ACKNOWLEDGEMENT Executive Summery About the Company Performance Appraisal Performance appraisal in Tata motors Research Annexure BibliographyACKNOWLEDGEMENT Words are only representations of our regards and gratitude that we have towards our actions and their inherent associations. As a matter of fact, without co-operation, no thought could be coined into real action. Consistent motivation and invaluable support throughout any project is an issue that ‘cannot quantitatively measured. These acknowledgements are only a fraction of regards towards their gestu ‘Our sincere thanks to Prof Skilpi Saxena We express our deep sense of gratitude to ma'am who has been a source of inspiration throughout the course of this work with her inestimable advice and moral encouragement. Our Group members who have given an immense support throughout the ‘course of the Project and rest who all are attached to this Project directly or Indirectly. We would like to thank HR head of Tata Motors Mrs. Monica Ahuja who helped me in completion ‘of my project. Lastly we would like to thank our Dean ma‘am Monica Laf for her continuous. ‘encouragement and guidance throughout our project.EXECUTIVE SUMMARY Managing human resources in today’s dynamic environment is becoming more and more ‘complex as well as important, Recognition of people as a valuable resouree in the organization has led to increases trends in emplayce maintenance, job security, etc. My research project deals with “Performance Appraisal as carried out at Tata motors *, In this report, have studied Xevaluated the performance appraisal process as itis carried out in the company. ‘The first section of my report deals with a detailed company profile. It includes the company's jory: its activities and operations, organizational structure, ete, this section attempts to give detailed information about the company and the nature of it’s functioning. ‘The second section deals with performance appraisal. In this section, a brie conceptual ‘explanation to performance appraisal is given. It contains the definition, process and significance ‘of performance appraisal, In the third section of my report, 1 have conducted a research study to evaluate the process of performance appraisal at Tata motors.; this section also contains my findings, conclusions, suggestions and feedback. ‘The fourth and final section of this report consists of extra information that I related to the main contents of the report. These annexure includes the Questionnaire on the basis of which the primary data was collected and research study was conducted.TATA MOTORS als‘Tata Motors Limited formerly is an Indian multinational automotive manufacturing company headquartered in Mumbai, India and a subsidiary of the Tata Group. Its products include ‘passenger cars, trucks, vans and coaches, It is the world’s eighteenth-largest motor vehicle manufacturing company, fourth-largest truck manufacturer and second-largest bus manufacturer by volume. ‘Tata Motors has auto manufacturing and assembly plants i: 1) Jamshedpur 2) Pantnagar 3) Lucknow 4) Sanand 5) Dharwad 6) Pune India, as welll as in Argentina, South Africa, Thailand and the United Kingdom. Tata Motors has produced and sald over 6,5 million vehieles in India since 1954° Originally a manufacturer ‘of locomotives, the company manufactured its first commercial vehicle in 1954 in a ‘collaboration with Daimler-Benz AG, which ended in 1969, In 2010, Tata Motors surpassed Reliance to win the coveted title of ‘India's most valuable brand’ in an annual survey conducted by Brand Finance and The Economie Times, Tata Motors was ranked as India's 3rd Most Reputed ‘Car manufacturer in the Reputation Benchmark Study - Auto (Cars) Sector, launched in April 2012 Tata Motors has been ranked 314th in the Fortune Global 500 rankings of the world’s biggest corporations for the year 2012, Tata Motors is a cross-listed company; Its stock trades on the Bombay Stock Exchange and the New York Stock Exchange as TTM. The second-generation Tata Indica; one of the best selling cars in the history of the Indian automobile industry‘Tata Nano, the world's cheapest car ‘Tata entered the commerei vehicle sector in 1954 after forming a joint venture with Daimler- Benz of Germany. After years of dominating the commercial vehiele market in India, ‘Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra, a multi utility vehicle, After the launch of three more vehicles, Tat Estate (1992, a stationwagon design based on the ‘earlier TataMat ile’ (1989), a light commercial vehicle), Tata Suma (LCV, 1994) and Tats Safari (1998, India’s first sports utility vehicle). Tata launched the Indica in 1998, the first fully indigenous Indian passenger ear, Although initially criticised by auto-analysts, its excellent fuel economy, powerful engine and an aggressive marketing strategy made it one of the best selling‘cars in the history of the Indian aitomobile industry. A newer version of the car, named Indica V2, was a-major improvement over the previous version and quickly became a mass-favorite. Tata Motors also successfully exported large quantities of the ear to South Attica. The success of Indica played a key role in the growth of Tata Motors In 2004 Tata Motors acquired Dacwoo's South Korca:based truck manufacturing unit, Daewoo ‘Commercial Vehicles