performance appraisal

TRAINING REPORTOF

SUMMER TRAINING, UNDERTAKEN

AT

“FEDERAL MOGUL GOETZE INDIA LTD.,

BAHADURGARH, PATIALA”

SUBMITTED IN PARTIAL FULFILLMENT OF THE DEGREE

OF

MASTER OF BUSINESS ADMINISTRATION

Covering Letter

“PERFORMANCE APPRAISAL SYSTEM AND ITS EFFECTIVENESS IN

AN ORGANISATION”

http://www.federal-mogul.com/en/%00%E5%A1%B9%EF%92%81%E1%B4%BB%E4%A1%BF%E2%B2%AF%E5%B6%82%E8%97%84%E6%8C%A7%00%00%EA%AE%A5

COMPANY CERTIFICATE

Gian Jyoti Institute of Management & Technology


CERTIFICATE BY PROJECT GUIDE

This is to certify that the project entitled”PERFORMANCE APPRAISAL

SYSTEM AND ITS EFFECTIVENESS IN AN OGANISATION” submitted in the

partial fulfillment of the requirement for the degree of MBA of Punjab Technical

University, Jalandhar is bonafied research work carried out by …………………

under my supervision and no part of this research report has been submitted by any

other degree.

This assistance and help received during the course of this research has been fully

acknowledged.

Dated:



DECLARATION

I,……….. hereby declare that the project entitled “PERFORMANCE

APPRAISAL SYSTEM AND ITS EFFECTIVENESS IN AN

ORGANISATION ” assigned to me by FEDERAL MOGUL GOETZE

(INDIA) LTD, during my six weeks training for the partial fulfillment of M.B.A,

Degree from GYAN JYOTI INSTITUTE OF MANAGEMENT AND

TECHNOLOGY, MOHALI is the Original work done by me and the information

provided in the study is authentic to the best of my knowledge.

This study has not been submitted to any other institution or university for the award

of any other degree.



ACKNOWLEDGEMENT

“Thanking may just be a formality, but if done

inwardly, it surely reflects your noblest thoughts

within”.

-

Louis Philippe II.

This research project is an important part of my long journey in obtaining my degree

in MBA. I have not traveled in a vacuum in this journey. There are some people who

made this journey easier with words of encouragement and more intellectually

satisfying by offering different places to look to expand my theories and ideas. A

journey is easier when you travel together. Interdependence is certainly more valuable

than independence.

It is a pleasant aspect that I have now the opportunity to express my gratitude for all

of them.

The first person I would like to thank is Mr. V.K.Malhotra, Chief Welfare Officer,

Federal Mogul Goetz (India) limited, Patiala. I have known Mr. V.K.Malhotra as a

sympathetic and principle-centered person. His overly enthusiasm and integral view

on research and his mission for providing 'only high-quality work and not less', has

made a deep impression on me. I owe him lots of gratitude for having me shown this

way of research. He could not even realize how much I have learned from him. I am

really glad that he had accepted to be my guide for this project. He took me on the



process of learning and made himself available even through his very heavy work,

teaching schedule. Thank you doesn’t seem sufficient but it is said with appreciation

and respect.

I would like to thank my parents, who gave me the confidence and support to begin

my Master’s program in Business Administration. They challenged me to set my

benchmark even higher and to look for solutions to problems rather than focus on the

problem. I learned to believe in my future my work and myself. Thank you so much.

I have to put a special note of thanks to Ms.Paramjeet Sujlana, Project Guide,

GJIMT, Mohali, for her valuable suggestions and co-operation during the proceedings

of the project .I also have to thank Mr.G.S.Bedi, Chairman, GJIMT, Mohali, for him

being the director of the whole process.

Last but not the least, I am thankful to all the faculty members of FMGI, for

providing me with enough knowledge in the duration of my course, and all those

people who have been directly or indirectly been instrumental in the completion of the

project.

My deepest and sincere gratitude to all those who were directly or indirectly

responsible for inspiring and guiding this humble being.

THANK YOU ONE AND ALL.



CONTENTS

CHAPTER-1

INTRODUCTION TO THE COMPANY……………………………………………..……………13

1) FEDERAL MOGUL- BEGINNING OF THE INDUSTRY……………………………………14

2) FEDERAL MOGUL GOETZE (INDIA) LIMITED……………………………………………..15

3) COMPANYPROFILE………………………………………………………………………..…………..16

4) ORGANISATIONAL CHART…………………………………………………………………………17

5) PRODUCTION FACILITIES…………………………………………………………….……………18

6) MANAGEMENT………………………………………………………………………………………….19

7) FEDERAL MOGUL GOETZE (INDIA) LIMITED, PATIALA……………………………..20

8) QUALITY POLICY………………………………………………………………………………………22

9) POLICY…………………………………………………………………………………………..………...22

10)MISION OF THE COMPANY………………………………………………………………...........22

11)VISION OF THE COMPANY………………………………………………………………………..22

12)GLOBAL MARKET……………………………………………………………………………………..23(I) EXPORT

DESTINATIONS……………………………………………………………….23(II) COLLABORATIONS………………………………………………………………

………..2313)SWOT ANALYSIS………….

………………………………………………………………………...…2414)PRODUCT PROFILE OF

COMPANY……………………………………………………………..25



15)MAJOR CUSTOMERS OF THE COMPANY……………………………….…………………..29

16)LOCATION OF DEPOTS……………………………………………………………………………..30

17)MARKET SHARE OF PISTON MANUFACTURERS IN INDIA………………………….31

18)ORGANISATION OF FEDERAL MOGUL GOETZE (INDIA) LTD.,PATIALA

PLANT………………………………………………………………………………………..32(I) ORGANISATIONAL

GOALS………………………………………………………….…32(II) ORGANISATIONAL SET

UP……………………………………………………………33

CHAPTER-2

INTRODUCTION TO THE PROJECT………………………………………….……………….35

1) INTRODUCTION…………………………………………………………………………..………….…36

2) OBJECTIVES OF THE STUDY………………………………………………………………….…..37

3) RATIONALE OF THE STUDY……………………………………………………..……………..…37

4) LITERATURE REVIEW………………………………………………………………….……….…..38

5) THEORATICAL FRAMEWORK…..……………………………………………………………….40(I) PERFORMANCE APPRAISAL HISTORY………………………..

………………….40(II) DEFINITION AND CONCEPT…………………………………………….

………….…41(III) PROCESS OF PERFORMANCE

APPRAISAL…………………………………..…..42(IV) PRE- REQUISITES FOR SUCCESSFUL PERFORMANCE

APPRAISAL……………………………………………………………………………...........42(V) CHALLENGES IN PERFORMANCE

APPRAISAL………………………………..43(VI) MEASURING EMPLOYEE

PERFORMANCE………………………………………43(VII) METHODS AND TECHNIQUES OF PERFORMANCE

APPRAISAL……………………………………………………………………………………44(VIII) BENEFITS OF APPRAISAL

SYSTEM…………………………………………………47

CHAPTER-3



CURRENT GLOBAL TRENDS IN PERFORMANCE APPRAISALPROGRAM………………………………………………………………………………..……………48

1) 360 DEGREE APPRAISALS…………………………………….………………………….……..49

2) TEAM PERFORMANCE APPRAISAL……………………………………………………..…...50

3) RANK AND YANK STRATEGY………………………………………………………………..….50

CHAPTER-4

PERFORMANCE APPRAISAL AS MOTIVATION……………………………..….........51

CHAPTER-5

PERFORMANCE APPRAISAL SYSTEM AT FEDERAL MOGUL…………….……..53

1) POLICY…………………………………………….……………………………………………..……....54

2) PURPOSE OF PERFORMANCE APPRAISAL ACCORDING TO SURVEYAT

FMGI………………………………………………………………………………………….……….543) AIMS OF APPRAISAL AT

FMGI…………………………………………………………..……...554) PROCEDURE………………………………..…………………………………….

…………………….555) APPRAISAL FOR EMPLOYEES AT DIFFERENT LEVEL………………..

……………….566) PROBLEMS ENCOUNTERED DURING PERFORMANCE

APPRAISAL………………………………………………………………………………………………577) WORKING HOURS AT FEDERAL

MOGUL………………………………………………….58

CHAPTER-6

MEASURING EFFECTIVENESS OF APPRAISAL AT FEDERALMOGUL………………………………………………………………………………………………….59

1) PERFORMANCE APPRAISAL FEEDBACK SYSTEM AT FEDRALMOGUL……………………………………………………………………………………………....…..60

2) PERFORMANCE REWARD SYSTEM……………………………………………….………….61

3) LINKING PERFORMANCE APPRAISAL TO T&D…………………………………..…….62



CHAPTER-7

RESEARCH METHODOLOGY………………………………………………………………….63

1) INTRODUCTION…………………………………………………………………………………...…64

2) STATEMENT OF THE PROBLEM………………………………………….……………………64

3) CONCEPTUAL DEFINITION……………………………………………………………………..64

4) OPERATIONAL DEFINITION…………………………………………………………………...64

5) TYPE OF STUDY………………………………………………………………………………………64

6) METHODOLOGY………………………………………………………………………………….….64

7) SOURCE OF INFORMATION…………………………………………………………….….…..65

8) SAMPLING DESIGN……………………………………………………………...………………...65

9) SAMPLE SIZE……………………………………………………………………………………….…65

10)RESPONDENTS……………………………………………………………………..………………..66

11)TOOLS FOR DATA COLLECTION AND ANALYSIS………………………………………66

12)PRE- TESTING………………………………………………………...……………………….……..66

13)PILOT STUDY…………………………………………………………….…………………………….66

14)SURVEY…………………………………………………………………………………….………….…66

15)LIMITATIONS OF THE STUDY……………………………………………….…….………..….66

16)STUDY DESIGN…………………………………………………………………………….……….…67

CHAPTER-8

PROFILE OF THE WORKMEN………………………………………………………………...68

DISTRIBUTION OF RESPONDENTS BY(I) AGE……………………………………………..

……………………………………………………69(II) MARITAL STATUS………………………………..

…………………………………………….70(III) LOCATION…………………………………………………...

