Performance Appraisal in Tata Motors.pdf

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INDEX1.The first section of my report deals with a detailed company profile. ACKNOWLEDGEMENT 32. Shilpi Saxena . this section attempts to givedetailed information about the company and the nature of it‟s functioning. awesome work need it for my project work 1 year ago Reply Post Comment Subscribe to comments Performance Appraisal in Tata Motors Document Transcript 1. I have conducted a research study to evaluate the process ofperformance appraisal at Tata motors. Lastly we would like to thank our Dean ma‟am Monica Lal for her continuousencouragement and guidance throughout our project. Its products includepassenger cars. fourth-largest truck manufacturer and second-largest busmanufacturer by http://www. 2012Performance Appraisal in Tata Motors Surabhi Agarwal Abhishek Gangwar Fatima Abbas Aarti Chaudhary Eram Khan IIPM 9/24/2012 2. In this report. Tata Motors Limited formerly is an Indian multinational automotive manufacturing companyheadquartered in Mumbai. conclusions. About the Company 64. etc.net/surabhi786/report-1-14576928 32/41 .Our sincere thanks to Prof. Thank you 6 months ago Reply Harsh Panchal How can i download this. My research project dealswith “Performance Appraisal as carried out at Tata motors ”. In this section.We would like to thank HR head of Tata Motors Mrs.. Research 307. Kindly send a soft copy to [email protected]/11/2014 Performance Appraisal in Tata Motors mansore hello very tanks very very 5 months ago Reply Jean Bintu Very informative. As a matter of fact. Recognition of people as a valuable resource in the organizationhas led to increases trends in employee maintenance.The fourth and final section of this report consists of extra information that I related to the maincontents of the report. Executive Summery 43. 4. These acknowledgements are only a fraction of regards towardstheir gestures. process and significanceof performance appraisal. trucks.suggestions and feedback.We express our deep sense of gratitude to ma`am whohas been a source of inspiration throughout the course of this work with her inestimable advice andmoral encouragement. job security.com. Performance Appraisal 125. I have studied&evaluated the performance appraisal process as it is carried out in the company. organizational structure. India and a subsidiary of the Tata Group. These annexure includes the Questionnaire on the basis of which theprimary data was collected and research study was conducted. EXECUTIVE SUMMARYManaging human resources in today‟s dynamic environment is becoming more and morecomplex as well as important. 5. Bibliography 48 3. this section also contains my findings. vans and coaches. It includes the company‟shistory: its activities and operations. a brief conceptualexplanation to performance appraisal is given. Our Group members who have given an immense support throughout thecourse of the Project and rest who all are attached to this Project directly or Indirectly. It contains the definition. Annexure 458. Monica Ahuja who helped me in completionof my project. TATA MOTORS 6. Performance appraisal in Tata motors 246. without co-operation.slideshare. It is the worlds eighteenth-largest motorvehicle manufacturing company.. no thought could be coinedinto real action. etc. ACKNOWLEDGEMENTWords are only representations of our regards and gratitude that we have towards our actions andtheir inherent associations. Consistent motivation and invaluable support throughout any project is an issue thatcannot quantitatively measured.The second section deals with performance appraisal.In the third section of my report. 5 million vehicles in India since 1954.85 million. In 2010. sales. Tata launched the Indica in 1998.Tata Daewoo is the second-largest heavy commercial vehicle manufacturer in South Korea. which ended in 1969. serviceand spare parts network comprises over 3500 touch points. the company manufactured its first commercial vehicle in 1954 in acollaboration with Daimler-Benz AG.The second-generation Tata Indica. as well as in Argentina. later renamed Tata Daewoo. South Africa. Sri Lanka and Nepal. Bhutan. was a major improvement over the previous version and quickly became a mass-favorite. namely India. the worlds cheapest carTata entered the commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz of Germany.The company is establishing a new plant at Sanand (Gujarat). Tata Motors acquired the British car maker Jaguar Land Rover. In May 2009Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo. After years of dominating the commercial vehicle market in India. Although initially criticised by auto-analysts.Tata Motors has auto manufacturing and assembly plants in:1) Jamshedpur2) Pantnagar3) Lucknow4) Sanand5) Dharwad6) PuneIndia. DaewooCommercial Vehicles Company. launched in April2012. Bangladesh. Tatas dealership. TataMotors has jointly worked with Tata Daewoo to develop trucks such as Novus and World Truckand buses including GloBus and StarBus.Tata Motors principal subsidiaries include Jaguar Land Rover. Though Tata ispresent in many countries it has only managed to create a large consumer base in the IndianSubcontinent. Tata Daewoo and TataHispano. the United Kingdom.In 2004 Tata Motors acquired Daewoos South Korea-based truck manufacturing unit. Tata Estate (1992.Tata has dealerships in 26 countries across 4 continents. Tata Motors was ranked as Indias 3rd Most ReputedCar manufacturer in the Reputation Benchmark Study . Spain and South Africa. Its stock trades onthe Bombay Stock Exchange and the New York Stock Exchange as TTM. Tata Motors hasproduced and sold over 6. Tata formed a joint venture with the Brazil-based Marcopolo. jointly developed with subsidiary Tata Daewoo). Thailand and the United Kingdom.Tata Motors entered the passenger vehicle market in 1991 by launching the Tata Sierra.Russia and Senegal . The success ofIndica played a key role in the growth of Tata Motors. The acquisition formed part of the companys plan to enhance its styling anddesign capabilities. Tata Motors acquired a 21% controlling stake in the Spanish bus and