SUMMER INTERSHIP

PROJECT
PERFORMANCE APPRAISAL SYSTEM

Himanshu Shekhar
Adityapur Auto Cluster
Q4WM+JVW, Near Adityapur Toll Bridge, Tata Kandra Main Road, Adityapur, Adityapur Industrial Area, Adityapur, Jamshedpur,
Jharkhand 832109

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 Performance Management System

Assignment Report
submitted in partial fulfilment of the requirements for
the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted to: Dr. Manju Bhagat

NAME: PRASHANT KUMAR BARDIYAR

ROLL NO: MBA/10038/22

DEPARTMENT OF MANAGEMENT

BIRLA INSTITUTE OF TECHNOLOGY

MESRA, RANCHI

2022-2024

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 DECLARATION CERTIFICATE

This is to certify that the work presented in the project entitled

“Performance Appraisal System” in partial fulfilment of the requirement
for the award of Degree of Master of Business Administration of Birla
Institute of Technology Mesra, Ranchi is an authentic work carried out
under my supervision and guidance.

To the best of my knowledge, the content of this project does

not form a basis for the award of any previous Degree to anyone else.

Date : (Guide’s Name & Signature)

Department of Management
Birla Institute of Technology
Mesra, Ranchi

2
Head
Department of Management
Birla Institute of Technology
Mesra, Ranchi

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Date: 29/08/2023
Name of Students with Signature

<<Name of
Guide with
signature>>
 CERTIFICATE OF APPROVAL

The foregoing training report entitled “Performance Appraisal System”,

is hereby approved as a creditable study of project topic and has been
presented in satisfactory manner to warrant its acceptance as prerequisite
to the degree for which it has been submitted.

It is understood that by this approval, the undersigned do not necessarily

endorse any conclusion drawn or opinion expressed therein, but approve
the training report for the purpose for which it is submitted.

(Internal Examiner) (External Examiner)

 ACKNOWLEDGMENTS

Firstly, I take this opportunity to thank my faculty mentor Priti Nag,

Associate Professor, Adityapur Auto Cluster
, for his valuable guidance, closely supervising this work over with
helpful suggestions, which helped me to complete the report
properly and present. More importantly, her valuable advice and
support helped me to put some creative efforts on my summer
internship project. She has really been an inspiration and driving
force for me and constantly enriched my raw ideas with his vast
experience and knowledge. Specially, I would also like to give my
special thanks to my parents whose blessings and love enabled
me to complete this work properly as well.
 ABSTRACT

A performance appraisal system holds a paramount importance

within any organization as it serves as a comprehensive
framework for assessing, analysing, and managing the
performance of employees. This systematic process facilitates a
clear evaluation of an employee's contributions, achievements,
and areas for improvement, aligning individual goals with
organizational objectives. By providing structured feedback,
performance appraisal systems empower employees to
understand their strengths and weaknesses, enabling them to
enhance their skills and productivity. Moreover, these evaluations
serve as a basis for making informed decisions about promotions,
bonuses, training, and development opportunities. From an
organizational perspective, an effective performance appraisal
system aids in identifying high-performing individuals who can be
groomed for leadership roles, while also identifying areas where
the entire workforce might need further training or support.
Overall, a well-designed performance appraisal system
contributes to a motivated and engaged workforce, fosters
continuous improvement, and ensures that the organization is on
track to achieve its strategic goals.
 CONTENTS

Chapter No. Chapter Title Page No.

Chapter 1 Introduction 1.1 Introduction 8

1.1.1 Characteristics 8-9

Advantages of performance
1.1.2 appraisal 10

Disadvantages of performance
1.1.3 appraisal 11

1.1.4 Company Profile 12

1.1.5 Industry Profile 13-17
Objective Of The Study In
Chapter 2 Training 2.1 Autocluster 18

METHODS OF
2.2 PERFORMANCE APPRAISAL 18

2.3 REVIEW OF LITERATURE 18

DATA ANAYLISIS AND

Chapter 3 Business Analysis 3.1 INTERPRETATION 19-22
Chapter 4 Conclusions 24

Chapter 5 Suggestions 5.1 Suggestions to the Company 23

INTRODUCTION
Once the employee has been selected, a trained and motivated,
he is then appraised for his performance. Performance Appraisal
is the step where the management finds out how effective it has
been at hiring and placing employees. If any problems are
identified, steps are taken to communicate with the employee and
remedy them. “Performance Appraisal is a process of evaluating
an employee’s performance in terms of its requirements.”
Performance Appraisal can also be defined as “the process of
evaluating the performance and qualifications of the employees in
terms of the requirements of the job for which he is employed, for
purposes of administration including placement, selection for
promotions, providing financial rewards and other actions which
require differential treatment among the members of a group a
distinguished from actions affecting all members equally.”

CONCEPT OF PERFORMANCE APPRAISAL

Performance Appraisal is very important because it is an

opportunity for individuals and those who are concerned with their
performance, line managers having distinctive qualities of
particular person to involve in a dialogue about each employees’
performance and development and also support needed from the
managers. Performance appraisal helps to identify the strengths
and weakness of each individual employee, and develop
strategies for improvement and ensure that employees are
meeting the goals of the organisation.
 CHARACTERISTICS

 Performance Appraisal is a process.

