PROJECT REPORT

On

STUDY ON PERFORMANCE APPRAISAL

At

IFB AUTOMATIVE PRIVATE LIMITED

BY

NANDINI H S

1NH20BA092

Submitted to

DEPARTMENT OF MANAGEMENT STUDIES

NEW HORIZON COLLEGE OF ENGINEERING,

OUTER RING ROAD, MARATHALLI,

BENGALURU

In partial fulfilment of the requirements for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

Ms. SAUMI ROY

Asst. Professor

2020-2022

DEPARTMENT OF MANAGEMENT STUDIES

CERTIFICATE

This is to certify that Nandini H S bearing USN 1NH20BA092 (2020-22 batch), is a bonafide

student of Master of Business Administration, New Horizon College of Engineering, Bengaluru

affiliated to Visvesvaraya Technological University, Belagavi.

Project report on A study on Performance Appraisal at IFB Automative private limited is prepared

by him/her under the guidance of Ms.Saumi Roy, in partial fulfillment of the requirements for

the award of the degree of Master of Business Administration of Visveswaraya Technological

University, Belagavi, Karnataka.

Signature of Internal Guide Signature of HOD Principal

Name of the Examiners with affiliation: Signatures with date

1. External Examiner

2. Internal Examiner

CERTIFICATE OF COMPLETION

This is to certify that Ms.NANDHINl H S, a student of Master of Business

Administration program at “new horizon college of engineering" bearing Roll

No:1NH20BA092 has successfully completed a project in HR Department on the

topic °STUDY ON PERFORMANCE APPRAISAL AT IFB AUTOMOTIVE

PRNATE LIMITED” for the duration of two months.

This project has taught pl8ctical implications of the above topic and we found her

to be sincere, punctual, inquisitiv,e -during her entire project. We believe this

practical exposure of Ms‹I?ANDHINl, H S, at our oqanisation will give her a lead

in her upcoming career ahd future, ”of/her greater•opportunIties.

We wish her ail success ahd good l5ck in her upcoming pursuits.

Head HR

IFB Automotive Private Limited

#Doddanekkundi Industrial Area2, phase1,

BengaIuru,Karnataka- 560048

dy

DECLARATION

I, Nandini H S hereby declare that the project report at “IFB AUTOMATIVE PRIVATE

LIMITED” prepared by me under the guidance of Ms. Saumi Roy, faculty of M.B.A

Department, New Horizon College of Engineering.

I also declare that this project report is towards the partial fulfillment of the university

regulations for the award of the degree of Master of Business Administration by

Visvesvaraya Technological University, Belgaum.

I declare that this report is based on the original study undertaken by me and has not been

submitted for the award of a degree/diploma from any other University / Institution.

Signature of Student Nandini H S

Place: Bangalore

ACKNOWLEDGEMENT The successful completion of the project report would not have been possible without the

guidance and support of many people. I express my sincere gratitude Bhargavi redday,Head

HR, for giving me an opportunity to do this Project report.

I am thankful to my internal guide Ms. Saumi Roy, for her constant support and inspiration

and invaluable suggestions, guidance and also for providing valuable information.

Finally, I express my gratitude towards my parents and family for their continuous support

during the study.

Name Nandini H S

USN 1NH20BA092

TABLE OF CONTENTS

SL. NUMBER CONTENTS PAGE NUMBERS

1 Introduction

2 Research methodology

3 Industry profile

4 Theoretical background

5 Data Analysis and

interpretation

6 Findings and conclusion

7 Bibliography

CHAPTER 1

INTRODUCTION

Performance appraisal is a method of assessing the behaviour and performance of an employee

or group of employees at the workplace. The appraisal system includes both qualitative and

quantitative aspects of job performance. It is also referred as performance rating, performance

evaluation, employee assessment, performance review, merit rating, etc. In other words,

performance appraisal method is a systematic process that evaluates an individual employee’s

performance in terms of his productivity with respect to the pre-determined goals and objectives

set by the organization. The appraisal system mostly happens annually, which gives an

opportunity to the employees working in that particular organization to reflect on the duties that

were dispatched by him. It not only involves receiving feedback regarding their performance but

also evaluates an individual’s attitude, personality, behavior, and stability in his job profile.

There are various applications of appraisals like compensation, performance

improvement, promotion, termination, test validation, etc. There are various methods of

performance appraisal which differ from one organisation to another. Appraisals facilitate

communication between the management and their employee which also helps in conveying the

expectations of the management to the employee and vice versa. The frequency of appraisals

also varies in different organizations where most of the multinational companies (MNC’s) offer

them annually, some opt for shorter cycles like half yearly, quarterly, or even monthly if the

employees perform exceptionally at his/her job. In case of startups, it has been observed that

shorter cycles of performance appraisal are preferred so that they can motivate their

employees more frequently to perform better in the organization.

The criteria for performance appraisal methods are based on various aspects like

productivity, quality of work, duration of service and training. Productivity in the manufacturing

concerns is measured mostly in the case of manufacturing i.e. the number of units manufactured

or delivered by the employee. Performance Appraisal is carried out to identify the various

abilities and competencies of an employee for future growth and development. It is aimed at

ascertaining the worth of the employee to the organization, in which he/she works.

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Performance Appraisal is defined as a systematic process, in which the personality and

performance of an employee is assessed by the supervisor or manager, against predefined

standards, such as knowledge of the job, quality and quantity of output, leadership abilities,

attitude towards work, attendance, cooperation, judgment, versatility, health, initiative and so

forth. The objectives of performance appraisal system are as follows:

To help the employees, on the basis of their performance and competence in the

organization.

To identify the need for training and developmental programs of employees.

To provide confirmation/acceptance to those employees who are hired as probationary

employees, upon completion of the term.

To take decisions regarding the hike in employees pay, incentives, bonus, recognition,

etc.

To facilitate proper communication between superior and their subordinates.

To help employees in understanding where they stand in terms of one’s own performance

in the organization.

Data obtained from the appraisal of performance, are documented for future reference by

the organization.

PERFORMANCE APPRAISAL PROCESS:

Performance appraisal process is planned, developed and implemented through a series of steps.

Each step in the process is crucial and is arranged logically. Many organizations make every

effort to approximate the ideal process, resulting in first-rate appraisal systems. Unfortunately,

many others fail to consider one or more of the steps and, therefore, have less-effective appraisal

system.

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Measure Actual Performance

Communicate the Standards

Establish Performance Standards

Establish performance standards:

Appraisal systems require performance standards, which serves as benchmarks against which

performance is measured. To be useful, standards should relate to the desired results of each job.

The performance standards or goals must be developed after a thorough analysis of the job.

Goals must be written down. Just talking about them is not enough. They must be measurable

within certain time and cost considerations.

Communicate the Standards:

Performance appraisal involves at least two parties; the appraiser and who does the appraisal

and the appraisee whose performance is being evaluated. Both are expected to do certain things.

The appraiser should prepare job description clearly’ help the appraisee set his goals and targets,

analyzes results objectively, offer coaching and guidance to the appraisee whenever required and

reward good results. The appraisee should be very clear about what he is doing it. For the

purpose performance standards must be communicated to appraisee and their reactions should be

noted right away. These standards must be revised or modified.

Measure Actual Performance:

After the performance standards are set and accepted, the next step is to measure actual

performance. This requires the use of dependable performance measures, the ratings used to

evaluate performance. Performance measures to be helpful must be easy to use, reliable, and

report on the critical behaviors that determine performance. Four common sources of

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Taking Corrective Actions, if necessary

Communicate Actual Performance with Standards and Discuss

the Appraisal

information which are generally used by managers regarding how to measure actual performance

are personal observations, statistical reports, oral reports, and written reports.

Compare actual performance with standards and discuss the appraisal:

Actual performance may be better than expected and sometimes it may go off the track.

Whatever be the consequences, there is a way to communicate and discuss the final outcome.

Taking corrective actions, if necessary; Corrective actions are of two types: one puts the fires

immediately, while the other destroys the root of the problem permanently. Immediate action

sets things right and get things back on track whereas the basic corrective action gets to the

source of deviations and seeks to adjust the difference permanently. Basic corrective steps seek

to find out how and why performance deviates.

Taking Corrective Actions, if necessary:

When a gap is found between the actual level and expected level of performance, corrective

actions should be undertaken. By analyzing the reason for a gap, proper action should be taken

so that the gap is bridged. When the actual and the standard performance match, there is no need

for any corrective action to be taken.

METHODS OF PERFORMANCE APPRAISAL:

Each method of performance appraisal has its strengths and weaknesses may be suitable

for one organisation and non-suitable for another one. As such, there is no single appraisal

method accepted and used by all organizations to measure their employees’ performance. All the

methods of appraisal devised so far have been classified differently by different authors. While

DeCenzo and Robbins have classified appraisal methods into three categories: absolute methods,

relative methods and objective methods; Aswathappa has classified these into two categories

past-oriented and future-oriented. Michael R Carrel et. al. have classified all appraisal methods

into as many as six categories: rating scales, comparative methods, critical incidents, essay,

MBO and combination methods. Rock and Levis” have classified the methods into two broad

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categories: narrow interpretation and broad interpretation. Beatty and Schneier have categorized

various methods of appraisal into four groups: comparative methods, absolute methods, goal

setting, and direct indices.

A more widely used classification of appraisal methods into two categories, viz.,

traditional methods and modern methods, is given by Strauss and Sayles”. While traditional

methods lay emphasis on the rating of the individual’s personality traits, such as initiative,

dependability, drive creativity, integrity, intelligence, leadership potential, etc.; the modem

methods, on the other hand, place more emphasis on the evaluation of work results, i.e., job

achievements than the personal traits! Modern methods tend to be more objective and

worthwhile.

TRADITIONAL METHODS:

Ranking Method:

It is the oldest and simplest formal systematic method of performance appraisal in which

employee is compared with all others for the purpose of placing order of worth. The employees

are ranked from the highest to the lowest or from the best to the worst.

In doing this the employee who is the highest on the characteristic being measured and

also the one who is L lowest, are indicated. Then, the next highest and the next lowest between

next highest and lowest until all the employees to be rated have been ranked. Thus, if there are

ten employees to be appraised, there will be ten ranks from 1 to 10.

However, the greatest limitations of this appraisal method are:

It does not tell that how much better or worse one is than another

The task of ranking individuals is difficult when a large number of employees are related,

and

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It is very difficult to compare one individual with others having varying behavioral traits.

To remedy these defects, the paired comparison method of performance appraisal has

been evolved.

Paired comparison method:

In this method, each employee is compared with other employee in the organization on

one-on-one basis, usually based on one trait only. The rater is provided with a bunch of slips

each coining pair of names, the rater puts a tick mark against the employee whom he thinks is the

best amongst the two. The number of times this employee is compared with others determines

his or her final ranking in the organization.

The number of pairs for a given number of employees is ascertained by the following formula:

N (N-1)/2

Where, n= total number of employees considered to be evaluated.

Thus, the pairs so ascertained give the maximum possible permutations and combinations. The

number of times a worker is considered better makes his/her score. Such scores are determined

for each worker and he/she is ranked according to his/her score. One obvious disadvantage of

this method is that the method can become unwieldy when large numbers of employees are being

compared.

Grading Method:

In this method, certain categories of grades are established in advance and carefully

defined. There can be three categories established for each employee: outstanding, satisfactory

and unsatisfactory. There can be more than three grades. Employee performance is compared

with grade definitions. The employee is, then, allotted with the grade that best describes his or

her performance.

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Such type of grading is done is semester pattern of examinations and in the selection of a

candidate in the public service sector. One of the major drawbacks of this method is that the rater

may rate most of the employees on the higher side of their performance.

Forced Distribution Method:

This method was evolved by Tiffen to eliminate the central tendency of rating most of the

employees at a higher end of the scale. The method assumes that employees’ performance level

confirms to a normal statistical distribution i.e., 10,20,40,20 and 10 per cent. This is useful for

rating a large number of employees’ job performance and promo ability. It tends to eliminate or

reduce bias.

It is also highly simple to understand and easy to apply in appraising the performance of

employees in the organizations. It suffer from the drawback that improve similarly, no single

grade would rise in a ratings.

Forced-Choice Method:

The forced-choice method is developed by J. P. Guilford. It contains a series of groups of

statements, and rater rates how effectively a statement describes each individual being evaluated.

Common method of forced-choice method contains two statements, both positive and negative.

Examples of positive statements are:

Gives good and clear instructions to the subordinates.

Can be depended upon to complete any job assigned.

A pair of negative statements may be as follows:

Makes promises beyond his limit to keep these.

Inclines to favor some employees.

Each statement carries a score or weight, which is not made known to the rater. The human

resource section does rating for all sets of statements— both positive and negative. The final

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rating is done on the basis of all sets of statements. Thus, employee rating in this manner makes

the method more objective. The only problem associated with this method is that the actual

constructing of several evaluative statements also called ‘forced-choice scales’, takes a lot of

time and effort.

Check-List Method:

The basic purpose of utilizing check-list method is to ease the evaluation burden upon the

rater. In this method, a series of statements, i.e., questions with their answers in ‘yes’ or ‘no’ are

prepared by the HR department. The check-list is, then, presented to the rater to tick appropriate

answers relevant to the appraisee. Each question carries a weight-age in relationship to their

importance. When the check-list is completed, it is sent to the HR department to prepare the final

scores for all appraises based on all questions. While preparing questions an attempt is made to

determine the degree of consistency of the rater by asking the same question twice but in a

different manner.

However, one of the disadvantages of the check-list method is that it is difficult to

assemble, analyze and weigh a number of statements about employee characteristics and

contributions From a cost stand point also, this method may be inefficient particularly if there are

a number of job categories in the organisation, because a check-list of questions must be

prepared for each category of job. It will involve a lot of money, time and efforts.

Critical Incidents Method:

In this method, the rater focuses his or her attention on those key or critical behaviors that

make the difference between performing a job in a noteworthy manner (effectively or

ineffectively). There are three steps involved in appraising employees using this method.

First, a list of noteworthy (good or bad) on-the-job behaviour of specific incidents is

prepared. Second, a group of experts then assigns weightage or score to these incidents,

depending upon their degree of desirability to perform a job. Third, finally a check-list indicating

incidents that describe workers as “good” or “bad” is constructed. Then, the check-list is given to

the rater for evaluating the workers. The basic idea behind this rating is to apprise the workers

8

who can perform their jobs effectively in critical situations. This is so because most people work

alike in normal situation. The strength of critical incident method is that it focuses on behaviors

and, thus, judge’s performance rather than personalities.

Its drawbacks are to regularly write down the critical incidents which become time-

consuming and burdensome for evaluators, i.e., managers. Generally, negative incidents are

positive ones. It is rater’s inference that determines which incidents are critical to job

performance. Hence, the method is subject to all the limitations relating to subjective judgments.

