MANAGEMENT TRAINING REPORT

(Subject code MS/203)

on

PERFORMANCE APPRAISAL
Of
JCB LTD.

Submitted in partial fulfillment of the award of degree of

MASTERS OF BUSINESS ADMINISTRATION
(Session 2021-2023)
Affiliated to

J.C. BOSE UNIVERSITY OF SCIENCE AND TECHNOLOGY, FARIDABAD

Submitted to: Submitted by:

Controller of Examination ANJALI
YMCAUST, Faridabad MBA 3rdSem.
Univ. Roll no - 21038701005

Under the guidance of:

Mrs.MAMTA SHARMA
Asst. Professor

SHRI RAM COLLEGE OF ENGINEERING AND MANAGEMENT

Palwal, Haryana
 SHRI RAM COLLEGE OF ENGINEERING &
MANAGEMENT
(Approved by AICTE & DTE, Govt. of Haryana, Affiliated to JC BOSE UST,
Faridabad)
An ISO 9001:2008 Certified Institution.
70 Km, Delhi Mathura Road, Nh-2, Aurangabad, Palwal – 121105
_____________________________________________________________________________________________________________________
_

TO WHOM-SO-EVER IT MAY CONCERN

It is to certify that Mr. / Ms._ANJALI_____________________________________

S/o/D/o Mr. RAJKUMAR______________________________ Univ. Rollno._21038701005______
is a Bona-fide student of MBA 3rd Semester of the college and has undergone
Project Report(Paper no.MS/203), on thetopic__PERFORMANCE APPRAISAL_____________
________________________________________________________________________
in the partial fulfillment of the requirement for the award of the degree of Masters
of Business Administration (MBA), affiliated to J.C.BOSE University, Faridabad
underthe guidance of Mr. / Ms. __MAMTA SHARMA__________________________.

To the best of my knowledge and belief, the data & information presented by him/
her in the report has not been submitted earlier.

Project Guide HOD - Management

Managed By: Shree Gokulendra Educational Trust (Regd.)

SCF- 30P Part-I Market Sector-16A, Faridabad-121002 Phone-0129-2220808
 DECLARATION

I, ANJALI is a student of the SHRI RAM COLLEGE OF ENGINEERING AND

MANAGEMENT, PALWAL(HARYANA) hereby declare that the Training Report

entitled “PERFORMANCE APPRAISAL” is an original work and same has not

been submitted to any other institute for the award of any other degree. The

suggestions given by the faculty were duly incorporated.

[ANJALI] (Signature)
 ACKNOWLEDGEMENT

Any accomplishment requires the effort of many people and this work is no different.
It has been my proud privileges to be attached to do report on such a topic which gave
me the chance to get connected with some great people who are thoroughly
professional i.e., staff of JCB all highly professional company with modern outlook.
With due respect, I express my indebtness to the management of JCB LTD. for
accommodating me to have a look into their systems and providing me with all
information I needed to complete my work..

I would like to express my gratitude with deep sense of reverence to Mrs.MAMTA

SHARMA. It would have been difficult to go through this REPORT without their
help. SHE not only helped me in collecting data but also supported me with their
valuable knowledge and experience in the successful completion of this REPORT.

I would also thankful to almighty god for his grace and mercy to successfully complete this
report.

[ANJALI]
 PREFACE

Experience is not what happens to a man; it

is
what a man does with what happens to him.
-- ALDOUS HUXLEY

In our two years degree program of MBA of there’s provision for doing summer
training, after 2nd semester. The essential purpose of this REPORT is to given an
exposure and detailed outlook to the student of the practical concept, which they
already studied report. For this purpose, I was assigned the REPORT for the
“PERFORMANCE APPRAISAL” in JCB, Faridabad. It is a matter of great privilege
to work for this topic, one of the fastest growing domains the Indian Share.

I hope this report will provide an experiment outlook to the View of employees
towards the importance of performance appraisal in the organization.
 EXECUTIVE SUMMARY
Human Resource Management focuses on the most key element of the organization.
There are several resources needed by the organization but most effective one is the
human resources. Human resource functions are broadly recognized by all
organization, among these important functions performance appraisal is a remarkable
one. The report of the internship has been titled as; “A Study on Employees’
Performance Appraisal of JCB LTD.”.

The study basically based on the study overall employees performance

appraisal.Literally, performance appraisal, performance assessment and performance
management, all the terms refer to the process of comparing the actual performance
"with the relative standards, here employees performances are evaluated to determine
the extent to "which employees performances contribute to strategize organisation
goals.

The report is made on the basis of both primary data including questionnaire targeted
on the employees ranked started from thirteen. The questionnaire survey made over
some people, "who served as the sample for the study. The secondary data collected
from different books and websites. There are several things that limit the report, such
as access to information from the website and also the sampling which could have
been a bit more, but it has not been possible because so many people were a bit
reluctant answer.

The findings, analysis and discussion part, have been the soul of the report, here
several substantial things have been focused. Initially the part has started with having
a view on the appraisal process of the organization "here it has been found that
organization conducts assessment once in a year, line managers of different
departments are responsible for the assessment of their departments.

This is the summary of the report where it has been intensely tried to come up with
the ideas that the appraisal is really a substantiate tool to appraise the most important
resource performance and have the organization with the best performer to reach
towards its ultimate destinations. That’s why the appraisal must be taken strategically,
in the HRM arena it’s a vast areas of concentration that’s why it is earnestly addressed
that the shortcomings ought to be lessened to make the process a reliable one.
 TABLE OF CONTENTS

Sr. No. Particulars

1. Introduction 1-5

2. Company Profile 6-29

3. Review of Literature 30-44

4. Research Methodology 45-53

5. Data Analysis & Interpretation 54-70

6. Findings of the Study 71-72

7. Conclusion & Recommendations 73-74

Annexure 75-79

✓ Bibliography

✓ Questionnaire
 LIST OF TABLE
SR.NO. Table No. Table Name PAGE
NO.
1. Table No.1 Do you know what is performance appraisal? 56

2. Table No.2 Do you have understanding, why it is used in 57

the firm?
3. Table No.3 How many times you have gone through the 58
process till date?
4. Table No.4 Do you feel the process done is fair and 59
justified?
5. Table No.5 Do your firm evaluate employees on their 60
performance through performance appraisal ?

6. Table No.6 How frequently you uses performance 61

appraisal?
7. Table No.7 Which method of performance appraisal 62
method is used by you?
8. Table No.8 What are general reactions of your appraisal 63
processes?
9. Table No.9 Who rate your employees? 64

10. Table No.10 How many employees you consider in a group

while a single performance appraisal process? 65

11. Table No.11 Do you like to prefer to invest in performance 66

appraisal or in some other plans instead?

12. Table No.12 What is the basis of the performance 67

appraisal?

13. Table No.13 Do you know about performance appraisal? 68

14. Table No.14 Do you feel its necessary in organization? 69

15. Table No.15 Do you think its fair to take customer point of 70
view in consideration?
 LIST OF FIGURES
SR.NO. Figure No. Figure Name PAGE
NO.
1. Figure No.1 Do you know what is performance appraisal? 56

2. Figure No.2 Do you have understanding, why it is used in 57

the firm?
3. Figure No.3 How many times you have gone through the 58
process till date?
4. Figure No.4 Do you feel the process done is fair and 59
justified?
5. Figure No.5 Do your firm evaluate employees on their 60
performance through performance appraisal ?
6. Figure No.6 How frequently you uses performance 61
appraisal?
7. Figure No.7 Which method of performance appraisal 62
method is used by you?
8. Figure No.8 What are general reactions of your appraisal 63
processes?
9. Figure No.9 Who rate your employees? 64

10. Figure No.10 How many employees you consider in a group

while a single performance appraisal process? 65

11. Figure No.11 Do you like to prefer to invest in performance 66

appraisal or in some other plans instead?
12. Figure No.12 What is the basis of the performance appraisal? 67

13. Figure No.13 Do you know about performance appraisal? 68

14. Figure No.14 Do you feel its necessary in organization? 69

15. Figure No.15 Do you think its fair to take customer point of 70
view in consideration?
INTRODUCTION

1
 INTRODUCTION
MEANING
Personnel evaluation method seeking the measurement of employee work effectiveness

using objective criteria. Performance appraisal systems hope to achieve higher

productivity outcomes by delineating how employees meet job specifications. A major

challenge for performance appraisal systems is to define performance standards while

maintaining objectivity.

