A STUDY ON

“PERFORMANCE APPRAISAL”
With reference to

LAKSHMI HYUNDAI
VISAKHAPATNAM

A Project Report Submitted to

Jawaharlal Nehru Technological University, Kakinada
In Partial fulfillment for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted By
MUPPANDAM MOUNIKA
(Regd. No: 19811E0025)

Under the Guidance of

P.PAVANI SANTHOSHI KUMARI
Assistant Professor

DEPARTMENT OF MANAGEMENT STUDIES

AVANTHI INSTITUTE OF ENGINEERING AND TECHNOLOGY
(An NBA Accredited Institution)
(Approved by AICTE, Recognized by the Govt. of A.P. &
Affiliated to JNT University, Kakinada.)
Thamaram, Visakhapatnam.
(2019-2021)
 DEPARTMENT OF MANAGEMENT STUDIES

AVANTHI INSTITUTE OF ENGINEERING AND TECHNOLOGY

THAMARAM, VISAKHAPATNAM.

CERTIFICATE
This is to certify that the project “ A STUDY ON PERFORMANCE
APPRAISAL with reference to “LAKSHMI HYUNDAI”, VISAKHAPATNAM, has
been carried out by M.MOUNIKA under my guidance and the project report has not
been submitted to any other university or institution any time before.

Dr B.LOVA p.pavani
(Head of the Department) (Project guide)

External Guide
 DECLARATION

I hereby declare that this project report entitled “A STUDY ON

PERFORMANCE APPRAISAL” with reference to “LAKSHMI HYUNDAI
VISAKHAPATNAM has been by me in partial fulfillment of requirement for the award
of Degree of Master of Business Administration by JNTU, KAKINADA.

I also hereby declare that this project is the result of my own effort and that it
has not been submitted to any other university for the award of any degree .

Place: Muppandam mounika

Date: (Regd No: 19811E0025)
 ACKNOWLEDGEMENT

I take the responsibility to acknowledge the following distinguished

personalities who graciously allowed me to carry out this project work successfully.
I express my profound regards to Dr. C.P.V.N.J.MOHAN RAO, Principal of
Avanti Institute of Engineering and Technology, for providing an opportunity to
undertake this project work.
I am thankful to my project guide MISS P.PAVANI SANTHOSHI KUMARI
Assistant Professor, Avanti Institute of Engineering and Technology without whose
guidance and encouragement this project would not have been completed. He is constant
source of inspiration throughout the project.
I am thankful to Mr. RAMAKRISHNA RAO HUMAN RESOURCE Dept., who gave
me an opportunity to do this project work.
Finally I would like to thank my family and friends who assisted me in
completing the project work.

MUPPANDAM MOUNIKA
(Regd. No: 19811E0025)
 CHAPTER 1
INTRODUCTION
 1.1 INTRODUCTION

HRM is concerned with the human beings in an

organization. “The management of man” is a very important and challenging
job because of the dynamic nature of the people. No two people are similar in
mental abilities, tacticians, sentiments, and behaviors; they differ widely also
as a group and are subject to many varied influences. People are responsive,
they feel, think and act therefore they cannot be operated like a machine or
shifted and altered like template in a room layout. They therefore need a
tactful handing by management personnel.

1. HRM is the process of managing people of an organization with a

human approach.
2. Human resources approach to manpower enables the manager to view

the people as an important resource.

3. It is the approach through which organization can utilize the man power

not only for the benefits of the organization but for the growth,
development and self satisfaction of the concerned people.
Thus, HRM is a system that focuses on human
resources development on one hand and effective management of
people on the other hand so that people will enjoy human dignity in
their employment.

Meaning of HR

Different terms used to denote human resource management they are labour
management, Labor administration , Labour management , relation. Employee
to employee relation,, industrial relation., Personal administration ,
Human capital management .
DEFINITION:

Human resource management is the planning, organizing directing and

controlling of the procurement, development, compensation, integration,
maintenance and separation of human resource to the and that individual,
organizational, and social objectives are accomplished.
Edwin B. Filippo

“The term human resources can be thought of as "the total knowledge,

skills, creative abilities, talents and aptitudes of an organization's
workforce, as well as the values, attitudes and beliefs of the individuals'
involved"
Leon C. Megginson

THESE REASONS INCLUDE:

 Increased job satisfaction and morale among employees.

 Increased employee motivation.
 Increased efficiencies in process resulting in financial gain.
 Increased capacity to adopt new technologies and methods.
 Increased innovation in strategies and products.
 Reduced employee turnover
 Enhanced company image, e.g., conducting ethics training, positive attitude,
inter personal skills.
 Scope :
The scope of HRM is very wide:
 Personnel aspect-This is concerned with manpower planning,
recruitment, selection, placement, transfer, promotion, training
and development, layoff and retrenchment, remuneration,
incentives, productivity etc.
 Welfare aspect-It deals with working conditions and amenities
such as canteens, rest and lunch rooms, housing, transport,
medical assistance, education, health and safety, recreation
facilities, etc.
 Industrial relations aspect-This covers union-management
relations, joint consultation, collective bargaining, grievance and
disciplinary procedures, settlement of disputes, etc.
 1.2 OBJECTIVES OF THE STUDY

 To identify technique used for performance appraisal in Lakshmi Hyundai.

 To know Employee attitude towards the present appraisal system.

 To identify the effectiveness of performance appraisal system on

employees.

 To study the process of Performance appraisal in LAKSHMI

HUYNDAI

 To provide suggestions and recommendations to improve the

performance appraisal system
 1.3 Need of the study

 To assist in rating of the employees performance.

 To improve standards of work.

 To provide tools and suitable technologies for the workers ( employees ) .

 To determine the role of managerial staff in performance appraisal.

 To eradicate the line between poor performers and good performers

 1.4 Methodology of the study :

The present study will get the data from two types of methodologies.

Primary data
Secondary data

PRIMARY DATA:

For this project primary data was collected from the employees of the organization

The Basic approach for the collection of primary data is by conducting a survive with the help

of questionnaire and interview and also a survey on training program is conducted by

means of questionnaire to derive training programmers effectiveness at VSP. Efforts will be

directed in obtaining the view of employees / executives who got trained in the

inhouse /outhouse training programmers.

SECONDARY DATA :

Secondary data is such data which is already published collected for some

Purpose other than the one confronting researcher at a given point of time information

pertaining to training and development programs organized over a period will be

obtained by way of referred to record of the statistical departments personal department

and training and development departments .

Sample design :

A sample design is defined as a plan determined before any data are actually

Collected for obtaining a sample from a given population .sample can be either probability

Sample or non probable sample.

In designing the sample the researcher must specify three things.
1. Sampling unit.

2. Sample size.

3. Sampling technique.

SAMPLING UNIT

The unit Comprises of employees from all departments of the hotel.

SAMPLE SIZE : 50

SAMPLING TECHNIQUE USED: simple random sampling

SIMPLE RANDOM SAMPLING

This type of sampling is also known as chance sampling or probability sampling,

where each item in the population has an equal chance of being selected in the
sample
 1.5 LIMITATIONS OF THE STUDY

 The Company not willing to provide some confidential data which

cause some distractions in the project work.
 Data collection is highly difficult due to rotational shifts of the employees.

 It is difficult to collect information based on the report in a short time

of period.

 The answers given by the respondents highly depend on the mood and
interest of the employees.

