A Project Report on Awareness level of performance appraisal system in organization by Babasab Patil

Awareness level of performance appraisal system in organization

EXECUTIVE SUMMARY IALCL is a member of the RSB Group and is the business of manufacturing of systems, aggregates and components for various Excavator models of Tata Hitachi Excavator like Main frames, Track frames, Oil and fuel tanks, Floor plates are manufacturing. IALCL has received ISO 9001 2000 Quality certification in a record time of eight months and that within a year starting commercial production. IAL construction & Agri Equipments Pvt.Ltd is situated in Bellur industrial area in Dharwad & 10 K.M away from Dharwad city. The company was incorporated as a private limited company on 28th September, 2000 in the name of “IAL PRIVATE LIMITED” and subsequently the name was changed to the present name “IAL Construction & Agri Equipments from September, 2002 with the capital investment of project Rs.4, 08, 54, 000/This unit bagged the order from TELCON for manufacturer and supply of various aggregates and systems since there were all required manufacturing facilities available at IAL, started production from October, 2002 the unit has achieved turnover of Rs. 7.85 crores in the year 2002-20. IAL Jamshedpur plant was manufacturing various aggregates and systems for construction equipments being manufactured by TELCON, a Jamshedpur based market leader in the field of earth moving and construction equipment manufactures. Later on TELCON decided to set up a separate production facility at Dharwad, Karnataka for the manufacture of its few models of equipments. Since, IAL was a single source for their various components being used in these models of construction equipments.TELCON advised to set a unit at Dharwad to meet the requirements of TELCON effectively. Thus the unit was fully dependent in IAL, Jamshedpur located at distance of 2,500 K.M away. Hence the supply of material subsequently causing problems to meet supply schedule given by TELCON, and because of this the IAL unit started its production in Dharwad to meet the schedule of TELCON.

OBJECTIVES OF THE STUDY: Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

1. To know awareness level of performance appraisal system in organization. 2. To assess the training and development needs of employees. 3. To know the awareness about the motivation through the performance appraisal system. 4. To know the importance of relationship between the superior and subordinate in performance appraisal of employees.

NEED FOR THE STUDY: 1. To prevent grievances and in disciplinary activities. 2. Provide information which helps to counsel the subordinate. 3. Provide information about the performance ranks basing on which decision regarding salary fixation, confirmation, promotion, transfer and demotion are taken. 4. Provide feedback information about the level of achievement and behaviour of subordinate. Research Methodology:1) Primary Data: Thrust has been on collection of primary data. Structured questionnaire has been used and discussed personally with the respondents to get their responses. 2) Secondary Data: Journals, websites etc. have been consulted for obtaining related information and also for cross checking of primary data.

Sample size:-100 Sample unit:-Production & administration departments. Sampling frame: - Employees falling in category of performance appraisal process.

FINDINGS:ď ś The awareness level of the performance appraisal system by the employees is at 58%.

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

 The development of new or better managerial qualities and skills identified by the training programme identified through performance appraisal are significantly important at 46%.  44% of the employees were strongly agreed that performance appraisal system motivates the employees to perform the job.  72% of the employees agree that help and guidelines provided by the reporting/reviewing officer are sufficient. SUGGESTIONS:Used a negotiated performance appraisal, by putting more responsibility to the worker for the performance appraisal. The major objective of performance appraisal should be too improve performance and solve problems rather than promotion and salary increment. Performance appraisal should lead to development activities.

CONCLUSION:Performance appraisal system in the corporate context today seems to be highly satisfactory. Most of the employees are satisfied with the existing system. Performance appraisal system is found to be highly significant in the corporate context. Performance appraisal should

also aim at the mutual goals of the employees and the organization. This is essential because employees can develop only when the organization’s interests are fulfilled.

INRODUCTION TO STUDY PERFORMANCE APPRAISAL:Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

According to Flippo, a prominent personality in the field of Human resources, â&#x20AC;&#x153;performance appraisal is the systematic, periodic and an impartial rating of an employeeâ&#x20AC;&#x2122;s excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of employees during a given period of time and planning for his future. Performance Appraisal is an objective system to judge the ability of an individual employee to perform his tasks. A good performance appraisal system should focus on the individual and his development, besides helping him to achieve the desired performance. This means that while the results are important the organization should also examine and prepare its human capital to achieve this result. This holds true even for new inductees. There is a strong linkage between induction, training and appraisal. In a large number of firms worldwide, a new recruit is expected to discuss his schedule of work in achieving his induction objective It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evaluate his contribution towards the achievements of the overall organizational goals.

Performance Appraisal can contribute to Firmâ&#x20AC;&#x2122;s Competitive Advantage:

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

The Performance Appraisal Process:Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

Objectives of Appraisal: Objectives of appraisal, as stated above, include effecting promotions and transfers, assessing training needs, awarding pay increases and the like. The emphasis on all these is to correct the problems. These objectives are appropriate as long as the approach in Appraisal is individual. Appraisal, in future would assume systems orientation. In systems approach, the objectives of appraisal stretch beyond the traditional ones.

Establish Job Expectations:

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

The second step in the appraisal process is to establish job expectations. This includes informing the employee what is expected of him or her on the job.

Design Appraisal Programme Designing an appraisal programme poses several questions, which need answers. They are: Formal Versus Informal Appraisal Whose Performance is to be assessed? Who are the raters? What problems are encountered? How to solve the problems? What should be evaluated? When to evaluate? What methods of appraisal are to be used? Formal versus Informal Appraisal Formal Appraisals usually occur at specified time periods once or twice a year. Formal appraisals are most often required by the organization for the purpose of employee evaluation. Informal Performance Appraisal can occur whenever the supervisor feels the needs for communication. Many organizations encourage a mixture of both formal and informal appraisals. The formal appraisal is most often used as primary evaluation. However, the informal appraisal is very helpful for more performance feedback. Informal appraisals should not take place of formal performance evaluation.

Whose Performance should be rated? To the question as to whose performance should be rated, the answer is Obvious employees. When we say employees, is it individuals or teams? Specifically, the rate may be Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

defined as the individual, work group, division or organization. It is also possible to define the ratee at multiple levels. For example, under some conditions, it may be desirable to appraise Performance both at the work group level for merit pay increases and at the individual level to assess training needs. Who are raters? Raters can be immediate supervisors, specialists from the HR department, department, subordinates, peers, committees, clients, self appraisals or a combination of several. Problems of rating Performance appraisals are subject to a wide variety of in accuracies and biases referred to as .rating errors.. These errors occur in the rater.s observations, judgement and information processing and can seriously affect assessment results. The most common rating errors are Leniency or Severity Central Tendency Halo Effect Rater Effect Primacy and Recency Effects Perceptual Set Performance Dimension Behaviour Spill Over Effect Status Effect

Solving Raters Problems The best way to over come these problems is to providing training to the raters. From a practical point of view, several factors, including the extent to which pay is related to performance ratings, union pressure, turn over rates, time constraints and the need to justify ratings may be more important than training, influencing the ratings that raters actually give. Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

This means that improving rating systems involves not just training the raters but rectifying outside factors such as union pressure. And it means that a rater training, to be effective, should also address real life problems such as the fact that union representatives will try to influence supervisors to rate everyone high. Training helps to improve the appraisal system by overcoming distortion that occurs due to the rater’s errors such as halo, leniency, central tendency and bias. Training of raters must help strengthen the factors that tend to improve accuracy of ratings and weaken those that lower the accuracy of the performance measurement. One of the steps in designing an appraisal programme is to determine the evaluation criteria. It is obvious that the criteria should be related to the job. The six criteria for assessing performance are: Quality Quantity Timeliness Cost effectiveness Need for supervision Interpersonal impact These criteria relate to past performance and behaviour of an employee. The first four qualities, quantity, timeliness and cost effectiveness are objective in nature. The last two needs for supervision and interpersonal impact are subjective.

Objective measures are quantifiable and are therefore highly useful in measuring the performance of an employee. But performance of employees should not always be evaluated against quantifiable measures. Subjective measures are dependent upon human judgement. They are prone to different kind of errors stated earlier such as leniency or severity, central tendency, halo and the like. To be useful, subjective measures must be based on a careful analysis of the behaviour viewed as necessary and important for effective job performance.