…………………………………….71



(IV) EDUCATIONAL QUALIFICATION……………………………………………………..…72

CHAPTER-9

DATA ANALYSIS AND INTERPRETATION………………………………………………..73

CHAPTER-10

RESEARCH FINDINGS………………………………………………………………………..….93

CHAPTER-11

SUGGESTIONS AND RECOMMENDATIONS……….…………………………………...96

CHAPTER-12

CONCLUSION………………………………………………………….…………………………….98

CHAPTER-13

BIBLIOGRAPHY……………………………………………………………………………………100

CHAPTER-14

QUESTIONAIRE……………………………………………………………………………………102

LIST OF TABLES AND ANNEXURES



CONTENT OF TABLE PAGE

DISTRIBUTION OF RESPONDENTS BY AGE 68

DISTRIBUTION OF RESPONDENTS BY MARITAL STATUS

69

DISTRIBUTION OF RESPONDENTS BY LOCATION 70

DISTRIBUTION OF RESPONDENTS BY EDUCATIONAL QUALIFICATION

71

SERVICE TENURE OF EMPLOYEES 73

SATISFACTION WITH THE PRESENT JOB 74

AWARENESS OF TECHNIQUE OF PERFORMANCE APPRAISAL

75

EMPLOYEES’ OPINION AS TO THE PRESENT APPRAISAL SYSTEM

76

EMPLOYEE PERCEPTION AS TO THE FREQUENCY OF APPRAISAL

77

APPRAISAL EFFECTING PRODUCTIVITY OF EMPLOYEES

78

WHO SHOULD DO THE APPRAISAL 79

DOES APPRAISAL HELP IN POLISHING SKILLS AND PERFORMANCE AREA

80

DOES PERSONAL BIAS CREEPS-IN WHILE APPRAISING AN EMPLOYEE

81

REVIEW OF THE CURRENT APPRAISAL TECHNIQUE

82



APPROPRIATE METHOD OF CONDUCTING THE PERFORMANCE APPRAISAL

83

PERFORMANCE APPRAISAL LEADS TO IDENTIFICATION OF HIDDEN POTENTIAL

84

SELF-APPRAISAL FOR WORKERS 85

OPINION ABOUT PERFORMANCE APPRAISAL 86

PERFORMANCE APPRAISAL IS IN UTILIZING THE OPTIMAL SKILLS, KNOWLEDGE AND ABILITIES OF THE EMPLOYEES

87

ESSENTIAL FOR PERFORMANCE APPRAISAL OF AN INDIVIDUAL

88

OPPORTUNITY GIVEN TO EMPLOYEES TO MAKE AN INPUT TO THEIR OWN PERFORMANCE APPRAISAL

89

ARE THE PERFORMANCE APPRAISAL REPORTS FREELY ACCESSIBLE AND COMMUNICATED TO YOUR EMPLOYEES

90



PREFACE

Excellence is an attitude that the whole of the human race is born with. It is the

environment that makes sure that whether the result of this attitude is visible or

otherwise. A well planned, properly executed and evaluated industrial training helps a

lot in inculcating a professional attitude. It provides a linkage between the student and

industry to develop an awareness of industrial approach to problem solving, based on

broad understanding of process and mode of operation of organization. During this

period, the students get the real, firsthand experience for working in the actual

environment.

The quest for knowledge can never end. The deeper we dig, the greater the

unexplored seems to be. No man can honestly say that he has learned all that this

world has to offer. We cannot achieve anything worthwhile in any field only on the

basis of theoretical knowledge from books.

Pragmatic knowledge obtained through working at the ground zero level and

gaining experience, in my view, is essential as theoretical one, if not more. In order to

achieve tangible, positive and concrete results, the classroom knowledge need to be

effectively wedded to the realities of the situation existing outside the classroom.

Theoretical knowledge is of no use without practical one.

This report pertains to Summer Training in partial fulfillment of my degree of M.B.A.

I had the opportunity to have a real experience on my venture, which has increased

my sphere of knowledge to a great extent.



INTRODUCTION TO

THE COMPANY



BEGINNING OF THE INDUSTRY

Federal-Mogul Corporation is an innovative and diversified $6.9 billion global supplier of quality products, trusted brands and creative solutions to manufacturers of automotive, light commercial, heavy-duty and off-highway vehicles, as well as in power generation, aerospace, marine, rail and industrial. The 40,000 people of Federal-Mogul located in 36 countries drive excellence in all they do.

Our globally-networked engineering and technical centers in the U.S., Europe and Asia enable us to bring to our customers breakthroughs in advanced technology and innovation.

We are a premier supplier of products, services and solutions to original equipment manufacturers that use our quality components in their vehicles and automotive systems, and to aftermarket customers who sell our world renowned brand-name in replacement parts through repair shops and retail outlets. We partner with a global network of suppliers whose commitment to excellence and on-time delivery is crucial to our success.

For more than a century, we have developed the innovative products our customers need to produce the next generation of vehicles. Now, as we write the history of our next 100 years, we continue to build on our position status as a market leader in



product and service solutions to set ever higher standards and continually exceed customer, shareholder and employee expectations.

FEDERAL-MOGUL GOETZE (INDIA) LIMITED

Registered & Corporate Office: A - 26/3 Mohan Co-operative Industrial Estate New Delhi - 110044 Tel: 41497600

Business Group: Nanda Group

Industry Type: Auto Ancl - Engine Parts

Manufacturer of world-class pistons, piston rings, sintered parts and cylinder liners covering a wide range of applications including two/three-wheelers, cars, SUVs, tractors, light commercial vehicles, heavy commercial vehicles, stationary engines and high output locomotive diesel engines.

Widest range of piston rings and pistons varying from 30mm to 300mm diameter.

The most modern production facilities at Bangalore, Patiala and Bhiwadi are certified TS 16949, ISO14001 and OHSAS 18001.

Market leaders both in OEM and aftermarket. Exports to many countries.



Goetze and Goetze Brico provide leading-edge technologies and competitive solutions for original equipment manufacturers and the automotive aftermarket.

COMPANY PROFILE

Federal-Mogul Goetze (India) Limited was established in 1954 as a joint venture with Goetze-Werke of Germany. Goetze-Werke of Germany is now owned by Federal-Mogul Corporation, a $6.3 billion global company and one of the leading manufacturers of automotive components in the world. Federal-Mogul Goetze (India) Limited is the largest manufacturer of pistons and piston rings in India.

1954 Incorporated as a joint venture with Goetze werke.

1957 Piston ring and liner production Patiala.

1958 Piston production as Escorts (automotive division)(Collaboration: MAHLE) Patiala.

1960 Cast iron/forged piston production started Patiala.

1968 Pins/rings carrier production started Patiala.

1977 New production plant installed in Bangalore

1982 Steel rings/large bore locomotive pistons Bangalore

1985 Light alloy products Patiala.

1989 Auto thermic piston production Bangalore

1990 Moly coated/IKA/chrome oil rings Patiala

1994 Composite pistons/new ring foundry Bangalore.

1996 Escorts (automotive division) hived off into joint venture with m/s Mahle, Germany.

1997 Goetze TP (India) ltd. set up for manufacture of steel rings.

2000 Merger of FEDERAL-MOGUL sintered products ltd. With Goetze (India) ltd.

2003 Merger of Escorts pistons activities with Goetze (India) ltd.

2004 Introduction of chrome-ceramic rings.



2004 Technical collaboration for pistons with Federal-Mogul Corporation

2006 Majority stake holding acquisition by Federal-Mogul Corporation

2006 Name changed "Goetze (India) Limited" to "Federal-Mogul Goetze (India) Limited"

ORGANIZATION CHART



PRODUCTION FACILITIES



MANAGEMENT

BOARD OF DIRECTORS

Designation Name Chairman & Director Mr. K.N. Subramaniam Managing Director & President Mr. Jean de Montlaur Whole Time Director & CFO Mr. Rustin Ray Murdock Director Mr. Rainer Jueckstock Director Mr. Mukul Gupta

CORPORATE LEADERS

Whole Time Director & CFO Mr. Rustin Ray Murdock

Executive Director - Operations Mr. Andreas Kolf

Financial Controller & Company Secretary Mr. Rajan Luthra

Head - Information Systems Mr. Peter Miller

Head – AE + R&D Mr. SGP Naidu

Head - Quality Mr. Rajesh Sinha

Head - Original Equip. Sales Mr. Mahesh Joshi



FEDERAL MOGUL GOETZE (INDIA) LTD. BAHADURGARH, PATIALA

Goetze (I) Ltd., Bahadurgarh, Patiala was set up in 1954 with the collaboration of M/s. Goetze Werke, Germany which started its production of Piston Rings for automobile industry in 1957. The plant is situated at Bahadurgarh, about 10 kms. From Patiala on the Patiala-Rajpura Road.

Considering the need of complete Piston assembly, Escorts Ltd. ventured into manufacturing of Pistons in 1958 with the collaboration of M/s. Mahle GmbH, Germany, which delivered the Indian automobile industry its Pistons in 1960.

Escorts entered in collaboration with M/s. SUKO GmbH, Germany for Piston Rings in 1967 and manufacturing started in 1968. To meet the increasing demand of market, in 1977, a parallel unit for manufacturing Pistons and Piston Pins was set up in Bangalore.

From 1 October 1996, Escorts Ltd. entered into joint venture with M/s. Mahle GmbH, Germany with the formation of the new company Escorts Mahle Ltd. in 1998, Goetze also became a part of Federal Mogul, a well-known group of USA. In June 2000, both Escorts Mahle Ltd. and Goetze have become QS-9000 certified companies.



The present capacity of the plant is 285.09 lacs nos. Piston Rings and 52.68 lac nos. Pistons (on 302 working days). The total capital employed as on 31 March 2004 is 134.46 crores in Ring Activity and Piston Activity. The workforce including managers and supervisors is 1131 nos. in Ring Activity and 1304 in Piston Activity as on 31 March 2004. The turnover of the Patiala Plants is 159 crores excluding Excise (combined in Ring Activity and Piston Activity) as on 31 March 2004.

