A Project Report On

PERFORMANCE APPRAISAL SYSTEM

As partial fulfillment for the award of degree in MBA)

Submitted by
Roopam shukla
H.R & Marketing

Submitted to:Dr .Hari om Sharma

ACKNOWLEDGEMENT

Words often fail to express inner feelings of gratitude and indebtedness to ones benefactors,
but then it is the only readily available medium through which the undersigned can express
her sincere thanks to all those who are associated with her work in one way of the other.
I feel it my profound privilege to express my most sincere gratitude and indebtedness to my
project guide Dr.Hari om Sharma Sir who was instrumental in providing me direction,
constant encouragemrent and co-operation in my attempt to take this project to its logical
conclusion.

PREFACE

Arriving at an acceptable, simple and valid method for appraising performance of employees
has been a problem engaging more attention of managers now a days than any other aspect of
management.

For a vast organization like Auto Mobile industry, the appraisal report is a vital document for
the organizational planning, growth and development and also for providing satisfaction to
the employees. At the same time Performance Appraisal is a dynamic concept. No system is
completely acceptable and dependable. For this reason within the management ranks,
Performance Appraisal remains to be one of the most debatable topics of Human Resource
Management. Even a well planned and carefully administered appraisal program does not
fetch the expected results. There is, therefore, need for reviewing the total system and
modifying it to accommodate the changing needs before a particular system outlines its
purpose.

DECLARATION
I ,Roopam Shukla, hereby declare that the project titled PERFORMANCE APPRAISAL
at Majestic Seats India Pvt. Ltd is originalal and bonafide work carried out by me under the
able guidance of Dr.Hari Om Sharma in partial fulfillment of the requirement of Masters
inBusiness Management at IMT.
I also declare that this project is a result of my effort and no part of this project has been
published earlier or been submitted as a project by me for any degree or diploma for any
institute or university.

Batch: 2012-2014
Place: FARIDABAD.

OBJECTIVE OF THE PROJECT

This project has been undertaken to share my experiences on Performance appraisal

system as well as to enhance my understanding of this fascinating subject by doing
some study & research.

The project explains the meaning of Performance Appraisal, different methods used
to evaluate the performance of employees, its effective implementation and the
benefits of the system.

It also aims at understanding the problems associated with performance appraisal and
suggests measures to be adopted to overcome these issues.

Overall objective of the project is to understand the effectiveness of performance

appraisal system.

TABLE OF CONTENT
EXECUTIVE SUMMARY
OBJECTIVE OF THE STUDY
SCOPE OF THE STUDY
IMPORTANCE OF THE STUDY
THEORETICAL CONCEPTS/INTRODUCTION
RESEARCH METHODOLOGY
INTRODUCTION OF THE INDUSTRY /
ORGANIZATION
DATA PRESENTATION &DATA ANALYSIS
FINDINGS OF THE STUDY
SUGGESTION/RECOMMENDATIONS

LIMITATION OF THE

STUDY

CONCLUSION

REFERENCES/BIBLOGRAPHY

APPENDIX

EXECUTIVE SUMMARY
Recipe for success of any organization in todays environment demands copying with
change. Management plays crucial role in anticipating these changes and readying the
organization to respond appropriately for continued competitiveness.

An organization which is going to witness massive changes in the environment with the
significant diversification plans in its product and services would need to focus primarily on a
carefully worked out H.R strategy with strong development systems which help in identifying
and developing new competences.

Along with these competencies the organization should look after the employees level of
performance that is the building blocks of an organization.

According to the survey findings, certain dimensions such as reward system, performance
and development appraisal procedure need some attention. Some suggestions focus on
counseling sessions for the employee. The present attempt aims at identifying the
characteristics features of the existing system of performance Appraisal System in Majestic
Seats India Pvt.Ltd. sand understanding the effectiveness towards its objectives with a view
to suggesting further improvements.

OBJECTIVE OF THE STUDY

To integrated the company and individual goals through a process of performance

assessment linked to achievement of organizational objective.

To increase awareness of tasks/targets and the responsibility of executives at all level

to ensure fulfillment of companys objectives.

To ensure an objective assessment of performance and potential.

To distinguish between differing levels of performance on relative basis

To identify the developmental action to be taken to enhance the performance of

executives.

To facilitate the process of executive/non executive development through performance

planning, self review, performance analysis and two way communication between
appraise and appraiser.

SCOPE OF THE STUDY

The performance Appraisal System will be used to assess the performance of employee and
to plan for their development. As is apparent from what has been stated above, the
investigator has confined the study to performance appraisal system of only. Although
appraisal as a vital tool covers all employees of the organization, for the purpose of this study,
the area has been confined to that of executives & non-executives both. So far as appraisal of
non executives employees of the organization is concerned, no definite objectives have been
specified by the management besides seeking to know the promotability or otherwise of an
employee.
This is more or less of the nature of a subjective evaluation of the personality traits of the
employees by their superiors.
Again, within the area of performance appraisal, the study is confined to the existing
system and the manner in which the system is operating so as to identify how far it has been
effective for promoting personal development and effectiveness of managerial personnel in
Majestic Seats India Pvt.Ltd .

IMPORTANCE OF THE STUDY

The quality of management decision and actions is directly proportional to the availability
and validity of information. The information provides through performance appraisal
significantly enhances management effectiveness in making decisions that influence the
directing and coordinating of human resources. Therefore, every business ensures existence
of an effective, accurate and continuous process for gathering, analyzing and disseminating
information about the performance of its members. That process is the performance appraisal.
Organization hires employees and rewards them so that they will provide the effort necessary
to achieve organizational objectives and goals. Healthy improvement in profit can be related
to increase in productivity. Productivity in turn relates directly to performance of all
employees in the organization. A major indicator of the effective use of human resources
through a viable performance appraisal system is the impact of that system on productivity
improvement. Performance appraisal technique is designed, administered and operated by
organizations for the intentional purpose of observing, measuring and altering employee
workplace behavior. A major reason why employee performance appraisal is such a critical
tool is that it is a control device that influences practically all human resource functions. The
influences of performance appraisal are felt in

Human Resource Planning

Human Resources Research

Human Resources Development and

Human Resources Recognition.

THEORETICAL CONCEPT

A THEORETICAL FRAMEWORK OF PERFORMANCE APPRAISAL

The appraisal of employees in an employment has been labeled and described by expects
over the years in different ways. Common descriptions include performance appraisal, merit
rating, personnel preview, progress report, behavioral assessment, employee evaluation &
service rating.

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Definition
According to Beach Performance Appraisal is the systematic evaluation of the individual
with regard to his job her performance on the job and his potential for development.
According to Andrew Sikula, employee appraisal or performance appraisal is a systematic
evaluation of workers performance and potential for development. It is the process of
estimating or judging the value excellence, qualities or status of some object person or things.
Performance appraisal is a process of gathering analyzing and disseminating information
about the performance of employees.
Thus, performance appraisal is a systematic evaluation of personnel by their superiors or
others who are familiar with their work performance. Such appraisals usually involve the use
of forms and procedures that have been developed for the purpose.
OBJECTIVES OF PERFORMANCE APPRAISAL
Organizations undertake performance appraisal to meet certain objectives which are in
the form of salary increase, promotion, identifying training and development needs, providing
feedback to employees and putting pressures on employees for better performance.
Salary Increase - Normally Salary increase of an employee depends on how he is
performing his job for his performance there is continuous evaluation either formally or
informally. In small organization generally informal performance appraisal and in large
organization formal performance appraisal has been undertaken.
Promotion Performance appraisal plays a significant role where promotion is based on
merit. Most of the organizations often use a combination of merit and seniority for
promotion. Performance appraisal helps in deciding whether one can be promoted to the next
higher position and what additional training will be necessary for him.
Training and Development Performance appraisal tries to identify the strengths and
weaknesses of an employee on his present job. Training and development programmes can be
used for overcoming weaknesses of the employees.
Feedback Performance appraisal provides feed back to employees about their
performance. It tells where they stand. A person works better when he knows how he is
working, how his efforts are contributing to the achievement of organizational objectives.
Pressures on employees Performance appraisal puts a sort of pressure on employees for
better performance.
METHODS OF PERFORMANCE APPRAISAL
Traditional Methods

