A PROJECT ON

A STUDY ON PERFORMANCE APPRAISAL OF MIDDLE LEVEL EMPLOYEES: AN EMERGING HR CHALLENGE

SUBMITTED TO THE FACULTY OF MANAGEMENT & RESEARCH INTEGRAL UNIVERSITY, LUCKNOW

IN PARTIAL FULFILMENT FOR THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION

SUBMITTED TO Ms. BUSHRA SIDDIQUI AHMAD

SUBMITTED BY Mr. MANZOOR

Faculty Member Integral University, Lucknow

M.B.A. (VI semester) Roll No.:

ACKNOWLEDGEMENT
Every work constitutes great deal of assistance and guidance from the people concerned and this particular project is of no exception. A project of the nature is surely a result of tremendous support, guidance, encouragement and help. Wish to place on record my sincere gratitude to Prof. (Dr.) Zeeshan Amir and the entire faculty of our department with special reference to my project guide, Ms. Bushra Siddiqui. I thank them for their constructive help and encouragement throughout the project. Without their support and guidance taking this would not have been possible. Also, wish to acknowledge enthusiastic encouragement and support extended to me by my family members. At last, I would like to thank all the faculty of business management to help me completing this project. Im also thankful to my friends who provided me their constant support and assistance.

MANZOOR AHMAD Roll No.: 0800129036

EXECUTIVE SUMMARY
TOPIC A STUDY ON PERFORMANCE APPRAISAL OF MIDDLE LEVEL

EMPLOYEES" AN EMERGING HR CHALLENGE

SCOPE OF THE STUDY The scope of my study restricts itself to the analysis of performance appraisal system because performance is a natural breathing is concerned with the human activity as well as sociological of human being how individual perform is a matter interest of top management. They want to know the efficiency of each employee in the organization and they also want to know the effectiveness of each employee.

OBJECTIVES The main aim research objective was to understand the relevance of wide variety of methods and technique that can be explored towards performance of the organizational goals. For this purpose I have following sub objectives: 1. This process is done for examine the status of employees. 2. To identify the conceptual knowledge of employees about performance appraisal in their organization. 3. To measure the level of transparency in performance appraisal system of the organization. 4. To relate performance and motivation among the employee of the organization.

TABLE OF CONTENT

ACKNOWLEDGMENT EXECUTIVE SUMMARY CHAPTER-1: INTRODCUTION CHAPTER-2: COMPANY PROFILE PERFORMANCE APPRAISAL IN MARUTI CHAPTER-3: RESEARCH METHODOLOGY CHAPTER-4: DATA ANALYSIS CHAPTER-5: FINDINGS CONCLUSION SUGGESTIONS REFERENCES ANNEXURE QUETIONNAIRE

CHAPTER-1 INTRODUCTION

OVERVIEW OF PERFORMANCE APPRAISAL

Performance appraisals are a systematic way of evaluating the standard of an employees performance. Steps for developing a systematic performance appraisal .1. Identify key performance criteria Development of key performance criteria should be based on a comprehensive job description and undertaken in consultation with employees. 2. Develop appraisal measures In order to obtain accurate and valid performance appraisals, appraisal measures should be tailored to the specific job or job family (i.e., groups of similar jobs). An evaluation of factors in the work environment which help or hinder performance is also recommended. This ensures that realistic expectations are set for employees performance, and is also likely to increase the perceived fairness and acceptability of performance appraisals. 3. Collect performance information from different sources Traditionally, it has been the sole responsibility of managers / supervisors to assess performance. However, other organisational members (e.g., clients, coworkers, subordinates) can be a valuable source of information as they are likely to have exposure to different aspects of an employees performance. Collecting information from multiple sources can increase the accuracy of performance evaluation (i.e., reduce bias), and increase employees perceptions of fairness.

4. Conduct an appraisal interview The two central purposes of the appraisal interview are to: 1. Reflect on past performances to identify major achievements, areas for further improvement, and barriers / facilitators to effective performance. 2. Identify goals and strategies for future work practice. The appraisal interview should be a constructive, two-way exchange between the supervisor and employee, with preparation for the interview done by both parties beforehand. 5. Evaluate the appraisal process The performance appraisal process should undergo regular review and improvement. For example, focus groups or surveys could be conducted to gauge employees perceptions of the appraisal process. A successful performance appraisal process should demonstrate a change in both the ratings of employees performance and aspects of the work environment that impact upon work performance.

Best Practice In Performance Appraisal

In essence, best practice in performance appraisals involves: Integrating performance appraisal into a formal goal setting system Basing appraisals on accurate and current job descriptions Offering adequate support and assistance to employees to improve their performance (e.g., professional development opportunities). Ensuring that appraisers have adequate knowledge and direct experience of the employees performance Conducting appraisals on a regular basis.

Meaning and Definition of Performance Appraisal

Performance appraisal is a formal system that evaluates the quality of a employees performance. An appraisal should not be viewed as an end in itself, but rather as an important process within a broader performance management system that links: Organizational objectives Day-to-day performance Professional development Rewards and incentives In simple terms, appraisal may be understood as the assessment of an individuals 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. Assessment should not be confined to past performance alone. Potentials of the employee for future performance must also be assessed.

A formal definition of performance appraisal is: It is the systematic evaluation of the individual with respect to his or her performance on the job and his or her potential for development. A more comprehensive definition is: Performance appraisal is a formal, structured system of measuring and evaluating an employees job related behaviors and outcomes to discover how and why the employee is presently performing on the job and how the employee can perform more effectively in the future so that the employee, organization, and society all benefit. Performance appraisal is the process of obtaining, analyzing and recognition information about the relative worth of an employee. Performance appraisal is also known as performance management, performance evaluation and performance review. 8

Traditional Performance Appraisal

The history of performance appraisal is quite brief. Its roots in the early 20th century can be traced to Taylor's pioneering Time and Motion studies. But this is not very helpful, for the same may be said about almost everything in the field of modern human resources management. During the First World War, appraisals concept was adopted by US army which was in the form of merit rating. It was man-to-man rating system for evaluation of military personnel. From the army this concept entered the business field and was restricted to hourly-paid workers. During 1920s, relational wage structures for hourly- paid workers were adopted in industrial units and each worker was used to be rated in comparison to other for determining wages rates. This system was called merit rating. The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order. Little consideration, if any, was given to the developmental possibilities of appraisal. If was felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either improve or continue to perform well. Sometimes this basic system succeeded in getting the results that were intended; but more often than not, it failed. For example, early motivational researchers were aware that different people with roughly equal work abilities could be paid the same amount of money and yet have quite different levels of motivation and performance. These observations were confirmed in empirical studies. Pay rates were important, yes; but they were not the only element that had an impact on employee performance. It was found that other issues, such as morale and self-esteem, could also have a major influence. 9

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

Modern Performance Appraisal

Performance appraisal may be defined as a structured formal interaction between a subordinate and supervisor, that usually takes the form of a periodic interview (annual or semi-annual), in which the work performance of the subordinate is examined and discussed, with a view to identifying weaknesses and strengths as well as opportunities for improvement and skills development. In many organizations - but not all - appraisal results are used, either directly or indirectly, to help determine reward outcomes. That is, the appraisal results are used to identify the better performing employees who should get the majority of available merit pay increases, bonuses, and promotion. By the same token, appraisal results are used to identify the poorer performers who may require some form of counseling, or in extreme cases, demotion, dismissal or decreases in pay. (Organizations need to be aware of laws in their country that might restrict their capacity to dismiss employees or decrease pay.) Whether this is an appropriate use of performance appraisal - the assignment and justification of rewards and penalties - is a very uncertain and contentious matter.

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A FRAMEWORK OF PERFORMANCE APPRAISAL

1. Develop clear job description. 2. Select an appropriate people with an appropriate selection process. 3. Provide effective orientation, education and training. 4. Provide ongoing coaching and feedback. 5. Conduct quarterly performance development discussion. 6. Design effective compensation system. 7. Provide promotion and career development opportunities.

Objective of Performance Appraisal

Salary Increase Performance appraisal plays a role in making decision about salary increase. Normally salary increase of an employee depends upon on how he is performing his job. There is continuous evaluation of his performance either formally or informally. This may disclose how well an employee is performing and how much he should be compensated by way of salary increases. Promotion Performance appraisal plays significant role where promotion is based on merit and seniority. Performance appraisal discloses how an employee is working in his present job and what are his strong and weak points. In the light of these, it can be decided whether he can be promoted to the next higher position.

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Training and Development Performance appraisal tries to identify the strengths and weakness of an employee on his present job. This information can be used for devising training and development programmes appropriate for overcoming weaknesses of employees. Feedback Performance appraisal provides feedback to employees about their performance. A person works better when he knows how he is working. This works in two ways, firstly, the person gets feedback about his performance. Secondly, when the person gets feedback about his performance, he can relate his work to the organizational objectives. Pressure on Employees Performance appraisal puts a sort of pressure on employees for better performance. If the employees are conscious that they are being appraised in respect of certain factors and their future largely depends on such appraisal. Communication 1. To provide feedback to employees so that they come to know where they stand and can improve their job performance. 2. To clearly establish goals i.e. what is expected of the employee in terms of performance and future work assignments. 3. To provide coaching, counseling, career planning and motivation to employees. 4. To develop positive superior subordinate relations and thereby reduce grievance.