coachmanufacturer Hispano Carrocera. Tata will start developing a new line tomanufacture http://www. the first fullyindigenous Indian passenger car. 1994) and TataSafari (1998. Tata Sumo (LCV.01/11/2014 Performance Appraisal in Tata Motors volume. major improvement in the Road infrastructure was done through the National HighwayDevelopment Project. Tata Motors continued its market area expansion through theintroduction of new products such as buses (Starbus & Globus.slideshare. Thiswas mainly to cater to the international market and also to cater to the domestic market where a 10. It plans to establish plants in Turkey.In 2008.The company‟s manufacturing base in India is spread across: Jamshedpur (Jharkhand) Pune (Maharashtra) Lucknow (Uttar Pradesh) Pantnagar (Uttarakhand) Dharwad (Karnataka). Ukraine. its excellent fueleconomy.Auto (Cars) Sector. a light commercial vehicle). Bangladesh.Tata Motors also successfully exported large quantities of the car to South Africa.In 2006. one of the best selling cars in the history of the Indianautomobile industry 7.net/surabhi786/report-1-14576928 33/41 . OperationsTata Motors has vehicle assembly operations in India. powerful engine and an aggressive marketing strategy made it one of the best selling 8. In 2012. Originally a manufacturerof locomotives. Tata Motors announced it will invest around Rs 600 crore ondeveloping Futuristic Infantry Combat Vehicles in colloboration with DRDO. South Africa. South Korea.Tata Motors is among the top three in passenger vehicles in India with products in the compact. Tataacquired full ownership of Hispano Carrocera in 2009.Tata also has franchisee/joint venture assembly operations in Kenya. After the launch of three more vehicles. Tata Motors acquired Daewoo Commercial Vehicle Company of SouthKorea. Tata Nano. Tata Motors is a cross-listed company. a multiutility vehicle.In 2005. Tata has a growingconsumer base in Italy. 9. It has the 3rd largestSales and Service Network after Maruti Suzuki and Hyundai. the SAARC countries and the Middle-East by the end of 2009. :To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata Novusfrom Daewoo‟s (South Korea) (TDCV) platform. tomanufacture fully built buses and coaches. named IndicaV2. Spain and South Africa. Indias first sports utility vehicle). Tata Motors has more than 250 dealerships inmore than 195 cities across 27 states and 4 Union Territories of India. Tata plans to leverage on the strong presenceof TDCV in the heavy-tonnage range and introduce products in India at an appropriate time. In 2010.midsize car and utility vehicle segments. manufacturer of theJaguar. In 2012. In 2004. a stationwagon design based on theearlier TataMobile (1989). Indonesia and EasternEurope. Debuting inSouth Korea. A newer version of the car. Land Rover and Daimler luxury car brands. from Ford Motor Company.Thailand.Tata Daewoo . Tata Motors acquired an 80%stake in the Italy-based design and engineering company Trilix for a consideration of€1. jointly developed with subsidiaryHispano Carrocera) and trucks (Novus. Tata Motors surpassedReliance to win the coveted title of Indias most valuable brand in an annual survey conductedby Brand Finance and The Economic Times. cars in the history of the Indian automobile industry. Tata Marcopolo Bus.Tata Motors has been ranked 314th in the Fortune Global 500 rankings of the worlds biggestcorporations for the year 2012. Products 1. Recruitment 2. We shall briefly review each. Performance Appraisal is a process. Comparing the actual with the standards 5. Measuring Performance 4. “Performance Appraisal is the systematic. Communicating the Standards 3. sales. Volvo and Navistar into the Indian market. PROCESS The process of performance appraisal: 1.net/surabhi786/report-1-14576928 34/41 . Induction 4. Tata Starbus Low Floor 1610 2. or associates carry significant weight. 13. Lack of reliability 3. The more logical task is to identify those appraisal practices that are (a) most likely toachieve a particular objective and (b) least vulnerable to the obstacles already discussed.The market place for talented. the feeling that they are being judged by unfairly high standards. and so on. Errors in Rating 2. Typically.product / process / organization knowledge and experience for new staff members. Selection 3. in the sense of getting things done through people. Selection The selection is the process of ascertaining whether or not candidates possess the requisite qualifications. or managerial positions.The best-known techniques will be treated most briefly.is an essential part of every manager‟s responsibility. even consideringthe available battery of appraisal techniques. potential.FORCED-CHOICE RATINGLike the field review. A member of the personnel orcentral administrative staff meets with small groups of raters from each supervisory unit andgoes over each employees rating with them to (a) identify areas of inter-rater disagreement. 14. it takes time to develop „cultural awareness‟. Discussing the appraisal 6. policies and purposes of the organization.employees in some organizations are being http://www. teachers. average. or to deal with. But attempting to avoid these pitfalls by doingaway with appraisals themselves is like trying to solve the problems of life by committingsuicide. In most selection situations. InductionInduction is the technique by which a new employee is rehabilitated into the changedsurroundings and introduced to the practices. and (c) determine that each rater conceives the standardssimilarly. It is scientific and objective study. INTRODUCTION TO HUMAN RESOURCE MANAGEMENTHuman Resource (or personnel) management. (b)help the group arrive at a consensus. this technique asks the rater to write a paragraph or more covering anindividuals strengths. Also. Yet. training and experience required. Tata Marcopolo buses in the Delhi BRT 3. this technique was developed to reduce bias and establish objectivestandards of comparison between individuals. a graphic scale assesses a person on the quality and quantity of his work (ishe outstanding. It is the systematic examination of the strengths and weakness of an employee in terms of his job. 15. The main purpose of Performance Appraisal is to secure information necessary for making objective and correct decision an employee. which no member of any senior managementteam would disagree with. the reality for many organizations is that their people remainundervalued. PERFORMANCE APPRAISAL 12. Performance Appraisal 5. skilled people is competitive and expensive. According to Flippo. Electric vehicles 11. Formal procedures are used in the study. 