Ranking Method
Paired Comparison

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Grading

Forced Distribution Method

Force Choice Method

Graphic Scale Method

Essay Method.
Field Review Method.
TRADITIONAL METHODS OF PERFORMANCE APPRAISAL
Ranking Method:Ranking is the oldest and simplest method of appraisal in which a person is ranked against
others on the basis of certain traits and characteristics. In the ranking method, various persons
are given ranks on the basis of their traits. This is a very simple method when the number of
persons to be ranked is small because ranking has to be given on the basis of traits, which are
not easily determinable.
Paired Comparison:Paired comparison method is a slight variation of ranking system designed to increase its
value for use in the large groups. In this method, each person compared with other persons
taking only one at a time. This method provides better comparison of persons. However, this
increases the work because of large number of comparisons. This can be calculated by a
formula N (N-1)/2 where N is the total number of persons to be compared.
Grading:In this method, certain categories of abilities or performances are defined well in the advance
and persons are put in particular category depending on their traits and characteristics. Such
categories may be definitional like outstanding, good, average, poor, very poor, or may be in
terms of letters like A, B, C, D, etc. with A indicating the best and D indicating the worst.
Forced Distribution Method:In this method the appraiser is forced to appraise the appraises according to the pattern of a
normal curve. The basic assumption in this method is that employees performance level
conforms to a normal statistical distribution. This method is useful to rate job performance
and promo ability.
Forced Choice Method:The Forced-choice rating method contains a series of group of statements and the rater
checks how effectively the statement describes each individual being evaluated. There may
be some variations in the method and statements used, but the most common method of
forced choice contains two statements, both of which may be positive or negative.

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o
o

The employee is hard working.

The employee gives clear instructions to his subordinates.

Both these statements are positive but the rater is asked to rate only one, which is more
descriptive of his subordinates behavior. This is done to avoid subjectivity in rating.
Graphic Scale Method:Graphic Scale also known as linear rating scale is the most commonly used method of
performance appraisal. In this method, a printed appraisal form is used for each appraisee; the
form contains various employee characteristics and his job performance. Various
characteristics include initiative, leadership, dependability, cooperativeness, enthusiasm,
creative ability, analytical ability, decisiveness, emotional maturity, etc. depending on the
level of the employee. The rating is done on the basis of scale which is in continuum 5, 4, 3, 2
and 1 in that order can be used to denote points for various degrees of excellent-poor, highlow, or good-bad, and so on.
Essay Method:Some companies use free essay method, or sometimes, combine this with other methods. In
essay method, the rater assesses the employees on certain parameters in his own words. Such
parameters may be as follows:

Work performance in terms of quality, quantity and costs;

Knowledge about the job;
Knowledge about organizational policies, procedures and rules;
Employees characteristics and behavior;
Employees strengths and weaknesses;
Overall suitability of the employee;
Employees potential and promotability, and
Training and development needs of the employee.

The essay method is useful in providing useful information about an employee on the basis
of which he can be appraised.
Field Review Method:In the field review method, an employee is not appraised by his direct superior but by another
person, usually from personnel department. The basic idea is that such a person may take
more objective view in appraisal, as he is not under pressure as the superior of the employee
may be. The rater, in this case, appraises the employee based on his records of output and
other quantitative information such as absenteeism, late coming, etc. The rater also conducts
interviews of the employee and his superior to ascertain qualitative aspects of job
performance. This method is more suitable for promotion purpose.
MODERN MEHTODS OF PERFORMANCE APPRAISAL

Assessment Centre Method:- Under this technique many evaluators join together to judge
employee performance in several situations with the use of a variety of criteria. It is used

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mostly to help and select employee for the first level supervisory position Assessments are
mode to determine employee potential for purpose of promotion. The merit of this system is
that it is a better method for identifying managerial potential than any other method.
Appraisal by Management by Objective (MBO):- Concept of Management by Objective
(MBO) has been offered by Peter Duckers under this technique, the subordinate sets his
short-term performance goals in consultation with the superior. Goals explicitly state the
actions, which the employee will follow. The subordinate appraises his own performance by
evaluating it vis--vis goals. The supervisor is not the evaluator, but directs the goal setting
process to ensure that it matches the objective of the organization.
TOOLS OF PERFORMANCE APPRAISAL
In recent years, the purposes of performance appraisals have greatly expanded. Today
performance appraisals are used by organizations not only for wage increase, transfers &
layoffs but also as a means of communication, motivation & development of employees in an
organization.
Management by Objectives: - Management by Objectives (MBO) is used in this report to
mean as an approach to appraising performance by results. This approach tends to emphasis a
participative but joint determination of objective followed by a participative but joint
evaluation of success in periodic appraisal interviews.
Career Progression: - This phase is used here to mean the upward movement in the career
path through a planned Promotion Scheme
Job Rotation: - It implies the shifting of an employee from one job to another so that
monotony and boredom are reduced and at the same time there is an increase in the skill and
knowledge of the employee about related job.
Job Enrichment :- The term Job enrichment is used in this report to mean a deliberate
upgrading of responsibility, scope and challenge of the job as a non-financial motivation
device.
Motivation: - Motivation is taken to man as a willingness to expand energy to achieve a goal
or reward. It is a force that activates a dormant energy and acts in motion the action of the
people .It is the function that kindles a burning passion for action among the human beings of
an organization.
Promotion: - Performance appraisal has duality of objectives evaluation of an employee in
his/her present role & their development for doing the present job in better way as well as to
develop him for the higher order job. The performance of this higher order job depends on
their potential in the light of the requirements of the new job. Thus, to determine an
employees likelihood to succeed in the new job, potential appraisal is carried.
Communication:- Performance appraisal helps clear communication between the superiors
and their subordinates. Communication helps in giving feedback to managers on their
performance and thus providing satisfaction to the executive.
EXCUTIVE PERFORMANCE APPRAISAL SYSTEM
The Executive Performance Appraisal System will be used to assess the performance of
executives and to plan for their development.
APPRAISAL PROCESS
Self Appraisal

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Performance Review and planning

Performance Assessment
Development plan
Evaluation and Final grading

SELF APPRAISAL
Tasks/targets indicating a few key performance Areas will be set for each appraisee by his
reporting Officer in consultation with the former , This will be communicated to the appraisee
by 31st March of every year , before the of the assessment year. The self-appraisal form will
be filled up by the appraisee twice a year in the first week of October and then in the first
week of April.
The appraisee will factually report on the following, in the Self Appraisal every six months:Tasks/targets fulfilled
Constraints faced
Facilitating resources
Suggestions for improvement
In addition, the appraisee will indicate the following while filling up the self appraisal at the
end of the assessment year.

The highlights of performance

Major strengths
Developmental needs

PERFORMANCE REVIEW AND PLANNING

After Self Appraisal, performance Review and planning will be held twice a year between the
appraise and the Reporting Officer in October and April.
During the PRP session, the Reporting Officer will ensure a conducive climate for
discussion.
In the PRP session, the Reporting Officer and the appraise will discuss:
The extent of task/targets fulfilled.
Major strengths of the appraise
Developmental needs.
Suggestions for improvement of the individual and the team performance.
In the PRP held in October, the discussion will be based on completion of the tasks/ targets
up to the mid year and will incorporate all mid-course change in the tasks/targets for the

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remaining six months. In the PRP held in April, the discussion will be based on fulfillment of
tasks / targets of the assessment year.
The outcomes of PRP discussion will be noted in the specific form and signed by both the
Reporting Officer and appraise.
PERFORMANCE ASSESSMENT
The performance of the appraisee will be assessed after the PRP is held. The reporting officer
will assess the appraisee on a five point rating scale on the following factors. Each factor will
carry a weight as indicated below
E1 E4A
Factors

Weight age

Performance Factors
1. Quantity of output

2. Quality of output

3. Cost control

4. Job knowledge and skill

5. Team spirit and lateral co-ordination

6. Discipline

7. Development and quality of assessment of

ability to learn)
8. Any other Relevant factor

1 .Subordinate(s) (or
1

.Potential Factor
1.

