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Summer Training Report

On

Effectiveness of Performance appraisal system


At

GOOD YEAR INDIA LTD.

Submitted to:

Maharishi Dayanand University, Rohtak


Towards partial fulfillment of requirements of Two Year Full Time MBA Programme

Session: 2010-11
Supervisor/ Guides Name: Mr. Surender Singh Submitted By: Meenakshi Gupta MBA 4th Sem. Roll No

RAMANUJAN COLLEGE OF MANAGEMENT Mitrol, Palwal, Haryana

Declaration

I Taruna Ahuja Roll No 34 student of MBA Batch (2009-11 ) at Rawal College of Management, Fardibad Haryana hereby declare that the project / report titled Effectiveness of Performance Appraisal System has been completed by me independently by undergoing summer training at Good Year (I) Ltd. and the concerned training report has not been submitted elsewhere for any purpose.

ACKNOWLEDGMENT

This project report prepared by me is a result of the joint effort of several helping hands of the personnel of Department of Goodyear India limited. The knowledge of our theoretical studies is absolutely incomplete without is proper implementation and application in the diversified corporate world of today. I have been really opportunity to be a part of the Goodyear group during my summer training, which is one of the leading business houses in todays scenario. An undertaking of study like is never an outcome of effort puts in single person, rather it bears imprint of number of person who directly or indirectly helped me incomplete the study. At the outset I would like to extend my sincere gratitude to Mr. Vinod Singh (Senior officer H.R.department) for providing guidance during the preparation of the report whenever needed. I am also thankful to Ms Neha Garg (Training Executive), for sharing her knowledge.

Last but not least, I am thankful to the member of GOODYEAR Group for the cooporation.

(Taruna Ahuja)

CONTENTS

1. Introduction & objectives of training 2. Company profile 3. Project Details 4 5 6 7 8 Analysis & Findings Conclusion Recommendations and Suggestions Annexure Bibliography

INTRODUTION & OBJECTIVE OF TRAINING

TRAINING Definition:
According to Michael J. Jucius, defines, The term training is used here to indicate only process by which the aptitudes, skills and abilities of employees to perform specific jobs are increased.

According to Edwin B. Flippo defines, Training is an act of increasing the knowledge and skills of an employ for performing a particular job.

Training enables an employ to do his present job more efficiently and

prepare himself for higher level job. The major outcome of training is learning. A Trainee learns new habits, refined skills and useful knowledge

during the training that helps to improve the performance. Training is practice based and company specific. Training objectives should be set in terms of changes needed in

behaviour and performance.

HOW TRAINING HELPFUL

Increase knowledge and skills for doing a particular job. Focuses attention on the current job. Concentrates on individual employees, changing what employees

know-how they work, their attitude towards their work on their interaction with their co-workers. Tends to be more narrowly focused and oriented towards short

term performance concerns. individual. Training is mostly the result of initiatives taken by management. Training is job oriented. Training is one shot deal. Training seeks to meet the current requirements of the job and the

NEEDS FOR TRAINING

Newly recruited employees require training so as to perform their

task effectively. Training is necessary to prepare existing employees for higher

level jobs (promotion). Training is necessary when a person moves from one job to

another (transfer). Training is necessary to make employees mobile and versatile. Training is needed to make employees more productive and useful

in the long-run. Training is necessary for solving operational problem.

MAJOR VALUES OF TRAINING IN GOODYEAR

Increase in productivity. Better and economically use of resources. Reduced Supervision. Fill manpower needs. Increasing organizational stability and flexibility. Better management. Reduced learning time. Better industrial relation. Reduced accidents. Heightened morale. Versatility & adaptability.

THEORITICAL BACKGROUND OF PERFORMANCE APPRAISAL

People differ in their ability and aptitude. These differences are natural to great extend and cannot be eliminated even by giving the same basic education and training to them. There will be some differences in the same quality and quantity of work done by different employees even on the same job. Therefore it is necessary for management to know these differences that the employee having better abilities may be rewarded and the wrong placement of employees may be rectified through transfers. The individual employees may also like to know the level of his performance in comparison to his fellow employees so that he may improve upon it. Thus there is the great need to have suitable performance appraisal system to measure the relative merit of each employee.

The basic purpose of performance appraisal is to facilitate orderly determination of employees worth to the organization of which he is a part. However, a fair determination of worth of employees can take place only by appraising numerous factors some of which are highly objectives, as for instance, attendance, while others are highly subjective, as for instance, attitude and personality.

Performance appraisal means systematic evaluation of the personality and performance of each employee by his supervisor or some other person trained in the techniques of merit

rating. The Performance appraisal includes all formals procedures used to evaluate personality and contribution and potential of group member in a working organization. It is a procedure to secure information necessary for making correct objective decision employees.

Performance appraisal is the systematic evaluation of the individuals with respect to his performance on the job and his potential for development. Performance appraisal is concerned with determine the differences among the employees working in the organization.