Performance appraisal, also known as employee appraisal, is a method by which the

performance of an employee is evaluated (generally in terms of quality, quantity, cost

and time).

Performance appraisals are a regular review of employee performance within

organizations.

Generally, the aims of a scheme are:

• Give feedback on performance to employees.

• Identify employee training needs.

• Document criteria used to allocate organizational rewards.

• Form a basis for personnel decisions-salary (merit) increases, promotions,

disciplinary actions, etc.

• Provide the opportunity for organizational diagnosis and development.

• Facilitate communication between employee and administrator.

• Validate selection techniques and human resource policies to meet federal Equal
Employment Opportunity requirements.
2
 OBJECTIVES OF THE STUDY

Performance Appraisal can be done with following objectives in mind:

• To maintain records in order to determine compensation packages,
wage structure, salaries raises, etc.
• To identify the strengths and weaknesses of employees to place right
men on right job.
• To maintain and assess the potential in a person for growth and
development.
• To provide a feedback to employees regarding their performance
and related status.
• It serves as a basis for influencing working habits of the employees.
• To review and retain the promotional and other training
programmes.

SCOPE OF THE STUDY

The scope of performance management and appraisal should include the

following:
• Provide employees with a better understanding of their role and
responsibilities.
• Increase confidence through recognizing strengths while identifying
training needs to improve weaknesses.
• Improve working relationships and communication between
supervisors and subordinates.
• Increase commitment to organizational goals; develop employees
into future supervisors.
• Assist in personnel decisions such as promotions or allocating
rewards.
• Allow time for self-reflection, self-appraisal and personal goal
setting.

3
 IMPORTANCE OF THE STUDY
The importance of performance appraisal in an organization directly
coincides with its advantages. Take a look at these factors and understand
the benefits of performance appraisal.

Improved business areas and processes

Conducting performance appraisals lets you in on how an employee views
the organization. During your one-on-one sessions and regular
performance appraisals, part of the process is to ask for specific comments
that the employee has regarding team dynamics, policies, and management.
Then, leverage these findings and by turning them into actionable insights
for your continuous improvement efforts like eliminating manual tasks
with process automations.

Defined aspects for training and development

Ideally, performance appraisals must be a two-way street. Learning what
employees need help with allows organizations to implement strategies
for training workers more effectively. This is where people analytics
become handy, as data and trends generated from such are key to
identifying what kind of policies, initiatives, and systems are needed to be
carried out. Hence, this benefits an employer’s resource allocation
on training and focus on areas that are of utmost priority.

4
Enhanced profitability
Another notable importance of performance appraisal is that it ultimately
puts emphasis on a business’s bottom line. Performance appraisals help
employees and managers devise strategies to refocus their tasks, make
them realize how their work makes a difference for the company, and align
the company’s mission, vision, and values with their tasks and standard
processes. This way, an “all hands on deck” approach can be achieved
across the organization, allowing for maximum efficiency and streamlined
processes toward profit-making operation,

5
COMPANY PROFILE

6
 COMPANY PROFILE

o JCB India limited is a UK based multinational company. JCB is one of Britain’s great success
stories. The Business began on Oct. 23rd 1945 started by Mr. Joseph Cyril Bamford.

o Today JCB is Europe’s premier manufacturer of construction equipment and exports 72% of its
products to 140 territories around the world.

JCB WORLDWIDE:

o World No. 1 Manufacturer of Backhoes

o Largest Manufacturer of Construction Equipment in Europe
o Sales in Over 150 Countries through 500 Dealers
o Production Facilities on Four Continents producing 220 product lines

JCB INDIA:

India’s largest Construction Equipment manufacturer.

o 7600 + JCB machines made and sold in India in 2005.
o 25,000 + machines operating, supported by 38 Dealers with over 204 Service and Parts outlets.

HISTORY:
JCB India Limited started operation in 1979 as a joint venture between the Escorts group and
JCB Excavator (UK). In 2003 JCB acquired 100% share and today JCB is the fastest growing
company in the Indian earthmoving and construction equipment industry.

7
WRITE UP FOR FIFTY YEARS OF JCB

1945
Past is always different as a matter of fact. When we see “JCB”, then and again now its
amazing. The journey of JCB till what it is today is worth narrating. It was then when Mr.
Joseph Cyril Bamford had little chance of expansion. Joe rented a lock up garage that
measured 12 feet by 15 feet for 30 sittings a week.

Poverty was troubling in Joseph Cyril Bamford’s life but with a tinge of determination. In his
won words this situation “tended to concentrate my mind”.

His first product was a farm trailer built from a wartime scrap was put up for sale at 90
pounds. It was sold for 45pounds and in lieu a cart was exchanged. Joe renovated the cart and
sold it for 45 pounds again.

1946
It was in 1946 that Joe handled every job himself including cutting, forming and welding for
seven days in a week, which was objected by his landlady so Joe moved to Crakemarsh Hall,
midway between Uttoxeter and Rocester, when he was about to became a full time employer
for the first time.

1947
It was in 1947 Joe was some good member of employees. The employees were Arthur
Harrison, Bill Hirts and Burt Homes. Joe was a little famous also.

This instance explains when John Wheeldon wanted to buy for himself a “Trailer” he went to
Joe Bamford, he became the ambassador for JCB as other customer and people came to John
Wheeldon to enquire about JCB products.

8
Because of some inherent problems this John Wheeldon himself joined as an employee of Mr.
Joe Bamford and Mr. John also has experience in the field of agriculture and fields. This was
and opportunities for Joe to expand his business are in these days, more were the employers
more opportune was Joe.

MARKET DIVERSIFICATION
Market expansion cannot be complete without market diversification. Joe diversified by
entering into ex-service vehicle market mainly jeeps, vans and trucks and refurbished them.
Joe foresaw a great potential for large number of ex W-D jeeps, ambassadors, command card,
all suitably converted.

1948

In 1948 Europe’s first two-wheeled hydraulic, all steel topping trailer was produced. It was
for operator’s benefit that tipping was made possible from a tractor seat.

Joe even foresaw competition from Midland Industries Ltd., for Major Loader, so went to a
competitive demonstration of major loader, which reflects his foresight. And with that Joe
thought about double acting ram, which was used 4 years later in MX1 excavator.
However, the major loader was the first Europe hydraulic loader introduced in 1948 by JCB.

1950

It was in 1950 that JCB outgrow at Crakemarsh and bought Old Wiltshire united dairies milk
processing and cheese factory at Rocestor from farmer John Bailey. The huge Rocestor
complex is there as Joe bought the Old cheese factory after pursanasion, from Bill Hirst.
Therefor the complex moved to Rocestor.

It was here in this new chicken factory converted into machine factory, where the color was
changed to distinctive bright yellow from green, which is now so familiar.

9
(It was in 1957 that there was publicity campaigning of JCB, like tracing a small example where
Mr. Joe send his wife to an exhibition to distribute leaflets to likely looking customers)

At the same time JCB launched Mater Loader, a smaller version of Major Loader. After this
mid mounted mover was launched

1953

It was a turning point for JCB, with a world first in the shape of Hydraulic loader, which was
designed by Mr. Bamford.

The JCB’s first backhoe was produced MK1 to which a major loader would fit upon. This is
how Europe’s first backhoe loader was born.

Just before this Ruston B was launched, when there was a technical problem with MK1, it was
rectified with the advice of Mr. Bill Hirts. Therefore he was moved into research department
to develop idea who retired as director service standards in 1991, 45th year of JCB.

The next major breakthrough was in 1957 when hydra-digger was launched which was
advertised as earthmovers, which cloud dig through a rock.

For the reminder of 1950’s Mr. Bamford concentrated developing his company expanding the
factory and creating more efficient dealer network, as now profit was pumped directly back to
business.

Then came more sophisticated JCB 4 that replaced Hydra-Digga in 1960 and first time in JCB
featured dual hydraulics, the 3 in 1 back hoe backed.

