A

PROJECT ON

PERFORMANCE APPRAISAL
IN

Hero Moto Corp at K.L GUPTA, GAYA

(In Partial Fulfilment of the Degree of BBM)

Mirza Ghalib College, Magadh University, Gaya

Under Supervision of :
M KASHIF RAZA KHAN
DEPT. OF BUISNESS MANAGEMENT
MIRZA GHALIB COLLEGE, GAYA
MAGADH UNIVERSITY, BODHGAYA
:

Submitted By:
VIKASH PATHAK
CLASS
: B.B.M IIIRD
CLASS ROLL :
51
EXAM ROLL :
REG. NO.

1101259/11
SESSION

2011-14

ACKNOWLEDGEMENT

This study is incomplete without proper expression of gratitude

towards the people who made their valuable contribution in the
completion of the study. This project has been completed with
an intention to understand Performance Appraisal Programme
in Indian automobile Industry. The dimension of the relevance
of the project has been expanded and connected to Indian
National Productivity. I am thankful to all of the people who
supported me with their priceless help, guidance, responses
and motivation.
I am deeply thankful to Mr. Sidharth Basir, the Manager of the
K.L Gupta Hero Moto Corp, Gaya, Mr Purnendu Saran, Network
Manager and all other organization members, who participated
with their valuable guidance and responses against the
questionnaires, during the project.
I am truly thankful to my guide M. Kashif Raza Khan,
Lecturer, Mirza Ghalib College, M.U Gaya. I am also thankful to
all my team members Md. Meraj Taj, Vikash Pathak, Md.Mahtab
Alam Khan, Rakesh Raushan, Haider khan, Shahnwaz Alam. I
am also thankful to all my friends who supported me anyway,
in the project.
We are indebted from the deepest core of our heart to H C
B Human Capacity Building Institute for all the step by
step training, guidance, extra ordinary Leadership &
Management Training and Motivation. We are thankful
that H C B has directed our efforts and potential to

convert into
success.

quality

performance

and

professional

I must acknowledge the immense gratitude of my parents who

have been the fountain of support, love and my existence itself.
I must also acknowledge that I assume myself a responsible
National and Global citizen and wish to contribute my part
share to the growth and development of the Nation and the
Human society across the globe.

Md. Meraj Taj

B.B.M 3rd

CONTENT
i.
ii.
iii.
iv.

Acknowledgement
Certificate from K.L Gupta Hero Moto Corp
Guide Certificate
Executive Summary

CHAPTER: 1
1.
2.
3.
4.
5.

INTRODUCTION

Introduction
Introduction to Study
Importance Of Study
Introduction to Hero Moto Corp
Introduction to K.L Gupta, Gaya, Bihar

CHAPTER: 2

LITERATURE REVIEW

1. Introduction to Performance Appraisal

2. Importance of Performance Appraisal
3. Methods of Performance Appraisal
CHAPTER: 3

RESEARCH METHODOLOGY

1. Research Design
2. Research Process

3. Research Sampling
4. Data Collection
5. Research Limitations
CHAPTER: 4

FINDING

& DATA INTERPRETATION

1. Findings
2. Conclusion
CHAPTER: 5
CHAPTER: 6

RECOMMENDATIONS & SUGGESTIONS

ANNEXURE

BIBLIOGRAPHY

PREFACE
This project is empirical presentation
Appraisal in K.L Gupta HERO Gaya.

of

Performance

Performance appraisal occupies an important place in an

organization. Today almost in every business organization
appraisal system is conducted with different techniques to
maintain the performance of an employee who is working in an
organization. Every employee wants to know that the effort
which he is giving to organization is valuable or not.
The organization uses various techniques to trace out the
performance of employees to utilize the best effort of an
employee. They even conduct survey with customer know over
it.
This report is also based on the survey, which is conducted by
our group member (Md. Meraj Taj , Vikash Pathak , Md.
Mahtab Alam Khan , Rakesh Raushan , Haider Khan, and
Shahnawaz Alam) through interview with manager.

EXECUTIVE SUMMARY

The main objective of this project is to check the Appraisal

System of executives and the workers in an organization is
using a correct method or not. It was necessary to use the
techniques of Performance Appraisal should be marked in these
segment. The Performance Appraisal mostly done in a company
of Hero Moto Corp. organization. The study of employees
Appraisal systems insights the behavior relating to the
organization.
The first section of my report deals with a detailed company
profile. It includes the companys history: its activities and
operations, organizational structure, etc. this section attempts
to give detailed information about the company and the nature
of its functioning.
The second section deals with performance appraisal. In this
section, a brief conceptual explanation to performance
appraisal is given. It contains the definition, process and
significance of performance appraisal.
In the third section of my report, I have conducted a research
study to evaluate the process of performance appraisal at Hero
Moto corp. This section also contains my findings, conclusions,
suggestions and feedback.

The fourth and final section of this report consists of extra

information that I related to the main contents of the report.
These annexure includes the Questionnaire on the basis of
which the primary data was collected and research study was
conducted.

CHAPTER: 1 INTRODUCTION

INTRODUCTION:

Performance appraisal represents one of the most complex

areas facing todays managers when it comes to managing
their employees. Many studies have demonstrated an unusually
large impact of the performance Increment and the level of
Motivation of workers, while the level of Motivation has an
impact on productivity and hence, also on performance of
business
organizations.
Unfortunately,
in
our
region
performance appraisal has not still received the proper
attention from neither scholars nor managers of various
businesses.
Introduction To The Study:
A recent report excerpt published in TIMES ASCENT, on 19 Feb
2014 about research of TECHNOPAKS VOCATIONAL
EDUCATION & TRAINING (V.E.T) Outlook 2014, discovers
that India ranks among the lowest in terms of productivity,
within the Asian cohort. In this global context Indian
Productivity is low and this has relationship with employees Job
commitment, Motivation and Job Satisfaction.
Hence, Performance Appraisal is an important to K.L Gupta i.e.
HERO MOTO CORP, in one important automobile Industry,
would certain offer the current representation of performance

appraisal of employees in Indian Business Set up. We found it

very important and relevant to work to know the performance
level of employees, with the purpose to understand the factors
of appraisal.
Although the impact of performance appraisal is traverse
Performance, Productivity, Work Efficiency, Profitability and
contribution to Nation Growth, yet the research is limited to
discover only the appraisal Level of Employees in K.L Gupta.
To conduct this empirical study we developed questionnaire on
this basis of methods of performance appraisal are as follows:

1.
2.
3.
4.