PURPOSE OF PERFORMANCE APPRAISAL

1)

PROMOTIONS: Promotions is the most important objectives of performance

appraisal. It is to too the common interest of the both management and employees into position where they can most effectively utilize there ability. It is mismanagement to promote employees into position where they cannot perform administered performance appraisal system can aid in determining whether individual should be promotion or not. The system should rate the present job and and potentiality for the higher job.

2)

HUMAN RESOURCE PLANING: Performance appraisal generates significant,

relevant and useful information about the portability and potentiality of the employees.

This information is used to asses the organizations internal supply of human resource and availability of managerial for succession planning.

3)

RECRUITMENT AND SELECTION: Evaluation made in the performance

appraisal can be used to find out the particular areas of knowledge, skills and experience which successful performance posses. This information can be used to review effectiveness of recruitment and selection procedure and practices so that right type of candidates can be selected.

4)

TRAINING AND DEVELOPMENT: Performance appraisal helps in identifying

development needs of employees. This information can be used advise suitable training and development programs to enables employees to overcome their weakness and improve their strength.

5)

COMPENSATION: Information gathered through performance appraisal provides

inputs for making decision concerning salary administration financial incentives appreciation additional responsibility etc.

COMPANY PROFILE

GOODYEAR INDIA

PLANT LOCATION

28 K.M SOUTH DELHI IN HARYANA STATE ON NATIONAL HIGHWAY

NO.2. MAJOR INDUSTRYS : ESCORTS, EICHER WHIRLPOOL, BATA. AREA : 37 ACRE WITH 6, 54, 000 SQ. FEET OF FLOUR SURFACE. MANUFACTURING : AUTOMATIVE TYRES STERTED 1961 PERSENALITY PRODUCING 4000 TYRES PER DAY PRODUCT : TRACTOR, TRUCK, LCV, PASS. ASSOCIATION : HOURLY ASSOCIATION ARE MAINLY DRAWN FROM ADJOINING VILLAGE WITH RIRAL AGRICULTURE.

GOODYEAR IN INDIA
GOODYEAR HAS 2 PLANTS IN INDIA: 1. GOODYEAR INDIA BALLABGARH. 2. SOUTH ASIA TYRE LIMITED AURANGABAD.

GOODYEAR INDIA BALLABGARH:- IT IS LOCATED 28 K.M. FROM DELHI AND WAS ESTABLISHED IN 1961 HAS AWARDED 9002 F0R IT ALL PRODUCT RANGE AND IT ANNUAL TURNOVER 650 CRORE APPROX.

SOUTH ASIA TYRE LIMITED AURANGABAD(SALT):- AURANGABAD HAS A TURNOVER OF APPROX 140 CRORE WITH ITS MAIN PRODUCT BEING PASSENGER & RADIAL TYRE AND EARTH MOVER TYRE . IT IS LOCATED AS WALUJ.

GOODYEAR INDIA BALLABGARH: TWO DIVISIONS IN IT DIVISION BTA. DIVISION BTB.

BTA DEPARTMENT: BANBURY RIBBER MIXING 3ROLLNVALENDER 3-T (TIME, TENSION, TEMRATURE) CEMENT HOUSE RORUBBER TRADE AND SIDEWALL

BTB DEPARTMENT: PLY CUTTING BAAD BUILDING TRUCK BUILDING PASS BUILDING

THE INDIAN TYRE INDUSTRY

HIGHLIGHT

The tyre industry is a Rs. 9000 crore industry. The fortune of this industry depends on the agriculture and industrial performance of the company of the economy, the transportation needs and the production of vehicles.

While the tyre industry is mainly dominant by the organized sector the unorganized sector holds way in bicycle tyres.

In the five last year (1994-1995), the tyre industry managed to achieve a compounded annual growth of only 4.40 percent. However in the last fiscal the industry registered a growth 7 percent.

Natural rubber constitutes 25 percent of the material cost of the tyre.

The ratio of natural rubber content to synthetic rubber content is 80:20 in Indian tyre whereas worlds wide, the ratio of ratio of natural rubber to synthetic rubber is 30:70.

MARKET POLICY:

While the tyre industry is mainly dominant by the organized sector the unorganized sector holds sway in bicycle tyres.

The major players in the organized tyres Ceat, MRF, and JK industries, which account for the market. The other key player includes modi rubber, kesoram industries and Goodyear India, with 11 percent 7 percent, and 6 percent share respectively.

Dunlop, falcon Tyre Corporation of India limited (TCIL) TVS-SRICHAKRA, metro tyres and balkrisna tyre is some of the other player in the industry.

MRF, the largest tyre manufacturing in the country has strong brand equity. While it rules supreme in the industry, other players have created niche markets of the town.

GOODYEAR HISTORY

HISTORY OF THE COMPANY BY YEAR.

GENRAL INFORMATION.

GENRAL INDIA PANORMA.

GOODYEAR A PIONEER.

DIFFERENT DEPARTMENT.

GOODYEAR HISTORY

Goodyears pioneering sprit begins in 1898 when frank seiberling founded the company 38 years old frank seiberling purchased the companys first plant $3500 down payment using money he borrowed from his brother-in-law. Seiberling chose the Goodyear to honor the man Charles Goodyear who had penniless 30years earlier despite the discovery of vulcanization after a long courageous search.