Manufacturing Facilities:

The Patiala plant is located in the north of India about 250 km from the capital - New Delhi. It is connected by road and rail routes. This plant manufactures a wide range of pistons, piston rings, cylinder liners and light alloy castings

Campus Manager: Mr. Sunit Kapur Factory: Rajpura Road, Bahadurgarh,

Patiala-147001 India

Phone Number: 91-175-2381441 to 46 Fax Number: 91-175-2381406 E-mail: [email protected] Website:

http://federalmogulgoetzeindia.net/web/index.htm


mailto:[email protected]

http://federalmogulgoetzeindia.net/web/index.htm


QUALITY POLICY

FEDERAL MOGUL GOETZE (INDIA) LIMITED commits itself to leadership in national market for all its products and ensuring total customers’ satisfaction highest in industry. It commits to develop and build an image in the international market to

achieve a sustained annual growth in exports.

POLICY

We shall continue to manufacture all our products in conformity with accepted international norms/ standards.

We shall also continue to retain our leadership in development of products through technical know-how from our Collaborators and in-house developments. Consistent

development of human resources through training at all levels will be our major thrust area.

MR.CHARLES B.GRANT

MISSION OF THE COMPANY



“Steadily moving towards leadership with piston with vision strategy seeing it as the best way to leaders in business”

VISION OF THE COMPANY

“To be one of the worlds leading automotive solutions provider”

GLOBAL MARKET

FMGI has the distinction of pioneering exports and collaborations with following countries:

EXPORT DESTINATION Dubai

Bangladesh

Singapore

Egypt

Mauritius

U.S.A

Germany

Nepal

Sri Lanka

Uganda

COLLABORATIONS

A. GERMANY

Faun

Class

B. JAPAN

Yamaha

Kayaka

C. UK

JCB (Goetze)

Ford

D. USA



HUGHES

E. FRANCE

Bosch

SWOT ANALYSIS

STRENGTH

Latest technology

Established product

Established market

Strong finance

Experienced and committed personnel.

95 % capacity utilization.

State of the art quality assurance.

Foreign collaboration.

Stock of raw materials for 5-6 months.

Decades of experience

WEAKNESS

Raw material prices are on the increase.

Many types of machinery have become obsolete.

The operating expenses are on the higher side.

OPPORTUNITIES

Expanding exports.

Availability of cheap labor.

Forward as well as backward integration.

THREAT

Growing competition from foreign brands.

Rising prices of raw materials.



PRODUCT PROFILE

Federal Mogul Goetze (I) Limited manufactures wide range of Liners, Brackets, Shock Absorber, Gudgeon Pins, Light Alloy casting & Sintered Products.

Piston, Piston rings, Piston Pins, Cylinder blocks, Cylinder Liners, Brackets, Shock Absorber, Gudgeon Pins, Light Alloy casting & Sintered Products.

PISTONS

Federal-Mogul Goetze India has state-of-the-art test bed facilities, design facilities for products and dies and tooling with CAD/PRO-E.

Production Capacity: 13 million pistons per annum

Product Range: 30 mm to 300 mm diameter



Applications: Bi-wheelers,

Cars,

SUVs,

Tractors,

Heavy commercial vehicles,

Heavy output locomotive diesel engines,

Stationary engine

Products suitable for 4 stroke engines

2 stroke engines

Gasoline engines

PISTON RINGS

Goetze piston rings of OEMs and Aftermarket in India have state-of-the-art design facilities for products, tooling with CAD/PRO-E/GLIDE SOFT and test bed facilities.

Federal-Mogul Goetze India is dedicated to developing new technologies and continuously improving its products.

Production Capacity: 55 million rings per annum

Product Range: 30mm to 300mm diameter

Applications: Bi-wheelers,

Cars,



SUVs,

Tractors,

Heavy commercial vehicles,

Heavy output locomotive diesel engines,

Stationary engine

TX Type Expander & Cr Plated Rails Chrome Plated Ring

Coating on Running Surface: Chrome ceramic plated rings (CKS)

Molybdenum coated rings

Plasma filled rings

Semi-inlaid rings

Ferrox filled rings

Features: Thin rings made from SG iron

Asymmetric profile rings

Specially honed chrome rings

Lower sharp edge rings

Reverse torsion rings

Conformable chrome oil rings

Keystone

Interrupted cut

Narrow land

CYLINDER LINERS



Federal-Mogul Goetze India manufactures wet and dry cylinder liners with honing and sleeves for bi-wheeler applications for its quality conscious customers.

Production Capacity: 0.5 million liners per annum

Product Range: 50 mm to 120 mm internal diameter

Applications: Bi-wheelers

Cars

Tractors

Light commercial vehicles

Heavy commercial vehicles

Stationary engines

Features: Thin-walled

Plateau honed

With and without flanges

Coating: Phosphating

METAL CASTINGS



Federal-Mogul Goetze (India) Ltd. makes a wide variety of light metal castings, including cylinder blocks; cylinder heads for single cylinder engines; and aluminum tube castings and aluminum crown handles for motorcycles.

MAJOR CUSTOMERS OF THE COMPANY

PASSENGER CARS & JEEPS

o Hindustan Motors Ltd.

o Premier Automobiles Ltd.

o Mahindra & Mahindra Ltd.

o Maruti Udyog Ltd.

o Telco

BI-WHEELERS

o Bajaj Auto Ltd.

o Escorts Yamaha Ltd.

o Kinetic Engineering Ltd.

o TVS Suzuki Ltd.

o Majestic Auto Ltd.

o Scooters India Ltd.

o Ideal Jawa (I) Ltd.

o Lohia Machines Ltd.



TRACTORS

o Eicher Tractors Ltd.

o Mahindra & Mahindra Ltd.

o Escorts Ltd. (TD)

o Escorts Ltd. (Farmtrac Division)

o HMT Ltd.

COMMERCIAL VEHICLES (LCV’s & MCV’s)

o Telco

DEFENCE

o Vehicles Factory, Jabalpur

COMPRESSORS

o Telco

STATIONERY ENGINES

o Kirloskar Oil Engines Ltd.

LOCATION OF DEPOTS



MARKET SHARE OF PISTON MANUFACTURERS IN INDIA

Company Name Market Share (%)

Goetze 36.5

Perfect Circle 12.0

IP Ring 16.5

Shriram Piston 22.5

SAMKRG Piston 9.0

Menon Piston 3.5



ORGANISATION OF FEDERAL MOGUL GOETZE (INDIA) LTD.

ORGANISATION GOALS

The company has laid down for itself goal of improving the “value” to the customers through:

1. LEADERSHIP: To maintain leadership in following categories

Market share: to maintain its status as brand leaders in the country for Piston and Piston Pins.



Product Development: To develop Piston and Piston Pins for all new applications as identified.

Technology: modernization and up gradation of technology to the latest improvements to meet customer requirements.

2. CUSTOMER SATISFACTION:

It shall strive to achieve customer satisfaction rating more than 90%.

3. TECHNICAL REQUIREMENT:

Products are manufactured as per specifications based on DIN / JIS / IS / MAHLE NORMS / SUKO NORMS as also against customers specific requirements.

4. QUALITY:

To improve quality consistently through quality assurance and process control.

5. DELIVERY:

To strive to achieve 100% on time delivery as per customer requirements

6. ENVIRONMENT AND SAFETY:

FMGI is fully aware of its environment and social responsibilities. To keep the environment healthy, several measures like smoke precipitators, effluent treatment plant, plantation programs etc. have been adopted. Pollution control methods adopted by the company have been approved by the Central Govt. Periodic checks and regular training is conducted to ensure safety.

7. MEDICAL FACILITIES:

Company takes a lot of interest in the extra curricular activities like medical programs and rural development programs etc. The company has its own medical centre as well as a heart institute and research centre, where employees get treatment on reimbursement basis

ORGANISATION SET UP

The organizational set up of the following departments is studied in detail:

1. HR Department

2. Finance Department

3. Purchase and Store Department

4. Production Department



1. HR DEPARTMENT

HR department advises the management on all matters relating to HR administration. The top management takes into account its advice before arriving at final decisions on human resources and administrative matters. HR Policies in FEDERAL MOGUL GOETZE (INDIA) LIMITED have been divided into three parts:

a. HR FUNCTIONS to encourage the adoption and utilization of latest methods and techniques in areas of manpower planning and development and keeping avenues of promotion open to employees.

b. PROVISION OF COMMUNICATION, TRAINING AND WELFARE MEASURES, EMPLOYEE COMMUNICATION so that employees contributes their best to company’s objectives and also get opportunities for advancement and self-development.

c. INDUSTRIAL RELATIONS between employer and employee so as to promote satisfactory relations by providing channels for upward and downward communication and establishing systematic procedure for redress.

2. FINANCE DEPARTMENT

The realization of cash for the purpose of raw materials components and spares to pay wages and salaries to incur day to day expenses and overhead costs, to meet selling costs to provide credit facilities to customers and to maintain inventories is also the function of this department.

The formulation of policies with regard to profitability risk and liquidity, decisions about comparison and level of current assets and liabilities, formulation of production policy to keep the production steady by accumulating inventories, formulation and execution of credit policy is also the function of Finance Department.

It deals with determination of monthly wages, salaries of employees, fringe benefits of retirement, provident funds deduction, incentives, bonus and all the rewards, which the employees get for rendering their services to the company

3. PURHCASE AND STORE DEPARTMENT

Purchase and Store are two Departments, which go hand in hand. It is very essential that there should be proper synchronization between Purchase Department and Store Department.

In GOETZE (INDIA) LIMITED, the main responsibility of Purchase Department is to receive orders from other Departments, do the market survey, list the potential sellers and the rates, choose the best and go ahead with purchase. The purchase order is placed only with approved contractors. The Purchase Department scrutinize the following aspects:



a. Quality and Technical specifications

b. Delivery

c. Prices

Stores deal with an array of material, which can be divided into:

a. Raw materials

b. Components

c. Standard items or patent items

4. PRODUCTION DEPARTMENT The Department is responsible for production of various items fixed on basis of production budget, which includes:

a. Raw material budget

b. Labor budget

c. Plant utilization budget

GOETZE (INDIA) LIMITED turns out a wide variety of Piston Rings for Bi-Wheelers, Heavy Light Commercial Vehicles and Motor Cars etc. The Company has maintained steady growth in Piston Rings in view of ready acceptability of its products. Form modes production of 22517 rings in 1957 it touched a figure of 24 million in 2003-04.