360 method
M.B.O
Cost Accounting
Confidential

The main aim of our study is to appraise that whether the

performance appraisal of an employee is successful in Indian
context or not. If not then it is important to provide a better
system. For this purpose I critically examined the performance
appraisal activities of K. L. Gupta Hero Moto Corp Gaya, and its
impact on the employees who are working in the organization
and we have to observe that performance appraisal. So that the
some suggestion and finding can be analyzed.
To carry out the study at Hero Moto Corp, we framed the
following objectives
1. Identification of the technique of performance appraisal
applied and followed in Hero Moto Corp.
2. Employee (Manager) attitude towards the present appraisal
system.
3. Review of the current appraisal system in order to
i.
ii.
iii.

Enhance Productivity
Attain Global Standards
Create Motivation

iv.

Career Growth

4. To provide suggestions & recommendations from the study

conducted

IMPORTANCE TO THE STUDY

1. As there was no same research work previously done on
the Topic by any student of Magadh University, it was
important to do a research on the same and come up with
the actual scenario of performance appraisal at K.L Gupta,
representing performance appraisal in automobile Industry
across
2. In our region, in Bihar and the like states, majority of
graduates tend to prepare for managing profile, due to
lack of enough Career Opportunities Awareness. This is
one of the reason that is why westerners taunt that India
only produce executives.. In this tendency, it became
more relevant and important for our Magadh, Bihar
and the Indian youth, to know what would the
Performance Level, their total Productivity and
their contribution to the national Growth, after even
they all get into industry interface.
3. National
Skills
Development
Corporation(NSDC),
TECHNOPAKS VOCATIONAL EDUCATION & TRAINING

(V.E.T), Research Team of TIMES OF INDIA etc, all report

similar type of dismal scenario that India ranks among the
lowest in terms of Productivity and India is working at half
Efficiency and half Productivity. In this context also
involvement on employees and performance of the
employees has an important role play to contribute to the
organizational productivity as well as National Productivity.

As the title suggest that this study is to check the appraising

method of employee working in organization. This has following
importance:

Identify skillful employees

Impact of employees in an organization
Applied techniques of appraisal for the employees
Analysis of Methods used at different levels of employees
Know the actual Performance Appraisal System for
employees
Know the relationship between Top Management and
Executive

INTRODUCTION TO HERO MOTOCORP LTD.

Hero Motorcorp Ltd. (Formerly Hero Honda Motors Ltd.) is the

worlds largest manufacturer of two - wheelers, based in India.

In 2001, the company achieved the coveted position of being

the largest two-wheeler manufacturing company in India and
also, the 'World No.1' two-wheeler company in terms of unit
volume sales in a calendar year. Hero Motorcorp Ltd. continues
to maintain this position till date.

The story of Hero Honda began with a simple vision - the vision
of a mobile and an empowered India, powered by its two
wheelers. Hero Motorcorp Ltd., company's new identity, reflects
its commitment towards providing world class mobility
solutions with renewed focus on expanding company's footprint
in the global arena

Hero MotoCorps mission is to become a global enterprise

fulfilling its customers' needs and aspirations for mobility,
setting benchmarks in technology, styling and quality so that it
converts its customers into its brand advocates.

The company will provide an engaging environment for its

people to perform to their true potential. It will continue its
focus on value creation and enduring relationships with its
partners.

Hero MotoCorps key strategies are to build a robust product

portfolio across categories, explore growth opportunities
globally, continuously improve its operational efficiency,
aggressively expand its reach to customers, continue to invest
in brand building activities and ensure customer and
shareholder delight.
The new Hero is rising and is poised to shine on the global
arena. Company's new identity "Hero MotoCorp Ltd." is truly
reflective of its vision to strengthen focus on mobility and
technology
and
creating
global
footprint.
Building and promoting new brand identity will be central to all
its initiatives, utilizing every opportunity and leveraging its
strong presence across sports, entertainment and ground-level
activation.

Hero MotoCorp two wheelers are manufactured across 3

globally benchmarked manufacturing facilities. Two of these are
based at Gurgaon and Dharuhera which are located in the state
of Haryana in northern India. The third and the latest
manufacturing plant are based at Haridwar, in the hill state of
Uttarakhand.
The Company's growth in the two wheeler market in India is the
result of an intrinsic ability to increase reach in new
geographies and growth markets. Hero MotoCorps extensive
sales and service network now spans over to 6000 customer
touch points. These comprise a mix of authorized dealerships,
service & spare parts outlets and dealer-appointed outlets
across the country.
Hero is the brand name used by the Munjal brothers for their
flagship company, Hero Cycles Ltd. A joint venture between the
Hero Group and Honda Motor Company was established in 1984
as the Hero Honda Motors Limited at Dharuhera , India. Munjal
family and Honda group both owned 26% stake in the
Company.
During the 1980s, the company introduced motorcycles that
were popular in India for their fuel economy and low cost. A
popular advertising campaign based on the slogan 'Fill it Shut
it Forget it' that emphasised the motorcycle's fuel efficiency
helped the company grow at a double-digit pace since
inception. In 2001, the company became the largest twowheeler manufacturing company in India and globally. It
maintains global industry leadership till date. The technology in
the bikes of Hero Moto corp (earlier Hero Honda) for almost 26
years
(19842010)
has
come
from
the
Japanese
counterpart Honda.