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Career development objectives 1. To assess the strong and weak points in the working of the employees and finding remedies for weak points through training. 2. To determine career potential. 3. To plan career goals. Others 1) Identifying systemic factors that are barriers to, or facilitators of, effective performance. 2) To confirm the services of probationary employees upon their completing the Probationary period satisfactorily. 3) To improve communication. Performance appraisal provides a format for dialogue between the superior and the subordinate, and improves understanding of personal goals and concerns. This can also have the effect of increasing the trust between the rater and the rate. 4) To determine whether HR programmers such as selection, training, and transfer have been effective or not.

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HOW TO CONDUCT A PERFORMANCE APPRAISAL PROCESS

The following five-step approach to conducting a systematic performance appraisal is recommended: 1. Identify key performance criteria 2. Develop appraisal measures 3. Collect performance information from different sources 4. Conduct an appraisal interview 5. Evaluate the appraisal process. STEP 1: IDENTIFY KEY PERFORMANCE CRITERIA Perhaps one of the most challenging aspects of setting up a performance appraisal is deciding what to assess. In essence, four key dimensions of performance should be considered in a performance appraisal. KEY DIMENSIONS OF PERFORMANCE Competencies Behaviours Results / outcomes Knowledge, skills, and abilities relevant to performance Specific actions conducted and / or tasks performed Outputs, quantifiable results, measurable outcomes and achievements, objectives attained Organisational citizenship behaviours Actions that are over and above usual job responsibilities

To ensure that the performance criteria are relevant to work practice and acceptable to appraisers and employees: i) Base the performance criteria on an up-to-date job description ii) Develop criteria in consultation with appraisers and employees. i) Base the performance criteria on an up-to-date job description:

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Clear and explicit links between performance appraisal and a job description will ensure the relevance of the appraisal. If a detailed job description is not available or is out-of-date, it is strongly recommended that an accurate job description be developed prior to conducting a performance appraisal. ii) Develop criteria in consultation with appraisers and employee: Linking performance appraisals with job descriptions can help to focus the appraisal process on the key competencies, behaviours and outcomes associated with a particular role or position. It can also be useful to consult with employees to: Ensure that key aspects of a role / position are represented in the job description, for example: Conduct assessments Plan interventions Manage cases Liaise with and refer to other providers Keep up-to-date service records and case notes Write reports Develop a clear understanding of the relative importance of various competencies, Behaviours and outcomes Identify how these key competencies, behaviours and outcomes can be fairly and accurately assessed. Employees are more likely to accept and be satisfied with the appraisal system if they participate in the development of appraisal criteria and measures, and in the process of conducting appraisals. 15

Strategies for facilitating employees participation include: Engagement in formal meetings or informal discussions with supervisors to seek input and / or feedback on appraisal measures and criteria Representation on groups / committees involved in the design and implementation of performance appraisals Inclusion of self appraisals in the appraisal process Providing opportunities for employees to contribute to the performance appraisal of coworkers and managers / supervisors. STEP 2: DEVELOP APPRAISAL MEASURES Once clear and specific performance criteria have been developed, the next step is to decide how to assess employees performance. It is recommended that a structured and systematic approach is taken to assessing performance. Problems that arise when an unstructured blank sheet approach is used include: Increased chance of appraiser errors (i.e., reduced accuracy) Knowledge, skills and abilities most critical to job performance may be overlooked (i.e., feedback may have limited impact on performance effectiveness) Reduced consistency between appraisers (i.e., evaluations may reflect differences between appraisers rather than actual differences in a employees performance) Perceptions of subjectivity in evaluations, which may in turn, reduce employees satisfaction with, and acceptance of appraisals. There are three important considerations in the design of appraisal measures: 16

i) ii) iii) i)

Generic versus individually tailored measures Objective versus subjective assessments Assessing the impact of the work environment on performance. Generic versus individually tailored measures

Many workplaces use a generic rating form for all employees irrespective of their role or position within the organisation. Although this approach can save time and minimise cost, the accuracy and relevance of appraisals may be significantly diminished. The one size fits all approach of generic measures may overlook important performance criteria that are relevant to particular jobs, and may also include criteria that are irrelevant to others. Where time and other resources permit, it is more appropriate to construct appraisal formats tailored to specific jobs or families of jobs. If the development of jobspecific (i.e., individually tailored) appraisal formats is beyond the resource capacity of the organisation, an alternative would be to develop two groups of criteria:
1) Core competencies that have applicability to the performance appraisal of all

employees within the organisation

1) Additional competencies applicable only to some jobs and included in the performance ii) appraisal if relevant.

Objective versus subjective assessments

A basic distinction between different types of appraisal measures concerns the use of objective or subjective criteria. Objective assessments of work performance

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 Objective measures of job performance involve counts of various work-related behaviours. Some common objective job performance measures include Absenteeism (number of days absent) Accidents (number of accidents) Incidents at work (number of incidents / assaults / altercations) Lateness (days late) Meeting deadlines. Objective measures can be relatively quick and easy to obtain (given good organisational record-keeping). However, it can be unwise to place too much emphasis on these types of objective measures. An exclusive focus on results / outcomes may mask factors that impact on employees performance that are beyond their control (e.g., client workload). Subjective assessments of work performance Subjective measures rely on the judgment of an appraiser (self, coworkers, or supervisor). Subjective assessments are commonly used in performance appraisals and often involve the use of rating scales. Subjective assessments are more likely to provide accurate performance appraisals when: The behaviours and outcomes being assessed are stated in clear behavioural terms The employee understands the measures (e.g., rating scales) being used to evaluate their performance, and agree that the measures are fair and accurate (i.e., measures what it is 18

 supposed to) Measurement is as brief as possible whilst addressing essential behaviours and outcomes (frustration with long and unwieldy questionnaires may introduce error in responses).

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iii)

Assessing the impact of the work environment on performance The goal of a performance appraisal is to support and improve employees performance and effectiveness. Therefore, it makes sense for an appraisal to include an assessment of factors in the work environment that help or hinder a employees capacity to perform effectively. Explicit assessment of environmental factors is also likely to increase the perceived fairness and acceptability of performance appraisals. For example, an employees capacity to provide effective treatment interventions is influenced by factors such as: Access to private, soundproofed, adequately sized rooms for counselling Availability of validated, user-friendly assessment tools Availability of reliable and approachable management / administration.

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STEP 3: COLLECT PERFORMANCE INFORMATION FROM DIFFERENT SOURCES Once the appraisal measures are developed, the next step involves collection of accurate performance information. A common trap is to begin noting observations of employees just before conducting appraisals. This is likely to give an inaccurate picture of a employees performance. Ideally, employees performance should be observed in a systematic way over time (e.g., in a diary). This method ensures the accuracy of information about their performances. Many employees in the organization operate with a relatively high degree of autonomy. This combined with the heavy workload of most managers / supervisors, may limit opportunities to conduct regular observation of employees performance. In addition, perceptions of ongoing monitoring may foster a sense of surveillance which can damage staff morale. A more suitable approach may be to keep critical incident reports that note specific examples of both excellent and unsatisfactory performances. Supervisors can also encourage employees to keep track of their own performance records such as emails or letters that commend them on their achievements. Traditionally, it has been the sole responsibility of managers / supervisors to assess performance. However, other organisational members can be a valuable source of information as they are likely to have exposure to different aspects of a employees performance. This approach is known as 360-degree feedback. For instance, coworkers can provide valuable information on teamwork skills, and subordinates can provide useful information on leadership style. There are many advantages to obtaining feedback on performance from sources other than supervisors or managers. Key benefits include: Accuracy and reduced bias (incorrect information from one source can be corrected from another)

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 Increased likelihood that employees will perceive the performance appraisal system to be a fair and accurate reflection of their performance (compared to relying on supervisor ratings alone). If time and resources are limited, it is recommended that supervisor appraisals be conducted in conjunction with self-assessment. Including self-assessments as part of the appraisal process is likely to enhance employees commitment to, and satisfaction with, the appraisal process. It also provides employees with an opportunity to identify barriers and facilitators to effective performance in their work environment. Five different sources of performance appraisal information are considered here: i) ii) iii) iv) v) i) Manager / supervisor appraisals Self appraisals Coworker appraisals Subordinate appraisals Client appraisals. Manager / supervisor appraisals: Managers / supervisors play a central role in the appraisal process, and should always be included as one of the main appraisers. In essence, managers and supervisors have two roles in performance appraisal: 1. Judge: assessing performance 2. Coach: providing constructive feedback and identifying areas for improvement. Performing both roles simultaneously can be difficult. Employees may be reluctant to admit areas for improvement if performance assessment is linked with desired outcomes such as pay, promotion or opportunities to work in

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desired areas. One solution is to separate the judge and coach roles by conducting separate appraisal meetings. ii) Self-appraisals:

The process of evaluating ones own performance can help to increase employees commitment to the appraisal process, perceptions of appraisal fairness, and satisfaction with the appraisal process. Self-appraisal can also be useful for identifying areas for development. Not surprisingly, self-appraisals are usually biased towards leniency. Strategies to increase the accuracy of self appraisals include: a) Using clear definitions of performance criteria linked to specific, observable behaviours b) Informing employees that their ratings will be checked and compared to other sources of c) appraisal (i.e., for accuracy) d) Ensuring employees receive regular feedback on their performance. It is recommended that self appraisals are used for professional development purposes, rather than for making administrative decisions (i.e., pay increases, promotion). iii) Coworker appraisals:

