.suprajit engineering .com
ANNEXURE
QUESTIONNAIRE
“Performance appraisal system at Suprajit Engineering Limited, Bangalore‖
Respected Sir/ Madam;
I, NITHYA KUMARI, a student of Master of Business Administration (MBA), at

Srinivas Institute of Technology, Mangalore, request you to kindly fill this Questionnaire.
The information gathered in this survey is only for academic purpose and will be kept
confidential.
Name (optional):
1. Age:
a) Below 25 years b) 25-35 years
c) 35-45 years d) above 45 years
2. How frequent is the appraisal done for confirmed staff?
a) Monthly b) Once in a year
c) Once in 6 months d) More than 1 year
3. Gender:
a) Male b) Female
4. Work Experience in present organization:
a) Below 5 years b) 5-10 years
c) 10-15 year d) above 15 years
5. Has your organization met your expectation in terms of work?
a) Excellent b) Good
c) Average d) poor
6. State which is the appraisal method followed in the organization
a) Supervise evaluation c) Self evaluation
b) Peer evaluation d) 360 degree appraisal
7. In Suprajit Engineering Limited what are the components taken into consideration in
evaluating the performance?
a) Quality of Work c) Training given
e) Counseling d) Experience
8. In your opinion the employee participation in the performance appraisal process is
a) High b) Low
c) Moderate d) Must
9. How would you rate the performance appraisal process in Suprajit Engineering
Limited?
a) Excellent b) average
c) Good d) poor
10. Do you receive any increment in your salary after performance appraisal?
a) yes b) no
11. Based on the performance appraisal report does the organization impart training?
a) Yes b) no
12. Do you agree that performance appraisal facilitates Growth and Learning?
a) Strongly agree b) Agree
c) Neutral d) Disagree
e) Strongly disagree
13. Do you think that the reliability of performance management system has increased?
a) Improved b) Remained the same
c) Worsened
14. ―Performance Appraisal in suprajit Engineering limited fair and just‖
a) Agree b) Disagree
c) Strongly disagree d) Neutral
15. Performance appraisal in your organization provides you with an opportunity for self
appraisal
a) Strongly agree b) Agree
c) Neutral d) Disagree
16. Do you think appraisal system executed in the organization helped the management to
take decisions?
a) Yes b) no
17. Are you satisfied with the measures undertaken by the organization to develop
employee productivity?
a) Highly satisfied b) Satisfied
c) Neutral d) Dissatisfied
18. How would you rate your present performance in the organization?
a) Good b) Average
c) Bad d) very good

19. The performance appraisal helped you to improve your
a) Confidence b) Co-ordination
c) Competency d) Performance
e) Above all
20. Performance appraisal should be done by
a) Immediate supervisor b) Department head
c) HR Manager d) All the above
21. Which method of performance appraisal is implemented in the organization?
a). Merit b) Grading
c) Other
22. Do you think performance appraisal helps people to achieve meaningful goals?
a) Yes b) No
23. In your opinion which is the ideal performance appraisal system which can be
followed in your organization?
a) 360 degree appraisal b) supervision

evaluation
c) Peer evaluation d) self evaluation
24. Do you think performance appraisal improves motivation and job Satisfaction?
a) Yes b) No
25. Does your appraiser help you in selecting the KRAs?
a) Yes b) No
26. Do you get any formal feedback regarding your performance?
a) Yes b) No
Date: Thank you for your co operation
Place: (NITHYA KUMARI)
Signature:

Nithya Kumari

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Internship Report on

A STUDY ON PERFORMANCE APPRAISAL SYSTEM

VISVESVARAYYA TECHNOLOGICAL UNIVERSITY, BELAGAVI

In partial fulfillment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Internal Guide External Guide

SRINIVAS INSTITUTE OF TECHNOLOGY

CHAPTER PARTICULARS PAGE NO.

TABLE PARTICULARS PAGE

TABLE NO PARTICULARS PAGE

4.15 Employees Responses Regarding the Opportunity for self 52

4.18 Employees Responses Regarding their Present Performance 55

4.19 Responses Regarding the Improvement of the Employees 56

4.23 Employees Response Regarding the Ideal Performance 60

This study is conducted on ―Performance Appraisal System‖ with special reference to

Chapter-3 Includes theoretical background of the company.

Chapter-5 Provides findings, suggestions and conclusion at last bibliography and

1.1 Introduction about the Internship

1.2 Topic Chosen for the Study:

1.3 Need for the Study

Performance appraisal is the assessment of an individual’s performance in an

The Problem is stated as ―A Study on Performance Appraisal with Special reference to

1.5 Objectives of the Study

 To identify various appraisal methods

1.6 Scope of the Study

Performance management system is one of the major functions of HR department. In any

Research methodology is a systematic way to solve the research problems. It may be

1.8 Literature Review

1.9 Limitations of the Study

1. The study is limited to only some employees of Suprajit Engineering Limited,

Incorporated as a Private Limited Company in 1986, Suprajit Engineering Limited started

 Investor Contact: Investor Relations Team (investor@suprajit.com)

Registered office: No.100, Bommasandra Industrial. Area, Bangalore-560 099,

2a. Background and Inception of the Company

Suprajit Engineering Limited was promoted first generation technocrat entrepreneur

Managing Director – Ajith Kumar Rai

Executive Director – Dr. Mohan Chelliah

President -- N.S. Mohan

Vice President -- Narayan Shankar

VP Finance and CS – Medappa Gowda

VP of Human Resource – Shankar

Head of Information Technology – Akhilesh Rai

2c. Vision, Mission, and Quality Policy

 To be a globally competitive manufacturer of cable in terms of Quality, Cost,

 To be a leader in automotive cable business, globally

Suprajit Engineering Limited is a global supplier of automotive components and sub-

Excellence in customer satisfaction by providing consistent quality, on - time Delivery,

 To work continuously towards customer Satisfaction by implementing customer

Electronic Control Cable

Daniel Aaron Wisner invented Automotive Electronic Control Cable in 1968 as an

Advantages and Disadvantages

Some of those advantages include:

Sl.No State Number of

2f. Infrastructure Facilities

3. Raju Auto wire

5. Champion Cables, Lucknow

6. Silco Cables, Delhi

SWOT is a technique to identify the strength, weaknesses, threat and opportunities

The important strengths of SEL are as follows

 High level of training: As SEL is an emerging manufacturing company of the

 Addition of capacities from time to time customer demands.

 On my study I found that installation charge of machineries of SEL is too high.

 SEL is not taking any entertainment activities to motivate the employees.