3. but it is more consistent andreliable. essay appraisals from formeremployers. 2. Establishing performance standards 2. weaknesses. Military vehicles 5. 4. periodic and animportant rating of an employee‟s excellence in matters pertaining to his present job and hispotential for a better job. 5. above average. Commercial vehicles 4. Training & Development Recruitment The process of recruitment begins after manpower requirements are determined in terms of quality through job analysis and quantity through forecasting and planning. It consists of all formal procedures used in working organizations and potentialof employees. It mayalso include specific performance items like oral and written communication. under trained and underutilized. Taking Corrective Action LIMITATIONS 1. It is an ongoing and continuous process wherein the evaluations are arranged periodically according to a definite plan. or unsatisfactory?) and on a variety of other factorsthat vary with the job but usually include personal traits like reliability and cooperation.01/11/2014 Performance Appraisal in Tata Motors competitive and fuel efficient commercial vehicles to face the competition posed bythe entry of international brands like Mercedes-Benz.FIELD REVIEWThe field review is one of several techniques for doing this. Multiple objectives 5. Lack of knowledge METHODS OF PERFORMANCE APPRAISALThe foregoing list of major program pitfalls represents a formidable challenge. Taking on new staffcan be disruptive to existing employees. but many organizations find itadvantageous to establish a specialist division to provide an expert service dedicated to ensuringthat the human resource function is performed efficiently.slideshare. particularlythose involving professional.Before relating the specific techniques to the goals of performance appraisal stated at the outsetof the article.”CHARACTERISTICS 1.“People are our most valuable asset” is a cliché.MANAGEMENT BY OBJECTIVESTo avoid. ESSAY APPRAISALIn its simplest form. FUNCTIONS OF HUMAN RESOURCE MANAGEMENT Following are the various functions of Human Resource Management that are essential for the effective functioning of the organization: 1. taking them more or less in an order of increasingcomplexity.GRAPHIC RATING SCALEThis technique may not yield the depth of an essay appraisal. Negative approach 4.WHAT IS “PERFORMANCE APPRAISAL”?Performance Appraisal is defined as the process of assessing the performance and progress ofan employee or a group of employees on a given job and his / their potential for futuredevelopment. but it does not involve the intervention of a thirdparty. slideshare. defining.Rating Errors in Performance AppraisalsPerformance appraisals are subject to a wide variety of inaccuracies and biases referred to asrating errors. which can be discussedobjectively and constructively.and for the purposes of self-auditing and self-monitoring. along with the element of selfappraisal. Subjective assessment defeats the very purpose of performance appraisal. questionnaireson an individual."AdvantagesInstead of assuming traits.The two most effective methods are alternation ranking and paired comparison ranking. strategies.. 18. b) He/She may feel that a http://www. an alternation ranking method is most popular. particularly when combined with multiple rankings (i. it is necessary to recognize that comparisons involve an overall subjective 16.Leniency or severity on the part of the rater makes the assessmentsubjective. subordinates and customers. are among the best available for generating valid order-of-merit rankings for salaryadministration purposes. but to put all the parts together and the performance may be directly observedand measured. ratings.e. Facilitates assessment and agreement of training needs. Motivates the employee through achievement and feedback. etc among its employees. the employee who is highest on the characteristic being measured and the one who is thelowest are indicated. Ratings arelenient for the following reasons: a) The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will reflect poorly on his or her own worthiness. then he or she has demonstrated an acceptable level of jobperformance.DisadvantagesThis approach can lead to unrealistic expectations about what can and cannot be reasonablyaccomplished. the assessment from the various quarters are compared with oneanother and the results communicated to the manager concerned. These errors can seriously affect assessment results. Helps in identification of personal strengths and weaknesses.Variable objectives may cause employee confusion.Both ranking techniques. priorities. Then chose the next highest and the next lowest. Here subordinates to be ratedare listed and the names of those not well enough to rank are crossed. whereby ratings 17. 