Coworkers can provide valuable feedback on performance, particularly where teamwork occurs. Coworkers are often aware of different aspects of a employees performance that managers /supervisors may not have the opportunity to observe. In addition, as there is usually more than one coworker who rates a workers performance, their evaluations tend to be more reliable. Coworker evaluations, however, may be biased towards those individuals most

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well liked in an organisation (i.e., friendship bias). Furthermore, coworker appraisals may have a negative impact on teamwork and cooperation if employees are competing with one another for organizational incentives and rewards. It is recommended that coworker appraisals are used for professional development rather than administrative decisions. iv) Subordinate appraisals:

Subordinates are a valuable source of information regarding particular aspects of a supervisor or leaders performance such as communication, team building or delegation. Subordinates can provide feedback to help managers / supervisors develop their skills in these areas. The focus should be on aspects of managerial performance that subordinates are able to comment upon. This source of appraisal may only be appropriate in larger organisations where there are sufficient subordinates to allow anonymity.
v) Client appraisals:

Clients may also offer a different perspective on a employees performance, particularly for jobs that require a high degree of interaction with people. For example, client appraisals can be a valuable source of feedback regarding the quality of service provision (e.g., the quality of interaction, degree of empathy, level of support, degree of professionalism). Organisations often have performance contracts that specify goals and deliverables

for client outcomes. Whilst it is important that organisational goals and deliverables are reflected in the appraisal criteria for individuals and teams, it is recommended that particular care be taken if incorporating client outcomes. Relying on client outcomes as an indicator of performance can have undesirable effects due to the complex and sensitive nature of work. A range of factors may

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influence client outcomes, many of which are outside the control of an individual employee. It is rare for a successful (or otherwise) outcome to be the sole result of one persons efforts. This makes client outcomes a poor reflection of the quality of treatment provided by the employee. For example, good employee performance will not always bring about client improvements, and client relapses may not be due to poor employee performance. In addition to considering client outcomes, it may also be beneficial to focus on employees skills and abilities in providing services per se (i.e., independent of client outcomes). Strategies to support appraisers and enhance appraisal accuracy Rating another persons performance is not an easy task, particularly with complex jobs or performance criteria. Strategies to support appraisers and increase the likelihood of accurate assessments include: Providing practical training in rating techniques, which includes opportunities to practice appraising performance and providing feedback Limiting the assessment to performance criteria that an appraiser has observed / experienced in regard to the employee Providing structured assessment tools with clear explanations regarding the criteria to be assessed, and performance standard. STEP 4: CONDUCT AN APPRAISAL INTERVIEW The next step in a performance appraisal is to conduct the appraisal interview. The two central purposes of the appraisal interview are to:

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 Reflect on past performance to identify major achievements, areas that require further development, and barriers / facilitators to effective performance Identify goals and strategies for future work practice. As discussed below, supervisors and managers can use a range of strategies to ensure that the appraisal interview is positive, constructive and of greatest benefit for employees effectiveness. Before the interview Help employees to become familiar and comfortable with talking about their performance by engaging in regular, informal communication on work progress, potential obstacles and issues, possible solutions and assistance Encourage employees to prepare employees should be encouraged to review their own performance before the interview Do your own preparation plan ahead. Draft a list of the issues that you want to address with the employee (i.e., strengths and weaknesses of performance, strategies to improve performance). Give specific examples of the employees performances that you want to highlight. During the interview Encourage employee participation start by inviting the employee to share their views about their performance Begin with positive feedback to put the employee at ease Make it a two-way discussion

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 Set goals mutually ensure employees participate in determining specific, challenging but attainable goals for future work performance Ensure that there is a clear agreement on performance objectives and the evaluation criteria for the next year Keep written records of the appraisal interview on which both parties have signed off. After the interview Coach employees regularly provide frequent feedback to help employees improve their performance Assess progress towards goals frequently periodic reviewing of progress towards goals helps keep behaviour on track and enhances commitment to effective performance. Relate rewards to performance by linking appraisal results to employment decisions such as promotions and salaries, employees are more likely to prepare for, participate in, and be satisfied with the appraisal system. STEP 5: EVALUATE THE APPRAISAL PROCESS As with any organisational system, the performance appraisal process should undergo regular review and improvement. For example, the process of performance appraisal could be evaluated by conducting focus groups or surveys with employees to gauge their satisfaction with the appraisal process (and suggestions for improvements). It may also be useful to monitor the types of issues raised by supervisors and employees over time. A successful performance appraisal process should demonstrate a change in both the ratings of employees performance (i.e., ideally performance ratings should improve, or at least remain at a satisfactorily stable level over time) and the 27

work environment (i.e., evidence that significant barriers to work practice are being addressed by the organisation).

METHODS OF PERFORMANCE APPRAISAL

A) Past-oriented methods 1) Rating Scales: The rating scale method offers a high degree of structure for appraisals. Each employee trait or characteristic is rated on a bipolar scale that usually has several points ranging from poor to excellent (or some similar arrangement). The traits assessed on these scales include employee attributes such as cooperation, communications ability, initiative, punctuality and technical (work skills)

competence. The nature and scope of the traits selected for inclusion is limited only by the imagination of the scales designer, or by the organizations need to know. The one major provision in selecting traits is that they should be in some way relevant to the appraisees job. Advantages The greatest advantage of rating scales is that they are structured and standardised. This allows ratings to be easily compared and contrasted - even for entire workforces. Each employee is subjected to the same basic appraisal process and rating criteria, with the same range of responses. This encourages equality in treatment for all appraisees and imposes standard measures of performance across all parts of the organization. Rating scale methods are easy to use and understand. The concept of the rating scale makes obvious sense; both appraisers and appraisees have an intuitive appreciation 28

for the simple and efficient logic of the bipolar scale. The result is widespread acceptance and popularity for this approach.

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Disadvantages Trait Relevance Are the selected rating-scale traits clearly relevant to the jobs of all the appraisees? It is inevitable that with a standardised and fixed system of appraisal that certain traits will have a greater relevance in some jobs than in others. For example, the trait initiative might not be very important in a job that is tightly defined and rigidly structured. In such cases, a low appraisal rating for initiative may not mean that an employee lacks initiative. Rather, it may reflect that fact that an employee has few opportunities to use and display that particular trait. The relevance of rating scales is therefore said to be context-sensitive. Job and workplace circumstances must be taken into account. Systemic Disadvantage Rating scales, and the traits they purport to measure, generally attempt to encapsulate all the relevant indicators of employee performance. There is an assumption that all the true and best indicators of performance are included, and all false and irrelevant indicators are excluded. This is an assumption very difficult to prove in practice. It is possible that an employees performance may depend on factors that have not been included in the selected traits. Such employees may end up with ratings that do not truly or fairly reflect their effort or value to the organization. Employees in this class are systemically disadvantaged by the rating scale method. Perceptual Errors This includes various well-known problems of selective perception (such as the horns and halos effect) as well as problems of perceived meaning.Selective perception is the human tendency to make private and highly subjective assessments of what a person

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is really like, and then seek evidence to support that view (while ignoring or downplaying evidence that might contradict it). This is a common and normal psychological phenomenon. All human beings are affected by it. In other words, we see in others what we want to see in them. An example is the supervisor who believes that an employee is inherently good (halo effect) and so ignores evidence that might suggest otherwise. Instead of correcting the slackening employee, the supervisor covers for them and may even offer excuses for their declining performance. On the other hand, a supervisor may have formed the impression that an employee is bad (horns effect). The supervisor becomes unreasonably harsh in their assessment of the employee, and always ready to criticize and undermine them. The horns and halo effect is rarely seen in its extreme and obvious forms. But in its more subtle manifestations, it can be a significant threat to the effectiveness and credibility of performance appraisal. Perceived Meaning Problems of perceived meaning occur when appraisers do not share the same opinion about the meaning of the selected traits and the language used on the rating scales. For example, to one appraiser, an employee may demonstrate the trait of initiative by reporting work problems to a supervisor. To another appraiser, this might suggest an excessive dependence on supervisory assistance - and thus a lack of initiative.As well, the language and terms used to construct a scale - such as Performance exceeds expectations or Below average skill - may mean different things to different appraisers.

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Rating Errors The problem here is not so much errors in perception as errors in appraiser judgement and motive. Unlike perceptual errors, these errors may be (at times) deliberate. The most common rating error is central tendency. Busy appraisers, or those wary of confrontations and repercussions, may be tempted to dole out too many passive, middle-of-the-road ratings (e.g., satisfactory or adequate), regardless of the actual performance of a subordinate. Thus the spread of ratings tends to clump excessively around the middle of the scale. This problem is worsened in organizations where the appraisal process does not enjoy strong management support, or where the appraisers do not feel confident with the task of appraisal.
2) Check-list Method: Under this method, checklist of Statements of Traits of employee in the form of Yes or No based questions is prepared. Here, the rater only does the reporting or checking and HR department does the actual evaluation. The rater concerned has to tick appropriate answers relevant to the appraisees. When the check-list is completed, it is sent to HR department for further processing. Various questions in the check list may have either equal weightage or more weightage may be given to those questions which are more important. The HR department then calculates the total scores which show the appraisal result of an employee.

Advantages economy, ease of administration, limited training required, standardization. Disadvantages Raters biases, use of improper weights by HR Dept, does not allow rater to give relative ratings.