INTRODUCTION TO

THE PROJECT

INTRODUCTION



Down the ages in some or the other form Performance Appraisal has always been in vogue in mundane forms and features. Even today in the era of globalization Performance Appraisal has become very important and a dire necessity for the employees, both in the private as well as public sector organizations. This is basically a process which evaluates the performance of an employee from time to time. There are various parameters or yardsticks to measure the efficiency and capabilities of the employee and his dedication towards the organization.

We particularly chose this company also because we happen to know people who work for the organization and can effectively help us in getting meaningful information. Federal Mogul has come a long way as a huge organization, a trend-setter. So our field of interest for research was Federal Mogul Goetze (India) limited, Patiala

Performance Appraisal has different measures to judge the capabilities and efficiency of an individual in an organization- how far the targets have been achieved, how has his performance been! It plays a very important role in their analysis as it keeps the employees motivated towards their jobs. This assessment also helps in the overall growth of the organization. So Performance Appraisal today plays a very important role in keeping a track of various employees for different kinds of jobs in the organization.

OBJECTIVES OF THE STUDY



The objectives of present study are as follows:

To study the current performance appraisal system of the organization and identify the gaps between the current state and the desired-in-state

To study the implications of an effective performance appraisal system on the

productivity of employees and the organizational performance as a whole.

To study the strengthening the relationship and communication between superior subordinates and management – employees.

To take the response of employees towards the Performance Appraisal

activities carried on upon them and to study the implications of an effective

performance appraisal system on the productivity of employees

To analyze the employee expectations and responsibilities towards the organisation.

RATIONALE OF THE STUDY

Performance Appraisal is the important aspect in the organization to evaluate the employee’s performance. It helps in understanding the employees work culture, involvement, and satisfaction. It helps the organization in deciding employee’s promotion, transfer, incentives, and pay increase.

Human Resource (or personnel) management, in the sense of getting things done through people, is an essential part of every manager’s responsibility, but many organizations find it advantageous to establish a specialist division to provide an expert service dedicated to ensuring that the human resource function is performed efficiently.

“People are our most valuable asset” is a cliché, which no member of any senior management team would disagree with. Yet, the reality for many organizations are that their people remain under valued, under trained and under utilized.

Performance Appraisal is the process of assessing the performance and progress of an employee or a group of employees on a given job and his / their potential for future development. It consists of all formal procedures used in the working organizations to evaluate personalities, contributions and potentials of employees.



LITERATURE REVIEW

A literature review is a body of text that aims to review the critical points of current knowledge on a particular topic. Literature reviews are secondary sources, and as such, do not report any new or original experimental work.

Most often associated with science-oriented literature, such as a thesis, the literature review usually precedes a research proposal, methodology and results section. Its ultimate goal is to bring the reader up to date with current literature on a topic and forms the basis for another goal, such as future research that may be needed in the area.

A good literature review is characterized by: a logical flow of ideas; current and relevant references with consistent, appropriate referencing style; proper use of terminology; and an unbiased and comprehensive view of the previous research on the topic.

According to Cooper (1988) "a literature review uses as its database reports of primary or original scholarship, and does not report new primary scholarship itself. The primary reports used in the literature may be verbal, but in the vast majority of cases reports are written documents. The types of scholarship may be empirical, theoretical, critical/analytic, or methodological in nature. Second a literature review seeks to describe, summarize, evaluate, clarify and/or integrate the content of primary reports".

Basics of Conducting Employee Performance AppraisalsWritten by Carter McNamara, MBA, PhD, Authenticity Consulting, LLC. Copyright 1997-2008.Adapted from the Field Guide to Leadership and Supervision.

Yearly performance reviews are critical. Organization's are hard pressed to find good reasons why they can't dedicate an hour-long meeting once a year to ensure the mutual needs of the employee and organization are being met. Performance reviews help supervisors feel more honest in their relationships with their subordinates and feel better about themselves in their supervisor roles. Subordinates are assured clear understanding of what's expected from them, their own personal strengths and areas for development and a solid sense of their relationship with their supervisor. Avoiding performance issues ultimately decreases morale, decreases credibility of management, decreases the organization's overall effectiveness and wastes more of management's time to do what isn't being done properly.

Bannister, B.D. & Balkin, D.B. (1990)

Performance evaluation and compensation feedback


http://www.authenticityconsulting.com/pubs/Mgmnt/MS_pubs.htm

http://www.authenticityconsulting.com/

http://en.wikipedia.org/wiki/Terminology

http://en.wikipedia.org/wiki/Methodology

http://en.wikipedia.org/wiki/Thesis

http://en.wikipedia.org/wiki/Secondary_source

http://en.wikipedia.org/wiki/Knowledge


messages: an integrated model, Journal of Occupational Psychology , Vol 63, June, British Psychological Society.

Research (Bannister & Balkin, 1990) has reported that appraisees seem to have greater acceptance of the appraisal process, and feel more satisfied with it, when the process is directly linked to rewards. Such findings are a serious challenge to those who feel that appraisal results and reward outcomes must be strictly isolated from each other.

There is also a group who argues that the evaluation of employees for reward purposes, and frank communication with them about their performance, are part of the basic responsibilities of management. The practice of not discussing reward issues while appraising performance is, say critics, based on inconsistent and muddled ideas of motivation.

Performance management By Robert Bacal

You can achieve performance levels once thought unattainableÐbut only when managers and workers establish clear lines of communication, and understand how their jobs contribute to the goals of both themselves and the organization. Performance Management is the comprehensive guidebook on how to establish a communication system to get top performance and value from each employee. It will show you how to conduct goals-focused performance planning meetings and performance appraisals and foster a true commitment to success within each employee. A meaningful tool for stimulating workplace cooperation, Performance Management will benefit the employee, the manager, and the organization itself.

Understanding performance appraisal: social, organizational, and goal-based ... By Kevin R. Murphy, Jeanette Cleveland

A social-psychological model of organizational appraisal processes which emphasizes the goals pursued by raters, ratees and other users of performance appraisal is described in this book. The authors suggest ways in which this goal-oriented perspective might be applied in developing, implementing and evaluating performance appraisal systems.

The model emphasizes the context in which appraisal occurs and takes as a starting point the assumption that many of the apparent shortcomings of performance are, in fact, sensible adaptations to the various requirements, pressures and demands of that context.


http://www.performance-appraisal.com/bannist.htm


The Social Context of Performance Appraisal: A Review and Framework for the Future

Paul E. Levy

Department of Psychology, The University of Akron, 290 East Buchtel Avenue, Akron, OH44325-4301, [email protected]

Jane R. Williams

Psychology Department, Indiana University-Purdue University Indianapolis, 402 N. Blackford St., Indianapolis, IN 46142, [email protected]

Performance appraisal research over the last 10 years has begun to examine the effects of the social context on the appraisal process. Drawing from previous theoretical work, we developed a model of this process and conducted a systematic review of the relevant research. This review of over 300 articles suggests that as a field we have become much more cognizant of the importance of the social context within which the performance appraisal process operates. First, research has broadened the traditional conceptualization of performance appraisal effectiveness to include and emphasize ratee reactions. Second, the influence that the feedback environment or feedback culture has on performance appraisal outcomes is an especially recent focus that seems to have both theoretical and applied implications. Finally, there appears to be a reasonably large set of distal variables such as technology, HR strategies, and economic conditions that are potentially important for understanding the appraisal process, but which have received very little research attention. We believe that the focus of recent performance appraisal research has widespread implications ranging from theory development and enhancement to practical application.

Journal of Management, Vol. 30, No. 6, 881-905 (2004)DOI: 10.1016/j.jm.2004.06.005





THEORETICAL FRAME WORK

PERFORMANCE APPRAISAL

HISTORY:

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 resources 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!There is"... 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 the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgments 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. Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed.

For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance.These observations were confirmed in empirical studies. Pay rates were important,



yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence.

As a result, the traditional emphasis on reward outcomes was progressively rejected. In the 1950s in the United States, the potential usefulness of appraisal as tool for motivation and development was gradually recognized. The general model of performance appraisal, as it is known today, began from that time.

DEFINATION AND CONCEPT:

Performance Appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does.

According to Flippo, a prominent personality in the field of Human resources, “performance appraisal is the systematic, periodic and an impartial rating of an employee’s excellence in the matters pertaining to his present job and his potential for a better job."

Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning for his future.It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals.

By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the management’s interest in the progress of the employees.



PROCESS OF PERFORMANCE APPRAISAL:

PRE-REQUISITES FOR SUCCESSFUL PERFORMANCE APPRAISAL:

The essentials of an effective performance system are as follows:

1) Documentation – means continuous noting and documenting the performance. It also helps the evaluators to give a proof and the basis of their ratings. 2) Standards / Goals – the standards set should be clear, easy to understand, achievable, motivating, time bound and measurable. 3) Practical and simple format - The appraisal format should be simple, clear, fair and objective. 4) Evaluation technique – An appropriate evaluation technique should be selected; the appraisal system should be performance based and uniform. 5) Communication – Communication is an indispensable part of the performance appraisal process. The desired behavior or the expected results should be communicated to the employees as well as the evaluators.



6) Feedback – The purpose of the feedback should be developmental rather than judgmental. 7) Personal Bias – Interpersonal relationships can influence the evaluation and the decisions in the performance appraisal process.

CHALLENGES IN PERFORMANCE APPRAISAL:

In order to make a performance appraisal system effective and successful, an organization comes across various challenges and problems. The main challenges involved in the performance appraisal process are:

1) Determining the evaluation criteria-For the purpose of evaluation, the criteria selected should be in quantifiable or measurable terms 2) Create a rating instrument- The focus of the system should be on the development of the employees of the organization.3) Lack of competence-Top management should choose the raters or the evaluators carefully. They should have the required expertise and the knowledge to decide the criteria accurately. 4) Errors in rating and evaluation-The rater should exercise objectivity and fairness in evaluating and rating the performance of the employees 5) Resistance-The appraisal process may face resistance from the employees and the trade unions for the fear of negative ratings. Therefore, the employees should be communicated and clearly explained the purpose as well the process of appraisal.

