A Summer Internship Project

A STUDY OF PERFORMANCE APPRAISAL SYSTEM

WITH RESPECT TO HONDA CARS INDIA LTD.

Research project report submitted in partial fulfillment of the

requirements for the degree of
INTEGRATED DUAL DEGREE PROGRAMME BBA-MBA (2015-
2020)

BY
Ankur Singh
15/IMB/014

Under the supervision of

Dr. Lovy Sarikwal

TO THE
SCHOOL OF MANAGEMENT
GAUTAM BUDDHA UNIVERSITY
AUGUST 2018

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 CERTIFICATE OF APPROVAL

The following Summer Internship Project Report titled "Performance Appraisal System with
respect to Honda Cars India Ltd." is hereby approved as a certified study in management
carried out and presented in a manner satisfactory to warrant its acceptance as a prerequisite for
the award of BBA MBA for which it has been submitted. It is understood that by this approval
the undersigned do not necessarily endorse or approve any statement made, opinion expressed or
conclusion drawn therein but approve the Summer Internship Project Report only for the
purpose it is submitted to the Summer Internship Project Report Examination Committee for
evaluation of Summer Internship Project Report

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 A STUDY OF Performance
Appraisal System with respect
to Honda Cars India Ltd.

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 ACKNOWLEDGEMENT
I express my sincere gratitude to Dr Lovy Sarikwal, Faculty for his valuable guidance and
support at all time.

I am grateful to Mr. Prakash Sharma, Senior Executive (HR-IR), HCIL, Greater Noida under
his able guidance and support and provided me the best support and information throughout my
summer internship report completed at time.

It is greater pleasure to survey about Honda Cars India Limited. (a leading automobile
company), a great source of inspiration all throughout. I wish to express my heartfelt gratitude to
all the staffs of Honda Cars India Limited. Providing me all the necessary information
throughout this research survey has completed at time.

I would again like to thank all the others those who had been connected with the project in some
way or the other, and made this research work in front of you timely accessible.

Ankur Singh
Roll No.
15/IMB/014
7 Semesters

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EXECUTIVE SUMMARY 5, 6

INTRODUCTION 8 -10

AGENCY PROFILE 11- 15

THE OBJECTIVE OF STUDY 16

ORGANIZATION OVERVIEW 17-18

MARKET SHARE , POSITION & 19-21
COMPITITOR OF HCIL
SWOT ANALISIS OF HCIL 22

RESEARCH METHODOLOGY 23-24

DATA ANALYSIS 25-34

FINDING & CONCLUSTION 35

SUGGESTIONS 36-38
LIMITATION 39

BIBLOGRAPHY 40-41
QUESTIONNAIRE 41-43

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 EXECUTIVE SUMMARY

This summer internship report is an attempt to know how the classroom theories can be applied
to the practical situation. As a student of BBA MBA, it is a part of study for everyone to undergo
summer internship at Honda Cars India Ltd. So for this purpose, This is a summer internship
project at Honda Cars India Ltd. In this is comprehensive report, Various aspect of Honda which
were discuss I have observed and perceived during my internship training. The first part
comprises the detail about the company from the time of its incorporation to the current position.
Along with its processes policies and procedures during my internship programme. I have mainly
worked in Associate Relations department and the main focus was into Industrial Relation,
service management and HR Department. All the departments have been discussed in detail. The
main purpose of the internship is to learn by working in practical HR environment and to apply
the acquired during the studies in a real world scenario in order to tackle the problems using the
knowledge and skill learned during the academic process. This report covers many important
aspects which are related with Research on service of Honda. In the end the learning and
observations which I have undergone during my internship project. This report also contains my
perceptions, motivation level and the working environment of the organization. I started my
summer internship training on 1st June and was asked to do market research and do the service
qualities check. I learned how to organize the meetings with the clients and I also collected the
reviews of employees, staffs of Honda Cars India Ltd. It was the great experience working with
the company and it was a great start of my carrier with the great experience of corporate and it
also helped me in polishing my skills. HR guides the organization in the acquisition,
maintenance, development, supervision and measurement of the human assets and the results of
their work (quality, productivity and service) measurement. It manages the central and the most
vital component of an organization i.e. employees and supports ongoing communication,
feedback and dialogue about organizational goals between them and the supervisors.
Management is an ongoing process involving: planning, communication, goal and objective
setting, monitoring, modifying, evaluating, training, disciplining, measuring and learning from
the lessons learned in the past.