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3. Force Choice Method: A series of statements arranged in the blocks of two or more are given and the rater indicates which statement is true or false. The rater is forced to make a choice. HR department does actual assessment. Advantages Absence of personal biases because of forced choice. Disadvantages Statements may not be correctly framed. 4. Force Distribution Method:

One of the problems faced in large organizations is relative assessment tendencies of raters. Some are too lenient and others too severe. This method overcomes that problem. It forces every one to do a comparative rating of all the employees on a predetermined distribution pattern of good to bad. Say 10% employees in Excellent Grade, 20% in Good Grade, 40% in Average Grade, 20% in Below Average Grade and 10% in Unsatisfied grade. The real problem of this method occurs in organizations where there is a tendency to pack certain key departments with all good employees and some other departments with discards and laggards. Relatively good employees of key departments get poor rating and relatively poor employees of laggards departments get good rating. 5. Critical Incident Method:

In this method, only critical incidents and behavior associated with these incidents are taken for evaluation. This method involves three steps. A test of noteworthy on the job behavior is prepared. A group of experts then assigns scale values to them depending on the degree of desirability for the job. Finally, a checklist of incidents which define good and bad employees is prepared. Advantages ---This method is very useful for discovering potential of employees who can be useful in critical situation.

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 Disadvantages --- a) Negative incidents are, generally, more noticeable than positive ones. b) The recording of incidents is a core to the superior and may be put off and easily forgotten. c) Overly close supervision may result.

6. Essay Method:

In the essay method approach, the appraiser prepares a written statement about the employee being appraised. The statement usually concentrates on describing specific strengths and weaknesses in job performance. It also suggests courses of action to remedy the identified problem areas. The statement may be written and edited by the appraiser alone, or it be composed in collaboration with the appraisee.
Advantages

The essay method is far less structured and confining than the rating scale method. It permits the appraiser to examine almost any relevant issue or attribute of performance. This contrasts sharply with methods where the appraisal criteria are rigidly defined. Appraisers may place whatever degree of emphasis on issues or attributes that they feel appropriate. Thus the process is open-ended and very flexible. The appraiser is not locked into an appraisal system the limits expression or assumes that employee traits can be neatly dissected and scaled. Disadvantages

Essay methods are time-consuming and difficult to administer. Appraisers often find the essay technique more demanding than methods such as rating scales.

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The techniques greatest advantage - freedom of expression - is also its greatest handicap. The varying writing skills of appraisers can upset and distort the whole process. The process is subjective and, in consequence, it is difficult to compare and contrast the results of individuals or to draw any broad conclusions about organizational needs. 7) Grading: In this method, certain categories of abilities of performance are defined well in advance and person are put in particular category depending on their traits and characteristics. Such categories may be definitional like outstanding, good, average, poor, very poor or may be in terms of letter like A, B, C, D etc with A indicating the best and D indicating the worst. This method, however, suffers from one basic limitation that the rater may rate most of the employees at higher grades.
8) Performance Tests & Observations:

This is based on the test of knowledge or skills. The tests may be written or an actual presentation of skills. Tests must be reliable and validated to be useful. Advantage Tests only measure potential and not attitude. Actual performance is more a function of attitude of person than potential. Disadvantages Some times costs of test development or administration are high. 9) Confidential Reports: Though popular with government departments, its application in industry is not ruled out. Here the report is given in the form of Annual Confidentiality Report (ACR). The system is highly secretive and confidential. Feedback to the assessee is given only in case of an adverse entry. Disadvantage is that it is highly prone to biases and recency effect and ratings can be manipulated because the evaluations are linked to future rewards like promotions, good postings, etc.

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10) Comparative Evaluation Method (Ranking & Paired Comparisons): These are collection of different methods that compare performance with that of other co-workers. The usual techniques used may be ranking methods and paired comparison method. Ranking Method:

Superior ranks his worker based on merit, from best to worst. However how best and why best are not elaborated in this method. It is easy to administer. Paired Comparison Method:

In this method each employee is paired with every other employee in the same cadre and then comparative rating done in pairs so formed. The number of comparisons may be calculated with the help of a formula N x (N-1) / 2. The method is too tedious for large departments and often such exact details are not available with rater.

B)

Future-Oriented Methods 1) MBO (management by objective) :

The use of management objectives was first widely advocated in the 1950s by the noted management theorist Peter Drucker. MBO (management by objectives) methods of performance appraisal are results-oriented. That is, they seek to measure employee performance by examining the extent to which predetermined work objectives have been met. Usually the objectives are established jointly by the supervisor and subordinate. Once an objective is agreed, the employee is usually expected to self-audit; that is, to identify the skills needed to achieve the objective. Typically they do not rely on others to locate and specify their strengths and weaknesses. They are expected to monitor their own development and progress. 36

Advantages

The MBO approach overcomes some of the problems that arise as a result of assuming that the employee traits needed for job success can be reliably identified and measured. Instead of assuming traits, the MBO method concentrates on actual outcomes. If the employee meets or exceeds the set objectives, then he or she has demonstrated an acceptable level of job performance. Employees are judged according to real outcomes, and not on their potential for success, or on someones subjective opinion of their abilities. The guiding principle of the MBO approach is that direct results can be observed, whereas the traits and attributes of employees (which may or may not contribute to performance) must be guessed at or inferred. The MBO method recognizes the fact that it is difficult to neatly dissect all the complex and varied elements that go to make up employee performance. MBO advocates claim that the performance of employees cannot be broken up into so many constituent parts - as one might take apart an engine to study it. But put all the parts together and the performance may be directly observed and measured. Disadvantages MBO methods of performance appraisal can give employees a satisfying sense of autonomy and achievement. But on the downside, they can lead to unrealistic expectations about what can and cannot be reasonably accomplished. Supervisors and subordinates must have very good reality checking skills to use MBO appraisal methods. They will need these skills during the initial stage of objective setting, and for the purposes of self-auditing and self-monitoring. Unfortunately, research studies have shown repeatedly that human beings tend to lack the skills needed to do their own reality checking. Nor are these skills easily conveyed by training. 37

Reality itself is an intensely personal experience, prone to all forms of perceptual bias. One of the strengths of the MBO method is the clarity of purpose that flows from a set of well-articulated objectives. But this can be a source of weakness also. It has become very apparent that the modern organization must be flexible to survive. Objectives, by their very nature, tend to impose a certain rigidity. Of course, the obvious answer is to make the objectives more fluid and yielding. But the penalty for fluidity is loss of clarity. Variable objectives may cause employee confusion. It is also possible that fluid objectives may be distorted to disguise or justify failures in performance. 2) Assessment Center Method: This technique was first developed in USA and UK in 1943. An assessment centre is a central location where managers may come together to have their participation in job related exercises evaluated by trained observers. It is more focused on observation of behaviours across a series of select exercises or work samples. Assesses are requested to participate in in-basket exercises, work groups, computer simulations, role playing and other similar activities which require same attributes for successful performance in actual job. Advantages Well-conducted assessment centre can achieve better forecasts of future performance and progress than other methods of appraisals. Also reliability, content validity and predictive ability are said to be high in Assessment Centres. The tests also make sure that the wrong people are not hired or promoted. Finally, it clearly defines the criteria for selection and promotion. Disadvantages Concentrates on future performance potential. No assessment of past performance. Costs of employees travelling and lodging, psychologists. Ratings

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strongly influenced by assessees inter-personal skills. Solid performers may feel suffocated in simulated situations. 3) 360o Appraisal: It is a technique in which performance data/feedback/rating is collected from all sections of people employee interacts in the course of his job like immediate supervisors, team members, customers, peers, subordinates and self with different weightage to each group of raters. This technique has been found to be extremely useful and effective. It is especially useful to measure inter-personal skills, customer satisfaction and team building skills. One of the biggest advantages of this system is that assesssees cannot afford to neglect any constituency and has to show all-round performance. However, on the negative side, receiving feedback from multiple sources can be intimidating, threatening, expensive and time consuming. 4) Psychological Appraisals: These appraisals are more directed to assess employees potential for future performance rather than the past one. It is done in the form of in-depth interviews, psychological tests, and discussion with supervisors and review of other evaluations. It is more focused on employees emotional, intellectual, and motivational and other personal characteristics affecting his performance. This approach is slow and costly and may be useful for bright young members who may have considerable potential. However quality of these appraisals largely depends upon the skills of psychologists who perform the evaluation.