Graphic Rating Scale Method:

The graphic rating scale is one of the most popular and simplest techniques for appraising

performance. It is also known as linear rating scale. In this method, the printed appraisal form is

used to appraise each employee.

The form lists traits (such as quality and reliability) and a range of job performance

characteristics (from unsatisfactory to outstanding) for each trait. The rating is done on the basis

of points on the continuum. The common practice is to follow five points scale. The rater rates

each appraisee by checking the score that best describes his or her performance for each trait all

assigned values for the traits are then totaled.

This method is good for measuring various job behaviors of an employee. However, it is

also subjected to rater’s bias while rating employee’s behaviour at job. Occurrence of ambiguity

in design- mg the graphic scale results in bias in appraising employee’s performance.

Essay Method:

Essay method is the simplest one among various appraisal methods available. In this

method, the rater writes a narrative description on an employee’s strengths, weaknesses, past

performance, potential and suggestions for improvement. Its positive point is that it is simple in

use. It does not require complex formats and extensive/specific training to complete it.

However, essay method, like other methods, is not free from drawbacks. In the absence

of any prescribed structure, the essays are likely to vary widely in terms of length and content.

9

And, of course, the quality of appraisal depends more upon rater’s writing skill than the

appraiser’s actual level of performance.

Moreover, because the essays are descriptive, the method provides only qualitative

information about the employee. In the absence of quantitative data, the evaluation suffers from

subjectivity problem. Nonetheless, the essay method is a good start and is beneficial also if used

in conjunction with other appraisal methods.

Field Review Method:

When there is a reason to suspect rater’s biasness or his or her rating appears to be quite

higher than others, these are neutralized with the help of a review process. The review process is

usually conducted by the personnel officer in the HR department.

The review process involves the following activities:

Identify areas of inter-rater disagreement.

Help the group arrive at a consensus.

Ensure that each rater conceives of the standard similarity.

However, the process is a time-consuming one. The supervisors generally resent what they

consider the staff interference. Hence, the method is not widely used.

Confidential Report:

It is the traditional way of appraising employees mainly in the Government Departments.

Evaluation is made by the immediate boss or supervisor for giving effect to promotion and

transfer. Usually a structured format is devised to collect information on employee’s strength

weakness, intelligence, attitude, character, attendance, discipline, etc. report.

10

Modern Methods:

Management by Objectives (MBO):

Most of the traditional methods of performance appraisal are subject to the antagonistic

judgments of the raters. It was to overcome this problem; Peter F. Drucker propounded a new

concept, namely, management by objectives (MBO) way back in 1954 in his book “The Practice

of management”. The concept of MBO as was conceived by Drucker, can be described as a

“process whereby the superior and subordinate managers of an organization jointly identify its

common goals, define each individual’s major areas of responsibility in terms of results expected

of him and use these measures as guides for operating the unit and assessing the contribution of

each its members”.

In other words, stripped to its essentials, MBO requires the manager to goals with each

employee and then periodically discuss his or her progress toward these goals. In fact, MBO is

not only a method of performance evaluation. It is viewed by the Practicing managers and

pedagogues as a philosophy of managerial practice because .t .s a method by wh.ch managers

and subordinates plan, organize, communicate, control and debate.

An MBO programme consists of four main steps: goal setting, performance standard,

comparison, and periodic review. In goal-setting, goals are set which each individual, s to attain.

The superior and subordinate jointly establish these goals. The goals refer to the desired outcome

to be achieved by each individual employee. In performance standards, the standards are set for

the employees as per the previously arranged time period. When the employees start performing

their jobs, they come to know what is to be done, what has been done, and what remains to be

done.

In the third step the actual level of goals attained are compared with the goals agreed

upon. This enables the evaluator to find out the reasons variation between the actual and standard

performance of the employees. Such a comparison helps devise training needs for increasing

employee’s performance it can also explore the conditions having their bearings on employee’s

performance but over which the employees have no control. Finally, in the periodic review step,

corrective measure is initiated when actual performance deviates from the slandered established

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in the first step-goal-setting stage. Consistent with the MBO philosophy periodic progress

reviews are conducted in a constructive rather than punitive manner. The purpose of conducting

reviews is not to degrade the performer but to aid in his/her future performance. From a

motivational point of view, this would be representative of McGregor’s theories.

Limitation of MBO:

As with other methods, it also suffers from some limitations as mentioned below:

Setting Un-measurable Objectives:

One of the problems MBO suffers from is unclear and un-measurable objectives set for

attainment. An objective such as “will do a better job of training” is useless as it is un-

measurable. Instead, “well have four subordinates promoted during the year” is a clear and

measurable objective.

Time-consuming:

The activities involved in an MBO programme such as setting goals, measuring progress, and

providing feedback can take a great deal of time.

Tug of War:

Setting objectives with the subordinates sometimes turns into a tug of war in the sense that

the manager pushes for higher quotas and the subordinates push for lower ones. As such, goals

so set are likely to be unrealistic.

Lack of Trust:

MBO is likely to be ineffective in an environment where management has little trust in its

employees. Or say, management makes decisions autocratically and relies heavily on external

controls.

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Behaviorally Anchored Rating Scales (BARS):

The problem of judgmental performance evaluation inherent in the traditional methods of

performance evaluation led to some organizations to go for objective evaluation by developing a

technique known as “Behaviorally Anchored Rating Scales (BARS)” around 1960s. BARS are

descriptions of various degrees of behaviour with regard to a specific performance dimension.

It combines the benefits of narratives, critical incidents, and quantified ratings by

anchoring a quantified scale with specific behavioral examples of good or poor performance. The

proponents of BARS claim that it offers better and more equitable appraisals than do the other

techniques of performance appraisal we discussed so far.

Developing BARS typically involves five steps:

Generating Critical Incidents:

Critical incidents (or say, behaviors) are those which are essential for the performance of the

job effectively Persons who are knowledgeable of the job in question (jobholders and/or

supervisors) are asked to describe specific critical incidents of effective and ineffective

performance. These critical incidents may be described in a few short sentences or phrases using

the terminology.

Developing Performance Dimensions:

The critical incidents are then clustered into a smaller set of performance dimensions, usually

five to ten. Each cluster, or say, dimension is then defined.

Reallocating Incidents:

Various critical incidents are reallocated dimensions by another group of people who also

know the job in question. Various critical incidents so reallocated to original dimensions are

clustered into various categories, with each cluster showing similar critical incidents. Those

critical incidents are retained which meet 50 to 80% of agreement with the cluster as classified in

step 2.

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Scaling Incidents:

The same second group as in step 3 rates the behaviour described in each incident in terms of

effectiveness or ineffectiveness on the appropriate dimension by using seven to nine points scale.

Then, average effectiveness ratings for each incident are determined to decide which incidents

will be included in the final anchored scales.

Developing Final BARS Instrument:

A subset of the incidents (usually six or seven per cluster) is used as a behavioral anchor for

the final performance dimensions. Finally, a BARS instrument with vertical scales is drawn to be

used for performance appraisal. BARS method of performance appraisal is considered better

than the traditional ones because it provides advantages like a more accurate gauge, clearer

standards, better feedback, and consistency in evaluation. However, BARS is not free from

limitations.

The research on BARS indicates that it too suffers from distortions inherent in most rating

scales. The research study concluded that “it is clear that research on BARS to date does not

support the high promise regarding scale independence In short, while BARS may outperform

conventional rating techniques, it is clear that they are not a panacea for obtaining high inter rater

reliability”

Assessment Centre’s:

The introduction of the concept of assessment centre’s as a method of performance

method is traced back in 1930s in the Germany used to appraise its army officers. The concept

gradually spread to the US and the UK in 1940s and to the Britain in 1960s. The concept, then,

traversed from the army to business arena during 1960s. The concept of assessment centre is, of

course, of a recent origin in India. In India, Crompton Greaves, Eicher, Hindustan Lever and

Modi Xerox have adopted this technique of performance evaluation.

In business field, assessment centre’s are mainly used for evaluating executive or

supervisory potential. By definition, an assessment centre is a central location where managers

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come together to participate in well-designed simulated exercises. They are assessed by senior

managers supplemented by the psychologists and the HR specialists for 2-3 days.

Assessee is asked to participate in in-basket exercises, work groups, simulations, and role

playing which are essential for successful performance of actual job. Having recorded the

assessee’s behaviour the raters meet to discuss their pooled information and observations and,

based on it, they give their assessment about the assessee. At the end of the process, feedback in

terms of strengths and weaknesses is also provided to the assessee.

The distinct advantages the assessment centre’s provide include more accurate

evaluation, minimum biasness, right selection and promotion of executives, and so on.

Nonetheless, the technique of assessment centre’s is also plagued by certain limitations and

problems. The technique is relatively costly and time consuming, causes suffocation to the solid

performers, discourages to the poor performers (rejected), breeds unhealthy competition among

the assesses, and bears adverse effects on those not selected for assessment.

360 – Degree Appraisal:

Yet another method used to appraise the employee’s performance is 360 – degree

appraisal. This method was first developed and formally used by General Electric Company of

USA in 1992. Then, it travelled to other countries including India. In India, companies like

Reliance Industries, Wipro Corporation, Infosys Technologies, Thermax, Thomas Cook etc.,

have been using this method for appraising the performance of their employees. This feedback

based method is generally used for ascertaining training and development requirements, rather

than for pay increases. Under 360 – degree appraisal, performance information such as

employee’s skills, abilities and behaviors, is collected “all around” an employee, i.e., from

his/her supervisors, subordinates, peers and even customers and clients.

In other worlds, in 360-degree feedback appraisal system, an employee is appraised by

his supervisor, subordinates, peers, and customers with whom he interacts in the course of his job

performance. All these appraisers provide information or feedback on an employee by

completing survey questionnaires designed for this purpose. All information so gathered is then

compiled through the computerized system to prepare individualized reports. These reports are

15

presented to me employees being rated. They then meet me appraiser—be it one’s superior,

subordinates or peers—and share the information they feel as pertinent and useful for developing

a self-improvement plan.

In 360 – degree feedback, performance appraisal being based on feedback “all around”,

an employee is likely to be more correct and realistic. Nonetheless, like other traditional

methods, this method is also subject to suffer from the subjectivity on the part of the appraiser.

For example, while supervisor may penalize the employee by providing negative feedback, a

peer, being influenced by ‘give and take feeling’ maygive a rave review on his/her colleague.

Cost Accounting Method:

This method evaluates an employee’s performance from the monetary benefits the

employee yields to his/her organisation. This is ascertained by establishing a relationship

between the costs involved in retaining the employee, and the benefits an organisation derives

from him/her.

While evaluating an employee’s performance under this method, the following factors are

also taken into consideration:

Unit wise average value of production or service.

Quality of product produced or service rendered.

Overhead cost incurred.

Accidents, damages, errors, spoilage, wastage caused through unusual wear and tear.

Human relationship with others.

Cost of the time supervisor spent in appraising the employee.

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IFB INDUSTRIES PVT LTD – INDIAN FINE BLANK

IFB INDUSTRIES PVT LTD was established by MR.BIJON NAG in 1974 in kolkata to pioneer in India the

manufacture of fine blanking automotive components.

OBJECTIVES

To excel in customer satisfaction

To be a leader in the chosen business segment – auto, home appliances and agro

To be a global player

Quality in everything we do

IFB INDUSTRIES PVT LTD - MILESTONES

1. IFB INDUSTRIES PVT LTD industries - 1st factory in KOLKATA in 1974

Main products - Fine blanking components

2. IFB INDUSTRIES PVT LTD industries - 2nd factory in Bangalore

Main products - Fine blanking components and automotive sub assys

3. IFB INDUSTRIES PVT LTD Home Appliances – 3rd and 4th factory in Goa and Govardan (1990)

Main products – Washing machine, Dish washer, Microwave oven

4. IFB AUTOMOTIVE Pvt. Ltd. – 5th factory in Bangalore (1989)

Main products – Seating mechanisms, automotive motors and latches

5. IFB AUTOMOTIVE R&D Center – Bangalore (2002)

(Drawing and development of models)

6. IFB INDUSTRIES PVT LTD AGRO – Noorpur (1987)

Main products – Alcohol

IFB INDUSTRIES PVT LTD OVERVIEW (NO. 1)

IFB INDUSTRIES PVT LTD industries (Home appliances) - in India for front load washing

machines

IFB AUTOMOTIVE s – in India for seating mechanisms and window regulators

IFB INDUSTRIES PVT LTD AGRO – Largest producer of alcohol (Vodka, Whisky) in eastern India

(Assam, Orissa)

IFB INDUSTRIES PVT LTD industries (Fine blanking) – Largest Fine blanking company in Asia

17

IFB INDUSTRIES PVT LTD GROUP OVERVIEW

GROUP SALES – Rs. 1200 Crores

No. of Employees – 3500

IFB INDUSTRIES PVT LTD - Home Appliances

Annual sales – Rs. 250 Crores

No. of employees – 400

IFB INDUSTRIES PVT LTD – Industries (Fine blanking)

Annual sales – Rs. 70 Crores

No. of employees – 400

IFB INDUSTRIES PVT LTD – Automotive Pvt. Ltd

Annual sales – Rs. 450 Crores

No. of employees –1250

(Contact Employees – 800, Office Workers – 450)

New Business Initiatives

Launderette

Operation – 6 in Bangalore and 5 in kerala

Modular kitchen (chimney)

First deal of 500 nos. was done with kolkata builder.

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IFB AUTOMOTIVE PVT.LTD.

INTRODUCTION

IFB Automotive Pvt. Ltd. BANGALORE branch was established in 1989 at No.36, Vishweshwraiah

Industrial Estate, Whitefield Off, Mahadevapura, Bangalore - 560038. Is a pioneer in design and

manufacture of seating systems, door systems and automotive motors. The company has built a reputation as a leading technology provider for safety critical and comfort related products in the automotive sector. To

meet the growing needs of the auto industry, IFB AUTOMOTIVE has spread its manufacturing base in

different parts of India to ensure Just-In-Time supplies to all the customers.

The state of art Research and Development centre of IFB AUTOMOTIVE has the capability to develop new

products responding to the diverse needs of its domestic and international customers.

BRIEF HISTORY

IFB industries ltd, originally known as Indian Fine Blanking limited started operations in India during 1974 in collaboration with Heinrich Schmid AG Switzerland.

IFB APL is promoted by IFB industries ltd who is pioneers and leaders in the manufacture and

supply of fine blanking components to all the automobile manufacture, apart from imported fine

blanking presses for manufacture of auto components. The entry of Suzuki of Japan into the

automobile scene in India gave an opportunity for the enterprising ones. Therefore IFB APL was a

natural diversification into automobiles sub assemblers. This company has been a pioneer in design,

development and manufacture of automotive seating mechanisms since 1989. Started as a joint

venture with RHW of Germany; it became a subsidiary of IFB INDUSTRIES PVT LTD industries

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in 1997 when the principles changed hands in 1995. Later it became a subsidiary of IFB INDUSTRIES PVT LTD Agro industries, a public limited company and hence IFB APL was a

deemed public company and now it is a private limited company.