360 degree feedback is also known as the multi-rater feedback. Instead. Employees are judged according to real outcomes. it focuses on actual behavior and actual results. “Alternation ranking”:Ranking of employees from best to worst on a trait or traits is another method for evaluatingemployees. Since it is usually easier to distinguish between the worst and the best employeesthan to rank them.2. If the employeemeets or exceeds the set objectives. Plays an important role in Personal career and succession planning. Helps in counseling and feedback.their own performancegoals. when two ormore people are asked to make independent rankings of the same work group and their lists areaveraged).The guiding principle of the MBO approach is that direct results can be observed easily. aims.The feedback is generally used for training and development.MBO advocates claim that the performance of employees cannot be broken up into so manyconstituent parts.01/11/2014 Performance Appraisal in Tata Motors asked to set . some prediction of future performance is necessary. and not on their potential forsuccess.Most 360 Degree Feedback system contains several common features. redefining priorities and objectives. Supervisors and subordinates must have very good "reality checking" skills to useMBO appraisal methods. values. Plays major role in organizational training needs assessment and analysis. particularly when it is necessary to compare people who work fordifferent supervisors. supervisors. are not given just by the next manager up in the organizational hierarchy.Benefits of Performance Appraisals Measures an employee‟s performance. How can this kind of predictionbe made most validly and most fairly?360 DEGREE FEEDBACKMany firms have expanded the idea of upward feedback into what the call 360-degree feedback. Plays an important tool for communicating the organization‟s philosophies. but also by peers andsubordinates. alternating betweenhighest and lowest until all the employees to be rated have been ranked. individual statements.Another technique that is useful for coaching purposes is. we have been talking about assessing past performance. Improves understanding and relationship between the employee and the reporting manager and also helps in resolving confusions and misunderstandings. TheMBO method recognizes the fact that it is difficult to neatly dissect all the complex and variedelements that go to make up employee performance. Appropriates customer ratings are also included. with little or no need for a supervisor to "play God. for instance – complete survey. Butwith large numbers of employees it becomes extremely time consuming and cumbersome. of course. Once gathered in. There isno single form or way to do this. Like the criticalincident method. or appraisal forms are not particularlyuseful. or on someones subjective opinion of their abilities. What about the assessment offuture performance or potential? In any placement decision and even more so in promotiondecisions. Helps in clarifying.The best approach appears to be a ranking technique involving pooled judgment. rather than for pay increases. Then on a form as shownbelow. Clarifies team roles and facilitates team building.RANKING METHODSFor comparative purposes. Some of the most commonrating errors are: -Leniency or severity: . MBO has become something of a fad and is so familiarto most managers that I will not dwell on it here.or help set . MBO. “Paired-comparison ranking”:This technique is probably just as accurate as alternation ranking and might be more so. Appropriate parties –peers.1. They will need these skills during the initial stage of objective setting. judgment to which a host of additional facts and impressions must somehow be added. It is also possible that fluid objectives maybe distorted to disguise or justify failures in performance.ASSESSMENT CENTERSSo far. Within the past five or six years.net/surabhi786/report-1-14576928 35/41 . the MBO method concentrates on actual outcomes. Rater effect: -This includes favoritism. SC. which the raters have been assessing the rates.The raters rating is heavily influenced either by behaviorexhibited by the ratee during his early stage of the review period (primacy) or by the outcomes. One way of guarding against such an error is to askthe rater to consider the composite performance of the rate and not to be influenced by oneincident or an achievement. c) He/She may rate leniently in order to win promotions for the subordinates and therefore. This safe playing attitude stems fromcertain doubts and anxieties. Primacy and Regency effects: .They are: Ø KRA’S (KEY RESULT AREAS): The performance of an employee is largely dependent on the KRA score achieved by the employee during that particular year.Ø BHARTI 2010 LEADERSHIP COMPETENCY FRAMEWORK: This competency framework is a simple and structured way to describe the elements of behaviors required to perform a role effectively. and hostility. good or bad. o How is the KRA score calculated for an employee on the basis of the targets sets and targets achieved?Ø BEHAVIORAL TRAITS: Some of the qualitative aspects of an employees‟ performance combined with the general behavioral traits displayed by the employee during a year constitutes his behavior traits. This framework also tries to assess the performance of an employee objectively.e.or behavior exhibited by the ratee near the end of the review period (regency).Central tendency: . The attitude of the rater is to play safe. An employee is assigned the rating on the basis of the intensity of the behavior displayed by him.Ø THE PERFORMANCE RATING PROCESS: The rating process tries to explain the four different types of rating that an employee can achieve i. The rater rates the first dimensionsaccurately and then rates the second dimension to the first because of the proximity. The halo error occurs when anemployee who works late constantly might be rated high on productivity and quality of output aswell ax on motivation. good or bad. and thus finalize the performance rating of each employee KEY CONCEPTS IN PERFORMANCE MANAGEMENT SYSTEMIn order to understand the Performance Management System at Tata Motors .e. someconcepts need to be explained which play a very important role in using the PMS successfully. ROLES IN THE PERFORMANCE APPRAISAL PROCESSa) Reporting Manager Ø Provide feedback to the reviewer / HOD on the employees‟ behavioral traits indicated in the PMS Policy Manual Ø Ensures that employee is aware of the normalization / performance appraisal process Ø Address employee concerns / queries on performance rating.01/11/2014 Performance Appraisal in Tata Motors derogatory rating will be revealed to the rate to detriment the relations between the rater and the ratee. indirectly increase his/her hold over him. the ratings might have beendifferent.Performance dimension order: . even though the overall performance of thesales person may not have been encouraging. Extensively high or low scoreare given only to certain individuals or groups based on the raters attitude towards them and noton actual outcomes or behaviors. an attractive or popular personality might be given a highoverall rating. specifically on the upward / downward shift in ratings. It also explains the criteria. race and friendship biases are examples of this type oferror.slideshare. Ø Where required.