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

Timing of Evaluation How often should an employee be assessed? The general trend is to evaluate once in three months, or six months, or once in a year. 70% of the organizations conduct performance appraisal once a year, according to a survey conducted in 1997 by Arthur Anderson. Newly hired employees are rated more frequently than the older ones. Frequent assessment is better than phased evaluation. Feedback in the latter is delayed and the advantage of timely remedial measure by the employee is lost. Further evaluation gives constant feedback to the ratee, thus enabling him/her to improve performance if there is any deficiency. The performance of trainees and probationers should be evaluated at the end of respective programmes.

ERRORS OCCURRED INPERFORMANCE APPRAISAL:One of the biggest problems with performance appraisal is the fact that most people are not accurate Raters of others’ performance. When an employee’s performance rating does not reflect their true or actual performance, we say a rater error has occurred. The most common rater errors are:• Halo / Horn Effect • Central Tendency • Recency effect • Leniency • Bias

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

ERROR

DEFINITION Inappropriate generalizations from

EXAMPLE Manoj’s outstanding writing

Halo/horn

one aspect of an individual’s

ability caused his supervisor to

Effect

performance to all areas of that

rate him highly in unrelated

person’s performance

areas where his performance was

The inclination to rate people in Central

the middle scale even when their

tendency

performance clearly warrants a substantially higher or lower rating

actually mediocre. Because Rahul had a concern that he would not be able to deal with confrontation during an appraisal session, he rated all of his employees as “Meets Expectations.” Sudha kept no records of

Recency effect

The tendency of minor events that

critical incidents. When she

have happened recently to have

began writing the appraisals for

more influence on the rating than

her employees she discovered

major events of many months ago

that she could only recall examples of either positive or negative performance for

Attribution bias

The tendency to attribute

the last two months. Reema , attributes the successes

performance failings to factors

of her work group to the quality

under the control of the individual

of her leadership and the failings

and performance successes to

to their bad attitudes and

external causes

inherent laziness.

METHODS OF PERFORMANCE APPRAISAL:-

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

There are many different performance appraisal methods. For example, management, peer, subordinate, team, customer, and self-performance appraisals are all different types of appraisals. The 360 degree performance appraisal is the most effective method because it ensures anonymity, makes respondents accountable, prevents `gaming` of the system, uses statistical procedures, and identifies and quantifies biases. There are many problems that arise when conducting performance appraisals. Common rater-related errors: error of central tendency, leniency or strictness errors, similarto-me errors, Recency errors, and contrast and halo errors. The last to be addressed in the process of designing an appraisal programme is to determine method(s) of evaluation. Numerous methods have been devised to measure the quantity and quality of employee’s job performance. Each of the methods discussed could be effective for some purposes, for some organizations. None should be dismissed or accepted as appropriate except as they relate to particular type of employees. Broadly all approaches can be classified into. Past oriented methods and Future oriented methods Each group has several techniques. Some of them are explained in the following section. Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

Past oriented methods:1. Graphic Rating Scale: The term used to define the oldest and most widely used performance appraisal method. The evaluators are given a graph and asked to rate the employees on each of the characteristics. The number of characteristics can vary from one to one hundred. The rating can be a matrix of boxes for the evaluator to check off or a bar graph where the evaluator checks off a location relative to the evaluators rating. 2. Check Lists: The term used to define a set of adjectives or descriptive statements. If the rater believes the employee possessed a trait listed, the rater checks the item; if not, the rater leaves the item bank. Rating score from the checklist equals the number of checks. 3. Weighed Check Lists: The term used to describe a performance appraisal method where supervisors or personnel specialists familiar with the jobs being evaluated prepared a large list of descriptive statements about effective and ineffective behaviour on jobs. 4. Forced Choice Method: This appraisal method has been developed to prevent evaluators from rating employees to high. Using this method, the evaluator has to select from a set of descriptive statements, statements that apply to the employee. The statements are weighted and summed to at, effectiveness index.

5. Forced Distribution: The term used to describe an appraisal system similar to grading on a curve. The evaluators are asked to rate employees in some fixed distribution of categories. One way to do this is to type the name of each employee on a card and ask the evaluators to sort the cards into piles corresponding to rating. Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

6. Critical Incident Technique: The term used to describe a method of performance appraisal that makes lists of statements of very effective and very ineffective behaviour for employees. The lists are combined into categories, which vary with the job. Once the categories are developed and statements of effective and ineffective behaviour provided, the evaluator prepares a log for each employee. During the evaluation period, the evaluator records examples of critical behaviours in each of the categories, and the log is used to evaluate the employee at the end of the evaluation period. 7. Behavioural Anchored Rating Scales: The term used to describe a performance rating that focuses on specific behaviours or sets as indicators of effective or ineffective performance, rather than on broadly stated adjectives such as .average, above average, or below average... Other variations are: Behavioural observation scales. Behavioural Expectations Scales Numerically anchored rating scales 8. Ranking: The term ranking has been used to describe an alternative method of performance appraisal where the supervisor has been asked to order his or her employees in terms of performance from highest to lowest.

9. Paired Comparison: The term used to describe an appraisal method for ranking employees. First, the names of the employees to be evaluated are placed on separate sheets in a predetermined order, so that each person is compared with all other employees to be evaluated. The evaluator then checks the person he or she feels has been the better of the two on the criterion for each comparison. Typically the criterion is the employees over all ability

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

to do the present job. The number of times a person is preferred is tallied, and the tally developed is an index of the number of preference compared to the number being evaluated. 10. Narrative or Essay Evaluation: This appraisal method asks the evaluator to describe strengths and weaknesses of an employeeâ&#x20AC;&#x2122;s behaviour. Some companies still use this method exclusively, whereas in others, the method has been combined with the graphic rating scale.

Future Oriented Method:1. Management by Objectives: The management by objectives performance appraisal method has the supervisor and employee get together to set objectives in quantifiable terms. The appraisal method is worked to eliminate communication problems by the establishment of regular meetings, emphasizing results and by being an ongoing process where new objectives have been established and old objectives are modified as necessary in light of changed conditions.

2. Psychological Appraisals: Psychologists are used for evaluations; they assess an individualâ&#x20AC;&#x2122;s future potential and not past performance. The appraisal normally consists of in depth interview psychological tests, discussions with supervisors and a review of other evaluations. The psychologist then writes an evaluation of the employeeâ&#x20AC;&#x2122;s intellectual, emotional, Motivational and other related characteristics that suggest individual potential and may predict future performance.

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

3. Performance Interview: Performance Interview is another step in the appraisal process. Once the appraisal has been made of employees, the raters should discuss and review the performance with the ratees, so that they will receive feedback about where they stand in the eyes of the superiors. Feedback is necessary to effect improvement in performance, especially when it is adequate. Specifically Performance Interview has three goals. To change behaviour of employees whose performance does not meet organizational requirements or their own personal goals. To maintain the behaviour of employees who perform in an acceptable manner and To recognize superior performance behaviour so that they will be continued.

INDUSTRY PROFILE History: In 1975, Mr. R. K. Behera, a young mechanical engineer from NIT, Jamshedpur, hailing from a humble service oriented middle class family, shunned the security of a job and plunged into the hurly burly of high-risk and high-reward business arena and founded International Auto in Jamshedpur with 15 people and 500 square feet of workspace Inspired and motivated by the benevolent ideals of the legendry JRD and obsessed with an incorrigible and irrepressible passion to create a world class industrial edifice, R. K. Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

Behera along with his brother S. K. Behera set about meticulously crafting the present-day RSB enterprise brick by brick. Toughened by the early trials and tribulations and propelled by nothing-isimpossible spirit of the Behera brothers, RSB has now blossomed into a pulsating and throbbing global engineering institution in automotive components and systems and construction equipment aggregates. RSB now boasts of manufacturing facilities in six different locations in India and one in the USA with 85,000 square meters of workspace. Latest technologies and human resources are working together around the world passionately to create an enduring institution. Founder and Chairman Mr. R. K. Behera, Co-Founder and Managing Director Mr. S. K. Behera and Joint Managing Director Mr. Shailendra Behera now spearhead RSB. All RSB manufacturing units are ISO / TS16949, ISO: 14001 and OHSAS: 18001 certified.