Operating in the backdrop of tough global competition, IFB AUTOMOTIVE strives to meet the highest quality demands of national and international regulatory bodies as well as stringent customer specific

requirements.

Branches of IFB APL:

GURGAON

BINOLA

BANGALORE

RUDRAPUR

PUNE

Quality Credentials:

Customer trust in IFB AUTOMOTIVE’s brand, end user safety and total reliability for all stakeholders associated with the company are at the core of IFB AUTOMOTIVE’s quality policy. High quality, stable,

cost-effective products manufactured through meticulous production planning, production methodologies

and production engineering adhere to company’s self-imposed stringent product quality targets.

The company’s superb quality assurance record exceeds the international benchmark of 100 defective parts per million (PPM) shipped to OEMs and targets the ambitious 0 defect goal in near future.

IFB AUTOMOTIVE’s relentless pursuit of quality and strict adherence to procedures has earned for it:

1998: ISO 9000

2000: QS 9000

2003: ISO 14001

2003: TS 16949

2004: 100 PPM

Achievements/Awards:

QS-9000

MS-9000

ISO/TS 16949 QMS certificate

ISO/TS 14001 EMS certificate

Q1-FORD

Achieve 100ppm from HMIL

VISION

To be the vehicle manufacturer’s first choice for safety and comfort related products through innovation and

quality excellence.

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MISSION

The mission is to create and deliver high quality and innovative products that will contribute to the customer’s

success and deliver value to shareholders. The organization shall provide complete solutions through the

system capabilities in design, analysis, development, testing and validation.

POLICIES

Material Policy

To visualize customer needs and provide satisfaction through prompt supply of products.

To continuously improve the delivery performance through use of appropriate technique/service, cost

effective operations and team work of all associates.

To maintain safe work environment.

Quality Policy

To have world class human resources through training and motivating them for higher aspirations.

Environment Policy

IFB APLsupplying automotive systems is committed to environmental preservation and social responsibility

by:

Optimum utilization of natural resources and energy.

Adhering to statutory and applicable legal and other requirements.

Awareness on EMS to employees and associates.

Monitoring and continuous improvement of environmental aspects.

Safety Policy

To ensure clean and safe environment for Men, Machine and Material through appropriate training and

awareness program on prevention of accidents and continuous improvement in the area.

Milestones

1989: IFB AUTOMOTIVE Seating & systems, Bangalore established

1989: launched SEAT RECLINER

1995: launched SEAT SLIDER

1995: launched WINDOW REGULATOR

1999: launched BLOWER MOTOR

2000: launched RADIATOR & CONDENSOR MOTOR

2003: R & D Centre, Bangalore established

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2004: launched ANTI PINCH REGULATOR

2004: launched DOOR MODULE

2005: launched HIGH STRENGTH RECLINER & SLIDER

General Guidelines

Lateness: Habitual late coming is subject to disciplinary procedure. All employees are expected to be

in their place of work ready at least five minutes prior to the starting time.

Public Holidays: National and Festival paid holidays in a year in a calendar year will be 12 days as per the National & Festival Holidays Act. The lists of holidays are displayed in the notice board and printed in the calendar. The holidays are marked in RED in the calendar.

Payment: Salary will be paid on the before seventh day of the next month. For the payment

the employees are requested to open an account in BOI of white field branch so as to transfer

the salary to the employees bank account every month. Salary is not paid by cheque or by cash.

Method of Pay: payment will be made in cash/in bank account.

Induction: The Newly joined Employee will be received, welcomed and introduced to the job

and the organization through the process of Induction / Orientation.

Socialization: The New recruit will be made to understand and accept the values, norms and beliefs

held by others in the organization through Socialization.

Self-Discipline: It will be fair if we follow certain practice such as switching off the fans, lights, PC’s whenever not required / while leaving work place, which will in turn save power and cost, leave your

office furniture intact, as you would like to see, keep all papers inside drawers, leaving a clean office.

And also as far as possible use your computer and work towards a paperless office.

Attendance: The Company uses Time Tracker Software to update the working hours of the staff and

Finger Print Access Machine for the operators.

Health and Safety rules

• Keep your work area clean and tidy.

• Do not run on company property or take part any acts which may harm yourself or others.

• Report to your supervisor or safety committee representative any condition or practice you think may

cause injury to employees or damage to equipment.

• Only use, adjust, repair or move any equipment or machinery when authorized to do so by your

supervisor.

• The wearing of loose or unsuitable clothing and jeweler is not permitted while working near

machinery.

• Long hair is not permitted while working near machinery.

• Only fully enclosed footwear is to be worn.

• Obey all specific instructions, rules and signs.

• Employees are to acquaint themselves with fire alarm points, fire extinguishers and exits.

• Smoking is prohibited in Company premises.

• Personal hygiene is to be encouraged.

• Consumption of alcoholic beverages on the premises is not permitted at any time.

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Benefits

Employees Provident Funds:

• Every employee, who is in receipt of salary & wages, shall be eligible for becoming member under The Employees Provident Funds & Miscellaneous Provisions Act, 1952.

• The employer and employee shall be contributing 12% each on the consolidated salary. Out of 24%

contribution, 8.33% of employer’s contribution is remitted to the Pension fund.

Canteen Facility:

All employees in the company are provided meals on subsided rate.

Medical Benefits:

• Free medical treatment will be given in ESI hospitals and other hospitals as per reference by the ESI

hospital.

• Annual health checkup for all the employees on general health, eye sight, ear and throat each year.

Leave:

Earned leave of 1 day for every 20 days worked and medical leave as per ESI Act is applicable for all the employees.

Bonus:

Once in a year bonus will be distributed as per the Bonus act. Last year bonus distributed was 20% of the

salary.

Uniform and shoes:

4 pair of uniforms and a pair of shoes per year is provided at free of cost for all the employees.

Insurance:

Personal accident insurance – this insurance will be covered for the sum of Rs. 1lac from the company

for any unexpected incidents and is applicable for all the employees.

EDLI – Employee Deposit Linked Insurance is a part of statutory provided for all the employees.

Superannuation – this is an insurance provided when the employee dies due to some disease or accident before the retirement age. The sum amount is paid for the balance period of service.

Term life coverage – an insurance wherein the sum amount is paid for the balance period of service

when the employee dies accidentally.

Mediclaim – an insurance provided to the employee and his family i.e., wife and 2 children during

their hospitalization.

Gratuity:

Gratuity will be given for those employees who serve more than 5yrs in a company as per the Gratuity Act.

Loan:

Departments at IFB INDUSTRIES PVT LTD APL

The various departments at IFB APL are as follows:

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1. Supply Chain Management (purchase dept.)

2. Manufacturing department

3. Maintenance department

4. Quality control department

5. Finance department

6. Human Resource department

7. Marketing department

8. Administration department

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FUNCTIONS:

Preparing and releasing of purchase order

Scheduling

Ensuring timely availability of materials at suppliers place

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Daily collection plan to suppliers

Collection of materials as per daily collection plan

Preparation of GRN – Goods Receipt note

Storing and preserving of goods with identification

Issuing of materials as per MRS – Material Requisition Slip

Issue as per FIFO – First In First Out

Ensuring one day system fill for all the local parts at stores

Control of inventory

Disposal of rejected materials

Issuing of raw materials and parts to secondary suppliers

Issue of latest level (revised) drawings to suppliers

Recommendation for change of source

Monitoring suppliers performance

Ensuring one week system fill for all out station parts at stores

Cost reduction activities with supplier

MDA preparation

Management of clearing and forwarding agent for imported materials

Opening of LC

Issue of supplier rating to suppliers (once in a month for local and out station suppliers & once in 3

months for overseas suppliers)

Preparation of Delivery Documents

Delivery of finished goods.

Production planning

Production planning is the function concerned with planning, directing and controlling the methods to be used

to make products.

Steps followed for production planning:

The customer requirement plan is received in the last week of every month. The customer issues

confirming schedule for 1 month and tentative schedule for next 2 months.

Consolidation of all customer schedules is done.

Then it is circulated to the following departments i.e., production, materials, logistics, stores (SCM).

The monthly schedule is converted into daily plans for production and dispatch.

The monitored plan is compared with the achievement everyday and if there is any backlog found, it

will be made to overcome in the next day.

Any changes made in the customer schedule, the monthly plan is revised and above steps are repeated.

INVENTORY CONTROL

Inventory control is a planned approach of determining what to order and how much to order and how much to

stock so that costs associated with buying and storing are optimal without interrupting production and sales.

Inventory control basically deals with two problems:

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When should an order be placed? (order level)

How much should be ordered? (order quantity)

INTRODUCTION

Manufacturing industries

These industries are engaged with the conversion of raw materials or semi-finished goods into finished goods.

Manufacturing industries are classified into following 4 categories:

Analytical industries

Synthetic industries

Processing industries

Assembly industries

IFB APLis an assembly line industry wherein various components or spare parts already produced are

assembled to get a new product.

Manufacturing process (of raw materials required by IFB APLbefore entering into the industry)

Manufacturing process covers the entire process starting from metal extraction from ores until it is converted

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into a finished product as required. It involves a wide variety of operations. Manufacturing process can be

mainly classified as:

Primary Process

Secondary Process

PRIMARY PROCESS

It is the process of converting the metal extracted from ores into the final shape as required or a shape on which further operations can be carried out. The metal is heated and liquefied so that it can be poured into

moulds to obtain the required shape.

The various primary processes are:

1. forging

2. casting

3. moulding

SECONDARY PROCESS

It is the process of converting the metal blanks into the final shape required. It involves removal of material

from the blank by various operations. The final shape is obtained at the end of these processes.

The different secondary processes are:

1. forming

2. turning

3. drilling

4. boring

5. grinding

6. super finishing

The ORGANISATION STRUCTURE of manufacturing dept. in IFB APLis as follows:

SEATING SYSTEMS

DOOR SYSTEMS

AUTOMOTIVE MOTORS

LATCHES

Seating Systems

Seating systems division provides the complete solution in seating mechanisms. It has the capability to supply

both manual and power seating mechanisms which are compatible in nature. The mechanism is designed to

adjust basic functions such as, angle of seat backrest and liner movements of an entire seat and adjustment in

seat heights to supplement the comfort systems of a car. It enables the auto makers to offer their end users a

safe & comfort seating experience.

This division manufactures:

Seat recliners

Seat sliders

Seat latches etc.,

The child parts required to manufacture seat recliners for the Model – Chevrolet BEAT ; Co. code – M300

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Rivet, inner sector LH-finished, plate arm-LH, recliner cover MTG bracket, spring return-finished, spring

lever, lever release-LH (EDP coated), upper support BRKT LH, plain washer plated, upper part LH-finished, wave washer, inner sector LH-finished, cam plate LH-finished, guide plate-finished, lower part LH-finished,

shaft arm.

Production process:

Stage 1 – Plate arm assembly

Stage 2 – Manual Assembly Stage -1

Stage 3 – Manual Assembly Stage -2

Stage 4 – Plate holder sub assembly staking

Stage 5 – Spring Assembly of recliner sub assembly

Stage 6 – Torque checking of recliner sub assembly

Stage 7 – Center staking of recliner sub assembly

Stage 8 – Final Inspection and packing

OUTPUT/PRODUCTION – 140 recliners/hr. (Manual)

Door Systems

Doors are the second most complex system in a vehicle because they must combine aesthetics with high safety,

reliability and functionality by accommodating many intricate mechanisms in a small space.

IFB AUTOMOTIVE is the only automotive full service system supplier in India, with design and

manufacturing capability for window regulators, latches and door modules. Over the decade, the company has

acquired knowledge & skills in developing, unique, reliable & cost effective products for door systems. The

company is proudly associated with all the major OEMs (Original Equipment Manufacturer) and has been supplying Window regulators, door latches, hood & trunk lid latches.

Manual window regulator

Power window regulator

Door modules etc.,

The child parts required to manufacture Power window regulators for the Model – Indigo

Guide rail, roller pulley, roller rivet, base plate, drum cover, drum pulley, wire rope, lifting plate, rubber

stopper, motor screw, back plate screw, back plate.

Production process:

Stage 1 – roller riveting

Stage 2 – caulking

Stage 3 – winding and lifting plate insertion

Stage 4 – lifting plate and guide rail assembly

Stage 5 – motor fixing

Stage 6 – back plate fixing

Stage 7 – final testing i.e., apply grease and check for the

Movements

Stage 8 – parameters are checked.

OUTPUT/PRODUCTION – 90 regulators/ hr

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Automotive Motors

“Only Organization that manufactures four (4) motors”

The motor division was started in 1999 for manufacturing HVAC blower & condenser motors for air

conditioning, engine cooling fan motors for passenger car applications in India. At present IFB APLmanufactures 3 lakhs motors annually with a planned capacity of 1 million motors. The kinds of motors

being designed and developed by IFB INDUSTRIES PVT LTD include:

HVAC blower motors

Condenser motors

Wiper etc.,

Major parts of a radiator

Armature/Rotor

Stator (assembly line)

The child parts required to manufacture radiator motor for the Model – Indica vista

Armature child parts –

Rotor stack/lamination, end insulation, commutator, copper wire for winding purpose (diameter varies according to customer specification)

Production process:

Stage 1 – end insulation pressing

Stage 2 – commutator pressing

Stage 3 – rotor winding

Stage 4 – hot stacking/welding (enamel coating)

Stage 5 – 2nd pressing

Stage 6 – commutator turning (remove rough surface of commutator)

Stage 7 – run out checking

Stage 8 – balancing

Stage 9 – armature testing

Tests:

Joint – this test ensures proper hot stacking of the armatures

Coir and diagonal – these tests checks the proper no. of turns present and ensures that the laminations

are not discharged

Surge

High voltage – 500 volts PC

Rotor child parts –

Shell, ball bearing, bearing housing, magnet, magnet holding spring, end cover, dish spring, felt, bush bearing, brush plate, nylon washer, grommet and grommet cover, M5 screw (5mm diameter)

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Production process:

Stage 1 – shell and ball bearing assembly (bearing crimping)

Stage 2 – magnet pressing

Stage 3 – magnetization (induce magnet property in the magnetic material

Stage 4 – assembly (rotor pressing)

Stage 5 – brush plate assembly

Stage 6 – end cover (final assembly)

Stage 7 – the manufactured product is sent to the noise checking chamber which make sure to have a minimum decibel level of 55-60 DB as specified by the customer.