 Due to pandemic covid 19 major portions of the data is collected

from the previous records and books
 CHAPTER-2

2.1 INDUSTRY PROFILE

2.2 COMPANY PROFILE

 2.1 INDUSTRY PROFILE

An Overview of the Indian Automobile Industry

An overview of the Indian Automobile Industry starting its journey from the day
when the first car rolled on the streets of Mumbai in 1898, the Indian automobile
industry has demonstrated a phenomenal growth to this day.

Today, the Indian automobile industry presents a galaxy of varieties and models
meeting all possible expectations and globally established industry standards.

Some of the leading names echoing in the Indian automobile industry include
HYUNDAI India Ltd., Maruti Suzuki, Ford Motors, Tata Motors, Mahindra &
Mahindra, HYUNDAI Motors, Honda and Hindustan Motors In addition to a
number of others.

During the early stages of its development, Indian automobile industry

heavily depended upon foreign technologies. However, over the years, the
manufacturers in India have started using their own technology evolved in the
native soil. The thriving market place in the country has attracted a number of
automobile manufacturers including some of the reputed global leaders to set their
foot in the soil looking forward to enhance their profile and prospects to new
heights.

The automobile sector of India is the seventh largest in the world. In a year,
the country manufactures about 2.6 million cars making up an identifiable chunk
in the worlds annual production of about 73 million cars in a year.

The country is the largest manufacturer of the motorcycles and the fifth largest
producer of commercial vehicles. Industry experts have visualized an unbelievably
huge increase in these figures over the immediate future.
The figures published by the Asia Economic Institute indicate that the Indian
automobile sector is set to emerge as the global leader by 2012. In the year 2013,
India rose to be the fourth largest exporter of automobiles following Japan, South
Korea and Thailand.

Automobile industry in India with a scintillating 2.3 million units produced in

2008 the Indian automobile industry bagged the position of being the ninth largest
in the world. Following economic liberalization, Indian domestic automobile
companies like Tata motors Maruti Suzuki and Mahindra and Mahindra expanded
their production and export operation in and across the country and since than the
industry has only shown signs of growth. The automobile industry comprises of
heavy vehicles (trucks, buses, tempos, tractors), passenger cars and two-wheelers.

The Indian automobile industry seems to come a long way since the first car that
was manufactured in Mumbai in 1898. The automobile sector today is one of the
key sectors of the country contributing majorly to economy of the India. It directly
and indirectly provides employment to over 10 million people in the country. The
Indian automobile industry as well established name globally being the second
largest two wheeler market in the world and expected to become the third largest
automobile market in world only behind USA, CHINA.

The growth of the Indian middleclass along with the growth of the economy over
the last few years has resulted in a host of global auto giants setting their foot
inside the Indian territory. More over India also provides trained manpower at
competitive cost making the country a manufacturing hub for many foreign
automobile companies. India proves to be a potential market as compared to most
of the other countries which are witnessing stagnation as for as automobile
industry growth is concerned.
A recent research conducted by the global consultancy firm deloitte says that at
least one Indian automobile country company will feature among the top six
automobile companies that will dominate car market by 2020.

The Indian automobile industry provide to be in good shape last year even after
the economic downturn. This was majorly due to the fact of renewed interest
shown by global automobile players like Nissan motors which consider India to be
a potential market.

As far as authorized dealer networks and service stations are concerned maruti
Suzuki is the most wide spread. The other automobile companies are also showing
rapid progression in this field.

Indian auto mobile export market

India is a very favourable market for small cars be it production, sales or export.
Since the Indian automobile industry is the largest manufacturer of small cars
companies like Hyundai and Nissan motors export about 2,40,000 and 2,50,000
annually. India emerged as Asia’s 4th largest exporter of automobiles, behind
Japan, south Korea and Thailand. The Indian automobile exports registered a
22.30% growth in the year 2009. The growth trend was as follows two wheelers-
32.31%, commercial vehicle- 19.10% and passenger cars grew by- 19.10%.
Key Automobile manufactures In India

 Maruti Udyog

 General Motors

 Ford India Limited

 Eicher Motors

 Bajaj Auto

 Daewoo Motors India

 Hero Motors

 Hindustan Motors

 Hyundai Motors India Limited

 Royal Enfield Motors

 Telco

 TVS Motors

 DC Designs
History of the Automobile Industry in India

The economic liberalization that dawned in India in the 1991 has succeeded in
bringing about a sustained growth in the automotive production sector triggered by
enhanced competitiveness and relaxed restrictions prevailing in the Indian soil.

A number of Indian automobile manufacturers including Tata Motors, Maruti

Suzuki and Mahindra & Mahindra have dramatically expanded both domestic and
international operations The country’s active economic growth has paved a soiled
road to the further expansion of its domestic automobile market.

This segment has in fact invited a huge amount of India-specific investment by a

number of multinational automobile manufacturers.

The beginnings of automotive industry in India can be traced during 1940s. After
the nation became independent in the year 1947, the Indian Government and the
private sector launched their efforts to establish an automotive component
manufacturing industry to meet the needs of the automobile industry.

The growth of this segment was however not so encouraging in the initial stage
and through the 1950s and 1960s on account of nationalization combined with the
license raj that was hampering the private sector in the country.

The Importance of the Automobile Industry in India

The Automobile Industry, along with auto components industry occupies a

prominent place in the fabric of the Indian economy. This is primarily due to the
fact that this industry has strong forward and backward linkage with several key
segment of the economy.

Thus the automotive industry has a strong multiplier effect and is capable of being
the driver of economic growth. In addition, a sound transportation system plays a
vital role in the country’s rapid economic and industrial development.

Major Competitors:

1. Maruti Udyog Limited

Maruti Udyog, a leading car manufacturing in India for the past two decades has
been introduced very recently and is available in four variants. The company rank
highest in customer satisfaction in India in 2006 for the seven consecutive years.
Maruti is planning to launch its car in South Africa by next year.

Maruti Udyog limited established in 1981, had a prime objective to meet the
growing demand of a personal mode of transport, which is caused due to lack of
efficient public transport system.

Suzuki Motor Company of Japan was chosen from seven other

prospective partners worldwide. Suzuki was do not only to its undisputed
leadership in small cars but also to commitments to actively bring to MUL
contemporary technology and Japanese management practices (that had catapulted
Japan over USA to the status of the top auto manufacturing country in the world.)
A license and a joint venture agreement were signed between Govt. of India and
Suzuki Motor Company in Oct 1982. In 2001, MUL became one of the first
automobile companies, globally to be honored with an ISO 9000:2000 certificate.
The MUL plant has already rolled out 4.3 million vehicles. The fact says that, on
an average two vehicles roll out of the factory in every single minute.

OTHER COMPETITORS:
1. Ford India

2. TATA Motors:

3. Mahindra & Mahindra

4. Honda

5. Toyota

6. Volkswagen

7. Fait
Growth rate of Indian Automobile Industry
Indian automotive industry is booming with a growth rate of around 15%
annually. Major international auto companies have decided to put up their plant in
India like Nissan Motors, Volkswagen.

Existing player’s like Maruti Suzuki, HYUNDAI Motors, and Ford motors, Tata
Motors, Mahindra & Mahindra, and General Motors have already started their
expansion plans to cater to growing demand.

Tata Motors & Maruti Suzuki has also announced to provide very low cost cars for
Indian market.

