A

SYNOPSIS
ON
PERFORMANCE APPRAISAL
AT
HERO MOTOCORP PVT LTD
A synopsis report submitted to Osmania University
In partial fulfillment for the Award of the Degree of
MASTER OF BUSINESS ADMINISTRATION

Submitted by

HARIJAN AKHILA

HT NO: 2121-20-672-072

UNDER THE GUIDANCE OF

------------------------------

ARISTOTLE PG COLLEGE

(Affliated To Osmania University,Hyderabad)

Recognized By UGC under section 2(f) of UGC Act 1956

Beside Moinabad Police Station,

Chilkur, Moinabad ,Ranga Reddy District, Telangana.

2020-2022
 CHAPTER-I

INTRODUCTION

A performance appraisal is a systematic and periodic process that assesses an individual

employee’s job performance and productivity in relation to certain pre-established criteria
and organizational objectives. Other aspects of individual employees are considered as well,
such as organizational citizenship behavior, accomplishments, potential for future
improvement, strengths and weaknesses, etc. To collect PA data, there are three main
methods: objective production, personnel, and judgmental evaluation. Judgmental evaluations
are the most commonly used with a large variety of evaluation methods. A PA is typically
conducted annually. The interview could function as “providing feedback to employees,
counseling and developing employees, and conveying and discussing compensation, job
status, or disciplinary decisions”. PA is often included in performance management systems.
Performance management systems are employed “to manage and align" all of an
organization's resources in order to achieve highest possible performance. “How performance
is managed in an organization determines to a large extent the success or failure of the
organization. Therefore, improving PA for everyone should be among the highest priorities of
contemporary” organizations.

Some applications of PA are performance improvement, promotions, termination, test

validation, and more. While there are many potential benefits of PA, there are also some
potential drawbacks. For example, PA can help facilitate management-employee
communication; however, PA may result in legal issues if not executed appropriately as many
employees tend to be unsatisfied with the PA process. PAs created in and determined as
useful in the United States are not necessarily able to be transferable cross-culturally.

A major concern of every organization should be to contribute positively towards the

achievement of its objective. Organizational effectiveness is often equated with managerial
efficiency. A manager can ensure organizational effectiveness only by guaranteeing the full
utilization of human resource available through individual employees under his guidance.
Hence, it is always required for a manager to monitor and measure the performance of
employees.
 Moreover, since the organization exists to achieve the goals, the PA of success that
individual employees have in reaching this individual goal is important in determining
organizational effectiveness. The assessment of how successful employees have been at
meeting their individual goal to come a critical part of human resource management. This
leads to concept of performance appraisal.
A performance appraisal system functions as definitions of performance.

Performance appraisal is a method of evaluating the behavior of employees in the work

spot, including both qualitative and quantitative aspects of job performance indicates how
an individual is fulfilling the job demands and it is always in terms of results. Under
performance appraisal not only the performance of an employee but also his potential for
development is evaluated.

“Performance Appraisal is a systematic description of an employee’s job relevant strengths

and weaknesses”.

In performance appraisal or merit rating refers to all the formal procedures used in working
organizations to evaluate the personalities and contributions and potential group members.
In appraisal system the employee’s merits like initiatives, dependability, personality etc.,
are compared with others and ranked to rated. Appraisals might be based on the criteria of
employee’s skills, educational
Qualifications, knowledge, abilities to delegate plans, supervise; assume responsibility,
exercise leadership, personal qualities, creativity, decision making and interpersonal skills.
An appraisal motivates an employee into increased effort aimed at enhancing the outcome
of the assessment. It tells an employee what set of activities or what qualities are considered
desirable by the organization.
 CHAPTER-II
REVIEW OF LITERATURE

Taylor and Zawacki, (2018)published the first of two articles that documented trends inperformance
appraisal usage among U.S. organizations. When comparing the results of two surveys
taken five yearsapart, the authors noted a remarkable shift away from what they called
collaborative approaches (e.g., MBO, BARS)and toward the more traditional performance
appraisal techniques (graphic rating scales). They hypothesized that managers, responding to
the legal constraints prevalent in the 1980s, preferred techniquesthat were defensible in court.
Accordingly, managers tended to be more satisfied with the objective traditionalapproaches,
whereas their subordinates seemed to prefer the developmental collaborative
methods.Through the 1980s, researchers continued to document performance appraisal
practice.