The wind foot the trade mark

He determines the trademark inspired by anewel post status of mercury in his home.

Timing

Yet the timing could not been better. The bicycle craze of the 1890s was booming. Even the depression of 1893 was beginning to fade. So on august 291898 Goodyear was incorporated with a special stock of $ 1000000.

Payoff

With just 13 workers, Goodyear production began on November 21,1898, with product line of bicycle & carriage tyres. The first record payroll amounted to & 217.86 based on the prevailing wages of 13 to 25 cent an hour for 10-hour days. Goodyear becoming the largest rubber company in 1926.

Beginning in strawboard factory

IT all started in a conserved strawboard factory on the banks of little Cuyahoga river in est., Akron, Ohio. in 1961 it adapted the slogan More people ride on Goodyear.

Goodyear mission

Undisputed leadership in our market & in our industry is Goodyear motto. Our vision is to ranked by all measure as the best tyre & rubber company in the world.

Goodyear associates

It has than 105000 associates around the world. Goodyear common stock. Which is traded on New York stock exchange Chicago exchange?

GENRAL INFORMATION

Date of first commencement of commercial production of the project. 6th of June 1961 (Goodyear India limited)

PRESIDENT AND CEO:


BOB KEEGAN.

BOARD OF DIRECTOR:
ANTONIO M CAPALLIANI.

CHAIRMAN AND MANAGING DIRECTOR


HUGO DEDEKIND

REGISTERED AND CORPORATE OFFICE AND WORK.


MATHURA ROAD BALLABGARH (DIST. FERIDABAD) HARYANA-121004 TEL. NO-0129 2305300

REGISTRATION DETAILS:
REGISTRATION NO 8578 STATE CODE 05(HARYANA) BALANCE SHEET-31ST DEC.

WEBSITE
WWW.GOODYEAR.COM

PERFORMANCE MANAGEMENT SYSTEM OF GOODYEAR

INDIA LTD.

PMS comprise of individual performance review (IPR)& individual development plan (IDP) for association.

IPR start with setting up of objectives & deciding upon rules December each of the &the For associate the evaluating period is from January to in the beginning year year in salutation with the concerned function manager & keeping the business & function unit assessment process must get completed by 1st of march of the following year. objective in the mind.

Objective must be prettied as extremely important very important & somewhat important depending upon the various factor.

The assessment for previous years performance starts in the beginning of the following year wherein whole performance & behavior is judge upon pre-test objectives.

Behavior should be weighted equally with performance against the pre-test objectives for overall performance rating

All associates are required to make an over all self assessment of their performance for the whole area where they have to summarize their overall performance against the objectives for the period herein they describe there key contribution & accomplishment along with an assessment of the performance to list behavior.

Functional manger evaluates the overall performance of associate.

After evaluating the associates performance & the behavior performance rating are awarded _________1. EE (Exceed expectation)_________2. ME( Meets expectation) _______ 3.US (Unsatisfaction)

GOODYEAR VALUES
Our corporate sprit:-

Protect our good name We value our good name

Conduct our business in accordance with the highest applicable legal and ethical standards. Affirm our Neha as a socially responsible corporate citizen. Operate globally as socially responsible corporate citizens.

We value our customer:-

Listen and respond rapidly to our customer needs and expectation. Provide outstanding to customer of our products and services. Ensure the highest standards of product quality and services.

We value our association:-

Treat all associates and their ideas with dignity and respect and awarded initiates and accomplished. Treasure and nature our rich diversity. Encourage associates development through coaching training.

We value our shareholder

Operates as a business driven organization Ensure future shareholder value through profitability and sustained revenue growth.

Be lowest cost producer of our major global competitor.

MISSION

Constant improvement in the quality meets our customer of our product and services needs. This is the only means to success and prosperity for Goodyear India private limited, our associates and investors.

VISSION

Our vision is to ranked by all measure as the best tyre and rubber company in the world. For achieve this vision Goodyear India limited could continuous improve in the production and quality of the product as to meet with customer needs.

QUALITY POLICY

We the associate of Goodyear India Are fully committed to constant improvement in the quality of our products and services to meet our customer needs. This is the only Means of business success for Goodyear and prosperity for its investor and associates.

GOODYEAR INDIA PANORMA


1839- Charles Goodyear accidentally brings rubber into contact with a hot stove in advertently discovering vulcanization. 1922- Marketing tyres in India since than. 1961- Ballabhgarh plant started with 146 tyres per day.

1971- Expansion to2431 TPD & 6780 bikes tyres per day. 1985- Announcement of modernization and expansion plan. 1986- Scooter and motorcycle discounted. 1989- Business team concept introduced 1990- TQC launched. 1994- Goodyear got ISO-9002 certification. 1995- Common canteen for all association. 1997- Producing 3500TPD consistently. 1998- Installed new TAKU tyres building machines SAT take over. 1999- RFT expansion completed. 2003- Goodyear got ISO-141001 certification.

GOODYEAR: PIONEER

Goodyear the TAKE ME HOME company started its business in 1898. The WINGFOOT of Frank & Eiber ling spread its wings and accomplished many firsts:

First in making carriage tyres.