Ø PROMOTION AND RATING DISRTRIBUTION GUIDELINES: The promotion and normal distribution guidelines provide the framework within which the performance http://www.This occurs when employees are incorrectly rated near the average ormiddle of the scale. C and PC. EC. Similarly. 19.A halo error takes place when one aspect of an individuals performance influencesthe evaluation of the entire performance of the individual. a reviewer may not be a HOD) Ø Presents the proposed Performance Rating for every employee of his / her function to the Normalization committee.Two or more dimensions on a performance instrument followeach other and both describe or rotate to a similar quality. age. If thedimensions had been arranged in a significantly different order. such assessments might require collecting data directly from other relevant employeesc) HOD (In some cases. result in similar rating for current periodalthough the demonstrated behavior docs not deserve the rating. thetiming of the incident may inflate his or her standing. to ensure an unbiased relative ranking of employees on overall performance. o What are the guidelines for setting the KRA‟s for an employee? o How does an employee write down his KRA‟s for a particular financial year? 21. For example. They play a very important role in the deciding the final performance rating for an employee as is even capable of shifting the rating one level upwards/downwards. Ø HOD also plays the role of a normalization committee member Ø Owns the performance rating of every employee in the departmentd) HR Head Ø Secretary to the normalization committee Ø Assists HOD‟s / Reporting Managers in communicating the performance rating of all the employeese) Normalization Committee Ø Decides on the final bell curve for each function in the respective Business Unit / Circle Ø Reviews the performance ratings proposed by the HOD‟s. o KRA‟s: The Four Perspectives. sex. if asalesperson captures an important contract/sale just before the completion of the appraisal.net/surabhi786/report-1-14576928 36/41 . Thus. which is considered for awarding any of these ratings to the employee. independently assess employees for the said behavioral traits. it is necessary to answer a few basic questions i. in consultation with the reviewerb) Reviewer (Reporting Manager’s Reporting Manager) Ø Discuss with the reporting managers on the behavioral traits of all the employees for whom he / she is the reviewer 20.Spillover effect: . stereotyping. Rating employees separately on each of the performance measures andencouraging raters to guard against the halo effect are the two ways to reduce the halo effect.Halo error: .This refers lo allowing past performance appraisal rating lo unjustifiablyinfluence current ratings. Past ratings. . If theemployee deserves both.CUSTOMISED TRAININGTRAINING TO THEPERSONNEL OF BUSINESS PARTNERS• INTERNAL COMMUNICATION• UNION ALIGNMENT• EMPLOYEE INVOLVMENT & PARTICIPATION 27. HR INITIATIVES• REALIGNING ORGANISATION CULTURE BASED ONNEW VISION & VALUES• OBJECTIVE PERFORMANCE MANAGEMENT & DEVELOPMENT SYSTEM. These guidelines also help in deciding upon the promotion cases in a year. the employee getsfeedback twice a year. they give him/her both the advantages otherwise at least one of them. Tata Motors Appraisal SystemA detailed discussion with HR head Mrs. according to the performance. team andthe department. At Spice jet while formally the process is annual.gave us the insight in the performance appraisal system followed in the company.01/11/2014 Performance Appraisal in Tata Motors appraisal process has to work.slideshare. thereby creating anexpectation amongst the employees of an increase in salary twice a year if they perform well. was started a year ago. Designation changes are given keeping in mind the immense responsibility onehas to shoulder in a high rank. Service & speedy redress· Proposed MUL Pension SchemeSUGGESTION SCHEME & QUALITY CIRCLES• For better quality and productivity• Through involvement of all employees and teamworkCriteria Idea Efforts Result : Cost reduction / Q Improvement / Productivity Improvement 26.They used to have annual appraisals earlier. They haveintroduced a comprehensive system of quarterly appraisals‟ where an employee selects his/herown goals or Key Result Area (KRAs) every quarter and him/her self assesses his/her ownperformance against these parameters. which generates major revenues or the organization. It is very important that the HR department pays due attention to these guidelines while preparing the bell curves for various functions and the consolidated bell curve for all the functions. 22. • Selection of Supervisors:– Performance / Attendance / Discipline record– Written Test & Interview• Job Rotation . These are proportional to effort of the individual. implements Sets examples for others solutions Take ownership of own development · Sees and exploits opportunities Coaches others · Delivers ahead of time Demonstrates business initiative · Sees the wider picture-impacts across Is self motivated business Supportive team player · Focuses on what’s good for the business Leads own team very effectively · Seen as role model by others Demonstrate functional initiative · Recognized as exceptional by other functions as well · · Motivates others to solve problems · Develops others · Provides open and honest feedback · Able to establish and lead cross-functional teams 23. there are performance related quarterly payouts designed toreward them with incentives for their performance.Designation hikes are given annually. create a learning andvibrant organization with high sense of pride amongst its membersAPPRAISAL & REWARDAPPRAISAL New Appraisal System based on KRAs & Targets· Review of Targets at regular Intervals· People Development