The reporters say that India is the second fastest growing market next to China.
The third position goes to Germany.

“The growth may be subdued due to the combination of reasons including new
emission norms, excise hike, a possible hike in the interest rates and the rise in the
commodity prices.

It can results in an average hike in the prices by 10-14 percentage. “informs

pawan goenka. He also expects that LCV segment will be getting the highest
growth
 2.2 COMPANY PROFILE

INTRODUCTION OF HYUNDAI MOTORS:

HYUNDAI Motor Company a division of the HYUNDAI KIA Automotive

Group is the world's largest automaker by profit, the world’s fourth largest
automaker by units sold and the world's fastest growing automaker.

Headquartered in Seoul, South Korea, HYUNDAI operates the world’s largest

integrated automobile manufacturing facility in Ulsan, which is capable of
producing 1.6 million units annually. The company employs about 75,000 persons
around the world, HYUNDAI vehicles are sold in 193 countries through some
6,000 dealerships and showrooms worldwide.

In 1998, after a shake-up in the Korean auto industry caused by over ambitious
expansion and the Asian financial crisis, HYUNDAI acquired rival KIA Motors. In
2000, the company established a strategic alliance with Daimler Chrysler and
severed its partnership with the HYUNDAI Group.

In 2001, the Daimler-HYUNDAI Truck Corporation was formed. In 2004,

however, Daimler Chrysler divested its interest in the company by selling its
10.5% stake for $900 million.

HYUNDAI has invested in manufacturing plants in the North America, China,

Czech Republic, Pakistan, India, and Turkey as well as research and development
centers in Europe, Asia, North America, and the Pacific Rim. In 2004, HYUNDAI
Motor Company had $57.2 billion in sales in South Korea making it the country’s
second
HYUNDAI motor vehicles are sold in 193 countries through some 6,000
dealershipsand showrooms. After a recent survey of global automotive sales,
HYUNDAI is now the fourth largest automaker in the world as of 2013.

HYUNDAI Motor Company’s brand power continues to rise as it was ranked

72nd in the 2007 Best Global Brands by Interbred and Business Week survey.
Brand value estimated at $4.5 billion. Public perception of the HYUNDAI brand
has been transformed as a result of dramatic improvements in the quality of
HYUNDAI vehicles.

The pride of HYUNDAI motors is now measured worldwide. As HYUNDAI

Motor Company continues to develop cutting edge engines that will beat as the
heart of next generation cars, we are confident that we will be the major player of
the automobile industry in the future. As of now the brand value of HYUNDAI is
$9 billion.

The ‘S-Engine’ the new concept that overcame previous

limitations:

The S–Engine, the world's highest quality V6 engine, developed solely by

HYUNDAI, achieves a powerful performance–generating 240 horsepower and
super fuel efficiency. This engine boasts the most economical fuel efficiency
available today.

It not only offers fast response time, but also overcomes limitations of existing
diesel engines. Its power output is equivalent to gasoline engines and it also meets
the Euro 4 Environmental Regulation standards, proving this is the most advanced
new concept diesel engine, with top quality engine performance, fuel efficiency,
and environmental friendliness, all at the same time. The S–Engine, currently
available in the Vera Cruz, is also attracting industry attention for its superb
performance and fuel efficiency.

Working of HYUNDAI:

The working of HYUNDAI depends totally upon GDMS software. Working of

every outlet all over the world is done with the help of GDMS. GDMS stands for
Global Dealer Management System. This is the software designed by HYUNDAI
for online marketing. Every dealer has to report about the working of its outlet
such as sales, orders, payments, enquiries, etc. CEO of the company can look after
every outlet with the help of this software. A special section is designed for this
software in every showroom of HYUNDAI and also a separate person is
appointed.

There are various points covered under GDMS software is as

follows:

1. GDMS common

i. Customer management
ii. Dealer CEO report
iii. Dealer change
iv. Dealer city master
v. Password change
vi. Employee management
vii. User management
 2. HMI call Centre

i. HMI call center complaint

ii. HMI call center sales

3. Sales common (dealer)

i. Customer complaint (sales)

ii. Scheme table master

iii. Dealer financier

iv. Location master

v. Price master

vi. Stock location master

4. Sales operation

i. Customer enquiry management

ii. Dealer order forecast
iii. Dealer order and payment
iv. Dealer vehicle stock management
v. Insurance renewal management
vi. Inter-dealer stock transfer
vii. Sales consultant target
 5. Dealer report
i. Account master
ii. Booking master
iii. Dealer stock
iv. Monthly stock
v. Order stock
vi. Post sales stock
vii. Pre-sales stock
viii. Sales stock

6. SSI and ST

i. Sales training
ii. Sales consultant information
iii. Training program information
iv. Tag attendance v.Performance
vi. In-house training.

History of the Organization

The HYUNDAI logo, a slanted, stylized 'H', symbolizes the company shaking
hands with its customer. HYUNDAI translates from the word "modernity", and is
pronounced as "Hyon-dae" in Korean.

The world's largest automobile manufacturing plant in Ulsan,South Korea,

produces over 1.6 million vehicles annually.
Chung Ju-Yungfounded the HYUNDAI Engineering and Construction Company
in 1947. HYUNDAI Motor Company was later established in 1967. The
company’s first model, the Cortina, was released in cooperation with Ford Motor
Companyin 1968.

In 1975, the Pony, the first Korean car, was released, with styling by Giorgio
Giugiaro of Ital Designand powertrain technology provided by Japan’s Mitsubishi
Motors. Exports began in the following year to Ecuadorand soon thereafter to the
Benelux countries. In 1991, the company succeeded in developing its first
proprietary gasoline engine, the four cylinder Alpha, and transmission, thus paving
the way for technological independence.

In 1983, HYUNDAI exported the Ponto Canada, but not to the United States
because the Pony didn't pass emissions standards there. Canadian sales greatly
exceeded expectations, and it was at one point the top-selling car on the Canadian
market. The Pony afforded a much higher degree of quality and refinement in the
lowest price auto segment than the Eastern-bloc imports of the period then
available.

In 1986, HYUNDAI began to sell cars in the United States, and the Excelwas
nominated as "Best Product #10" by Fortune magazine, largely because of its
affordability. The company began to produce models with its own technology in
1988, beginning with the midsize Sonata.

In 1998, HYUNDAI began to overhaul its image in an attempt to establish itself

as a world-class brand. Chung Ju Yung transferred leadership of HYUNDAI
Motor to his son, Chung Mong Koo, in 1999.
HYUNDAI's parent company, HYUNDAIMotor Group, invested heavily in the
quality, design, manufacturing, and long-term research of its vehicles. It added a
10-year or 100,000-mile (160,000 km) warranty to cars sold in the United
Statesand launched an aggressive marketing campaign.

In 2004, HYUNDAI was ranked second in "initial quality" in a survey/study by

J.D. Power and Associates. HYUNDAI is now one of the top 100 most valuable
brands worldwide. Since 2002, HYUNDAI has also been one of the worldwide
official sponsors of the FIFA World Cup.

In 2006, the South Korean government initiated an investigation of Chung Mong

Koo's practices as head of HYUNDAI, suspecting him of corruption. On April 28,
2006, Chung was arrested, and charged for embezzlementof 100 billion South
Korean won(US$106 million). As of now Mr. Chung Mong Koo is reinstated as
the CEO after given a suspended sentence.