First in making elliptical tyres. First to record highest speed on road. First to make the biggest tyres 11.5 feet weighing 7000 pounds. First to make Blimps. First to launch the interstate truck fleet. First to touch the Moons surface in the year 1971. First to offer the Nylon cord tyres.

GOODYEAR INDIA ITS DEPARTMENT

FINANCE HUMAN RESOURCE MANUFACURING

MATERIAL MANAGEMENT SALES AND MARKETING MANUFACTURING & DISTRIBUTION PRODUCTION TRAINING AND SAFETY

INDUSTRY STRUCTURE AND DEVELOPMENT

The growth of tyre industry is linked to that of automobile sector in general and transport sector in particular, which in turn are dependent on the performance of the economy. This year, the economy scenario improved and the economy growth of the year 2003-2004 is estimated at 8%. The automobile sector too witnessed growth.

The government has been taking several measures to continuously enhance the growth momentum. The development of infrastructure and agriculture sector would lead to growth in commercial tyres, utility veichels and car tyres and firm tyres segment however due availability of products in excess demand in the Indian market place would continue to be challenging task for tyres companies.

OUTLOOK

To meet the market challenges, the company would continued to followed the philosophy of providing the highest quality of products to its customer, endeavor to

achieve possible cost saving in all areas of operations and give more emphasis on exports. The growth projected in automobile, transport and infrastructure sector and general health of the economy provides a sign of relief. However, stiff competitions in the market place and the reset in the raw material prices, particularly than of the natural rubber are the area of concern. The company has putting more emphasis on export to meet the challenge arising out of domestic competition. The company is also planning to enter 2/3 wheelers tyres market on outstanding basis.

OPPORTUNITYS AND THREATS

The company having a long standing in the market, enjoys the reputation for providing the world class products to its valued customer being subsidiary company

of Goodyear tyre and rubber company, Akron, Ohio, USA, it has the unstinted to support from the parents company and the different management area. Remittance of US $ 21 million in September 2003 by way of external commercial borrowing and contributes in substantially reducing the interest cost. The company has been up gradation of certain equipment plants at Ballabgarh.

RISK AND CONCERN

The Indian economics conditions have direct impact on the companys corporation as its products are largely intended for sale in the domestic market. Among our concern are the levy of local area development tax on inter state purchase of material which are consumer for stock transfer outside the state of Haryana, of finished products manufacturing at the companys plant at the ballabgarh in Haryana, certain disputes with the exercise authorities and a demand from the Haryana urban development authorities towards external development change, which are being contested on tenable legal ground.

Apart from normal risk as are applicable to an undertaking the company does not foresee any serious area of concern. The company has been obtaining boreal insurance coverage for its assets. No foreign exchange risk has been taken for the external commercial borrowing of US $ 21 million obtained during the year from the parent company and for other receivable. Compliance of safety requirement and norms placed by different government agencies is a top priority of the management.

ENVIRONMENTAL POLICY

Company environmental policy says:We the associates the Goodyear India limited Ballabgarh manufacturing of tyres are fully committed to conduct business conduct business incompliant to the manufacturing legislation and corporate requirement.

We shall continue improve through:

Reducing wastes and emission and resource like water and steam.

Conserving energy.

Preventing pollution

Creating awareness and providing training to all the association.

HEALTH & SAFETY POLICY

We the associates of Goodyear India limited ballabgarh are fully committed to create and maintain to create a safe and healthy and ergonomics friendly working environment to ensure safety of our equipment and workforce.

Guiding principle

Company with applicable legal laws & regulation on the health & safety and Goodyear global health and safety slandered.

Integrates health, safety and ergonomics considerations into all key and business decision.

Train associates and create awareness for creating a sages healthy workplace.

Maintain eco friendly production activities and process.

Prevent personal and equipment loss.

PROJECT DETAILS

RESEARCH METHODOLOGY

Properly conducted study is a valuable tool for the top management in making some decisions. Good study reduces the uncertainty. Effective research methodology leads to good research.

Research methodology is a way to systematically achieve the objective of the study.

To know about the effectiveness of performance appraisal system the questionnaire, Interview method has been used.

This Questionnaire has aimed to achieve the objective of the study. All Questionnaires are closed ended with two to five options.

For the purpose of analysis, various tables and charts were prepared with number and percentage of the employees in different choices.

The place of the study was Goodyear India Limited based operation division.

Along with primary data collected through questionnaire-Interview, I also used secondary data, which includes theory part from some books and the performance appraisal process in Goodyear from its own policies. Sample size for the study was 50 junior mangers.

OBJECTIVES OF THE STUDY

1. To study the performance appraisal process of junior manager in the company.

2. To study the employees point on their performance appraisal.

3. To study the effectiveness of appraisal system in the company.

4. To study the system is helpful for the employer (to communicate the organization Plans, expectation etc) and employees (to express the training & development needs).