Bernardin and Klatt, (2019) noted that small firms tended to rely heavily on trait-based
approaches, while larger firms relied on a combination of trait, behavioral, and results-based
techniques. They noted that one in five organizations did not give employees the opportunity
to review the performance appraisal results.

Locher and Teel, (2017) identified graphicrating scales (57.1%), the open-ended essay
(21.3%), and Management-by-Objectives (18.1%) as the most popular performance appraisal
techniques. Unlike Taylor and Zawacki (1984) before them, Locher and Teel identified
atrend toward the use of MBO as a popular technique.Besides recording current trends in
methods used, only a few researchers have clarified how performance appraisal datais used.

Thomas and Bretz, (2016)report that performance information is most likely to be used for
employeedevelopment or to administer merit pay. They identified the main developmental
uses as improving work performance, communicating expectations, determining employee
potential and aiding employee counseling. Other common administrative uses included
promotions, lay-offs, transfers, terminations, and validations of hiringdecisions.

Hall, Posner, and Hardner, (2016) identified common objectives of performance appraisal
asreviewing past performance, rewarding past performance, goal setting for future
performance, and employeedevelopment.
Cleveland, Murphy, and Williams, (2014) warned that organizations should exercise
caution whenusing the same performance appraisal methods for multiple applications (e.g.,
counseling vs. evaluation), sincedifferent performance appraisal methods may yield different
types of data (e.g., qualitative vs. quantitative)

Stephan and Pace, (2015) argued that the performance has many outcomes; however, the
two most important outcomes of performance are productivity and quality. Productivity
simply means the number of things that can be produced at the lowest value. Quality refers to
producing the most products and services with no defects at the lowest possible cost. They
assured performance achieves much more than just quality and productivity, and it involves
working to enhance production, paying attention to quality and managing technology in
creative and innovative ways, helping others when they need it, and coming in an hour early
or staying a little late to make improvements in the way something is being done.
Performance behaviors are a broad set of activities that leaders encourage and expect from
employees and themselves.

Armstrong, (2016) mentioned that high performance can be achieved by appropriate

behavior, particularly discretionary behavior, and efficiently leveraging essential knowledge,
skills and competencies. Also, performance management need to scrutinize how outcomes
are produced, in order to gain the information required to consider what has to be done to
those consequences.
 CHAPTER-III
RESEARCH METHODOLOGY

NEED FOR THE STUDY:

The need of the study of performance appraisal is to determine
what aspects of performance are required to be evaluated.
 To identify those who are performing their assigned task well and those who are
not and the reason for such performance.

 To provide information about the performance ranks basing on which decisions

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

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

an employee.
 To provide information and counsel the employee.
 To compare actual performance with the standards and in out deviations (positive
and negative)
 To create and maintain satisfactory level of performance.
 To prevent grievance and in disciplinary activity.
 To facilitate fair and equitable compensation.
 To ensure organizational effectiveness.
 It guarantees useful information about employees and the nature of their duties.

We can briefly say that performance appraisal systems are necessities to assess performance
at regular intervals with consistency to study improvements, deviation and to take corrective
actions to bride gaps and improve performance over a period of time.
 SCOPE OF THE STUDY

 In the present study an attempt has been made to know the actual implementation of
performance appraisal techniques in general and some other aspects such as
awareness of the workers, effectiveness of the performance appraisal system in
particular.

 Human resource projections are valid on appraisals. By improving job skills, the
employees have lot of scope for development and prepare themselves for higher
responsibilities.