MILESTONE

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

RSB GROUP OF COMPANIES RSB comprises of six different companies, namely, RSB Transmissions (I) Ltd., Miller Brothers Manufacturing (USA), I-Design Engineering Solutions Ltd., International Auto Ltd., IAL Construction & Agri Equipments Pvt. Ltd and ivitesse Technologies Pvt. Ltd. Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

The

Group

Companies

philosophy of

providing

efficient

services

function quality

with

the

products

and

Each of the Group companies is equipped with state-of-the-art technology and latest IT infrastructure that enables smooth functioning. The Group's core capabilities range from design to manufacturing of aggregates and systems related to commercial vehicles, passenger cars, construction equipments, and farm and off-highway equipments. The Group is also in the trailer manufacturing business. The Group has chalked out an ambitious plan keeping the future in mind. International Finance Corporation, the private sector arm of the World Bank has also partnered to facilitate expansion and growth plans of the group. The Group clientele includes the leading names of industry. Some of major Group clients are: TATA Motors, Mahindra, Telcon, CATERPILLAR, ITEC, JOHN DEERE, FIAT, JCB, LOMBARDINI and AGCO.

CLIENTS OF THE RSB GROUP

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

Philosophy and Human Face:Knowledge Enterprise:

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

We strongly believe that the power of knowledge and information is supreme and these are the most precious assets of an institution. They enable optimum decision-making, inspire innovation, increase responsiveness, reduce costs, improve performance and ultimately confer competitive edge. To build a knowledge enterprise we constantly encourage and provide opportunities to all our employees to unlearn and relearn to sharpen their innate capacity and remain perpetually relevant to the organization and the society. Learning is an endless mission across the Group so that it is imbued with an innate capacity to continually reinvent.

Benevolent Creative Leadership:

We echo deep concern for our employees. We practice fair employee engagement and disengagement practices and emphasize on empowerment of people, creating a culture of trust and honest and above all encourage a mindset in pursuit of excellence. The tenets of our leadership are anchored on sensitivity, openness, encouragement, forgiveness and discipline.

Road to Perfection is Endless:

We firmly believe that all human endeavors will always have scope for improvement. That is why 100-metre sprint record is regularly broken and Everest repeatedly scaled in lesser time. As an institution, we are perpetually restless to improve and innovate. To encourage innovation, we consciously practice out-of-the box or blue ocean thinking. We aim to

attain

the

status

where

lateral

thinking

all

pervasive

and

automatic.

Corporate Social Responsibility: We are very passionate about preserving environment and developing human capital in our immediate neighborhood in our own little way. Social responsibility and obligation is a valuable goal for us rather than being a mere self-serving business means. Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

QUALITY ASSURANCE RSB lays great importance to quality in all aspects of organizational activities. Our guiding philosophy in this respect is â&#x20AC;&#x201C; The Race to Quality Has No Finish Line. All the manufacturing units of the RSB Group including the Miller Brothers Manufacturing, Michigan, and USA have received ISO 9002, QS 9000, and TS 16949 certifications as applicable. The Group has also attained ISO 14001 certification for Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

Environmental Management System and OHSAS 18001 certification for Occupational Health and Safety Assessment Series. In addition, IAL Plant 2 manufacturing facility at Jamshedpur has received welding certification of DIN 18800 Part 7 Clause E as per European standards. Till date this is the only unit in India to have received this certification. The Group is in the process of institutionalizing TQM practices and aims to challenge Deming Award in 2010.

EVENTS Autoexpo â&#x20AC;&#x201C; Jan 2008, Delhi

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

Foundation Laying Cermony in Orissa

Hannover Fair - Sep 2006, Hannover, Germany

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

LOCATIONS OF THE COMAPNIES Corporate Office 2nd Floor, Nyati Millenium, Viman Nagar, Pune, Maharshtra - 411014, India Phone: +91 - 20 - 66024844 / 66024845 Fax: +91 - 20 - 26630411

RSB, Orissa N2/40,IRCVillage, Nayapalli, Bhubaneswar-751015 Orissa, India Telefax : +91 - 674 â&#x20AC;&#x201C; 2550590

RSB / IAL Pune Gat No. 908, Pune-Nagar Road, Sanaswadi, Tal.: Shirur, Pune - 412208, India

RSB, Uttrakhand Plot No.23, Sector - 11, (TATA Vendor Park) Udham Singh Nagar, Pantnagar - 263153 Uttrakhand,

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

Phone: +91 - 2137- 669300 Fax : +91 - 2137- 669320

India Phone: +91 - 5944 – 664303

Jamshedpur NS 25, VI Phase, Industrial Area, Gamharia Jamshedpur - 832108, India Phone: +91 -657- 6622858 06 Fax : +91 - 657- 2200663, 6622903

IAL, Chennai Gat No 23,24, Sipcot Industrial Park, Katrambakkam Irungattukotai, Tal: Sriperambudur Kanchipuram, Chennai - 602105, India Phone: +91 - 44- 47225000 Fax: +91 - 44- 47115024

IALCL, Dharwad IAL Construction & Agri Equipments Pvt Ltd. Plot No - 184, Industrial Area, Belur, Dharwad - 580011, India Telefax : +91-836-2486037

Miller Brothers Manufacturing Miller Brothers Manufacturing P.O. Box 68 24425 M-60 West Homer, MI 49245 United States Phone: + ( 517) 568-4171

COMPANY PROFILE •

Name of the company

: IAL Construction & Agri Equipments Pvt,

Ltd(IALCL) •

Type of firm

: Private Limited

•

Location

: Works Plot No. 184, Bellur Industrial Area, Dharwad – 580011. Karnataka Works Office 1st Floor, KIADB Utility Building, Bellur Industrial Area, Dharwad – 580011. Karnataka

•

Telephone

Babasabpatilfreepptmba.com

: 2486037/059/072 27

Awareness level of performance appraisal system in organization

•

Fax

• Date of incorporation

: 2486037 : Incorporated vide ROC No 25-15345 as a Pvt Ltd to present Name on 17, Jan 2001

•

Year of planning

: September, 2000

•

Year of production

: September, 2002

•

Units

: 6(all in India)

•

Products manufactured

: Main frame-- Ex- 100 Main frame-- Ex-200 Track frame – Ex -100 Track frame – Ex – 200 JD Items – Ex - 100 Ex – 200

•

Constitution

: Private Limited Company Memorandum and Articles of Association

•

Annual turnover

: 31.45crores as on 2008-09

•

Total area of the unit

: 4 acres (90rn x 180m) and total built up area is (20rn x 89m) a and power connection of 150 KVA

•

Number of employees

: 150 employees

•

Website

: www.rsbglobal.com

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

VISION & MISSION STATEMENT:-

VISION To be amongst the most admired Indian companies by providing quality, cost effective automotive components and services to customers with a significant global presence.

MISSION

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

To be the market leader by providing customer delight through world- class quality, service and cost- effectiveness in a progressive, innovative and challenging environment. We endeavour to provide an enriching, rewarding, and environment friendly work experience to our employees in an achievement- based, high- performed culture. We will provide maximum satisfaction to our stakeholder.

PRINCIPLE OF THE COMPANY The company is following 5s technique of house keeping. They are as follows:Nos.

The

Mean what

SEIRI

SEGREGATE

SEITON

ARRANGEMNET

SEISO

CLEANLINESS

SHIKESTO

MAINTAINANCE

SHISUKE

DISCIPLINE

MANAGEMENT AND PROMOTERS 1. MANAGEMENT: The board of directors consisting of the senior and experienced persons having ample experience in manufacturing, marketing and finance affairs, manages the company.

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

Further, Chairman and Managing Director have good track record in the manufacturing of sheet metal pressed and machined components fabricated and machined components as well as in the field of gear box and propeller shaft components and assemblies for leading customers in the country. The company is having a decentralised organization structure so that every person can independently and effectively take decisions for efficient management of the company.

2. MANAGEMENT BODY •

Plant head

: Mr. Gautam Rout

•

Personnel & Administration

: Mr. Manas Nayak

•

Quality Department

: Mr. Matthews

•

Maintenance & Project department : Mr. Sanjeev Joshi

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

PRODUCT PROFILE The company has obtained orders from TELCON Ltd for various systems and aggregates having application in their construction and earth moving equipments. Previously IAL Jamshedpur, a leading company of IAL Group, directly supplied these components. Since they were facing problem in supplying aggregates/assemblies from Jamshedpur, and they discussed with TELCON and finally it was decided that IAL Jamshedpur would supply loose components to IAL who assemble the various components and final product will be supplied to TELCON. Thus order was placed on IALCL, Dharwad who is purchasing components from IAL, Jamshedpur and value after value addition products are supplied to TELCON.