Performance testing:

Revolution Per Minute (RPM)

Current

*As per customer requirement

OUTPUT/PRODUCTION – 60 motors/ hr

LATCHES

A latch (locking system) is one of the most important components of a car. The categories in which the latches

produced are Manual, automatic and key less entry. The types of latches produced in IFB APLare –

Door latches

Hood latches

Door striker

The child parts required to manufacture door latches (LH) for the Model – Ashoka Leyland

Frame box LH, ALH release lever LH, STD shoulder stud, BTH outside operating lever LH, HUL spring

cartridge, SCF torsion spring AB-LH, outside operating lever clip, AVH outside locking lever LH, STD

shoulder stud (lock lever rivet), KIF over center spring LH, BTH inside release IB LH, STD shoulder stud IB, PUR bumper SH, PUR bumper DRF, housing, HUL bushing, SCF torsion spring DRF LH, catch over mould, STD shoulder stud DRF, SPK pawl LH, frame plate LH, pawl operating lever LH, SCF spring SPK LH, PUR

bumper lock lever, DTG sealing, inside release rod LH, inside lock rod LH, outside release rod LH.

Production process:

Stage 1 – outside operating lever riveting

Stage 2 – frame box inside operating lever riveting

Stage 3 – frame box outside operating lever riveting and sub assy

Stage 4 – pawl riveting

Stage 5 – housing sub assy

Stage 6 – housing sub assy riveting

Stage 7 - housing and frame box sub assy

Stage 8 – actuator fixing

Stage 9 – caulking

Stage 10 – lock laver assy

Stage 11 – BTH sealing

Stage 12 – final testing i.e., lock and unlock functional testing

Stage 13 – center locking

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Stage 14 – final inspection and packing

OUTPUT/PRODUCTION – 120/hr

The Organization has a systematic way of house keeping by following ‘5S’ and ‘3C’:

5S is a methodology that uses a list of five Japanese words. The list describes how items are stored and how

new order is maintained.

ELEMENTS of 5S –

SEIRI - SORT

SEITON - SET IN ORDER

SEISO - SPIC AND SPAN

SEIKESTSU - STANDARDISE

SHITSUKE - SUSTENANCE

SORT means Remove unnecessary items from the work place.

‘Done with the objective of saving and recovering space’

SET IN ORDER means systematic arrangement of required materials, which reduce the searching time of the

items.

SPIC AND SPAN means keeping everything swept and clean.

‘Done with the objective of inspecting for problems and taking faster corrective actions’

STANDARDISE means to create a consistent way of doing tasks and procedures.

SUSTENANCE means to make a habit of properly maintaining

correct procedures.

‘Done with the objective of achieving higher productivity and better quality through higher employee morale’

ELEMENTS of 3C –

CONSTANT LOCATION

CONSTANT CONTAINER

CONSTANT QUANTITY

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CONSTANT LOCATION - the materials in the work place are to be kept in specified location.

CONSTANT CONTAINER – the materials are to be kept in the specified container.

CONSTANT QUANTITY – the materials are to be kept in specified quantity i.e., the container should not be

overloaded.

POKA YOKE

Poka yoke is a Japanese term that means Mistake Proof Mechanism. A Poka yoke is any mechanism in a

manufacturing process that helps to avoid manual errors/mistakes. Its purpose is to eliminate product defects

by preventing, correcting or drawing attention to human errors as they occur.

Note: The operator has to ensure the working condition of ‘POKA-YOKE’ before starting the production.

SOP – Standard Operating Procedure

SOP is a document that mentions a specified way to carry out an activity or a process. It is also known as

“Working Standards”.

PRODUCT TRACEABILITY

Product traceability is the ability of the organization to refer all the details about any product (in case if

rejected by the customers) by just looking at its product code. The product code is generally ensured in the

following way:

12456B

12 – Year

45 – Week

6 – Day

B - Shift

Just-in-time manufacturing

Just-in-time technique is an inventory control tool which supplies the material, what is needed, when it is

needed and the amount needed. By JIT inventory can be controlled to optimized level.

IFB APLhas certain JIT commandments which are as follows:

Throw out traditional manufacturing methods.

Think of how the new method will work, not how it won’t work.

Don’t accept excuses.

Don’t seek perfection. A 50% implementation rate is fine as long as it is done on the spot.

Correct mistakes the moment they are done.

Don’t spend money on Kaikaku (Innovation).

Problems give you a chance to use your brain.

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Ten people’s ideas are better than one person’s knowledge.

Kaikaku knows no limits.

TPM – Total Productive Maintenance

TPM is a maintenance process developed for improving productivity by making processes more reliable and

less wasteful. TPM is an extension of TQM (Total Quality Management). The objective of TPM is to

maintain the plant or equipment in good condition without interfering with the daily process. To achieve this

objective, preventive and predictive maintenance is required. By following the philosophy of TPM we can minimize the unexpected failure of the equipment.

To implement TPM the production unit and maintenance unit should work jointly.

8 Pillars of TPM

Autonomous maintenance

Quality maintenance

Planned maintenance

Individual maintenance

Training people – develop

SHE – Safety Health and Environment

Early equip management

Office TPM

TIMINGS:

Bangalore office (Production area) works in three shifts. The timings are as follows:

• First Shift: 6.00 A. M. to 2.30 P.M. (with lunch break from 10 A.M.-11 A.M.)

• Second Shift: 2.30 P. M to 11.00 P.M (with lunch break from 7.30 A.M-8.30 A.M)

• Third Shift: 10.00 P.M. to 6.00 A.M.

Lunch break is only half an hour for every employee. Lunch timings are been extend in the interest of

employees. I.e., to avoid over crowd in the lunch room and have proper seating facility.

• Weekly off: Sunday.

MAINTENANCE DEPARTMENT

Maintenance is defined as the work of keeping something in proper condition, upkeep.

Maintenance dept. will handle general maintenance of plant, machinery, equipment etc., They involve breakdown maintenance, periodical maintenance.

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A good maintenance department should reflect the total maintenance activities required to be

undertaken by the various sections of the department. The functions and activities associated with the

maintenance department are as follows:

Identifying areas/systems for implementation of the preventive maintenance programme.

Making suitable arrangements for maintenance facilities for carrying out the maintenance work

properly.

Planning and scheduling the total maintenance work of the organization.

Ensure proper and timely supply of spare parts through an efficiently managed inventory control

system.

Carrying out standardization of maintenance work.

QUALITY CONTROL DEPARTMENT

INTRODUCTION:

Quality control is the systematic control of materials encountered in manufacturing process which affect the excellence of end product. It emphasizes testing of products to uncover defects and reporting to management

who make the decision to allow or deny product release.

FUNCTIONS:

There are 3 stages involved-

Incoming quality

Processing quality

Final inspection

In the incoming quality stage, as soon as the raw materials reaches the industry GRN is prepared the incoming

inspection team checks the quality if RM received. If satisfied with the quality and as per the PO they will

accept the RM after which it is handed over to the stores.

Process quality – in this stage, the quality team will inspect the production process so as to verify whether the

processing is as per the SOP.

Final inspection – before dispatching, the final products manufactured are verified and then give the clearance

for dispatch.

GLOBAL TESTING FACILITIES:

IFB AUTOMOTIVE believe that testing of products to national and international standards is very vital,

for conformance to quality, product development and; research and development’. At IFB AUTOMOTIVE

there is no compromise on quality for all its products. The components and products are put through rigorous testing at all levels, which, includes structural, dynamic life cycles, environment and metallurgical testing.

Superior and sophisticated measuring and recording instruments and gauges are used to facilitate the testing

provision of the Company.

Company has set up the state of the art global standard testing and validation facilities, which includes,

Performance and endurance testing systems for door regulators, automotive latches, seat sliders, seat

recliners and motors

Door slam test rig for latches and window regulators

Combined vibration and environmental chamber to test products at temperatures ranging between –65 and +180 degrees Celsius, along with vibrations measuring 1000 kg in humidity range of 10 - 95%

Seat anchorage test

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Arranging import substitutions of components, if necessary.

Implementing modifications and updating to the existing equipment, wherever possible.

Assisting the purchase department in procuring new machinery, construction work related to machines

and replacement of the parts of the equipment.

Disbursement of services such as, water, compressed air, steam, electricity and the like required for

maintenance functions.

Identification of obsolete and surplus equipment for replacement and disposal.

Training of maintenance personnel.

Ensuring safety of personnel and equipment.

Crash test

MAJOR CUSTOMERS of IFB INDUSTRIES PVT LTD APL

IFB AUTOMOTIVE believes that the most important issue for the customer is on-time delivery with

technical service. The application engineers constantly are in touch with the customers' development engineers from the project to ensure that proper design and process are deployed to make the part of high quality

standard. The focus of the application engineers are not restricted to the parts supply, they even study the field

problems along with the customer engineers to unlock the hidden technical problems for finding innovative solutions.

Maruti udyog Limited

Mahindra & Mahindra

Ford

Hyundai

Tata Motors

General Motors

Honda

Toyota

FIAT

BEHR India

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Tata Johnson Controls

Tata Toyo

Hanil Lear India Private Limited

Subros

Krishna Maruti Ltd.

BSL

TS Tech

Sanden Vikas

FINANCE DEPARTMENT

INTRODUCTION

In this modern era of money making, finance is one of the basis foundations for all kinds of economic

activities. It is the master key, which provides access to all sources to be employed in manufacturing and

merchandising activities. It has been rightly said that business needs money to make more money.

For effective and continuous working of organization the main thing that is required is sufficient

finance. In other words, ‘Finance is the life blood of businesses.’

NEED AND IMPORTANCE

To purchase fixed assets i.e., machinery, fixtures etc.

To pay for purchase of raw materials, wages etc.

To expand the existing business

To hold stock of materials and finished goods.

Managing the available monetary resources is the primary function of any organization. To carry on

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this function the finance department came into existence. This function should be well organized in a firm. So there will be a separate department to look after the financial aspects of the firm.

To work more effectively and efficiently the finance department has several sections such as,

Bills section

Materials accounts section

Sales section

Costing section

Cash and bank section

Accounts section

The department deals with payables and receivables. Here initially the PO (Purchase Order) is

prepared then the GRN (Goods Received Note) will be made for goods. Later quality assurance

department checks the quality. Once the QAD approves then the invoice copy is sent to the accounts

department where the bills are passed, until this stage all the transactions are carried out by ERP

(Enterprise Resource Planning) software. Then the further operations are carried out by Tally

package.

BUDGETING:

The company has yearly budgeting for each and every department. Each and every department will give the

schedule as per the requirements of budge jets about machining, tools etc. If any extra budget is required apart from the allotted amount the company has procedure of filling in CAPEX (Capital Expenditure) form, which

contains the details of amount required. To avoid destructions in their working, the company will go for long

term or short term borrowings from corporate.

The company’s banking transactions is with BOI (Bank of India).

ACCOUNTS SECTION:

Accounts section is a must for any business concern. The main function of accounts section is that of

accounting.

Accounting is process of identifying, measuring, recording and communicating economic information capable

of being expressed in terms of money, at least partially to facilitate appraisal of an institution or situation,

inform judgment and decisions by users of an institutions, it essentially considers the needs of a specific economic unit, which an information system design to serve organizational objective. The utility of accounting

information lies in the ability to reduce uncertainty.

MAIN FUNCTIONS OF THIS SECTION:

Preparing the profit and loss account and the balance sheet of concerned at the end of every accounting year.

The guidelines followed during the preparations of the annual report are as follows:

1. Significant accounting policies:

The financial statements has to be prepared as of a going concern on historical cost convention and on the

accrual method of accounting in accordance with generally accepted accounting principles and provisions of

the company’s act 1956 as adapted consistently by the company.

2. Fixed assets:

Fixed assets are carried at the cost of acquisition or construction less accumulated depreciation.

Physical counting is done once in a year. The cost includes the value of internal transfers for capital

works taken at actual factory cost or market price, if any extraordinary events such as

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addition/deduction in respect to long term liabilities/loans utilized for acquisitions of fixed assets is added to / reduced from the cost.

3. Borrowing costs:

Borrowing costs that are attributable to the manufacture, acquisition or construction of assets, are included as part of the cost of such assets. The cash credit limit of the company is 350 lakh. The company’s bank

transactions are with Bank of India.

4. Investments:

Long-term investments are carried at costs. The current investments are on the new projects and also for the expansion of the company. The cost of investments includes acquisition charges such as brokerage, fees and

duties .any reduction in the carrying amount and any reversals of such reductions are charged or credited to the

profit & loss account.

5. Terminal benefits:

Provident fund and Employee’s family pension scheme contributions are accounted for an accrual basis.

Liability for gratuity, leave encashable at the time of retirement medical benefits are accounted for in

accordance with actuarial valuation. The actuarial liability is determined with reference to employees at the

beginning of each calendar year.

6. Depreciation:

Depreciation is calculated at the end of every year and depreciation on fixed assets is charged on written down value method as per the rate prescribed in the company’s act, 1956.

7. Research & Development:

Research & Development expenditure is charged to profit & loss account in the year of incurrence. It has an

expenses benefit of 150% in income tax. Fixed assets acquired for the purpose of research and developments

are capitalized.

8. Accounting for foreign currency transactions:

The company has exports but not directly, it’s through agents and hence the payments are made in the Indian

currency. But for imports it is in the form of Euro, GBP (Great Britain Pounds) for the accounting purpose the

figures are converted in to rupees. In case of payments, the Indian currency is converted to respective

currencies and paid. Any exchange differences arising out of foreign exchange currency transactions are recognized as income or as expense in the period in which they arise.

39

HUMAN RESOURCE DEPARTMENT

INTRODUCTION

IFB AUTOMOTIVE reckons its human resources as its most treasured asset and main resource of strength for the organization. The company believes that product success and customer trust can only be achieved through

enthusiastic and dedicated effort and innovative ideas given willingly by its people.

The company provides working environment where every employee can make most effective use of his

knowledge with enthusiasm. To develop and improve the knowledge base and skills of its employees, IFB AUTOMOTIVE team members are sent to different training programs and professional courses.

HR OBJECTIVE:

Promote culture for learning.

Foster teamwork.

Nurture creativity.

Preferred supplier for automotive system in passenger car, utility vehicles and commercial vehicles

segments.

Aspire to be preferred company by all other associates.

Participate in social development and be eco friendly in all our activities.

Office working hours-

Start time: 8.30 A.M.

Finish time: 5.45 P.M.

Saturdays: 8.30 A.M. to 1.30 P.M.

Weekly off: Sunday

HR POLICY:

The company firmly believes that well motivated employees are important for fulfilling our customer

commitment to supply the product that will consistently exceed customer expectations.

The company strongly believes that attracting and retaining right talents and inculcating a quality

culture will result in becoming a preferred supplier due to excellence in quality and services.

The company believes in creating and maintaining a desire amongst employees to continuously improve their competency. Nature teamwork and collaboration thereby creating an environment that will foster teamwork

and achieve total quality in all the activities of the company.

The company strongly believes in promoting professional integrity and proper functional discipline amongst

employees and creates role model. The company will initiate and support activities aimed at improving

standard in the quality of life around the community it operates.

OBJECTIVES:

40

1. To achieve excellence in business by exceeding customer exceptions through well motivated and competent

employees working in a culture of teamwork and continuous improvement with professional integration.