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CHAPTER-2 COMPANY PROFILE

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COMPANY PROFILE
Maruti Udyog Limited (MUL) was established in February 1981, though the actual production commenced in 1983 with the Maruti 800, based on the Suzuki Alto kei car which at the time was the only modern car available in India, its only competitors- the Hindustan Ambassador and Premier Padmini were both around 25 years out of date at that point. Through 2004, Maruti Suzuki has produced over 5 Million vehicles. Maruti Suzukis are sold in India and various several other countries, depending upon export orders. Models similar to Maruti Suzukis (but not manufactured by Maruti Udyog) are sold by Suzuki Motor Corporation and manufactured in Pakistan and other South Asian countries.[citation needed] The company exports more than 50,000 cars annually and has an extremely large domestic market in India selling over 730,000 cars annually. Maruti 800, till 2004, was the India's largest selling compact car ever since it was launched in 1983. More than a million units of this car have been sold worldwide so far. Currently, Maruti Suzuki Alto tops the sales charts but Maruti Suzuki's Swift has taken over this titles by 19000 models in April 2012.The company imports diesel engines for all maruti Suzuki cars from the fiat motors the great Italian company.The German car company Volkswagen has a 19.9% non-controlling shareholding in Suzuki Motor Corporation. [citation needed] Due to the large number of Maruti 800s sold in the Indian market, the term "Maruti" is commonly used to refer to this compact car model. Its manufacturing facilities are located at two facilities Gurgaon and Manesar south of Delhi. Maruti Suzukis Gurgaon facility has an installed capacity of 900,000 units per annum. The Manesar facilities, launched in February 2007 comprise a vehicle assembly plant with a capacity of 550,000 units per year and a Diesel Engine plant with an annual capacity 41

of 100,000 engines and transmissions. Manesar and Gurgaon facilities have a combined capability to produce over 14,50,000 units annually. More than half the cars sold in India are Maruti Suzuki cars. The company is a subsidiary of Suzuki Motor Corporation, Japan, which owns 54.2 per cent of Maruti Suzuki. The rest is owned by public and financial institutions. It is listed on the Bombay Stock Exchange and National Stock Exchange of India.[citation needed] During 2007-08, Maruti Suzuki sold 764,842 cars, of which 53,024 were exported. In all, over six million Maruti Suzuki cars are on Indian roads since the first car was rolled out on 14 December 1983. Maruti Suzuki offers 15 models, Maruti 800, Alto, Maruti Alto 800, WagonR, Estilo, A-star, Ritz, Swift, Swift DZire, SX4, Omni, Eeco, Gypsy, Grand Vitara, Kizashi and the newly launched Ertiga. Swift, Swift DZire, Astar and SX4 are manufactured in Manesar, Grand Vitara and Kizashi are imported from Japan as completely built units(CBU), remaining all models are manufactured in Maruti Suzuki's Gurgaon Plant.[citation needed] The company is believed to be moving towards introduction of a new version of Maruti 800 by November 2012, which will be more fuel efficient, though slightly costlier than Alto and existing Maruti 80 Suzuki Motor Corporation, the parent company, is a global leader in mini and compact cars for three decades. Suzukis technical superiority lies in its ability to pack power and performance into a compact, lightweight engine that is clean and fuel efficient. Nearly 75,000 people are employed directly by Maruti Suzuki and its partners. It has been rated first in customer satisfaction among all car makers in India from 1999 to 2009 by J D Power Asia Pacific. Maruti Suzuki will be introducing new 800cc model by Diwali in 2012.The model is supposed to be fuel efficient.

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JOINT VENTURE RELATED ISSUES Relationship between the Government of India, under the United Front (India) coalition and Suzuki Motor Corporation over the joint venture was a point of heated debate in the Indian media till Suzuki Motor Corporation gained the controlling stake. This highly profitable joint venture that had a near monopolistic trade in the Indian automobile market and the nature of the partnership built up till then was the underlying reason for most issues. The success of the joint venture led Suzuki to increase its equity from 26% to 40% in 1987, and further to 50% in 1992. In 1982 both the venture partners had entered into an agreement to nominate their candidate for the post of Managing Director and every Managing Director will have a tenure of five years. R.C. Bhargava was the initial managing director of the company since the inception of the joint venture. Till today he is regarded as instrumental for the success of Maruti Suzuki. Joining in 1982 he held several key positions in the company before heading the company as Managing Director. Currently he is on the Board of Directors. After completing his five-year tenure, Mr. Bhargava later assumed the office of Part-Time Chairman. The Government nominated Mr. S.S.L.N. Bhaskarudu as the Managing Director on 27 August 1997. Mr. Bhaskarudu had joined Maruti Suzuki in 1983 after spending 21 years in the Public sector undertaking Bharat Heavy Electricals Limited as General Manager. In 1987 he was promoted as Chief General Manager. In 1988 he was named Director, Productions and Projects. The next year (1989) he was named Director of Materials[clarification needed] and in 1993 he became Joint Managing Director. Suzuki Motor Corporation didn't attend the Annual General Meeting of the Board with the reason of it being called on a short notice. Later Suzuki Motor Corporation

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went on record to state that Bhaskarudu was "incompetent" and wanted someone else. However, the Ministry of Industries, Government of India refuted the charges. Media stated from the Maruti Suzuki sources that Bhaskarudu was interested to indigenise most of components for the models including gear boxes especially for Maruti 800. Suzuki also felt that Bhaskarudu was a proxy for the Government and would not let it increase its stake in the venture.[15] If Maruti Suzuki would have been able to indigenise gear boxes then Maruti Suzuki would have been able to manufacture all the models without the technical assistance from Suzuki. Till today the issue of localization of gear boxes is highlighted in the press. INDUSTRIAL RELATIONS Since its founding in 1983, Maruti Udyog Limited experienced few problems with its labour force. The Indian labour it hired readily accepted Japanese work culture and the modern manufacturing process. In 1997, there was a change in ownership, and Maruti became predominantly government controlled. Shortly thereafter, conflict between the United Front Government and Suzuki started. Labour unrest started under management of Indian central government. In 2000, a major industrial relations issue began and employees of Maruti went on an indefinite strike, demanding among other things, major revisions to their wages, incentives and pensions. Employees used slowdown in October 2000, to press a revision to their incentivelinked pay. In parallel, after elections and a new central government led by NDA alliance, India pursued a disinvestments policy. Along with many other government owned companies, the new administration proposed to sell part of its stake in Maruti Suzuki in a public offering.

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The worker's union opposed this sell-off plan on the grounds that the company will lose a major business advantage of being subsidised by the Government, and the union has better protection while the company remains in control of the government. The standoff between the union and the management continued through 2001. The management refused union demands citing increased competition and lower margins. The central government prevailed and privatized Maruti in 2002. Suzuki became the majority owner of Maruti Udyog Limited. MANESAR VIOLENCE JULY 2012 On 18 July 2012, Maruti's Manesar plant was hit by violence as workers at one of its auto factories attacked supervisors and started a fire that killed a company official and injured 100 managers, including two Japanese expatriates. The violent mob also injured nine policemen. The company's General Manager of Human Resources had both arms and legs broken by his attackers, unable to leave the building that was set ablaze, and was charred to death. The incident is the worst-ever for Suzuki since the company began operations in India in 1983. Since April 2012, the Manesar union had demanded a three-fold increase in basic salary, a monthly conveyance allowance of 10,000, a laundry allowance of 3,000, a gift with every new car launch, and a house for every worker who wants one or cheaper home loans for those who want to build their own houses. Initial reports claimed wage dispute and a union spokesman alleged the incident may be caste-related. According to the Maruti Suzuki Workers Union a supervisor had abused and made discriminatory comments to a low-caste worker.These claims were denied by the company and the police. The supervisor alleged was found to belong to a tribal heritage and outside of Hindu caste system; further, the numerous workers involved in violence were not affiliated with caste either. Maruti said the unrest

45

began, not over wage discussions, but after the workers' union demanded the reinstatement of a worker who had been suspended for beating a supervisor. The workers claim harsh working conditions and extensive hiring of low-paid contract workers which are paid about $126 a month, about half the minimum wage of permanent employees. Maruti employees currently earn allowances in addition to their base wage. Company executives denied harsh conditions and claim they hired entry-level workers on contracts and made them permanent as they gained experience. It was also claimed that bouncers were deployed by the company. India Today claimed that its interviews of witnesses present at the plant confirm the dispute was over the suspended worker. The management insisted that they must wait for completion of inquiry underway before they can take any action on the employee suspended for beating up his supervisor. The management was then told, "You will be beaten up after we get a signal." Thereafter, the workers broke up into groups, went on to set the shop floor as well as all offices afire. They searched for management officials and proceeded with a barbaric beating of the officials at the site with iron rods. The police, in its First Information Report (FIR), claimed on 21 July that Manesar violence may be the result of a planned violence by a section of workers and union leaders. The report claimed the worker's action was recorded on close circuit cameras installed within the company premises. The workers took several managers and high ranked management officials hostage. The responsible Special Investigative Team official claimed, "some union leaders may be aware of the facts, so they burnt down the main servers and more than 700 computers." The recorded CCTV footage has been used to determine the sequence of

46

events and people involved. Per the FIR, police have arrested 91 people and are searching for 55 additional accused. Maruti Suzuki in its statement on the unrest, announced that all work at the Manesar plant has been suspended indefinitely. A Suzuki spokesman said Manesar violence won't affect the auto maker's business plans for India. The shut down of Manesar plant is leading to a loss of about Rs 75 crore per day. On July 21, 2012, citing safety concerns, the company announced a lockout under The Industrial Disputes Act, 1947 pending results of an inquiry the company has requested of the Haryana government into the causes of the disorder. Under the provisions of The Industrial Disputes Act for wages, the report claimed, employees are expected to be paid for the duration of the lockout On July 26, 2012, Maruti announced employees would not be paid for the period of lock-out in accordance with Indian labour laws. The company further announced that it will stop using contract workers by March 2013. The report claimed the salary difference between contract workers and permanent workers has been much smaller than initial media reports - the contract worker at Maruti received about 11,500 per month, while a permanent worker received about 12,500 a month at start, which increased in three years to 21,000-22,000 per month. In a separate report, a contractor who was providing contract employees to Maruti claimed the company gave its contract employees the best wage, allowances and benefits package in the region. Shinzo Nakanishi, managing director and chief executive of Maruti Suzuki India, said this kind of violence has never happened in Suzuki Motor Corp's entire global operations spread across Hungary, Indonesia, Spain, Pakistan, Thailand, Malaysia, China and the Philippines.