COMPONENTS FOR DIFFERENT MODELS: Floor parts are the first product manufactured by the company. Detailed descriptions of various products manufactured by the IALCL are as follows: Ex-100(10 TON)

Ex-200(20 TON

1. Track Frame

2. Main Frame

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

3. ARM

4. ARM 5. Track Guard

JD-315(7 TON) 1. Sliding Frame 2. Fabricated Front Axle

Ex-120(12 TON) 1. Link

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

PRODUCTS AND ITS APPLICATION 1. MAIN FRAME: It is an important component of excavators body comprises with enter frame, tail frame, various brackets, battery box etc. In fact it is a revolving frame on which is the engine, cabin, canopy oil and fuel tanks, counter weights, boom etc are mounted. It revolves 3600 to provide more flexibility in the operations excavators. 2. TRACK FRAME: It is fabricated and machined frame on which track is mounted for movement on the ground, on the top of this components main frame is mounted. It comprises with left and right side frame assembled with lower frame.

3. ARM FRAME: It is the connecting fabrication between the boom and the bucket/toll for concerned operations movement pf arm is affecting through hydraulic cylinder mounted on the boom.

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

DEPARTMENTAL STUDY An overview is taken about various departments working in the company. Different functions are headed by the departmental heads, which are responsible for day-to-day operations and functioning of the departments. The company has different departments, viz: 1. Purchase and Stores department 2. Production department 3. Sales department 4. Quality control department 5. Maintenance department 6. Design and development department 7. Human Resource department 8. Finance department 9. Security department

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

PURCHASE & STORES DEPARTMENT PURCAHSE DEPARTMENT Purchase department is the department which is engaged in purchase of raw materials ordered by the production department as and when required. This department sees that the production must not be stopped because of storage of materials. The purchase department orders the goods as per its requirements based on the customer demand. The department maintains the record of all the suppliers. The purchase manager heads the purchase department who takes the responsibility to purchase the raw materials. He along with the quality inspector examines the raw materials as per the standards required.

IMPORTANT FUNCTIONS OF PURCHASE DEPARTMENT  To purchase materials as and when required.  To place the order to right supplier.  To purchase the materials of better quality at cheaper rate  To avoid dead investment in purchase of materials.  The most important function of purchase department is to see that materials must be procured in time so that the production does not stop. The purchase and stores department in IAL consists of the following hierarchy.

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

HOD PURCHASE

Purchase assistant

Store assistant

Purchase staff

Store staff

The working of the purchase department is as follows: Supplier selection Supplier evaluation Re-evaluation Analysis

ď ś Supplier selection: 1. Approved supplier charts will be given o all suppliers existing on June 03 2. Selection of new supplier & its identification as an approved supplier based criteria such as ISO certified company. Customer approved company, management. 3. Updating approved suppliers lists. 4. Preparation pf purchase order in accordance with dispatch plan/indent. 5. Change the delivery schedule: Intimation to suppliers for any change in delivery schedule quality modification etc verbally/written. 6. Verification of materials will be done by store/QA/intended person. 7. If materials get rejected/short fall will be informed to suppliers to replace or to take back the rejected material through proper invoice/delivery challen.

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

ď ś Supplier evaluation: 1. Evaluation is carried out through supplier rating half yearly on the basis of quality and delivery.

2. If the supplier rating falls below the specified criteria respective supplier will be informed to take corrective action. 3. If supplier falls continuously two times below the criteria, then such supplier are deleted from the approved suppliers. 4. If materials are not available with the existing supplier as a emergency or one time supplier for B/O and consumable items. For development product purchase order can be placed on non approved suppliers.

ď ś Re-evaluation: 1. All the approved suppliers are re-evaluated once in a year using the same questionnaire of supplier selection to know their existing capability.

2. Once in a year approved supplier list will be revised on the basis of revaluation approved by COO.

ď ś Analysis: The analysis is made by referring the ratings which are made for the evaluation of the suppliers. The ratings are as follows.

Supplier rating

Grade

Criteria

<75% 75%-80% 81%-90% 91%-100%

D C B A

Poor Average Good Excellent

On the basis of these ratings the analysis is made and sent to management, which are helpful for the management to maintain proper control over working of the department. Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

STORES DEPARTMENT Stores department plays a very important role in the success of a company. It holds the stocks of goods and provides them to the required department at correct time. It helps the company to earn more profit by providing goods which are required and to carry on the production. Stores department is very essential in this industry because if the production stops in this industry due to some problem in machinery. They can repair it by taking essential goods from stores and keep the production in swing. The store department holds the stock of raw material; machinery spares parts, stationery items. It holds the materials by making different sections for different kinds of materials which will help the store keeper to retrieve the keeper also put the identification label which contains the type of materials, size of materials and also the serial number which is used to make the entry in the stores ledger, which will help the store department to know the stock of goods available.

REGISTER MAINTENANCE In this industry when the goods are required by different departments, they are sending the good required note to the store department when the stores department receives the note, they will provide the material by entering them in the goods issued register. In that they are mentioning the date if issued, time and to which department goods are issued. They are also maintaining goods required register in which they are mentioning the goods, which are required by the stores department to maintain the adequate stock. This is approved by the industry in order to purchase the materials, which are required. They are also maintaining â&#x20AC;&#x2DC;Goods Receivedâ&#x20AC;&#x2122; register, in which they are maintaining the record of all those goods, which are purchased or received by the department. And they are also maintaining from where they have purchased those goods and in which quantity.

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

They are also maintaining ‘Goods Received’ register, in which they are maintaining the record of all those goods, which are purchased or received by this department. And they are also maintaining from where they have those goods and in which quantity. This department also prepares ‘Stock Ledger’. This contains the data regarding the materials, which are issued, and the total stock which is present. This will help enable the materials required by the industry. These are the registers which are prepared by the industry

PRODUCTION DEPARTMENT Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

Production department plays an important role in any industry; products are produced according to the specification provided by the planning department. The production department in IAL has the hierarchy through which the work flows. This hierarchy is as follows: HOD PRODUCTION

Shift co-ordinator

Area In charge

Associates

Production department in IAL Construction & Agri Equipmement Pvt.Ltd. It is equipped with sophisticated machines suitable for manufacturing earth moving equipment with highly experienced work force. Different machines both manual as well as computerised work all together in IAL Construction & Agri Equipments. Pvt.Ltd. The different machines used are welding machines, robotic machines, boring machines, radial drill machines, welding manipulate, grinding machines.

ď ś Production process

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

The production process is the process through which the raw materials are converted into finished goods with the help of man, machine, materials, and money. In IAL also raw material such as steel sheets are converted into finished goods i.e. main frame, track frame etc. So the purchase of raw materials is the first step of production before producing the final product. Let us go through the raw materials of this company.

ď ś Raw material The main raw materials for this industry are steel. In order to produce different type of final material, the company require different hinds of steel, for example to make a iron chair, different steels are required. In the same way to produce final material such as frames different steels are required which will be having certain specification. So the purchase department purchases the steel bu specifying their specification. Steel sheet of 3mm, 6mm, 8mm, 10mm, 12mm, 14mm, 16mm, 20mm, 22mm, 28mm. And also grades of steels are required, they are: Grade 1: Milled steel IS 206.2B Grade 2: Salima steel of 350 HI Grade 3: Salima steel of 450 HI The company purchases raw materials raw materials from different suppliers and it is mainly based on the quality, price of the steel. They are purchasing these raw materials from well known suppliers such as: Hosemann Goa Pvt. Ltd. Hydro lines India, Bangalore. Anand Udyog- Belgaum. Techno Trade Link- Belgaum. Jindal Steel- Ballary. These raw materials which are purchased and stored in store department which will send for production when required.