1956Formation of Hero Cycles in Ludhiana(majestic auto

limited)

1975Hero Cycles becomes largest bicycle manufacturer

in India.

1983Joint
Collaboration
Agreement
with Honda
Motor Co. Ltd. Japan signed Shareholders Agreement signed

1984Hero Honda Motors Ltd. incorporated

1985Hero Honda motorcycle CD 100 launched.

1989Hero Honda motorcycle Sleek launched.

1991Hero Honda motorcycle CD 100 SS launched.

1994 Hero Honda motorcycle Splendor launched.

1997Hero Honda motorcycle Street launched.

1999 Hero Honda motorcycle CBZ launched.

2001 Hero Honda motorcycle Passion and Hero Honda

Joy launched.

2002Hero Honda motorcycle Dawn and Hero Honda

motorcycle Ambition launched.

2003Hero Honda motorcycle CD Dawn, Hero Honda

motorcycle Splendor plus, Hero Honda motorcycle Passion
Plus and Hero Honda motorcycle Karizma launched.

2004Hero Honda motorcycle Ambition 135 and Hero

Honda motorcycle CBZ* launched.

2005Hero MotoCorp Super Splendor, Hero Honda

motorcycle CD Deluxe, Hero Honda motorcycle Glamour,
Hero Honda motorcycle Achiever and Hero Honda Scooter
Pleasure.

2007New Models of Hero Honda motorcycle Splendor

NXG, New Models of Hero Honda motorcycle CD Deluxe, New
Models of Hero Honda motorcycle Passion Plus and Hero
Honda motorcycle Hunk launched.

2008new
Models
of
Hero
Honda
motorcycles
Pleasure, CBZ Xtreme, Glamour, Glamour Fi and Hero Honda
motorcycle Passion pro launched.

2009New Models of Karizma: Karizma ZMR and limited

edition of Hunk launched

New Hero 2010new Models of Hero Honda motorcycle

Splendor pro and Honda motorcycle Hunk and New Hero
Honda Motorcycle Super Splendor launched.

2011New Models of Hero Honda motorcycles Glamour,

Glamour FI, CBZ Xtreme, Karizma launched. New licensing
arrangement signed between Hero and Honda. In August
Hero and Honda parted company, thus forming Hero Moto
Corp and Honda moving out of the Hero Honda joint venture.
In November, Hero launched its first ever Off Road Bike
Named Hero "Impulse".

2012-New Models of Hero Moto corp Maestro the

Masculine scooter and Ignitor the young generation bike are
launched.

2013-Hero Moto Corp unveiled line-up of 15 updated

products including Karizma R, ZMR, Xtreme, Pleasure,
Splendor Pro, Splendor iSmart, HF Deluxe ECO, Hero Moto
corp Super Splendor, Passion Pro and Xpro, Glamour and
Glamour FI etc. It also introduced three new technologiesEngine Immobilizer in new Xtreme, Integrated Braking
System (IBS) in new Pleasure and i3S (Idle Stop and Start
System) in new Splendor iSmart

INTRODUCTION TO K.L GUPTA, GAYA

K.L Gupta is one of the leading names in the Automobiles
Business in the state of Bihar. It was established in 1987 at
centre of Gaya city. It has 18 product of Hero MotoCorp. It has
obtained Authorised Dealership of Hero Moto Corp at Gaya city.

One comes across all popular products of Hero bikes at K.L

GUPTA Hero MotoCorps showroom at Gaya. It has 38
employees in showroom and 105 employees in workshop.

CHAPTER: 2 LITERATURE
REVIEW

INTRODUCTION TO PERFORMANCE APPRAISAL

Performance appraisal is an important device for employees
and management to know what he or she has done in the
current job and what they can improve on. It also provides a
way for management to improve their performance, their
effectiveness and the productivity of their staff.

OPINION OF OUR GROUP

Performance Appraisal is an important tool for Business
success as well as a great individual success. It offers
continuous control over progress towards individual and
organizational
goals.
MD.MERAJ TAJ
Performance Appraisal is the technique of fair rating of the
employees to evaluate performance and potential for
development of a group member and the organization.
- VIKASH PATHAK
Performance Appraisal is a systematic way to evaluate the
skills, abilities, knowledge, productivity, human relation etc
in
employee
to
perform
his
current
job
well.
RAKESH RAUSHAN
Performance Appraisal is a technique to improve the
efficiency of an organisation by attempting the maximum
efforts from individuals employed on it.
-MAH
TAB ALAM KHAN
Performance Appraisal is concerned with determining the
differences of performance among the employees working
in the organisation.
SHANAWAZ KHAN
Performance Appraisal determines who shall receive merit
increases, council employees on their improvement,
determines training needs, determines promotability
identifies those who should be transferred.

HAIDER KHAN
It is a systematic and objective way of judging the relative
worth or ability of an employee in Performance of his/her task.
It is one of the important functions of Human Resource

Management these days. Human Resource Management is that

area of management which deals with human being and there
changing behavior. It is the assessment of an individuals
performance in a systematic way, the performance being
measured against such factors like job knowledge, quality and
quantity of output, initiative, leadership, abilities, supervision,
dependability, co-operation, judgment, versatility, health and
the likes. This is concerned with determining the performance
among the employees working in the organization. It is a
powerful tool to calibrate, refine and reward the performance of
the employee. It helps to analyze his achievements and
evaluate his contribution towards the achievements of the
overall organizational goals as well as individual goal.
Performance Appraisal is defined as the process of assessing
the performance and progress of an employee or a group of
employees on a given job and his / their potential for future
development. It consists of all formal procedures used in
working organizations and potential of employees by focusing
the attention on performance, performance appraisal goes to
the heart of personnel management and reflects the
management's interest in the progress of the employees.