an important KRAREWARD Promotions based on Performance· Productivity & Profit-linked Incentive Schemes· Training including Long-term TermCAREER DESIGN• Performance & Potential based Appraisals• Fast Track Option for High-performers• Promotions after Managers Vacancy based• Interviews for promotions above Managers 25. Performance Appraisal In Tata Motors 24. forseveral of the frontline employees. With a half yearly appraisal system.Half yearly appraisal system. The appraisalmodel which is followed on annual basis starting from the month of April till March has beenextremely effective for the employees of Tata Motors. Tata Motors IdeologiesVISION“To be the world class corporate constantly furthering the interest of all stakeholder”.BUILD A LEARNNGORGANISATIONCONTINUOUS VALUE ADDITION TOPROFESSIONAL SKILL. This activity was started keeping in mindthe dynamic behavior of the industry. PERFORMANCE RATING PROCESSEXCEPTIONAL CONTRIBUTOR (EC) SIGNIFICANT CONTRIBUTOR (SC) · Performs consistently and substantially above · Performs above expectations in all areas expectations in all areas · Achieves final score between 100-114% · Achieves a final score greater than or equal to 115% Versatile in his/ her area of operation · Consistently delivers on stretch targets Develops creative solutions and require · Is proactive little / minimal supervision · Spots and anticipates problems.• PERFORMANCE LINKED REWARD AND RECOGNITION SYSTEM• CAREER PLANNING & PROMOTION POLICY• REVISED RECRUITMENT POLICY• COMPETENCY MAPPING • STRONG FUCUS ON TRAINING INITIATIVES.Necessary steps are also undertaken for employees who deviate from their goals.they do give monetary increments and designation hikes. http://www. which gives him/her a chance to relook at his/her approach of working. Monika Ahuja of Tata Motors (lucknow branch).including Inter-functionalRETENTION & EMPLOYEE WELFARE Residential Colonies for Employees Hospitalization Reimbursement – on actual without Ceiling Vehicle Loans Household Equipment Loans House Building Advance Annual Advance· PF Trust – for better Mgt.HR VISIONLead and Facilitate continuous change towards organizational excellence . This has resulted in quarterly assessmentswhich are aligned overall to annual KRAsTata Motors have a midterm review for all those who have been performers.net/surabhi786/report-1-14576928 37/41 . but then they felt that the incentives are not enoughto motivation the sales department. Superior is responsible for categorizing the employess in four category. http://www. between 6 to 8 percent of the compensation is variable pay.e 44%) of the employees want toconsider performance appraisal half yearly whereas minimum (i. Best way isto set by joint participation between the employee and the supervisor. Performance Appraisal is not having positive effect on Tata motors employee on Lucknow Branch.Years of service 4% 12% 30% below 2yrs 2-5yrs 5-10yrs 54% 10yrs and aboveInterpretation-From the above pie chart we conclude that the maximum year of service of the employees ofTata Motors in Lucknow is maximum between 5-10 years(i.* Goals• Specific – precise and detailed• Measurable – with criteria for determining progress andsuccess• Achievable – attainable and action-oriented• Realistic – relevant and aligned• Time-related – grounded within a time-frameFor this purpose. Goal-Setting ModelA goal setting program in an organization requires careful planning. As shown in the figure. of Responses Once During The 1 Service Period Continuous 46 Never 0 Can’t Say 3Interpretation-From the above pie chart we find that the maximum (i.slideshare. 33. Enhance productivity 2. At present.e 20%) of them want itquarterly. of Responses Fully Satisfied 12 Satisfied 22 Can‟t Say 15 Dissatisfied 1Interpretation-From the above pie chart we conclude that maximum employees are satisfied with the presentappraisal system( i. of Responses Quarterly 10 Half Yearly 22 Yearly 18Interpretation-From the above pie chart we conclude that maximum (i. theyhave an accumulating incentive scheme in which employees can accumulate incentives and getthem annually with interest. Identification of the technique of performance appraisal followed in Tata Motors . Thismethod often leads to employee commitment.e 92%) of the employees think that thefrequency of appraisal must be continuous whereas minimum (i.net/surabhi786/report-1-14576928 38/41 . we framed the following objectives1. Attain global standards4.e 2%) are dissatisfied. Analysis and InterpretationQ1. who are constantly evaluated and appraised . Review of the current appraisal system in order to 1. This Gives us theopportunity to study the performance appraisal method by the company and it‟s efficiencytowards employees as well as Organization.3. Employee attitude towards the present appraisal system. of Responses Yes 36 No 14Interpretation-From the above pie chart we conclude that maximum employees are aware of their performanceappraisal technique (i. Also. RESEARCH METHODOLOGY :The Study is Primarily Based on the Primary data Collected through Questionnaire from TataMotors Employees. Goals can be established in a variety of ways.Objective of the Study :To carry out the study at Tata Motors . achieving goal commitment. 28. 29.A.Employees’ opinion as to the present appraisal system 2% 24% 30% Fully satisfied satisfied cant say 44% Dissatisfied Options No. ( Ho) 2.T. DATA COLLECTION: Data Sources: (i) Secondary Data through Internet (ii) Primary Data through Questionnaire (iii) Contact Method (iv) Personal Interaction 32.759 (2012) personnel . Lucknow Duration = 6 weeks.Employee perception as to the frequency of appraisal 0% 2% 6% Once during the service period Continuous Never Cant Say 92% Options No.Goal SettingS. 