ď ś Production process:

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

When the raw materials are purchased and stored in store department, and production manager will take the necessary raw material as and when require for production. The production process of producing products as follows. Material in coming

Inspection and storage

Gas cutting and shearing

Bending

Assembling and Track welding

Final welding

Drilling and Tapping

Matching

Final inspection

Description of the flow chart: The first step of production is purchase of steel and in this step the steel and materials required for production are purchased from different suppliers. This is done by the Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

purchase department. When the materials such as steel sheet are purchased, they are sent for inspection to check whether the materials are sent according to specification and after inspection the materials are sent for storage. After storage the next step is cutting and in this stage the steel sheets are brought and cutting is made according to the plan which is required to produce final product. As soon as the cutting of materials is sent for bending and this is made according to the requirement of the product. Bending is made according to the specification by using measurement which are sent by the customer. This is done by using modern bending machines. As soon as bending finishes the next step is assembling and welding. In this stage the various steel sheets which are cut and bended has brought together and assembled in a frame to make the product and when the assembling finishes the welding is made in this stage itself. Because the parts which are assembled should not come out. After the welding is completed the final welding will be made, and in this stage all the parts are welded once again, so that the perfect final product must be produced. This is done because in the process certain parts which are assembled will not be welded properly, so in final welding the assembled but not parts are welded to get a good final product. The next step is drilling and tapping. In this stage the drilling and tapping is made because this helps in the assembly of final product such as Hitachi. This is nothing but making a whole in the material which helps for the customer to make assembly of the product. The last step is matching. In this step the materials which are produced to sent for smoothening of the surface. This is made because during welding some of the parts will not be finished smoothly, so in order to smoothen the surface of the final material matching is made. It helps the product to look good and it will also help to make assembly very easy for the customer.

After matching, checking of the final product is made. In this inspector will check the important parts angle of final materials. If any deviation occur the material will be sent again for production, if not it will be sent for dispatch. The IAL produces different type of product, such as: Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

Main frame

Ex-100 and Ex-200

Track frame

Ex-100 and Ex-200

Oil track

Lx-100 and Ex-200

Fuel track

Ex-100 and Ex-200

Quality of product ISO 9000 standard certification has been achieved for producing good quality of product.

SALES DEPARTMENT Sales department is the department which is very essential in every organization to sell the goods to the customer. The sales department in IALCL does all the work from receiving the order, verifying whether order is acceptable or not, and also dispatching the order. The products manufactured by IALCL are sold only to TELCON. Sales department in IALCL is headed by Mr. Suchintya Shee. The sales department consists of three level, they are sales head, sales assistant and sales staff. The hierarchy of the sales department is a follows. Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

HOD SALES

SALES ASSISTANT

SALES STAFF OBJECTIVES; These are the important objectives of the sales department in IALCL, which will ultimately help the organization to achieve its objectives. 1. Satisfy customer needs 2. Achieving long run relationship with customer. The sales manager is the head of the department, he is responsible for the customer satisfaction, quality inspection is done for all orders placed and complaints if any and follow up actions is taken to avoid such complaints.

The main activities or steps involved by sales department. 1. Receive customer purchase order. 2. Verify whether acceptable or not. 3. Preparation of dispatch plan and submitted to customer after getting approval. 4. Monitoring dispatches as per plan 5. Preparation of daily basis, dispatch details or dispatch report, daily basis reviewed if any short fall. 6. Arrangement of transportation. 7. Preparation of invoice. 8. Monitor customer complaints with the help of concerned department. Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

9. Monthly analysis. 10. Customer satisfaction survey reprt collection and review with COO(Chief Operation Officer)

ď ś Advertisement As the company IAL is the oldest supplier of TELCON, so it need not require any advertisement to sell its products. And also it has been established in Dharwad to satisfy the TELCON. So the only customer of this industry

QUALITY CONTROL DEPARTMENT Quality refers to the sum of the attributes or properties that describe a product. These are generally expressed in terms of specific product characteristics such as length, width, colour, specific gravity etc. In IAL the quality control department checks the quality of the product which are coming in, products during processing, and also the products after producing. The quality control department consists of three persons and the hierarchy of this department is as follows. Quality assessment manager

Babasabpatilfreepptmba.com

Assistant quality manager

Quality inspector

Awareness level of performance appraisal system in organization

Working process: The working of the quality department starts before the production starts. The department starts working when the raw material enters into the company gate. The quality inspection is made in three levels, they are follows:1. Incoming material inspection. 2. During process inspection. 3. Final inspection.

1. Incoming material inspection: As soon as the raw material enters, the quality department checks whether the raw materials are according to the specified specification or no and if they are not according to specification, then the materials will be rejected. This inspection is done for all the materials which are enters the factory gate and in case of stationary item materials are just checked whether they are in proper condition or not. After inspection the inspector makes the invoice which contains the details regarding type of materials entered the company gate and also their quantity and the name of the person who has inspected it.

2. During process inspection: The inspection is also done when the work is in progress. For this purpose the quality department sets the parameters for the quality to be maintained, and the workers who are working are given training to follow the parameter and maintain the quality. During production some people use shortcuts of working, which will ultimately affect the end product. So the inspection is done to maintain the quality of the end product. When the products move from one stage to another the approval is done by the inspector regarding the work quality.

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

3. Final inspection When the works in progress are converted into final product, the final inspection is done by checking the important portion of the product. This is made because it is not possible to check each and every part, and if it is done it consumes lot of time.  Documents maintained by this department are as follows:1. Quality plan: This checks the methods and process, including the type of instrument and measuring purpose. 2. List of calibrated measuring purpose. 3. Job card (QF/Prod.03) 4. Customer complaints(QF/QA/02) 5. Corrective action implemented(QF/corr/5) 6. Calibrated plan for measuring devices. 7. Calibrated history card for each device. 8. Quality policy.

 Objectives of Quality control department:1. To satisfy the customer need and acceptation. 2. To minimise customer complaints. 3. To reduce in-process and final rework cost. 4. To reduce cost of quality at customer.

Quality policy: IAL Construction & Agri Equipments Pvt.Ltd., is committed for customer delight by manufacturing and supplying components. Aggregates and for agree and construction equipments. The IAL shall achieve the above through: Consistent supply of quality product in right time at comparative price.  Efficient and effective utilization of space, man, machine and technology.

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

ď ś Continual improvement in process. Work practice and effective implementation of quality management system in the plant and at suppliers and through total quality management (TQM). ď ś Development of total quality people (TQP) by providing adequate training and total employees involvement.

MAINTENANCE DEPARTMENT Maintenance department is the department, at which is very necessary in IAL because through this department only the machines are maintained from major break down and it will reduce the losses which would occur due to delay in production. This department is headed by the maintenance head. There are 8 members working in the maintenance department out of which all are skilled. The work of the maintenance department is to maintain all the machinery. The hierarchy of this department is as follows:Maintenance Department head

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

Senior engineer

Shift supervisor

Electrician

Mech Fitter

Helper

Objectives: The objective of this department is to reduce break down hours/time and add to provide all resources for maintaining machines.

Principles: The following principle is adopted in IAL:ď ś Prevention is better than cure: It means suppose if the machines working satisfactorily if we donâ&#x20AC;&#x2122;t do preventive maintenance it may go for minor or major breakdown which will leads to huge production

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

loss. So the IAL is following this principle to maintain the machine properly and avoid losses.  A Stitch in time saves the nine: According to this the company studies the machine thoroughly and keeps important or critical parts in correct manner. So that during free time of machine, the repair of the machine can be done.

Functions:  To carry out preventive maintenance of machines and equipments a per preventive schedule plan. This can be done weekly, monthly and quarterly basis also.  To attend breakdown of machine and equipments in less time.  To maintain critical parts, so that the breakdowns can be reduced.  To conduct training for new machinery installation.  To maintain safety equipments to reduce accident. Mainly three types of maintenance are done in IALCL, they are: Daily maintenance  Periodical maintenance  Yearly maintenance

 Daily maintenance: In daily maintenance they are maintaining the baring sound, gear box, etc. These are the maintenance which is done daily because if these aren’t done daily it will hamper the process in due course. So the daily maintenance is done.  Periodical maintenance:

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

Periodicals maintenance are the maintenance which are done periodically i.e. monthly or quarterly. These are done in order to avoid heavy damages to machinery and to maintain the production quality. They are doing baring check up, etc. Once in a month and also in three months. ď ś Yearly maintenance: The IALCL is also doing yearly maintenance by shut down and checking up machines etc. This is done to check the machinery working capacity and enhance the life of the machineries. This is also done in order to maintain the production quality of the industry.