Communication

2.

Initiative

3.

Commitment and sense of responsibility

4.

Problem analysis and decision making,

5.

Planning and organizing

6.
Management of human resources
E5-E9

Performance Factors

Weightage

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1. Quantity of output

2.

Quality of output

3.

Cost Control

4.

Lateral co-ordination

5. Team-spirit

6.

Development and quality of assessment of,

Subordinates

7.

Discipline

8. Any other relevant factor

Potential Factors
1.

Commitment and Sense of responsibility

2.

Planning and organizing

3.

Management of human resources

4.

Problem analysis and decision making ability

5.

Communication

Guidelines. Note: A descriptive overall assessment will also be made on a separate sheet in
the form, in case of appraises in E-5 and above.
The Reporting Officer will give comments or remarks/cite incidents in case he gives extreme
ratings.
The Reporting Officer will make use of the definitions of the rating scales for each factor
which will be indicated in the performance Appraisal
One of the outputs of the system will be that the appraises will be classified into the
following grades in order of merit O A B C
The sum total of the factor score given by the Reporting officer will indicate the category that
the Reporting officer would like to put the appraises in. The following range of scores may be
used as a guide for the indicative grades of the Reporting Officer.
84 and above

68 to 83

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52 to 67

20 to 21
- C
Note: For example if the total score given come to 55, it indicates that the appraise is
suggested to be finally graded as B.
The Reporting Officer will differentiate between performance levels of appraises under him
and to the extent possible follow distribution pattern as indicated below, in order of merit:
O
10%
A

20%

45%

C
25%
The Reporting officer may find some of the appraises not fit for promotion due to their poor
performance. In such cases the Reporting Officer may recommend that the appraise may be
declared as Non-.Promo table for the ensuing one year.
The Reporting Officer will fill a summary sheet indicating the overall factor score of the
appraises reporting to him, and send same to the Reviewing Officer. The Reporting Office
(O) will make his individual assessment independently in the name pattern as listed out for
the Reporting Officer.
PERRORMANCE ASSESSMENT BY REVIEWING OFFICER
The Reviewing officer will get the Appraisal forms and the summary sheets from the
Reporting Officer (O).The Reviewing Officer will rate the individual on each of the factors
listed. He will follow the same principles as the Reporting officer for making his assessment.
He will also prepare a summary sheet indicating the factor scores of the appraises assessed by
him.
PRIMARY GRADING
The Personnel Department will help in compiling the total scores based on the assessment on
each individual factor by the Reporting Officer, Reviewing Officer and the Reporting Officer
(O) taking into account the weight ages attached to each Individual factor and the weightage
given to the Reporting Officer, Reviewing Officer and Reporting Officer (O). This will be
calculated giving 50% weight age to the score given by Reporting Officer, the weightage to
Reporting Officer (O) will be 25% & the weightage given by Reviewing Officer is 25%.
The Total factor scores will then be arranged in descending order for an Appraisal group and
the primary grading [10%-O, 20%-A, 45%-B and25%-C] will be worked out. The appraisal
group will consist of appraises belonging to sections/departments functionally related to each
other.

FUNCTIONING OF PERFORMANCE REVIEW COMMITEE

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The constitution of PRC for different levels will be indicated in the performance Appraisal
Guidelines. The Head of the Department/the next higher authority of the Reviewing Officer
will also be members of the PRC. The Performance Review Committee will receive the
following information from the personal dept.
The factor scores given by Reporting Officer, Reporting Officer (O) and Reviewing officer to
each appraisee.The average factor score of each appraisee and the indicative grade thereof the
primary grading of each appraisee.
The PRC will study the distribution pattern of primary grading and the indicative grades vis-vis the factor score appraises under consideration. The PRC will harmonized grades of
some of the appraises if needed, to remove disparities, if any, in ratings.
However, the moderations may not be of more than one stage up of down with respect to the
primary grading. The PRC will decide the final grading ensuring the distribution of appraisee
the minutes of the PRC meeting will be signed by Chairman and all members. The final
assessment sheet in the Appraisal for will then be filled up and signed by chairman or any
member of PRC.
The PRC may, taking into account the recommendation of the Reporting and Reviewing
Officers, declare some of the executive in the category C as non-promotable for the ensuing
one year.
DEVELOPMENT PLAN
The training needs of the appraisee will be indicated by the Reporting and Reviewing
Officers. The training needs should have a linkage to the development plan discussed by the
Reporting Officer with the appraisee during the performance review and planning discussion.
Both the Reporting Officer and Reviewing Officer will indicate job rotation /job suitability of
the appraisee. The Personnel / Training department will utilize the training needs sheet to
develop suitable training plans for the appraisees in consultation with the concerned heads of
department or higher authorities.
Personnel Department will make a job rotation plan based on comments of the Reviewing
Officer and implement the same in consultation with the concerned heads of departments or
higher authorities.
GENERAL SPECIAL PROVISIONS FOR EXECUTIVE REPORTING TO
CHAIRMAN/CHIEF EXECUTIVES:For Officers directly reporting to chairman, there will be no Reviewing officer of committee.
Chairman, as the reporting officer, will appraise such officers and 100% weightage will be
attached to such assessment. Chairman will also discharge the function of PRC and indicate
the final grading (O/A/B/C) of the concerned appraisee. There will be no primary grading.
The performance appraisals of heads of functional departments, reporting directly to the chief
executive, will be reviewed by chairman. In all such cases, the Reporting Officer (O) will be

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the functional Director concerned in corporate office. Relative assessment will be an inter
company Review committee headed by chairman. For officers up to E-5 level reporting to
chief Executives, final grading will be done by the chief Executive himself.
APPRAISAL CALENDAR
The appraisal calendar indicating dates on which various actions are to be/ initiated and
completed will be given in the performance Appraisal Guidelines.
APPRAISAL FORMS
Suitable appraisal formats will be used for making assessment of executives.
TENURE:The policy will come into force from a date notified by chairman, SIG remain in force for a
period as decided by him the company reserves the right to withdraw the system at any time
without Notice Chairman, SIG is authorized to approve the details under the policy and the
appraisal formats for implementation of the same. He is also authorized to amend or modify
the system, as and when required.

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EXECUTIVE PERFORMANCE APPRAISAL SYSTEM GUIDELINES

EXECUTIVE PERFORMANCE APPRAISAL SYSTEM COMPRISES OF :
PART A Self-appraisal
PART B Performance Review planning
PART C Performance Assessment
PART D Development Plan
PART E Final assessment
TASK/ TARGET SETTING

The Self-appraisal forms will be sent by the personnel department to the Reporting
Officers to be handed over to the appraisee. Reviewing Officers/ HODs will also be kept
informed of the same.
The self-appraisal form will be completed by the appraisee twice every year, once in the
month of October for the period April 1 to September 30, and again in the month of April
for period October 1 to March 31. The broad guidelines mentioned below should be
followed for completing the self- appraisal.
The self-appraisal should be completed on the basis of the tasks/targets set at the
beginning of year. The appraisee should furnish factual information and avoid evaluation
of performance.
The appraise should record only those constraints which were not taken into account
while setting targets and those which are outside appraisees control.
The appraise should record resources which have facilitated performance during the
appraisal period. These facilitating resources could be attributable to (a). The appraisee
viz. Individual abilities , Efforts , Interpersonal competence etc., (b) Reporting/Reviewing
Officer viz. Quick decision making , staff support , Delegation , Approachability etc., (c)
Organization & its structure viz. Flexible policies, Good working condition, Effective
control systems etc., (d) Subordinates viz,. Hard work by them, Motivation, Cooperation
etc. and (e) External environment viz. Government policies, improved economic
situation, poor image of competitors etc.
While completing the annual self appraisal form in the month of April every year, the
appraisee should also record the highlights of his performance, major strengths and
development needs.
Highlights of performance should include target achieved beyond stated Norm,
innovative work processes, cost reduction measures etc.
Developmental needs should mention specific areas, which in the appraisees opinion;
need to be improved for enhancing the performance. These may include suggestions for
training, job rotation, exposure in other areas/functions etc.