Sales department:

“A good sales organization is one wherein the functions or departments have each
been carefully planned and coordinated towards the objectives of putting the
product in the hands of the consumer, the whole effort being efficiently supervised
and managed so that each function is carried out in the desired manner.”

The sales department is concerned with all the activities which are necessary for
marketing & sale. It has several employees working under the direction & control
of the sales manager.

Each person in the department is assigned a particular type of job according to his
qualification and caliber. This will ensure that the department works smoothly.
The sales department has to be organized well, because, the future of the firm
depends on it, to a great extent.

Objectives of sales organization:

1. To make the plan for purchases.

2. To create demand for the products.

3. To handle the received orders efficiently.

4. To collect the dues in time.

5. To handle the tasks of personnel management.

6. To reconcile the complaints.

Importance of sales organization:

1. Proper sales planning.

2. Proper co-ordination of sales activities.

3. Successful sales and increase in profits.

4. Creating demands.

5. Handling of sales routine and collection of dues.

6. Supervision and control.

 Hierarchy of sales department:

General Manager

Sales Manager

Team Leader

Sales Consultant

Sales Procedure

LAKSHMI HYUNDAI has framed sales process through which sales should be
done in a proper way. It consists of different processes such as:

1. Prospect finding.

2. Need analysis.

3. Objection handling.

4. Negotiations.

5. Closing and finalizing the deal.

6. Delivery of the product.

7. After sales service.

 Accident department

This is one of the most important departments in LAKSHMI HYUNDAI. This

department is designed specially to look after the cars which are damaged in
accident. The type of work handle by this department is renovation, painting,
denting and fittings. It also deals with every damage to the car.

In case of accident of any car 50% of charges are paid by insurance company and
in case of damage of fiber parts also 50% charges are bared by insurance
company.

Spares and parts department

In LAKSHMI HYUNDAI another important department is spares and parts

department. It fulfills all the needs and wants of customer of each and every part of
the vehicle. Spares department is large enough to have each and every part of
vehicle. The working of spares and parts department is done with the help of
GDMS such as stock reporting, issue of spares, ordering and procurement etc.
spares and parts are issued only on the demand of accident department and parts
department to the customers.

HYUNDAI has tie up with “Mobi’s” the organization which provides all spares
and parts to each and every showroom all over India. All the parts are provided
through courier service, courier service is given by the supplier. The products are
packed in air pack boxes and all the products have paper coating to prevent from
damage. Another step taken to prevent from damage is insurance. All the goods
are insured by both the firm i.e. the supplier and LAKSHMI HYUNDAI.

While ordering the products the firm sends the bar codes of the products and
according the codes the supplier supply the products to the firm. Bar codes are
given to each and every product for easy identification. While issuing the product
from LAKSHMI HYUNDAI they keep record of each and every product such as
type of product, color and bar code of product.

Services Offered:

• Convenient appointment as per customer choice-No waiting at service

reception.

• Welcome Board to highlight appointments.

• Joint inspection of vehicle along with the customer.

• Good ambience at interactive bay and surroundings.

• Completion time is scheduled and agreed with customer.

• Availability of menu pricing-include cost of spares, labor and lubes.

• Total price agreed with customer upfront before starting the job.

• Customer lounge is clean and well equipped.

• Service advisor delivers vehicle to customer after explaining the work

carried out on the car and explanation of charges.

• Failed parts returned on customer pay jobs.

• Customers to receive call within a week of taking of the car from the
workshop.

• Vehicles are returned to customers in a clean condition.

Marketing mix:
The term marketing mix was first used in 1953 when Neil Borden, in his American
Marketing Association presidential address, took the recipe idea one step further
and coined the term marketing mix. The marketing mix is probably the most
famous marketing term. Its elements are basic, tactical components of a marketing
plan.
Also known as the four P’s the marketing mix elements are:

 Product

 Price

 Place

 Promotion

The concept is simple. Think about another common mix-a cake mix. All cakes
contain eggs, milk flour, and sugar. However, you can alter the final cake by
altering the amounts of mix elements contained in it. So for a sweet cake add more
sugar.

It is same with the marketing mix. The offer you make to your customer can be
altered by varying the mix elements. So for a high profile brand, increase the focus
on promotion and desensitize the weight given to price. Another way to think
about the marketing mix is to use the image of artist’s palette.

The marketer mixes the prime colors (mix elements)in different quantities to
deliver a particular final color. Every hand painted picture is original in some way,
as is every marketing mix.

Product

The noun product is defined as thing produced by labor or effort or the result of an
act or a process, and stems from the verb produce, from the Latin produce (re)
‘(to) lead or bring forth’.
Since 1695 the word has referred to “thing or things produced”. The economic or
commercial meaning of product was first used by political economist Adam
Smith.

In marketing, a product is anything that can be offered to a market that might

satisfy a want or need. In retailing products are called merchandise. In
manufacturing, products are purchased as raw materials and sold as finished
goods.

Commodities are usually raw material such as metals and agricultural products,
but a commodity can also be anything widely available in the open market.

In project management products are formal definition of the project deliverables

that make up or contribute to delivering the objectives of the project.

In general, product may refer to a single item or unit, a group of equivalent

products, a grouping of goods or services, or an industrial classification for the
goods or services.

A related concept is sub product, a secondary but useful result of a production

process.

Dangerous products, is particularly physical ones, the cause injuries to consumers

or bystanders may be subject to product liability.

There are three levels of Product

For many a product is simply the tangible, physical entity that they may be buying
or selling. You buy a new car and that’s the product-simple or maybe not. When
you buy a car, is the product more complex than you first thought? In order to
actively explore the nature of a product further, let’s consider it as three different
products-the CORE product, the ACTUAL product and finally the AUGMENTED
product.

These are known as the “Three Level Products”.

1. The CORE product is not the tangible, physical product. You can’t touch it.

That’s because the core product is the BENEFIT of the product that makes
it valuable to you. So with the car example, the benefit is convenience i.e.
the ease at which you can go where you like, when you want to. Another
core benefit is speed since you can travel around relatively quickly.
2. The ACTUAL product is tangible, physical product. You can get some use

out of it. Again with the car example, it is vehicle that you test drive, buy
and then collect.
3. The AUGMENTED product is non-physical part of the product. It usually

consists of lots of added value, for which you may or may not pay a
premium. So when you buy a car, part of the augmented product would be
the warranty, the customer service support offered by the cars manufacture,
and any after-sales service.
 CHAPTER-03
THEORETICAL FRAME WORK OF PERFORMANCE

APPRAISAL
 INTRODUCTION TO HUMAN RESOURCE MANAGEMENT
Human Resource management, in the sense of getting things done
through people, is an essential part of every manager's responsibility, but
many organizations find advantages to establish a specialist division to
provide an expert service dedicated to ensuring that the human function is
performed efficiently.
"People are most valuable asset" which no member of any senior
management team would disagree with. Yet, the reality for many
organizations is that their people remain undervalued, under trained and
underutilized.
The market place for talented, skilled people is competitive and expensive.
Taking on new staff can be disrupted to existing employees. Also, it takes
time to develop 'cultural awareness', product / process / organizational
knowledge and experience for the new staff members.
FUNCTIONS OF HUMAN RESOURCE MANAGEMENT
Following are the various functions of Human Resource Management
that are essential for the effective functioning of the organization.
1. Recruitment
2. Selection
3. Induction
4. Performance appraisal
5. Training and Development

Recruitment
The process of recruitment begins after manpower requirement is determined in
terms of quality through job analysis and quantity through forecasting and
planning.
Selection
The selection is the process of ascertaining whether or not candidates possess the
requisite qualification, training and experience required.