In 1961 JCB’s unveiled was constantly improved version of JCB 4, 4c vans introduced in
1962.

10
Standardization: JCB logo is universally known, which is a strictly guarded mark, first
registered in 1938 trademarks act in 25th Jan in 1958 and now covers for registrations. The
company imposes shirt rules that it should not be changed in anyway. Instruction cover how it
should be used what are the specified colors.
The concept angel of angle says that 18th degree between the lowest straight border and in
imaginary horizontal.

1960

It was a period of pressures as well as innovations for JCB. Infect “JCB” was an outcome of
60’s, which changed thinking forever.

But the other ace of 60’s was dark also as if faced a supplier’s hydraulic failure of JCB 4C.
A huge amount was spent for rectification and astonishingly in this period the idea of Electro
kettle sprouted in Joe’s mind.
Even the factory began producing JCB3C in March M63 with sheer brilliance of chief
designer Derek Prince.

The most enjoyable aspect of working with JCB is cautious innovation and new ideas
sprouting up as pointed by Alan Coper, the work’s director.

The most brilliant machine launched was JCB with the brilliance of Derek Prince, who passe
out of innovations.

Mr. JCB had another idea of a new machine but put in back when he saw a more process trial
idea of Derek Prince. Now the 3C took off the company with it.

Mr. JCB wanted more innovations, ideas and was not satisfied with his new members.

11
Alan Cooper was given the task of find Electro kettle, and he at last located in Swiss
manufacturer.
It was connected to 3D machine, replacing a digger, and quoted “Marketing legend was born”.

Advertisement were passed that for first 1W 3D’s, Joe himself would visit every operator and
hand him little.
It was unbelievable that operators were fighting to get a visit of Joe and have a photo taken with
him. 3D was an overnight success.

Ford supplied skid units to JCB, but all of a sudden could not due to internal problems and
even that could not stop JCB’s production. JCB managed to produce continuously even with
Ford’s.

JCB’S SPREAD IN THE WORLD AND ITS ARRIVAL IN INDIA

In this way JCB took off by different new machines and innovations and JCB spread over 150
countries. It is wholly owned by J C Bamford Excavators Limited of United Kingdom which
is ranked in the top five manufacturers of earthmoving and construction equipment in the
world. JCB is considered one of the Britain’s most impressive success stories and id world no.
1 producer of backhoe loaders.
1979

JCB India limited started operations in 1979 and is the fastest growing company in the Indian
earthmoving and construction equipment industry. It had a turnover of more than RS 450
crores in the year 2002. The company is the pioneer in the industry and has been recording
excellent growth rates.

12
2000-2001

In 2001-2002 JCB increased its market share in all the product segments despite the
downward trend across the market and today the population of JCB machines is over 17000 in
India. The company offers a wide range of equipment such as backhoe loaders (excavator
loaders), loading shovels, newly introduced 7.5 ton and upgraded 21 ton tracked excavators
and skid steer loaders.
In India, JCB is a generic name for backhoe loaders and they are working tirelessly from high
Himalayas to Rajasthan sandy deserts from remote projects to bustling megapolises. the
company boasts of several first the first company to bring in backhoe loaders and telescopic
handlers to India, as also the first to market and service earthmoving and construction
equipment through dealer networks. JCB 3D is today the single largest selling model in the
Indian earthmoving and instruction equipment industry.

“The movement of earth and the remodeling of the landscape have always being a source of
fascination for man. Man has acted as “Architect” throughout his entire civilized past with the
building and moving of earth constantly playing an important role. But the first traces of our
cultural heritage are not only to be found in art; But also in building and agriculture.

Mining was as early as the Neolithic age when the main desire was obtain flint from chalk to
make weapons and tools. About 6,000 years ago, with the progression from the Neolithic age
to the copper age, the change from hoe farming to the plough culture took place. It was at this
time tat the oldest known piece of earth moving equipment appeared: The Simple Wooden
Plough.

In fact the plough features throughout the history of mankind 5,200 years after it was invented
it was to undergo a tremendous change transforming it into what was to become today’s
grader and scraper and into other importance of earth moving equipment.

Earth moving machines are important part of human culture, they mirror contemporary
thought, technical possibilities and the every day working world of our fore fathers. They

13
development of earth moving machines tells the story of our culture as does the art or the
history of the peoples and the states.

The quickly forgotten development of building techniques never attracts the same attention as
the history of weapons for example either in public or in museum. It is for these reasons
among others that the history of these machines was finally written down as comprehensively
as possible for safe keeping.

Without the need to build there would be no construction equipment, without construction
equipment there would be no longer stretches of read or rail networks, no great water ways
and or airports. Dams would not be as high as they are there would be no connecting bridges
or tunnels.
Earth moving equipment followed the three stages of development. In early times machines
took over the dredging of ports, canals and the rivers, not to save on manual labour because at
that time labour was cheap but because manual work prove to be impact in practical. These
early machines were building for use on water ways. Then come the next stage of
development with the world changing invention of the railway, earth moving machines were
adopted for use on rails and were use to build the railway as well as being transported by rail.
There appearance change again early this century when they were adopted for road use and
they were increasingly transported by road rather than rail. Large number of these machines
was used in the construction of roads and motor ways especially during the middle of the 28th
century.

The origins of earth moving machines can certainly be traced back to the early days of
technology, but try to go back further into the past and the traces soon disappear. The drag
bucket pulled along by animals can be seen as the first specialized earth moving device. It was
the development of plough, already thousands of years old when the drag buckets was first
used.

How grade was increase in performance as compared to earlier methods? We cannot be sure
but a worker using a pickaxe and shovel and with a basket on this back could move roughly to

14
 2 cubic meter of earth over a distance of just 200 meter’s in the course of 12 hours a day. By
comparison building of San – Dam in California in 1964 almost 1.5 cubic meters of earth
were moved per second from the sources side 20 km away.

The Network
JCB India limited was the first company in this industry to market and support its products
through a network of dealerships. Today this network comprises of 21 JCB India marketing
offices 38 dealers and over 140 dealership outlets nationwide.

In addition to the above there are three parts depots at Calcutta, Chennai, and Pune to provide
quick support to the dealerships in the regions. With intelligent parts stocking at Head Office
and depots outlets, response time to any machine has come down considerably. Today over
95% of parts can be supplied anywhere in the country within 24 hours of receipt of
requirement.
At JCB India limited it is believed in the philosophy of lifetime relationship with a customer.
It is our endeavor to become a partner in the prosperity of our customers. Prompt and efficient
product support services ensure that the customer’s JCB machine is operational at all times.
Although JCB machines are best made and designed to operate in extremely tough conditions,
but we are not satisfied with this alone. JCB has a strong product support backup throughout
the country to ensure that the machine downtime is the bare minimum.
JCB has dedicated team of 600 trained product support engineers located at more than 140
dealer outlets throughout the country. These engineers constantly strive to keep the JCB
machines of its customers in operational readiness. Each dealer point is also well stocked with
full range of parts, which its customers require from time to time.
JCB believes that a delighted customer is its best JCB ADVOCATE who can help it to win
more customers. Some of ten parts and product support services being provided to its valued
customers are:-

a) Service Campaigns being undertaken from time to time to provide free preventive
maintenance services to its customers at their doorstep

15
b) Parts Marketing Campaigns to make the customer’s aware about the long-term benefits of
using “JCB Genuine Parts” in their machines.
c) Regular Customer meets which helps in understanding the discerning requirement if its
customers.
d) Training campaigns to upgrade the skills of the machine operators. This helps its customers
to get the best possible output from machine.

JCB PEDIGREE
Joseph Cyril Bamford launched the construction and agricultural equipment manufacturing
company that bears his initials, in 1945. He began his business in a garage that measured 12
feet by 15 feet.