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Mr. Nakanishi went to each victim apologising for the miseries inflicted on them by fellow workers, and in press interview requested the central and Haryana state governments to help stop such ghastly violence by legislating decisive rules to restore corporate confidence amid emergence of this new 'militant workforce' in Indian factories. He announced, "we are going to de-recognise Maruti Suzuki Workers Union and dismiss all workers named in connection with the incident. We will not compromise at all in such instances of barbaric, unprovoked violence." He also announced Maruti plans to continue manufacturing in Manesar, that Gujarat was an expansion opportunity and not an alternative to Manesar. Labour disputes are endemic in the auto industry of India and have affected other manufacturers. India has strict labour laws, but their application is widely sidestepped by hiring low-wage contract workers. Manesar violence adds to India's recent incidents of labour disputes turning to violence. Analysts claim recent incidents like Manesar violence suggest a need for urgent reform of archaic Indian labour laws, the rigid rules on hiring and layoffs, which harm the formal sector and discourage investment in India. Government mandated procedures for labour dispute resolution are currently very slow, with tens of thousands of cases pending for years. The government of India is being asked to recognise that incidents such as Manesar violence indicate a structural sickness which must be solved nationally. The company dismissed 500 workers accused of causing the violence and re-opened the plant on August 21, saying it would produce 150 vehicles on the first day, less than 10% of its capacity. Analysts said that the shutdown was costing the company 1 billion rupees ($18 million) a day and costing the company market share.

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The previous week company officials had announced that Maruti would scrap the practice of hiring contract workers and that the workers currently on temporary contracts would be made permanent. It would begin the process of hiring new workers on a permanent basis. MARUTI PRODUCTS 1. 800 (Launched 1983) 2. Omni (Launched 1984) 3. Gypsy (launched 1985) 4. WagonR (Launched 1999) 5. Alto (Launched 2000) 6. Swift (Launched 2005) 7. Estilo (Launched 2007) 8. SX4 (Launched 2007) 9. Swift DZire (Launched 2008) 10.A-star (Launched 2008) 11.Ritz (Launched 2009) 12.Eeco (Launched 2010) 13.Alto K10 (Launched 2010) 14.Maruti Ertiga(Launched 2012), seven seater MPV R3 designed and developed in India, will compete with Toyota Innova, Mahindra Xylo, and Tata Sumo Grande. In early 2012, Suzuki Ertiga will be exported first to Indonesia in Completely Knock Down car. 15.Maruti XA Alpha based compact SUV to compete with the Ford EcoSport & Renault Duster will be launched in the year 2014

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16.Maruti Alto 800(Launched 2012), Maruti Alto 800 is finally out with a price tag of Rs.2.44 lakh (ex-showroom New Delhi). Maruti has rolled out three standard variants-Alto 800 Base, Alto 800 LX and Alto 800 LXi and three CNG variants -Alto 800 CNG Base,Alto 800 CNG LX and Alto 800 CNG LXi. The 0.8 litre of petrol engine is very fuel efficient and pushes the car to produce high class mileage of 17 to 22 km per litre. The 45.7BHP of peak power produced by the engine is also successful on road by delivering topnotch performance. IMPORTED 1. Grand Vitara (Launched 2007) 2. Kizashi (Launched 2011) DISCONTINUED CAR MODELS 1. 1000 (19902000) 2. Zen (19932006) 3. Esteem (19942008) 4. Baleno (19992007) 5. Versa (20012010) 6. Grand Vitara XL7 (20032007) MANUFACTURING FACILITIES Maruti Suzuki has two manufacturing facilities in India. Both manufacturing facilities have a combined production capacity of 14,50,000 vehicles annually. During a recent meeting of the Gujarat chief minister with Suzuki Motor Corp chairman & CEO Osamu Suzuki,the Chairman had said that the work on car manufacturing plant at Mandal near Ahmedabad would be started soon. Maruti Suzuki to set up second plant in Gujarat; acquires 600 acres

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GURGAON MANUFACTURING FACILITY The Gurgaon Manufacturing Facility has three fully integrated manufacturing plants and is spread over 300 acres (1.2 km2). All three plants have an installed capacity of 350,000 vehicles annually but productivity improvements have enabled it to manufacture 900,000 vehicles annually. The Gurgaon facilities also manufacture 240,000 K-Series engines annually. The entire facility is equipped with more than 150 robots, out of which 71 have been developed in-house. The Gurgaon Facilities manufactures

the 800, Alto, WagonR, Estilo, Omni, Gypsy, Ertiga and Eeco. MANESAR MANUFACTURING FACILITY The Manesar Manufacturing Plant was inaugurated in February 2007 and is spread over 600 acres (2.4 km2). Initially it had a production capacity of 100,000 vehicles annually but this was increased to 300,000 vehicles annually in October 2008. The production capacity was further increased by 250,000 vehicles taking total production capacity to 550,000 vehicles annually. The Manesar Plant produces the Astar, Swift, Swift DZire, SX4 and Ritz. GOVERNMENT NOTICE TO PAY RS 235 CRORE FOR MANESAR PLANT LAND ALLOTMENT On June 25, 2012, Haryana State Industries and Infrastructure Development Corporation demanded Maruti Suzuki to pay an additional Rs 235 crore for enhanced land acquisition for its Haryana plant expansion. The agency reminded Maruti that failure to pay the amount would lead to further proceedings and vacating the enhanced land acquisition. SALES AND SERVICE NETWORK

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As of 31 March 2011 Maruti Suzuki has 933 dealerships across 666 towns and cities in all states and union territories of India. It has 2,946 service stations (inclusive of dealer workshops and Maruti Authorised Service Stations) in 1,395 towns and cities throughout India.[ It has 30 Express Service Stations on 30 National Highways across 1,314 cities in India. Service is a major revenue generator of the company. Most of the service stations are managed on franchise basis, where Maruti Suzuki trains the local staff. Other automobile companies have not been able to match this benchmark set by Maruti Suzuki. The Express Service stations help many stranded vehicles on the highways by sending across their repair man to the vehicle. MARUTI INSURANCE Launched in 2002 Maruti Suzuki provides vehicle insurance to its customers with the help of the National Insurance Company, Bajaj Allianz, New India Assurance and Royal Sundaram. The service was set up the company with the inception of two subsidiaries Maruti Insurance Distributors Services Pvt. Ltd and Maruti Insurance Brokers Pvt. Limited This service started as a benefit or value addition to customers and was able to ramp up easily. By December 2005 they were able to sell more than two million insurance policies since its inception. MARUTI FINANCE To promote its bottom line growth, Maruti Suzuki launched Maruti Finance in January 2002. Prior to the start of this service Maruti Suzuki had started two joint ventures Citicorp Maruti and Maruti Countrywide with Citi Group and GE Countrywide respectively to assist its client in securing loan. Maruti Suzuki tied up with ABN Amro Bank, HDFC Bank, ICICI Limited, Kotak Mahindra, Standard

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Chartered Bank, and Sundaram to start this venture including its strategic partners in car finance. Again the company entered into a strategic partnership with SBI in March 2003 Since March 2003, Maruti has sold over 12,000 vehicles through SBI-Maruti Finance. SBIMaruti Finance is currently available in 166 cities across India. "Maruti Finance marks the coming together of the biggest players in the car finance business. They are the benchmarks in quality and efficiency. Combined with Maruti volumes and networked dealerships, this will enable Maruti Finance to offer superior service and competitive rates in the marketplace". Jagdish Khattar, Managing director of Maruti Udyog Limited in a press conference announcing the launch of Maruti Finance on 7 January 2002 Citicorp Maruti Finance Limited is a joint venture between Citicorp Finance India and Maruti Udyog Limited its primary business stated by the company is "hire-purchase financing of Maruti Suzuki vehicles". Citi Finance India Limited is a wholly owned subsidiary of Citibank Overseas Investment Corporation, Delaware, which in turn is a 100% wholly owned subsidiary of Citibank N.A. Citi Finance India Limited holds 74% of the stake and Maruti Suzuki holds the remaining 26%. GE Capital, HDFC and Maruti Suzuki came together in 1995 to form Maruti Countrywide. Maruti claims that its finance program offers most competitive interest rates to its customers, which are lower by 0.25% to 0.5% from the market rates. MARUTI TRUEVALUE Maruti True service offered by Maruti Suzuki to its customers. It is a market place for used Maruti Suzuki Vehicles. One can buy, sell or exchange used Maruti Suzuki vehicles with the help of this service in India. As of 31 March 2010 there are 341 Maruti True Value outlets.]