DESIGN AND DEVELOPMENT DEPARTMENT Design and development department is the department which makes the design of the product, whenever new order is received from the customer. This department prepares the plan by seeing specification of the product which will help the company to produce new product. This plan act as a rough sketch to produce and it will also help the new method of production. Development Head 54

Babasabpatilfreepptmba.com

Assistant development Associates

Awareness level of performance appraisal system in organization

The design and development is based on the product i.e. a new product or the product in process.

Process steps

Activity

Responsibility

1. Receive enquiry

Receive information, enquiry for a new

Development manager

2. Feasibility

product a) study of new product and any

Development manager

review

modification, whether to take the job or ot b) After decision is taken, if Yes costing is

Development manager

done. If no, regret letter is sent to the customer.

Authorised person

c) Prepare quotation and send to the customer. Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

3. Contract review 5. Development of

To carry out after receipt of order a) As per customer requirement

Development manager Development manager

sample 6. Hand over to

b) Arrangement for customer inspection a) Order is approved and regularized,

Development manager

production

development of fixture, if not developed before the product development. b) Hand over all documents (job card, work instrument, quality plan) along with related fixtures. c) Maintain register for issuing

7. Customer

d) Update the development list Keep the master copy of drawing and issues,

drawing control

and it whenever required as per the process.

Developing manager

HUMAN RESPURCE DEPARTMENT Human resource is a most valuable unique asset of an organization. According to Lean the term human resource refers to the total knowledge, skills, and abilities, talents of an organization work force as well as the values, attitudes and feelings of individuals group. Human resource department undertake all the activities relating to the management of employees such as leave, maintenance of record of each and every worker, time keeping provident fund, holidays etc. This department maintain the record of 204 workers, 54 are permanent, and 200 are casual. The hierarchy of this department present in IAL is as follows: DEPUTY GENERAL MANGER

HUMAN RESOURCE MANAGER

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

ASSISTANT HR The following are the various functions which are performed by human resource department in IAL.

Provident fund: Human resource department maintains the record of provident fund. The provident fund is a social security scheme and this scheme is maintained according to the employee’s provident fund and 1952. Under this all the employer’s contribution is 12% and employee’s contribution is 12%. In all 24% is paid on provident fund, they have to pay this on or before 15th of every month. The company is providing loans on provident fund, such as medical loans, marriage loans, housing loans etc.

Performance Appraisal: In IAL the people who are working efficiently are encouraged by giving promotion. For performance appraisal each and every person’s record are maintained by IAL. If the human resource manger finds any vacant place, then they will fill the vacant place by giving promotion to the people who are working efficiently. It is based on their performance. For this evaluation chart is prepared, in this persons attendance is recorded and based on their attendance record and experience they will assign the points to the worker and the worker who gets more points will be prompted to vacant place. If he facing from health problem then the second highest point getting person is selected.

Recruitment: Recruitment can be defined as the the process of searching prospective employees and stimulating and encouraging them to apply for jobs in an organization. In other words main object of man power is to ascertain how many candidates are required for the organization. Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

After ascertaining the number of the candidates that is required the next step to find out the places where required human resources are available and also attracting them to apply for the job in the organization. This process is known as recruitment. According to E.B. Flippo, “Recruitment is a process of searching prospective employees and stimulating them to apply.”

Sources of Recruitment: The company is recruiting its employee through following sources. 1. Internal sources 2. External sources

1. Internal sources: IALCL recruits its employees through internal sources. Under this they recruit its internal own people through promotions and transfers, it means that when vacancies are arise, those who have been already working in institution are promoted. Promotion leads to shifting of employees to higher position carrying higher responsibilities, facilities etc. On the other hand, transfer means shifting of an employee from one job to another. At the time of transfer, it is ensured that an employment to be transferred to the new job is capable of performing it. Infact transfer do not involves any drastic changes in the responsibilities and status of an employee. Internal sources of recruitment are as follows: Present permanent employees.  Present temporary or casual employees.  Retrenched of retired employees.  Departments of deceased, disabled, retired and present employees. 2. External source: Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

The company is also recruiting employees through external sources because internal sources alone cannot meet the requirement of employees. So the enterprise has in top to external sources for various positions. Running organizations have got to recruit employees form outside for filling the positions whose specification cannot be met by the present employees and for meeting the additional recruitment of man power. External sources of recruitment are as follows: Advertisement in newspapers etc.  Employment exchange and agencies.  Recommendation

Selection procedures: The selection procedure consists of series of steps. At each step facts may come which may lead to rejection of the applicants. It is a series of successive hurdles, which an applicant must cross. Management selects the right person for right job at right time. The main objective of selection is to choose the best qualified and suitable candidates for performing the job most effectively, satisfying employee’s wants as well as the fullest development of this potential are a part of these objectives. Following are the steps on selection: Inviting application  Selection procedure  Verification of documents  Orientation training  Department assignment  Inviting application:

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

This is the first step in the selection recruitment. This has done because suitable candidates resume is not available in the data bank, so the company invites applications through advertisement. After getting resume they will organise written test and taking interview fro short listed candidates.  Selection procedure: A. Short listed candidates will be called for final interview. The final interview panel head of human resource and head of concerned department. B. After final selection of the candidates appointment letter will be sent to the candidates.

 Verification of documents: A. Candidates will send a copy of appointment letter with this acceptance. B. When the candidates come for joining the company, verification of original documents and collect reliving certificates and medical certificates.  Orientation training: After joining the candidates with experience eill under go, and orientation training programme to understand the company, policy, procedure, system and working.  Department assignment: After completion of orientation training programme on the job training, the candidates will be posted to concerned department. He will be offered all the required facilities after joining or after being posted to the concerned department.

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

FINANCE DEPARTMENT Finance is an activity, which is concerned with the raising of funds and proper use of such funds by a business house for the purpose of making profit there from. Business finance deals with acquisition of funds and its proper administration in business enterprises. The finance department in IAL plays a very important role in the success of the company. This department makes planning, organizing, controlling, directing of funds whenever necessary. There are two types of finance requirements, they are:1. Long term finance 2. Short term finance of working capital fiancĂŠ.

1. Long term finance: The finance department raises the long term fiancĂŠ from the head office itself. Whenever the long term finace is required, this department will inform the top level management and top management will arrange for the finance.

2. Short term finance: The working capital id the short term finance which is raised by the finance department. In IAL the most of the working capital finance is raised from the reserves itself

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

and if it is not sufficient they will raise from the STATE OF BANK INDIA commercial bank, Hubli.

The working of finance department is in a systematic manner. It flows on the basis of the following hierarchy. Chief operating officer

Senior Finance Manager

Executive Assistant

Assistant

Objectives:  Profit maximization.  Maintenance of adequate liquid assets.  Ensuring effective, efficient and economic utilization of finance.  Assuring fair return to the investors.  Building up resources for growth diversification and prosperity.

Functions:  To decide how much cash must be invested in fixed assets and current assets.  To forecasts the financial needs of the organization.

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

 To see to it that adequate supply of cash is available at all time for the smooth running of the business.  To decide where, when and how to acquire funds to meet the firms financial needs.  Handling sales tax, central excise, entry tax and professional tax etc.  To see to it that there is continuous cash flow and inflow without any interruption.  To negotiate with banks, financial institutes and other suppliers of credit. So as to obtain the funds at most favourable terms.  To prepare trial balance, profit and loss account and balance sheet.  To ensure supply of adequate funds to all parts of organization.

Following are the different assets in IALCL: Land and building  Shade  Plant and machinery  Motor vehicles  Furniture and fixture  Electrical installation  Tools and equipments. The “AUDITOR” is must for a company having more than 40 lacks. The auditor of the company is SHARP & TANNAN ASSOCIATES

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

SECURITY DEPARTMENT Security department in IALCL is the department which secures the company environment from the misconduct of the outsider. It prevents the people from entering the company which will disturb the workers who are working in the company, and it is also risky. All workers are checked after their respective shifts at the gate, all the materials before entering the campus is checked by the security officer and is recorded in the register maintained by them (which contains date, time etc). No visitors are allowed in the campus without the prior permission from the office. There are totally 6 securities, 3 securities for each shift.

Duties of the Security: The security department in IALCL has to perform some duties. They are as follows:•

Duty is to safe guard the people from the outsider.

•

Duty is to make the entry of the people who enters the company premises.