MEANING OF PERFORMANCE
APPRAISAL
It is concern with determining the performances among the
employees working in the organisation. The appraisal is done
by individual immediate superior. Thus it is continuous and
scientific process of examination of the strength and weakness
of an employee in terms of his job. Everyone in the organisation
who rates other is also rated by his superior. Performance
appraisal determines who shall receive merit increase on their
improvement, determines training needs, determines
promotion abilities, and identifies those who should be
transferred.

DEFINITION OF PERFORMANCE
APPRAISAL
On the subject many author have defined performance
appraisal according to their view. Out of them some of the
important definition has been discussed here under:According to Beach, Performance Appraisal is the
systematic evaluation of the individual with regard to his or her
performance on the job and his potential for development.
According to Flippo, Performance Appraisal is the
systematic, periodic and impartial rating of an employees
excellence in matter pertaining to his present job and his
potential for a better job.
According to Dole Yoder, Performance Appraisal refers to all
formal procedures used in working organisations to evaluate
personalities and contributions and potential of group
members.
According to Heyel, Performance Appraisal is the process of
evaluating the performance and qualifications of the employees
in terms of requirements of the job for which he is employed for
purposes of administration including placement selection for
promotions providing financial rewards and other actions which
require differential treatment among the members of the group
as distinguished from actions affecting all member equally

CHARECTERISTICS OF PERFORMANCE
APPRAISAL
Performance appraisal is a continuous process.
It is a systematic evaluation of an employee in terms of his
job.
It is scientific and objective study.
Formal procedure is used in the study of performance
appraisal.
It is an ongoing and continuous process where in the
evaluation are arranged periodically according to a
definite plan.
The main purpose of performance appraisal is to secure
information, necessary for making objective and correct
decision of an employees training and development.

STEPS OF PERFORMANCE APPRAISAL

There are few steps or component to appraise the
performance of an employee.

Figure 1: - Steps Of Performance Appraisal

1. Set Standard: - As first step standard performance for all
employees or established in terms of productivity quality,
quantity, etc. Employees try to achieve the target every
month. They know what to do how much to do and within
time to do.

2.Measure

Actual

Performance:

Then actual
performance of each individual employee is measured.
Employees may vary to their performance as per their
capabilities.
3.Compare Actual Standard: - The actual performance
is compared with the standard performance to understand
the difference, whether less than the target, equal to the
standard / target or more than the standard.
4. Feedback: - Performance feedback is shared with
employee so that they may know where they actually stand.
Performance is appreciated, problems are discussed and
training needs are analyzed.

Feedback is also forwarded to the H.R

department in order to take decisions regarding
compensation, training, transfer or promotion.

5. Take Corrective Measure: - Final step of performance

appraisal is to take action to solve the problem. Counseling,
training, transfer, promotion, demotion or termination
decision is taken, as per the requirement.

IMPORTANCE OF PERFORMANCE APPRAISAL

Performance Appraisal determines who shall receive merit

increase counsels employees on their improvement determines
training needs, determines training needs, determines
promotion abilities, Identifies those who shall be transferred.
Following are the some importance of performance appraisal:COMPE
NSATIO
N
LAY
OFF

HUMAN
RESOURCE
PLANNING

CARREER
DEVELOPME
NT
TRA
NSFE
R

IMPORTANCE OF
PERFORMANCE
APPRAISAL

PROM
OTIO
N

VALIDATING
SELECTION
PROCESS
TRAINING AND
DEVELOPMENT

PERFORMAN
CE
FEEDBACK

Figure 2:- Importance of Performance

Appraisal

1.Performance Feedback: - Employees are interested

to know how well they are doing and they can perform
better. They want feedback to improvement, promotion
and incentives. Feedback give them satisfaction and
motivation.
2.Training And Development: - On the basis of
performance appraisal, decisions are taken for providing
training and development as per the requirement of
employees.
3.Validating Selection Process: - Performance
Appraisal is a means to validate internal training,
promotion and external hiring. This helps find out the
suitable tools of recruitment and selection.
4.Promotion: - performance appraisal enables to know
which employee should be given promotion.
5.Transfers: - transfer often involves change in job
responsibilities. So this is important to know who can take
perfect responsibilities.
6.Lay off: - performance appraisal helps in recognition of
the poorest performer to lie off.
7.Compensation: - On the basis of performance
appraisal compensation such as salary increment,
incentive etc is decided.
8.Human Resource Planning: - performance
appraisal helps recognize employee to be promoted,
transferred, laid off or terminated. Management decides
future employment plan on the basis of this data
knowledge.
9.Career Development: - This enable manger to coach
and counsels employee in their career development.

METHODS OF PERFORMANCE APPRAISAL

There are many methods of performance appraisal into
two types:-

OSTACUNIGMFDELRP.B360`YKH
Figure 3:- Methods of Performance Appraisal

A.

i.

Traditional Methods

Ranking system- According to Dessler (2009), ranking

method is a method is a system in which employees are

ii.
iii.

iv.

v.

ranked from best to worst on a particular, until all are

ranked.
Grading system In this system of performance
appraisal employees are evaluated as per different grades
like Grade-A, Grade-B, and Grade- C ---------etc.
Pair comparison method- In this method employees
are compared with each other in terms of performance
and the employee who gets maximum times rank is
considered the best employee.
Critical Incident Method- This techniques was
developed by Fitts and Jones in 1947 for classifying pilot
error experiences in reading and interpreting aircraft
instruments.
According to Dessler, critical incident method is keeping a
record of uncommonly good or undesirable employees
work behaviour and renewing it with standard.
Graphical Rating Scale- This was developed by
Peterson, 1922. According to Deshler (2011), Graphic
Rating Scale is a scale that lists a number of traits and
rated by identifying the score that best describes his level
of performance for each trait.

Example:S.NO

1.
2.
3.
4.

vi.