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N2N FLEET MANAGEMENT N2N is the short form of End to End Fleet Management and provides lease and fleet management solution to corporates. Clients who have signed up of this service include Gas Authority of India Ltd, DuPont, Reckitt Benckiser, Sona

Steering, Doordarshan, Singer India, National Stock Exchange and Transworld. This fleet management service include end-to-end solutions across the vehicle's life, which includes Leasing, Maintenance, Convenience services and Remarketing. ACCESSORIES Many of the auto component companies other than Maruti Suzuki started to offer components and accessories that were compatible. This caused a serious threat and loss of revenue to Maruti Suzuki. Maruti Suzuki started a new initiative under the brand name Maruti Genuine Accessories to offer accessories like alloy wheels, body cover, carpets, door visors, fog lamps, stereo systems, seat covers and other car care products. These products are sold through dealer outlets and authorized service stations throughout India.[ MARUTI DRIVING SCHOOL As part of its corporate social responsibility Maruti Suzuki launched the Maruti Driving School in Delhi. Later the services were extended to other cities of India as well. These schools are modelled on international standards, where learners go through classroom and practical sessions. Many international practices like road behaviour and attitudes are also taught in these schools. Before driving actual vehicles participants are trained on simulators. "We are very concerned about mounting deaths on Indian roads. These can be brought down if government, industry and the voluntary sector work together in an integrated manner. But we felt that Maruti should

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first do something in this regard and hence this initiative of Maruti Driving Schools." Jagdish Khattar, at the launch ceremony of Maruti Driving School, Bangalore ISSUES AND PROBLEMS On 24 February 2010, Maruti Suzuki India announced recalling of 100,000 A-Star hatchbacks to fix a fuel leakage problem. the company will replace the gaskets for all 100,000 A-Star cars. EXPORTS Maruti Exports Limited is the subsidiary of Maruti Suzuki with its major focus on exports and it does not operate in the domestic Indian market. The first commercial consignment of 480 cars were sent to Hungary. By sending a consignment of 571 cars to the same country Maruti Suzuki crossed the benchmark of 300,000 cars. Since its inception export was one of the aspects government was keen to encourage. [citation needed] Every political party expected Maruti Suzuki to earn foreign currency. Angola, Benin, Djibouti, Ethiopia, Europe, Kenya, Morocco, Nepal, Sri Lanka, Uganda, Chile, Guatemala, Costa Rica and El Salvador are some of the markets served by Maruti Exports.[citation needed] AWARDS AND RECOGNITION The Brand Trust Report published by Trust Research Advisory has ranked Maruti Suzuki in the seventh position in 2011 and the sixth position in 2012 among the brands researched in India. Bluebytes News, a news research agency, rated Maruti Suzuki as India's Most Reputed Car Company in their Reputation Benchmark Study conducted for the Auto (Cars) Sector which launched in April 2012.

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ORGANISATIONAL STRUCTURE

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PERFORMANCE APPRAISAL IN MARUTI SUZUKI

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PERFORMANCE APPRAISAL IN MARUTI SUZUKI

APPRAISAL New Appraisal System based on KRAs & Targets Review of Targets done at

regular Intervals with special relevance to People Development an important KRA practise. REWARD Promotions based on Performance Productivity & Profit-linked IncentiveSchemes Training including Long-term SMC Japan Trg Highest paid workforce in the Industry, if not the Country CAREER DESIGN Performance & Potential based Appraisals Fast Track Option for High-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 Employee Welfare - Residential Colonies for Employees Chakkarpur & Bhondsi- Hospitalisation Reimbursement on actuals without Ceiling- Vehicle Loans- Household Equipment Loans- House Building Advance- Annual Advance MUL PF Trust for better Mgt., Service & speedy redress Proposed MUL Pension Scheme Learning Opportunity - Benchmark in Auto Technology Professional Value addition through Training Opportunity for foreign training at SMC, Japan Job Rotation & Job enrichment

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EMPLOYEE ENGAGEMENT -ESOPs Maruti Udyog Ltd. Employees Mutual Benefit Fund Scheme Managed by a 10member Trust Fixed Equity of 0.26% Lock-in period of 3 years Transferable Internally SUGGESTION SCHEME & QUALITY CIRCLES For better quality and productivity. Through involvement of all employees and teamwork. During the year 1999-2000 :-i) Suggestions Implemented - 52,054ii) Cost Saving (in crores) - Rs. 131.69 Crores iii) Number of QC Groups - 510iv) QC Meetings held - 7189 Target for SS & QC for 2000-01,Suggestions Implemented Prod. & VI 1implmented/employee/month Other areas 8.4

implemented/employee/month Cost Saving Rs. 165 crores (25%)increase for the Company QC Meeting - 13 meetings/QC Gp./ Year Target Company-wide QC Groups (8-15 members per group) Monthly QC Meetings on the First Wednesday each Month Company-wide QC Competitions - Best Team sent to SMC MDs lunch with Best QC Team & Best Suggestion Winner

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FUTURE CHALLENGES
- HR INITIATIVES REALIGNING ORGANISATION CULTURE BASED ONNEW VISION & VALUES OBJECTIVE PERFORMANCE MANAGEMENT & DEVELOPMENT SYSTEM TRANSPARENT JOB ROTATION & JOB ENRICHMENT 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 PROFESSIONAL SKILL - CUSTOMISED TRAINING - TRAINING TO THE PERSONNEL OF BUSINESS PARTNERS INTERNAL COMMUNICATION UNION ALIGNMENT EMPLOYEE INVOLVMENT & PARTICIPATION MUL to change gear on performance appraisal -- 100% link between pay, productivity RENEWING its efforts at cutting costs and improving productivity, Maruti Udyog Ltd (MUL) has drawn up a new human resources policy, which for the first time, entirely links performance to pay packets for all its executives and managers. MUL has traditionally had a performance-based component of about 30 percent in its compensation package for its executives. But now it has gone the whole hog and 60

decided that in addition to the hike in individual perquisites increments to even the basi c salary will now depend on the employees' performance during the year. The new performance appraisal and compensation system is likely to affect over 1,000 employees -- executives and senior and middle level managers .Company officials said the changeover to a completely performance-based compensation system has been under discussion amongst MUL's senior management and directors for quite sometime now. So, the new appraisal process has not come as a surprise for most of the employees and has been accepted by them, the official said. ``Over the past week, the principle underlying the new system has been communicated at length throughout the company and feedback has been obtained,'' theofficial said.In the run-up to the new remuneration system, the company has also developed a new performance measurement and development method along with the noted consultant, Mr M.B. Athreya. The performance measurement process will complement the new remuneration s ystem.MUL sources said rather than appraise employees through confidential reports, the new performance measurement system involves an interactive process of goal setting, review and counselling by managers throughout the year. It incorporates qualitative aspects, along with quantitative targets.The employees are being put through workshops to train them on the various aspects of the system developed with Mr Athreya. The new system will take effect from this year.The new system is expected to help enhance managerial performance and skills, while making the organisation more capable of assessing its costs and returns. The move is also indicative of the company's renewed stress on increasing per employee productivity.MUL, which has been beleaguered by low margins and a

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falling bottom line,has also been forced to take a hard look at its costs this year. For the first time, MUL has slipped into the red and recorded a loss during the year 200001. MUL has also drawn up a voluntary retirement scheme (VRS) forits employees. The VRS programme received in-principle approval from the board last month. While the VRS proposal is yet to be formally notified and offered to the company's employees, it is expected to apply equally to all the staff members, including the shop floor workers, company sources said.

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MARUTI ADOPTS `360 DEGREE' APPRAISAL SYSTEM Maruti has introduced a unique 360-degree feedback system, starting with its senior leadership. The new system has been co-developed with Ernst & Young and has been put in place recently. Under the 360-degree feedback system, the employee is rated not just by his superiors, but also by his peers and subordinates."We are starting the 360-degree feedback process with employees in the top management such as chief general managers and general managers, whose performance will now be assessed based on feedback from their peers and junior management employees within the same department. Till last year,their performance was being appraised only by the Directors and the Managing Director," says Maruti's Chief General Manager (HR), Mr

S.Y.Siddiqui.Ernst & Young, in consultation with Maruti, has listed a set of leadership competencies that are expected in a general manager. Based on that, it has prepared a questionnaire to which peers and subordinates can respond online.Although acknowledged as an effective tool for leadership development in the West, Indian companies have been shy of introducing such a feedback system for fear of disturbing traditional hierarchical structures. HR consultants feel that the critical issues in implementing such a system include assuring respondents that their feedback will remain confidential and convincing the person receiving the feedback that this is a development tool and not an appraisal tool. Maruti has handled this by getting E&Y and other consultants to make detailed presentations to the senior management personnel before the process got under way. The company has a committee of general managers, called Human Resource Inter Divisional Committee(HRIDC), which is consulted on all major HR issues.The

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initiative has been unveiled with an e-mail by Maruti's Managing Director, Mr Jagdish Khattar, asking people to support the online questionnaire process. The 360-degree feedback system will also include a self-appraisal by the general manager. At the end of the process,he can compare his self-appraisal with the assessment of his subordinates and peers. One of the benefits that Maruti is hoping to get out of the 360-degreefeedback process is the sense of empowerment and importance felt by subordinates, when they are asked to offer their feedback about their superiors. Maruti currently has over 4,000 employees on its rolls.