MEASURING EMPLOYEE PERFORMANCE:

The most difficult part of the performance appraisal process is to accurately and objectively measure the employee performance. Measuring the performance covers the evaluation of the main tasks completed and the accomplishments of the employee in a given time period in comparison with the goals set at the beginning of the period. Measuring employee performance is the basis of the Performance appraisal processes and performance management.

For the purpose of measuring employee performance, different input forms can be used for taking the feedback from the various sources like the superior, peers, customers, vendors and the employee himself. Some suggestions and tips for measuring employee performance are:

Clearly define and develop the employee plans of action (performance) with their role, duties and responsibilities.

Organizational outcomes or the achievement of organizational goals should also be kept in mind.

Focus on accomplishments and results rather than on activities.



Also take note of the skills, knowledge and competencies and behaviors of the employees that help the organization to achieve its goals.

If possible, collect the feedback about the performance of the employees through multi-point feedback and self-assessments.

Financial measures like the return on investment, the market share, the profit generated by the performance of the team should also be considered.

For an organization to be an effective organization and to achieve its goals, it is very important to monitor or measure its’ and its employee performance on a regular basis. Effective monitoring and measuring also includes providing timely feedback and reviews to employees for their work and performance according to the pre-determined goals and standards and solving the problems faced. Timely recognition of the accomplishments also motivates the employees and help to improve the performance.

Measuring the performance of the employees based only on one or some factors can provide with inaccurate results and leave a bad impression on the employees as well as the organization. For example: By measuring only the activities in employee’s performance, an organization might rate most of its employees as outstanding, even when the organization as a whole might have failed to meet its goals and objectives. Therefore, a balanced set of measures (commonly known as balanced scorecard) should be used for measuring the performance of the employee.

METHODS AND TECHNIQUES OF PERFORMANCE APPRAISAL :

INDIVIDUAL EVALUATION METHOD:

1. CONFIDENTIAL REPORT: mostly used in govt. organizations. It is a detailed report prepared by the immediate boss. No feedback is given to the employee.



2. ESSAY APPRAISAL METHOD: This traditional form of appraisal, also known as “Free Form method” involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information.

3. CRITICAL INCIDENTS METHODS: In this method of Performance Appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points.

4. CHECKLIST METHOD: The rater is given a checklist of the descriptions of the behavior of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.

5. GRAPHIC RATING SCALE: In this method, an employee’s quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on-the-job performance of the employees.

6. BARS (BEHAVIORALLY ANCHORED RATING SCALE) Step 1. Identify critical incidents Step 2. Select performance dimension Step 3. Retranslate the incidents Step 4. Assign scales to incidents Step 5. Develop final instrument

7. FORCED CHOICE METHOD: Focus of this method is to eliminate the rater from giving too high or too low

ratings to the employee. This method uses paired phrases that carry favorable or unfavorable credits. The rater is unaware of how the phrases are marked and therefore chooses what best describes the employee.

8. MANAGEMENT BY OBJECTIVES (MBO): This requires the management to set specific, measurable goals with each employee and then periodically discusses the performance towards these goals. Steps in MBO:



MULTIPLE- PERSON EVALUATION METHODS

9. STRAIGHT RANKING METHOD: This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation

10. PAIRED COMPARISON: A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings.

11. FORCED DISTRIBUTION: To eliminate the element of bias from the rater’s ratings, the evaluator is asked to distribute the employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion.

OTHER METHODS

12. GROUP APPRAISAL: An employee is appraised by a group of appraisers. Group consists of

immediate supervisor, other supervisors, HOD, manager etc. this group used any of the techniques mentioned above of appraising.

13. HUMAN RESOURCE ACCOUNTING (HRA): It is a sophisticated way of accounting for people as an organizational

resource. The value if an employee is increased when organizations invest in T&D. This technique is not fully developed.

14. FIELD REVIEW: In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective



subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors’ personal bias.

15. ASSESSMENT CENTRE: Individuals from various departments are brought together to spend 2-3 days

working on individual or group assignments similar to the ones they have handled. Observers then rank the performance of each and every participant. These centers are basically meant for evaluating the potential of candidates.

BENEFITS OF APPRAISAL SYSTEMBENEFITS TO THE APPRAISER

Improved performance of individual and department

Improved relationship

Identification of staff weakness

Identification of existing problem

Identification of departmental training needs

Identification of individual training needs

Identification of potential

Identification of own strength and weaknesses

Increased opportunity to communicate companies objective

BENEFITS TO THE APPRAISER

Opportunity to express own views

Opportunity to find about own strengths and weaknesses

Find out the areas in which to increase the delegation

Increased opportunity to praise and conduct

To demonstrate own managerial skills

BENEFITS TO THE ORGANISATION

Improved performance of individuals

Improved performance of department

Improved profitability and efficiency

Improved quality of production

Increased ability to evaluate value of training provided

Valid information relating to labour turnover

More accurate assessment of potential individuals and department

Able to adopt the short terms needs

Able to plan & adjust salary scales where appropriate



CURRENT

GLOBAL TRENDS

IN


PROGRAM



CURRENT GLOBAL TRENDS IN PERFORMANCE APPRAISAL PROGRAM:

The performance appraisal process has become the heart of the human resource management system in the organizations. Performance appraisal defines and measures the performance of the employees and the organization as a whole. It is a tool for accessing the performance of the organization.The important issues and points concerning performance appraisal in the present world are:

The focus of the performance appraisals is turning towards career development relying on the dialogues and discussions with the superiors.

Performance measuring, rating and review system have become more detailed, structured and person specific than before.

Performance related pay is being incorporated in the strategies used by the organizations.

Trend towards a 360-degree feedback system The problems in the implementation of the performance appraisal

processes are being anticipated and efforts are being made to overcome them.

In India, the performance appraisal processes are faced with a lot of obstacles, the most prominent being the lack of quantifiable indicators of the performance. GLOBAL TRENDS

The emergence of following concepts and the following trends related to Performance appraisal can be seen in the global scenario:

360 DEGREE APPRAISALS:

360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job. Organizations are increasingly using feedback from various sources such as peer input, customer feedback, and input from superiors. Different forms with different formats are being used to obtain the information regarding the employee performance.



TEAM PERFORMANCE APPRAISAL: According to a wall street journal headline, “Teams have become commonplace in U.S. Companies”. Most of the performance appraisal techniques are formulated with individuals in mind i.e. to measure and rate the performance of the individual employee. Therefore, with the number of teams increasing in the organizations, it becomes difficult to measure and appraise the performance of the team. The question is how to separate the performance of the team from the performance of the employees. A solution to this problem that is being adopted by the companies is to measure both the individual and the team performance. Sometimes, team based objectives are also included in the individual performance plans.

RANK AND YANK STRATEGY:

Also known as the “Up or out policy”, the rank and yank strategy refers to the performance appraisal model in which best-to-worst ranking methods are used to identify and separate the poor performers from the good performers. Then the action plans and the improvement opportunities of the poor performers are discussed and they are given to improve their performance in a given time period, after which the appropriate HR decisions are taken. Some of the organizations following this strategy are Ford, Microsoft and Sun Microsystems




AS

MOTIVATION



PERFORMANCE APPRAISAL AS MOTIVATION

Keeping in mind the growing attrition rates and the employee dissatisfaction among the employees, the HR professionals are approaching and using the performance appraisal as a fuel to motivate employees. The latest trend being followed by the HR professionals is to use the performance appraisal and review process as a motivating mechanism. Various surveys and studies have testified the relationship between performance review, pay and motivation.

One of the most motivating factors for the employees, in the performance appraisal processes is to receive a fair an accurate assessment of their performance. Inaccurate evaluation is one reason because of which most employees dread going through performance appraisals. An employee always expects his appraiser to recognize and appreciate his achievements, support him to overcome the problems and failures.

The discrepancies and the inaccuracies in the performance review can de motivate the employees, even if there has been an increase in the salary. Such inaccuracies can kill the innovating and risk taking enthusiasm and spirit in the employees. Similarly, inaccurate reviews with no hike in compensation can increase the attrition rate in the organization, forcing the employees to look out for other options.

An employee prefers an accurate performance review with no increase in the salary over inaccurate performance review with an increase in salary. Employees, who receive both accuracy and a pay increase during their performance review, are likely to be the most motivated. Therefore, performance appraisal (review and its consequence in the form of compensation adjustments) has the potential of motivating employees and increasing their job satisfaction.



PERFORMANCE APPRAISALSYSTEM

AT FEDERAL MOGUL



POLICY

A Well defined appraisal policy exists in FEDRAL MOGUL GOETZE INDIA. For both the workers & staff.

The objectives have been defined and the set objectives are:-

To overhaul and improvise the existing personnel policies and practices of the company, with the personnel policies and practices of the company, with personnel department as the critical initiating and coordinating factor, the heads of the department as the executing forces, and the top management as the spirit.

The second board objective of the document is to introduce value orientation in the company with the heads of department being the key inculcating forces of such values in their respective departments, so that the company, as a whole becomes an effective, productive as well as humane organization.

PURPOSE OF PERFORMANCE APPRAISAL ACCORDING TO SURVEY AT FEDERAL MOGUL

According to a recent survey, the percentage of employees of the FMGI using performance appraisal for the various purposes is as shown in the diagram below:

The most significant reasons of using Performance appraisal are:

Making payroll and compensation decisions – 80%



Training and development needs – 71%

Identifying the gaps in desired and actual performance and its cause – 76%

Deciding future goals and course of action – 42%

Promotions, demotions and transfers – 49%

Other purposes – 6% (including job analysis and providing superior support, assistance and counseling)

AIMS OF PERFORMANCE APPRAISAL AT FMGI:

Give feedback on performance to employees.

Identify employee training needs.

Document criteria used to allocate organizational rewards.

Form a basis for personnel decisions: salary 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.

PROCEDURE

Periodicity of appraisal will be half yearly for all categories of staff and annual for workers.

The performance appraisal from will be maintained by personnel department and it will be responsible for sending and collecting it timely.

The appraisal below second line in command will be done by heads of the department.

Executive director will be appraising the top category.