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COMPANY
PROFILE

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INTRODUCTION
Honda Cars India Ltd (HCIL) is a subsidiary of Honda of Japan for the production, marketing
and export of passenger cars in India. Formerly known as Honda Siel Cars India Ltd, it began
operations in 1995 as a joint venture between Honda Motor Company and Usha International of
Siddharth Shriram Group. In August, 2012, Honda bought out Usha International's entire 3.16
percent stake for ₹1.8 billion in the joint venture. The company officially changed its name to
Honda Cars India Ltd (HCIL) and became a 100% subsidiary of Honda
The History of Honda
Throughout his life, Honda's founder, Soichiro Honda, had an interest in automobiles. He worked
as a mechanic at the Art Shokai garage, where he tuned cars and entered them in races. In 1937,
with financing from his acquaintance Kato Shichiro, Honda founded Tōkai Seiki (Eastern Sea
Precision Machine Company) to make piston rings working out of the Art Shokai garage. After
initial failures, Tōkai Seiki won a contract to supply piston rings to Toyota, but lost the contract
due to the poor quality of their products. After attending engineering school without graduating,
and visiting factories around Japan to better understand Toyota's quality, by control processes
1941 Honda was able to mass-produce piston rings acceptable to Toyota, using an automated
process that could employ even unskilled wartime laborers.
Tōkai Seiki was placed under control of the Ministry of Commerce and Industry (called the
Ministry of Munitions after 1943) at the start of World War II, and Soichiro Honda was demoted
from president to senior managing director after Toyota took a 40% stake in the company. Honda
also aided the war effort by assisting other companies in automating the production of military
aircraft propellers.

Quality
"We have to aim for 120% product quality. It is unacceptable that even one customer in a
thousand even one customer in ten thousand - should receive a defective product.
That's why we have to aim for 120%." These words of founder Soichiro Honda define the
company's fundamental approach to quality, or more specifically, what it means to strive to be a

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company society wants to exist. Determined to meet or exceed the expectations of customers,
Honda is taking new initiatives to reach high product quality standards.
That is who we are. To strengthen customer trust by offering products founded on safety and
offering a new level of outstanding quality, Honda has created a quality cycle that continuously
enhances quality at every stage encompassing design, development, production, sales and after-
sales service.
Honda products have a reputation for reliability, durability and advanced features in markets and
territories worldwide.

All lives are precious. That's why Honda sees safety as one of the most vital aspect in car
making. Honda strives to make products with high levels of safety, so that everyone can have
a safe and pleasant journey wherever they go.
We are passionate about the safety of not just everyone who gets in a Honda, but of everyone
who shares the road with them too. That’s why we are leading society toward a radically
transformed mobility experience, one that is safer than most can currently even imagine. We also
envision that the future zero-collision mobility experience will be far faster and with zero carbon
emissions. We call this dream a Cooperative Car Society, and we’re already working hard to
make it real.

Background
Honda Cars India Limited’s (HCIL) aim is to become the Most Trusted Company, which the
Society would want to exist. Continued to be driven by this aim, HCIL has been undertaking
various activities under Corporate Social Responsibility (CSR), mainly in the areas of health,
education, livelihood, safety, environment protection, etc. with thrust on increased participation
of Associates at all levels of the Company.

Basis of the Policy

This Policy has been framed in compliance with the provisions of Section 135 of the Companies
Act, 2013 and the Companies (Corporate Social Responsibility Policy) Rules, 2014.

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Title & Scope

This Policy shall be called the ‘HCIL Corporate Social Responsibility Policy’ (hereinafter
referred to as “the CSR Policy”). The CSR Policy lays down the guidelines for undertaking
socially meaningful programmes for welfare and sustainable development of the community,
especially in and around the areas of operations of the Company, and to provide assistance /
relief to the people affected by natural disasters in any part of the Country.
The CSR Policy shall apply to all CSR activities or programmes undertaken by the Company in
India.

Honda’s Principle

Maintaining a global viewpoint, we are dedicated to supplying products of the highest quality yet
at a reasonable price for worldwide customer satisfaction.

Management Policies

 Proceed always with ambition and youthfulness.

 Respect sound theory, develop fresh ideas, and make the most effective use of time.

 Enjoy your work and encourage open communications.

 Strive constantly for a harmonious flow of work.

 Be ever mindful of the value of research and Endeavour.

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 MISSION & VISION OF HONDA CARS INDIA PVT. LTD.