 A thorough analysis of the performance appraisal system will help the management
to know the short comings, if any. It also help the company in knowing whether the
performance appraisal techniques are used to full extent or not, there by the
researcher can understand the effective implement of the performance appraisal
system.
OBJECTIVE OF THE STUDY

 The objective is to know how effective is the execution of appraisal system in

HERO MOTOCORP PVT LTD. Hyderabad.
 The aim of most performance appraisal programming is to encourage the employees
to set his own objective for the next time period following the review of his past
performance.
 It enables the management to make effective decisions/ to modify earlier decisions
based on the evaluation of the existing plans, information system, job analysis, and
internal and external environment factors influencing employee performance.
 The objectives is to identify the common goals of the organization, define each
individuals major areas of responsibility in terms results expected of him, review the
individual performance progress in a job and his potential for future improvement.
 It aims at providing data to managers with whom they may judge future job
assignments and compensation.
 To establish an objective basis from the different levels of performance and to
identify executives with potential to grow in the organization.
 To counsel the employees appropriately regarding their strengths and weaknesses
and asses in developing them to realize they are full potential in line with the
company’s objectives and goals.
 Always emphasize that the role of a manager is to offer constructive support and not
condemn. Give the employees many opportunities to ask guidance to air grievances
and discuss anxieties
 DATA COLLECTION
METHODOLOGY & DATABASE:

The research methodology is a systematic way to solve the

problem and it is an important component of the study without which researcher may not be
able to obtain the facts and figures from the employees.

SOURCE OF DATA:
The study is based on primary as well as secondary data
collected from different sources:
A). Primary Data:
The primary data is collected with the help of questionnaires,
which consists of twenty questions each. The questionnaires are chosen because of its
simplicity and liability. Researcher can expect straight answers to the questions. The
respondents are informed about the significant of the study and requested to give their fair
opinions.

B). Secondary Data:

Secondary data is collected through the documents provided by
the personnel department of HERO MOTOCORP PVT LTD. (Formerly TOYOTA .) ). The
documents include personnel manuals, books, reports, journal, etc.
SAMPLING PROCESS:
A). Sample Unit:
The executives and employed at HERO MOTOCORP PVT LTD.
Hyderabad constitute ‘universe’ of the present study. A part of it is taken as sample unit for
the resent study. It includes JGMS, AGMS, manager and other employees of HERO
MOTOCORP PVT LTD. Hyderabad.
B). Sample Size:
The sample size consists of 100 respondents employed in
HERO MOTOCORP PVT LTD, Hyderabad. Of these 30 are executives, 20 are senior
executives and the remaining 50 are employees.
PERIOD OF THE STUDY:
Since so many years HERO MOTOCORP PVT LTD
Hyderabad has been following the same procedure of appraisals for their executives and
employees and for the study of my project last one-year data has collected on performance
appraisals.

Statistical tools used

Percentage method:

Percentage method is used in making comparison between two or

more series of data. This is used to describe relationship.
Percentage of respondents = No of respondents x 100
Total respondents

The method of study followed in this project (in brief):

Sample size : 100

Data collection method : Primary and Secondary.
Duration of study : 45 days.
Analysis : Through percentage method.
 LIMITATIONS OF THE STUDY

 Due to time constraints the study was limited only for 45days.

 Random sampling method has been adopted and all limitations applicable to that method
are applicable here also.

 The authenticity of information provided by the New Entrant Manager cannot be assured.

 Analysis of the data has been done based on the assumptions that the information
provided by the respondents is genuine.

 The sample size is small when compared to total universe, Hence the capability of study
to the whole universe is constraint.
 CHAPTER-IV
CORPORATE PROFILE

Hero MotoCorp Ltd. (Formerly HERO MOTOCRP Ltd.) is the world's largest manufacturer
of two - wheelers, based in India.

In 2001, the company achieved the coveted position of being the largest two-wheeler
manufacturing company in India and also, the 'World No.1' two-wheeler company in terms of
unit volume sales in a calendar year. Hero MotoCorp Ltd. continues to maintain this position
till date.

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

Vision
The story of HERO began with a simple vision - the vision of a mobile and an empowered
India, powered by its two wheelers. Hero MotoCorp Ltd., company's new identity, reflects
its commitment towards providing world class mobility solutions with renewed focus on
expanding company's footprint in the global arena.