 It is the systematic examination of the strengths and
weakness of an employee in terms of his job.
 is scientific and objective study. Formal procedures are used
in the study.
 It is an ongoing and continuous process wherein the
evaluations are arranged periodically according to a definite
plan.

 The main purpose of Performance Appraisal is to secure

information necessary for making objective and correct
decision an employees
 ADVANTAGES OF PERFORMANCE APPRAISAL

A systematic performance appraisal method helps the

managers/supervisors to correctly identify the performance of employees
and also highlight the areas they need improvement in.

It helps the management place the right employee for the right kind of
job. This is a win-win situation for both the employee and the
organization.

 Potential employees who have done some exceptional work are often
offered a promotion on the basis of the result of performance evaluation.

 This process is also effective in determining the effectiveness of the

training programs conducted by the organization for the employees. It
can show managers how much an employee has improved after the
training. This will give actionable insights to the managers on how to
improve the programs.

 It creates a competitive environment amongst the employees in a good

way. Employees try to improve their performance and get better scores
than their colleagues.

 Managers use this as a platform to get first-hand feedback from

employees to talk about their grievances and how to handle them.

 Keeping year on year record of appraisals gives managers a very good

idea what is the pattern of the growth rate of employees and which ones
have a declining rate and what actions need to be taken to improve it. It
 DISADVANTAGES OF PERFORMANCE APPRAISAL

 If the attributes being used in this method are not correctly defined the
data collected won’t be useful.
 Sometimes biases can be an issue in this system.
 Some objective factors can be vague and difficult to pin down. There
are no known scientific methods to measure that.
 Managers sometimes are not qualified enough to assess the abilities of
the employees, thus be detrimental to the growth of an employee.

OBJECTIVE OF THE STUDY IN AUTOCLUSTER

1. Understanding the process of performance appraisal in use at Auto
Cluster.
2. Understand the method of performance appraisal at Auto cluster.
3. Impact of 360 Degree Appraisal System.
4. Advantages of 360 Degree at Auto cluster.
5. Disadvantages of 360 Degree at Auto cluster.
 COMPANY PROFILE
Adityapur Auto Cluster a Company registered under the Companies Act, (AAC)-SPV formed by the
members of ASIA for implementation of IIUS Scheme of Govt. of India at adityapur, Jamshedpur.

Adityapur Auto Cluster came into existence to implement the project under IIUS, the members of
adityapur Small Industries Association (ASIA) formed a Special Purpose Vehicle (SPV) in the name of
adityapur Auto Infrastructure Company Limited, later on its name changed to “ADITYAPUR AUTO
CLUSTER” (AAC).

Purpose of AAC is to develop the Industrial Infrastructure facilities in Adityapur Industrial Area with
the help of financial assistance as non refundable grant from Government of India and Government of
Jharkhand with nominal investments by the local industrial units. Government of India through Ministry
of Commerce & Industries launched a Scheme called. INDUSTRIAL INFRASTRUCTURE
UPGRADATION SCHEME (IIUS) for development of Infrastructure of Industrial Area all over the
Country for the rapid development of economy. Under this Scheme, Government of India has provided a
grant of 75% of Total Project Cost or Rs.50.00 Crore, whichever is lower. Spread over 42 acres of land
which is provided by AIDA free of cost.

VISION

 To be highest service provider to industries and helping students to grab the opportunity.

MISION

 To be highest service provider to industries and helping students to grab the opportunity.  To develop
industrial education with professionalism to every student, and provide quality services with help of
services and R&D Team to industries.

VALUES MISSION VALUES

 Integrity

 Reusability

 Quality

 Trust

 Teamwork
 INDUSTRY PROFILE

Tool Room
VMC 5 up, Tools Re-Grinding & Re-Sharpening, Dies & Tool Manufacturing, MIG, ARC Welding, Fixture Manufacturing &
Design, Band Saw Cutting, Surface Grinding, Cylindrical Grinding, Convey Lathe, CNXC Turing.

Pedestal Grinder M/C

It is used for grind the tools with manually like drill bit, insert, and various types of tool room items.

Tool and Cutter Grinding M/C It

is used for re-grind the cutting tools for making a new cutting edge & flute. It is mostly used in industry for re- grinding & re-
sharpening.

Machine Bend Saw

It is used for cutting the raw material as per required size for making a tools & tool room item like fixture, die, jigs etc.
Surface Grinding Machine

To produce smooth finish on flat surfaces.