VISION MISSION
Respect for the individual. Maintaining a global viewpoint, we
The Three Joys (buying, are dedicated to supplying products of
selling and creating). the highest quality, yet at a reasonable
Respect sound theory, develop price for worldwide customer
fresh ideas, and make the most satisfaction.
effective use of time.
Enjoy work and encourage
open communication.
Strive constantly for a
harmonious flow of work.
Be ever mindful of the value of
research and endeavor.

The history of the Honda Motor Corporation began with the vision of one man, Soichiro Honda.
His dream was personal mobility for everyone. It is a history of challenges-challenges confronted
and challenges overcome –by dedication, ingenuity and the pursuit of perfection. The Greatest
and most enduring challenge of all is to satisfy the ever changing needs of it’s customers. This is
the essential spirit of Honda.

Honda cars are built not just for people; they are built around people. It’s fundamental design
philosophy seeks to maximize the space for people while minimizing that required for
mechanical components. Pursuing the challenge of this no-compromise approach has led to
innovations that have profoundly influenced conventional concepts of car making in addition to
acquiring the a cumulated expertise necessary for the next century of accumulated needs.

The challenge of competition creates attributes such as high-performing, fuel-efficient engines;

high-speeds stability; responsive handling; and safety-conscious designs. Formula One racing,
the highest level of motor sports, provided Honda with the platform on which innovative

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technologies could be built. An unprecedented six consecutive constructors’ championships
demonstrated the validity of it’s engineering prowess.

At Honda’s network of manufacturing plants and R&D centers around the world, engineers seek
out new challenges in their never-ending pursuit of automotive perfection. These facilities not
only build products of the finest quality but also contribute to the local communities.

Satisfying the desires of it’s customers is the ultimate challenge.HCIL’s dedication to this
commitment is reflected in the dynamic and prestigious attributes found in every Honda
automobile.

DIFFERENT LOCATIONS OF OPERATIONS OF HCIL

Plant 1 Zonal Office - Kolkata
Honda Cars India Ltd.
Honda Cars India Ltd.
Zonal Office
Plot No. A-1, Sector 40/ 41 AMBUJA ECO SPACE BUSINESS PARK
PLOAT No. II/F/II, Block 4A,
Surajpur-Kasna Road
6th Floor , Newtown Rajahaat
Greater Noida Industrial Development Area Kolkata
Distt. Gautam Budh Nagar
Honda Cars India Ltd
U.P. 201 306 Regional Training Centre,
Manas Flour Mills,
Zonal Office:
Mollaber Village,
(Tel)0120 - 234 1313/ 1321/ 1327/ 1801/ 1806 Dhankunibil
Kolkata - 712310
(Fax) 0120 - 2341261
Roadside Assistance
24x7 assistance
Plant 2
For Allianz Global Assistance:
Honda Cars India Ltd. Call 1800 103 3121/0124-4263121
SPL-1, Tapukara Industrial Area, Khushkhera
For India Assistance:
Distt : Alwar Call 1800 103 5130/1800 266 0130
Rajasthan
Zonal Office - Mumbai
Honda Cars India Ltd.
Zonal Office - West
D-126, TTC Industrial Area,

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MIDC Shiravane, Nerul,Thane-Belapur Road,
Navi Mumbai, Maharashtra. Pin - 400706.
(Tel) 022 - 67895000 / 5001 / 5002 / 5003

Zonal Office - Chennai

Honda Cars India Ltd
Technical Support Centre,
Old No 26/New No46, Opp. ICICI Bank,
Ambattur Industrial Estate, Ambattur,
Chennai - 600058
(Tel)044 - 42083774 / 75 / 76 / 78

PRODUCT RANGE

2nd Generation Honda Jazz

The 5th Generation Honda City

8th Generation Honda Civic

8th Generation Honda Accord

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 Honda City (Ballade) — Launched 1998
 Honda Accord — Launched 2001, production temporarily discontinued in early 2014 in
anticipation of all-new model)
 Honda Civic — Launched 2006, production discontinued in 2012
 Honda Jazz (Fit) — Launched in 2009
 Honda Brio — Launched 2011
 Honda CR-V — Imported since 2003; 2013 model locally assembled
 Honda Amaze — Launched April 2013
 Honda Mobilio — Launched July 2014
 Honda BR-V - Launched May 2016

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 THE OBJECTIVE OF STUDY

To study the performance appraisal system at Honda cars India limited

ORGANIZATION OVERVIEW
HCIL currently employs more than 3500+ employees in its Greater Noida plant alone. Working
in the HR department that caters to the needs of such a huge manpower gave me experience of
working with multidisciplinary teams composed of people with varied backgrounds. It helped me
build confidence in my abilities by showing where and how can I apply my knowledge to real-
world problems. Also feedback from my superiors and colleagues gave me an insight into skills
that I am currently lacking and need to practice more actively.