METHODS OF PERFORMANCE APPRAISAL


1. PAST-OREINTED METHODS

RATING SCALE

This is the simplest method and most popular technique for appraising employees performance. The typical rating scales system consists of several numerical scales; each representing job related performance criterion such as dependability, initiatives output attendance attitude co-operation and the like. Each range scale from excellence to poor. The rater checks the appropriate performance level on each criterion, and then computes the employees total numerical score. The number of points scored may be linked to salary increase where by so many points equal a rise of some percentage.

CHECKLIST

In the method the rate does not evaluates employees performance; he supplies report about it and the personal department does the final rating. A serious of question are present concerning an employees to his behavior. The rater, than checks to indicates if eh answer to a question about an employees is positive or negative. To value of each question may weighted equally or certain question may be weighted equally or certain question may be weighted more heavily than others. Generally the questions are on yes/no pattern. FORCED CHOICE METHOD

In this rater is given a series of statement about an employee. These statement are in block of two or more, and the rater indicates which statement is most or least descriptive of the employee. Typically statement is

Learn fast works hard. Work is reliable.. performance is good example for Absent often .. Other usually tardy.

FORCED DISTRIBUTION METHOD

Once of the errors in rating is licensing-clustering a large number of employees around a high point on rating scale. The forced distribution method seeks to overcome the problems by compelling the ratter to distribute the rate on all point on the raring scale.

The method operates under an assumption that the employees performance level confirms to a normal statistical distribution. Generally, it is assumed that the employee performance level confirm to be well shaped curve. For example the following distribution might to be assumed to exist-excellent 10%, good 20%, average 40% below average 20%, and unsatisfactory 10%.

CRITICAL INCIDENTS METHOD

The approach focuses on certain behavior of employees that all makes the difference between effective and non-effective performance of a job. The superior as and when they occur record such incident.

ADVANTAGES FOR (CIM)

The evaluation is based on actual job behavior. The approach has description of support of an employee. Giving job related feedback is the rate is also easy. It also reduces the regency bias, if rater records incidents throughout the rating period. LIMITATIONS OF CRITICAL INCIDENT

Negative incidents are generally more noticeable then positive ones. The recording of incidents chore to the superior and may be put off and easily forgotten. Overly closed superior may result.

Manager may unload a series of complaints about incidents during an annual performance review session. The feedback may be to much at and one time thus appear as punishment to the rate. BEHAVIORLY ANCHORD RATING SCALE

Some this is called behaviorally scaled, are rating scale whose scale point are determined by statement of effective and ineffective behaviors they are also said to be behavior. They are said to be behaviorally anchored in that the scales represents a range of descriptive statement of behavior varying from the least to the most.

Effective a rater must be indicates which behavior on each scales best descriptive an employees performance. Behaviorally anchored rating scale have the following features.

Area of performance to be evaluated are identified and defined by the people who will use the scale. The scales are anchored description of actual job behavior that, supervisor are represent specific level of performance. The result is asset of rating scale in which are both dimensions and anchors are precious defined Since the rates that will actually use the scales are actively involved are more likely to be committed to final product.

FIELD REVIEW METHOD

This is appraisal by someone outside the assizes own department usually some ones from the corporate officer or the HR department. the outside review employees with the rates and hid or her superior. The method is primarily used for make promotional

decision at the managerial level. Field reviews are also useful when comparable information is needed from the employees in the different units or location CONFIDENTIAL REPORT METHOD

In this method one or more senior officer for his performance rates employee confidentially. A confidential report by immediate supervisor is still a major determinant of the subordinates or transfer. The repoears work and general opinion of the rater towards the employee. The main problem with method this is not date based and the appraisal is done on the basis of impression.

EASSY METHOD

In the essay method, the rater must describe the employees within the number of board categories such as: The raters overall impression of the employees performance. The promo ability of the employees is now able and qualified to perform. The strength and weakness of the employees and the training and the development assistant required by the employees. Although this method is used independently it is most frequently found with combination with others. It is extremely useful filling information gaps about the often with occur in the better-structured checklist method.

COST ACCOUNTING METHOD

This method evaluate performance from from the monitory returns the employees yield to his her organization. A relationship is established between the cost include in keeping the employee and benefit of the organization derives from him or her. Performance of the employees is then evaluated based on the established relationship of cost and benefits.

PAIRED COMPARISION METHOD

Under this method, the appraiser compares each employee with every other employee, one at a time, for example there are five employees name A, B, C, D, E. The performance of the A is the first compared with the performance of B and A decision is made about whose performance is better. Then A is compared with C,D and E in that order. The same procedure is repeated for the others employees the number of comparison may be calculated with the help of formulate which thus:

N(N-1)/2

where N stands for the number of the employees to be compared. If there Are employees the number of comparison will be 10(10-1)/2.

After the completion, the result can be tabulated and a rank is created from the number times each person is considered to be superior.

PSYCHOLOGICAL APPRASIAL

Large organization employs full time Industrial psychological. When psychologist are used for evaluation they asses an individuals future potential and not past performance. The psychological test, and discussion with supervisor and a review of the other evaluations. Intellectual emotional motivational and the other work related characteristics that suggest individual potential and predict future performance.