2. To attract and retain right talent.

3. To develop the potentials in the pursuits of organizational goals through self-development.

RECRUITMENT POLICY:

1. Policy statements:

To induct fresh graduates with consistently good academic record for placement in executive position by

planned and effective selection and train them to suit to the discipline relevant to the present and future

business requirements.

To prepare them to face the challenges of new millennium by nurturing technique, managerial,

behavioral competencies and to develop world-class professionals as we move towards world-class standards.

Breeding-internal managerial talents to occupy higher positions of tomorrow.

2. Methods:

Facilitate proper manpower planning.

Recruit through advertisement/agencies/contacts/data banks.

Fill up the vacancies within the organization.

Campus recruitment-presentation, written test and aptitude test.

RETAINING POLICY:

Good scheme to attract readymade talent in the market

HR interventions.

Induction programs for new entrants.

Conduct wage survey comparative study on employee’s welfare and benefits.

Professional pledges.

Industry-institute collaboration.

Individual growth plan.

Promoting professional activities.

Conduct exit interview.

Six ways to build a top staff:

To build a staff into a team that does the best possible job for the organization,

Be friendly to staff members but don’t treat them like close personal friends. They want you to be the boss and they want to be employees. It works better that way.

Tell them everything except them to tell you the same. Shared knowledge building loyalty and trust.

I invest heavy in loyalty. If staff members know that you are always loyal to them, they will give you

the same in return.

Realize that fairness-not cleanliness-is next to godliness.

Never be too busy to laugh. Nothing gets people through a crisis like a good laugh-and a manager who

is willing to enjoy it with them.

41

Proposals of higher education:

IFB APLbelieves in creating and maintaining desire amongst employees to continuously improve competency,

skill Etc. constant up gradation of skill, technique knowledge, concepts, managerial skills etc, will help

employees to perform in consistency with their demanding job responsibilities.

Scope:

Engineers who have minimum 5 yrs of experience.

Managers who have minimum 3Yrs of experience.

Qualifications:

The qualification of the employees should be any one of the following:

Diploma in engineering

Or Bachelor of engineering

Or any other degree

Courses proposed: (benefits)

The following courses are proposed for following department employees,

1. Managerial/general:

MBA

Engineering business management.

2. Master of technology (M.tech):

Design and development.

Quality systems

Manufacturing systems engineering.

3. Doctorate (PhD):

Design engineering

Research and development

Any other stream (M.Sc)

Cost:

The course cost varies from Rs.10000 to Rs.200000 for 2 years.

Budget:

The annual budget proposed for the courses is around Rs.600000 per year. However it may vary from year to year depending upon the fee structure of the college/university

SYSTEM OF RECRUITMENT

1. MAN POWER PLANNING:

Recruitment and selection is based on policy of the company on manpower planning. Manpower plan

is made available in the beginning of the financial year. The plan is prepared after critical evaluation

42

and systematic review of all jobs, working methods, productivity norms, long and short-term business plans and targets.

2. MAN POWER REQUISITION:

Request for approval of manpower either for a new position or a replacement will be through the manpower requisition format which has to be submitted by the departmental heads to HR department with the approval of

the divisional unit head for senior manger required. Recruitment process must be initiated only on receipt of

approval. Also manpower requisition form should be submitted to the HR department at least 3 months in

advance.

On receipt of manpower requisition form HR department will work into the following possibilities for following up the vacancy.

Assigning additional responsibilities to the existing staff.

Internal transfer.

Promotion to the existing person

SOURCES OF RECRUITMENT:

Professional contracts i.e., professional agency, through contracts.

Employee references.

Through campus interview.

Through employment exchange.

Through advertisement in newspaper.

Head hunting/placement agencies.

PROCEDURE:

All recruitments are based on the requirement of the department\organization. As fare as possible new recruits

should be inducted in the starting levels like diploma, trainees, GETS, postgraduate, trainees, management

trainees experience candidates are placed at the higher cadre or where there is no substitute available within the organization.

The designed manpower analysis should also cover aspects like educational qualification, background and

experience detaining out description of the job to be carried out, key personnel qualities of candidates,

essential attributes, job related competencies.

RECRUITMENT AND SELECTION:

The unit head of each unit company who will interview all candidates before releasing offer letters

will sign all appointment letters.

Selection will be purely based on recruit and through adoption of systematic selection process.

No back door entry will be allowed hiring of direct or indirect relations of employees will be avoided.

SELECTION PROCESS:

Screening:

43

Screening by HR department based on job description, age, education qualification and number of years of relevant experience are the factors to be considered. For executives and above, short listed

application will be next to the concerned department head\ divisional head for final screening.

Interview call letters:

HR department shall schedule the interview in consultation with department manager. The ratio

would be 1:7 for a position in the junior level and 1:5 in the middle management level. Hr department

will send interview call letters well in advance at least 7 days before the date of interview.

Written test:

For all entry-level positions there is a written test to assess the candidate’s knowledge of the

generation subjects like arithmetic, general English, and technical\ job knowledge. The test includes

an attitude\ personality questionnaire. These tests should have approval of Hr department concerned

department and will be reviewed from time to time.

Practical test:

In addition to the written test there is also a practical test for the entry-level positions in the respective job/skills/trade.

Interview:

Interviews will be used as the main mode of selection. There will be 2-interview panel for all position

preliminary interviews and final interview panel. The candidates who are through in the 2nd round

will be called again to meet the divisional heads and final selection shall be done by unit

head/CEO/director.

Pre employment verification:

For all positions below executive level a pre-employment verification of character antecedents is

done to check the family background of the candidate, his social circle, performance in the previous

job, college/institution where he studied, criminal records.

Pre employment medical check up:

All the candidates who are provisionally selected have to undergo medical check up by the company

approved doctors. E.g.: uric acid, urea, urea for R/E, chest X-rays, eye check up and ECG.

Salary And Grade Fixation:

The level of the entry in the terms of grade and salary will be fixed depending on age, qualification, salary drawn, experience, performance in the interview etc., care must be taken not to disturb the

existing structure.

Unit head\corporate approval:

Before issuing the appointment letters to the president\ director IFB AUTOMOTIVE is to be obtained.

44

Appointment letters:

Appointment letter will be issued by HR department per the prescribed format- it will be signed by

the unit head\manager HR. details of salary perks will be given along with appointment letter.

Joining time:

Normally joining time is one month from the date of reject of offer. For senior positions, if the

present employment terms demand more than one month, we may allow up to a maximum 3 months

Joining formalities:

It includes filling up of joining report, all statutory declaration forms like ES, PF gratuity, Medi-claim

forms etc and verification of original document.

Salary advice to accounts:

The HR department sends the payroll notice signed by the unit head to the accounts department for

the payment of salary.

Reference checks:

For all recruitment in the executive category and above, a reference checking is done with previous employer as per format-enclosed format.

Induction program:

The induction program\induction training through which the newly joined various department and

work culture of the organization. The induction programs are planned differently for deferent

levels.

1. Graduate engineer’s trainees/management trainee’s diploma trainees- the induction period is

one month.

2. Engineers at the entry level (1-3 yrs experiences the duration is 15 days).

3. Senior level the induction period is 7-10 days.

45

RESEARCH DESIGN

The main aim of performance appraisal is to reward the great performance and to address the weaknesses. STATEMENT OF THE PROBLEM:

Performance appraisal is one of the most important and unavoidable part of any organization

whether it is for – profit or non – profitable purpose, as this process helps the organization to

evaluate the performance of the employees and to formally recognize their achievements and

contribution towards the organization

This study mainly focuses on finding out the effectiveness of performance appraisal on

the employees working at IFB Automatic pvt ltd, Bangalore and to evaluate the current status of

the satisfaction of employees with the present performance appraisal system at IFB Automatic

pvt ltd, Bangalore. If there is found some dissatisfactory factors, the study will try to provide

some suggestions to improve the situation.

NEED OF THE STUDY:

There are numerous needs to study the effectiveness of performance appraisal, some of

them are listed below:

The ultimate need of performance appraisal system is towards achieving organizational

goals.

Performance appraisal helps the superior to know the level of competency and have a

proper understanding about their subordinates.

Performance appraisal is also significant in providing ranking based on performance of

the employees.

To provide fair and equitable compensation based on performance of the employees.

To ensure organizational effectiveness by correcting the employees based on the

standards set in order to improve their performance and suggesting the required changes.

46

OBJECTIVES OF THE STUDY:

To measure the effectiveness of performance appraisal system at IFB Automatic pvt ltd,

Bangalore.

To analyze the factors which contribute towards the effectiveness of performance

appraisal system.

To suggest some measures for improving the factors contributing towards the

effectiveness of performance appraisal system at IFB Automatic pvt ltd, Bangalore.

SCOPE OF THE STUDY:

The study was carried out to evaluate the effectiveness of performance appraisal and

development programme conducted at IFB Automatic pvt ltd, Bangalore.

It helps to know the importance of performance appraisal system by considering both on-

the-job performance as well as the personal qualities of the employees.

To improve the employee work performance by helping them to utilize their potential to

the maximum in carrying out the objectives of the organization.

To evaluate the performance and provide valuable feedback to the employees in the areas

to be improved to efficiently achieve firm’s mission.

To allow the management to make decisions based on the performance of the employees

relating to payroll and compensation, training and development, promotion, demotion,

transfer, etc……

47

RESEARCH METHODOLOGY

RESEARCH DESIGN Descriptive research design.

TYPE OF DATA Primary data- Questionnaire

Secondary data- Company website, literature review and internet portals

DATA COLLECTION TOOL Questionnaire.

SAMPLING UNIT 100 employees.

STATISTICAL TOOLS Tables, Charts, Graphs and Regression Analysis

SAMPLE UNIT IFB AUTOMATIC PVT LTD BANGLORE

LIMITATIONS OF THE STUDY:

Time constraint was a major drawback as the period of research was limited to only 8

weeks for data collection.

The sample size was restricted onlyto 100 employees.

The chances of human error cannot be ruled out due to the possibility of

misrepresentation of the data by the respondents.

HYPOTHESIS:

HYPOTHESIS 1

H0: There is no significant effect from Design of appraisal form on performance appraisal

system.

H1: There is a significant effect from Design of appraisal form on performance appraisal system.

48

HYPOTHESIS 2

H0: There is no significant effect of Employee training and development on performance

appraisal system.

H1: There is a significant effect of Employee training and development on performance

appraisal system.

49

DATA ANALYSIS AND INTERPRETATION

DEMOGRAPHIC PROFILE OF THE RESPONDENTS:

Table No. 4.1

Gender of the respondents

Sl No Particulars Frequency Percentage

1. Male 42 42

2. Female 58 58

Source: Primary Data

Analysis:

Table No. 4.1 shows that out of 50 respondents considered for data collection, 42% of the

respondents were male and 58% respondents were female.

Chart no. 4.1

Gender of the Respondents

Interpretation:

From the above table we can interpret out of the total respondents used for data collection,

majority of them were female and rest were male respondents.

50

70

60

50

40

30

20

10

0

Male

Female

1 2

Table No. 4.2

Age Group of the Respondents

Sl. No Particulars Frequency Percentage

1. Below 25 24 24

2. 25 to 34 42 42

3. 35 to 44 28 28

4. 45 and above 6 6

Source: Primary Data

Analysis:

From the above table no. 4.2, it can be analyzed that, out of 50 respondents, 24% of the

respondents belong to the age group of below 25, 42% of the respondents belong to the age

group of 25 to 34, 28% of the respondents belongs to the age group of 35 to 44 and 6% of the

respondents belong to the age group of 45 and above.

Chart no. 4.2

Age Group of the Respondents

Interpretation:

From the above chart we can interpret that majority of the respondents belong to the age group of

25 to 34 being 42% while other 58% belongs to the various sub groups mentioned in the table

no. 4.2.

51

50

40

30

2

0

Frequency

Percentage 10

0 Below 25 25 to 34 35 to 44 45and

above

Table no. 4.3

Educational Qualification of the Respondents

Sl. No Particulars Frequency Percentage

1. SSLC 6 6

2. PUC 24 24

3. Graduation/

Diploma

44 44

4. Post Graduation 26 26

Source: Primary Data

Analysis:

Table no. 4.3 shows the educational qualification of the respondents. From the above table it can

be analyzed that out of 100%, 6% of the respondents have completed SSLC, 24% of the

respondents have completed PUC, 44% of the respondents have completed their graduation/

diploma and 26% of the respondents are post graduates.

Chart no. 4.3

Educational Qualification of the Respondents

Interpretation:

From the above chart no. 4.3, it is clear around 44% respondents have completed their

graduation/diploma and 26% have completed their post graduation while other 30% are under

graduates.

52

50 45 40 35 30 25 20 15 10

5 0

Frequency

Percentage

Table no. 4.4

Current Employment Status of the Employees

Sl. No Particulars Frequency Percentage

1 Full-time 64 64

2 Part-time 12 12

3 Regular 20 20

4 Temporary 4 4

Source: Primary Data

Analysis:

The table no. 4.4 shows the current employment status of the employees where out of 50

employees/ respondents, 64% are full – time workers, 12% are part- time workers, 20% are

regular employees and 4% are temporary employees.

Chart no. 4.4

Current Employment Status of the Employees

Interpretation:

From the above chart no. 4.4 it is clear that about 64% of the employees are full – time workers

while others 46% of the employees fall under the category of part-time, regular and temporary

employees.

53

70

60

50

40

30

20

10

0

Current

employment status

Frequency

Current

employment status

Percentage

Table no. 4.5

Work Experience

Sl. No Particulars Frequency Percentage

1 Below 1 year 12 12

2 1 to 3 years 28 28

3 3 to 5 years 26 26

4 Above 5 years 34 34

Source: Primary Data

Analysis:

Table no. 4.5 shows the working experience of the employees in the organization where it can be

analyzed that amongst 50 total respondents, 12% employees fall into the category of working

experience of below one year, 28% employees fall under the category having working

experience of 1 to 3 years, 26% of the employees fall under the category having working

experience of 3 to 5 years, and 34% of the employees fall under the category having working

experience of more than 5 years.

Chart no. 4.5

Work Experience of the Employees

Interpretation:

From the above chart no. 4.5 it is clear that majority of the employees fall under the category of

having working experience of more than 5 years where mostly these type of workers are doctors

or senior nursing staff.

54

40

35

30

25

20

15

10

5

0

Work experience Frequency

Work experience

Percentage

Below 1 1 to 3 3 to 5 Above 5 year years years years

Table no. 4.6

How often is appraisal carried out in your Organization?

Sl. No Particulars Frequency Percentage

1 Once in 6 months 20 20

2 Once in a year 80 80

Source: Primary Data

Analysis:

The above table no. 4.6 shows how often the appraisal process is carried out in the organization

and with the help of the data collected from the respondents we can analyze that around 80% of

the employees says that it takes place once in a year and only 20% of the employees says once in

6 months.