Today, JCB’s world headquarters is one of the finest engineering factories in Europe. The
company that began as a ‘one man band’ now employs over 4,000 people and produces
over 130 different models on 4 different continents with bases in the UK, USA, India and
South America.
It also sells a full range of equipment in over 150 countries. But JCB’s remarkable
success story can not be fully appreciated by studying a litany of statistics. JCB has an
ethos, a spirit and an identity that cannot be conveyed by facts and figures. Perhaps one
question and one dictionary definition might go some way to explaining why JCB is a very
special company.
The question: ‘How many global brands are still run as a family business?’ The
dictionary definition: JCB n. Trademark. A type of construction machine with a
hydraulically operated shovel on the front and an excavator arm on the back (named
from the initials of Joseph Cyril Bamford, its English manufacturer).
JCB is a unique company where unique people produce unique products, but it shares
one vitally important characteristic with many other successful global brands. It never
stands still. JCB may have an exciting future because of its illustrious past but it
never takes anything for granted. It is constantly seeking new horizons.
Today’s successful businesses satisfy the needs of their customers. Tomorrow’s successful
brands have to exceed their customers’ expectations. JCB is always looking for a better way.

16
It is always prepared to go that extra mile, always determined to do whatever it can to help
its customers to do a better job.
The real JCB difference is that it is a global operation that is run like a family
business. It retains a sense of f a mily and continuity within a highly
sophisticated corporate structure. It is still family owned with no outside shareholders.
In the final analysis, JCB isn’t bout machines. It’s about people. People who believe in the
business, and in the product; People who consider themselves to be part of the JCB family

JCB is a company with a basic belief in the merits of art work. At the core of his
modern manufacturing giant is an old-fashioned work ethic. Nobody works harder on behalf
of their customers. Nobody tries harder to improve their products and their service.
JCB people believe their products are the best but they still want them to be better. That’s why
JCB is unique.

REACHING NEW HEIGHTS

When you’re a worldwide brand your famous logo is seen in all kinds of locations. Imagine
this.

Glacial Flood defenses are needed in an uninhabited area 16,000 feet up in the Himalayas in
Nepal. The area is completely inaccessible by road and a JCB Backhoe Loader could
make a major contribution – if only it could get to the scene.
Jason Call ear, a Team Leader in the Backhoe Loader Division, was responsible for delivering
the goods.
He assembled the machine, all 8 tones of it, after 300 separate parts were airlifted in by
helicopter.
It took Jason 4 days to assemble the machine which was used to dig a channel to drain water
from a glacial lake and to create a dam to prevent the flooding of villages lower down the
mountain.

17
A MATTER OF TRUST
Of course, being a worldwide brand means that JCB has certain obligations. Part of our
Mission Statement states, ‘we want to help to build a better future for our children where hard
work and dedication is given its just rewards’.
Here are two vivid examples of this commitment. JCB employees in the UK raised £1
million for the NSPCC through the ‘JCB – Digging Deep for Children’ campaign. A little
further afield, JCB have improved conditions at an under - privileged Indian
school following its adoption by a Trust set up in Lady Bamford’s name.
The Government High School in the village of Jharsaintli used to house pupils in tumbledown
buildings lacking electricity and drinking water. Now, thanks to the Lady Bamford Charitable
Trust, these facilities have been installed along with proper seats and desks.
The Trust has also provided funding for three English teachers. Lady Bamford has the last
word, “The work of the Trust is to ensure the school has the most basic facilities that many of
us in Britain would take for granted.”

A RACING CERTAINTY
Rik Kiddle, then Regional Manager for JCB Asia Pacific, ensured that JCB was in pole
position to ensure the safety of drivers and spectators at the inaugural Malaysia Grand
Prix.
Asia’s first ever Formula 1 Grand Prix launched Malaysia’s new state-of-the-art Sepang
international circuit near to Kuala Lumpur and 16 JCB Loadalls were on hand to function as
car recovery vehicles at each of the corners of the brand new circuit. The
Loadalls were called into action on eleven occasions, helping to recover the 200mph, 800hp
super cars from the run-off areas.

FIRST AID
Many of the JCB machines delivered to Turkey were first on the scene to provide aid to the
victims of a major Turkish earthquake.

The machines, mainly JCB Backhoe Loaders were pressed into service to assist in a massive
relief effort.

18
JCB also donated a new JS Excavator which had been held in dealer stock. The earthquake
killed several thousand people and destroyed up to 60,000 houses. Another 40,000 houses
were severely damaged in the quake which centered on Izmit, a large industrialized area
65 miles east of Istanbul, and the tremors caused severe damage to properties within an 80
mile radius.

CLEANING UP
When the floods that hit the Czech Republic in August 2002 devastated large areas of the
country a JCB JS220 helped with the large-scale clean-up operation.
The JS220 model, which was fresh off JCB’s production line, is capable of transporting
large amounts of silt from a stationary position on the river-bank through its 15-metre long
reach boom.
It was sent to Magdalena, a village badly affected by the floods, not to help so much with
the cosmetic clean – up process but to help re-build river banks and reinforce flood
defenses.
A JCB spokesman said: "The excavator was originally intended to go to Hungary but it was
diverted to the Czech Republic to help with the clean-up and that is where it will now stay”.

A spokesman for Chalus, the new owner said: "We have been very satisfied with the
excavator. We were also pleased with the delivery of the machine which took two days to
arrive after the initial order was placed.”

JCB’S PROMISE
We plan to deliver the best customer support in our industry – putting the customer at the very
heart of our business.

19
 JCB Worldwide Product Range

1) Backhoe loaders
4DX
3DX
2) Tracked excavators
JS210
JS75
3) Wheeled loaders
430Z
3DS
4) Skid steer loaders
160/170

20
S 75 TRACKED EXCAVATOR

3D BACKHOE LOADER

21
 JCB INDIA LIMITED – PRODUCT RANGE

➢ JCB 3D & JCB 3D TURBO (BACKHOE LOADER)

FEATURE

KIRLOSKAR ENGINE 4R – 1040 with 4 Cylinders Generates 57 KW (76 HP) at 2200 RPM.

22
APPLICATIONS

✓ Excavation
✓ Loading
✓ Dozing
✓ Grading
✓ Grabbing
✓ Backfilling
✓ Trenching
✓ Ditching

➢ JCB 3DX (LOADER)

FEATURE

KIRLOSKAR Engine 4R – 1040 with 4 Cylinders Generates 57 KW (76 HP) at 2200 RPM.

APPLICATIONS

✓ Loading

✓ Dozing

✓ Grading

✓ Grabbing

✓ Backfilling

✓ Ditching

23
Attachment of JCB 3D & 3DX

Excavator End Attachments: -

Augur Ditch Cleaning Bucket D-Shackle & Hook Extending Dipper

GP Bucket Hand Held Breaker Jaw Bucket Ripper Tooth

JCB 4CX (EXCAVATOR LOADER)

FEATURE

PERKINS Engine with 4

Cylinders Generates

71.5 KW (96 HP) at 2200 RPM

APPLICATIONS

✓ Similar to 3DS operations

but for heavy operations

24
➢ JCB 430Z (WHEELED LOADING SHOVEL)

FEATURES
Maximum operating weight 3300 KGS Ashok Leyland Engine with 6 Cylinders 4 Stroke
generates 127 HP.

APPLICATIONS

✓ Wagon Loading

✓ Pallet Handling

✓ Burgesses Spreading

✓ Dozing

➢ JCB JS 75 (TRACKED EXCAVATOR)

FEATURES

Maximum operating weight 8035

KGS KIRLOSKAR Engine 4R 1040
with 4 Cylinders 4 Stroke
generates 67 HP at 1800 RPM.

25
APPLICATIONS

✓ Dual Crusher Loading

✓ Pipe Laying
✓ Excavating & Loading
✓ Road Construction
✓ Closed Area Operation
✓ Trenching Dozing

➢ JCB ROBOT (SKID STEER)

FEATURES

Maximum operating
weight 3500 / 3725 KGS
Engine with 4 Cylinders 4 Stroke.

APPLICATIONS
✓ Road & Industrial Cleaning
✓ Drilling holes for Poles and Trees
✓ Loading
✓ Grading
✓ Grabbing
✓ Lock Breaking
✓ Excavation
✓ Trenching
✓ Tilling

26
CLIENTS LIST
• ACC

• Bhagiratha Engineering (Kerela)

• Bharat Coking Coal Ltd

• Bhilai Steel Plant

• Binani Cement

• Calcutta Port Trust

• Damodar Valley Corporation

• Directorate General Border Roads

• Dodsal

• Eastern Coal Fields

• Hindustan Construction Company

• Hindustan Zinc

• IFFCO

• Indian Petro Chemical Ltd

• Indian Army

• Indian Iron & Steel Company

• Indian Navy

• IRCON

• L&T-ECC

• Madras Port trust

27
JCB MANAGEMENT HIERARCHY

• John Patterson
[Group Chief Executive]

• Tim Lead beater

[Group Commercial & Planning Director]

• Fracoise Rausch
[MD JCB Sales Ltd.]