ASSESMENT CENTER

Mainly used for executive hiring assessment center are now being used for evaluating executive or supervisory potential. An assessment canter location where manager may comes together to have there participation in job related exercise evaluated by trained observe. The principle idea is to evaluate by the trained observes. The principle idea is to evaluated manager over a period of time, say one of three days. By observing their behavior across a series of selected example or work sample. Asses are required to participation in the basket exercise, work group computer simulation, role-playing and other similar activities which required the same attributes for successful performance, as in the actual job. After recording there observation of rate behavior, the raters meet to discuss these observation. The decision recording the performance of each asses is based upon this discussion of observation.

Future Oriented Appraisal

Management by Objective:

It was Peter Drucker who first gave the concept of MBO to the world way back in 1954 when his practice of management was first published. The MBO concept, as was conceived by drucker, reflect a management philosophy, which values and utilize employees contribution. Application of MBO in the field of performance appraisal is a recent thinking.

Prof. redden define M.B.O is established of effectiveness areas and effectiveness slandered for managerial positions and the periodic conversion of these into measurable time into bound objectives linked vertically and with future planning.

According to S.K chakarvarty:- M.B.O may be defined as a result centered non specialist operational managerial process for the effective utilization of material, physical and human resource of the organization, by the integration the individual with the organization and organization with the environment.

Step of Management By Objectives

First step is to establish the goal each subordinate is to attain. In some organization superior and subordinate work together to establish goals, in other superior establish goals for subordinate. The goal for typically refers to the

desired outcome to achieve. These goals can be used evaluate employees performance.

This involve the performance slandered the subordinate in previously time period. As subordinate perform they know fairly well what there is to do, what has be done, what remain to be done. In this actual level of goals attainment is compared with the goals agreed upon. The evaluator explorer reasons for the goals that we are not meet and the and for the goals were exceeded. This step help to determine possible training needs. It also alerts the superior to condition in the organization to but over which the subordinate has no control.

M.B.O. reduce roles conflicts and ambiguity.

M.B.O helps and increase employees motivation but it relates overall goals; to the increase an employees understand of where the organization is and where it is heading

MBO provides more objectives appraisal criteria. The target emerged from the MBO process provides a sound set of criteria for the evaluation the managers performance.

MBO are more likely to be complete with themselves than other manager. This kind of evaluation can reduce internal conflicts that often arise when manger compete with each other obtain scare resource.

LIMITATION OF MBO

It presupposes fixing of the individual goals and responsibility. But all work in an organization is a group effort where activate and so closely interrelated that no single single individual can be blamed or rewarded for any result.

It is difficult to appraise and identify potential. MBO only deals with performance of persons job.

It is difficult to make comparatively rating of individual because each individuals goals different from those of other in the term of complexity.

The method is extra ordinary time consuming.

MBO presume a certain level of trust through the hierarchy. But the organizational life teaches people to the caution. This inhibits honest dialogues and appropriate goals setting.

MBO is less applicable to routine worker level jobs, such as an assembly line. In this kind of situation more traditional performance appraisal tends to be used. The techniques are especially suitable for managerial professional and sales people and those who work independently.

How to minimize errors:

Clearly defined performance dimension and standards.

Performance appraisal only for feedback.

Combination of methods for appraising performance.

Continuous feedback.

Many appraiser rating backed up with example.

Appraisal for subordinate on the same performance dimension.

Appraiser with ability to appraise.

Training for appraiser.

Character sticks of an effectiveness appraisal system:

Relevance.

Reliability

Sensitivity

Acceptability

Tractability

Performance appraisal in Goodyear limited

Performance appraisal in todays competitive it is essential to harness individual aspiration and potential gear them suitably to meet business objectives. To make this happens, both you and the organization would like to know how you have been performing and your potential for growth.

THE OBJECTIVE OF PERFOMANCE APPRAISAL To be development in nature where individual grow with the organization. To integrate individual performance and contribution to larger organization goals and needs. To open greater communication between superior and subordinate. To encourage innovativeness through unique contribution. To focus on employees contribution and not on efforts.

APPRAISAL CYCLE

The appraisal cycle for DGM and above is 1st July to 30th June increments / promotion is effective from 1st July every year.

The appraisal cycle for employees and grade M2 to M8 grade become effective from 1st Jan. each year and from M8 to DGM from 1st April consequently, the appraisal period in respect of such employees after promotion is of 15 month for the first year.

APRAISAL OF TRAINEES

Only trainees who have regularized (confirmed on or before 30th September) shall be eligible for performance appraisal for that block of appraisal period. Trainees regularized there shall be eligible for confirmation appraisal according to the rules lay there under.

ANALYSIS &FINDINGS

ANALYSIS OF DATA TABLE 1 SAMPLE SIZE=50 EMPLOYEES Q.1 Do you know Goodyear limited has employee appraisal system? YES 50 100% NO 0 0%

AWARENESS OF PERFORMANCE APPRAISAL SYSTEM IN EMPLOYEES.

50 45 40 35 30 25 20 15 10 5 0 YES NO RESPONSE

According to my surveymaximum persons has agreed that Goodyear ltd. Has employees appraisel system.