The objective and expectations should be clearly defined in the beginning of the year and well communicated to the appraisee.

The performance is based on factor analysis and appraises has to select the best suited in front of each anchor (activity) according to the performance of the appraisal based on the objective determined and norms set by the company.



For officer and above appraisal has to fill critical incident form. This form will be retained by the appraisal and he will make nothing of extra ordinary performance and not up to mark round the year. He will make the help of this data during appraising the appraise and while conducting the appraisal interview.

Heads of the department will be sending critical incident from of second line in command duly fulfilled to executive director for his reference.

Appraisal interview for officers and above will be conducted by the immediate appraiser/superior and feedback is to be given on their performance. Such appraisal interview would go a long way in motivating the subordinates effectively.

Periodic training is to be given to appraiser on appraising techniques orientation session are conducted for first line and second line for the following purpose:-

a) How to fill in initial incident method form.

b) How to apply/administer the appraisal form, recording twice a year.

c) How to conduct appraisal interview with the concerned subordinates/appraisees.

The personal departments will analysis the appraisal data submit is recommendation for necessary action as below.

a) Increments

b) Promotion

c) Training

d) Transfer

e) Counseling

f) Stoppage of increments

g) Stoppage of promotions

h) Termination

i) Any other

APPRAISAL FOR EMPLOYEES AT DIFFERENT LEVELS:Performance appraisal is important for employees at all levels throughout the organization. The parameters, the characteristics and the standards for evaluation may be different, but the fundamentals of performance appraisal are the same. But as the level of the employees’ increases, performance appraisal is more effectively used as the tools of managing performance. The general parameters for the measurement of employees’ performance are:

Speed i.e. process performance,



Accuracy and Productivity of each process,

PROBLEMS ENCOUNTERED DURING PERFORMANCE

APPRAISAL

Ineffective organizational policies

Judgment errors

First impressions

Halo effect

Horn effect

Leniency

Central tendency

Stereotyping

Recency effect

Poor appraisal forms

The rating scale may be vague and unclear

The form may ignore important aspects of job performance

The rating form may contain irrelevant dimensions

The forms may be too long and complex

Lack of rater preparedness

The rater may not be trained PA activities.

The rater might not be competent to do the evaluations



WORKING HOURS AT FEDERAL MOGUL

The factory runs round the clock in three shifts, namely- Morning, Afternoon and Night.

TIMINGS SHIFTS

6.30 a.m. To 2.30 p.m. Morning Shift

2.30 p.m. To 10.30 p.m. Afternoon Shift

10.30 p.m. to 6.30 a.m. Night Shift

However the Non-production department works in a General Shift.

(From 9 a.m. to 5 p.m.).



MEASURING

EFFECTIVENESS OF

APPRAISAL AT FEDERAL

MOGUL



PERFORMANCE APPRAISAL FEEDBACK SYSTEM AT FEDERAL MOGUL:

Performance so appraised should be communicated to the employee and comprehensive feedback must be given so as to suggest & explain the ways to improve the performance and appreciate good work. This feedback mechanism will work in the following manner:

1. Personal Counseling Sessions: Every employee will have counseling session with his team leader on the appraisal in presence of the PMS Facilitator. The appraisers will discuss the achievements and shortcomings of the appraisee. The team leader will appreciate the positive incidents and provide guidelines to improve the performance in the problem areas. Employee’s performance on each Performance Appraisal criteria will be discussed and explained to the employee. The preliminary ratings will be finalized at this stage but will not be revealed to the appraisee as the rating might change after the ranking meeting.

2. Improvement Statement: A written statement will be prepared by the technicians/ team members in consultation with the team leader & PMS Facilitator detailing how they intend to improve their performance in the next appraisal period. This improvement statement will be noted down in the space provided in the form.

3. Review Session: The review session will be attended by appraisee, the HR Manager and the Function Head. The HR Manager and the Function Head will briefly discuss the achievements and the shortcomings of the appraisee and will also discuss the special points raised in the ranking meeting, if any. Thereafter the ratings will be revealed to the appraisee and the form will be duly signed by all concerned. The purpose of this session is to reinforce the feedback given in the counseling session and to discuss things beyond performance appraisal. The ratings assigned in the ranking meeting will not be changed during this review. Once the Employee Satisfaction Survey has been instituted in the factory, its findings can also be discussed at this stage.

4. Dissatisfaction with Appraisal:



If any technicians/ team members is dissatisfied with his appraisal and has sufficient reason to believe that there is inaccuracy in the appraisal, he can take up the issue with manufacturing/production/HR manager.

PERFORMANCE REWARD SYSTEM

The compensation of the technicians/ team members will be linked to the performance by two components:

1. Individual Performance based wage increments2. Plant Productivity based bonus

1. PERFORMANCE BASED WAGE INCREMENT

The yearly wage increments will be dependent on the individual performance of the technicians/ team members. The wage increments will be decided as follows:

Decide Average Increment figure every year Decide Individual Increment based on normal curve

o 3 Bands of increments based on Performance Appraisal percentage

scoreo Top 15% - Middle 70% - Bottom 15%

Middle Band gets the pre decided average increment Top and bottom Bands get higher and lower increments respectively Overall decided average maintained

RationaleThe performance based wage increment is based on the following rationale:

Results in permanent change in Income Level – Strong Motivator Clear difference in pay level of consistent performers & non performers in long

run Helps recognize & retain the best talent

2. PRODUCTIVITY BONUS


Low Performers

High Performers

Average Performers


The second component of performance reward system, Productivity Bonus, will be linked to the overall plant performance. It will be decided as follows:

Flat rate of bonus for all technicians and team members on basis of Plant AU Certain minimum acceptable AU level will attract zero productivity bonus Every percentage point over such level leads to increasing productivity bonus

RationaleThe productivity bonus is based on the following rationale:

Links overall performance to reward Promotes overall teamwork Sets clear motivation for increasing productivity Peer Pressure – Performers will automatically check non performers

PERFORMANCE REWARD SYSTEM – SALIENT FEATURES Enhances individual performance

o Directly links Performance Appraisal results to Salary Structure

o Permanent Change

Enhances performance as a unit by linking AU to bonuso Promotes coordination and instills a sense of responsibility

o Temporary Chan

LINKING PERFORMANCE APPRAISAL TO T&D

The performance appraisal results so obtained will be used to determine the training and development needs of employees. The following three step process will be followed to ensure that Performance Appraisal results are actively linked with Training & Development:

1. The HR department will review the completed Performance Appraisal forms to filter out all forms where:

a. Overall Rating is “Below Expectation” and/orb. Rating in any functional or behavioral competency is “Below Expectation”

These shall be the employees who need training in various fields.

2. The forms so filtered out will then be analyzed to establish any possible trend in lack of competencies. If more than 10 people exhibit the lack of same competency, a mass training need exists. For example, if 13 people are scoring “Below Expectation” in the Making department, there exists a specific need for refresher training in the making concepts.



3. The list of the employees in need of training along with established trend, if any, will be forwarded to the Training & Development department for further action.



RESEARCHMETHODOLOGY

INTRODUCTION

The word research refers to finding the truth about something through a systematic study. Research may be done to -Gain familiarity with a phenomenon or to achieve new insights into it:-Portray accurately the characteristics of the particular individual, situation or a group:-Determination the frequency with which phenomenon occurs or with which it is associated with another:-Test a hypothesis of a casual relationship between variables

STATEMENT OF THE PROBLEM:

"Performance appraisal system and its effectiveness in an organization".

CONCEPTUAL DEFINITION:

Performance Appraisal is defined as the process of assessing the performance and



progress of an employee or a group of employees on a given job and his / their potential for future development. It consists of all formal procedures used in working Organizations and potential of employees

OPERATIONAL DEFINITION:

Performance Appraisal is the systematic, periodic and an important rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job.

TYPE OF STUDY:

The type of the study was descriptive in nature. Descriptive studies aim at portraying accurately the attitudes or views of a particular group of people towards any situation.

METHODOLOGY:

To fulfill any task, it is necessary to follow a systematic method. The methodology followed in this study is detailed here.



SOURCE OF INFORMATION:

The relevant data in the subject under study was collected from the following sources.

1. Primary data: These data were collected from the workmen of the company.

2. Secondary data: The secondary data was collected from journals, manuals and existing records of the company. Also number of books and papers on quality of work life were used.

SAMPLING DESIGN:

For the research, simple random sampling method was adopted.

SAMPLE SIZE:

All the employees in the organization are considered as universe. Hundred respondents were selected at random basis.



RESPONDENTS:

The respondents were the workmen of Federal Mogul Goetze (India) Ltd, Bahadurgarh, and Patiala.

TOOLS FOR DATA COLLECTION AND ANALYSIS :

The tool used for data collection was interview scheduled for workers (Questionnaire). The schedule was prepared to collect the data on areas, which affect quality of work life. The investigator conducted personal interview with all the respondents chosen as sample. The tools used for data analysis include diagrams like Pie diagram, bar diagram etc.

PRE- TESTING:

In order to understand the effectiveness of the questionnaire designed, a pre-test was conducted with five respondents. Based on the pre-test questionnaire was redrafted.

PILOT STUDY:

Pilot study was conducted in order to check the feasibility of the study and availability of data. During the pilot study it was evident that the workers were ready to give any information and they offered their full co-operation.

SURVEY:

Personal interviews were conducted with hundred workers out of the universe. Pre-tested questionnaire was used to collect information.

LIMITATIONS OF THE STUDY:

Every study has its own limitations whether it is an exploratory, descriptive or casual research. They can be regarding collection of data, forming of the questionnaire, analysis of the data collected etc.The limitations of the study done by me can fit somewhere in the given categories.

The collection of data was one of the limitations faced. Employees were not at all interested in giving their job detail or the personal

detail. They were feeling insecure and didn’t believe that it was just a survey. Employees were not at all enthusiastic in providing the information. On

requesting a lot they cooperated a bit. Employees were not willing to fill the questionnaires and use to say that fill

what ever you want. Time allotted for the survey was less



STUDY DESIGN

Title of the studyPerformance appraisal system and its effectiveness in an organization

Type of the study Descriptive

Sources of information1. Primary data2. Secondary data

Method of data collection Sample survey

Sample size Hundred

Respondents Workers of FMGI, Patiala.