•

Duty is to check the goods which come inside the company premises.

•

Duty is to check the people who go out of the company.

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

LITERATURE REVIEW

The purpose of literature review is to identify the problem statement, understand the secondary data that has been gathered in the field of study and make new findings on the problem statement.

PROBLEM STATEMENT:The project aims to study the performance appraisal system followed by the IAL Construction and Agri Equipments Pvt.Ltd. The study aims to highlight the significance of the performance appraisal system on the corporate level. Thus the study tries to establish the link between performance appraisal system and organizational effectiveness.

Data Collection:In this research report the data has been collected through two sources, those are primary data collection and secondary data collection.

Primary Data Collection. Primary data consists of asking the questions and direct meet is used in research study, primary data includes â&#x20AC;˘

Direct interviews of each of the department sources of the organization.

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

•

Discussion with all departments.

•

Observation made during the project sessions.

Secondary data •

Study of related IALCL Journals.

•

Some sort of information is collected from the website.



To highlight the importance of recognizing and maintaining strong relationship between training and performance evaluation Both the supervisor and employee should recognize that a strong relationship exists

between training and performance evaluation. Each employee should be allowed to participate in periodic sessions to review performance and clarify expectations. Both the supervisor and the employee should recognize these sessions as constructive occasions for two way communication. Sessions should be scheduled a head of time in a comfortable setting and should include opportunities for self assessment as well as supervisor feedback. These sessions will be particularly important for new employees who will benefit from early identification of performance problems. Once these observations have been shared, the supervisor and employee should develop a mutual understanding about areas for improvement, problems that need to be corrected and additional responsibilities that might be undertaken. When the goals are identified, a plan for their achievement should be developed. The plan may call for resources or support from other staff members in order to meet desired outcomes. The model discussed is an example of a performance appraisal system that can be applied to top level, middle level and lower level employees. Employees feel that they are

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

taken seriously as individuals and that the supervisor is truly concerned about their needs and goals.

Benefits to a researcher from review: The literature gives an insight into the importance of the performance appraisal system in an organization. It has helped me to formulate the problem statement. It has helped me to formulate the objectives of the study. It has also served as a secondary

SCOPE OF PERFORMANCE APPRAISAL •

To help each employee understand more about their role and become clear about their functions;

•

To be instrumental in helping employees to better understand their strengths and weaknesses with respect to their role and functions in the organization;

•

To help in identifying the developmental needs of employees, given their role and function;

•

To increase mutuality between employees and their supervisors so that every employee feels happy to work with their supervisor and thereby contributes their maximum to the organization;

•

To act as a mechanism for increasing communication between employees and their supervisors. In this way, each employee gets to know the expectations of their superior, and each

superior also gets to know the difficulties of their subordinates and can try to solve them. Together, they can thus better accomplish their tasks;

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

•

To provide an opportunity to each employee for self-reflection and individual goalsetting, so that individually planned and monitored development takes place;

•

To help employees internalize the culture, norms and values of the organization, thus developing an identity and commitment throughout the organization;

•

To help prepare employees for higher responsibilities in the future by continuously reinforcing the development of the behaviour and qualities required for higher-level positions in the organization;

•

To be instrumental in creating a positive and healthy climate in the organization that drives employees to give their best while enjoying doing so; and

•

To assist in a variety of personnel decisions by periodically generating data regarding each employee.

LIMITATIONS OF THE STUDY:The study is constrained only to performance appraisal system. Analysis of primary data is done on the assumption that the answers given by the respondents are true and correct. Time and Resource Constraints.

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

DATA ANALYSIS AND INTERPRETATION Table1. Are you aware of Performance Appraisal System followed in your company? Particulars Yes No

Respondents 58 42

Percentage 58% 42%

INTERPRETATION:According to survey, it was find that 58% of employees aware about performance appraisal system. Because the company should make arrangements to get aware to the employees.

Table2. Does the management spend considerable amount of time and attention for the Performance appraisal process? Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

Particulars Considerable time Not much of time Donâ&#x20AC;&#x2122;t know

Respondents 56 30 14

Percentage 56% 30% 14%

INTERPRETATION:According to survey, it was found that 56% of management spend considerable time for performance appraisal process. Because the management spend considerable time for the performance appraisal in the organizational context.

Table3. Does your supervisor give you regular feedback on your Performance? Particulars Babasabpatilfreepptmba.com

Respondents

Percentage 71

Awareness level of performance appraisal system in organization

Yes No

64 36

64% 36%

INTERPRETATION:According to survey, it was found that 64% of the supervisor giving regular feedback on the employees performance. Because the company should give more feedback on the performance on the employees and it should make the employees work better.

Table4. Supervisor provide you in terms of actual data on your performance Vs targets Particulars Yes No

Babasabpatilfreepptmba.com

Respondents 56 44

Percentage 56% 44%

Awareness level of performance appraisal system in organization

INTERPRETATION:According to survey, it was found that 56% of the supervisors providing in terms of actual data on employeesâ&#x20AC;&#x2122; performance v/s targets. Because the organization providing more data regarding their performance of work against the targets given by the company.

Table5. Supervisor listen to you and consider your Opinion before making decisions regarding your Performance Particulars Yes No Canâ&#x20AC;&#x2122;t say

Babasabpatilfreepptmba.com

Respondents 50 30 20

Percentage 50% 30% 20%

Awareness level of performance appraisal system in organization

INTERPRETATION:According to survey, it was found that 50% of the employees listen and consider opinion by making decision regarding employeeâ&#x20AC;&#x2122;s performance. Because by listening and considering their opinion before making decisions regarding performance, it should improve the work load.

Table6. The performance appraisal system helps in Particulars Promotion Salary Retention/Termination Recognition of individuals performance Identification of poor performance

Babasabpatilfreepptmba.com

Respondents 26 50 10 10 04

Percentage 26% 50% 10% 10% 04%

Awareness level of performance appraisal system in organization

INTERPRETATION:According to survey, it was found that performance appraisal system helps in salary at 50%. Because performance appraisal system can convert the work level form lower to the higher i.e. promotion

Table7. Appraise to employees Particulars Manager Supervisors Self appraisal 360 appraisal

Babasabpatilfreepptmba.com

Respondents 20 70 04 06

Percentage 20% 70% 04% 06%

Awareness level of performance appraisal system in organization

INTERPRETATION:According to survey, it was found that 70% of the employees appraises by the supervisors. In the main organization the managers are appraises to the employees because the supervisors are main source of the organization.

Table8. Satisfaction with the person who appraises you

Particulars Yes No

Babasabpatilfreepptmba.com

Respondents 54 46

Percentage 54% 46%

Awareness level of performance appraisal system in organization

INTERPRETATION:According to survey, it was found that 54% of the employees satisfied with the person that appraises them. Because the supervisors can satisfies the employees by the appraising in the working condition.

Table9. The content of the performance appraisal system relevant Particulars Yes No

Babasabpatilfreepptmba.com

Respondents 68 32

Percentage 68% 32%%

Awareness level of performance appraisal system in organization

INTERPRETATION:According to survey, it was found that content of the performance appraisal system is relevant at 68%. For the organization the content of performance appraisal system is relevant because by observing the subject matter of the employees in the working condition and it also provide an opportunity to grow in the future.

Table10. Help and guidance provided to you by your reporting / reviewing officers is Particulars

Respondents

Percentage

Highly sufficient

72%

Sufficient

20%

Insufficient

06%

Highly insufficient

02%

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

INTERPRETATION:According to survey, it was found that help and guidance provided to employees by reporting officer or reviewing officer are highly sufficient at 72%%. For the organization the help and guidance providing is sufficient because by help & guidance, it should identify the developmental needs given their role and function.

Table11. The development of new or better managerial qualities and skills through the training programme, identified through performance appraisal are. Particulars Significantly important Impartment Not so importance Not at all

Babasabpatilfreepptmba.com

Respondents 46 40 14 00

Percentage 46% 40% 14% 00%

Awareness level of performance appraisal system in organization

INTERPRETATION:According to survey, it was found that the development of new or better managerial qualities and skills identified by the training programme identified through performance appraisal are significantly important at 46% and important at 40%. Because by developing the new or better managerial qualities, it should be improve the performance and evaluating behaviour of the employees. Table12. The performance appraisal system motivate the employee to perform better in your job Particulars Strongly agree Agree Neutral Disagree Strongly disagree

Babasabpatilfreepptmba.com

Respondents 44 32 20 04 00

Percentage 44% 32% 20% 04% 00%

Awareness level of performance appraisal system in organization

INTERPRETATION:According to survey, it was found that 44% of employees strongly agree for the performance appraisal system motivate the employee and 32% of employees agree to performance appraisal system motivate the employees. Because performance appraisal system motivates the employees by advising about the organization through the feedback from their performance.