Company, liter renamed Tata Daewoo, In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bis and couch manufacturer Hispano Carrovera, Tata Motors continued its market area expansion throu; introduction of new products such as buses (Starbus & Globus, jointly developed with subsidiary Hispatio Carrocera) aie trucks (Novis, jointly developed with subsidiary Tata Daewoo), In 2006, Tata formed a joint venture with the Brazil-based Mareopalo, Tata Mareopolo Bus, to manufacture fully built buses and coaches. In 2008, Tata Motors acquired the British car maker Jaguar Land Rover, manufacturer of the Jaguar, Land Rover and Daimler luxury car brands, from Ford Motor Company. In May 2009 ‘Tata inveited the Tata World Truck range jointly developed with Tata Daewoo, Debuting in South Korea, South Africa, the SAARC countries and the Middle-East by the end oF 2009. Tata acquired full ownership of Hispano Carrocera in 2009. In 2010, Tata Motors acquired am 80% stake in the ltaly-baseid design and engineering company Trilix for a consideration of €1.85 million, The acquisition formed part of the company’s plan to enhanee its styling and design capabilities. In 2012, Tata Motors announced it will invest around Rs 600 crore on developing Futuristic lnfantry Combat Vehicles in colloboration with DRDO.‘Operations ‘Tata Motors has vehicle assembly operations in India, the United Kingdom, South Korea, ‘Thailand, Spain and South Africa. It plans to establish plants in Turkey, Indonesia and Eastern Europe:Tata Motors' principal subsidiaries include Jaguar Land Rover, Tata Daewoo and Tata Hispano, ‘Tata Motors is among the top three in passenger vehicles in India with products in the compact, midsize car and utility vehicle segments. ‘The company’s manufacturing base in India is spread aero: © Jamshedpur (Jharkhand) Pune (Maharasht Lucknow (Uitar Pradesh) Pantnagar (Uttarakhand) Dharwad (Kamataka). ‘The company is establishing a new plant at Sanand (Gujarat). Tata's dealership, sales, serviee and spare parts network comprises over 3500 touch points, Tata also has franchisce/joint venture assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal Tata has dealerships in 26 countries across 4 continents, Though Tata is present in many countries it has only managed to create a large consumer base in the Indian Subcontinent, namely India, Bangladesh, Bhutan, Sri Lanka.and Nepal, Tata has a growing, ‘consumer base in Italy, Spain and South Africa, Tata Motors has more than 250 dealerships in more than 195 cities across 27 states and 4 Union Territories of India, It has the 3rd largest Sales and Service Network after Maruti Suzukiand Hyundai. In 2004, Tata Motors acquired Daewoo Commercial Vehicte Company of South ‘To expand the product portfolio Tata Motors recently introduced the 23MT GVW Tata Novus from Daewoo’s (South Korea) (TDC) platform. Tata plans to leverage on the strong presence ‘of TDCY in the heavy-tonnage range and introduce products in India at an appropriate time, This was mainly to cater to the international market and also to cater to the domestic market where amajor improvement in the Road infrastructure was done through the National Highway Development Project. Tata Daewoo is the second-largest heavy commercial vehicle manufacturer in South Korea. Tata Motors has jointly worked with Tata Daewoo to develop trucks stich as Novus and World Trick and buses ineluding GloBus and StarBus, In 2012, Tata will start developing.a new line to manufacture competitive and fuel efficient commercial vehicles to face the competition posed by the eniry of intemational brands like Mercedes-Benz, Volvo and Navistar into the Indian market Products Tata Starbus Low Floor 1610 Tata Marcopoto buses in the Delhi BRT Commercial vehicles Military vehicles 5. Electric vehiclesPERFORMANCE APPRAISALINTRODUCTION TO HUMAN RESOURCE MANAGEMENT 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 resouree function is performed efficiently. “People are our most valuable asset” is a cliché, which no member of any senior management 1m would disagree with, Yet, the reality for many organizations is that their people remain ndervalued, under trained and underutilized. “The market place for talented, skilled people is competitive and expensive. Taking on new staff can be disruptive to existing employees. Also, it takes time to develop ‘cultural awarenes product / process / organization knowledge and experience for new staff’ members FUNCTIONS OF HUMAN RESOURCE MANAGEMENT. Following are the various functions of Human Resouree Management that are essential for the effective functioning of the organization 1. Reeruitment lection: Induction Performance Appraisal . Training & Development Recruitment ‘The process of recruitment begins after manpower requirements are 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 ‘qualifications, training and experience required.Induction Induction is the technique by which a new employee is rehabilitated into the changed surroundings 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 future development. It consists of all formal procedures used in working organizations and potential ‘of employees. According to Flippo, “Performance Appraisal is the systematic, periodic and a important rating of an employce’s excellence in matters pertaining to his present job and his