Method of sampling Simple random sampling

Tools for data collection1. Questionnaire2. Personal interviews

Tools for data analysis1. Bar diagram2. Pie diagram



PROFILE

OF

THE WORKMEN

The study on the personal data is necessary for a research study. In the case of this study also investigator study the personal details of the workmen of the FMGI.. A sample was fixed as 100 from workmen category. This was deliberately fixed because the preliminary study shows that the workers had the same aspirations and desire and they all had almost the same opinion. The profiles of the workmen were categorized according to age, location, educational qualification, experience & marital status. The details are given below.



TABLE 2DISTRIBUTION OF RESPONDENTS BY AGE

Age group Distribution18-28 028-38 838-48 2848-58 64Total 100

Out of the 100 workers, 8 workers come under the category of 28-38 years, and 28 workers come under the category of 38-48 years. A maximum of 64 workers are in the age group of 48-58 years. This points out that a majority of 64 % were highly experienced workers. This can be represented with the help of following figure.

FIGURE 2



TABLE 3

DISTRIBUTION OF RESPONDENTS BY MARITAL STATUS

From the above table it is clear that all the respondents were settled down with their family. This can be represented by the following diagram.

FIGURE 3


Marital status DistributionMarried 100Bachelor 0

Total 100


TABLE 4DISTRIBUTION OF RESPONDENTS BY LOCATION

Location DistributionVillage 62Town 28Corporation 10Total 100

Out of the 100 workers, majority of workers, i.e., 62% were coming from village. From the remaining 38%, 10% were coming from corporation and 28% were coming from town. This is represented in the following figure.

FIGURE 4



TABLE 5DISTRIBUTION OF RESPONDENTS BY EDUCATIONAL QUALIFICATION

Educational qualification DistributionBelow 10th 1010-12/Diploma 54Degree/Graduate 28Post Graduate 8Total 100

Among the workmen majority of 74% come under the category of 8-10. There were 8 diploma holders and 8PDC holders. 10% of workers were educated below 8 th

standard. This is illustrated in the following figure

FIGURE 5



DATA ANALYSIS &

INTERPRETATION



Q1. For how many yrs you are working with sonali?

TABLE 6

Number of years Distribution

0-2 1

2-5 2

5-10 11

>10 16

Total 30

FIGURE 6

INTERPRETATION

It can be seen that 56% of the workers at FMGI are working for more than 10 years whereas 36% are working for more than 5 yrs.



Q2.Are you satisfied with your present job at sonalika?

TABLE 7

Are you satisfied with the present job? DistributionYes 20No 7

Average 3Total 30

FIGURE 7

INTERPRETATION

Job satisfaction is a major indicator of employee morale. 82% of the represents are satisfied with their job. 16% of the respondents are not satisfied with their job. 2% of them have average satisfaction. This can be represented with the help of the following figure



Q3. Awareness of technique of Performance Appraisal being followed at FMGI among Employees

TABLE 8

Awareness of technique of Performance Appraisal

Distribution

Yes 21

No 9

Total 30

FIGURE 8

INTERPRETATION

72% of the respondents agree that they are aware of performance appraisal system in their organization. But 28% of the respondents were of the view that they don’t have any knowledge about the appraisal system.



Q4. Employees’ opinion as to the present appraisal system

TABLE 9Employees’ opinion as to

the present appraisal system

Responses (in %)

Fully Satisfied 1

Satisfied 10

Can’t Say 15

Dissatisfied 4

Total 30

FIGURE 9

INTERPRETATION

Majority of respondents do not possess any opinion about the present appraisal system. Whereas only 24% are satisfied and 30% are those who are completely dissatisfied.



Q5 Employee perception as to the frequency of appraisal

TABLE 10

Employee perception as to the frequency of appraisal

Response (in %)

Once During The Service Period

2

Continuous 24

Never 0

Can’t Say 4

Total 30

FIGURE 10

INTERPRETATION

92% of the respondents agree that they continuously go through the appraisal process.



Q6. How Performance Appraisal affects the productivity of the employees

TABLE 11

Opinion Response

Positive Feedback 14

Negative Feedback 9

Indifferent 7

Total 30

FIGURE 11

INTERPRETATION

64% of the respondents feel that Performance Appraisal helps in increasing their productivity as they get motivated while 12% of the respondents feel that Performance Appraisal decreases their productivity. 24% of the respondents feel that Performance Appraisal doesn’t affect their productivity.



Q7. Who should do the appraisal?

TABLE 12

Options Response ( in % )

Superior 8

Peer 0

Subordinate 0

Self Appraisal 4

Consultant 2

All of the above 12

Superior + Peer 4

Total 30

FIGURE 12

INTERPRETATION

48% of the respondents feel that performance appraisal can be done by their superior, peer, subordinate, or it can be self appraisal, or by consultant whereas 24% of the respondents feel that the appraisal would be done by their superior at work and 16% of the respondents feel that appraisal would be done by both the superior and peer.



Q8. Does appraisal help in polishing skills and performance area?

TABLE 13


Yes 21

No 5

Somewhat 4

Total 30

FIGURE 13

INTERPRETATION

If 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.



Q9. Does personal bias creeps-in while appraising an employee

TABLE 14


Yes 24

No 6

Total 30

FIGURE 14

INTERPRETATION

In the process of appraising, both the parties are human being, that is, the one who is being apprised and the other who is appraising. Thus, there bound to be subjectivity involved, be it an objective way of appraising.

Thus, when asked from among the sample size of 100 respondents, as huge as 82 % respond ended that personal bias do creep in while appraising an individual. Hence, it is inevitable to say that personal likings do not come in the process of appraisal. It is the extent to which the appraiser manages it so that it does not become very partial and bias.



Q10. If given a chance, would employees like to review the current appraisal technique?

TABLE 15


Yes 16

No 2

Can’t Say 12

Total 30

FIGURE 15

INTERPRETATION

72% of the respondents are in favor of reviewing the current appraisal technique whereas 24% of the respondents can’t find any answer while answering to this question.



Q11. Appropriate method of conducting the performance appraisal

TABLE 16


Ranking Method 2

Paired Comparison 0

Critical Incidents 5

MBO 4

Assessment Centre 2

360 degree 17

Total 30

FIGURE 16

APPROPRIATE METHOD OF CONDUCTING PERFORMANCE APPRAISAL

6% 0%20%

12%4%

58%

Ranking Method

Paired Comparison

Critical Incidents

MBO

Assessment Centre

360 degree

INTERPRETATION

58% of the respondents feel that the appropriate method of conducting the performance appraisal is through 360 degree approach whereas 20% of the respondents feel that critical incidents is the best method.



Q12. Does performance appraisal leads to identification of hidden potential

TABLE 17


Yes 26

No 4

Total 30

FIGURE 17

INTERPRETATION

96% of the respondents feel that performance appraisal leads to identification of the hidden potential.



Q13. Does the organization facilitate self-appraisal for workers?

TABLE 21

Does the organization facilitate self-appraisal for workers?

Distribution

Yes 12No 18

Total 30

FIGURE 21

INTERPRETATION

72% of the workers have the opinion that the organization does not facilitate any programs for their self-improvement.



Q14.What according to you is Performance Appraisal?

TABLE 22

Opinion Distribution

Evaluation of employees 18

Part of career development 12

Total 30

FIGURE 22

INTERPRETATION

84% feels that Performance Appraisal majorly revolves around evaluation of employees. The company thinks that performance appraisal gives a clear view of how the employees are performing and where they can improve. They think that performance appraisal helps in their personal development. A performance appraisal system is a means for both setting and recognizing the achievement of goals or standards and also helps them in planning the employees own career development.



Q15.How important Performance Appraisal is in utilizing the optimal skills, knowledge and abilities of the employees?

TABLE 23


Very important 30

Important 0

Least important 0

Not at all important 0

Total 30

FIGURE 23

INTERPRETATION100% people agree to the fact that Performance Appraisal is extremely important in utilizing the optimal skills, knowledge and abilities of the employees. Performance appraisal motivates the employees to perform their best by utilizing their knowledge and abilities to fullest.



Q16.What do you consider as essential for performance appraisal of an individual?

TABLE 24


Experience 0

Individual performance 11

Individual potential 19

Current performance 0

Total 30

FIGURE 24

INTERPRETATION

51% i.e. the majority feels that the most essential thing for Performance Appraisal is an individual’s performance even more than the Team or Group performance. Individual performance is taken into account, that, has the employee met his given targets, their attitude towards seniors and colleagues and attendance.



Q17.Are employees given an opportunity to make an input to their own performance appraisal?

TABLE 25

Opinion DistributionYes 30No 0

Total 30

FIGURE 25

INTERPRETATION

100% employees are given opportunities to make inputs to their own Performance Appraisal by filling the employee Self-Assessment Questionnaire. The employees can document not only their achievements, but also the difficulties encountered while working.

Q18.Are the performance appraisal reports freely accessible and communicated to your employees?



TABLE 26


Yes 17

No 13

Total 30

FIGURE 26

ARE APPRAISAL REPORTS FREELY ACCESSIBLE AND COMMUNICATED TO EMPLOYEES

0%0%

Yes83%

No17%

Yes

No

INTERPRETATION

In Federal Mogul, the Performance Appraisal reports are freely available to the employee which is a good thing. Only few team leaders think that performance appraisal reports are not so easily accessible. The employees can easily check what ratings they have got from their superiors and also what their weaknesses are and what are their strengths.

Q19. How Performance Appraisal helps in retention of employee?



Majority of employees feel that effective Performance Appraisal helps a great deal in retention of employees. They get monetary benefits which enhance their confidence and motivate them to work towards organizational goal. Performance Appraisal helps in the personal development of the employees and thus the employees in planning their own career development. Few employees think that Performance Appraisal gives HR an insight about how the employee is performing.

Q20. What are the parameters that determine the Performance Appraisal of an individual?Most say that the major parameters that determine Performance of an individual are whether he has met the targets (CPM) or not. It depends a lot on customer satisfaction. Rest of the parameters is like their attitude towards seniors and colleagues and attendance, how they work in a team and also last years records also affect the Performance Appraisal system.