31. Q5-If continuous appraisal – what should be the gap between two appraisal period 20% 36% Quaterly Half-Yearly 44% Yearly Options No.e 0%) none of the employeesfeel that Tata motors should not appraise.To meet the new demands of the business and to motivate the employees for higher performance.Hypotheses of the Study 1.they have started linking a part of the salary increase to individual performance measures asvariable pay. 35. It currently Employees59. Executives are categorized in levels based on theirperformances in a relative ranking and based on outcome performance-linked pay is awarded. RESEARCH 30.e 44%) and minimum (i.01/11/2014 Performance Appraisal in Tata Motors Monetary increments are primarily incentives that are given eitherin cash or kind for example they give them travel package within India or outside.M. an online template is circulated in the organization.R.e 54%) and minimum is below2years (i. Superiors fill out that formkeeping in view the performance of their subordinate over the year. a crucial ingredient in effective goal setting. 36. (Ha) . AbstractTata Motors is India‟s One of the most successful automobile company.Awareness of technique of Performance Appraisal 28% No 72% Yes Options No. namely –ABCDThis categorization is done both on the basis of performance and the goals they were given. This feedback becomes thebasis of the promotion of the employees.e 72%) and the employees not aware of it is minimum (i.SAMPLING PLAN: Sample Size = 50 Employees Sample Area = Chinhat .This whole system is commonly known as90 degree appraisal system also called 2 tiers. Q3. Q4. and overcomingresistance to goal acceptance. Performance Appraisal Is having positive effect on Tata Motors Employees of Lucknow branch. Q2. which theyare planning to increase over a period of time.2. To provide suggestions & recommendations from the study conducted.the first three factors in goalsetting process are establishing the goal.e 4%)..e 28%) 34. e 24%) want to get theappraisal through superior. 43. feedback from external sources. Appraisals here are helpingindividuals to develop. agreeing expectationsand objectives. would employees like to review the current appraisal technique 24% 32% Yes No Cant Say 44% Options No. Giving negative feedback with demotivating results leads to minimum productivity of employees (i. Performance appraisals in Tata Motors issatisfactory for its effective management and evaluation of staff.e 56%) whereas minimum number of employees would be indifferent towards it.1. the very purpose of appraisal becomes illogical. ashuge as 82 % respondents that personal bias do creep in while appraising an individual. it should not start at bottom. Giving a neutral feedback with motivating results leads to average productivity of employees (i. Q6.e 48%) whereas only a few lead to low productivity with demotivating results (i. Thus. Nearly 10 % of the respondents view that it does not servethis purpose and around 16 % were not able to respond as to whether it serve any such purposesor not. The very concept of performance appraisal is marketed throughout the organization. 2. Q8. that is. 42.01/11/2014 Performance Appraisal in Tata Motors 37. itis inevitable to say that personal likings do not come in the process of appraisal. there bound to be subjectivity involved. and supervisor(s). be it anobjective way of appraising.e 96%) of the employees feel thatperformance appraisal leads to identification of hidden potential whereas minimum (i.e 4%)disagree with the same.Feedback 12 10 28 Neutral 24 21 5Interpretation.e 24%) can‟t comment about thesame. Q10 If given a chance. peers. Q11.Findings. Hence.e 58%) of the employees prefer the360 degree technique of performance appraisal whereas the minimum (i.e feedbackthat comes from members of an employees immediate work circle most often. Q12. instead it should be started by the initiative of the top management. 40. it was observed that there was appraisal in the organization. 39.Does appraisal help in polishing skills and performance area? 16% Yes 10% No Somewhat 74% Options No. of Responses Superior 12 Peer 0 Subordinate 0 Self Appraisal 4 Consultant 2 All of the above 24 Superior + Peer 8Interpretation-From the above pie chart we conclude that the maximum employees (i.. It isan effective tool. which includes the top management as well as those below them. when asked from among the sample size of 50 respondents. self appraisal.slideshare. of Responses Yes 37 No 5 Somewhat 8Interpretation-If the process of appraisal does not lead to the improvement of the skills and proficiency of theemployees. and delegation of responsibilities and tasks. in some cases.Does performance appraisal leads to identification of hidden potential 4% Yes No 96% Options No. Q7. 44.e 76%) whereas none of the employees are demotivated. 41. It can also include. since it is on continuous basis.e 10%) 38. of Responses Yes 16 No 22 Can‟t Say 12Interpretation-From the above pie chart we conclude that the maximum employees (i.such as customers and suppliers or other interested stakeholders. This would help in percolating down the concept to the advantage of all.as well as a self-evaluation.net/surabhi786/report-1-14576928 39/41 . 360-degreefeedback will include direct feedback from an employees subordinates. The appraisal process iscontinuous here and encourages employee productivity with positive feedbacks. of Responses Yes 48 No 2Interpretation-From the above pie chart we interpret that maximum (i. Thus. people have accepted it and understood its importance to the organization. improve organizational performance. consultant. of Responses Yes 41 No 9Interpretation-In the process of appraising.Appropriate method of conducting the performance appraisal 0% 12% 6% Ranking method paired comparison 20% critical Incidents 58% MBO Assessment Centre 360 degree 4% Options No. It is the extent towhich the appraiser manages it so that it does not become very partial and bias. Whereas none of them want to get it donefrom their peers and subordinates. and feed into business planning. This means that the top management has to take a http://www. In the survey conducted it wasobserved that nearly 74 % of the respondents agree that Performance Appraisal does leads topolishing the skills of the employees. Q9.e 0%) want pairedcomparison technique. the one who is beingapprised and the other who is appraising.e 32%) do not want toreview the performance appraisal system whereas minimum (i. Staff performance appraisals alsoestablish individual training needs and enable organizational training needs analysis andplanning. 