potential fora better job." CHARACTERISTICS 1. Performance Appraisal is a process. It is the systematic examination of the strengths and weakness of an employee in terms of his job. Itis scientific and objective study. Formal procedures are used in the study. It is an ongoing and continuous process wherein the evaluations are arranged periodically according to a definite plan. ‘The main purpose of Performance Appraisal is to secure information necessary for making objective and correct decision an employee.PROCESS ‘The process of performance appraisal: lishing performance standards Communicating the Standards Measuring Performance |. Comparing the actuat with the s Discussing the appraisal Taking Corrective Action LIMITATIONS Errors in Rating Lack of reliability Negative approach Multiple objectives Lack of knowledge METHODS OF PERFORMANCE APPRAISAL ‘The foregoing list of major program pitfalls represents a formidable challenge, even considering 1¢ available battery of appraisal techniques. But attempting to avoid these pitfalls by doing away with appraisals themselves is like trying to solve the problems of life by committing suicide, The more logical task is to identify those appraisal practices that are (a) most likely to achieve a particular objective and (b) least vulnerable to the obstacles already discussed. Before relating the specific techniques to the goals of performance appraisal stated at the outset ‘of the article, We shall briefly review each, taking them more or less in an order of inereasing ‘complexity. The best-known techniques will be treated most briefly.ESSAY APPRAISAL In its simplest form, this technique asks the rater to write a paragraph or more covering an individual's strengths, weaknesses, potential, and so on, In most selection situations, particularly: hose involving professional, sales, or managerial positions, essay appraisals from former employers, teachers, or associates carry significant weight GRAPHIC RATING SCALE This technique may not yield the depth of an essay appraisal, but it is more consistent and reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work (is he outstanding, above average, average, or unsatisfactory?) and on a variety of other factors that vary with the job but usually include personal traits like reliability and cooperation. It may also include specific performance items like oral and written communication, FIELD REVIEW ‘The field review is one of several techniques for doing this, A member of the personnel or central administrative staff meets with small groups of raters from cach supervisory unit and ‘goes over each employee's rating with them to (a) identify areas of inter-rater disagreement, (b) help the group arrive at a consensus, and (c) determine that each rater conceives the standards similarly. FORCE HOICE RATING Like the field review, this technique was developed to reduce bias and establish objective standards of comparison between individuals, but it does not involve the intervention of a third party. To avoid, or to deal with, the feeling that they are being judged by unfairly high standards, ‘employees in some organizations are being, asked to set - or help set - their own performance goals, Within the past five or six years, MBO has become something ofa fad and is so famitiar to most managers that I will not dwell on it here. RANKING METHODS For comparative purposes, particularly when it is necessary to eompare people who work for different supervisors, individual statements, ratings, or appraisal forms are not particularly: useful. Instead, it is necessary to recognize that comparisons involve an overall subjectivejudgment to which a host of additional facts and impressions must somehow be added. There is no single form or way to do this. ‘The best approach appears to be a ranking technique involving pooled judgment. ‘The two most effective methods are alternation ranking and paired comparison ranking. 1, “Aliernation ranking": Ranking of employees from best to worst on a trait or traits is another method for evaluating ‘employees. Since it is usually easier to distinguish between the worst and the best employees n (o rank them, an altemation ranking method is most popular. Here subordinates to be rated are listed and the names of these not well enough to rank are crossed. Then on a form as shown below, the employee who is highest on the characteristic being measured and the one who is the lowest are indicated. Then chose the next highest and the next lowest, alternating between highest and lowest until all the employees to be rated have been ranked. 2. “Paired-comparison ranking”: This technique is probably just as accurate as alternation ranking and might be more so. But With large numbers of employees it becomes extremely time consuming and cumbersome, Both ranking techniques, particularly when combined with multiple rankings (i.e., when two or more people are asked to make independent rankings of the same work group and their lists are averaged), are among the best available for generating valid order-of-merit rankings for salary administration purposes. ASS SSMENT CENTERS So far, we have been talking about assessing past performance. What about the assessment of future performance or potential? In any placement decision and even more so in promotion decisions, some prediction of future performance is necessary, How can this kind of prediction be made most validly and most fairly? 