Q21. What do you like or dislike about the Performance Appraisal policy of your company?

Most employees dislike the fact that Performance Appraisal happens yearly and in that also the salary hike is minimal. They get no incentives to be loyally attached to the organization. The employees want that the performance appraisal cycle should be half- yearly or quarterly and not yearly and the increments given should be more.

But they like the trend that the feedback of previous year’s Performance is given to them by their supervisors and also self-assessment performance appraisal system is there. They think that self-assessment brings more motivation and they are happy that it is a part of Performance Appraisal.

Q22. If given a chance what changes would you like to bring in the Performance Appraisal policies of your company?Almost all the employees feel that Performance Appraisal should be done on individual ground instead of team or group capabilities. They would really like to change the Appraisal Cycle from yearly to half-yearly or quarterly. Last but not the least they would like salary hikes and loyalty bonuses.

Q23. Who are the persons involved in performance appraisal system of your company?People involved in the Performance Appraisal system are-Process AVP Manager- Group leader- Supervisor- and the employees. Above all on a broader perspective we can call the HR Department which is responsible for Performance Appraisal system of a company.



RESEARCH

FINDINGS



Study has found the following facts about the appraisal system of FEDERAL MOGUL GOETZE (INDIA) LTD., PATIALA:

1. Among the 16% of the respondents who are not satisfied with the present job, the job satisfaction is the least in the age group 38-58. This shows that the company has failed in motivating those workers.

2. 56% of the workers at FMGI are working for more than 10 years whereas 36% are working for more than 5 yrs.

3. Those who are educated beyond matriculation agree that they are quite aware of appraisal system in the organization. As against this 28% of the respondents were of the view that they don’t have any knowledge about the appraisal system. Generally more educated employees tend to be more satisfied with their appraisal system probably due to their higher job aspirations

4. Majority of respondents do not possess any opinion about the present appraisal system. Whereas only 24% are satisfied and 30% are those who are completely dissatisfied Awareness sessions about the performance appraisal (objectives and importance) are conducted in the organization. It is normally done for new employees.

5. The findings show a positive attitude of people regarding appraisal system.

6. 64% of the respondents feel that Performance Appraisal helps in increasing their productivity as they get motivated while 12% of the respondents feel that Performance Appraisal decreases their productivity. 24% of the respondents feel that Performance Appraisal doesn’t affect their productivity.

7. Appraisal can be a motivating factor when it is linked with increased pay packets. Financial incentives pay an important role in inducing employees to perform better

8. If 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.



9. When asked from among the sample size of 100 respondents, as huge as 82 % respond ended that personal bias do creep in while appraising an individual. Hence, it is inevitable to say that personal likings do not come in the process of appraisal. It is the extent to which the appraiser manages it so that it does not become very partial and bias.

10. 72% of the respondents are in favor of reviewing the current appraisal technique whereas 24% of the respondents can’t find any answer while answering to this question.

11. 100% employees are given opportunities to make inputs to their own Performance Appraisal by filling the employee Self-Assessment Questionnaire. The employees can document not only their achievements, but also the difficulties encountered while working.



SUGGESTION &

RECOMMENDATIONS



1. Performance appraisal should not be perceived just as a regular activity but its importance should be recognized and communicated down the line to all the employees. New methods of appraisal should be adopted so that both appraiser and the appraisee take interest in the appraisal process. online-appraisal can be introduced

2. There should be a review of job analysis, job design and work environment based on the performance appraisal.

3. It should bring more clarity to the goal and vision of the organization and provide more empowerment to the employees by providing them feedback regarding their appraisal

4. Assistance should be sought from specialists for framing a proper appraisal system that suits the organization climate The employees who have excellent performance should be used as a mentor for other employees who would motivate others to perform better.

5. Financial and non-financial incentives should be linked to the annual appraisal system so that employees would be motivated to perform better.

6. The frequency of training program for the appraiser should be increased and these sessions should be made interactive.

7. The awareness sessions for the employees/appraisees should be made more interactive and the views and opinion of the appraisees regarding appraisal should be given due consideration.

8. Combining the different methods of appraisal can minimize the element of biasness in an appraisal. Use of modern appraisal techniques like 360o appraisal, assessment centers which are more effective.

9. More transparency should be brought about in the appraisal system and it should be effectively link to the performance management system of the organization.

10. The appraisal system should cover all employees in the organization both white collar and blue-collar jobs.

11. Some of the performance appraisals should be conducted by the top management so that they can understand the employees and their needs, behavior better and to find out the loopholes.



CONCLUSION



The analysis and interpretation of data on study of performance appraisal and its

effectiveness in an organization led to the following conclusions:

The result shows that most of the employees in the company have principally

faith in the system which is a positive sign and leave scope for easy adoption.

The promotion rules though defined need to be communicated to every

employee before appraisal process is done and also justifies the promotion as a

result of the appraisal. That the promotion policy followed differs at different

position and category. Uniformity has to be there in the implementation of

promotion policy at all levels.

The appraisal outcome has to be used frequently for the purpose of reward on

performing well together with the feedback on the performance. Also when

performance goes down employee has to be given feedback and motivated to

do better.

In Federal Mogul (India) Ltd. feedback is being provided to the employee

though on a few occasion and Appraisal System focuses on the performance

and future potential of the employee

The result of the appraisal is used for the overall development of the

employee. Training needs of an individual employee are assessed from his

performance rating in respect of various parameters based on which the

performance of an employee is appraised.

The employees are made aware by the company regarding their specific roles

to play at work. They are made clear about their assigned special duties and

responsibilities towards accomplishment of work.

It is considered appropriate to appraise performance of an employee in

manufacturing sector on annual basis. However, in service sector appraisal

need to be on quarterly basis.



BIBLIOGRAPHY



Human Resource Management and Personnel Management By K. A. Aswathappa

Personnel and Human Resource ManagementBy P. Subba Rao and V. S. P. Rao

Management By Harold Koontz & etal.

The Complete Guide to Performance Appraisal

By Richard C Grote

Performance Management

By Robert Bacal

www.goetzeindia.com

federalmogulgoetzeindia.net

www.benifits.org

www.employer-employee.com

www.citehr.com

www.management-issues.com

www.e-days.com

www.performance-appraisal.com

www.businessballs.com/performanceappraisals.htm

http://www.bizhelp24.com/employment-and-personal-

development/employee-appraisal.html

www.hr-guide.com

performance-appraisals.org/

www.managementparadise.com


http://www.hr-guide.com/

http://www.bizhelp24.com/employment-and-personal-development/employee-appraisal.html

http://www.bizhelp24.com/employment-and-personal-development/employee-appraisal.html

http://www.businessballs.com/performanceappraisals.htm

http://www.performance-appraisal.com/

http://www.e-days.com/

http://www.management-issues.com/

http://www.citehr.com/

http://www.employer-employee.com/

http://www.goetzeindia.com/

http://books.google.co.in/books?id=nilxhOm9wD0C&dq=performance+appraisal&printsec=frontcover&source=in&hl=en&ei=nCuCSuqUG8iTkAWold3WCg&sa=X&oi=book_result&ct=result&resnum=12

http://books.google.co.in/books?id=spAY7_nLHcwC&dq=performance+appraisal&printsec=frontcover&source=in&hl=en&ei=nCuCSuqUG8iTkAWold3WCg&sa=X&oi=book_result&ct=result&resnum=11


QUESTIONNAIRE



Designation :Years at Service :Marital status :Life Background :Age :Educational qualification :Monthly Income :

Q1. For how many years you are working with FMGI ?a) 0-2 yrsb) 2-5 yrsc) 5-10 yrsd) >10 yrs

Q2.Are you satisfied with your present job at FMGI?

Yes No Average

Q3. Awareness of technique of Performance Appraisal being followed at FMGI among Employees

Yes No

Q4. Employees’ opinion as to the present appraisal systemFully satisfied Satisfied

Can’t say Dissatisfied

Q5. Employee perception as to the frequency of appraisal

Once During the Service Period

Continuous

Never

Can’t Say

Q6. How Performance Appraisal affects the productivity of the employees

Positive Feedback



Indifferent

Negative Feedback

Q7. Who should do the appraisal?

Superior Peer

Subordinates Self Appraisal

Consultant All of the above

Q8. Does appraisal help in polishing skills and performance area?

Yes No Somewhat

Q9. Does personal bias creeps-in while appraising an employee

Yes No

Q10. If given a chance, would employees like to review the current appraisal technique?

Yes No can’t say

Q11. Appropriate method of conducting the performance appraisalRanking Method

Paired Comparison

360 degree

MBO

Assessment Centre

Critical Incidents

Q12. Does performance appraisal leads to identification of hidden potential

Yes No



Q13. Does the organization facilitate self-appraisal for workers?

Yes No

Q14. What according to you is Performance Appraisal?

Evaluation of employees

Part of career development

Q15. How important Performance Appraisal is in utilizing the optimal skills, knowledge and abilities of the employees?

Very importantNot at all important

Least importantImportant

Q16. What do you consider as vital for performance appraisal of an individual?Experience

Individual performance

Current performance

Individual potential

Q17. Are employees given an opportunity to make an input to their own performance appraisal?

Yes No

Q18. Are the performance appraisal reports freely accessible and communicated to your employees?

Yes No

Q19. How Performance Appraisal helps in retention of employees?…………………………………………………………………………..…………………………………………………………………………..



Q20. What are the parameters that determine the Performance Appraisal of an individual?

…………………………………………………………………………..…………………………………………………………………………..

Q21. What do you like or dislike about the Performance Appraisal policy of your company?

…………………………………………………………………………..…………………………………………………………………………..

Q22. If given a chance what changes would you like to bring in the Performance Appraisal policies of your company?

…………………………………………………………………………..…………………………………………………………………………..

Q23. Who are the persons involved in performance appraisal system of your company?

…………………………………………………………………………..…………………………………………………………………………..

Suggestions and views…………………………………………………………………………..…………………………………………………………………………..

Date --/--/--



performance appraisal

Documents

research project

federal mogul goetz

federal mogul beginning

project guidethis

degree of mba

bonafied research work

degree of master

way of research