Performance Appraisal in Tata Motors

Performance Appraisal in tata motors

Index
About Performance appraisal
Definition Meaning Objectives

Process of Performance Appraisal Methods / Techniques of Performance Appraisal

Traditional Modern

Issues in Performance Appraisal Advantages of Performance Appraisal Disadvantages of Performance Appraisal

TATA MOTORS
Tata Motors Limited is an Indian multinational automotive manufacturing company. It is headquartered in Mumbai, India and subsidiary of TATA group. Its products include passenger cars, trucks, vans and coaches. It is the world's eighteenth-largest motor vehicle manufacturing company, fourth-largest truck manufacturer and second-largest bus manufacturer by volume. Tata Motors was ranked as India's 3rd Most Reputed Car manufacturer in the Reputation Benchmark Study - Auto (Cars) Sector, launched in April 2012.

Performance appraisal
According to Newstrom, It is the process of evaluating

the performance of employees, sharing that information with them and searching for ways to improve their performance.

Meaning
Performance appraisal is the step where the management finds out how effective it has been at

hiring and placing employees .

A Performance appraisal is a process of

evaluating an employees performance of a job in terms of its requirements.

Purpose

Empowerment

Relationship

Flexibility Optimal Performance

Recognition and Rewards Morale

CHARACTERISTICS
1. Performance Appraisal is a process. 2. It is the systematic examination of the strengths and weakness of an employee in terms of his job. 3. It is scientific and objective study. Formal procedures are used in the study. 4. It is an ongoing and continuous process wherein the evaluations are arranged periodically according to a definite plan. 5. The main purpose of Performance Appraisal is to secure information necessary for making objective and correct decision an employee.

Objectives of Performance Appraisal

According to:
Employee concrete and tangible particulars about their work assessment of performance Organization measuring the efficiency maintaining organizational control.

Aims at:
Personal development work satisfaction involvement in the organization.

mutual goals of the employees & the organization. growth & development increase harmony & enhance effectiveness

Who are involved in performance appraisal?

The appraise
The appraiser

The hr department

Process
Setting performance standards

Taking corrective standards

Communicating standards

Discussing results

Measuring standards

Comparing standards

Methods of Performance Appraisal

Traditional Methods
1. Essay Appraisal 2. Graphic Rating scales 3. Forced choice rating 4. Field Review Method 5. Ranking Alternation ranking Paired-comparison ranking

Modern Methods
1. Assessment Center 2. Appraisal by Results or Management by Objectives

Essay Appraisal
The rater is asked to express the strong as well as weak points of the employees behavior. This technique is normally used with a combination of the graphic rating scale While preparing the essay on the employee, the rater considers the following factors: Job knowledge and potential of the employee Employees understanding of the companys programmes, policies, objectives, etc. The employees relations with co-workers and superior The employees general planning, organizing and controlling ability The attitudes and perceptions of the employee, in general.

Graphic or Linear Rating Scales

Attitude
0 5 10 15 20

No interest In work: consistent complainer

Careless: In-different Instructions

Interested in work: Accepts opinions & advice of others

10
Takes decisions promptly

Enthusiasti c about job & fellowworkers

Enthusiastic opinions & advice sought by others

Decisiveness
0
Slow to take decisions

5
Take decisions after careful consideration

15
Take decisions in consultation with others whose views he values

20
Take decisions without consultation

Forced choice method

Criteria 1.Regularity on the job Most Rating Least

Always regular Inform in advance for delay Never regular Remain absent Neither regular nor irregular

Field review method

Performance Dimension Leadership Communication Interpersonal skills Decision making subordinate ^ ^ ^ ^ ^ ^ ^ ^ peers superior customer ^

Technical skills
Motivation

^
^

^
^

^
^

MBO Process
Set organizational goals Defining performance target Performance review feedback

Performance Extremely good

Behavioral Anchored Rating Scales

Points Behavior 7 Can expect trainee to make valuable suggestions for increased sales and to have positive relationships with customers all over the country.

Good Above average Average Below average Poor

6 5 4 3 2

Can expect to initiate creative ideas for improved sales. Can expect to keep in touch with the customers throughout the year. Can manage, with difficulty, to deliver the goods in time. Can expect to unload the trucks when asked by the supervisor. Can expect to inform only a part of the customers. Can expect to take extended coffee breaks & roam around purposelessly.

Extremely poor 1

360 degree performance appraisal

Goal Setting S.M.A.R.T.* Goals Specific precise and detailed Measurable with criteria for determining progress and success Achievable attainable and action-oriented Realistic relevant and aligned Time-related grounded within a time-frame For this purpose, an online template is circulated in the organization. Superiors fill out that form keeping in view the performance of their subordin Superior is responsible for categorizing the employess in four category, namely A B C D This categorization is done both on the basis of performance and the goals they were given. This whole system is commonly known as

90 degree appraisal system also called 2 tiers.

Issues in appraisal system

Formal and informal What methods?
Whose performance?

When to evaluate?

Appraisal Design

Who are the raters?

What to evaluate?

What problems?

How to solve?

Advantages
provide a record of performance over a period of time.

Can be motivational with the support of a good reward and compensation

provide an opportunity for a manager to meet & discuss performance

Provide an opportunity for an employee to discuss issues and to clarify expectations

Provide the employee with feedback about their performance

Disadvantages
If not done appropriately, can be a negative experience. very time consuming, especially for a manager subject to rater errors & biases. If not done right can be a complete waste of time.

Can be stressful for all involved