HCIL's first manufacturing unit at Greater Noida commenced operations in 1997. Setup at an
initial investment of over 4.5 billion, the plant is spread over 150 acres (0.61 km2). The initial
capacity of the plant was 30,000 cars per annum, which was thereafter increased to 50,000 cars
on a two-shift basis. The capacity has further been enhanced to 100,000 units annually as of
2008. This expansion led to an increase in the covered area in the plant from 107,000 m² to over
130,000 m².

Honda setup its second plant in India at Tapukara in Alwar District of Rajasthan, spread over 450
acres with an investment of 3526 crores. It operates under the ISO 9001 standard for quality
management and ISO 14001 for environment management. HCIL has 248 dealership outlets
across 121 cities in 20 states and 3 Union Territories of India. It sold 189,062 units during the
period between April 2014 and March 2015 as against 1,34,399 units during the same period a
year ago, recording an increase of over 44%.

. Honda, the Japanese carmaker, is also planning to launch a compact SUV for the Indian market.
It was speculated that the company will launch the Jazz-based crossover- the Vezel; however, the
company is aiming to bring compact car in India market
Honda Cars India Limited’s (HCIL) aim is to become the Most Trusted Company, which the
Society would want to exist. Continued to be driven by this aim, HCIL has been undertaking

15
various activities under Corporate Social Responsibility (CSR), mainly in the areas of health,
education, livelihood, safety, environment protection, etc. with thrust on increased participation
of Associates at all levels of the Company.

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ORGANIZATIONAL OVERVIEW
Improve productivity by providing a non-polluted, hazard free environment to achieve integrated
workflow, eliminating unnecessary layers of work and avoiding waste .
Quality improvement by constant endeavor to do better and encourage self imposed quality
checks.
Periodic training & managerial development programs with a view to update knowledge and
skills, form healthy attitudes to such crucial matters as customer service, productivity, quality
and skill levels and thereby achieve increased levels of commitment to the organization, its
values and goals.
Respect for the individual by way of encouraging openness and approachability at all levels,
providing for open discussions and participation in decision-making process.
Clarity of the individual role by providing clear and written job descriptions along with key
result areas.
Encourage assumption of responsibility and have a transparent promotional reward policy along
with adequate feedback on performance.
Promote a democratic, but task -oriented atmosphere encouraging a cohesive team with a view to
ensuring warmth and good fellowship between all associates of the company and to foster a
sense of belonging

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MARKET SHARE, POSITION & COMPETITORS OF HCIL

TATA MOTORS

Market Share: Commercial Vehicles 63.94%, Passenger Vehicles 16.45%

Tata Motors Limited is India's largest automobile company, with consolidated revenues of USD
14 billion in 2013-14. It is the leader in commercial vehicles and among the top three in
passenger vehicles. Tata Motors has winning products in the compact, midsize car and utility
vehicle segments. The company is the world's fourth largest truck manufacturer, and the world's
second largest bus manufacturer with over 24,000 employees. Since first rolled out in 1954, Tata
Motors as has produced and sold over 4 million vehicles in India.
Tata Motors is the first company from India's engineering sector to be listed in the New York
Stock Exchange (September 2004), has also emerged as an international automobile company.
Through subsidiaries and associate companies, Tata Motors has operations in the United
Kingdom, South Korea, Thailand and Spain. Among them is Jaguar Land Rover, a business
comprising the two British brands which was acquired in 2008. In 2004, it acquired the Daewoo
Commercial Vehicles Company, South Korea's second largest truck maker. The rechristened Tata
Daewoo Commercial Vehicles Company has launched several new products in the Korean
market, while also exporting these products to several international markets. Today two-thirds of
heavy commercial vehicle exports out of South Korea are from Tata Daewoo. In 2005, Tata
Motors acquired a 21% stake in Hispano Carrocera, a reputed Spanish bus and coach
manufacturer, and subsequently the remaining stake in 2009. Hispano's presence is being
expanded in other markets.
In January 2008, Tata Motors unveiled its People's Car, the Tata Nano, a development which
signifies a first for the global automobile industry. Nano brings the comfort and safety of a car
within the reach of thousands of families. The standard version has been priced at USD 2,200 or
Rs.100,000 (excluding VAT and transportation cost). The Tata Nano has been subsequently
launched as planned, in India in March 2009

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MARUTI SUZUKI INDIA
Market Share: Passenger Vehicles 46.07%.