Induction
Induction is the technique by which a new employee is to rehabilitate into the
changes surrounding and introduced to the practices, policies and purposes of the
organization.

WHAT IS "PERFORMANCE APPRAISAL"?

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 the future development. It consists of all procedure used in working
organization and potential of employees.
Performance appraisal means systematic evaluation of the personality and
performance of each employees by his superior or some other persons trained in
the technique of merit rating. It employs various ratings technique for comparing
individual employees in a work group, in terms of personnel qualities or
deficiencies and the requirements of their respective jobs.

DEFINITION
 According to Dale Yoder, "Performance appraisal includes all formal
procedure used to evaluate personalities and contributions and potential of
group members in a working organization. It is a continuous process to
secure information's necessary for making corrections and objective
decisions of employees".
 According BEACH ,performance appraisal is the systematic evolution of
the individual with regard to his or her performance on the job and his
potential for development.
 CHARACTERISTICS
 Performance appraisal is a process.
 It is the systematic examination of the strength and weakness of
employees during the term of his job.
 It is a scientific and objective study. Formal procedure is used in the study.
 It is an ongoing and continuous process wherein the evaluations are arranged
periodically according to a definite plan.
 The main purpose of performance appraisal is to ensure information
necessary for making objectives and correct decision an employee.

PROCESS
The process of performance appraisal
 Establish performance standards.
 Communicate performance standards.
 Measure performance.
 Compare performance to standards.
 Discuss the appraisal with the empolyee .
 Implement personal action.

PURPOSES OF PERFORMANCE APPRAISAL

The objective of performance appraisal falls into two categories:

 To provide feedback of employee performance
 To suggest the training needs for the employees
 To develop assistance to employees to accomplish tasks
 To provide information to the top management about future needs
LIMITATIONS OF PERFORMANCE APPRAISAL
Performance appraisal may not yield the desired results because of the following
deficiencies:
If the factors included in the assessment are irrelevant, the result of merit rating
will not be accurate.
Different qualities to be rated may not be given proper weight, age certain in
cases.
Some of the factors are highly subjected like the initiative and personality of the
employees, so the actual rating may not be on scientific lines.
Supervisors often do not have the critical ability in assessing the staff.
Something, they are guided by their personal emotions and likes. So the ratings
are likely to be biased.
 METHODS OF PERFORMANCE APPRAISAL
There are various methods of merit rating, which may be classified into:

• Traditional methods and

• Modern methods

The methods differ for various obvious reasons.

First, they differ in the source of traits or qualities to be rated. The qualities may
differ due to differences in job requirements, statistical requirements and opinion
of the management. For instant, 'corporation' may not be considered at all
necessary by the management. Then, it is difficult also to reliable rate such
factors as co-operation.
Second, they differ with respect to the coverage who is being rated.
Third, variations may be caused due to the degree of precision attempted in the
evaluation.
Finally, may differ with respect to the methods used to obtain Weight age for the
various traits.
As far as practicable, merit rating should be a continuous process and made at
regular intervals. Any good method of merit rating should assess the following
personal qualities of the employees:
I. Knowledge of work
II. Ability to do the work
III. Quality and quantity of output
IV. Personal qualities like dependability, adaptability, initiative, etc.
V. Special qualities like confidence, leadership, etc.
 TRADITIONAL METHOD
Traditional methods are very old technique of performance appraisal. They are
based on trait- oriented appraisal. Evaluation of employee is made on this basis
of standards of personal traits or qualities such as attitudes, judgment, versatility,
initiative, dependability, leadership, loyalty, punctuality, knowledge of the job,
etc.
There are seven traditional methods of appraisal

Performance Appraisal

TRADITIONAL METHODS MODERN

METHODS
1. Ranking method 1.management by
objectives

2. Paired comparsion 2.cost accounting

method

3. Grading 3.assessment centres

4. Forced distribution method 4.360- appraisal

Under this, the appraiser is required to write down his impression about the person
being appraised in an unstructured way. However, in some organization,
comments are required to be grouped under specific heading such as quality of
job performance.
Reasons for specific job behaviors, personality traits, and development needs.
This system highly subjective and has got its merit in its simplicity and is still in
use especially in the small firm.
Ranking methods
Ranking is a simple process of placing employees in a rank according to their
job performance. It permits comparison of all employees in any single rating
group, regardless of the type of work. All workers are judged on the same
factors and they are rated on the overall basis with reference to their jot,
performance instead of individual assessment of traits.
Paired comparison is an improvement over simple ranking. Under this, every
employee in a job family is compared with every other employee to determine
which the better worker is.

Forced Distribution Methods

The forced distribution system is devised to force the appraiser to fit the
employees being appraised into predetermined ranges of scale. It has an
advantage over the paired comparison system in that two or more employees can
be divided into five point’s scale of outstanding, above average, below average
and poor.
This method obviously eliminates the room for subjective judgment on the part
of supervisors. Besides this, the system is easy to understand and administer. The
objective of this technique is to spread out ratings in the form of a normal
distribution which is open to criticism. Many times, categories are not found in
Workgroup, particularly when the size of the group is comparatively smaller. As
a matter of fact, forced distribution of rankings is feasible for a large group.
Graphic Rating Scale
Under this method, scales are established for a number of specific factors and
qualities. Five degrees are established for each factor and general definition
appears at points along the scale. Generally, the rater is supplied with a printed
form, one for each person to be rated. The selection of factors to be measured on
the graphical rating scales is an important point under this system. These are two
types:

I. Characteristics, such as initiatives and dependability.

II. Contributions, such as quantity and quality of work.
Graphic scales impose a heavy burden upon the supervisor. He must report and
evaluate the performance of his subordinates on a scale involving as many as
five degrees on perhaps ten different factors, the main drawback of this system
that the rater may be biased. However, one means of ensuring that the rater has
based his scoring upon substantial evidence is to leave space on the form after
each factor and required him to explain the reason for his rating.

Checklist
It also consists of two techniques:
a. Weighted checklist
b. Forced choice

Weighted check list

Under this method, various statements are prepared in such a manner that they
describe various types and levels of behavior for a particular job. Each statement
is attached with a scale value. At the time of rating the employees, the superior
just collects and checks all the statements. After the weight or values are
attached to the individual traits, the rating up to this level is gathered on the
rating sheet. Then the weights are averaged and employee is evaluated.
The weighted checklist should be prepared by the persons thoroughly
acquainted with job and perfect in preparing and weighting statements. When
this process is over, rating is placed on separated cards. Then these cards are
sorted by raters by who actually observed the accomplishment of the work.
Forced choice
This method is used particularly with the objective of avoiding scope for
personal prejudices. Under this method, they are forced to choose between
descriptive statements of seemingly equal worth describing the person in
question. Statements are chosen both the side favorable as well as unfavorable.
For example: the following two pairs of statements may be given to the rater and
the may be asked to select one statement from each pair that is represented by
superiors.
❖ Gives clear instruction to his subordinates.