360 DEGREE FEEDBACK Many firms have expanded the idea of upward feedback into what the call 360-degree Feedback. ‘The feedback is generally used for training and development, rather than for pay increases. Most 360 Degree Feedback system contains several common features, Appropriate parties — ‘peers, supervisors, subordinates and customers, for instance ~ complete survey, questionnaires. ‘on an individual, 360 degree feedback is also known as the multi-rater feedback, whereby ratings«are not given just by the next manager up in the organizational hierarchy, but also by peers and subordinates. Appropriates customer ratings are also included, along with the element of self appraisal, Once gathered in, the assessment from the various quarters are compared with one- another and the results communicated to the manager concemed. useful for couching pumposes is, of course, MBO. Like the critical incident method, it focuses on actual behavior and actual results, which can be discussed ‘objectively and constructively, with little or no need for a supervisor ta “play Gad." Advantages Instead of assuming traits, the MBO method concentrates on actual ouicomes, IF the employee meets or exceeds the set ubjectives, then he or she has demonstrated an acceptable level af job performance. Employees are judged according to real ouicomes, and not on their potential for ‘success, or on someone's subjective opinion of their abilities. ‘The guiding principle of the MBO approach is that direct results can be observed easily. The MBO ricthod recognizes the fact that itis difficult 10 neatly dissect all the complex and vatied elements that go to make up employce performance. MBO advocates: claim that the performance of employees cannot be broken up into so many constituent paris, but to pul all the parts together and the performance may be direelly observed andl ‘ineasured, Disadvantags This approach can lead to unrealistic expectations about what can and cannot be reasonably accomplished, Supervisors and subordinates must have very good "veality checking” skills to use MBO sppraisal methods. They will need these skills during the initial stage of objective setting, and far the purposes of self-auditing and self-monitoring, Variable objectives may cause employee confusion. It is also possible that fluid objectives may be distorted to disguise or justify failures in performance. Benefits of Performane: isa Meastires an employee's performance. Helps in clarifying, defining, redefining priorities and objectives Motivates the employee through achievement and feedback. Facilitates assessinent and agreement of taining needs, Helps in identification of personal strengths.and weakne Plays an important role in Personal career and succession planning. Clarifies team roles and facilitates team building.+ Plays major role in organizational training needs assessment and analysis, + Improves understanding and relationship between the employee and the reporting manager and also helps in resolving confusions and misunderstandings, © Plays an important tool for communicating the organization’s philosophies, values, aims, strategies, priorities, etc among its employees. «Helps in counseling and feedback, Rating Errors in Performance Appraisals Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as ‘rating errors’, These errors can seriously affect assessment results. Some of the most common railing errors are: ~ Leniency or severity: - Lenieney or severity on the part of the rater makes the assessment subjective, Subjective assessment defeats the very purpose of performance appraisal. Ratings are lenient for the following reason a) The tater may feel that anyone under his or her jurisdiction who is rated unfavorably will reflect poorly on his or her own worthiness, b) He/She may feel that a derogatory rating will be revealed to the rate to detriment the relations between the rater and the rate, ¢) He/She may rate leniently in order to win promotions for the subordinates and therefore, indireetly increase his/her hold over him. ‘Central tendency: - This occurs when employees are incorrectly rated near the average or to play safe, This safe playing attitude stems from middle of the scale. The attitude of the rate ‘certain doubts and anxieties, which the raters have been assessing the rates Halo errar:~ A halo error takes place when one aspect of an individual's performance influences the evaluation of the entire performance of the individual. The halo error oceurs when an employee who works late constantly might be rated high on productivity and quality of output as well ax on motivation, Similarly, an attractive or popular personality might be given a high ‘overall rating, Rating employees separately on each of the performance measures and ‘encouraging raters to guard against the halo effect are the two ways to reduee the halo effect, Rater effect: -This includes favoritism, stereotyping, and hostility. Extensively high or low score are given only to certain individuals or groups based on the rater’s attitude towards them and not ‘on actual outcomes or behavior and friendship biases are examples of this type of ‘error.Primacy and Regeney effects: - The rater’s rating is heavily