Maruti Suzuki India Limited, a subsidiary of Suzuki Motor Corporation of Japan, is India's
largest passenger car company, accounting for over 45% of the domestic car market. The
company offers a complete range of cars from entry level Maruti-800 and Alto, to stylish
hatchback Ritz, A star, Swift, Wagon-R, Estillo and sedans DZire, SX4 and Sports Utility vehicle
Grand Vitara. Since inception in 1983, Maruti Suzuki India has produced and sold over 10
million vehicles in India and exported over 500,000 units to Europe and other countries. The
company's revenue for the fiscal 2013-2014 stood over Rs 375,224 million and Profits After Tax
at over Rs. 22,886 million.

HYUNDAI MOTOR INDIA

Market Share: Passenger Vehicles 14.15%
Hyundai Motor India Limited is a wholly owned subsidiary of world's fifth largest automobile
company, Hyundai Motor Company, South Korea, and is the largest passenger car exporter.
Hyundai Motor presently markets 49 variants of passenger cars across segments. These includes
the Santro in the B segment, the i10, the premium hatchback i20 in the B+ segment, the Accent
and the Verna in the C segment, the Sonata Transform in the E segment.
Hyundai Motor, continuing its tradition of being the fastest growing passenger car manufacturer,
registered total sales of 559,880 vehicles in the year 2014, an increase of 14.4% over 2008. In the
domestic market it clocked a growth of 18.1% as compared to 2008 with 289,863 units, while
overseas sales grew by 10.7%, with export of 270,017 units. Hyundai Motor currently exports
cars to more than 110 countries across European Union, Africa, Middle East, Latin America and
Asia. It has been the number one exporter of passenger car of the country for the sixth year in a
row. In a little over a decade since Hyundai has been present in India, it has become the leading
exporter of passenger cars with a market share of 66% of the total exports of passenger cars from
India, making it a significant contributor to the Indian automobile industry.

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MAHINDRA & MAHINDRA
Market Share: Commercial Vehicles 10.01%, Passenger Vehicles 6.50%, Three Wheelers
1.31%
Mahindra & Mahindra is mainly engaged in the Multi Utility Vehicle and Three Wheeler
segments directly. The company competes in the Light Commercial Vehicle segment through its
joint venture subsidiary Mahindra Navistar Automotives Limited and in the passenger car
segment through another joint venture subsidiary Mahindra Renault. In the year 2009, on the
domestic sales front, the Company along with its subsidiaries sold a total of 220,213 vehicles
(including 44,533 three-wheelers, 8,603 Light Commercial Vehicles through Mahindra Navistar
Automotives and 13,423 cars through Mahindra Renault), recording a growth of 0.6% over the
previous year.
Mahindra & Mahindra is expanding its footprint in the overseas market. In 2009 the Xylo was
launched in South Africa. The company formed a new joint venture Mahindra Automotive
Australia Pty. Limited, to focus on the Australian Market.

ASHOK LEYLAND
Market Share: Commercial Vehicles 22%
Against the backdrop of the sharp slump in demand for commercial vehicles, during 2013-14,
Ashok Leyland registered sales of 47,118 medium and heavy commercial vehicles (M&HCV),
37.5% less than in the previous year. This includes 16,049 M&HCV buses and 31,069 M&HCV
trucks respectively, 8.7% and 46.3% less than in the previous year.
The company lost 1.8% market share in the Indian medium and heavy commercial vehicle
market during the financial year 2008-09, mainly due to loss of sales in the truck segment. This
was because the Eastern Region, where the Company's presence had been historically weak, was
relatively stable, whilst the market declined sharply in other regions.
While total industry volume of the medium and heavy duty buses declined by about 8.7%, the
Company's market share grew marginally and Ashok Leyland retained its number one position in
this segment.

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 SWOT ANALYSIS OF HCIL

STRENGTHS WEAKNESS
 Leader in the business of vehicle  Lack of awareness about the
lending and fleet management. organization.
 Operating with a fleet of more than  Fleet management concept is still
1.3 million vehicles across the vague in the Indian context .
globe.
 Strong organic growth in 29
countries.
 Sales and services and committed
workforce.
 Expertise in delivering customer
satisfaction.