❖ Can be dependable upon to complete any job assigned.

❖ Makes promises that he knows he cannot keep.

❖ Shows favoritism to some employees.

The rater may feel that either of the two statements in a pair is applicable, but he
must select the one that is more descriptive. Only one of the statements in each
pair is correct in identifying the better performance and his scoring key secret
from the rafter. In this bias is removed from the appraisal process.
Forced choice method is also not free from drawbacks.
❖ It is very expensive to install the system

❖ The procedure involved is very lengthy and hence more time consuming

❖ It is difficult for a superior to discuss rating switch subordinates because

the item is scored by the personnel department.

Critical incident methods

A critical incident means a significant act by an employee exceeding or failing
any of the requirements of his job. The method requires every supervisor to
record all such significant incidents in each employee's behavior which indicate
effective or successful action and those which indicate ineffective or poor
behavior. These are recorded in a specially designed notebook which contain
categories or characteristics under which various behaviors can be recorded.
Under the critical incident methods, the supervisor is supposed to retain from
passing overall judgment and concentrate upon discussing facts as he sees them.
Theoretically, this should provide a sound and an objective basis for appraisal of
the performance of an employee. Strictly speaking, the critical incident methods
are not a rating method as it requires the supervisor to pay close attention to what
an employee is doing.
This method suffers from the defect that outstanding incident happens so
frequently that an individual appraisal may not vary markedly between any two
time periods. It has been observed that most of the time the employees have
neither positive nor negative incident. If the critical event does not happen, it
will be difficult to rate an employee.

Field review method

Under this method, the supervisors are interviewed by an expert from the
personnel department. The expert questions the supervisor to obtain all the
pertinent information on each employee and takes notes in his book. Thus, there
is no rating from with factors or a degree, but overall ratings are obtained. The
workers are usually classified into three categories as outstanding, satisfactory,
and unsatisfactory.

CRITICISM OF TRADITIONAL METHOD

The general criticism of traditional performance appraisal system is that they are
too subjective in nature because all of them are based on personal judgment of
the rater. The personal judgment is always subjected to personal bias or
prejudice as well as pressure from certain other areas. The appraiser may not be
able to judge the competence of the employees because of lack of training.
Because of the judgmental role of the superior under the traditional system,
performance ratings are frequently subjected to a number of errors and
weaknesses which are discussed below.
a) Halo error
b) Central tendency
c) Leniency or strictness
d) Recent behavior bias
e) Miscellaneous bias
MODERN APPRAISAL METHODS:
There are two important methods of performance appraisal, which are used by
the modern concern. The first is Management by Objectives (MBO) which
represent result oriented appraisal. The second one is Behaviorally- Anchored
Rating Scale (BARS) which is based on rating the behavior of the subordinates

Management by Objective
It was Peter Ducker, who proposed goal setting approach to performance
appraisal, which he called 'Management by Objectives and self control'. This
approach was further strengthened by Douglas McGregor was concerned with
the fact that most traditional appraisal system involved ratings of traits and
personal qualities that he felt were highly unreliable. Besides, the use of such
trait ratings produced two main difficulties.
1. The management was uncomfortable about using them and resisted making an
appraisal.
2. It had a damaging effect on the motivation and development of
the subordinates.

Goal setting approach or "management objectives" is the same as behavioral

approach to subordinate appraisal, actually called work planning and review in
case of General Electric Co, U.S.A under this approach, an employee is not
appraised by his recognizable traits, but by his performance with respect to the
agreed goals or objectives. Thus, the essential feature of this approach is the
mutual establishment of job goals. The application of goal setting approach to
performance involves the following steps:
1. The subordinates discuss his descriptions with his superior and they agree
on the contents of his job and the key result areas.
2. The subordinates prepare a list of reasonable objectives for the coming period
of six to twelve months.
3. He sits with his superior to discuss these target and plans, and a final set
is worked out.
4. Check- points are established for the evaluation of progress, and the ways
of measuring progress are selected.
5. The superior and the subordinate's efforts to meet the target
mutually established.
The goal setting approach is based on clear and time bound objectives from the
corporate level to the operate level. This approach can be applied with great
success if the performance appraisal program consists of the following elements:
1. Good job description is available to help setting of goals from
different positions.
2. Superiors have trust in the subordinates to establish reasonable goals.
3. There is emphasis on solving problems rather than criticism of
the performance of the subordinates.
The goal setting approach has done away with the judgmental role of the
superior in the appraisal of their subordinates. It has led to greater satisfaction,
greater agreement, greater comfort and less tension and hostility between the
workers and the management. This approach is considerably superior to the
traditional approach of performance appraisal, It emphasis training and
development of individuals. It is also a problem solving approach rather than tell
and sell approach. This approach has also got a built -in device of self -appraisal
by the subordinates because they know their goals and the standards by which
their performance will be measured.

The goal setting approaches suffer from the following limitation:

1. This approach can be applied only when the goal setting is possible by
the subordinates. It is doubtful if such a procedure can be applied for the
subordinates.
2. This approach is not easy to administer. It involves considerable time,
through and contract between the superior and the subordinates. If the span of
supervision is quite large, it will not be possible for the superior to have
discussions with each and every subordinate for setting up mutually agreed
goals.
3. This approach mainly emphasis counseling, training and development. It is
argued that critical evaluation and modification to improve are incompatible.
But in practice, it is not possible to forego the critical aspect of performance
appraisal.
Behavioral Anchored Rating Scales
Behavioral anchor rating scale (BARS) is designed to identify the critical area of
performance of a job, and to describe the more effective and less effective job
behavior for getting results. Performance is evaluated by asking the rater to
record specific, observable job behaviors of an employee and then to compare
these observations with a "behaviorally anchored scale"
Behaviorally anchored rating scale approach combines elements of the
traditional rating scale and critical incident method. Using BARS, job behaviors
from critical incident- effective and ineffective behaviors- are described more
objectively. This method employs individual who are familiar with a particular
job to identify its major components. They are asked to rank and validate
specific behaviors for each of the components.
The various steps involved in developing BARS are as follows:

a. Identification of critical incident of behaviors.

People With knowledge of the task of the job to be probed such as holders and
supervisors, specific examples of effective and ineffective behavior related to job
performance.
b. Identification of performance dimensions
People are assigned the task of developing the instrument cluster pertaining to
the incidents into a small set of key performance dimension.
c. Reclassification of critical behavior
Another group of people who are knowledgeable about the job is instructed to
retranslate or reclassify the critical incidents generated under the previous step.
d. Assigning a scale value to the critical behavior
Each incident is related on a one-to-nine scale with respect to how well it
represents performance on the appropriate dimension.
e. Development of bar instrument
About six or seven incidents for each performance dimension- all having met
both the translation and standard deviation criteria — are sued as behavioral
anchor. The final BARS instruments consist of a series of vertical scale anchored
by the final incident. Each incident is positioned on the scale according to its
mean value.
360 DEGREE APPRAISALS AND FEEDBACK
The 360 degree appraisal involves rating of an employee or manager by
everyone above, alongside and below him. Although deployed mostly as a fact-
fining technique, 360 degree appraisal is also used to design promotion and
reward in the organization. Structured questionnaire is used to collect responses
about the employee from his superior’s peers and subordinates.