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CHAPTER-3 RESEARCH METHODOLOGY

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RESEARCH METHODOLOGY

Methodology means a simple set of methods or procedures, they relate to a particular discipline or field of inquiry. There are mainly three types of research methodology:a) Exploratory Research or Formulative Research b) Descriptive Research c) Casual Research

Exploratory Research
The objective of exploratory research is to gather preliminary information that will help define problems and suggest hypotheses. Exploratory research provides insights into and comprehension of an issue or situation. It should draw definitive conclusions only with extreme caution. Exploratory research is a type of research conducted because a problem has not been clearly defined. Exploratory research helps determine the best research design, data collection method and selection of subjects. Exploratory research is used when problems are in a preliminary stage. Exploratory research is used when the topic or issue is new and when data is difficult to collect. Exploratory research is flexible and can address research questions of all types (what, why, how). Exploratory research is often used to generate formal hypotheses. Descriptive Research The objective of descriptive research is to describe things, such as the market potential for a product or the demographics and attitudes of consumers who buy the product. Descriptive research, also known as statistical research, describes data and

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characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, what, where, when and how... Although the data description is factual, accurate and systematic, the research cannot describe what caused a situation. Thus, Descriptive research cannot be used to create a causal relationship, where one variable affects another. In short descriptive research deals with everything that can be counted and studied. But there are always restrictions to that. Your research must have an impact to the lives of the people around you. For example, finding the most frequent disease that affects the children of a town. The reader of the research will know what to do to prevent that disease thus; more people will live a healthy life. Descriptive research generally goes before explanatory research. Descriptive research generally precedes explanatory research. For example, over time chemists have described the elements through the periodic table. The periodic tables description of the elements allows people to think about the elements in helpful ways. It allows for explanation and prediction when elements are combined. Casual Research Causal Research explores the effect of one thing on another and more specifically, the effect of one variable on another. The research is used to measure what impact a specific change will have on existing norms and allows market researchers to predict hypothetical scenarios upon which a company can base its business plan. For example, if a clothing company currently sells blue denim jeans, causal research can measure the impact of the company changing the product design to the colour white.

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Following the research, company bosses will be able to decide whether changing the colour of the jeans to white would be profitable. To summarize, causal research is a way of seeing how actions now will affect a business in the future. Causal Research 'The objective of causal Research is to test hypotheses about causeand-effect relationship. RESEARCH STATEMENT STUDY OF PERFORMANCE APPRAISAL SYSTEM IN BSNL RESEARCH DESIGN: Analytical Research SAMPLE DESIGN: Simple Random Sampling SAMPLE UNIT: Employee in MARUTI SUZUKI. SAMPLE SIZE: 50 UNIVERSE OF STUDY: LUCKNOW DATA COLLECTION: Data Type: Primary DATA COLLECTION INSTRUMENT : Questionnaire. Proposed Analysis Technique: Graphs and Charts

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CHAPTER-4 DATA ANALYSIS

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DATA ANALYSIS

1. Do you think that there is a need of Performance Appraisal? YES NO 97% 3%

Interpretation: Most of the respondent feel need of performance appraisal.

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2. Are you satisfied with the present appraisal system? YES NO 71% 29%

Interpretation: Most of the respondents are satisfied with current performance appraisal system.

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3. The frequency of Appraisal System should be six monthly?

YES NO

78% 22%

Interpretation: Most of the respondents said that appraisal system should be six monthly.

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4. The gap of Appraisal System should be half-yearly? YES NO 78% 22%

Interpretation: Most of the respondents said that gap of appraisal system should be half yearly.

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5. Does performance appraisal helps in polishing skills and performance area?

YES NO

83% 17%

Interpretation: Most of the respondents think that performance appraisal helps in polishing skills and performance area.

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6. Does personal bias creeps-in while appraising an employee?

YES NO

53% 47%

Interpretation: Most of the respondents think that personal bias creeps-in while appraising an employee.

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7. If given a chance, would employees like to review the current appraisal technique? YES NO 91% 9%

Interpretation: Most of the respondents would like to review the current appraisal technique in case of getting a chance to review.

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8. Does 360 degree appraisal is considered most appropriate in todays corporate?

YES NO

62% 38%

Interpretation: Most of the respondents think that 360 degree appraisal is considered most appropriate in todays corporate.

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9. Does performance appraisal leads to identification of hidden potential?

YES NO

76% 24%

Interpretation: Most of the respondents think that performance appraisal leads to identification of hidden potential.

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10. Does Performance Appraisal directly effect your motivation? YES NO 98% 2%

Interpretation: Most of the respondents think that performance appraisal leads to identification of hidden potential.

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CHAPTER-5

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FINDINGS
Performance appraisal is play great role for the growth and development of the organization. In recently year performance appraisal is most important to the every organization for the purpose of productivity and promotion policy. Some specific findings: Performance appraisal is very helpful to evaluate the employees performance. Good job performance employees increase the productivity. Highly satisfy employees perform very well. Motivated employees also perform very well. Performance appraisal develops the promotion policy, transfer policy or demotion policy. Performance appraisal to maintain the good relationship between top management and subordinate. Every organization, irrespective of its size, has an appraisal system for its employees. This implies the performance appraisal has become an indispensable activity in any organization. Most of the companies have separate appraisal system for each level of employees. These appraisal systems differ on the factors on which a person is rated and the nature of duties handled by him. Even when a same appraisal system exists in different organizations, the probability of its success is not the same.

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This can be attributed to the following factors: implementation problems, organizational climate, and commitment from top management. In most of the companies it is seen that the employees are not satisfied with the way they are appraised or they havent been appraised properly. For this matter, almost all the companies have interview and discussion. The frequency of appraisal in all organisations is yearly. Where appraisal is based on Key Result Areas, a mid-term review is also undertaken. This data is then compiled and the final appraisal is conducted at the end of the year. In most of the cases the immediate supervisors is the appraiser but some times it is also the HR department or the HOD. All organizations have goal setting as part of appraisal. The performance is evaluated against these targets. On an average 85% of the employees in an organization are motivated by performance appraisal. Most of the companies use the data that is maintained for every employee to compare the performance over a period of time. Some companies also use this data for making decision regarding job rotation, succession planning. Very few companies make use of this data for retrenchment as proof of poor performance. A good deal of respondents felt that appraisal is likely to be more successful when it is linked with financial and semi-financial incentives like promotion, bonus, and increments. This increases the commitment from the parties concerned the appraisal and the appraise.

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 In most of the organizations training is provided for the appraisal system one to two weeks before the appraisal and also when new or revised Performance appraisal system is introduced.

SUGGESTIONS
Develop clear job description. To select appropriate selection process. To provide effectiveness orientation program, education and training. To provide on-going coaching and feedback. Conduct quarterly performance development discussion. To provide promotion and career development opportunities. To develop the skills, knowledge and ability through the training process. To provide the job rotation and job enhancement to the employees. To motivated the employees, which is very helpful to increase the organizational productivity. Performance appraisal should not be perceived just as a regular activity but its importance should be recognized and communicated down the line to all the employees. There should be a review of job analysis, job design and work environment based on the performance appraisal. It should bring more clarity to the goal and vision of the organization. It should provide more empowerment to the employees.

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 New methods of appraisal should be adopted so that both appraiser and the appraise take interest in the appraisal process. The employees who have excellent performance should be used as a mentor for other employees which would motivate others to perform better. Employees should be given feedback regarding their appraisal. This will help them to improve on their weak areas. Financial and non-financial incentives should be linked to the annual appraisal system so that employees would be motivated to perform better. New mechanisms should be evolved to educe the time factor involved in the procedure of appraisal. Introducing online-appraisal can do this. The frequency of training program for the appraiser should be increased and these sessions should be made interactive. The awareness sessions for the employees/appraises should be made more interactive and the views and opinion of the appraisees regarding appraisal should be given due consideration. Assistance should be sought from specialists for framing a proper appraisal system that suits the organization climate. Constant monitoring of the appraisal system should be done through discussions, suggestions, interactions. Combining the different methods of appraisal can minimize the element of biasness in an appraisal. Like the Rating method combined with assessment center method would give an evidence of poor/unfavorable or outstanding behaviour of the appraisee, if any. Use of modern appraisal techniques like 360o appraisal, assessment centers which are more effective. 84

 More transparency should be brought about in the appraisal system. The appraisal system should cover all employees in the organisation both white collar and blue-collar jobs.

CONCLUSION
Essentials for a Successful Performance Appraisal System
Basing appraisals on accurate and current job descriptions Ensuring that appraisers have adequate knowledge and direct experience of the employees performance Providing ratings via aggregated anonymous feedback when multiple sources of information are used Incorporating performance appraisals into a formal goal setting system Offering adequate support and assistance to employees such as professional development opportunities in order to improve their performance Conducting appraisals on a regular basis (at least two times a year) rather than annually. If resource constraints do not permit frequent formal appraisals, consider conducting one formal appraisal annually, with a review of progress in the mid-year and ongoing review in regular supervision meetings

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REFERENCES
Human Resource And Personnel Management Human Resource Management Human Resource Management - K. Aswathappa - P. Subba Rao - S.K.Bhattacharya

WEBLIOGRAPHY www.performanceappraisal.com www.humanresource.com www.managementanswers101.com www.marutisuzuki.co.in

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ANNEXURE

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QUESTIONNAIRE

NAME: NUMBER: AGE:

CONTACT

GENDER:

1. Do you think that there is a need of Performance Appraisal? YES NO ( ) ( )

2. Are you satisfied with the present appraisal system? YES NO ( ) ( )

3. The frequency of Appraisal System should be six monthly ? YES NO ( ) ( )

4. The gap of Appraisal System should be half-yearly? YES NO ( ( ) )

5. Does performance appraisal helps in polishing skills and performance area? YES( ) NO( )

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6. Does personal bias creeps-in while appraising an employee? YES ( ) NO ( )

7. If given a chance, would employees like to review the current appraisal technique? YES NO ( ) ( )

8.360 degree appraisal is considered most appropriate in todays corporate YES NO ( ( ) )

9. Does performance appraisal leads to identification of hidden potential? YES NO ( ) ( )

10. Does Performance Appraisal directly effects your motivation ? YES NO ( ( ) )

89