OPPORTUNITIES THREATS
 explored market  Emergence of new players in
 High industrial growth automobile industry.
 Backing from financial institutes
available.

RESEARCH METHODOLOGY

RESEARCH DESIGN :

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 The research undertaken by me in research project is EXPLORATORY RESEARCH. The total
sample size taken is 25. In this survey I have used random sampling or merely specifically
convenience sampling as per their ease and availability.
The research methodology adopted for this can be stated as below:-
An extensive study of the topic through various sources and data available in books,
journals and internet, magazines and handbook of Honda Cars India limited.
A questionnaire was formulated to know the views and responses of the employees and
analyze them.

SAMPLE SIZE:- Data is collected from people working at HCIL. The questionnaire is
distributed to the 25 employees of the HCIL

The data for the present research study was collected through two methods:
1. Primary data collection method
2. Secondary data collection method

1. PRIMARY DATA COLLECTION

Step1 A structured questionnaire with definite, concrete and highly specified questions was prepared
in discussion with my industry guide. The rating scale used was summated scales or Likert- type
scales.
The respondents were asked to indicate their agreement or disagreement with each statement.
Step 2 Then it was distributed to a sample size of 25 covering new employees as well as existing
employees. The questionnaire was designed in a way so as to include different aspects of good
induction.
Step 3 Some information/ data were also collected by observation of the functioning of HR
department.
2. SECONDARY DATA COLLECTION
The secondary data was collected from companies manuals, describing the different process
carried by HR department for employees’ welfare and improve the morale of the employees and

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also Employee handbook. The level of adequacy was also checked to get adequate and sufficient
data.
 Magazines
 Reference books.
 News letter of HCIL
 Internet

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 DATA ANALYSIS
1) Following graph shows the number of years employees are serving HCIL.

Graph.1
YEARS OF SERVICE AT % age of employees.
HCIL
1-2 years 16 %
2-5 years 32 %
<5 years 52 %

RESULT: Out of total employees surveyed, 52% of the employees are working
with HCIL for more than 5 years revealing the companies trust and employees’
dedication and satisfaction level in the organization.

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2) The following chart shows whether the performance of employees has been
appraised or not in last 2-3 years .

RESULT: The performance of 72 % of the total employees interviewed, has been

appraised , revealing company’s capability of recognizing employees performance
and retaining talent in the organization.

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3) Performance appraisal system preferred by employees.

RESULT: 48% of the employees prefer the 360 degree appraisal system,
whereas MBO (40% ) is the second preference, followed by 90 degree appraisal
method and then the least and no preference for two way communication.

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4 .The following chart shows the satisfaction level of employees regarding the
company’s appraisal system.

RESULT: 56% of the total employees interviewed are not satisfied with the
company’s appraisal Performance management system, while the rest 44% are.

27
5. Following chart shows the reason’s given by employees who are not satisfied by
the company’s appraisal system.

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RESULT: Out of the total 44% employees , 36% employees feels that the the
company’s appraisal system is not transparent, 32% recommends a change in the
Boss’s attitude and further 32% feels that the appraisal results are unsatisfactory.

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6) Following chart shows whether the performance expectations are communicated
to employees or not.

RESULT: 64 % of the employees feel that the performance expectations are

communicated to them while rest 44% doe not agree with this fact.

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7. Following chart shows whether the company communicates the appraisal
objectives to the employees or not.

RESULT: Out of the total employees interviewed, 64% disagreed to the fact that
the appraisal objectives are communicated to them whereas rest 36% agreed .

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8. The following chart analysis whether the appraisal system results in recognition
of the employees work performance or not.

RESULT: Out of the total employees interviewed, 40% employees agreed that the
PMS of the company results in recognition of their work performance, while 52%
disagreed, and the remaining 25% strongly disagreed to this fact.

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9 Following chart analysis the PMS of HCIL on the basis of simplicity and
transparency.

RESULT: Out of the total employees interviewed , 52% employees gave HCIL
PMS a rating of 3 on a scale of 5, where 5 represents very simple and transparent
and 1 - not at all transparent and simple.

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10 Following chart analysis the 3 main roadblocks that an employee feels come in
the way of their communication.

Policies of company

Position of an
Series1
employee

Boss's Attitude

0 2 4 6 8 10 12 14

RESULT: Out of the total employees interviewed, 48% employees felt that Boss’s
attitude is the major roadblock in communication, Position of the employee also
adds to this problem , further suggesting the policies of the company.