Mission

Hero MotoCorp’s mission is to become a global enterprise fulfilling its customers' needs and
aspirations for mobility, setting benchmarks in technology, styling and quality so that it
converts its customers into its brand advocates. The company will provide an engaging
environment for its people to perform to their true potential. It will continue its focus on
value creation and enduring relationships with its partners

Strategy
Hero MotoCorp’s key strategies are to build a robust product portfolio across categories,
explore growth opportunities globally, continuously improve its operational efficiency,
aggressively expand its reach to customers, continue to invest in brand building activities and
ensure customer and shareholder delight.
Manufacturing
Hero MotoCorp two wheelers are manufactured across 3 globally benchmarked
manufacturing facilities. Two of these are based at Gurgaon and Dharuhera which are located
in the state of Haryana in northern India. The third and the latest manufacturing plant is based
at Haridwar, in the hill state of Uttrakhand.

Technology
In the 1980’s HERO pioneered the introduction of fuel-efficient, environment friendly four-
stroke motorcycles in the country. Today, HERO continues to be technology pioneer. It
became the first company to launch the Fuel Injection (FI) technology in Indian motorcycles,
with the launch of the Glamour FI in June 2006.

Products
HERO's product range includes variety of motorcycles that have set the industry standards
across all the market segments. The company also started manufacturing scooter in 2006.
HERO offers large no. of products and caters to wide variety of requirements across all the
segments.

Distribution
The Company's growth in the two wheeler market in India is the result of an intrinsic ability
to increase reach in new geographies and growth markets. Hero MotoCorp’s extensive sales
and service network now spans over to 6000 customer touch points. These comprise a mix of
authorized dealerships, service & spare parts outlets and dealer-appointed outlets across the
country.

Brand

The new Hero is rising and is poised to shine on the global arena. Company's new identity
"Hero MotoCorp Ltd." is truly reflective of its vision to strengthen focus on mobility and
technology and creating global footprint. Building and promoting new brand identity will be
central to all its initiatives, utilizing every opportunity and leveraging its strong presence
across sports, entertainment and ground-level activation
GREEN IT

A MISSION TO MAINTAIN HIGH ECOLOGICAL STANDARDS

Target Key Areas For Maximum Impact

Though according to some estimates today IT contributes to around 2-3% of Global Carbon
Emissions and we need to control that, IT has the potential and power to impact the
remaining 97-98% as well. The critical element in this entire journey is the Green IT
intervention strategy where everyone agrees on plan on areas where IT could influence the
environment.

Actions Speak Louder Than Plans

Here are some Green IT Initiatives that we have taken or are underway at Hero MotoCorp:

1. Green IT as a focus area in the IT Policy

2. New, energy efficient datacenter with power management features
3. Virtualization and server consolidation
4. Use of TFTs in place of CRTs for displays
5. Reduction of printers
6. Video conferencing / Collaboration tools - to reduce travel
7. Buying of energy certified equipment - replacing old inefficient equipment
8. Creating Awareness in organisation
9. Usage of e-learning to reduce trainee or trainer travel
10. New IT initiatives to cut paper consumption such as;
o Converting our paper based customer loyalty program to an online card based
program
o Cutting down on printing of cheques in a big way and going for electronic
fund transfer
o Digitization of workflows needing approvals
o Using digital signatures and sending documents electronically to partners
 CHAPTER-V

CHAPTERIZATION

CHAPTERIZATION
CHAPTER-1
INTRODUCTION

CHAPTER-2
REVIEW OF LITERATURE
CHAPTER-3
RESEARCH METHODOLOGY
 NEED OF THE STUDY
 OBJECTIVES OF THE STUDY
 SCOPE OF THE STUDY
 DATA COLLECTION
 LIMITATIONS OF THE STUDY
CHAPTER-4
INDUSTRY PROFILE
COMPANY PROFILE
CHAPTER-5
DATA ANALYSIS
CHAPTER-6
FINDINGS
CHAPTER-7
SUGGESTION & CONCLUSION
BIBLIOGRAPHY
ANNEXURES