Chart no. 4.6

How often is appraisal carried out in your organization?

Interpretation:

From the above chart no. 4.6 we can interpret that performance appraisal carried out in the

organization is once in a year as around 80% of the employees agree for the same.

55

90

80

70

60

50

40

30

20

10

Once in 6 months

Once in a year

Frequency Percentage

Table no. 4.7

How would you rank the performance appraisal method in your organization?

Sl. No Particulars Frequency Percentage

1 Easy 42 42

2 Complicated 10 10

3 Efficient 48 48

4 Inefficient 0 0

Analysis:

The above table no. 4.7 shows how the employees rank the performance appraisal carried out in

their organization where around 42% of the employees says that it is easy, 10% says it is

complicated, 48% says it is efficient and 0% says it is inefficient.

Chart no. 4.7

How would you rank the performance appraisal method in your organization?

Interpretation:

From the above chart no. 4.7, it is clear that majority of the employees says it is easy and

efficient and only like 10% of the employees feels it is complicated.

56

60

50

40

30

20

10

0

Frequency

Percentage

LIKERT QUESTIONS:

Table no.4.8

Attitude of the Employees

4.8.1: You are satisfied with the performance appraisal results of the organization.

Sl. No Particulars Frequency Percentage

1 Strongly Agree 44 44

2 Agree 40 40

3 Neutral 10 10

4 Disagree 4 4

5 Strongly disagree 2 2

Source: Primary Data

Analysis:

The above table no. 4.8.1 shows how well the employees are satisfied with the performance

appraisal results of the organization where the percentage goes as strongly agree is 44%, agree is

40%, neutral is 10%, disagree is 4% and strongly disagree is just 2%.

Chart no.4.8.1

You are satisfied with the performance appraisal results of the organization.

Interpretation:

Therefore, it is clear from the analysis results of the above table no.4.8.1 which shows the

attitude of the employees towards the performance appraisal results of the organization and

around 44% people out of the total 50 sampling size of 50 respondents have strongly agreed and

57

50

45

40

35

30

25

20

15

10

5

0

FREQUENCY

PERCENTAGE

Strongly Agree Neutral Disagree Strongly Agree disagree

hence we can say that they are satisfied with the performance appraisal results of the

organization.

Table no. 4.8.2

The criteria of performance appraisal is also considering the performance of the employees

Sl. No Particulars Frequency Percentage

1 Strongly Agree 12 12

2 Agree 78 78

3 Neutral 8 8

4 Disagree 2 2

5 Strongly disagree 0 0

Source: Primary Data

Analysis:

The above table no. 4.8.2 shows the criteria of performance appraisal is also considering the

performance of the employees or not. Therefore, around 12% of the respondents have opted for

strongly agree, 78% for agree, 8% are neutral, 2% respondents opt for disagree and nobody for

strongly disagree.

Chart no. 4.8.2

The criteria of performance appraisal is also considering the performance of the employees

Interpretation:

From the above chart no. 4.8.2 it is clear that around 78% of the respondents out of 100% have

agreed that the organization does consider the performance of the employees at the time of

performance appraisal in the organization. Hence we can conclude that the organization is not

58

90 80 70 60 50 40 30 20 10 0

FREQUENCY

PERCENTAGE

Strongly Agree Neutral Disagree Strongly Agree disagree

partial amongst the employees and they do take proper consideration regarding the employee’s

performance without any bias between them.

Table no. 4.8.3

Are you satisfied with the outcomes of the appraisal?

Sl. No Particulars Frequency Percentage

1 Strongly Agree 22 22

2 Agree 36 36

3 Neutral 34 34

4 Disagree 4 4

5 Strongly disagree 4 4

Source: Primary Data

Analysis:

Table no. 4.8.3 shows whether the employees are satisfied with the performance appraisal results

or not wherein, around 22% respondents have strongly agreed, 36% respondents have agreed,

34% respondents are neutral i.e., neither agree nor disagree, 4% have opted for disagree and 4%

of them have strongly disagreed.

Chart no. 4.8.3

Are you satisfied with the outcomes of the appraisal?

Interpretation:

From the above analysis result which is also shown with the help of the diagram in chart no.

4.8.3 shows that around 36% of the respondents are satisfied with the outcomes of performance

59

40 35

30

25

20

15

10

5

0

FREQUENCY

PERCENTA

GE

Strongly Agree Neutral Disagree Strongly Agree disagree

appraisal and around 34% are neutral i.e., neither satisfied nor dissatisfied. Therefore, the

organization can take the necessary steps and find out what corrective measures have to be taken

to make the results of the performance appraisal more accurate and make their employees happy.

Table no. 4.8.4

Do you think there is still scope to improve performance appraisal system

Sl. No Particulars Frequency Percentage

1 Strongly Agree 14 14

2 Agree 36 36

3 Neutral 24 24

4 Disagree 18 18

5 Strongly disagree 8 8

Source: Primary Data

Analysis:

The above table no. 4.8.4 shows whether there is still scope to improve the performance

appraisal system of the organization or not. Based on the response it is found that around 14% of

the respondents have strongly agreed, 36% of the respondents have agreed, 24% of the

respondents are neutral, 18% of the respondents have disagreed and around 8% of the

respondents have strongly disagreed.

Chart no. 4.8.4

Do you think there is still scope to improve performance appraisal system.

60

40

35

30

25

20

15

1

0

FREQUENCY

PERCENTA

GE

Strongly Agree Neutral Disagree Strongly Agree disagree

Interpretation:

From the above chart no. 4.8.4 it is clear that majority of the respondents have agreed that there

is still scope for improving the performance appraisal system in the organization. Therefore, the

organization can improve its performance appraisal system by taking necessary corrective

measures for further appraisal of the employees.

Table no. 4.9

Design of the appraisal form

4.9.1: All the goals and targets have been clearly expressed and assigned to me by the

management.

Sl. No Particulars Frequency Percentage

1 Strongly Agree 32 32

2 Agree 40 40

3 Neutral 12 12

4 Disagree 16 16

5 Strongly disagree 0 0

Source: Primary Data

Analysis:

The above table no. 4.9.1 shows whether all the goals and targets have been clearly expressed

and assigned to the employees by the management in the organization or not. Based on the

response it is found that out of 50 respondents around 32% of the respondents have strongly

agreed, 40% of the respondents have agreed, 12% of the respondents are neutral, 16% of the

respondents have disagreed and 0% of the respondents have strongly disagreed.

61

Chart no. 4.9.1

All the goals and targets have been clearly expressed and assigned to me by the

management.

Interpretation:

Based on the analysis it is clear that majority of the respondents have agreed and they feel that all

the goals and targets or standards are clearly expressed and assigned to them by the management

and hence they have no issues with the communication issues between the management and the

respondents.

Table no. 4.9.2

I feel the standards set for performance evaluation are pretty justifiable.

Sl. No Particulars Frequency Percentage

1 Strongly Agree 6 6

2 Agree 48 48

3 Neutral 26 26

4 Disagree 18 18

5 Strongly disagree 2 2

Source: Primary Data

Analysis:

From the above table no. 4.9.2, it can be analyzed that out of 50 respondents 6% have strongly

agreed with the standards set are justified, 48% have agreed, 26% are neutral, 18% respondents

62

70

60

50

40

30

2

0

PERCENTAGE

FREQUEN

CY 10

0 Strongly Agree Neutral Disagree Strongly Agree disagree

do not agree and only around 2% of the respondents strongly disagree with the above mentioned

statement.

Chart no. 4.9.2

I feel the standards set for performance evaluation are pretty justifiable.

Interpretation:

From the above results based on the analysis we can interpret that around 48% of the respondents

feel that the standards set for the performance evaluation are pretty justifiable.

Table no. 4.9.3

The reliability of the factors considered in appraisal system is satisfactory.

Sl. No Particulars Frequency Percentage

1 Strongly Agree 20 20

2 Agree 32 32

3 Neutral 18 18

4 Disagree 22 22

5 Strongly disagree 8 8

Source: Primary Data

Analysis:

The above table no. 4.9.3 shows that the reliability of the factors considered in appraisal system

by the management are satisfactory or not. Based on the response it is found that out of 50

respondents around 20% of the respondents have strongly agreed, 32% of the respondents have

63

80

70

60

50

40

30

20

10

0

PERCENTAGE

FREQUEN

CY

Strongly Agree Neutral Disagree Strongly Agree disagree

agreed, 18% of the respondents are neutral, 122% of the respondents have disagreed and 8% of

the respondents have strongly disagreed.

Chart no. 4.9.3

The reliability of the factors considered in appraisal system is satisfactory.

Interpretation:

The results are quiet clear from the analysis which is also shown in the chart no. 4.9.3 where

majority of the respondents in the organization feel that the reliability of the factors considered

by the management for evaluating the performance appraisal results of the employees are

satisfactory. The management can further revise the factors, if necessary, to get more accurate

results.

Table no. 4.9.4

I feel the performance appraisal system set by the management is satisfactory.

Sl. No Particulars Frequency Percentage

1 Strongly Agree 22 22

2 Agree 34 34

3 Neutral 16 16

4 Disagree 16 16

5 Strongly disagree 12 12

Source: Primary Data

64

60

50

40

30

2

0

PERCENTAGE

FREQUEN

CY 10

0 Strongly Agree Neutral Disagree Strongly Agree disagree

Analysis:

The above table no. 4.9.4 shows the analysis results collected from the respondents based on

whether they feel the performance appraisal system set b the management is worth it or not or

whether they are satisfied or not. From the above results we got to know that out of 50

respondents around 22% respondents have strongly agreed, 34% of the respondents have agreed,

16% are neutral, 16% respondents didn’t agree, and around 12% of the respondents strongly

disagree.

Chart no. 4.9.4

I feel the performance appraisal system set by the management is satisfactory.

Interpretation:

From the above chart no. 4.9.4 it is quite clear that out of total 50 respondents, 34% of the

employees have agreed that the performance appraisal system set by the management is

satisfactory and they have no objections regarding such system.

65

60

50

40

30

2

0

PERCENTAGE

FREQUEN

CY 10

Strongly Agree Neutral Disagree Strongly Agree disagree

Table no. 4.10

Employee Training and Development.

4.10.1: I feel training delivered after appraisal contributes in improving my performance.

Sl. No Particulars Frequency Percentage

1 Strongly Agree 36 36

2 Agree 24 24

3 Neutral 18 18

4 Disagree 12 12

5 Strongly disagree 10 10

Source: Primary Data

Analysis:

The above table no. 4.10.1, it can be said that, out of total 50 respondents 36% of the respondents

strongly agree with the above mentioned statement, 24% respondents agree, 18% respondents are

neutral, 12% of the respondents don’t agree, and only 10% of the respondents strongly disagree.

Chart no. 4.10.1

4.10.1: I feel training delivered after appraisal contributes in improving my performance.

Interpretation:

From the above results it is clear that majority of the respondents have strongly agreed that the

training delivered after appraisal contributes in improving the employees performance. Hence,

the organization can rely on the same training methods and can improvise it if necessary.

66

40

35

30

25

20

15

1

0

FREQUENCY

PERCENTA

GE

0

Strongly Agree Neutral Disagree Strongly Agree disagree

Table no. 4.10.2

All my appraisal skills are revived by the management on a daily basis.

Sl. No Particulars Frequency Percentage

1 Strongly Agree 12 12

2 Agree 34 34

3 Neutral 20 20

4 Disagree 16 16

5 Strongly disagree 18 18

Source: Primary Data

Analysis:

From the above table no. 4.10.2, it can be said that, out of total 50 respondents 12% of the

respondents strongly agree with the above mentioned statement, 34% respondents agree, 20%

respondents are neutral, 16% of the respondents don’t agree, and only 18% of the respondents

strongly disagree.

Chart no. 4.10.2

All my appraisal skills are revived by the management on a daily basis.

Interpretation:

From the above results it is clear that majority of the respondents has agreed that all of their

appraisal skills are revived by the management on the daily basis so that they can meet the

objectives of the organization and targets set by the management considered for performance

appraisal more effectively.

67

40

35

30

25

20

15

10

5

0

FREQUENCY

PERCENTA

GE

Strongly Agree Neutral Disagree Strongly Agree disagree

Table no. 4.10.3

Training provided by the organization improves my motivation and knowledge.

Sl. No Particulars Frequency Percentage

1 Strongly Agree 32 32

2 Agree 20 20

3 Neutral 26 26

4 Disagree 12 12

5 Strongly disagree 10 10

Source: Primary Data

Analysis:

The above table no. 4.10.3 shows that out of total 50 respondents, 32% of the employees strongly

agree that training provided by the organization improves their motivation and knowledge,

wherein, 20% of the respondents selects the second option i.e., agreed, 26% of the respondents

are neutral, 12% of the respondents don’t agree and only 10% of the respondents strongly

disagree.

Chart no. 4.10.3

Training provided by the organization improves my motivation and knowledge.

Interpretation:

From the above results shown in the chart no. 4.10.3 shows that majority of the people i.e., out of

50 respondents, 32% of the employees strongly agree with the statement that training provided

by the organization improves the motivation and knowledge of the employees. Hence, the

68

35

30

25

20

15

1

0

FREQUENCY

PERCENTA

GE 5

0

Strongly Agree Neutral Disagree Strongly Agree disagree

organization can provide more of such trainings to the employees to enhance their skills and

make them feel more confident about their job.

Table no. 4.10.4

Appraisal training helps me to overcome weak areas related to my job.

Sl. No Particulars Frequency Percentage

1 Strongly Agree 20 20

2 Agree 42 42

3 Neutral 20 20

4 Disagree 12 12

5 Strongly disagree 6 6

Source: Primary Data

Analysis:

The above table no. 4.10.4 shows the analysis results collected from the respondents based on

whether they feel that the appraisal training helps them to overcome the weak areas related to

their job or not or. From the above results we got to know that out of 50 respondents around 20%

respondents have strongly agreed, 42% of the respondents have agreed, 20% are neutral, 12%

respondents didn’t agree, and around 6% of the respondents strongly disagree.

Chart no. 4.10.4

Appraisal training helps me to overcome weak areas related to my job.

69

45

40

35

30

25

20

15

10

5

0

FREQUENCY

PERCENTA

GE

Strongly Agree Neutral Disagree Strongly Agree disagree

Interpretation:

From the above chart no. 4.10.4, we can interpret the results saying majority of the respondents

i.e., around 40% have agreed that appraisal training given by the management to them helps

them to overcome the weak areas related to their job, enhances their skills and make them more

competent in doing their job.

Table no. 4.11

Feedback on performance by the management

4.11.1: Appraisal feedback provided by the management is an important factor to improve

my on-the-job performance.

Sl. No Particulars Frequency Percentage

1 Strongly Agree 60 60

2 Agree 18 18

3 Neutral 6 6

4 Disagree 10 10

5 Strongly disagree 6 6

Source: Primary Data

Analysis:

The above table no. 4.11.1 shows that out of total 50 respondents, 60% of the employees strongly

agree with the above mentioned statement, around 18% of the respondents agree with the fact,

6% of the respondents are neutral, 10% respondents disagree and only 6% of the respondents

strongly disagree.