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After completing the self appraisal form as per guidelines mentioned above, the
appraisee should return the same to the Reporting officer duly signed.
The Reporting Officer will study the self appraisal and call the appraisee for
Performance Review and Planning.
The Personnel department will analyze the constraints, facilitating resources, suggestions
for improvement etc, department-wise and send them to the respective Heads of
Departments.

PERFORMANCE REVIEW AND PLANING (PRP)

The appraisal system provides for formal review and planning of performance twice a
year between the appraisee and the Reporting Officer.
The first PRP session i.e. the mid-term PRP, should be held after the self appraisal
form is completed by the appraisee in October.
The second PRP i.e. the annual PRP, should be held after the self-appraisal for the last
six months of the year is completed in April.
These PRP sessions are in addition to the informal performance review and planning
discussion which take place between the Reporting Officer and appraisee on work
related needs.

The objective of PRP is to:

Discuss the performance of the appraisee in relation to the tasks/targets set, the
shortfalls and mid-course correction, if any required.
Discuss the major strengths which have facilitated the appraisees performance and also
those aspects that he / she need to develop.
For example, planning ability could be a strength exhibited and inability, to maintain
discipline within the team, a shortfall.
Identify and finalize the thrust areas for the next six months/one year, resources
required, constraints to be overcome and a mutual understanding of expectations from
each other.
The Reporting Officer must record the highlights of the discussions in the structured
format provided and sign the form. This should be read and signed by the appraisee
also .The date on which the PRP was held should be recorded.
PERFORMANCE ASSESSMENT

After the annual PRP session, the Reporting officer, Reporting Officer (o) and reviewing
officer are required to assess the performance of the appraisee on Performance and
potential factors.
In addition, there will be a special relevant factor specific to the function/area of work of the
appraisee, identified for the year. Each appraisee will be assessed on one such relevant factor
also. Taking into account the thrust areas of different departments, a few illustrations of
special relevant factor are given. The Head of Function/zone will identify the special factor
on which assessment will be made for that particular year. The factor so identified will be
communicated to each appraisee along with the tasks/targets set for the year. Personnel
department will assist the Head of function/Zone in the process of identification and
communication of the special relevant factor in the space provided for in the appraisal form.

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Each factor has been assigned a weight to indicate its importance in the overall assessment.
Each factor is to be assessed on a 5 point rating scale. Rating is to be given in numbers 1 to 5
in the space provided. Each point on the five point scale has been defined, which should be
kept in view to ensure proper assessment.
Factor score will be arrived at by multiplying the scale point (i.e. 1,2,3,4 or 5) with the
assigned weight (i.e. 1 or 2) of the factor. The aggregate of factor scores will be the total
factor score.
In case extreme rating i.e. 1 or 5 is given for assessment of any factor, comments/indicates
justifying the same may be indicated in the space provided for comments on overall
performance.
The Reporting Officer and the Reviewing Officer should note that final distribution of
executives will be in the following order of merit:10% -

20%-

30%-

40%-

While assessing, each Reporting Officer and Reviewing Officer should differentiate between
levels of performance of the executive working under them and to the extent possible follow
the above pattern. This will minimize moderation by the performance Review committee.
84 and above - O
68 to 83

-A

52 to 67

-B

20 to 51

-C

The assessing authority will not however record the grade i.e. O, A, B or C in the form.
Comments on overall performance of the appraisse may be recorded in the space provided. If
an appraisee is deemed non- promotable due to his poor performance, the assessing authority
may record his /her recommendation that the aprraisee may be declared non- promotable for
the ensuring one year and the reasons for such recommendations.
The Reporting Officer, after completing the performance assessment part, will also complete
the summary sheet in the format and it to the Reviewing Officer along with the appraisal
form.
The concept of Reporting Officer (O) applies to some of the service/staff appraises. The
Reporting Officer (O), wherever applicable will assess the appraisee on the above lines and

23

return the form to the summary sheet(s)and send the same to the concerned Reviewing
Officer(s).Reviewing Officer will give his assessment of the appraisee and will also complete
a summary sheet which will be an input for the final evaluation by performance Review
committee. He will send the entire document to the personnel department. The personnel
department will analyze the trend/spread of ratings and give suitable feedback to the
Reviewing Officer.
Higher Authority above the Reviewing officer may, by exception, call for the appraisal
reports and record his/her comments on the overall performance/potential of the appraisee. A
separate page is provided in the form for such comments, in case of appraises in the grade of
E-7/E-8 the chairman may call for reports to record his comments.
DEVELOPMENT PLAN
Development of executives imagined through training, job rotation / enrichment and
counseling /coaching. While indicating training needs the assessing authorities may keep the
following in mind:
Training needs should be indicated for executives whom the assessing authority recommends
to be trained in the ensuing year. Information regarding training programmes attended by the
executives in the last two years may be obtained from the Training department. Please also
note that the Training department will normally plan to train about 30-40% of the executives
in one year.
Training recommended should be as specific as possible and take into consideration the
appraisees own views also.
Training needs and other development plans should be linked to the appraisees present area
of responsibility, future assignments/needs and major strength/ weaknesses.
In case the appraisee is recommended for job rotation / enrichment, the specific area may be
indicated. This should be based on appraisees potential/development needs/future etc.
FINAL ASSESSMENT
Final assessment will be done by a performance Review committee (PRC).The performance
Review Committees will be suitable constituted in such that the Head of he Department to
which the assess belongs or the authority above the Reviewing Officer is included in the
committee. . This should be formalized with the approval of respective chief Executive of the
Organization.
For each appraisee there will be a maximum of 3 total factor score awarded by the
Reporting Officer (O) and Reviewing Officer.
Weightages have been indicated for the assessment of the namely 50% for the Reporting
Officer, 25% for the Reporting officer (O), and 25% for Reviewing Officer. If there is no
Reporting Officer (O), the weight age for the Reviewing Officer will be 50%.

24

By multiplying the total factor given by the assessing authorities with the above weightages
(i.e. 0.5 or 0.25 as the case may be), the weighed score for Reporting Officer, Reviewing
officer and Reporting Officer (O) will be obtained. A total of this will give the average
appraisal score.
The average appraisal score would be converted, by the personnel department, into an
indicative grading of the appraisee as a per following guidelines. Range of appraisal
Indicative grading
84 & above -

68-83

52-67

20-51

In case of a large department. The executives of the departments as whole or particular

section/sections may be grouped together. This would also be indicated in the final
assessment sheet placed before the PRC.
All executive within an appraisal group will brew listed in descended order on the basis make
of the average appraisal score secured by them. An Appraisal group will consist of grades
belonging to department/sections related to each other.
Each appraisal group will be finally evaluated by the PRC. The chairman of the PRC
concerned will ensure grouping of executives based in related function.
It will be ensured that such grouping will be done only when the departments are related to
each other.
Personnel department will ensure a common approach in the site/unit in respect of formation
of appraisal camps in different areas. The appraisal grouping will be finalized in location with
the corporate office so as to maintain inter-unit parity the extent possible.
The first 10% the executives of the appraisal group listed in descending order based
on average a score, will be categorized as O, 20% in category A, The next 45% as B and
last 25% as C this is the primary grading.
The PRC will be given the following inputs for every executive in an appraisal group.
Factor score awarded by Reporting Officer, Reviewing Officer and Reporting Officer (O)
(where applicable).
Indicative grading based on average appraisal score.
Primary grading based on the specified distribution of the score & the overall performance of
departments.