• Keith Tipping
[MD Heavy Line]

• Malcom Foe
[MD Branded Products]
• Alan Thomson
[MD Compact Products]
• Alan Staniforth
28
 [MD Human Resource]

• Paul Keogh
[World wide Marketing and Branded Director]

• Steve Gardner
[Group Purchasing Director]

• David Bell
[MD Agri & Industrial]

• David Miller
[Group Finance Director]

• Steve Yianni
[Director & GM Transmissions]

• Gracme Macdonald
[MD B / L Division]

• Alan Blake
[MD JCB Services Ltd.]

29
REVIEW OF LITERATURE

30
 REVIEW OF LITERATURE

The history of performance appraisal is quite brief. Its roots in the early 20th century can be
traced to Taylor’s pioneering Time and Motion Studies. But this is not very helpful, for the
same may be said about almost everything in the field of modern human resource management.

As a distinct and formal management procedure used in the evaluation of work performance,
appraisal really dates from the time of the Second World War – not more than 60 years ago.

Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale of things
historical, it might well lay claim to being the world’s second oldest profession!

Basically performance appraisal is one of the oldest and most universal practices of
management. It refers to all the formal procedures used in working organisation to evaluate the
personalities and contributions and potential of group members.

Performance appraisal is the process of evaluation of an employee at higher levels by some

qualified persons. In order to know whether the selection of an employee was right or wrong,
performance appraisal is resorted to. Personal promotion, transfer, salary increase etc. are all
linked with performance.

Appraisal of employees reveals as to how efficiently the subordinate is performing his job and
also to known his aptitudes and other qualities necessary for performing the job assigned to him.
The qualities of employees that are apprised through performance appraisal are ability to do
work, spirit of co-operation, managerial ability, self confidence, initiative, intelligence etc.

Appraisals can be made by one or more superiors or by subordinate or by peers. They can also
be made by two or more of these three or by a rating committee or by special appraisers. There
may even be a system of self-appraisal in which each employee evaluates his own performance
and potential. But appraisals by direct superiors are the most common.

31
Although in day-to-day work the superior continuously appraises his subordinates, the daily
appraisal lacks summation and objectivity. To overcome these deficiencies, most management
turns to periodic appraisals this may be either annual or semi annual. In addition, special
appraisal may be done at the end of an employee’s probationary period or at the same time of
his promotion.

There is, says Dulewicz(1989),” a basic human tendency to make judgments about those one is
working with, as well as about oneself.” Appraisal, it seems, is both inevitable and universal. In
the absence of a carefully structured system of appraisal, people will tend to judge the work
performance of others ,including subordinates, naturally, informally and arbitrarily.

The human inclination to judge can create serious motivational ethical and legal problems in
workplace. Without a structured appraisal system, there is little chance of ensuring that the
judgements made will be lawful, fair, defensible and accurate.

Performance appraisal systems began as simple methods of income justification. That is,
appraisal was used to decide whether or not the salary or wage of an individual employee was
justified.

The process was firmly linked to material outcomes. If an employee's performance was found to
be less than ideal, a cut in pay would follow. On the other hand, if their performance was better
than the supervisor expected, a pay rise was in order.

Little consideration, if any, was given to the developmental possibilities of appraisal. If was felt
that a cut in pay, or a rise, should provide the only required impetus for an employee to either
improve or continue to perform well.

32
MEANING

Personnel evaluation method seeking the measurement of employee work effectiveness

using objective criteria. Performance appraisal systems hope to achieve higher

productivity outcomes by delineating how employees meet job specifications. A major

challenge for performance appraisal systems is to define performance standards while

maintaining objectivity.

Performance appraisal, also known as employee appraisal, is a method by which the

performance of an employee is evaluated (generally in terms of quality, quantity, cost

and time).

Performance appraisals are a regular review of employee performance within

organizations.

Generally, the aims of a scheme are:

• Give feedback on performance to employees.

• Identify employee training needs.

• Document criteria used to allocate organizational rewards.

• Form a basis for personnel decisions-salary (merit) increases, promotions,

disciplinary actions, etc.

• Provide the opportunity for organizational diagnosis and development.

• Facilitate communication between employee and administrator.

• Validate selection techniques and human resource policies to meet federal Equal
Employment Opportunity requirements.

33
 • BASIC PURPOSE

Effective performance appraisal systems contain two basic systems operating in

conjunction:

Evaluation system:

The main aim of the evaluation system is to identify the performance gap (if any). This
gap is the shortfall that occurs when performance does not meet the standard set by the
organization.

What to Evaluate?

The first important step in developing a PA system is to determine which aspects of

performance to evaluate. The most frequently used appraisal criteria are traits,

behaviors, and task outcomes.

Traits

Many employees are assessed according to their traits, such as personality,

aptitudes, attitudes, skills, and abilities. Traits are relatively easy to assess once a rater

gets to know ratees. But traits are not always directly related to job per formance. Trait-

based assessment lacks validity and thus frequently raises legal questions.

Behaviors

For many jobs, performance is so broadly defined or so conceptual in

nature— such as ensuring public safety in the police de partment—that it is hard to

come up with reliable performance measures. In such cases, desirable behaviors can be

identified and assessed in the belief that such behaviors lead to successful performance.

Such behavior-focused assessment encourages employees to adopt desirable behavioral

34
patterns in the workplace.

Task outcomes

When information about task outcomes is readily available, it is the most appropriate
factor to use in evaluating performance. When an organization has a clear and
measurable goal as in the case of a sales force, this approach is recommended.

However, it has its own pitfalls. There is a problem if employee behaviors are not

directly related to the task out-come. Too narrow a focus on measuring out-come only

sometimes results in unintended negative consequences. When sales staff narrowly

focus on target sales figures to increase their performance measure, for example, they

are encouraged to help a few large-volume customers and to ignore many smaller

buyers. This may result in poor customer service on the floor.

Who Evaluates?

The most common raters of performance are employees' immediate supervisors, who

are usually in the best position to know and observe the employees' job performance.

They are also responsible for employees' work. Their evaluation is a powerful tool in

motivating employees to achieve successful and timely completion of tasks. However,

as a result of working together over a long time with the same employees, the

immediate supervisor may build up a fixed impression about each employee and use it

every time he or she has to evaluate performance.

Some companies find that subordinates are in an excellent position to observe and

evaluate their managers' performance, especially when it comes to measuring effective

35
management of their department. While there is merit in asking subordinates to

evaluate how they are managed, such evaluation may turn into a popularity contest.

Accurate and objective assessment may not be obtained if employees are fearful of

possible retaliation from their supervisors. Anonymity of the evaluators is key to the

successful use of subordinates for objective evaluation.

Feedback System:

The main aim of the feedback system is to inform the employee about the quality of his
or her performance. (However, the information flow is not exclusively one way. The
appraisers also receives feedback from the employee about job problems.)

One of the best ways to appreciate the purposes of performance appraisal is to look at it
from the different viewpoints of the main stakeholders:

1 From the employee viewpoint, the purpose of performance appraisal is four-

fold:

Tell me what you want me to do.

Tell me how well I have done it.

Help me improve my performance.

Reward me for doing well.

2 From organization’s point of view:

From the organization's viewpoint, one of the most important reasons for having
system of performance appraisal is to establish and uphold the principle of
accountability.