TABLE 2

HOD Q.1 Who does the appraisal? 17 34%

IMMEDIATE SUPERIOR 30 60%

ANY OTHER 3 6%

WHO DOES THE APPRAISAL

30 25 20 15 RESPONSES 10 5 0 HOD IM ANY OTHER

According to my surveyImmediate Superior appraise 60% employees and HOD appraise 34% employees

TABLE 3

Q.3

what

are of

the the

PAY HIKES 15 30%

PROMOTION 15 30%

TRAINING NEEDS 11 22%

ANY OTHER 9 18%

objectives in co.?

performance appraisal

OBJECTIVE OF PERFORMANCE APPRAISAL

16 14 12 10 8 6 4 2 0

RESPONSES

PH

ITN

AO

P.H. - Pay hikes, P- Promotion ITN- Training Needs, A.O- Any other.

According to my surveyPerformance appraisal objective is 30% pay hikes,30% promotion ,22% training needs,18%any other

TABLE 4 SUPERIOR Q.4 What methods appraisal performance are used? APPRAISES 37 74% 360 DEGREE 0 0% MBO 13 26% ANY OTHER 0 0%

METHODS OF PERFORMANCE APPRAISAL

40 35 30 25 20 15 10 5 0 SA 360 MBO AO RESPONSES

SA- Superior Appraises, 360 degree,

MBO- Management By Objectives, A.O- Any other. According to survey Superior Appraisel methods is maximum adopted for Performance Appraisal of employees.

TABLE 5

ANNUALLY Q.5 Appraisal is done? 49 98%

BIANNUALLY QUARTERLY 1 2% 0 0%

MONTHLY 0 0%

APPRAISAL IS DONE

50 45 40 35 30 25 20 15 10 5 0 A B Q M RESPONSES

A-Annually, B- Biannually,

Q-Quarterly, M- Monthly According to survey Appraisal ia done annually for performance appraisal employees TABLE 6

ANNUALLY Q.6 How often the performance appraisal is reviewed? 43 86%

BIANNUALLY QUARTERLY 4 8% 2 4%

MONTHLY 1 2%

REVIEWE IS DONE

45 40 35 30 25 20 15 10 5 0 A B Q M RESPONSES

A-Annually, B-Biannually, Q-Quarterly, M-Monthly. According to survey performance appraisal is reviewed annually.

TABLE 7

SA Q.7objective is clear to you? of performance appraisal 19 38%

A 26 52%

N 3 6%

D 1 2%

SD 1 2%

UNDERSTANDIING OF APPRAISAL OBJECTIVE

30 25 20 15 10 5 0 SA A N D SD RESPONSES

SA-Strongly agree, A-Agree N-Neutral, D-Disagree, SD-Strongly Disagree According to survey objective of performance appraisal is strongly disagree 38%,agree 52%,neutral 6%,disagree2%.strongly disagree2%.so maximum persons have clear the objective.

TABLE 8

SA Q.8 Appraisal system has scope for communicating top management objective to you 19 38%

A 23 52%

N 5 10%

D 2 4%

SD 1 2%

UNDERSTANDING OF MANAGEMENT OBJECTIVES

25 20 15 10 5 0 RESPONSES

SA

SD

SA-Strongly Agree, A-Agree, N-Neutral, D-Disagree, SD-Strongly Disagree. According to survey maximum persons has understands the mgmt. objectives.

TABLE 9 Q.9 Appraisal system provides an opportunity to you to have a clear understanding of what is expected from you? SA 24 48% A 22 44% N 1 2% D 1 2% SD 2 4%

CLEAR UNDERSTANING OF THE EXPECTAIONS

25 20 15 10 5 0 RESPONSES

SA

SD

SA-Strongly Agree, A-Agree, N-Neutral, D-Disagree, SD-Strongly Disagree.

According to survey maximum persons have strongly agreed that expectations are clearly understandable.

TABLE 10

Q.10 Appraisal system focuses on individual development so as to make him achieve desired performance & result. SD 17 34% A 27 54% N 2 4% D 1 2% SD 3 6%

UNDERSTANDING ON INDIVIDUAL DEVELOPMENT

30 25 20 15 10 5 0 SA A N D SD RESPONSES

SA-Strongly Agree, A-Agree, N-Neutral, D-Disagree, SD-Strongly Disagree.

According to survey maximum persons agreed that appraisal system focuses on individual developments.

TABLE 11

Q.11 Your appraiser helps you to plan for performance in the beginning of the assessment year.

SA 21 42%

A 23 46%

N 3 6%

D 0 0%

SD 3 6%

HELP FROM APPRAISER

25 20 15 10 5 0 RESPONSES

SA

SD

SA-Strongly Agree, A-Agree, N-Neutral, D-Disagree, SD-Strongly Disagree

According to survey maximum persons have agreed that appraiser helps to plan for performance in beginning of assessment year.

TABLE 12

SA Q.12 Appraisal system helps you to plan your performance well in advance. 17 34%

A 23 46%

N 6 12%

D 3 6%

SD 1 2%

SYSTEM HELPS IN THE PLAN IN THE PERFORMANCE

25 20 15 10 5 0 SA A N D SD RESPONSES

SA-Strongly Agree, A-Agree, N-Neutral, D-Disagree, SD-Strongly Disagree

According to survey maximum persons agreed that appraisal system helps to plan performance well in advance.