TRAITS

POOR

GOOD

SOMETIME ALWAYS
S
V.GOOD
VERYGOO
D

Reliability
Consisten
cy
Practicalit
y
Behaviour
relationshi
p

Confidential Report- A traditional method used in

public sector companies which is maintained annually. This

vii.

performance appraisal report is prepared confidentially

and is forwarded to higher management first. Then, if in
case of negative appraisal injury is established and
employee is inquired to show cause.
Checklist- In this a checklist of statements of traits of
employee in terms of yes/no based questions is prepared
whether the performer has these traits or not. Here the
ratter only does reporting or checking. H.R department
does the actual evaluation.

e.g.:- 1. He is regular

yes

no
2. Good job knowledge
no

yes

3. Maintain relationship

yes

no
no

4. Achieves target

yes

5. Team skills (good)

yes

no
viii. Forced choice method The series of statements
arrangements in the blocks of more are given and the ratter
indices which statements is true or false. The rater is forced to
make a choice.

ix. Forced Distribution Method A list of rating scale is

developed and all the employees are evaluated on those skills
only. The rater is forced to the employees on all the points on
the scale evaluate.

B.
i.

Modern Method

Management

By

Objective

(M.B.O)

This
method propounded by Peter F Drucker. In this method
Performance is rated by the achievement of objective,
stated by the management. Super Goals, Organisational

Goals are declared and individual goals are declared and

individual goals are identified.
In M.B.O, organisational goals are identified Standard
Performance is established, Actual is measured, compared
and feedback is shared with employees. Corrective
measures are finally taken as per the requirements.

Figure: - Management By Objective

STEPS OF MANAGEMENT BY OBJECTIVE

1.Goal Setting Goals are set for each individual. The
superior and
objectives.

subordinates

jointly

establish

these

2.Performance Standard- Standard is set for the

employees as per time limit. When employees start
performing they came to know what is to be done, what
has been done and what remains to be done. They
understand their targets clearly.
3.Measure Actual Value- Actual achieved target is
measured to understand performance.
4.Comparison- The actual performance is compared with
the target. This enables find out problem and determine
straining needs.

5.Feedback- If the actual performance deviates from the

standards, the corrective measures are initiated. Periodic
reviews are conducted in a constructive rather than
punitive manner. Feedback is shared and counselling,
training, transfer, promotion etc take place as required.

ii.

360 Performance Appraisal- This method was first

developed and formally used by General Company of
U.S.A in 1992. This is feedback based method which is
used to ascertain training and development needs rather
than pay increase.
In
360 Appraisal
performance information such as
employees, skills, abilities and behaviours are called from
all around the employee, i.e.
1. Superior
2. Subordinate
3. Peers
4. Customer

Figure: - 360 Appraisal

System
As these participant appraises provides information or feedback
on an employee by completing survey questionnaires designed
for the purpose.
All the information is then completed through the computerised
system to prepare individual reports.

iii.

Cost Accounting Appraisal- This method evaluates

an employees performance from the monetary benefits
the employee yields to the organisation derived from the
employee.
The costs on employee are as follows:a. Cost on requirement
b. Cost on training
c. Cost on the maintenance
d. Cost on compensating the employee

Factors
I.
II.
III.
IV.
V.
VI.

iv.

Unit wise average value of product.

Quality of the product produced by the employees.
Overhead cost incurred.
Accidents, Damage, Errors, Spoilage, and Wastage
caused through unusual wear and tear.
Human relationship with other.
Cost of the time the supervisor spent in appraising the
employee.

Assessment Centre- This method was introduced in

1930 in Germany to appraise army to business arena in
1960. In India it is a recent origin. An assessment centre is
a central location where manager supported by
psychologists and H.R specialist for 2-3 days, by involving
them in various simulated situations

Process of Assessment Centre

Method
1. Simulation Participated by managers at one central place
2. Continuous Observation by senior managers, psychologist
and H.R specialists for 2-3 days
3. Assesses are asked to participate in Basket exercises ,
work groups , simulations and role playing which are
essential for successful performance on job
4. Assesses behaviour are recorded by raters and they meet
together to discuss their collected data and observation
5. On the basis of observation assessment are made them
6. At the end of the process feedback in terms of strengths
and weakness is also provided to the assesser

Figure: - Assessment Centre

Method

v.

Behaviourally
Anchored
Rating
Scale
(B.A.R.S) - This method was developed by south and
Kendall to provide a better method of rating employees.
This is different from standard rating scales. This focussed
on behaviours that are considered important for job task.

COMPONENTS
Behaviour- Effective and Ineffective Behaviour related to job
are collected are developed.

Expert Group- A Group of Subject Matter Experts (S.M.E) is

asked to define the expected behaviour on the job. So that their
performing behaviour can be compared with the defined
Behaviour.

Scale- Usually a 5-9 point scale is developed in order to

measure the effectiveness of the Job Behaviour.

Rater- On the defined behaviour and scale a ratter does

Appraisal. In B.A.R.S method each and every individual is
assessed on each defined behaviour. All scales are applied to
measure the effectiveness of behaviour.

B
E
S
R
E
X
C
A
H
P
A
T
A
E
L
V
R
E
I
T
O
U
G
R
O
U
P
FIGURE: B.A.R.S

ADVANTAGE OF PERFORMANCE
APPRAISAL
Measures an employees performance.
Helps in objective declaration and its achievement.
Motivates the employees.

Facilitates the requirement of training.

Helps in identification of personal weakness and strengths.
Helps in personal and organisational career planning.
Provides and creates leadership skills.
Improve a good relationship between organisational
employees and reporting manager.
Helps in resolving misunderstanding.
It influence and increase potential of an employee to
perform in a better manner.
It helps in personal or organisational decision making.
It helps in decision making for which employee is able to
promoted.
It helps in decision making such as to provide
compensation, to facilitate training, promotion and
development of or organisation.
It helps in taking an organisational responsibility.
It helps in development of negotiations skill.
It helps in improvement of communication skill.
Complete a written evaluation that rates performance
according to the stipulated criteria.
Meet the employee to discuss the evaluation and suggest
means of improving performance.