influenced either by behavior ‘exhibited by the ratee during his early stage of the review period (primacy) or by the outcomes, ‘or behavior exhibited by the rate near the end of the review period (regency), For exampl n captures an important contract/sale just before the completion of the appraisal, the timing of the incident may inflate his or her standing, even though the overall performance of the ‘sales person may not have been encouraging, One way of guarding against such an error is to ask the rater to consider the composite performance of the rate and not to be influenced by one incident or an achievement. Performance dimension order: « Two or more dimensions on a performance instrument follow ‘cach other and both describe or rotate to a similar quality. The rater rates the first dimensions accurately and then rates the second dimension to the first because of the proximity. If the dimensions had been arranged in a significantly different order, the ratings different. it have been Spillover effect: - This refers lo allowing past performance appraisal rating lo unjustifiably influence current ratings, Past ratings, good or bad, result in similar rating for current period although the demonstrated behavior does not deserve the rating, good or bad ROLES IN THE PERFORMANCE APPRAISAL PROCESS a) Reporting Manager @ — Provide feedback to the reviewer / HOD on the employees’ behavioral traits indicated in the PMS Policy Manual @ sures that employee is aware of the normalization / performance appraisal process © — Address employee concerns / queries on performance rating, in consultation with the reviewer b) Reviewer (Reporting Manager's Reporting Manager) ® Discuss with the reporting managers on the behavioral traits of all the employees for whom he / she isthe reviewer@ Where required, independently assess employees for the said behavioral traits; such assessments might require collecting data direetly from other relevant employees ¢) HOD (In some cases, a reviewer may not bea HOD) © Presents the proposed Performance Rating for every employee of his / her function to the Normalization committee, @ HOD also plays the role of a normalization committee member @ Owns the performance rating of every employee in the department d) HR Head @ Secretary to the normalization committee @ Assists HOD's / Reporting Managers in communicating the performance rating ofall the employees ‘e) Normalization Committee © Decides on the final bell curve for each funetion in the respective Business Unit / Circle @ — Reviews the performance ratings proposed by the HOD"s, specifically on the upward / downward shift in ratings, to ensure an unbiased relative ranking of employees on overall performance, and thus finalize the performance rating ofeach employee KEY CONCEPTS IN PERFORMANCE MANAGEMENT SYSTEM In order to understand the Performance Management System at Tata Motors some concepts need to be explained which play a very important role in using the PMS successfully. ‘They are: © KRA’S (KEY RESULT AREAS): The performance of an employee is largely dependent on the KRA score achieved by the employee during that particular year. Thus, it is necessary to answer a few basic questions ic. © What are the guidelines for setting the KRA’s for an employee? © How does an employee write down his KRA'S for a particular financial year?a KRA’s: The Four Perspectives, How is the KRA score calculated for an employee on the basis of the targets sets and targets achieved? BEHAVIORAL TRAITS: Some ofthe qualitative aspects of an employees’ performance combined with the general behavioral traits displayed by the employee during a year constitutes his behavior traits, An employee is assigned the rating on the basis of the intensity of the behavior displayed by him. They play a very important role in the deciding the final performance rating for an employee as is even capable of shifting the rating one level upwards/downwards. BHARTI 2010 LEADERSHIP COMPETENCY FRAMEWORK: This competency framework is a simple and structured way to describe the elements of behaviors required to perform a role effectively. This framework also tries to assess the performance of an employce objectively. THE PERFORMANCE RATING PROCE: The rating process tries to explain the four different types of rating that an employee can achieve ie. EC, SC, C and PC. It also explains the criteria, which is considered for awarding any of these ratings to the employee, PROMOTION AND RATING DISRTRIBUTION GUIDELINES: The promotion and normal distribution guidelines provide the framework within which the performance appraisal process has 10 work. It is very important that the HR department pays due attention to these guidelines while preparing the bell curves for various functions and the consolidated bell curve for all the functions, These guidelines also help in deciding upon the promotion cases in a year.PERFORMANCE RATING PROCESS EXCEPTIONAL CONTRIBUTOR (EC! Performs consistently and substantially above ‘expectations in all areas Achieves afinal seore greater than a equal'to 115% Consistently delivers on stretch targets \s proactive Spots and anticipates problems, implements solutions Sees and expioits opportunities Delivers ahead of time Sees the wider pleture-impacts across business Focuses on what's good for the business Seen as