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 FINDINGS & CONCLUSION

1. HCIL has a good edge over analyzing employees’ performance and retaining the best talents.
2. Company uses performance appraisal as a biggest tool for motivating employees.
3. HCIL has switched over to 360 degree and MBO as a method of performance appraisal
4. The following reasons emerged for the dissatisfaction of some employees with the
company’s Appraisal system:
- NON TRANSPARENCY OF THE PMS OF THE COMPANY
- BOSS’S ATTITUDE PROBLEM
- UNSATISFACTORY/ SURPRISING RESULTS.
5. The performance expectations i.e. (KRA, KPA) are clearly communicated to the employees
whereas the objectives behind performance appraisal are not known to the employees.
6. Scope of feedback is very less at HCIL, leading to a disturbed communication process
between superior and subordinate.

7. The company’s PMS is not truly transparent and is a bit complicated according to some views
of employees.

8. The employees feel that the following are the major roadblocks to an effective communication
system in HCIL:
- POLICIES OF THE COMPANY
- POSITION OF AN EMPLOYEE
- BOSS’S ATTITUDE.

9. HCIL has employed an efficient and effective Performance Management System.

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 SUGGESTIONS

Generally, when performance appraisal goes awry, the primary cause has little to do with
employees. For the most part, employees take their cues from management and human resources.
However, when individual employees perceive the process in negative ways, they can create or
damage even the best of appraisal processes.

To improve the performance appraisal of the company and make it a success, the following
points are recommended to the company.

1) Spending more time on performance appraisal than performance PLANNING, or ongoing

performance communication.

2) Comparing employees with each other.

Want to create bad feelings, damage morale, get staff to compete so badly they will not work as a
team? Then rank staff or compare staff. A guaranteed technique. And heck, not only can a
manager create friction among staff, but the manager can become a great target for that hostility
too. A bonus!

3) Forgetting appraisal is about improvement, not blame.

We do appraisal to improve performance, not find a donkey to pin a tail on or blame. Managers
who forget this end up developing staff that don't trust them, or even can't stand them. That's
because the blaming process if pointless, and doesn't help anyone. If there is to be a point to
performance appraisal it should be getting manager and employee working together to have
everyone get better.

4 )Thinking a rating form is an objective, impartial tool.

Many companies use rating forms to evaluate employees. They do that because it's faster than
doing it right. The problem comes when managers believe that those ratings are in some way
"real", or anything but subjective, often vague judgements that are bound to be subjective and
inaccurate. By the way, if you have two people rate the same employee, the chances of them

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agreeing are very small. THAT'S subjective. Say it to yourself over and over. Ratings are
subjective. Rating forms are subjective. Rating forms are not behavioral.

5) Stopping performance appraisal when a person's salary is no longer tied to the appraisals.

Lots of managers do this. They conduct appraisals so long as they have to do so to justify or
withhold a pay increase. When staff hit their salary ceiling, or pay is not connected to appraisal
and performance, managers don't bother. Dumb. Performance appraisal is for improving
performance. It isn't just about pay. If nothing else, everyone needs feedback on their jobs,
whether there is money involved or not.

6) Believing they are in position to accurately assess staff.

Managers delude themselves into believing they can assess staff performance, even if they hardly
ever see their staff actually doing their jobs, or the results of their jobs. Not possible. Most
managers aren't in a position to monitor staff consistently enough to be able to assess well and
besides what manager wants to do that or has the time. What employee wants their manager
perched, watching their every mood. That's why appraisal is a partnership between employee and
manager.

7) Canceling or postponing appraisal meetings.

Happens a whole lot. I guess because nobody likes to do them, so managers will postpone them
at the drop of a hat. Why is this bad? It says to employees that the process is unimportant or
phony. If managers aren't willing to commit to the process, then they shouldn't do it at all.
Employees are too smart not to notice the low priority placed on appraisals.

8) Measuring or appraising the trivial.

Managers are quick to define customer service as "answering the phone within three rings", or
some such thing. That's easy to measure if you want to. What's NOT easy to measure is the
overall quality of service that will get and keep customers. Measuring overall customer service is
hard, so many managers don't do it. But they will measure the trivial.

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9) Surprising employees during appraisal.

Want to really waste your time and create bad performance? This is a guaranteed technique.
Don't talk to staff during the year. When they mess up, don't deal with it at the time but SAVE it
up. Then, at the appraisal meeting, truck out everything saved up in the bank and dump it in the
employee's lap. That will show them who is boss!