Merits of 360 degree appraisal

1. The 360 degree appraisal leads to greater self- awareness of those appraised. It
reveals strength and weaknesses in their working style.
2. The gap between self assessment and the view of one's colleagues or
peer group in reduced.
3. If facilitate empowerment of subordinates who get a say in the appraisal of
their bosses.
4. Inflexibility managers are forced to initiate self- change.
5. Facts about organizational culture and ambience are brought to light by the
multiple appraisals.

Limitation of 360 degree appraisal

1. The 360 degree appraisal system ignores performance appraisal in terms
of goals.
2. The candidate being appraised may not accept negative feedback from
the subordinates and peers. He might feel humiliated.
3. Responses from colleague often tend to be biased.
4. Linking rewards to finding less than 360 degree appraisal can prove to
be unfair.
5. The subordinates and might not be fully competent in appraisal.
 CHAPTER-4

DATA ANALYSIS AND INTERPRETATION

 1. Who evaluates your performance?
Opinion No. of Responses Percentage

HOD 46 92%

GM 04 08%

External Consultant 0 0%

Others 0 0%

Total 50 100%

Chart Title
50
45
40
35
30
25
20
15
10
5
0
HOD GM External Consultant Others

No. of Responses Percentage Series3

Interpretation :
From the above table it can be inferred that 94 % of the employee performance is
evaluated by the Head of the Department. The Head of the Department that is 3
persons 6% is evaluated by GM.
 2. Does Performance Appraisal is improving Employee Motivation and
Job Satisfaction?
Opinion No. of Responses Percentage

Yes 45 90%

No 05 10%

Total 50 100%

Table 1.7

Chart Title
50
45
40
35
30
25
20
15
10
5
0
Yes No

No. of Responses Percentage Series3

Interpretation
From the above table it can be inferred that 80% of the employees believe that
performance appraisal is improving their motivation and job satisfaction, but 20
% of the employees think performance appraisal is not improving their
motivation and job satisfaction.
 3. Do you have meeting in the beginning to explain & clarify activity task &
goals to be achieved?

Opinion No. of Responses Percentage

Yes 50 100%

No 0 0%

Total 50 100%

Table 1.8

Chart Title
60

50

40

30

20

10

0
Yes No

No. of Responses Percentage Series3

Interpretation
From the above table it can be inferred that 100 % of the employees have a
meeting in the beginning to explain and clarify activity task and goals to
be achieved in that year.
 4. Should organization have a fixed duration for Performance Appraisal?
Opinion No. of Responses Percentage

Yes 50 100%

No 0 0%

Total 50 100%

Table 1.9

Chart Title
60

50

40

30

20

10

0
Yes No

No. of Responses Percentage Series3

Interpretation
From the above table it can be inferred that 100% of the employees agreeing the
stating organization should have a fixed duration for performance appraisal.
 5. Whether the Performance Appraisal System is able to improve Performance?

Opinion No. of Responses Percentage

Yes 30 75%

No 20 25%

Total 50 100%

Table 1.10

Chart Title
35

30

25

20

15

10

0
Yes No

No. of Responses Percentage Series3

Interpretation
From the above table it can be inferred that 70% of the employees Performance
Appraisal System are able to improve Performance and 30% of the Performance
Appraisal System is not able to improve Performance.
 6. Do you think Performance Appraisal System will contribute
in identifying Potential Traits?

OPINION NO.OF RESPONSES PERCENTAGE

YES 40 80%

NO 10 20%

TOTAL 50 100%

Chart Title
45

40

35

30

25

20

15

10

0
YES NO

NO.OF RESPONSES PERCENTAGE Series3

Interpretation
From the above table it can be inferred that 60% of the employees think that
Performance Appraisal System will contribute in identifying Potential Traits of
themselves, 15% do not agree that and 10 % cannot say.
 7. Promotion process in the organization is based on-

Opinion No. of Responses Percentage

Performance 02 04%

Experience 05 10%

Educational Qualification 03 06%

All of the above 40 80%

Total 50 100%

Table 1.12

Chart Title
45

40

35

30

25

20

15

10

0
Performance Experience Educational Qualification All of the above

No. of Responses Percentage Series3

Interpretation
From the above table it can be inferred that 6% of employee think that promotion
is based on performance, 14 % employee thinks it is based on experience, 4% on
educational qualification and 76% thinks all the factors are required for
promotion.
 8. Do you think that the past and the present Performance Appraisal System
is Transparent & Free from bias?

Opinion No. of Responses Percentage

Yes 50 100%

No 0 0%

Total 50 100%

Table 1.13

Chart Title
60

50

40

30

20

10

0
Yes No

No. of Responses Percentage Series3

Interpretation
From the above table it can be inferred that 100% of the employees think that the
past and the present Performance Appraisal System is Transparent & Free from
bias.
 9. Are you satisfied with the current Performance Appraisal System?

OPINION NO OF RESPONSES PERCENTAGE

YES 75 75%

NO 25 25%

TOTAL 100 100%

Chart Title
80

70

60

50

40

30

20

10

0
YES NO

NO OF RESPONSES PERCENTAGE Series3

Interpretation
From the above table it can be inferred that 56% of the employees are highly
satisfied with the current Performance Appraisal System. 26% are satisfied with the
current Performance Appraisal System. 18% are just satisfied with the current
Performance Appraisal System.
 10. Do Lakshmi Hyundai provide opportunity for growth and development?

Opinion No. of Responses Percentage

Yes 46 92%

No 4 08%

Total 50 100%

Table 1.15

Chart Title
50
45
40
35
30
25
20
15
10
5
0
Yes No

No. of Responses Percentage Series3

Interpretation
From the above table it can be inferred that 94 % of the employees think Flora Hotels
provide opportunity for growth and development, 6% do not think so.
 11. Does Performance Appraisal helps to identify your strength
and weakness?
Opinion No. of Responses Percentage

Yes 50 100%

No 0 0%

Total 50 100%

Table 1.16

Chart Title
60

50

40

30

20

10

0
Yes No

No. of Responses Percentage Series3

Interpretation
From the above table it can be inferred that 100 % of the employees agreeing that
the Performance Appraisal helps to identify your strength and weakness.
12) Do you know about the methods of performance appraisal ?

Opinion No .of responses percentage

Yes 05 10%

No 45 90%

Total 50 100%

Chart Title
50
45
40
35
30
25
20
15
10
5
0
Yes No

No .of responses percentage Series3

13) Do you observe change in employee positions after performance appraisal?

Opinion No .of responses percentage

Yes 48 96%

No 02 04%

Total 50 100%

Chart Title
60

50

40

30

20

10

0
Yes No

No .of responses percentage Series3

14) Did you superior provides sufficient information about performance appraisal?

opinion No of responses percentage

Yes 05 10%
No 45 90%

Total 50 100%

Chart Title
50
45
40
35
30
25
20
15
10
5
0
Yes No

No of responses percentage Series3

15) Who mentors observe your performance?

Opinion No of responses Percentage

Supervisors 35 75%

Sub ordinates 5 08%

Management 7 12%

Senior employees 3 05%

Total 50 100%

Chart Title
40

35

30

25

20

15

10

0
Supervisors Sub ordinates Management Senior employees

No of responses Percentage Series3

16) Last performance appraisal conduct in lakshmi Hyundai ?

opnion No of responses Percentage

6 months ago 10 15%

1 years ago 30 65%

2 years ago 5 10%
More than 2years 5 10%
Total 50 100%

Chart Title
35

30

25

20

15

10

0
6 months ago 1 years ago 2 years ago More than 2years

No of responses percentage Series3

17) Does employee get regular feedback from the supervisor ?

opinion No .of responses Percentage

Yes 45 90%

No 5 10%
Total 50 100%

Chart Title
50
45
40
35
30
25
20
15
10
5
0
Yes No

No .of responses Percentage Series3

18) Do you get training sessions before commencement of work ?