role model by others Recognized as exceptional by ather functions aswell Motivates others to solve problems Develops others Provides apen and honest feedback Able to establish and lead cross-functional teams SIGNIFICANT CONTRIBUTOR IS Performs above expectations in all areas Achieves final score between 100-114%6 Versatile In his/her area of operation DDevelons creative solutions and requice Ute / minimal supervision Sets examples for others Take ownership of awn development Coaches others Demonstrates business initiative 1s self motivated Supportive team player Leads own team very effectively Demonstrate functional initiativePerformance Appraisal In Tata MotorsTata Motors Ideologies ‘VISION “To be the world class corporate constantly furthering the interest of all stakeholder HR VISION Lead and Facilitate continuous change towards organizational excellence ; create a learning and vibrant organization with high sense of pride amongst its members New Appraisal System based on KRAs & Targets: Review of Targets at regular Interva © People Development an important KRA REWARD. © Promotions based on Performance © Productivity & Profitelinked Incentive Schemes: © Training including Long-term Term ‘CAREER DESIGN + Performance & Potential based Appraisals + Fast Track Option for Migh-performers + Promotions after Managers Vacancy based + Interviews for promotions above Managers+ Selection of Supervisors:~ Performance / Attendance / Discipline record Written Test & Interview + Job Rotation - including Inter-functional RETENTION & EMPLOYEE WELFARE Residential Colonies for Employees Hospitalization Reimbursement — on aetual without Ceiling Vehicle Loans Household Equipment Loans House Building Advance Annual Adv; PF Trust ~ for better Mgt., Service & speedy redress: Proposed MUL Pension Scheme + For better quality and productivity + Through involvement of all employees and teanrwork Criteria © Idea © Efforts © Result : Cost reduction / Q Improvement / Productivity ImprovementHR INITIATIV) + REALIGNING ORGANISATION CULTURE BASED ONNEW VISION & VALUES + OBJECTIVE PERFORMANCE MANAGEMENT & DEVELOPMENT SYSTEM. + PERFORMANCE LINKED REWARD AND RECOGNITION SYSTEM + CAREER PLANNING & PROMOTION POLICY + REVISED RECRUITMENT POLICY + COMPETENCY MAPPING + STRONG FUCUS ON TRAINING INITIATIVES- BUILD A LEARNNG ORGANISATION- CONTINUOUS VALUE ADDITION TO PR IONAL SKILL- CUSTOMISED TRAINING- TRAINING TO THE PERSONNEL OF BUSINESS PARTNERS. + INTERNAL COMMUNICATION * UNION ALIGNMENT INVOLVMENT & PARTICIPATIONTata Motors Appraisal System sion with HR head Mrs. Monika Ahuja of Tata Motors (Iucknow branch), _gave us the insight in the performance appraisal system followed in the company, The appraisal model which is followed on annual basis starting fromm the month of April till March has been ‘extremely effective for the employees of Tata Motors, Half yearly appraisal system, was started a year ago. This activity was started keeping in mind the dynamic behavior of the industry. With a half yearly appraisal system, the employee gets feedback twice a year, which gives him/her a chance to re-look at his/her approach of working. Necessary steps are also underiaken for employees who deviate from their goals. They have introduced a comprehensive system of quarterly appraisals’ where an employee selests his/her ‘own goals or Key Result Area (KRAs) every quarter and hiner self assesses his/her own performance against these parameters, At Spice jet while formally the process is annual, for ‘several of the frontline employees, there are performance related quarterly payouts designed to reward them with incentives for their performance. This has resulted in quarterly assessments. which are aligned overall to annual KRAS Tata Motors have a midterm review forall those who have been performers, thereby creating an ‘expectation amongst the employces of an increase in salary twice a year if they perform well ‘They used to have annual appraisals earlier, but then they felt that the incentives are not enough to motivation the sales depariment, which generates major revenues or the organization, they do give monetary increments and designation hikes, according to the performanee. If the ‘employee deserves both, they give hinvher both the advantages otherwise at least one of them, Designation hikes are given annually. These are proportional to effort of the individual, team and the department. Designation changes are given keeping in mind the immense responsibility one has to shoulder in a high rank. Monetary increments are primarily incentives that are given either n cash or kind for example they give them travel package within India or outside. Also, they ing incentive scheme in which employees ean them annually with interest. ‘To meet the new demands of the business and to motivate the employees for higher performance, they have started linking a part of the salary increase to individual performance measures as variable pay. At present, between 6 10 8 percent of the compensation is variable pay, which they are planning to increase over a period of time. Executives are eategorized in levels based an their performances in a relative ranking and based on outcome performance-linked pay is awarded..Goal-Setting Model A goal selting program in an organization requires careful planning. As shown in the figure, the first three factors in goal setting process are establishing the goal, achieving goal commitment, and overcoming resistance to goal acceptance. Goals can be established ina variety of ways. Best way is to set by joint participation between the employee and the supervisor. This method often leads to employee commitment, a.crucial ingredient in effective goal Goal Setting S.M.A.R.T.