90degrees appraisal system or review is being followed in Tata Motors i. of Responses Ranking Method 6 Paired Comparison 0 Critical Incidents 3 MBO 10 Assessment Centre 2 360 degree 29Interpretation-From the above pie chart we conclude that the maximum (i.From the above chart we conclude that the affect of performance appraisal with a positive feedback and motivated results lead to maximum productivity of employees(i.How Performance Appraisal affects the productivity of the employees Motivated Indifferent Demotivated + Feedback 38 12 .Performance appraisals enable management in monitoring of standards.Does personal bias creeps-in while appraising an employee 18% Yes No 82% Options No. SUGGESTIONS AND CONCLUSIONAfter having analyzed the data. both the parties are human being.Who should do the appraisal? 16% Superior 24% 0% Peer 0% Subordinate 8% Self appraisal 48% Consultant 4% All of the Above Superior+Peer Options No. To market such a concept. presentations.com English Français Español Português (Brasil) Deutsch About http://www.10. c) Reviewing employees on the basis of identified specific examples of good Or poor performance.13. The time period for conducting the appraisal should be revised. detailed appraisal of the employee‟s work must be done – which must incorporates both the work related as well as the other personal attributes that are important for work performance. System can be used to humiliate people.What is your opinion as to the present appraisal system? a) Fully satisfied b) Satisfied c) Cant say d) DissatisfiedQ4-What is your perception as to the frequency of appraisal? a) Once during the service period b) Continuous c) Never d) Cant SayQ5-If continuous appraisal – what should be the gap between two appraisal period? 47.com/sustainability/CSR-11/pdf/definingpriorities. There will not be anycommercial solicitation or usage of the response in any kind / form whatsoever. A neutral panel of people should do the appraisal and to avoid subjectivity to a marked extent. Further. Annexure QUESTIONNAIREDisclaimer: Your response via this questionnaire will be used strictly for academic purposes. 5. There should not be a common appraisal form for every job position in the organization. Linking.Scribd. Transparency into the system should be ensured through the discussion about the employee‟s performance with the employee concerned and trying to find out the grey areas so that training can be implemented to improve on that. if Employer and employee relations are not good.comhttp://www.01/11/2014 Performance Appraisal in Tata Motors welcoming and positive approach towards the change that is intended to be brought. 4. it cannot be a drastic one.net/surabhi786/report-1-14576928 40/41 . a better systemcan be installed.Assesses denies the truth of negative feedback.htmlWikipediaEconomic Timeswww.oppapers.15. appraisal should be done. f) Receiving feedback from people whose views are considered helpful and relevant including the appraise himself. b) For every trait. 45. Instead. as it‟s done by one person. 7. 6.Does the appraisal system helps in polishing the skills or performance area? a) Yes b) No c) SomewhatQ9-Do you think personal bias creeps in while appraising an individual? a) Yes b) No 48. etc.Ideally in the present day scenario. 3. The job and role expected from the employees should be decided well in advance and that too with the consensus with them.What according to you should be the appropriate method for conducting performance appraisal? a) Rating the employee on number of traits along with the range of performance for each by the supervisor. Superiors response tend to be bias. taking the views of all theconcerned parties who have some bearing on the employee. so that the exercise becomes a continuous phenomenon. for future performance. It should be noted that the appraisal form for each job position should be different as each job has different knowledge and skill requirements. 46. But. the appraisal form should not lead to duplication of any information. Q10-If given a chance or an opportunity would you like that the current appraisal procedure should be reviewed? a) Yes b) No c) Can‟t SayQ11. e) Reviewing performance through case studies. since a change in the system isrequired.Q12.Q1. d) Setting specific measurable goals with each employee and periodically reviewing the progress made. It should to increase the efficiency.com/subjects/tata motors-page1. It ought to be gradual and a change in the mindset of both theemployees and the head is required. Transparency should be bought inappraisal system. each subordinate is paired with and compared to every other Subordinate. 8.9.11. Thus.citehr. at the time of confirmation also. which can be disastrous for the organization.tatamotors.12.How long have you been with Tata Motors? (in Year) a) Below 2 b) 2-5 c) 5-10 d) 10 and aboveQ2. role playing.14.it should be overcome. Ignores performance in terms of reaching goals.Feedback NeutralQ7Who in your opinion should appraise the employee? a) Superior b) Peer c) Subordinates d) Self Appraisal e) Consultant f) All of the aboveQ8.Are you aware of the performance appraisal technique being followed at Tata Motors? a) Yes b) NoQ3.pdfwww..Does Performance Appraisal leads to identification of hidden potential of the employees? a) Yes b) No 49. which make employees unsatisfied.slideshare. objective methods should be employed having quantifiable data. BIBLIOGRAPHYhttp://www. Findings to the rewards can prove to be unfair. More partiesshould be involved. Lack of Truth about Organization culture is conveyed through 90 degree of appraisal system. The feedback doesn‟t Come from multiple source. a) Quarterly b) Half Yearly c) YearlyQ6-Does Performance Appraisal helps in improving the productivity of the employees? Motivated Indifferent Demotivated + Feedback . slideshare.01/11/2014 Performance Appraisal in Tata Motors Careers Developers & API Press Blog Terms Privacy Copyright Support Contact Linkedin Twitter Google Plus Facebook RSS Feeds LinkedIn Corporation © 2014 http://www.net/surabhi786/report-1-14576928 41/41 .