25

Discrepancies in the trend of scores awarded by different Reporting of Reviewing Officers

for the appraised in an apprisee of an appraisal group.
Performance Review Committee will perform the following function:To ensure moderation of assessments, the Performance Review Committee may move
officers one step up of down firm the primary grading subject to the condition that the overall
distribution of 10%-O; 20%-A;45&-B;and 25%-C prevails. The grading decided by the PRC
will be the final grading.
PRC may declare executive non-promo table, for the ensuing one year, out the category C
based on the recommendations of the Reporting and Reviewing Officers. PRC will also
record the reasons for declaring the appraise non-promo table.
PRC will also make job rotation plans for the executives.
Once the final grading is complete, the same should be entered in each executives appraisal
form and duly signed by Chairman or a member of the PRC.
Based on the decision of the PRC, the personnel Department will ensure
communication
of the non-promo table ratings and the reasons thereof to the appraisers(s) concerned.
The assessment year is from 1st April to 31st March. The executives rated as non-promo
table will not be considered for promotion for the ensuing one year i.e., the financial year
following the assessment year.
The executive(s) rated as non-promo table may appeal for review of the assessment.
The appeal for review should be made to the Chairman of the PRC within 10 days of receipt
of communication from Personnel department regarding non-promotable rating.
The PRC may review and either reverses or confirms its earlier decision In case PRC
confirms the earlier decision will be final and binding on the executive concerned. If PRC
reverses the earlier decision, the case is not sent to the chief Executive. PRC will consult the
reporting officer in case of executives in E-6 and above, such appeals will be made to
Chairmans SIG through the chief Executive concerned. The chief Executive will give his
comments and forward the appeal to the chairman. The decision of chairman, SIG will be
final and binding.
INTERNAL RESOURCE PERSONS (IRP)
Each site/Unit will have a group of executives identified as internal Resource persons who
will act as change agents, facilitators and trainers and help in the implementation of the
appraisal system.
Similarly , a group of personal executive will identified in each site/ Unit to work full time
for implementation of the executive performance appraisal system.
THE APPRAISAL PROGRAMME
While selecting an appropriate rating form or method is important, what is even
more important is the quality of the rater and the fact that certain basic questions as to who,

26

what, why, when, where and how of Performance Appraisal are considered before proceeding
ahead.
Who is to rate?
In most situations, the rater is the immediate superior of the person to be rated. Because of
frequent contact, he or she is most familiar with the employees work. In addition, any
organizations consider that it is essential to support the leadership and authority position of
the supervisor by considering employee appraisal as an integral part of the supervisory task.
Supervisor ratings are often reviewed and approved by higher management, thereby
maintaining hierarchical control over the appraisal process. If more involvement is deemed
desirable, the appraisal process can be undertaken by a group of raters. Members of the group
can be superiors, peers, and subordinates. If they are all superiors, group appraisal ventures
only a small distance from classical management theories. If they are all subordinates, it
involves a considerable move toward behavioral theories. The final possibility, which is most
behavioral in orientation, is to allow subordinates to rate themselves. The major values lie in
the development and motivation areas, it being claimed that this approach (1) results in a
superior upward low of information, (2) forces the subordinates to become more personally
involved and to do some systematic thinking about self and work, (3) improves
communication between superior and subordinate, in that each is given more information by
the other when disagreements are discovered, and (4) improves motivation as a result of
greater participation. If the basic participatory management approach continues to grow, it is
certain that the self rating aspect of the process will also become more widespread.
However, Miner suggests that multiple ratings of managerial and professional personnel by
superiors, peers, and subordinates will be the approach in the future.
What to rate?
What of the performance appraisal consists in appraising not supervisory employees for their
current performance, and managers for future potential? It also includes evaluation of human
traits.
Why to rate?
The why of an appraisal is concerned with (a) creating and maintaining a satisfactory level
of performance of employees on their prevent jobs; (b) highlighting employee needs and
opportunities for personal growth and development; (c) Aiding in decision making for
performance related aspects like promotions, transfers, lay offs and discharges; and (d)
promoting understanding between the supervisor and his subordinates.
When to rate?
The usual schedule in the timing of ratings is twice yearly. New employees are rated more
frequently than older ones. However, practices vary from organization. In Indian context,
generally the employers go in for once year appraisal since the pressure of other duties
probably prevents them from going in for more frequent appraisals.
Where to rate?

27

The Where indicates the location where an employee may be evaluated? It is usually done at
the place of work or office of the supervisor. Informal appraisals may take place anywhere
and every where, both on the job and off the job.
The how indicates the different methods used in performance appraisal.
PROBLEMS/BARRIERS/LIMITATIONS
Performance appraisals are subject to several humans judgmental errors. Some of them are
discussed below: Ambiguity: This error occurs when factors used to be described are not clear. It should be very clear so
that all maters have the same sort of behavior in mind. Unless, all raters agree on what such
factors like quality & quantity of output mean, their final ratings simply cannot be compared.
Insufficient evidence: The boss frequently gets a limited & often a distorted view of subordinates performance. The
subordinates ability to get along with the boss may have a greater impact on his/ her rating
than does actual performance on his job. Rating committees naturally help to reduce this
problem.
Differing Perception:Often raters tend to rate the subordinates similar to themselves in background values & styles
of behavior higher than they rate subordinates with dissimilar life style (the similar- to- me
-effect).
Regency and Primacy effects:Regency error occurs when the person is rated on the basis of very recent performance and a
primacy error occurs when the rating is based on previous rating. By keeping & using
detailed performance records over time, these errors can be minimized.
Faulty Assumptions:Because of the faulty assumptions of the parties concerned, superior and his subordinate in
appraisal system it does not work properly or objectively. Managers naturally wish to make
fair & accurate appraisal of subordinates is untenable. These assumptions are due to
psychological characteristics, technical deficiencies. Managers often take a particular
appraisal system as perfect. They sometimes assume that personal opinion is better than
formal appraisal.
Psychological Blocks:The utility of performance appraisal depends upon the psychological characteristics of
managers. There are several psychological blocks when are manager feeling of insecurity,

28

appraisal as an extra burden, their being excessively modest or skeptical, disliking of

resentment by subordinates, disliking of communicating poor performance to subordinates.
Thus managers do not tend to become impartial in evaluating their subordinates.
Technical pitfalls:The main technical difficulties in appraisal fall in two categories -criterion problem &
distortions that reduce the validity of results.
1) Criterion Problem: A criterion is a standard of performance the manager desires of his subordinates & against
which he compares their actual performance. Criteria are hard to define in measurable or
objective terms. Ambiguity, vagueness & generality of criteria are difficult hurdles for any
process to overcome.
2) Distortions:Distortions occur in the form of biases and errors in making the evaluation. May be
introduced by the evaluator consciously or unconsciously. An appraisal system has the
following possible distortions.
3) Halo effect:This distortion exists where the rater is influenced by raters one or two outstandingly good
(or bad) performances & he evaluates the entire performance accordingly. It also occurs
where the raters judgments is influenced by the work team or informal group with which a
subordinate associates. If the group is not well liked, this attitude may work in the rating of
the individuals on it, apart from the actual performance.
4) Central Tendency:This error occurs when the rater marks all or almost all his personnel as average. He fails to
discriminate between superior and inferior persons. It arises from the raters lack of
knowledge of individuals he is rating, or from haste, indifference or carelessness.
5) Constant errors: Some rater habitually rates everyone high, others tend to rate low. Some rate on potential
rather than on recent observed performance. The results of the two raters are hardly
comparable.
6) Raters Liking & Disliking: Managers, being human, have strong liking or disliking for people, particularly close
associates. The rating is influenced by personal factors & emotions & raters may weigh
personality traits more heavily than they realize. Raters tend to give high rating to persons
whom they like & low rating that they dislike.