CONCLUSION
CONCLUSION
1. All the employees at junior manager level in the company have the awareness of the performance appraisal system. 2. Most of the employees says that their superior does there appraisal 60% of the respondent says this. Performance appraisal is done annually in Goodyear. In actually MBO methods of the performance appraisal is used but 70% of the respondent said that their immediate superior does the appraisal. Only 26% of the employees said that the method of the performance appraisal in Goodyear is MBO. 3. 80% of the employees have the clear understanding of the objectives of the performance appraisal 80% of the employees were strongly Agree/ disagree with the statement objectives of performance appraisal are clear to you. 4. 30% of the respondent said that the pay hikes is the main objective of performance appraisal. While other b30% respondent said the objectives of the performance appraisal is promotion 22% said that identify training needs is the main objectives. But in actual all of these three and many more the objectives of the appraisal. 5. The immediate superior do appraisal in Goodyear. Assessment centre are also used in Goodyear but for promotion only. 6. Normally performance appraisal is reviewed annually but sometimes it is also twice or trice in a year

7. appraisal system in the company has the grade scope for communicating top management objective to the employees. 84% of the respondents were strongly agree/disagree that appraisal system helps in understanding top management objectives. 8. 90 % of the respondent were strongly agree with statement which state that appraisal system provides an opportunities for understanding what is expected from the employees. 9. Appraisal system in Goodyear also focus on the personal development of the employees so as to make them to achieve desired performance and result. It is good for both company and the employees for developing skills of the employees and to achieve desired objectives. 10. 88% of the respondent are satisfy with the help provides by the appraisal to plan performance in the beginning of the assessment year. Help, which they get from the appraiser is help in achieving the set objectives in the best possible way. 11. Appraisal system also help in planning the performance by the employee well in advance. 80% of the respondents were strongly agree/disagree with the statement Appraisal system helps you to plan your performance well in advance. In nutshell performance appraisal system in Goodyear India limited is the effective one. Most of the employees are satisfy with the appraisal process and the criteria of the appraisal.

SUGGESTIONS & RECOMMENDATIONS

SUGGESTIONS
The purpose of performance appraisal is to reward the employees, give them recognition and help them in carrier growth. So, the employee should know the basis on which they evaluated. For this company should arrange special classes like once year for getting the employees aware about the whole performance appraisal process. The production manager or the personal manager should interact more directly with their subordinate and try to know their needs, their problems and help or suggest them to overcome those difficulties. The company should invite the suggestion from the employees about change or improvement they want in the appraisal system. The feedback process should be made more sound and effective so that the employee could know the areas where there performance is low so that they could make it better in the future. Special training session should be organized besides regular training programmers for low performance areas. There should be more transparency in awarding makes to the employees. It should be effectively based on the merit and performance of the employees and not on the basis of any personal contacts, blood relation or any affection.

A small committee should be found that would keep a close watch on the whole exercise and make ensure that it would be fair process.

LIMITATIONS OF THE STUDY


1. Sample size was small i.e. 50 employees. 2. the time limit is one of the major constraint in conducting study. 3. biases may creep in the information given by the respondents. 4. main root of this research study was questionnaire and interview which has its own limitation, for example we cant measure the reliability, enthusiasm dissonance etc.

Annexure

QUESTIONNAIRE
Q.1 Do you know the Goodyear limited has employees appraisal system. (a) Yes Q.2 who does the appraisal? (a) HOD (c) Any other specify Q.3 Appraisal is done. (a) Annually (c) Quarterly (b) Biannually (d) Monthly (b) Immediate superior (b) No

Q.4 Objective of appraisal are clear to all employees. (a) Strong agree (c) Neutral (e) Strongly disagree Q.5 What are the reasons of performance appraisal in Goodyear limited? (a) Pay hikes (c) Identify training needs (b) Promotions (d) Any other specify. (b) Agree (d) Disagree

Q.6 what methods of performance appraisal are used? (a) Superior appraised the employees (b) 360 Degree (c) MBO (d)Any other specify

Q.7 How often performance appraisal are rewarded? (a) Annually (c) Quarterly (b) Biannually (d) Monthly Strongly Agree Agree Neutral Disagree Strongly Disagree

Q.8 Appraisal system has scope for communicating top management objectives to the employees? Q.9 Appraisal system provides opportunities to you to have a clear understanding of what is expected from you. Q.10 Appraisal system focus on individual development so as to make you to achieved desired performance and result. Q.11 Your appraisal helps you to plan for performance in the beginning of the assessment year. Q.12 Appraisal system helps you to plan you to plan your performance well in advance

BIBLIOGRAPHY

BIBLIOGRAPHY
Human Resource Management T.N CHHABRA. Human Resource Management V.S.P. RAO. GOODYEARS MANUAL. SEARCH ON INTERNET. www.google.com, www.goodyear.com GOODYEAR APPRAISAL POLICY.

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