* Goals + Specific — precise and detailed + Measurable — with eriteria for determining progress sue * Achievable ~ attainable and action-oriented i= relevant and aligned clated — grounded within a time-frame For this purpose, an online template is circulated in the organization, Superiors fill out that form keeping in view the performance of their subordinate over the year. This feedback becomes the basis of the promotion of the employees. Superior is responsible for categorizing the cmployess in four category, namely — A B Cc D This categorization is done both on the basis of performance and the goals they were given, ‘This whole system is commonly known as 0 degree ay sal sy also calle:RESEARCHAbstract Tata Motors is India's One of the most successful automobile company. It currently Employees $9,759 (2012) personnel , who are constantly evaluated and appraised . This Gives us the ‘opportunity to study the performance appraisal method by the company and it’s efficiency towards employees as well as Organization, Objective of the Study ‘To carry out the study at Tata Motors , we framed the following objectives |. Kdontifieation of the technique of performance appraisal followed in Tata Motors 2, Employee attitude towards the present appraisal system, 3. Review of the current appraisal in order to 1. Enhance productivity 2. Attain global standards 4, To provide suggestions & recommendations from the study conducted. Hypotheses of the Study 1. Performance Appraisal is not having positive effect on Tata motors employee on Lucknow Branch. (Ho) 2. Periormance Appraisal Is having positive effect on Tata Motors Employees of Lucknow braneh. (Ha)RESEARCH METHODOLOGY : ‘The Study is Primarily Based on the Primary data Collected through Questionnaire from Tata Motors Employees. AMPL AN: Sample Size = 50 Employees Sample Area = Chinhat , Lucknow Duration = 6 weeks. DATA COLLECTION: Data Sources (i) Secondary Data through Internet (ji) Primary Data through Questionnaire (iii) Contact Method (iv) PersonalYears of service 2%, 1 below 2yrs mrsyes me S10yrs 1 1oyrs and above Interpretation From the above pie chart we conclude that the maximum year of service of the emplayces of Tata Motors in Lucknow is maximum between 5-10 years(i.¢ 54%) and minimum is below years (i.e 4%),Awareness of technique of Performance Appraisal No. of Responses From the above pie chart we conclude that maximum employees are aware of their performance appraisal technique (i.e 72%) and the employees not aware of it is minimum (i.e 28%)Employees’ opinion as to the present appraisal system, 2% fully satisfied satisfied meant say mDissatistied ‘Options No. of Responses Fully Satisfied: Satisfied Can't Say Dissatisfied terpretation- From the above pic chart we conclude that maximum employees are satisfied with the present appraisal system( i.e 44%) and minimum (i.e 2%) are dissatisfied.Employee perception as to the frequency of appraisal ‘Once during the service period Continuous Never sm Cant Say Qptions No. of Responses lonce During The 1 IService Period IContinwous. INever Ican’t Say nterpretation: From the above pie chart we find that the maximum (i.e 92%) of the employees think that the frequency of appraisal must be continuous whereas minimum (i.e 0%) none of the employe fee! that Tata motors should not appraise.Qs. If continuous appraisal - what should be the gap between two appraisal period m quater mHall-Yearly Yearly ptions No. of Responses luarterly 10 Half Yearly 2 Nearly 18 terpretation- From the above pie chart we conclude that maximum (ie 44%) of the employees want to consider performance appraisal half yearly whereas minimum (ic 20%) of them want it quarterly.How Performance Appraisal affects the productivity of the employees Indifferent | Demotivated From the above chart we conclude that the affect of performance appraisal with a positive feedback and motivated results lead to maximum productivity of employeestie 76%) whereas none of the employees are demotivated. Giving negative feedback with demotivating results leads to minimum productivity of employees: (i.e 56%) whereas minimum number of employees would be indifferent towards it. Giving « neutral feedback with motivating results Leads to average productivity of employees (i. 48%) whereas only a few lead to low produetivity with demotivating results (ie 10%)Who should do the appraisal? Superior Peer = Subordinate 1 Self appraisal 1 Consultant m= Aof the Above ‘= Superior+Peer of Responses Superior + Peer Interpretation- From the above pie chart we conclude that the maximum employees (i.e 24%) want to get the appraisal through superior, self appraisal, consultant. Whereas none of them want to get it done from their peers and subordinates,Does appraisal help in polishing skills and performance area? mes mNo Somewhat No Somewhat Interpretation: If the process of appraisal does not lead to the improvement of the skills and proficieney 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 ing the skills of the employees. Nearly 10 % of the respondents view that it does not serve is purpose and around 16 % were not able to respond as to whether it serve any such purposes ‘or not.Does personal bias creeps-in while appraising an employee INo. of Responses II 9 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 50 respondents, as. hhuge as $2 % respondents that personal bias do ereep 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,If given a chance, would employees like to review the current appraisal technique lerpretation= From the above pie chart we conclude that the maximum employees (i.e 32%) do not want to review the perfarmance appraisal system whereas minimum (i.