CHAPTER: 3 RESEARCH
METHODOLOGY

RESEARCH METHODOLOGY
Research in common parlance refers to search for knowledge.
Redman and Mory define research as a Systematized effort to
gain new knowledge. Research is an academic activity and such
the term should be used in technical sense. According to
Clifford Woody, Research comprises defining and redefining

problem, formulating hypothesis or suggested solutions;

collecting, organizing and evaluating data; making deductions
and research conclusions; and at last carefully testing the
conclusions to determine whether they fit the formulating
hypothesis. Research is thus an original contribution to the
existing stock of knowledge making for its advertisement. It is
pursuit of truth with the help of study, observation, comparison
and experiment. In short the search for knowledge through
objective and systematic method of finding solution to problem
is research.

RESEARCH DESIGN
A Research design is the arrangement of conditions for
collection and analysis of data in a manner that aims to
combine relevance to the Research purpose with economy in
procedure. In fact the Research design is the conceptual
structure within which Research is conducted: it constitutes the
blueprint for the collection measurement and analysis of data.
It must be able to define clearly what they want to measure
and must find adequate methods for measuring it along with a
clear cut definition of population wants to study. Since the aim
is to obtain complete and accurate information in these studies,
the procedure to be used must be carefully planned. The
research design must make enough provision for protection
against bias and must maximize reliability with due concern for
the economical completion of the search study. Research
design is a conceptual structured within which research is
conducted. It constitutes the blue print for the collection,
measurement and analysis of data.

Research design is must to focus attention on the

following:

Formulating the objective of the study

Designing method of data collection
Selecting the sample
Data collection
Processing and analyzing the data
Finding and Descriptions

Descriptive research is adopted for this study. It includes

surveys and fact finding enquiries of different kinds. The major
purpose of descriptive research is description of the state
affairs as it exists at present. The main characteristic of this
method is that the 20 researcher has no control over the
variables. He can only report what has happened or what is
happened. The major purpose of Descriptive research is
description of the state of affairs, as it exists at present.
Descriptive research concerns a univariate question in
which we ask about or state something about the size,
form, distribution, or existence of a variable.
The main characteristics of this method are that the
researcher has no control over the variables; he can only
report what has happened or what is happening.
Descriptive Research also includes attempts by researcher
to discover causes even when they cannot control the
variable

RESEARCH SAMPLING
The Study is primarily based on the primary data collected
through Questionnaire and interview from Hero Moto Corp. Ltd.
(K.L Gupta, Gaya) Manager and Executives.

SAMPLING PLAN
Sample Area

Magadh

Sample Place

K .L Gupta, Gaya

Duration

3 week

DATA COLLECTION METHOD

For achieving the specific objectives of this study, data were
gathered from both primary and secondary sources.

Primary Data The instrument used to collect primary

data is through questionnaire from the Manager and Executive.
It gives first hand information to the researcher. In this study, a
questionnaire has been prepared with a view to analyze the
work
Direct conversation with the respective Manager and
Executive of the Departments.
Face to face conversation with the executives.
Employees opinion collected through Questions.
Observation of activities at organisations.

Secondary Data
Various Records of the company.
Website of Hero Moto Corp. Ltd.
Different types of system information.
Daily Performance Appraisal form of company.
Customer feedback form for knowing the response of
customer in respect of employee and organisation.

RESEARCH TOOLS

1.Questionnaire- The questionnaire is structured in two

different forms. Some are partly structured while some are
partly unstructured. Some are opening ended while some
are close ended. Structured Questionnaire is selected as
the tool for data collection, which included a set of various
types of Questions concerning different aspects of the
subject for the study. Several types of Questions were
included in the Questionnaire such as Open Ended
Questions, Dichotomous and Multiple Choice questions.
2. Interview- Managers and Executives were interviewed
by the researchers. With the help of above questionnaire
and through their opinion about performance appraisal
adopted by the company and the technique for appraising
employees. Following ideas are revealed during the
interview of Manager and Executive
- Performance is measured according to the
number of bike sales in a week.
- Enquiry maintenance is necessary for all
employees because one enquiry means one
customer and one enquiry lapse means one
customer lapse.
- Employees are sent for campaign in city for
promoting sale for enhancing the capability of
employee.
- Top level checks the employees through
pertaining the employee confidence because if
he has a confidence he is liable to give higher
output.

3.Survey- The survey on the topic Performance

Appraisal towards Hero Moto Corp Ltd. towards K.L
Gupta employees was carried by personal interview
with Managers and Executives individually by our group
member.
Some of the Major points were asked in terms of getting
the data are as follow:- Method uses to appraise employee.

Techniques used for top level and middle level.

No. of times Performance Appraisal conducted.
Appraisal conducted in which hour.
Responsible for conducting appraisal program.
Inform their employee about appraisal program.
Incentives are given on the basis of performance
appraisal.
- Factors considered for appraising employee.
- Appraisal help in improving employees job performance.
-

4.Research Advantages :a. Knowing about E-commerce which are uses for
understanding the customer about the product.
b. Attendant gives the information about the product.
c. V Lead techniques are used for appraising employees.
d. Rapport Building through the Hero Good life.
e. Make loyalty through gifts and better servicing.
f. We have knowing beyond our own topic.

5.Research Limitation :a. Limited Management technique

b. Does not have Effective Time Management
c. Lack of knowledge about performance appraisal
program
d. Distracted with the topic of performance appraisal

CHAPTER: 5 DATA FINDING AND

ANALYSIS

DATA FINDING AND ANALYSIS

Analysis-1: - In total 144 Employees are working here and

the following type of Appraisal systems are conducted at
different levels of employees in K.L Gupta, Gaya (Hero Moto
Corp.)