36
 Four Phases of Performance Appraisal

A four phase performance appraisal process and corresponding instrument will be used
to achieve the intended outcomes of the division. The concept of the four phase model
is illustrated in the figure below:

37
Phases I through III-Review of Objectives and their Achievement
Each employee develops, in concert with their supervisor, a set of specific objectives to
be achieved during the upcoming year. The employee reviews their progress in
achieving these objectives at set intervals through out the performance year and drafts a
summary of their performance at each interval. This summary is reviewed with the
supervisor in mid-fall and again in mid-spring semester and agreement on achievements
and performance toward each objective is reached. These meetings are also an
opportunity for the employee and the supervisor to review and update objectives to
reflect changes in priority or emerging needs.
In late June, after the academic year is complete and as the division begins to compile
data for its annual report, the employee again prepares a final statement on achievement
and performance toward the objectives and reviews this final report with the supervisor.
At the same time, the supervisor asks the employee to begin drafting annual objectives
for the upcoming year that will correspond with the organizational goals and the
employee’s position description. The supervisor and employee meet again in mid-
August and finalize employee objectives for upcoming academic year and this portion
of the annual cycle begins again.

Phase IV - Annual Review

At the mid-June meeting, the supervisor also asks the employee to complete a self-evaluation
form. This self-evaluation form mirrors the annual evaluation form the supervisor will
complete on the employee. This annual evaluation form incorporates a standard set of
behaviors and behavioral characteristics that can be ranked on a numerical scale. In addition,
there is the opportunity to cite specific examples of exemplary behavior (critical incidents) that
demonstrate the behavioral characteristics and the rating given. The review of
accomplishments of objectives in phases one through three may be a resource for these types of
examples.

38
METHODS OF PERFORMANCE APPRAISAL

In a landmark study, Locher & Teel (1977) found that the three most common appraisal
methods in general use are:

1. Rating scales (56%),

2. Essay methods (25%) and

3. Results- oriented or MBO methods (13%).

Certain techniques in performance appraisal have been thoroughly investigated, and

some have been found to yield better results than others.

ENCOURAGE DISCUSSION

Research studies show that employees are likely to feel more satisfied with their
appraisal result if they have the chance to talk freely and discuss their performance. It is
also more likely that such employees will be better able to meet future performance
goals.

Employees are also more likely to feel that the appraisal process is fair if they are given
a chance to talk about their performance. (This especially so when they are permitted to
challenge and appeal against their evaluation.)

CONSTRUCTIVE DISCUSSION

It is very important that employees recognize that negative appraisal feedback is

provided with a constructive intention, i.e., to help them overcome present difficulties
and to improve their future performance. Employees will be less anxious about
criticism, and more likely to find it useful, when the believe that the appraiser's
intentions are helpful and constructive.

39
In contrast, other studies have reported that "destructive criticism" - which is vague, ill-
informed, unfair or harshly presented - will lead to problems such as anger, resentment,
tension and workplace conflict, as well as increased resistance to improvement, denial
of problems, and poorer performance.

GOAL SETTING

It has been shown in numerous studies that goal-setting is an important element in

employee motivation. Goals can stimulate employee effort, focus attention, increase
persistence, and encourage employees to find new and better ways to work.

The useful of goals as a stimulus to human motivation is one of the best supported
theories in management. It is also quite clear that goals which are "...specific, difficult
and accepted by employees will lead to higher levels of performance than easy, vague
goals (such as do your best) or no goals at all."

APPRAISER CREDIBILITY

It is important that the appraiser (usually the employee's supervisor) be well-informed

and credible. Appraisers should feel comfortable with the techniques of appraisal, and
should be knowledgeable about the employee's job and performance.

When these conditions exist, employees are more likely to view the appraisal process as
accurate and fair. They also express more acceptance of the appraiser's feedback and a
greater willingness to change.

WAYS TO DO PERFORMANCE APPRAISAL

1. RATING SCALE

The rating scale method offers a high degree of structure for appraisals. Each employee
trait or characteristic is rated on a bipolar scale that usually has several points ranging
from "poor" to "excellent" (or some similar arrangement).

The traits assessed on these scales include employee attributes such as cooperation,

40
communications ability, initiative, punctuality and technical (work skills) competence.
The nature and scope of the traits selected for inclusion is limited only by the
imagination of the scale's designer, or by the organization's need to know.

The one major provision in selecting traits is that they should be in some way relevant
to the appraisee's job. The traits selected by some organizations have been unwise and
have resulted in legal action on the grounds of discrimination.

2.ESSAY METHOD

In the essay method approach, the appraiser prepares a written statement about the
employee being appraised.

The statement usually concentrates on describing specific strengths and weaknesses in

job performance. It also suggests courses of action to remedy the identified problem
areas.

The statement may be written and edited by the appraiser alone, or it be composed in
collaboration with the appraise.

3.RESULT METHOD
MANAGEMENT BY OBJECTIVES(MBO)

The use of management objectives was first widely advocated in the 1950s by the noted
management theorist Peter Drucker.

MBO (management by objectives) methods of performance appraisal are results-

oriented. That is, they seek to measure employee performance by examining the extent
to which predetermined work objectives have been met.

41
 BENEFITS OF PERFORMANCE APPRAISAL

Perhaps the most significant benefit of appraisal is that, in the rush and bustle of daily
working life, it offers a rare chance for a supervisor and subordinate to have "time out"
for a one-on-one discussion of important work issues that might not otherwise be
addressed.

Almost universally, where performance appraisal is conducted properly, both

supervisors and subordinates have reported the experience as beneficial and positive.

Appraisal offers a valuable opportunity to focus on work activities and goals, to

identify and correct existing problems, and to encourage better future performance.
Thus the performance of the whole organization is enhanced.

For many employees, an "official" appraisal interview may be the only time they get to
have exclusive, uninterrupted access to their supervisor. Said one employee of a large
organization after his first formal performance appraisal, "In twenty years of work,
that's the first time anyone has ever bothered to sit down and tell me how I'm doing."

The value of this intense and purposeful interaction between a supervisors and
subordinate should not be underestimated.

1 MOTIVATION AND SATISFACTION

Performance appraisal can have a profound effect on levels of employee motivation and
satisfaction - for better as well as for worse.

Performance appraisal provides employees with recognition for their work efforts. The
power of social recognition as an incentive has been long noted. In fact, there is
evidence that human beings will even prefer negative recognition in preference to no
recognition at all.

If nothing else, the existence of an appraisal program indicates to an employee that the
organization is genuinely interested in their individual performance and development.
This alone can have a positive influence on the individual's sense of worth,

42
commitment and belonging.

The strength and prevalence of this natural human desire for individual recognition
should not be overlooked. Absenteeism and turnover rates in some organizations might
be greatly reduced if more attention were paid to it. Regular performance appraisal, at
least, is a good start.

2 TRAINING AND DEVELOPMENT

Performance appraisal offers an excellent opportunity - perhaps the best that will ever
occur - for a supervisor and subordinate to recognize and agree upon individual training
and development needs.

During the discussion of an employee's work performance, the presence or absence of

work skills can become very obvious - even to those who habitually reject the idea of
training for them!

Performance appraisal can make the need for training more pressing and relevant by
linking it clearly to performance outcomes and future career aspirations.

From the point of view of the organization as a whole, consolidated appraisal data can
form a picture of the overall demand for training. This data may be analysed by
variables such as sex, department, etc. In this respect, performance appraisal can
provide a regular and efficient training needs audit for the entire organization.

3 RECRUITMENT AND INDUCTION

Appraisal data can be used to monitor the success of the organization's recruitment and
induction practices. For example, how well are the employees performing who were
hired in the past two years?

Appraisal data can also be used to monitor the effectiveness of changes in recruitment

43
strategies. By following the yearly data related to new hires (and given sufficient
numbers on which to base the analysis) it is possible to assess whether the general
quality of the workforce is improving, staying steady, or declining.

4 EMPLOYEE EVALUATION

Though often understated or even denied, evaluation is a legitimate and major objective
of performance appraisal.

But the need to evaluate (i.e., to judge) is also an ongoing source of tension, since
evaluative and developmental priorities appear to frequently clash. Yet at its most basic
level, performance appraisal is the process of examining and evaluating the
performance of an individual.

Though organizations have a clear right - some would say a duty - to conduct such
evaluations of performance, many still recoil from the idea. To them, the explicit
process of judgement can be dehumanizing and demoralizing and a source of anxiety
and distress to employees.

It is been said by some that appraisal cannot serve the needs of evaluation and
development at the same time; it must be one or the other.

But there may be an acceptable middle ground, where the need to evaluate employees
objectively, and the need to encourage and develop them, can be balanced.