70

Chart no. 4.11.1

Appraisal feedback provided by the management is an important factor to improve my on-

the-job performance.

Interpretation:

The results are quite clear from the above chart no. 4.11.1 which shows that around 60% of the

respondents out of total 100% strongly agree that the appraisal feedback provided by the

management is an important factor to improve their on-the-job performance. Hence the

organization should focus on providing more of such feedbacks to their employees to keep them

motivated.

Table no. 4.11.2

I feel appraisal outcomes helps in diagnosing both organizational and individual problems.

Sl. No Particulars Frequency Percentage

1 Strongly Agree 16 16

2 Agree 50 50

3 Neutral 16 16

4 Disagree 10 10

5 Strongly disagree 8 8

Source: Primary Data

Analysis:

The above table no. 4.11.2 shows what the employees feel about the appraisal outcomes, whether

it helps them in diagnosing both organizational and individual problems or not. Therefore, out of

71

100

90 80

70

60

50

40

30

20

10

0

PERCENTAGE

FREQUEN

CY

Strongly Agree Neutral Disagree Strongly Agree disagree

50 respondents, 16% of the employees strongly agree, 50% of the respondents agree with the

statement, 16% respondents are neutral, 10% of the respondents disagree and only 8% of the

respondents strongly disagree.

Chart no. 4.11.2

I feel appraisal outcomes helps in diagnosing both organizational and individual problems.

Interpretation:

From the above results shown in the chart no. 4.11.2 shows that majority of the people i.e., out of

50 respondents, 50% of the employees strongly feels that appraisal outcomes helps in diagnosing

both organizational as well as individual problems. Hence, the organization can opt for such

appraisal outcomes which can help them to retain more employees with their job in the

organization.

Table no. 4.11.3

Interaction with the management enhances appraisal effectiveness.

Sl. No Particulars Frequency Percentage

1 Strongly Agree 20 20

2 Agree 38 38

3 Neutral 36 36

4 Disagree 4 4

5 Strongly disagree 2 2

Source: Primary Data

72

80

70

60

50

40

3

0

PERCENTAGE

FREQUEN

CY 20

1

0 Strongly Agree Neutral Disagree Strongly Agree disagree

Analysis:

The above table no. 4.11.3 shows that out of 50 respondents considered for data collection, 20%

of the respondents strongly agree, 38% of the respondents agree with the statement, 36% of the

respondents are neutral, 4% of the respondents don’t agree and 2% of the respondents strongly

disagree.

Chart no. 4.11.3

Interaction with the management enhances appraisal effectiveness.

Interpretation:

From the above results shown in the chart no. 4.11.3 shows that majority of the people i.e., out of

50 respondents, 38% of the employees agrees that the interaction with the management enhances

their appraisal effectiveness. The employees feel more recognized in the organization when the

management interacts with them and rewards the best performance of the employees.

73

60

50

40

30

20 PERCENTAGE

FREQUEN

CY 10

0 Strongly Agree Neutral Disagree Strongly Agree disagree

Table no. 4.11.4

Performance feedback motivates employees indirectly to perform better.

Sl. No Particulars Frequency Percentage

1 Strongly Agree 14 14

2 Agree 28 28

3 Neutral 22 22

4 Disagree 22 22

5 Strongly disagree 14 14

Source: Primary Data

Analysis:

The above table no. 4.11.4 shows that out of 50 respondents considered for data collection, 14%

of the respondents strongly agree, 28% of the respondents agree with the statement, 22% of the

respondents are neutral, 22% of the respondents don’t agree and 14% of the respondents strongly

disagree.

Chart no. 4.11.4

Performance feedback motivates employees indirectly to perform better.

Interpretation:

From the above results shown in the chart no. 4.11.4 shows that majority of the people i.e., out of

50 respondents, 28% of the employees agrees that the performance feedback provided by the

management post performance evaluation motivates the employees directly or indirectly to

perform better in their job.

74

45 4

0

35

30

25

20

15

10

5

0

PERCENTAGE

FREQUEN

CY

Strongly Agree Neutral Disagree Strongly Agree disagree

Table no. 4.12

Linking rewards to performance appraisal system

4.12.1: I feel there exist a direct link between performance and pay in the organization.

Sl. No Particulars Frequency Percentage

1 Strongly Agree 32 32

2 Agree 30 30

3 Neutral 16 16

4 Disagree 14 14

5 Strongly disagree 8 8

Source: Primary Data

Analysis:

The above table no. 4.12.1 shows that out of 50 respondents considered for data collection, 32%

of the respondents strongly agree, 30% of the respondents agree with the statement, 16% of the

respondents are neutral, 14% of the respondents don’t agree and 8% of the respondents strongly

disagree.

Chart no. 4.12.1

I feel there exist a direct link between performance and pay in the organization.

Interpretation:

From the above chart no. 4.12.1, we can interpret that majority of the respondents feel that there

exist a direct link between performance and pay in the organization. The rewards given to the

employees by the management is based on their performance post performance evaluation

results.

75

35

30

25

20

15

10

5

0

FREQUENCY

PERCENTAGE

Strongly Agree Neutral Disagree Strongly Agree disagree

Table no. 4.12.2

Performance based pay is given on a flat rate to every employee

Sl. No Particulars Frequency Percentage

1 Strongly Agree 4 4

2 Agree 40 40

3 Neutral 34 34

4 Disagree 16 16

5 Strongly disagree 6 6

Source: Primary Data

Analysis: The above table no. 4.12.2 shows that out of total of 50 respondents considered for data collection, 4% of the

respondents strongly agree, 40% of the respondents agree with the statement, 34% of the respondents are

neutral, 16% of the respondents don’t agree and 6% of therespondents strongly disagree.

HYPOTHESIS TESTING:

HYPOTHESIS 1

H0: There is no significant effect from Design of appraisal form on performance appraisal

system.

H1: There is a significant effect from Design of appraisal form on performance appraisal system.

CHI-SQUARE TEST

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

How would you rank the

Performance Appraisal method in

your organisation? * I feel the

performance appraisal system set

by management is satisfactory

50 100.0% 0 0.0% 50 100.0%

76

How would you rank the

Performance Appraisal method in

your organisation? * I feel the

standards set for performance

evaluation are pretty justifiable

50 100.0% 0 0.0% 50 100.0%

How would you rank the Performance Appraisal method in your organisation? * I feel the

performance appraisal system set by management is satisfactory

Crosstab

Count I feel the performance appraisal system set by

management is satisfactory

Agree

Disagree

Neutral

Strongly

Agree

How would you rank

the Performance

Appraisal method in

your organisation?

Complicated 2 2 1 0

Easy 6 2 4 6

Efficient 9 4 3 5

77

Total 17 8 8 11

Crosstab

Count

I feel the performance

appraisal system set by

management is

satisfactory

Strongly Disagree

Total

How would you rank the Performance

Appraisal method in your organisation?

Complicated 0 5

Easy 3 21

Efficient 3 24

Total 6 50

Chi-Square Tests

Value

df

Asymptotic

Significance (2-

sided)

Pearson Chi-Square 5.258a 8 .730

Likelihood Ratio 6.485 8 .593

N of Valid Cases 50

a. 12 cells (80.0%) have expected count less than 5. The minimum expected count is .60.

Symmetric Measures

Value

Approximate

Significance

Nominal by Phi .324 .730

Nominal Cramer's V .229 .730

N of Valid Cases 50

78

How would you rank the Performance Appraisal method in your organisation? * I feel the

standards set for performance evaluation are pretty justifiable

Crosstab

Count I feel the standards set for performance

evaluation are pretty justifiable

Agree

Disagree

Neutral

Strongly

Agree

How would you rank the Complicated 4 0 1 0

Performance Appraisal Easy 13 3 4 1

method in your

organisation?

Efficient 7 6 8 2

Total 24 9 13 3

79

Crosstabs:

Count

I feel the standards

set for performance

evaluation are pretty

justifiable

Strongly Disagree

Total

How would you rank the

Performance Appraisal method in

your organisation?

Complicated 0 5

Easy 0 21

Efficient 1 24

Total 1 50

Chi-Square Tests

Value

df

Asymptotic

Significance

(2-sided)

Pearson Chi-Square 8.011a 8 .432

Likelihood Ratio 9.563 8 .297

N of Valid Cases 50

a. 11 cells (73.3%) have expected count less than 5. The minimum expected count is .10.

Symmetric Measures

Value

Approximate

Significance

Nominal by

Nominal

Phi .400 .432

Cramer's V .283 .432

N of Valid Cases 50

80

ORDINAL REGRESSION:

Case Processing Summary

N Marginal Percentage

How would you rank the

Performance Appraisal method in

your organisation?

Complicated 5 10.0%

Easy 21 42.0%

Efficient 24 48.0%

I feel the standards set for Agree 24 48.0%

performance evaluation are pretty

justifiable

Disagree 9 18.0%

Neutral 13 26.0%

Strongly Agree 3 6.0%

Strongly Disagree 1 2.0%

I feel the performance appraisal Agree 17 34.0%

system set by management is

satisfactory

Disagree 8 16.0%

Neutral 8 16.0%

Strongly Agree 11 22.0%

Strongly Disagree 6 12.0%

All the goals and targets have been

clearly expressed and assigned to me

Agree 20 40.0%

Disagree 8 16.0%

81

by management Neutral 6 12.0%

Strongly Agree 16 32.0%

The reliability of the factors Agree 16 32.0%

considered in appraisal system are

satisfactory

Disagree 11 22.0%

Neutral 9 18.0%

Strongly Agree 10 20.0%

Strongly Disagree 4 8.0%

Valid 50 100.0%

Missing 0

Total 50

Model Fitting Information

-2 Log

Model Likelihood

Chi-Square

df

Sig.

Intercept

Only

84.752

Final 66.685 18.067 15 .259

Link function: Logit.

Goodness-of-Fit

Chi-Square df Sig.

Pearson 108.296 53 .000

Deviance 57.896 53 .299

Link function: Logit.

Pseudo R-Square

.191

Link function: Logit.

82

Cox and Snell .303

Nagelkerke .357

McFadden

Parameter Estimates

Estimat

e

Std.

Error

Wald

df

Sig.

95% Confidence

Interval

Lower

Bound

Upper

Bound

Thres

hold

[HowwouldyourankthePer

formanceAppraisalmethod

inyourorganisation =

Complicated]

-23.408 2.757 72.082 1 .000 -28.812 -18.004

[HowwouldyourankthePer

formanceAppraisalmethod

inyourorganisation =

Easy]

-20.485 2.647 59.873 1 .000 -25.674 -15.297

Locat

ion

[Ifeelthestandardssetforper

formanceevaluationarepret

tyjustifiable=Agree]

-21.213 1.648 165.749 1 .000 -24.442 -17.983

[Ifeelthestandardssetforper

formanceevaluationarepret

tyjustifiable=Disagree]

-18.327 1.813 102.228 1 .000 -21.879 -14.774

[Ifeelthestandardssetforper

formanceevaluationarepret

tyjustifiable=Neutral]

-18.841 1.722 119.766 1 .000 -22.215 -15.467

[Ifeelthestandardssetforper

formanceevaluationarepret

tyjustifiable=Strongly

Agree]

-18.176 .000 . 1 . -18.176 -18.176

[Ifeelthestandardssetforper

formanceevaluationarepret

tyjustifiable=Strongly

Disagree]

0a . . 0 . . .

[Ifeeltheperformanceappra

isalsystemsetbymanageme

ntissatisfactory=Agree]

-.038 1.483 .001 1 .980 -2.944 2.868

[Ifeeltheperformanceappra

isalsystemsetbymanageme

ntissatisfactory=Disagree]

.325 1.551 .044 1 .834 -2.716 3.365

83

[Ifeeltheperformanceappra

isalsystemsetbymanageme

ntissatisfactory=Neutral]

-.779 1.717 .206 1 .650 -4.144 2.587

[Ifeeltheperformanceappra

isalsystemsetbymanageme

ntissatisfactory=Strongly

Agree]

.271 1.309 .043 1 .836 -2.295 2.837

[Ifeeltheperformanceappra

isalsystemsetbymanageme

ntissatisfactory=Strongly

Disagree]

0a . . 0 . . .

[Allthegoalsandtargetshav

ebeenclearlyexpressedand

assignedtomebyma=Agree

]

-2.280 .969 5.534 1 .019 -4.180 -.380

[Allthegoalsandtargetshav

ebeenclearlyexpressedand

assignedtomebyma=Disag

ree]

-1.583 1.169 1.834 1 .176 -3.874 .708

[Allthegoalsandtargetshav

ebeenclearlyexpressedand

assignedtomebyma=Neutr

al]

-1.502 1.327 1.281 1 .258 -4.102 1.099

[Allthegoalsandtargetshav

ebeenclearlyexpressedand

assignedtomebyma=Stron

gly Agree]

0a . . 0 . . .

[Thereliabilityofthefactors

consideredinappraisalsyste

maresatisfac=Agree]

1.938 1.631 1.412 1 .235 -1.259 5.134

[Thereliabilityofthefactors

consideredinappraisalsyste

maresatisfac=Disagree]

.352 1.693 .043 1 .835 -2.966 3.669

[Thereliabilityofthefactors

consideredinappraisalsyste

maresatisfac=Neutral]

.602 1.595 .142 1 .706 -2.524 3.727

84

[Thereliabilityofthefactors

consideredinappraisalsyste

maresatisfac=Strongly

Agree]

-.749 1.546 .234 1 .628 -3.780 2.282

[Thereliabilityofthefactors

consideredinappraisalsyste

maresatisfac=Strongly

Disagree]

0a . . 0 . . .

Link function: Logit.

a. This parameter is set to zero because it is redundant.

Test of Parallel Linesa

-2 Log

Model Likelihood

Chi-Square

df

Sig.

Null

Hypothesis

66.685

General 37.770b 28.915c 15 .016

The null hypothesis states that the location parameters (slope

coefficients) are the same across response categories.a

a. Link function: Logit.

b. The log-likelihood value cannot be further increased after

maximum number of step-halving.

c. The Chi-Square statistic is computed based on the log-

likelihood value of the last iteration of the general model. Validity

of the test is uncertain.

Analysis:

From the above mentioned tests for hypothesis 1, the value of factor analysis and chi- square test

is greater than 0.05 which means there is a strong and positive relationship between design of the

appraisal form and performance appraisal. So, therefore we can accept the alternative hypothesis

(H1) and reject the null hypothesis (H0).

85

HYPOTHESIS 2

H0: There is no significant effect of Employee training and development on performance

appraisal system.

H1: There is a significant effect of Employee training and development on performance

appraisal system.