Opinion No. of responses Percentage

Yes 10 20%

No 40 80%
Total 50 100%
 Chart Title
45

40

35

30

25

20

15

10

0
Yes No

No. of responses Percentage Series3

19) Which is the best way to improve employee performance ?

Opinion No of responses percentage

Motivation 10 15%
Training 05 10%
Appraisal 30 65%
Extra benefits 05 10%
Total 50 100%
 Chart Title
35

30

25

20

15

10

0
Motivation Training Appraisal Extra benefits

No of responses percentage Series3

20) What are the pre determined factors of appraisal in your company ?

Opinion No of responses percentage

Results 5 10%
Relationship 5 10%

Efforts 5 10%

All of the above 35 70%

Total 50 100
 Chart Title
40

35

30

25

20

15

10

0
Results Relationship Efforts All of the above

No of responses percentage Series3

CHAPTER 5

5.1 FINDINGS
5.2 SUGGESTIONS
5.3 CONCLUSION
5.1 FINDINGS

 In Lakshmi Hyundai the appraisal model which is followed is on an

annual basis starting from the month of April till March. Head of
Departments Performance Appraisal was done using Management by
objectives methods and workers Performance Appraisal was done using
900 method by their own department heads. The same method was being
used by the company from the beginning to the present time.

 Employee attitude towards the current performance appraisal method is

very much satisfactory, none of the employees said in the survey that
they were dissatisfied. From the HR department, we have found that all
the employees are fully cooperative in the full appraisal process. All
employees also agreed the fact that the past and present appraisal system
is transparent and bias free.

 According to the employees majority of them told that performance

appraisal was able to improve their performance. It also increased
motivation as well because they felt that company is interested in
their performance and adopting methods to improve it.

 The majority of the employees also told that performance appraisal system
was also helping in finding their hidden talent and putting into action as
well.

 Promotion process in this organization is based on a mix of experience,

performance and educational qualification, in which experience to be the
first factor in the hotel industry.

 The company also did provide opportunity for growth and development
and also helped to identify strength, weakness and hidden talent.

70
 5.2 SUGGESTIONS

 Implement more methods of performance appraisal and update the

employees about the type of method used for performance evaluation.

 The whole performance appraisal should be kept more transparent and

free from bias in the future.

 More opportunities should be provided for expressing their ideas

and plans to implement their level performance.
 More training should be offered to the mentally stressed staff which
improve their potential and result in top appraisal points.
 Overtime should be taken care of at the time of performance appraisal,
which would motivate the employees to perform better for longer
hours.
 Suggestion could be obtained from employees regarding framing the
performance appraisal system.

 Appraisal feedback is very important in any performance appraisal

program. Should be carefully communicated by making high
performers increase their target and low performers to build up their
confidence

71
5.3 CONCLUSION

Performance appraisal may be understood as the assessment of an individual's

performance in a systematic way. The performance being measured against such
factors as job knowledge, quality and quantity of output, initiative, leadership
abilities, supervision, dependability, co-operation, judgment, versatility, health and
the like. It also helps in developing strength and rectifies weakness of the
employees.

Lakshmi Hyundai has been conducting performance appraisal from the past years
from its formation. Employees were cooperative and fully supporting the
performance appraisal in the institution and it was found to be highly effective in
the employee’s performance.

Lakshmi Hyundai has been running successfully for past several years and has
created a good name among its customers and society. People having poor
background are given training and provided with jobs. Performance appraisal can
be conducted more effectively by using the right tools and properly reviewing and
updating the performance appraisal program. Suggestion from employees and
experienced personnel can further enhance and make the performance appraisal an
ideal evaluation system.

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BIBLIOGRAPHY
Books

 Kothari C.R, “Research methodology”, New Delhi, New Age International

(P) Ltd, 2006.

 Chabbra T.N, ”Human Resource Management”, Fifth Revised Edition, New

Delhi, Published By Dhanpat Rai and Co. (P) Ltd, Educational and
Technical publisher, 2005.

 Aswathappa, “Human Resource Management”, Fifth Edition, Tara Mc

Graw- Hill publishing Company Ltd, 2005.

 Milovich T.George and Newman M. Jerry, “Compensation Management”,

New Delhi, Tata Mc Graw-Hill Publication Company Ltd, 2005.

 Flora hotel Cochin Records.

Web sites
 en.wikipedia.org/wiki/Performance_appraisal
 http://www.hrwale.com/performance-management/performance-appraisal-
methods/

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 ANNEXTURE
QUESTIONNAIRE
Name :

Gender : ( ) Male ( ) Female

Age group : ( ) 20-30
( ) 31-40
( ) 41-50
( ) 51-60
Experience : ( ) Less than 3 years
( ) 4-8 years
( ) 9-15 years
( ) More than 15 years
Department:
Qualification

1) Who evaluates your performance?

a. HOD
b. GM
c. External consultant
d. Others

2) Does Performance Appraisal is improving Employee Motivation

and Job Satisfaction?

a. Yes
b. No

3) Do you have meeting in the beginning to explain & clarify activity task
& goals to be achieved?

a. Yes
b. No

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4) Should organization have a fixed duration for Performance Appraisal?

a. Yes
b. No

5) Whether the appraisal system is able to improve performance?

a. Yes
b. No

6) Do you think that the Performance Appraisal System will also

contribute in Identifying Potential Traits?

a. Yes
b. No
c.Cannot say

7) Promotion process in the organization is based on-

a. Performance
b. Experience
c.Educational Qualification
d. All of the above

8) Do you think that the past and the present Performance Appraisal
System is Transparent & Free from Bias?

a. Yes
b. No

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9) Are you satisfied with the current Performance Appraisal System?

a. Highly satisfied
b. Satisfied
c.Just satisfied
d. Dissatisfied

10) Lakshmi Hyundai provide opportunity for growth and development?

a. Yes
b. No

11) Does Performance Appraisal helps to identify your strength

and weakness?
a. Yes
b. No

12) Do you know about the methods of performance appraisal?

a. Yes
b. No

13) Do you observe change in employee positions after performance

appraisal ?

a. Yes
b. No

14) Did you superior provides sufficient information about performance

appraisal?

a. Yes
b. No

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15) Who mentors observes your performance?

a) Superior
b) Sub ordinates
c) Management
d) Senior employee

16) Last performance appraisal conducted in lakshmi Hyundai ?

a) 6 months ago
b) 1 year ago
c) 2 years ago
d) More than 2 years

17) Does employee get regular feedback from the supervisor ?

a) Yes
b) No

18) Do you get training sessions before cominsement ?

a) Yes
b) No

19) Which is the best way to improve employee performance ?

a) Motivation
b) Training
c) Appraisal
d) Extra benefits

20) What are the best way to improve employee performance ?

a) Results
b) Relationship
c) Efforts
d) All of the above

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Give your suggestion for the performance appraisal system in
LAKSHMI HYUNDAI VIZAG

78