29

INTRODUCTION/STATEMENT OF THE PROBLEM (PERFORMANCE

APPRAISAL)
Appraisal is the evaluation of worth, quality or merit. In the organization context performance
appraisal is a systematic evaluation of personnel by superiors or others familiar with their
performance. Performance appraisal is described as merit rating in which are individual is
ranked as better or worse in comparison to others.
Societies cannot exist without judgment. In the context of an organization, some form of
control & co-ordination is needed to facilitate achievement of its goals and objectives. As
such, control devices in form of performance appraisal are used in the area of human resource
management. In a work group, members consciously or unconsciously, make opinion about
the quality, behavior, and way of working of others. Such an opinion becomes the basis for
interpersonal interaction.
In any organization, every manager is subject to periodic performance appraisal. Performance
appraisal is one of the Key systems of the modern corporate world to control and coordinate
the achievement of the organizational objectives. Performance appraisal is a systematic and
objective way of judging the relative worth or ability of an employee in performing his job.
Performance appraisal in some form has existed in old days also. Wei Dynasty (221-265
A.D.) in China introduced performance appraisal in which an Imperial Rater appraised the
performance of members of the official family. In 1883, the New York Cicivil services
adopted performance appraisal. Since then, performance appraisal in formal way has been
adopted by most of the large organization particularly in business field.

30

RESEARCH METHODOLOGY
According to Clifford Woody research comprises defining and redefining the problems,
formulating hypothesis or suggested solutions, collecting, organizing and evaluating data,
making deductions and reaching conclusions whether they fit the formulating hypothesis.
Research Methodology is a procedure designed to the extent to which it is planned and
evaluated before conducting the enquiry and to the extent to which the method for making
decisions is evaluated. The research methodology if scientifically developed enables the
researcher to establish with high degree of confidence, cause and effect relationship between
the research activities and observed outcomes.
This part of the study deals with methodology used in present investigation. For gaining new
knowledge in a particular field it explains the nature of study, details of sample design,
Collection of data, Analysis of data through statistical tools and interpretation of the data
collected.
RESEARCH DESIGN
A Research Design is the conceptual structure within which the study is to be conducted. It
constitutes the Blue print for Collection, measurement and analysis of data.
NATURE OF STUDY
This study is descriptive and Qualitative in nature i.e. which includes Survey involving
executives & non-executive of company taking into consideration attitudes, opinions,
behavior and performance regarding their job.
PREPARATION AND DESIGN OF QUESTIONNAIRE
A Questionnaire was designed for the study and measures the performance level of
executives & non executive at Majestic Seats India(pvt.)ltd. with the help of available
literature and project guide. The questions relating to general information of employees,
awareness on various aspects of their job and policies and approach of management were put.
Both closed and open-ended questions were included. Also, all questions were given in a
proper sequence and simple language in order to give a clear picture of the situation given
and to avoid any misunderstanding to the respondents. In the questionnaire, suggestions of
the employees were requested if they want any improvement in the present appraisal system
technique being followed up.
SAMPLE DESIGN
A sample is a definite plan obtaining a sample from a given population.
1-Universe:The first step in developing any sample is to clearly define the Universe (set of objects) to be
studied .The Universe in the present study is restricted to the total number of 300 employees
in the organization.

31

2. Sample Size:In order to make sample representative of the population, it was decided to collect
information from a sample size of 50 employees including both technical and non technical
employees.
3. Sampling Procedure:- After deciding the proper sample size, appropriate sampling
technique to be used must be selected. Therefore, Simple Random sampling technique has
been used for collection of primary data.
Data Sources
Two types of data sources are chosen for the study:
o Primary Sources
o

Secondary Sources

Primary Data: Primary data was collected by a way of Questionnaire designed for both
technical and non technical employees of SIG. The questionnaire content questions which
include awareness of the employees on various aspects like organizational objectives, the
performance appraisal technique being followed. The collection of primary data was
accomplished at different departments after a personnel visit to all the departments:

o
o
o
o
o
o

Works
Services
Construction
Maintenance
Operations
Information Technology

The distribution of questionnaire was done on a random basis in all the departments. After a
brief introduction about the purpose of study and the contents of the questionnaire, it was
given to employees and asked to fill up and give their feedback on various factors in the same
and collected hand-to-hand from them. Assistance was provided to respondents whenever
needed. Secondary data was collected from various books of Human resource management
and Organizational Behavior of different authors Magazines & Newsletters of SIG and with
the help of internet.
3. ANALYSIS OF DATA:- After collection of data, the researcher turns to the task of
analyzing it. The responses given by employees are analyzed in order to present in into
meaningful form. Thus, statistical techniques like Tabulation and graphical representation of
data are used. Various bar diagrams are used in order to present information clearly.
4. INTERPRETATION OF DATA:Lastly, after analysis of data, the findings of the study are studied and represented in a logical
and precise manner so as to arrive at a conclusion of the study and to provide any
recommendations and suggestions on this basis.
STRATA CLASSIFICATION
The strata classification in general has been done in the following ways: - Strata

32

Assessment system
Executive Appraisal system process
Non executive - Confidential Report

INTRODUCTION ABOUT Majestic Seats (India) PVT. LTD.

Majestic Seats (India) was established in the year 1985 as a registered small scale
unit. It manufactures mainly Plastic moulded components, Driver Seat
Assemblies & Cabin parts for Earthmoving & Automobile industry. It is a
system oriented organisation and has been ISO 9001:2008 certified, from a
reputed certifying agency International Standards Certification.
The business activities can be broadly classified into the following segments:
Type of Products

Approx %age of Turnover

1 Rotomoulded Components

50%

2. Dip Moulded Components

10%

3. Cast Mouldings

s10%

4. Driver Seat Assemblies

30%

33

Management
This is a proprietorship concern which was established by Mr.Ashok Sharma who,
with his entrepreneurship & rich experience has been involved in development of whole
range of Seats & Plastic Products involving different processes of manufacturing which
has resulted in the company making noticeable growth.
YEAR

TURNOVER

2005-06

Rs. 100 Million

2006-07

Rs. 180 Million

2007-08

Rs. 250 Million

2008-2009

Rs. 150 Million

2009-2010

Rs. 190 Million

2010-2011

Rs. 240 Million

2011-2012

Rs. 300 Million

34

Plants
The company has 4 plants at different location which are as under.
1. Majestic Seats (India)
Plot No. 16, DLF Industrial Area -I
Faridabad (Haryana)
Ph. No. 91-129-2250306 / 2277711
Fax No. 91-129-4113516
E-Mail. majesticseats@hotmail.com
Land Area

- 1500 Sq. yard

Covered Area - 20000 Sq. ft.

Sanctioned Load 260 K.V.A.
Power Backup 207.5 K.V.A.
(Generation Capacity)

35

Products
We manufacture various products which are used as cabin internals & externals which are as
under: . Driver Seats

36

37

Quality Policy
M/s Majestic Seats (India) are committed to consistently strive for achieving customer
satisfaction through continuous improvement by economic and innovative efforts in our
activities related to ;
Mutually agreed quality
Timely delivery and
Competitive Price
Competitive Price
Quality Objective
Majestic Seats (India) makes relentless efforts to achieve continuous improvement in all
its activities and to grow graciously at sustainable pace to become a leading company.
The following are the quality objectives of the company:
1. To reduce customer complaints with time to improve
customers satisfaction.
2. To reduce rejection and rework to improve plant performance
and working for achieving 500 ppm.
3. To improve quality level of sub-contractors supplied
components.
4. To provide relevant training to the employees in identified
areas.