44
RESEARCH METHODOLOGY

45
 OBJECTIVES OF THE STUDY

Performance appraisal is the basic method that is being used by the organizations for
updating the information about their employees, i.e. they first recruit the employees and
then they keep on doing the performance appraisal so that they can know and
understand that the employees they have recruited have been of the worth to the
organization or not.

In this study we have concentrated on certain points which gives us the view about how
performance appraisal gives us more in recognizing what are their various methods
used in the organization for doing performance appraisal and how they effect directly or
indirectly to the productivity of the employees.

Following are the main objectives of the study:

1. To find out what methods are used to do performance appraisal.

2. To see satisfaction level of the people after they undergo the performance appraisal.

3. To study the impact of performance appraisal system on productivity.

4. Suggesting new ideas to improve and further improvement.

46
 SCOPE OF THE STUDY

Scope of our study is very realistic and very direct. Imagine that you have opened a
firm some time back and you recruited some of employees and now you have done a
performance evaluation of the firm. The results show that the firm growth chart is quite
stagnant or quite declining. Therefore you will start worrying and will chalk out a plan
which can accelerate the growth chart.

In one manner or other possibly one will go for performance appraisal of the
employees. Performance appraisal of the employees tells the employer about the level
of the working of the people working in his firm.

In this study an in depth study of the performance appraisal methods that is used by the
JCB and three methods are found basic as being discussed before.

These methods of performance appraisal are being basically used for the appraisal of
the front line people who remain in direct contact with the customers of the JCB and
therefore they best know what are the demands of the customer, what is that specific
need of his that is still not catered by any of the existing firms and there a firm can find
it’s new business.

By doing performance appraisal we can easily understand about why the firm if lacking
in its performance, then what’s the reason behind it, and how it could be recovered.

This performance appraisal study reveals what effect an evaluation can have on the
productivity of the employee giving him more purview of what exactly he is doing and
what is being expected out from him.

47
 RESEARCH METHODOLOGY

Methods which are generally being used to do a research work, and then we will relate
our research with the one type which is of its kind.

But before relating the research and understanding it we should have little knowledge
of “Research” indeed.

Research in common meaning refers to a search for knowledge. If we define research

properly then it would be like “It is a scientific and systematic search for pertinent
information on a specific topic”. Still some people consider research as a Movement,
the movement from known to unknown. All of us posses some amount of
inquisitiveness in our self, and it is this inquisitiveness that make all of us to get known
with the things which are unknown to us.

Research is an academic activity, which help us to get familiar with the basic things of
the findings and spread the knowledge so that all can be benefited from it. In short, the
search for knowledge through objectives and systematic method of finding solution to a
problem is research. The systematic approach concerning generalization and the
formulation of a theory is also Research.

48
 OBJECTIVES OF RESEARCH

The main aim of research is to find out the truth which is hidden and which has not
been discovered as yet. Though each research study has its own specific purpose, we
may think of research objectives as falling into a number of following broad groupings:

1 To gain familiarity with a phenomenon or to achieve new insights into it.

2 To portray accurately the characteristics of a particular individual, situation or a
group.
3 To determine the frequency with which something occurs or with which it is
associated with something else.
4 To test a hypothesis of a casual relationship between variables.

However this is not an exhaustive list of factors motivating people to undertake

research studies. Many more factors such as directives of government, employment
conditions, curiosity about new things, desire to understand casual relationships, social
thinking and awakening, and the like may as well motivate people to perform research
operations.
Now as we know that what are the various objectives behind the research work we
should also understand that what the type of research work is, that is being done by us
and categories our lies in which category.

49
 METHODOLOGY OF REPORT

• Firstly i choose the topic which was of my interest and I knew it will increase
my view in working of the organization.

• After I visited company’s office and met with the executives over there.

• Thirdly I made them understood what I am trying and in what prospect I wanted
their help.

• After this they told me what methods they are using for the performance
appraisal, it was the rough idea they provided me as their company rules don’t
allow them to reveal their policies.

• After that I came in contact with some people working for the organization and
going through those appraisals.

• I saw the forms which they are supposed to fill during the appraisal process.

• On the basis of the information got and gathered I made the REPORT report.

The basic types of research work under which, we can be say our lie is :

Descriptive Research – This research includes surveys and fact findings

enquiries of different kind. The basic purpose of this type of research is that it
describes the state of affairs in current scenario. It is being generally used in
social sciences and business research.

Oftenly a term is used to describe the descriptive research studies that is “Ex post
Facto”.
The main characteristics of this method are that researcher has no control over the
variables; he can only report what happened or what is happening. The method used in

50
this type of research is survey methods including comparative and co relational
methods.

It is also a diagnostic research in which we see and identify the facts as they are
presently viewed and also in the manner in which they could be made better.
It’s like the comparison for betterment, as new ideas will be suggested.
Research Approach:
Approach is associated with the research is qualitative one as in this we are concerned
with subjective assessment of attitudes, opinions and behavior.

The need of data collection comes out after a research problem is being defined. While
collecting data for the research or for the study, the researcher should keep in mind two
types of data viz., Primary and Secondary.

The Primary Data are those which are collected afresh and for the first time, and thus
happen to be original in character.

The Secondary Data, on the other hand, are those which have already been collected by
someone else and which have already been passed through the statistical process. The
researcher have to decide which sort of data he would be using for his/her study and
accordingly he will have to select one or other method of data collection.

With the differentiation of primary and secondary other method can also be applied like
Formal Information sources and Informal Information Sources.

51
 COLLECTION OF DATA
By these sources I able to collect the data which is as follows:-

1. Formal Information Sources – These are the sources of information which are
authentic and reliable, obtained through a proper channel in the organization by
adhering to a systematic and structured procedure.
For Example:
Through company manuals, journals, brochures and any other published material like
balance sheets, annual reports, articles etc.
Questionnaire
Personal Interview and Mails etc
Through the Company Person
.

2. Informal Information Sources - These are the sources of information which are
obtained through our interpersonal relationships with the employees of the
company.
For Example:

Employees of the same department.

External stakeholders involved in the Company like Existing
Clients

3. Primary Data – Data which is collected for the first time for a specific purpose
is generally known as Primary data.

For Example:

Questionnaire
Personal Interview
E- mail

52
 Telephone Enquiry
Feedback Form

4. Secondary Data – Data which is collected for some other purpose but which can
be used either partially or fully for the present study is known as Secondary
data.
For Examples:
Published Articles
Annual reports of company like annual sales report, annual
finance report and annual marketing report
Reports of different types of Governmental and non-
governmental agencies
Internet

These four types of sources helped us to gather information about the company and its
competitors. We can use formal information sources only for the information about the
company. Informal sources will be great help to get information about the company
also. Secondary data will be used for the competitor’s information. Internet will be used
for the information about the company and its competitors. Competitors home web site
will be great help to us to get knowledge about the lacking in our’s and need of growth
in our presentation.

53
DATA ANALYSIS AND
INTERPRETATION

54
 DATA ANALYSIS

The analysis of the data is done as per the survey finding. The data is represented
graphically in percentage.
The percentage of the people opinion were analyzed and expressed in the form of
charts and have been placed in the next few pages.

DATA INTERPRETATION

A questionnaire was prepared for the purpose of getting feedback from the employees and
manager regarding “Recruitment & Selection Procedure” of their company. 30 employees are
selected from different department and were distributed the questionnaire from the purpose
of the study.

55
 From Employees:-
1. Do you know what is performance appraisal?

YES NO

65% 35%

TABLE NO.1

35%
YES
NO
65%

FIGURE NO-1

65% employees said that they know about performance appraisal.

35% employees said that they don’t know about performance appraisal.

56
 2. Do you have understanding, why it is used in the firm?

YES NO

77% 23%

TABLE NO.2

23%

YES
NO

77%

FIGURE NO-2

77% employees said that they understand the uses of performance appraisal in the firm.

33% employees said that they don’t know about the uses of performance appraisal in
the firm.

57
 3. How many times you have gone through the process till date?

ONCE TWICE THRICE

45% 30% 25%

TABLE NO.3

25%
ONCE
45%
TWICE
THRICE
30%

FIGURE N0-3

45% employees said that only once they have gone through the process till date.