Table13. The training programme conducted for:-

Particulars Strongly helps in enhancing your job knowledge and individual skill Helps in overcoming the shortcomings identified in you Does not help in any way

Babasabpatilfreepptmba.com

Respondents 74 20 06

Percentage 74% 20% 06%

Awareness level of performance appraisal system in organization

INTERPRETATION:According to survey, it was found that 74% to conduct programme for strongly helps in enhancing the job knowledge and individual skill. Because training programme foster the growth of an employeesâ&#x20AC;&#x2122; performance.

Table14.Thinking about frequency of performance appraisal.

Particulars 1 Year 6 Months 3 Months Each month

Babasabpatilfreepptmba.com

Respondents 48 20 24 08

Percentage 48% 20% 24% 08%

Awareness level of performance appraisal system in organization

INTERPRETATION:According to survey, it was found that 48% of employees thinking that performance appraisal can be done in 1 year and 24% of employees thinking for 3 months. Because it should have more time to get the performance of the employee.

Q15. Performance appraisal is able to identify the training needs Particulars Strongly agree Agree Neutral Disagree

Babasabpatilfreepptmba.com

Respondents 60 30 06 04

Percentage 60% 30% 06% 04%

Awareness level of performance appraisal system in organization

INTERPRETATION:According to survey, it was found that 60% of strongly agree and 30 % agree by the performance appraisal system to identify training needs. Because by identifying training needs to develops the new managerial qualities and increases the communication skill in the performance of the work.

FINDINGS: The awareness level of the performance appraisal system by the employees is at 58%.  56% of the employees agreed that management spend considerable amount of time to the performance appraisal process.  50% of the employee agreed that performance appraisal system helps for the salary.  70% of the employees agreed that supervisors are appraises to employees to do better performance in the organization.  54% of the employees agree that satisfied with the person who appraises them.  68% of the employees agreed that the content of the performance appraisal system is relevant. Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

 All employees agreed on the frequency of the performance appraisal. It can be concluded that organization’s conduct appraisal once in a year (48%).  The development of new or better managerial qualities and skills identified by the training programme identified through performance appraisal are significantly important at 46%.  74% 0f the employees agreed that the training programme conduct strongly helps to enhancing the employees knowledge & individual skills.  60% of the employees were strongly agreed that performance appraisal was able to identify the training needs.  44% of the employees were strongly agreed that performance appraisal system motivates the employees to perform the job.  Supervisors providing in terms of actual data on employees’ performance v/s targets at 58%.  In the company 64% of the supervisors will give regular feedback on performance of the employees.  Supervisors will listening to the employees and consider their opinion before making decision regarding employees’ performance. 50% of employees agreed.  72% of the employees agree that help and guidelines provided by the reporting/reviewing officer are sufficient.

SUGGESTIONS & RECOMMENDATIONS: Performance appraisal should start with validation, people need positive feedback and validation on regular basis.  Used a negotiated performance appraisal, by putting more responsibility to the worker for the performance appraisal.  An effective negotiation technique, where an employee to appraised are asked to bring the list to the performance appraisal interview consisting of:•

Areas where the employee think they performs extremely well.

•

Areas where worked has shown recent improvement.

•

Areas where the employees feels weak.

Is recommended…. Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

 The major objective of performance appraisal should be too improve performance and solve problems rather than promotion and salary increment.  Performance appraisal should lead to development activities.

Appraisal helps the employee and the management to know the level of employee’s performance compared to the standard/pre-determined level. Performance appraisal should also aim at the mutual goals of the employees and the organization. This is essential because employees can develop only when the organization’s interests are fulfilled.

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

BIBILOGRAPHY:â&#x20AC;˘

Books:-Marketing research: Mr.Donald s. Tull & Dell I.Hawkins:6th Edition, Prentice-Hall India, New Dehli, India. 2007

â&#x20AC;˘

Websites: - http://www.rsbglobal.com http://www.sdribd.com

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

QUESTIONNAIRE Dear respondent,

Name of the employee : __________________________________ Designation

: __________________________________

Age

: ____________________________

Cell No

: ____________________________

Total year of experience: ____________________________ For the questions that follow, please tick whichever option you think is applicable. Q1. Are you aware of Performance Appraisal System followed in your company? A.YES Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

B. NO

Q2. Does the management spend considerable amount of time and attention for the performance appraisal process? A. Considerable time B. Not munch of time C. Don’t know Q3. Does your supervisor give you regular feedback on your Performance? A. Yes B. No Q4. Does your supervisor provide you in terms of actual data on your performance Vs targets? A. Yes B. No Q5. Does your supervisor listen to you and consider your Opinion before making

decisions regarding your Performance? A. Yes B. No C. Can’t say Q6. The performance appraisal system helps in A. Promotions B. Salary C. Retention / Termination D. Recognition of individual’s Performance Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

E. Identification of Poor Performance

Q7. Who appraise to you?

A. Manager B. Supervisor C. Self appraisal D. 360 degree appraisal E. Any other specify Q8. Are you satisfied with the person who appraises you? A. Yes B. NO Q9. Is the content of the performance appraisal system relevant? A. Yes B. No Q10. Help and guidance provided to you by your reporting / reviewing officers is A. Highly sufficient

C. Insufficient

B. Sufficient

D. Highly insufficient

Q11. The development of new or better managerial qualities and skills through the training programme, identified through performance appraisal are. A. Significantly important

C. Not so important

B. Important

D. Not at all

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

Q12. Does the performance appraisal system motivate the employee to perform better in

your job? A. Strongly agree

C. Neutral

B. Agree

D. Disagree

F. Strongly disagree Q13. The training programme conducted for:A. Strongly helps in enhancing your job knowledge and individual skill. B. Helps in overcoming the shortcomings identified in you. C. Does not help in any way Q14. How frequently do you think can Performance Appraisal be done? A. 1 Year

C. 3 Months

B. 6 Months

D. Each month

Q15. Performance appraisal is able to identify the training needs? A. Strongly agree B. Agree C. Neutral D. Disagree E. Strongly disagree Q16. Do you have any suggestions regarding your Companyâ&#x20AC;&#x2122;s appraisal process? _____________________________________________________ ___________________________________________________________________ ___________________________________________________________________ Thank You Very Much!! Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

CODING SHEET S L N O

Qn 1

Qn 2

Qn 3

Qn 4

Qn 5

Qn 6

Qn 8

Qn 7

Qn 9

Qn 10

Qn11

Qn12

Qn13

Qn14

Qn15

1 0 1 1 1 2 1 3 1 4 1 5 1 6 1 7 1 8 1 9 2 0 2 1 2 2 2 3 2 4 2 5 2 6 2 7 2 8 2 9 3 0 3 1 3 2 3 3 3 4 3 5 3 6 3 7 3 8 3 9

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

4 0 4 1 4 2 4 3 4 4 4 5 4 6 4 7 4 8 4 9 5 0 5 1 5 2 5 3 5 4 5 5 5 6 5 7 5 8 5 9 6 0 6 1 6 2 6 3 6 4 6 5 6 6 6 7 6 8 6 9 7 0 7 1 7 2 7 3 7 4 7 5 7 6 7 7 7 8 7 9 8 0 8 1 8 2 8 3 8 4 8 5

Babasabpatilfreepptmba.com

Awareness level of performance appraisal system in organization

8 6 8 7 8 8 8 9 9 0 9 1 9 2 9 3 9 4 9 5 9 6 9 7 9 8 9 9 1 0 0 T O T A L

5 8

4 2

5 6

3 0

6 4

3 6

5 6

4 4

5 0

2 0

2 6

5 0

1 0

2 0

7 0

5 4

6 8

3 2

7 2

2 0

4 6

4 0

1 4

4 4

2 0

7 4

2 0

4 0

2 0

2 4

6 4

Babasabpatilfreepptmba.com