CHAPTER-I INTRODUCTION

 
INTRODUCTION OF THE STUDY
A major concern of every organization should be to contribute
p o s i t i v e l y towards the achievement of its objective. Organizational effectiveness is often
equated
withm a n a g e r i a l   e f f i c i e n c y .   A   m a n a g e r   c a n   e n s u r e   o r g a n i z a t i o n a l   e f f e c t i v
e n e s s   o n l y   b y guaranteeing the full utilization of human resource available through
individual employeesunder his guidance. Hence, it is always required for a manager to
monitor and measure the performance of
employees.   oreov er, since the organization e!ists to achieve the goals, the 
degree of success that individual employees have in reaching this individual goal
is important indetermining organizational effectiveness.
"he assessment of how successful employeesh a v e b e e n a t m e e t i n g t h e i r
i n d i v i d u a l g o a l t o c o m e s a c r i t i c a l p a r t o f h u m a n r e s o u r c e management. "his
leads to concept of
performance appraisal. A performance appraisal system functions as definitions of performan
ce. #erformance appraisal is a method of evaluating the behaviour of employeesin
the wor$ spot, including both qualitative and quantitative aspects of job
performanceindicates how an individual is fulfilling the job demands and it is always in
terms of results.
%nder performance appraisal not only the performance of an employee 
b u t   a l s o   h i s  potential for development is evaluated.&#erformance Appraisal is a
systematic description of an employee's job relevant strengthsand
wea$nesses(. )n performance appraisal or merit rating refers to all the formal proceduresused
in wor$ing organizations to evaluate the personalities and contributions and potentialgroup
members. )n appraisal system the employee's merits li$e initiatives,
dependability, personality etc., are compared with others and ran$ed to rated.
Appraisals might be basedon the criteria of employee's s$ills, educational*
 
qualifications, $nowledge, abilities to delegate plans, supervise, assume responsi
bility,e!ercise leadership, personal qualities, creativity, decision ma$ing and interpersonal
s$ills. An appraisal motivates an employee into increased effort aimed at enhancing theoutco
me of the assessment. )t tells an employee what set of activities or what qualities
areconsidered desirable by the
organization. )t is the systematic method of obtaining, analyzing + recording information abo
ut anemployee that is needed

-or effective management of business.

 y the manager to help him improve the jobholders performance and plan
hiscareer.

 y the jobholder to assist him to evaluate his own performance and
develophimself. )n performance planning and review, the /eporting anager is e!pected to s
ettargets or tas$s for the appraise in the beginning of the year. )n the middle of the year,
theappraise fills the self0appraisal form, indicating the e!tent which the target or tas$ has
beencompleted, the difficulties faced and the suggestions for improvement. At the
end of theyear, there is the annual review and targetstas$s set for the ne!t year. oth in
the mid0year review and annual review, the self0appraisal is supplemented by a
performance review,discussion, the problems are discussed and the appraiser is
given feedbac$ on how he
isdoing.  " h e   a p p r a i s a l   s y s t e m   i s   a n   i n s t r u m e n t   f o r   i m p r o v i n g   t h e   w o r $   c u l
ture byconvincing employees that their career growth is lin$ed with the
p e r f o r m a n c e   o f   t h e company.2

NEED FOR THE STUDY


 "he need of the performance appraisal is to determine what aspects of performa
nceare required to be evaluated.

"o identify those who are performing their assigned tas$ well and those who
arenot and the reason for such performance.

"o provide information about the performance ran$s basing on which
decisionsregarded salary fi!ation, conformation, promotion,
demotion and transfer areta$en.

"o provide feedbac$ information about the level of achievements and behavior
of an employee.

"o provide information and counsel the employee.

"o compare actual performance with the standards and in out deviations
3positiveand negative4

"o create and maintain satisfactory level of performance.

"o prevent grievance and in disciplinary activity.

 "o facilitate fair and equitable compensation.

 "o ensure organizational effectiveness.

)t guarantees useful information about employees and the nature of their
duties. 5e can briefly say that performance appraisal systems are necessities toas
sess performance at regular intervals with consistency to study improvements,
deviationand to ta$e corrective actions to bride gaps and improve performance
over a period of time.6

 
OBJECTIVES:
 "he objective is to $now how effective is the e!ecution of appraisal systemin
#HO78)9 O"O/: #;" <"=.,
Hyderabad. "he aim of most performance appraisal programming is to encourag
e theemployees to set his own objective for the ne!t time period following the
review of his
past performance. )t enables the management to ma$e effective decisions to 
modify earlier decisions based on the evaluation of the e!isting plans,
informationsystem, job analysis, and internal and e!ternal environment
factors influencing
employee performance. "he objectives is to identify the common goals of the o
rganization, defineeach individuals major areas of responsibility in terms results
e!pected of him, review theindividual performance progress in a job and his
potential for future improvement. )t aimsa t p r o v i d i n g d a t a t o m a n a g e r s
with whom they may judge future job assignments
a n d compensation."o establish an objective basis fro the different levels of
performance and toidentify e!ecutives with potential to grow in the
organization.  " o   c o u n s e l   t h e   e m p l o y e e s   a p p r o p r i a t e l y   r e g a r d i
n g   t h e i r   s t r e n g t h s   a n d wea$nesses and asses in developing them to
realize they are full potential in line with thecompany's objectives and
goals. Always emphasize that the role of a manager is to
offer c o n s t r u c t i v e s u p p o r t a n d n o t c o n d e m n . > i v e t h e e m p l o y e e s
m a n y o p p o r t u n i t i e s t o a s $   guidance to air grievances and discuss an!
ieties?