38

Future Plans
The Company expects to grow at a fast pace looking at the investments in the infrastructure
sectors in India with almost a double digit GDP growth rate.
The earthmoving, construction equipment & farm equipment sectors are expected to get a
great boost and the company being suppliers to all the major players in the field expect big
opportunities.

39

DATA PRESENTATION AND

Q1.

ANALYSIS

Do you think that Performance Appraisal is essential for the employees in The
Company?

a)

Fully

b)

Partially

c)

Not at all
Graph1. Performance Appraisal is essential

Partially
20%

Not at all
0%

Fully
Partially
Not at all

Fully
80%

Analysis and Interpretation:

It shows 80% of the employees agree that performance appraisal is essential for the
employees of the company and 20% of the employees partially agree.
Currently annual appraisal system in Majestic seats india pvt.ltd. is carried out for the
employees at executive levels and above only. The target set may be reviewed quarterly so
that strengths and weaknesses, if any, can be assesses and remedial measures suggested
accordingly.
Q2:

Performance appraisal has been described as the responsibility, which is not liked by
the superiors. Do you think so?
a) Yes

40

b) Partially
c) Not at all

Graph2: Perfromance Appraisal is described as

responsibility

Not at all
27%

Yes
27%
Yes
Partially
Not at all

Partially
46%

Analysis and Interpretation:

46% executives say that they consider performance appraisal as the responsibility they liked
the least. 27% executives agree that it is a responsibility not liked by them and remaining
27% denies about any such probability.
Considerable amount of time is spent for getting the appraisals done as per the existing
system. The company should improve the existing system by designing and implementing
departmental performance review system on a quarterly basis.
Q3:

Do you agree that self-appraisal prior to performance appraisal facilitates you to get
high ratings?
a) Completely
b) Partially
c) Not at all

41

Graph3: Self appraisal prior to perfrom ance appraisal

facilitates to get high ratings.
Completely
27%

Not at all
27%

Completely
Partially
Not at all

Partially
46%

Analysis and Interpretation:

45.5% of the employees say partially self-appraisal facilitates to get high ratings, 27.3%
employees agree completely and other 27.2% say self-appraisal does not help in high ratings
in performance appraisal.
Q4:

Does your supervisor give you effective feedback on a regular basis?

a)

Yes

b)

Depends on the employees

c)

Not at all
Analysis and

Interpretation:
It is clear in the graph that 100% of the employees say that the superior gives them effective
feedback on a regular basis.

42

Any company should give feedback to the employees periodically. They can also extend
proper diagnostic tips/ counseling methods at the required level.
Q5:

Do you think that performance appraisal is the tool that improves employees
performance level?
a)

To a great extent

b)

To some extent

c)

Not at all

Graph5: Performance appraisal improves employees

perfromance level
Not at all
8%

To some extent
18%

To some extent
To a great extent
Not at all
To a great extent
74%

Analysis and Interpretation:

The graph shows 74% employees agree that up to a great extent, 18% say that to some extent
and 8% of the employees believe performance appraisal not at all improves performance
appraisal.
Currently the companys existing appraisal system is on annual basis. This may be reviewed
on a quarterly basis, which will help in assessing the strengths and weaknesses of executives
and role modifications can be suggested accordingly.
Q6:

Are you capable of achieving goals set for you?

a)

Consistently

b)

Occasionally

c)

Never

43

Graph6: Capability of attaining the set goals

100%
90%
80%
70%
60%
50%
40%

Consistently

30%

Occassionally
Never

20%
10%
0%
Consistently

Occassionally

Never

Opinion of employees

Analysis and Interpretation:

The graph shows 100% of the employees are consistently capable of attaining their set goals.
The target achieved by the employees may be vis--vis the target achieved last year. The
company should endorse proper diagnostic mapping for role modifications/ training and
development needs.
Q7:

To what extent is the Majestic seats india pvt.ltd making progress towards its

mission and goals?

a)

To a great extent

b)

To some extent

c)

No opinion

44

Analysis and Interpretation:

In this graph 82% of the employees say that Majestic Seats India Pvt .ltd is making
progress towards its mission and goals to a great extent and 18% employees say that only to
some extent company is making progress towards mission and goals.
For the further progress of companys mission and goals organizational planning and
development department should be involved for quarterly analysis of the feedback received.
Q8:

Do you get merit raise when the performance evaluation indicates that you are

meeting the set standard on the job?

a) To a great extent
b) To some extent
c) Not at all

45

Graph8. Merit raise when the employees meet the

standard

Not at all
10%
To some extent
20%

To a great extent
To some extent
Not at all

To a great
extent
70%

Analysis and Interpretation:

70% of the employees say up to a great extent they get merit raise, 20% employees say that
up to some extent they get merit raise and minority of 10% employees agree they do not get
any merit raise.
Apart from the merits awarded based on the performance indicators; HR should introduce
system for proper recognition rewards to such employees.
Q9:

Do your co-workers and superiors help you to cope up with your poor performance?
a)

To a great extent

b)

To some extent

c)

Not at all

46

Graph 9: Support of co-workers and superiors

Not at all
0%

To some extent
47%

To some extent
To a great extent

To a great extent
53%

Not at all

Analysis and Interpretation:

The graph shows 53% of the employees say up to great extent their co-workers and superiors
help them to cope up with their poor performance and 47% say to some extent.
Majestic Seats India Pvt .ltd can also concentrate on designing and implementing proper inhouse counseling program through group discussions/ personal interaction.
Q10: In your opinion to what extent are the superiors responsible for the progress of
Majestic Seats India Pvt .ltd .?
a)

To a great extent

b)

To some extent

c)

Not at all

47

Analysis and Interpretation:

The graph shows 37% of the employees believe to great extent superiors are responsible for
the progress, 28% are responsible to some extent and 35% say the superiors are not at all
responsible for the progress of the company.
For the progress of the company the performance appraisal of the top-level management are
also to be carried on a quarterly basis. Competency skills are to be assessed and effective role
modification areas are to be suggested.

48

FINDINGS OF THE STUDY

After meeting the executives & non executive of different levels (viz E1 to E10 grades) of
Majestic Seats India Pvt. Ltd. interacting with them, the following information and facts
were gathered:CONSTRAINTS
General Constraints faced by superiors (Appraisers) while doing performance appraisal for
appraisee (Executives):

Performances are not generally recorded on regular basis

Facts are not recorded as per plan.

In availability of adequate resources.

Unawareness of employees about profit maximization with utility and plans made are
not strictly followed

Performance appraisals are not related to any financial implications on the

individuals.

It should be used as a proper yardstick & tool for measurement of

The Present technique must need more practical approach

Partiality is done for individuals in the marking system.

49

performances.

SUGGESTIONS/RECOMMENDATIONS
In any performance appraisal, due consideration must be given to the ethics of appraisal,
failing which many organizational problems may crop up and the very purpose of appraisal
may be defeated. The following are some suggestions and recommendations for appraisees,
appraisers and reviewers.
I.

For Appraisees:
Following are five keys to help employees to overcome a bad appraisal:
1.

Employees should complete a draft of the Performance Appraisal Form or

Narrative Form. They will be surprised at how much they have accomplished.

2.

They should go into the review assuming there will be some negatives, and think
of the meeting as a way to learn what specific issues they have to work on to get
to that next step. Its the boss job to let the employees know about areas where
they can improve, so the employee should try not to be offended. The employees
goal is to convince the supervisor, in a positive manner, that they are willing to
make that commitment.

3.