TOTAL NUMBER OF
EMLPOYEES

NUMBERS OF
EMPLOYEES

34

LEVELS

SALES EXECUTIVE

APPLIED METHOD

1.360 APPRAISAL
2. M.B.O
3.COST
ACCOUNTING

MECHANICAL
6

SUPERVISOR
HEAD MECHANIC

144
EMPLOYEES

1.M.B.O
2.360 APPRAISAL

1.M.B.O
2.360 Appraisal

97

1.M.B.O
2.360 Appraisal

TECHNICIAN
FINANCIAL

FINANCE
EXECUTIVE

1.360 Appraisal
2.M.B.O
3.Cost Accounting

MANAGEMENT
3

MANAGER

TEAM LEADER

1.M.B.O
2.360 Appraisal
3.Confidential
1.M.B.O
2.360 Appraisal
3.Confidential

Graphical Representation of number of employee

working at
K.L Gupta(Hero Moto Corp Ltd) :

NUMBER OF EMPLOYEES IN %(144)

1% 2%
24%

SALES EXECUTIVE
MECHANICAL
FINANCIAL
TOP MANAGEMENT

73%

Interpretation:In the pie chart diagram, we can see that, the total no of
employees (i.e. 144=100%) are working in an Organization
Hero Moto Corp at K.L Gupta. In this organization, the methods
360 appraisal system, management by objective and cost
accounting are applied on Sales Executive (i.e. 24% of total
employees). In Mechanical department there is 73% of total
employees are working, the methods 360 appraisal system,
and management by objective and are applied on them. The
methods applied on those employees who are working in
Finance department(i.e. 1% of total employees) are
management objective,360 appraisal system and cost
accounting while the performance appraisal methods such as

management by objective, 360 appraisal and confidential are

applied on Top Level of Management ( D.S.M and N. MANAGER)
i.e. 2% of total employees.

1. Bar Diagrammatic Representation of methods

applied at K.L Gupta employees :

APPLIED METHODS
0.73

sales 23.61%
executive

top management
23.61%

0.02
1.40%

Interpretation

0.73

0.02
1.40%

0.73

finance

mechanical

23.61%

0.02
1.40%

:-

In this bar diagram showing the methods adopted by HERO

MOTO CORP AT K.L GUPTA at different levels in which we have
seen that M.B.O and 360 Appraisal are used in all the levels,
while cost accounting are used for sales executive and
confidential methods are used for management body .

ANALYSIS 2: Three types of Performance Appraisal

Methods are adopted for the appraisal of sales executive

NUMBER OF
EMPLOYEES
34

APPLIED METHOD
MANAGEMENT BY
OBJECTIVE
360 Appraisal System
COST ACCOUNTING

NUMBER OF EMPLOYEE
IN PERCENTAGE
23.61%

DIGRAMATIC REPRESENTATION OF SALES

EXECUTIVE:

SALES EXECUTIVE
25.00%
20.00%
15.00%

SALES EXECUTIVE

10.00%
5.00%
0.00%
M.B.O

360

COST ACCOUNTING

Interpretation: -In this diagram we can see that, the

performance appraisal methods applied on sales executive
(i.e.23.61%) in HERO MOTO CORP (K.L GUPTA) are Management
by Objective, 360 Appraisal method and Cost Accounting.

Analysis 3:

Different methods are used for

mechanical department in K.L Gupta, Gaya
Number of
Employee

Mechanical

Supervisor

Head Mechanic

1.M.B.O
2.360 APPRAISAL
1.M.B.O
2.360 APPRAISAL

Technician

1.M.B.O
2.360 APPRAISAL

105

97

DIAGRAMATIC REPRESENTATION OF
MECHANICAL DEPARTMENT:

100.00%
90.00%
80.00%
70.00%
60.00%
SUPERVISOR

50.00%

HEAD MECHANIC

40.00%

TECHNICIAN

30.00%
20.00%
10.00%
0.00%
M.B.O

360

Interpretation:In this diagram, we have analyzed that performance appraisal

methods which are used in mechanical departments as M.B.O
and 360 Appraisal used for Supervisor, Head Mechanic and
Technician.

Analysis 4:Two methods are used for finance

department to appraise the Employees.
NUMBER OF
EMPLOYEES

FINANCE EXECUTIVE
360 APPRAISAL
SYSTEM
1.40%

2
M.B.O

DIAGRAMATIC REPRESANTION OF FINANCE

DEPARTMENT:

FINANCE
1.60%
1.40%

1.40%

1.40%

1.40%

1.20%
1.00%

FINANCE

0.80%
0.60%
0.40%
0.20%
0.00%
360 APPRAISAL

M.B.O

COST ACCOUNTING

INTERPRETATION: In this graph we can see that in the

finance department of HERO MOTO CORP in K.L GUPTA. The
performance appraisal systems are applied as M.B.O and 360
Appraisal systems.

ANALYSIS 5:

Three methods are used for top level

management for appraisal
NUMBER OF
EMPLOYEES

METHODS APPLIED

CONFIDENCIAL
M.B.O

NAUMBER OF
EMPLOYEES IN
PERCENTAGE
2.08%

360

GRAPHICAL REPRESENTATION OF TOP

MANEGEMENT:

TOP MANEGEMENT
2.50%
2.00%
1.50%

TOP MANEGEMENT

1.00%
0.50%
0.00%
CONFIDENTIAL

M.B.O

360

INTERPETATION: In this graphical representation, we can see

that, at top level of management there are 4 employees
working. The methods applied on these employees are
Confidential, M.B.O and 360.

CHAPTER: 5
SUGGESTION

RECOMMENDATION AND

1. Training appraisers are essential for achieving better

results with performance appraisal. The training should be
designed to improve appraiser`s capabilities to; observe,
conduct constructive feedback, listen, support, set
objective and ask appropriate questions. Some benefits
that can be achieved by appraiser`s training are as:
Improve the understanding of the system, the forms
and technology to be applied.
Increase accuracy and reduce common judgment
errors.