CHI-SQUARE TEST:

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

How often is appraisal carried out

in your organisation? * Appraisal

training helps me overcome weak

areas related to my job

50 100.0% 0 0.0% 50 100.0%

How often is appraisal carried out

in your organisation? * Training

provided by organization improves

my motivation and knowledge

50 100.0% 0 0.0% 50 100.0%

How often is appraisal carried out in your organisation? * Appraisal training helps me

overcome weak areas related to my job

Count

Crosstab

Appraisal training helps me overcome

weak areas related to my job

Agree

Disagree

Neutral

Strongly

Agree

How often is appraisal

carried out in your

organisation?

Once in 6 months 4 1 1 4

Once in a year 17 5 9 6

Total 21 6 10 10

86

Crosstab

Count

Appraisal training helps me

overcome weak areas

related to my job

Strongly Disagree

Total

How often is appraisal carried out

in your organisation?

Once in 6 months 0 10

Once in a year 3 40

Total 3 50

Chi-Square Tests

Value

df

Asymptotic

Significance

(2-sided)

Pearson Chi-Square 3.929a 4 .416

Likelihood Ratio 4.221 4 .377

N of Valid Cases 50

a. 7 cells (70.0%) have expected count less than 5. The minimum expected count is .60.

Symmetric Measures

Approximate

Value Significance

Nominal by

Nominal

Phi .280 .416

Cramer's V .280 .416

N of Valid Cases 50

87

How often is appraisal carried out in your organisation? * Training provided by

organization improves my motivation and knowledge

Crosstab

Count Training provided by organization

improves my motivation and

knowledge

Agree Disagree Neutral

How often is appraisal

carried out in your

organisation?

Once in 6 months 0 2 2

Once in a year 10 4 11

Total 10 6 13

Crosstab

Count

Training provided by organization improves

my motivation and knowledge

Strongly Agree

Strongly

Disagree

Total

How often is appraisal Once in 6 months 6 0 10

88

carried out in your Once in a year

organisation?

10 5 40

Total 16 5 50

Chi-Square Tests

Value

df

Asymptotic

Significance

(2-sided)

Pearson Chi-Square 7.652a 4 .105

Likelihood Ratio 10.070 4 .039

N of Valid Cases 50

a. 7 cells (70.0%) have expected count less than 5. The minimum expected count is 1.00.

Symmetric Measures

Approximate

Value Significance

Nominal by

Nominal

Phi .391 .105

Cramer's V .391 .105

N of Valid Cases 50

89

ORDINAL REGRESSION:

Case Processing Summary

N

Marginal

Percentage

How often is appraisal carried out in your

organisation?

Once in 6 months 10 20.0%

Once in a year 40 80.0%

I feel training delivered after appraisal

contributes in improving my performance

Agree 12 24.0%

Disagree 6 12.0%

Neutral 9 18.0%

Strongly Agree 18 36.0%

Strongly Disagree 5 10.0%

All my appraisal skills are revived by the

management on a daily basis

Agree 17 34.0%

Disagree 8 16.0%

Neutral 10 20.0%

Strongly Agree 6 12.0%

Strongly Disagree 9 18.0%

Training provided by organization improves my

motivation and knowledge

Agree 10 20.0%

Disagree 6 12.0%

Neutral 13 26.0%

Strongly Agree 16 32.0%

Strongly Disagree 5 10.0%

Appraisal training helps me overcome weak

areas related to my job

Agree 21 42.0%

Disagree 6 12.0%

Neutral 10 20.0%

Strongly Agree 10 20.0%

Strongly Disagree 3 6.0%

Valid 50 100.0%

Missing 0

Total 50

Model Fitting Information

-2 Log

Model Likelihood

Chi-Square

df

Sig.

Intercept

Only

47.843

Final 1.622 46.221 16 .000

Link function: Logit.

90

Goodness-of-Fit

Chi-Square df Sig.

Pearson .000 22 1.000

Deviance .000 22 1.000

Link function: Logit.

Pseudo R-Square

.924

Link function: Logit.

Parameter Estimates

Estimate

Std. Error

Wal

d

df

Sig.

95% Confidence

Interval

Lower

Bound

Upper

Bound

Thres [Howoftenisappraisa

hold lcarriedoutinyourorg

anisation = Once in

6 months]

-139.855 41183.820 .000 1 .997 -80858.659 80578.948

Locat [Ifeeltrainingdeliver -21.659 14657.397 .000 1 .999 -28749.628 28706.311

ion edafterappraisalcontr

ibutesinimprovingm

yperf=Agree]

[Ifeeltrainingdeliver -37.442 14367.643 .000 1 .998 -28197.504 28122.620

edafterappraisalcontr

ibutesinimprovingm

yperf=Disagree]

[Ifeeltrainingdeliver -41.234 .000 . 1 . -41.234 -41.234

edafterappraisalcontr

ibutesinimprovingm

yperf=Neutral]

91

Cox and Snell .603

Nagelkerke .954

McFadden

[Ifeeltrainingdeliver

edafterappraisalcontr

ibutesinimprovingm

yperf=Strongly

Agree]

-20.011 20359.720 .000 1 .999 -39924.330 39884.307

[Ifeeltrainingdeliver

edafterappraisalcontr

ibutesinimprovingm

yperf=Strongly

Disagree]

0a . . 0 . . .

[Allmyappraisalskill

sarerevivedbythema

nagementonadailyba

sis=Agree]

55.437 19543.709 .000 1 .998 -38249.529 38360.403

[Allmyappraisalskill

sarerevivedbythema

nagementonadailyba

sis=Disagree]

146.678 .000 . 1 . 146.678 146.678

[Allmyappraisalskill

sarerevivedbythema

nagementonadailyba

sis=Neutral]

18.850 18209.158 .000 1 .999 -35670.443 35708.144

[Allmyappraisalskill

sarerevivedbythema

nagementonadailyba

sis=Strongly Agree]

37.786 .000 . 1 . 37.786 37.786

[Allmyappraisalskill

sarerevivedbythema

nagementonadailyba

sis=Strongly

Disagree]

0a . . 0 . . .

[Trainingprovidedby

organizationimprove

smymotivationandkn

owledge=Agree]

-57.127 .000 . 1 . -57.127 -57.127

[Trainingprovidedby

organizationimprove

smymotivationandkn

owledge=Disagree]

-150.992 14456.476 .000 1 .992 -28485.165 28183.181

92

[Trainingprovidedby

organizationimprove

smymotivationandkn

owledge=Neutral]

-117.029 18912.768 .000 1 .995 -37185.372 36951.314

[Trainingprovidedby

organizationimprove

smymotivationandkn

owledge=Strongly

Agree]

-115.298 14967.809 .000 1 .994 -29451.664 29221.068

[Trainingprovidedby

organizationimprove

smymotivationandkn

owledge=Strongly

Disagree]

0a . . 0 . . .

[Appraisaltraininghe

lpsmeovercomeweak

areasrelatedtomyjob

=Agree]

-39.646 28731.325 .000 1 .999 -56352.008 56272.715

[Appraisaltraininghe

lpsmeovercomeweak

areasrelatedtomyjob

=Disagree]

30.233 40453.910 .000 1 .999 -79257.973 79318.440

[Appraisaltraininghe

lpsmeovercomeweak

areasrelatedtomyjob

=Neutral]

30.565 41122.151 .000 1 .999 -80567.370 80628.501

[Appraisaltraininghe

lpsmeovercomeweak

areasrelatedtomyjob

=Strongly Agree]

-79.485 39687.587 .000 1 .998 -77865.726 77706.757

[Appraisaltraininghe

lpsmeovercomeweak

areasrelatedtomyjob

=Strongly Disagree]

0a . . 0 . . .

Link function: Logit.

a. This parameter is set to zero because it is redundant.

93

Test of Parallel Linesa

-2 Log

Model Likelihood

Chi-Square

df

Sig.

Null

Hypothesis

1.622

General 1.622 .000 0 .

The null hypothesis states that the location parameters (slope

coefficients) are the same across response categories.a

a. Link function: Logit.

Analysis:

From the above mentioned tests for hypothesis 1, the value of factor analysis and chi- square test

is greater than 0.05 which means there is a strong and positive relationship between employee

training and development and performance appraisal. So, therefore we can accept the alternative

hypothesis (H1) and reject the null hypothesis (H0).

94

CHAPTER 6

FINDINGS AND CONCLUTION

SUMMARY OF FINDINGS:

From the analysis it was found that out of the total respondents used for data collection,

majority of them were male around 58% and rest were Female respondents.

It was found that majority of the respondents belong to the age group of 25 to 34 being 42%

while other 58% belongs to the various other sub groups.

From the analysis it is clear that around 44% respondents have completed their

graduation/diploma and 26% have completed their post graduation while other 30% are

under graduates.

It was found that about 64% of the employees are full – time workers while others 46% of

the employees fall under the category of part-time, regular and temporary employees.

Majority of the employees fall under the category of having working experience of more than

5 years where mostly these types of workers are doctors or senior nursing staff.

Performance appraisal carried out in the organization is once in a year as around 80% of the

employees agree for the same.

Majority of the employees says that the performance appraisal process is easy and efficient.

Out of total respondents around 44% have strongly agreed that the attitude of the employees

depend upon the performance evaluation results. Hence we can say that they are satisfied

with the performance appraisal results of the organization.

Based on the results of the above chart no. 4.8.2 we can conclude that the organization is not

partial amongst the employees and they do take proper consideration regarding the

employee’s performance without any bias between them.

95

From the above chart no. 4.8.4 it is clear that majority of the respondents have agreed that

there is still scope for improving the performance appraisal system in the organization.

Therefore, the organization can improve its performance appraisal system by taking

necessary corrective measures for further appraisal of the employees.

Majority of the respondents have agreed and they feel that all the goals and targets or

standards are clearly expressed and assigned to them by the management and hence they

have no issues regarding communication with the management.

From the above results based on the analysis we can interpret that around 48% of the

respondents feel that the standards set for the performance evaluation are pretty justifiable.

Majority of the respondents in the organization feel that the reliability of the factors

considered by the management for evaluating the performance appraisal results of the

employees is satisfactory. The management can further revise the factors, if necessary, to get

more accurate results.

Out of total 50 respondents, 34% of the employees have agreed that the performance

appraisal system set by the management is satisfactory and they have no objections regarding

such system.

As majority of the respondents have strongly agreed that the training delivered after appraisal

contributes in improving the employee’s performance. Hence, the organization can rely on

the same training methods and can improvise it if necessary.

Majority of the respondents has agreed that all of their appraisal skills are revived by the

management on the daily basis so that they can meet the objectives of the organization and

targets which are considered for performance appraisal more effectively.

Out of 50 respondents, 32% of the employees strongly agree that training provided by the

organization improves the motivation and knowledge of the employees. Hence, the

organization can provide more of such trainings to the employees to enhance their skills and

make them feel more confident about their job.

Around 40% have agreed that appraisal training given by the management to them helps

them to overcome the weak areas related to their job, enhances their skills and make them

more competent in doing their job.

Around 60% of the respondents strongly agree that the appraisal feedback provided by the

management is an important factor to improve their on-the-job performance. Hence the

96

organization should focus on providing more of such feedbacks to their employees to keep

them motivated.

Around 50% of the employees strongly feels that appraisal outcomes helps in diagnosing

both organizational as well as individual problems. Hence, the organization can opt for such

appraisal outcomes which can help them to retain more employees with their job in the

organization.

Out of 50 respondents, 38% of the employees agrees feel more recognized in the

organization when the management interacts with them and rewards the best performance of

the employees.

Around 28% of the employees agrees that the performance feedback provided by the

management post performance evaluation motivates the employees directly or indirectly to

perform better in their job.

Majority of the respondents feel that there exist a direct link between performance and pay in

the organization. The rewards given to the employees by the management is based on their

performance post performance evaluation results.

From the above chart no. 4.12.2, we can interpret that majority of the respondents feel that

the performance based pay is given on a flat rate to every employee without any bias.

Majority of the respondents strongly feel they are satisfied the way their performance is

appraised and rewarded. Therefore, in order to get more effective results the organization can

concentrate on the people who are dissatisfied and improvise the areas they feel has to be

revised.

From the above chart no. 4.12.4, we can interpret that majority of the respondents feel the

performance based pay they earn will have an impact on their future performance. Hence, the

organization should be more careful with the performance evaluation of the employees

because any error occurred by the management will de-motivate the employees to perform

better which will have a direct impact on their future performance.

As both the hypothesis testing results are greater than 0.05%, it shows that the design of the

appraisal form and training and development considered as the factors of the study amongst

all has a positive relationship and a strong impact on performance appraisal system set by the

organization.

97

IFB AUTOMATIC PVT

LTD

SUGGESTIONS:

Performance appraisal should be transparent, timely and effective for the employees.

Employees should be made more aware about the appraisal process and benefits.

To make the appraisal results more accurate the organization can also adopt a 360 degreeappraisal

method.

The organization should continue to provide same training or counseling to theemployees after

appraisal.

Employees should be given feedback regarding their appraisal. This will help them toimprove

their weak areas in performing their job.

The frequency of training program for the appraiser should be increased and thesesessions should

be made interactive.

Constant monitoring of the appraisal system should be done through discussions.

Employees should be informed that appraisal is not only related to monetary benefits butit can also

be non-monetary ones.

CONCLUSION:

Performance Appraisal is the process of assessing employee performance by way of comparing present

performance with already established standards which have been already communicated to employees,

subsequently providing feedback to employees about their performance level for the purpose of improving

their skills and knowledge through training andmotivation.

As the objectives of the study is to analyze the factors which contributes towards the effectiveness of

performance appraisal system, the results of the same has been analyzed with thehelp of questionnaire and

few statistical tests including factor analysis, based on the data collected it was found that all these factors

considered havea verystrong impact on the performance appraisal system of the organization.

Hence, the organization is doing a great job in implementing all these factors and keeping their

employees and working conditions of the organization extremely eminent.

BIBLIOGRAPHY

BOOKS:

Bascal, Robert. Performance Management. (New York: McGraw-Hill, 1999).

DelPo, Amy. The Performance Appraisal Handbook, Legal & Practical Rules for

Managers. (Berkeley, CA:Nolo, 2005).

Grote, Dick. The Complete Guide to Performance Appraisal. (New York: AMACOM, 1996)

ARTICLE:

Mert, Ibrahim Sani, 2011. "The Perception of the Employees toward the Outcomes and

Detriments of Performance Appraisal System," Business and Economics Research

Journal, Uludag University, Faculty ofEconomics and Administrative Sciences, vol.

2(3), pages 1-87, July.

ANNEXURE:

Company website:

www.ifbappliances.com

Company magazine

Internal resource

99

A study on effectiveness of performance appraisal of

employment ORIGINALITY REPORT

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4 DONALD P. SCHWAB. "BEHAVIORALLY ANCHORED RATING SCALES: A REVIEW OF THE LITERATURE", Personnel Psychology, 12/1975 Publication