AMOUNT INVESTED IN DEVELOPMENT OF THESE FACILITIES

Development of HI Tech Lab - RS 40.63 Cr

Development of CETP & HWMF - RS 20.00 Cr
Development of Common Facilities - RS 5.00 Cr
Tentative project Cost -RS 65.63 Cr
INDUSTRY DOMAINS OR VERTICAL / TARGETED INDUSTRIES

 Automobile

 Sheet metal

 Heavy manufacturing

 Casting

 Forging

 Light & heavy fabricate

 Polymer component

 Machine
Metrology & Calibration

Mechanical Scope – Dimension (Length, Día, Vernier, Micrometre, Hole/Shaft Gauges, Thread Gauges, Fixture, Height
Gauge, Radius, Angle etc), Pressure (Industrial Pressure, Gauge Pressure, Pressure Switch, transmitter, Vacuum etc.), Mass
(Balance, Weight), Force (UTM, CTM, TTM), Hardness, Volumatic Instruments.

Thermal – Temp, Humidity

Electro Technical
 RESEARCH METHODOLOGY

TYPE OF RESEARCH

The project is based on Descriptive Research.

Sources OF Data collection

 Primary Data : Primary data is collected from trainees.

 Secondary data :Secondary data is a second hand data that is already collected and recorded.  Review of previous report
related to topic .

 Website of the company (www.adityaautocluster.com).

 Collected from newspaper, magazines, website and articles.

Sample Size : 50
Scope of the study

 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.

 Allow time for self-reflection, self-appraisal and personal goal setting

 DATA ANAYLISIS AND INTERPRETATION
Q1. Awareness of performance appraisal

OPTIO NO OF
NS Responses
YES 36
NO 14

Interpretation From the above pie chart, we conclude that maximum employees are aware of their performance appraisal
(72%) and 28% are not aware of performance appraisal. years of service below 2years 2% 2-5 years 14% 10 years and above
58% 5- 10 years 26%
Q2.

i interpretation From the above pie chart we conclude that the maximum year of service of the employees of AUTO
CLUSTER in ADITYAPUR is maximum between 5-10 years(i.e 54%) and minimum is below 2years (ie 4%).
No of responses superior 24% all of the above 48% peer 8% Subordinate manager 4% Self=appraisal 8% 8% superior peer
Subordinate Self=appraisal manager all of the above

Q.3 Who should do the appraisal?

options No of responses
Supervisor 12
Peer 04
Subordinate 04
Self-appraisal 04
Manager 02
All of the above 24
InterpretationFrom the above pie chart we conclude that the maximum employees (i.e 24%) want to get the appraisal
through superior, self-appraisal, consultant. Whereas none of them want to get it done from their peers and subordinates.

Q4.

OPTIONS NO OF RESPONSE
YES 37
 NO 5
SOME WHAT 8

InterpretationIf the process of appraisal does not lead to the improvement of the skills and proficiency of the employees,
the very purpose of appraisal becomes illogical. In the survey conducted it was observed that nearly 74 % of the
respondents agree that Performance Appraisal does leads to polishing the skills of the employees. Nearly 10% of the
respondents view that it does not serve this purpose and around 16% were not able to respond as to whether it serve any
such purposes or not.

Q5. Employee’s opinion as to the present appraisal system.

OPTIONS NO OF RESPONSES
FULLY SATISFIED 12
SATISFIED 22
CAN’T SAY 15
DISSATISFIED 1

INTERPRETATION

From the above pie chart we conclude that maximum employees are satisfied with thhe present appraisal system (44%) and
(2%) are dissatisfied.

Q6.How Performance Appraisal affects the productivity of the employees.

MOTIVATED DEMOTIVATED
+FEEDBACK 38
-FEEDBACK 12 28
NEUTRAL 24 5

INTERPRETATION

POSITIVE FEEDBACK : From the above chart we conclude that the affect of
performance appraisal with a positive feedback and motivated results leads to
maximum productivity of employees.(76%)

Negative feedback :Giving negative feedback with demotivating results leads to

minimum productivity of employees.(56%)

Neutral Feedback :Giving a neutral feedback with motivating results leads to

average productivity of employees (48%) whereas only a few leads to low
productivity with demotivating results (10%).
PARAMETER ON WHICH PERFORMANCE APPRAISAL IS
CALCULATED

1.DISCIPLINE
2.TEAMWORK
3.QUALITY OF WORK
4.PUNCTUALITY
5.COMMUNICATION
FINDING AND RECOMMENDATIONS

1. Performance appraisal is done annually at ADITYAPUR AUTOCLUSTER .

2. Employees are rated on the bases of there Attendence , Behaviour at

work ,Discipline, Work completion.

3. Promotions and incentives are given to employees according to his or her

performance rating .

4. Per day job analysis is done to keep the daily work record of the employees.

5. Feedback of the employees is given by the Supervisor, subordinate , peers.

6. In Autocluster , they follow 360 degree appraial .

 CONCLUSION

In conclusion a performance appraisal is one of the most important factors in any

organization and also a great tool used to record productivity. Every organization
has to have goals and objectives established and every employee has to be
involved in the process. Also conducting a performance appraisal will improve
productivity and also the morale of the employees Appraisals are a positive way
for a manager to let the employees know how well they are performing the duties
that are assigned to them. Sometimes we get caught up in our job and do not
realize what all the company strives to do for employees. Whether the reward is
a lousy employee dinner and or a simple thank you card, your work is being
recognized.
INTERSHIP CERTIFICATE