Before going into a review, employees should carry a page with two columns, the
first headed Specific Areas of Strength and the second, Specific Areas of
Improvement. Its very important that they hear both the good and the bad
comments, because they will never improve, to their boss satisfaction, if they
deny, in their anger, that there are any areas needing improvement.

4.

Employees should ask for clarification and specific examples if they hear
generalizations or dont understand what the problem is. But they should try hard
not to be too argumentative.

5.

Employees should find out how their boss might solve these issues, and ask for
another review in 30 days to address these specific issues, to see if headway is
being made.

Thus, the employees should create an image of a thoughtful employee who is willing to
change and able to modify behavior.

II.

For Appraisers:

50

Appraising manager should prepare for the appraisal in following ways:

1.

He must be well trained and he should know why the appraisal is needed.

2.

Clarify expectations for the employee (a job description with a listing of duties
and responsibilities).

3.

Make the employee aware of performance standards, objectives, expectations and

specific areas of accountability.

4.

Encourage the employee to prepare for the meeting.

5.

Review actual work performance in relation to the performance plan, objectives

and outcomes.

6.

Provide ongoing feedback on performance on day-to-day basis. If an employee is

given ongoing feedback, then the annual appraisal should contain no surprises.

7.

Schedule the appraisal meeting several days in advance.

8.

Put the employee at ease at the beginning of the appraisal meeting.

9.

Allow the employee to engage in self-evaluation.

10. Emphasize work behaviors rather than personal traits.

11. As soon as a performance is declined or affected, openly discuss with the
employee to try to determine the cause of affecting the performance.
12. Provide positive feedback as well as negative feedback.
13. Keep a regular record of lack-a-side attitude.
14. While appraising, he should make it clear to the employee that it is only his
personal opinion of the facts as seen by him;
15. Use specific examples to illustrate employees accomplishments.
16. He should pass the appraisal information on only to those concerned with the
process.
17. To initiate the performance appraisal discussion with the concerned subordinate
by objectively assessing performance vis--vis targets set.
18. Ask probing questions to seek clarification of misunderstandings or views that
differ. This gives the employee an opportunity to discuss items of interest or
concern.

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19. Close the performance review meeting:

Summarize the key issues that were discussed and seek agreement and/or
clarification.
Give positive feedback to the employee for his/her active participation in the
review meeting.
Reinforce ones commitment and the employees commitment to future plans,
as discussed.
Explain the next step in the performance process.
End the meeting in a positive, friendly manner.
20. Identify potential talent
21. To discuss subordinates appraisal with the Reviewer & finalize ratings.

III. For Reviewers:

For final decision maker i.e. reviewers the following are the recommendations:
1.

To articulate department/ SBU goals in line with organization vision.

2.

To cross verify Final Ratings and Promotion relating to all team members.

3.

To moderate Ratings of team members based on departmental/SBU performance.

4.

Should not be bias, but be fair in rewarding or penalizing the appraisee.

5.

To review the potential talent identified by appraiser.

6.

Should not compare the employees appraisal with somebody elses without
knowing the basis on which it was made.

7.

To ensure timely submission of all targets and appraisals of the entire team
(department) to Human Resource department.

8.

To ensure that all Appraisees have been given constructive feedback by respective
Appraisers.

IV. Management Committee:

The role of Management Committee is to:
1.

Strategically lay overall organizational vision/ goals.

52

2.

Critically review business results based on set targets.

3.

Review & approve departmental / SBU rating pattern and promotions.

4.

Decide on incentive and increment matrix (compensation strategy) for

organization.

5.

Review all potential talent identified and lay a strategic intent towards their
development.

V. Human resources:
The human resources department has to:
1.

Facilitate performance management system process across the company.

2.

Conduct workshop for higher clarity & bearing on performance management

system (PMS).

3.

Make use of PMS to create talent pipeline for future.

4.

Propose & work closely with management committee on compensation strategy &
implementation linked to market & performance.

5.

Ensure end-to-end visibility in completion of this exercise and timely release of

reward letters.

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LIMITATIONS OF THE STUDY

Firstly, the information collected from the questionnaire may not be accurate, as some of the
personnels could have given biased answers depending upon the various factors.
Secondly, the sample size was confined to 50 Executives therefore the conclusions drawn
hold true only for this much of sample size and hence the analysis may not be appropriate if it
is used for more of the sample size.
Thirdly, As per the view of the personnels, the schedule needs some modifications further, in
huge organization like of Majestic Seats India Pvt .ltd employees with over busy schedule
instrument was really difficult to answer.
Lastly, it was quite time consuming to contact every employee and then to follow up for the
data collection. Provision, should be made so that with the prior permission of G.M of the
department concerned, a meeting with the batch of 10-15 executives at a time to ease and
speed up the data administration process. But, frankly the environment of Majestic Seats
India Pvt .ltd is quite conductive, cooperative and encouraging.

54

CONCLUSION
In the new millennium when the corporate world its designing newer techniques for
developing employees and retaining them, Majestic Seats India Pvt. Ltd .is no way behind
and the organizational structure is such that people works hand in hand to align the
organizational goals with the individuals goals.
Evaluation of employees performance is helpful as to strengthen the employees productivity,
their promotion, transfer, training and development needs etc. The organization has
implemented the evaluation process not only to evaluate the performance of employees but
also for their increment and promotion. The company follows a transparent performance
appraisal system with no personal bias because it is wholly based on individuals contribution
towards the organization. But there are some loopholes in the system that should be analyzed
and corrective measures should be taken.
To sum it up, this project has provided me with opportunities to learn different areas of the
HR function and has given me stepping-stones to climb up to reach the summit of HR at the
end of my career.

55

BIBLIOGRAPHY

ORGANISATION BEHAVIOR:STEPHEN P. ROBBINS

PERSONAL MANAGEMENT:EDWIN B.HIPPO
RESEARCH METHODOLOGY:R.C.KOTHARI
PRINCIPLE AND PRACTICE OF MANAGEMENT:L.M.PRASAD
MANAGEMENT OF SIG:PERSONAL MANUAL OF SIG

WEBSITES VISITED:
www.samiahnet.com
www.reserchchroline.com
www.citehr.com
www.scribd.com
www.slideshara.com
www.bing.com
MAGAZINES:
BUSINESS WORLD
ECONOMIC TIMES

56

APPENDIX
QUESTIONNAIRE FOR EXECUTIVES
1. Department Name: ______________________
Name :

______________________

Designation :

______________________

Qualification:

______________________

Date of Joining Department: ______________________

Q1:

Do you think that Performance Appraisal is essential for the employees of the
company?

Q2:

a)

Fully

b)

Partially

c)

Not at all

Performance appraisal has been described as the responsibility, which is not

liked by the superiors. Do you think so?
a)

Yes

b)

Partially

c)

Not at all

Q3: Do you agree that self-appraisal prior to performance appraisal facilitates you to
get high ratings
a)

Completely

b)

Partially

c)

Not at all

Q4: Does your supervisor give you effective feedback on a regular basis?
a)

Yes

b)

Depend on the employees

57

c)
Q5:

Not at all

Do you think that performance appraisal is the tool that improves employees
performance level?
a)

To a great extent

b)

To some extent

c)

Not at all

Q6: Are you capable of achieving the goals set for you?

Q7:

a)

Consistently

b)

Occasionally

c)

Never

To what extent is the Majestic Seats india pvt.Ltd. smaking progress towards its

mission and goals?

Q8:

a)

To a great extent

b)

To some extent

c)

No opinion

Do you get merit raise when the performance evaluation indicates that you are
meeting the set standard on the job?

Q9:

a)

To a great extent

b)

To some extent

c)

Not at all

Do your co-workers and superiors help you to cope up from your poor
performance?

Q10:

a)

To a great extent

b)

To some extent

c)

Not at all

In your opinion to what extent the superiors responsible for the progress of

Majestic Seats india pvt.Ltd.

a)

To a great extent

b)

To some extent

c)

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Not at all

59