 Enhance appraiser`s self confidence about his rating

skills and improve the skill level through practice and
feedback.
2. An organization`s leadership has the responsibility to
develop positive culture to facilitate the acceptance of
performance appraisal among the manager and their
employees.
3. For the interaction between manager and employees and
for the betterment of the organization an effective
communication should be maintained.
4. The problem of unequal standards can be minimized by
ensuring that the appraisal criteria are job oriented,
communicating
performance
expectations
to
the
employees before the appraisal review.
5. Maintain proper Image Management.
6. For the development and improvement of performance of
employees performance appraisal program must be
included in the organization.
7. Performance appraisal system enhances the capabilities of
employee to perform effectively.
8. Employees who are working in an organization taking their
responsibility effectively or not analyzed by the
management through the performance appraisal system.
9. Performance appraisal system also enhances the skill of
time management and resource optimization.

OTHER SUGGESTIONS FOR

K.L GUPTA (HERO MOTO CORP), Gaya

1. Sitting arrangement should be maximum for visiting

customers.
2. Follow the image management.

3. Attention toward the customer.

4. When problems of vehicle are not mentioned by the
superior. Such problems are just burden to the mechanics so
take care.
5. Maximize the parking zone.
6. Cabin should be provided to each manager separately for
safety and confidentiality
7. Employees should take their own responsibility of work.
8. Number of security personnel must increase
9. Follow the proper management and professional skills
10. Maximize the work efficiency of each employee
11. Performance appraisal system must be adopted for the
enhancement of work efficiency, productivity, leadership
capability, handling the misunderstanding, Developing
training programmes.

OUR LEARNING
OPPORTUNITIES

1. To take responsibility of work.

2. Understand the corporate culture.
3. How to convince the costumer.

4. How to regard the costumer and to take customer

feedback.
5. How to develop our negotiation skill and collect the
information through the survey.
6. Improvement in communication skill.
7. Importance of meeting and it`s procedure.
8. Report the manger after accumulation of the task of
work.
9. Time management skill developed.
10.
We have learnt importance of job satisfaction,
employability skill.

CONCLUSION
After having the analysis of the data, we have known that
Performance Appraisal in K.L Gupta, Gaya (Hero Moto Corp) is
not doing on any fixed time. We also here know that
Performance Appraisal is only done for promotion of any

employee which is done in a year. Performance Appraisal in

Hero Moto Corp is satisfactory for its effective management and
evaluation of staff. Appraisals here are helping individuals to
develop, improve organisational performance, and feed into
business planning. Performance Appraisal enable Management
in Monitoring of standards, Agreeing expectations and
objectives, and Delegation of responsibilities and Tasks. Here
we have also seen that all the Executives are given targets and
according to that target they have to work and through this
they are appraised and get Incentives. We also understand that
to give effective result is a only due to the confidence of the
employee for the better result in an organisation.
Ideally in the present day scenario, Appraisal should be done,
and it should be done on weekly as well as monthly taking the
views of all the concerned parties who have some bearing on
the employees. But, since a change in the system is required, it
cannot be a Drastic one. It would be gradual and a change in
the mindset of both the employees and the Head is required.

ANEXXURE

PROJECT ON PERFORMANCE APPRAISAL AT

HERO MOTOCORP
K.L GUPTA, GAYA
Name-
Designation/post-
Work experience- .
QUESTIONNAIRE
Q.1 which performance appraisal method do you use in
your organization?
(a) Management by objective
appraisal system

(b) 360

(C) cost accounting

(d)

Q.2 Which method do you use for appraisal of

Manager- ..
Executive- .
Q.3 How many times of performance appraisal system is
conducted in your
organization?
(a) Once a year
twice a year
(c) Monthly
specific time

(b)
(d) no

Q.4 when the performance appraisal is conducted?

(a) During working hour
During non working hour
(c) During recess
of them

(b)
(d) All

Or
any
other

Q.5 who is responsible for conducting performance

appraisal program?
(a)

Superior

(b)

(c) Customer

(d)

Peers
All
Q.6 Do you inform your employees while performance
appraisal program me?
(a) Always
Sometimes

(b)

(c) Never
Partially

(d)

Q.7 Do you think Incentives are given strictly on the

basis of performance appraisal?
(a) Usually
Sometimes

(b)

(c) Almost

(d)

Rarely
Q.8 Performance appraisal of the employees is
conducted by considering and evaluating which of the
following factor?
(a) Communication skill
convincing nature

(b)

(c) Product knowledge

confidence

(d)

Q.9 Do you think Performance Appraisal

improving employees job performance?

help

(a) Yes

in
(b)

No
Q.10 Is performance appraisal system reviewed and
updated now and then?
(a) Frequently
Occasionally

(b)
(c)

Never

(d) All of them

Q.11 Other than performance appraisal does
provides
employees
with
formal
feedback
performance improvement?
(a) Frequently
occasionally
(c) Never

you
for
(b)
(d)

always
Q.12 Are the raters involved while appraising employee?
(a) Highly involved
Less involved
(c) Not involved

(b)
(d)

partially
Q.13
What is the reason for conducting performance
appraisal in your organization?
(a) Identify motivating method
Decide compensation

(b)

(c) Identifying barriers of performance

Analyzing training needs

(d)

Q.14 Rate your appraisal program?

(a) Reliable
Effective

(b)

(c) Accurate
Motivating

(d)

THANKS FOR YOUR CO OPERATION

BIBLIOGRAPHY
1. Human Resource Development Book by S.S KHANKA.
2. Human Resource Development notes of Mirza Ghalib
College.
3. Human Resource Development notes of H.C.B.
4. Business Today, Business World .
5. Website of Hero Moto corp. Ltd

6. Wikipedia
7. Times Ascent