10) Thinking all employees and all jobs should be assessed in exactly the same way using the
same procedures.

Do all employees need the same things to improve their performance? Of course not. Some need
specific feedback. Some don't. Some need more communication than others. And of course jobs
are all different Do you think we can evaluate the CEO of Ford using the same approach as we
use for the person who cleans the factory floor? Of course not. So, why do managers insist on
evaluating the receptionist using the same tools and criteria as the civil engineers in the office?

Finally feedback and continuous communication should be made a major feature in the
organization. Employees need to be given feedback at regular intervals so that they are aware of
where they are going wrong and what are they expected to do.

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 LIMITATIONS OF THE STUDY

Some of the Obstacles while making this report which turned out to be true learning for me.
Education is not for living, it is for life, and it is the practical experience i.e. the life itself which
in real sense educates everyone. The following listed are a few limitations or the learning points
that I faced while making my project report –

Time Constraint – I had to set deadlines for self and complete the various parts of the report. It
required me to manage my time in such a way that I do not disappoint the expectations of my
industry guide and be at the right pace in completing the report too.

Geographical Limitations - The study was conducted in the various departments at HCIL.
Hence, the result may not be very accurate as per the national industry standards.

Data Collection –The main data was collected through structured interviews and questionnaires
of the Human Resource personnel. People were very apprehensive about giving the information
and completely refused to speak about Performance Appraisal since they feared turbulence
among the employees, this being the peak time of the appraisal.

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 BIBLIOGRAPHY
BOOKS
 Rao V.S.P (2000)1st ED, Human Resource Management Text and Cases, Excel, New
Delhi
 Harold S. Geneen, Communications Executive (1997), Core of HR: Effective
Performance Management System.
 Mary Mosquera, March 27,(2009), How performance management systems are moving
forward, Cincinnati, OH: South-Western Publishing.
 Scott, S.G., & Einstein, W.O. (2001), Strategic Performance Appraisal in Team-based
Organizations: one size does not fit all. Academy of Management Executive, 15 (2), 107-
116.
 Tyson, S., & York, A. (2001), Essentials of Human Resource Management, 4th Edition,
Oxford, Jordan Hill.
 Armstrong, M (2001), A Handbook of Human Resource Management Practice, 8th
Edition, London, Kogan Page.
 KEANE, (2007)., Human resource management for Southeast Asia.
Prentice Hall, New York.
 Poon, J.M.L. (2004). Effects of performance appraisal politics on job satisfaction and
turnover intention, Personnel Review, 33 (3), 322-334.
MAGAZINES & NEWSPAPERS
 Business World
 Business Today
 The Hindustan Times
 HR Performance Management Systems in an Organization

WEBSITES
 www.hondasielcarsindia.com
 www.hondamotors.com
 www.googlesearchengine.com

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 QUESTIONNAIRE

Q.1 For how many years have you been serving HCIL?
a) 1-2 years
b) 2-5 years
c) More than 5 years

Q.2 Are you aware of the companies appraisal policies?

a) YES
b) NO

Q.3 Has your performance been appraised?

a) YES
b) NO

Q.4 If yes then how many times?

a) only once
b) 2-3 times
c) More than 3 times
Q.5 What appraisal system you prefer?

a) 2 way appraisal
b) 90 degree appraisal
c) 360 degree appraisal
d) MBO

Q-6 Are you satisfied with HCIL’s appraisal system?

a) Yes
b) No

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Q.7 If not then what changes you recommend ?

Q.8 The Performance Management System followed at HCIL is appropriate for measuring future
potential of an associate

(a) Strongly agree.

(b) Agree.
(c) Can‘t say.
(d) Disagree.
(e) Strongly disagree

Q. 9 The appraisal system results in recognition of your work/performance?

(a) Strongly agree.

(b) Agree.
(c) Can’t say.
(d) Disagree.
(e) Strongly disagree

Q10 Do you think that the current appraisal system has enough scope for effective feedback.
a) Agree
b) Not agree

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Q.11 On a scale of 1-5 please rate performance management system followed at HCIL in terms
of ‘’SIMPLICITY and TRANSPARENCY”
(a) 1
(b) 2
(c) 3
(d) 4
(e) 5

Q.12 As a supervisor, have you ever had to deal with a performance

and/or conduct problem?
a) YES
b) NO

Q.13 What communication challenges did you have with this performance or
conduct problem?

Q.14 What according to you are YOUR top 3 road blocks to communication in an organization?

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