¢ 24%) can’t comment about the same.Appropriate method of conducting the performance appraisal ‘= Ranking method sm paired comparison \mcritical Incidents =mg0 sm Assessment Centee 360 degree No. of Responses Ranking Method Paired Comparison |Critical Incidents MBO [Assessment Centre 360 degree Interpretation From the above pie chart we conclude that the maximum (i.e 58%) of the employees prefer the 360 degree technique of performance appraisal whereas the minimum (i.e 0%) want paired ‘comparison technique,Does performance appraisal leads to identification of hidden potential INo. of Responses 48 Anterpretation- From the above pie chart we interpret that maximum (i.¢ 96%) of the employees feel that performance appraisal leads to identification of hidden potential whereas minimum (i.e 4%) disagree with the same.SUGGESTIONS AND CONCLUSION After having analyzed the data, it was observed that there was appraisal in the organization. It is an effective tool, since it is on continuous basis, Performance appraisals in Tata Motors is satisfactory for its effective management and evaluation of staff. Appraisals here are helpin individuals to develop, improve organizational performance, and feed into business planning. Performance appraisals enable management in monitoring of standards, agreeing expectations. and objectives, and delegation of responsibilities and tasks. Staff performance appraisals also ‘establish individual training needs and enable organizational training needs analysis and planning. 90degrees appraisal system oF review is being followed in Tata Motors ie feedback that comes from members of an employee's immediate work circle most often, 360-degree feedback will include direct feedback from an employee's subordinates, peers, and supervisor(s), as well as a self-evaluation. It can also include, in some cases, feedback from external sources, such as customers and suppliers or other interested stakeholders ‘The appraisal process is continuous here and encourages employee productivity with positive feedbacks. Findings- 1. The very concept of performance appraisal is marketed throughout the organization, people have accepted it and understood its importance to the organization. To market such a concept, it should not start at bottom, instead it should be started by the initiative of the top management. This would help in percolating down the concept to the advantage of all, which includes the top management as well as those below them, This means that the top management has to take a welcoming and positive approach towards 1 change that is intended to be brought, . Further, at the time of confirmation also, the appraisal form should not lead to duplication of any information, Instead, detailed appraisal of the employee’s work must be dene — Which must incorporates both the work related as well as the other personal attributes that are important for work performance, 1K should be noted that the appraisal form for each job position should be different as each job has different knowledge and skill requirements. There should not be a common appraisal form for every job position in the organization,The job and role expected from the employees should be decided well in advance and that too with the consensus with them, A neiiiral panel of people should do the appraisal and to avoid subjectivity to a marked extent, objective methods should be employed having quantifiable data, ‘The time period for conducting the appraisal should be revised, so that the exercise becomes 4 continuous phenomenon, 8, Transparency inte the system should be enstited through the discussion about the employee's performance with the employee coneemed and trying to find out the grey areas so that training ean be implemented to improve on that 9. The feedback doesn’t Come from multiple source, It should to increase the efficiency, 10, Lack of Truth about Organization culture is conveyed through 90 degree of appraisal system, it should be overcome: 11, Superiogs response tend to be bias, which make employees unsatisfied, Thus, a better system ‘oun be installed, 12, Linking, Findiiigs rewards can prove to be unfair, Transparchey should be bought it appraisal system, 13..Assesses denies the truth of negative feedback, as it’s done by one person. More parties should be involved, 14, System can be used to humitiate people, if Employer and employee relations are not good 15, Ignores performance in terms of reaching goals, which ean be disastrous for the organization, Ideally itt the preserit day scenario, appraisal should be done, taking the views of all the