 
.
SCOPE:
 )n the present study a attempt has been made to 
$ n o w   t h e   a c t u a l implementation of performance appraisal techniques
in general and some other aspects
sucha s   a w a r e n e s s   o f   t h e   w o r $ e r s ,   e f f e c t i v e n e s s   o f   t h e   p e r f
o r m a n c e   a p p r a i s a l   s y s t e m   i n  particular. Human resource projections 
are valid on appraisals. y improving job s$ills,t h e   e m p l o y e e s   h a v e
l o t   o f   s c o p e   f or d e v e l o p m e n t   a n d   pr e p a r e   t h e m s e l v e s   f o r
h i g h e r   responsibilities.  A   t h o r o u g h   a n a l y s i s   of   t h e   p e r f or m a n c e   a p p
raisal system will help themanagement to $now the short
c o m i n g s , i f a n y . ) t a l s o h e l p t h e c o m p a n y i n $ n o w i n g whether the
performance appraisal techniques are used to full e!tent or not, there
by theresearcher can understand the effective implement of the performance
appraisal system.
METHODOLOGY & DATABASE:
 "he research methodology is a systematic way to solve the problem an
d it isan important component of the study without which researcher
may not be able to obtainthe facts and figures from the employees.
SOURCE OF DATA:
  " h e   s t u d y   i s   b a s e d   o n   p r i m ar y   a s   w e l l   a s   s e c o n d a r y   d a t a   c o l l e c t
e d   f r o m different sources
:A). Primar Da!a: 
"he primary data is collected with the help of questionnaires, which consistso f
twenty questions each. "he questionnaires are chosen because
o f i t s s i m p l i c i t y a n d liability. /esearcher can e!pect straight answers
to the questions. "he respondents areinformed about the significant of the
study and requested to give their fair opinions.
B). S"#$%ar Da!a:
:econdary data is collected through the documents provided by the
personneldepartment. "he documents include personnel manuals, boo$s, reports,
journal, etc.@

 
SAMPLING PROCESS:
A). Sam'(" U%i!:
"he e!ecutives and employed at #HO78)9  O"O/: #;" <"=., Hyderabad
constitute universe' of the present study. A part of it is ta$en as sampleu n i t
f or t h e r e s e n t s t u d y . ) t i n c l u d e s B >  : , A >  : , m a n a g e r a n d
o t h e r e m p l o y e e s of   #HO78)9 O"O/: #;" <"= Hyderabad.
B). Sam'(" Si"
" h e   s a m p l e   s i z e   c o n s i s t s   o f   ? C   r e s p o n d e n t s   e m p l o y e d  
i n #HO78)9 O"O/: #;" <"=, Hyderabad. Of these 1? are e!
e c u t i v e s , 1 C ar e s e n i o r   e!ecutives and the remaining *? are employ
 PERIOD OF THE STUDY

: i n c e   s o   m a n y   y e a r s   # H O 7 8 ) 9    O " O / :   # ; "   < " = Hyd
erabad has been following the same procedure of appraisals for their e!
ecutives andemployees and for the study of my project last on0year
data has collected on performanceappraisals.
PLAN OF THE STUDY CHAPTERI*ATIONS


"o shed light on introduction on subject bac$ground of study

"he profile of the company

#resent frame wor$ regarding research design of the study

7!plore performance appraisal process in #HO78)9 
 O " O / :   # ; "   < " = . , Hyderabad

7!am in data, analysis and interpretation

Highlight summary of findings and conclusions

Offer suggestions and recommendationsD

  CHAPTER-II INDUSTRIAL PROFILE&COMPANY PROFILE

 
 
A+!$m$,i(" i%+!r i% I%ia
"he
a+!$m$,i(" i%+!r i%I%ia
 is theninth largest in the world with an annual productionof over *.2 million
units in *CCE )n *CCF, )ndia emerged as AsiaGs fourth largest e!porter
ofautomobiles, behind Bapan, :outh orea and "hailand.-ollowingeconomic
liberalization in )ndia in 1FF1, the )ndian automotive industry hasdemonstrated
sustained growth as a result of increased competitiveness and rela!
edrestrictions. :everal )ndian automobile manufacturers such as "ata
otors,aruti :uzu$i and ahindra and ahindra, e!panded their domestic
and international operations. )ndiaGsrobusteconomic growth led to the further
e!pansion of its domestic automobile mar$etwhich attracted
significant )ndia0specific investment by multinational
automobilemanufacturers. )n -ebruary *CCF, monthly sales of passenger cars in
)ndia e!ceeded 1CC,CCCunits. bryonic automotive industry emerged in)ndia in
the 1F6Cs. -ollowing theindependence, in1F6D, the>overnment of )ndia and
the private sector  launched efforts to create an automotivecomponent
manufacturing industry to supply to the automobile industry. However,
thegrowth was relatively slow in the 1F?Cs and 1F@Cs due to nationalization
and thelicense raj which hampered the )ndian private sector. After 1FDC, the
automotive industry started togrow, but the growth was mainly driven by
tractors, commercial vehicles and scooters. Iarswere still a major lu!
ury.Bapanese manufacturers entered the )ndian mar$et ultimatelyleading to the
establishment ofaruti %dyog. A number of foreign firms initiated
jointventures with )ndian companies