30% employees said that twice times they have gone through the process till date.

25% employees said that thrice times they have gone through the process till date.

58
 4. Do you feel the process done is fair and justified?

YES NO

64% 36%

TABLE NO.4

36%
YES
NO
64%

FIGURE NO-4

64% employees said yes the process is fair and justified.

36% employees said no the process is not fair and justified.

59
 FROM THE HEADS OF EVERY DEPARTMENTS:

5. Do your firm evaluate employees on their performance through performance

appraisal ?

YES NO

86% 14%

TABLE NO.5

14%

YES
NO

86%

FIGURE NO-5
86% said yes they evaluate employees on their performance through performance
appraisal.
14% said no they do not evaluate employees on their performance through performance
appraisal.

60
 6. How frequently you uses performance appraisal?

*3 MONTH *6 MONTH

54% 46%

TABLE NO.6

56% 54%
54%
52%
50%
48% 46%
46%
44%
42%
*3 MONTH *6 MONTH

FIGURE NO-6

Frequency of using performance appraisal is 3 months is 54%.

Frequency of using performance appraisal is 6 months is 46%

61
 7. Which method of performance appraisal method is used by you?

ESSAY METHOD RATING METHOD RESULT METHOD

45% 30% 25%

TABLE NO. 7

50% 45%

40%
30%
30% 25%

20%
10%
0%
ESSAY RATING RESULT
METHOD METHOD METHOD

FIGURE NO-7

45% head of the deptt. used essay method .

30% used rating method.

25% used result method.

62
 8. What are general reactions of your appraisal processes?

REWARD PROMOTION DEMOTION

55% 35% 10%

TABLE NO 8

10%

REWARD
PROMOTION
35% 55%
DEMOTION

FIGURE NO-8

55% said reward is their general reaction.

35% said promotion is their general reaction.
10% said demotion is their general reaction.

63
 9. Who rate your employees?

EMPLOYEE EMPLOYER SUPERIOR SUBORDINATE

35% 40% 15% 10%

TABLE NO. 9

50% 40%
40% 35%
30%
20% 15%
10%
10%
0%

E R R E
YE YE IO AT
O O ER IN
PL PL P RD
EM EM SU BO
SU

FIGURE NO-9

35% said employee.

40% said employer.

15% said superior.

10% said subordinate.

64
 10. How many employees you consider in a group while a single performance
appraisal process?

PEOPLE 100 PEOPLE 150 PEOPLE

50% 30% 20%

TABLE NO.10

60%
50%
50%
40%
30%
30%
20%
20%
10%
0%
50 PEOPLE 100 PEOPLE 150 PEOPLE

FIGURE NO-10

50% said 50 people are to be consider in a group.

30% said 100 people are to be consider in a group.
20% said 150 people are to be consider in a group.

65
 11. Do you like to prefer to invest in performance appraisal or in some other plans
instead?

PERFORMANCE APPRISAL OTHER METHODS

75% 25%

TABLE NO-11

75%
80%
70%
60%
50%
40% 25%
30%
20%
10%
0%
CE APPRISAL

METHODS
PERFORMAN

OTHER

FIGURE NO-11

75% said yes they like to invest in performance appraisal.

25% said they like to invest in other methods.

66
 12. What is the basis of the performance appraisal?

PERFORMANCE KNOWLEDGE CAPACITY TEAM WORK

40% 30% 20% 10%

TABLE NO-12

PERFORMAN
CE
10% KNOWLEDGE
20% 40%
CAPACITY
30%
TEAM WORK

FIGURE NO-12

40% said performance is the basis

30% said knowledge is the basis.
20% said capacity is basis.
10% said team-work is basis

67
 From Customers:

13. Do you know about performance appraisal?

YES NO

65% 35%

TABLE NO.13

70% 65%
60%
50%
40% 35%
30%
20%
10%
0%
YES NO

FIGURE NO-13

65% customers said yes they know about performance appraisal.

35% customers said no they don’t know about performance appraisa

68
 14. Do you feel its necessary in organization?

YES NO

85% 15%

TABLE NO-14

100%
85%
80%

60%

40%
15%
20%

0%
YES NO

FIGURE NO-14

85% said yes it is necessary.

15% said no it is not necessary.

69
 15. Do you think its fair to take customer point of view in consideration?

YES NO

78% 22%

TABLE NO-15

22%
YES
NO
78%

FIGURE NO-15

78% said yes it is fair to take customer point of view in consideration.

22% said no it is not fair to take customer point of view in consideration.

70
FINDINGS OF THE
STUDY

71
 FINDINGS DURING THE CORPORATE VISITS

The people at the higher level of management hierarchy prefer the regular
appraisals. The basic reason for this is that they for the long term gains and
not the short term ones.
The corporate are not inclined towards using difficult programmes rather
they use simpler techniques.
Corporates do a deep analysis before choosing any appraisal method.
They prefer results then services.
They always enrich you by latest updates in the economy.

FINDINGS ABOUT THE ORGANISATION

Sales executives are properly trained and even they are aware of the ongoing
trends of the market.
As the human resource department is divided into various team, each team
working for their own target and limit to there own teams to achieve there
target.
Upward communication is limited as trainee or sales executives can contact
only up to branch manager.
Excess of load on relationship manager.
Management information system and employees management system is one
of the best parts of JCB.

72
CONCLUSIONS AND
SUGGESTIONS

73
 CONCLUSION

In conclusion we right about the various conclusions that we have came upon after we
have analyzed all the research study, and then we extract conclusion from there.

Employees like to have their performance appraised regularly and like to

know the result too.
Processes should be fast and simple.
JCB system wasn’t as effective as of other organizatrion.
Employees feel filling forms is a wastage of time.
As JCB are more reliable because of government presence in it efficiency
of employees is not considered much.
Span of time between two performance appraisals are quite more.

All the above points show that, mostly employees are aware of Performance appraisal
but they want it to be done in more simpler and easier method to make it more
effective.
SUGGESTIONS

Suggestions are the kind of recommendation which help a company to fill up its
loopholes and then try to achieve maximum output from employees.

Performance appraisal should be done on right time.

Focus on the efficiency should be there.
Time taken should be done less.
Professionals should be consulted.
Results should be announced to make them aware of their level.
New innovations according to the time should

74
ANNEXURE

75
 BIBLIOGRAPHY

➢ www.jcbindia.com

➢ Articles.

➢ JCB Manual.

➢ Practice of Human Resource by Danny Shield

➢ Smith, H. P. (1997). Performance Appraisal and Human Development,

Reading, MA: Addison and Wesley Longman Inc.

76
 QUESTIONNAIRE

From Employees:

1. Do you know what is performance appraisal?

A. *YES B. *NO

2. Do you have understanding, why it is used in the firm?

A. *YES B. *NO

3. How many times you have gone through the process till date?

A. *ONCE B. *TWICE C.*THRICE

4. Do you feel the process done is fair and justified?

A. *YES B.*NO

From the heads of department:

5.Do your firm evaluate employees on their performance through performance

appraisal ?

A. *YES B. *NO

77
6.How frequently you uses performance appraisal?

A. *3MONTHS B. *6MONTHS

7.Which method of performance appraisal method is used in your organization?

A. *ESSAY METHOD B. *RATING METHOD

C. *RESULT MEHTOD

8.What are general reactions of your appraisal processes?

A. *REWARDS B. *PROMOTION C. *DEMOTION

9.Who rate your employees?

A. *EMPLOYEES B.*EMPLOYERS C. *SUPERIOR

D. *SUBORDINATE

10. How many employees you consider in a group while a single performance
appraisal process?

A. *50 B. *100 C. *150

78
11. Do you like to prefer to invest in performance appraisal or in some other plans
instead?

A. *PERFORMANCE APPRAISAL B. *OTHER PROCESSES

12.What is the basis of the performance appraisal?

A. *PERFORMANCE B.*KNOWLEDGE C. *CAPACITY

D. *TEAM WORK

From Customers:

13.Do you know about performance appraisal?

A. *YES B. *NO

14.Do you feel its necessary in organization?

A. *YES B. *NO

15.Do you think its fair to take customer point of view in consideration?

A. *YES B. *NO

79