PROJECT REPORT

ON

“PERFORMANCE APPRAISAL OF EMPLOYEES”

IN

SUBMITTED TO MAHARSHI DYANAND UNIVERSITY, ROHTAK k

FOR

THE PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF

“MASTER OF BUSINESS ADMINISTRATION”
(BATCH: 2009-11)

SUBMITTED TO: SUBMITTED BY:

DR. HARI OM SHARMA SHIPRA SAXENA
(MBA FACULTY) REGD NO: 06-DCF-698
ROLL NO.

Institute of Management & Technology Faridabad

(Approved by AICTE & Affiliated to M. D. University, Rohtak)

Near Sai Dham, Tigaon Road, Faridabad-121002

N B A - A I C T E Accredited Institute
 DECLARATION

I S H IP R A S A X E N A R o ll N o . C L A S ST H MS EB M
A 4of IN S T IT U T E O F M A N A G E M E N T &
TECHNOLOGY, F arid abad
hereby declared that the project entitled
"PERFORMANCE APPRAIAL OF EMPLOYEES" is original work and the
same has not been submitted to any institute for the award of any degree. The
interim report was presented to the supervisor on and the pre-submission
presentation was made on PERFORMANCE APPRAISAL. The feasible
suggestions have only incorporated in consultation with the supervisor.

Countersigned

Signature of the Supervisor Signature of the Candidate

Forwarded by
Director/Principal of the Institute
 PREFACE

It is well evident that work experience is an indispensable part of every professional

course. In the same manner practical training in any organization is a must for each and
every individual who is undergoing management course with the practical exposure one
can't consider himself as a qualified manager.

Hence to fulfill this requirement, my training was completed in ESCORTS INDIA

LIMITED

Entering the organization is like stepping into altogether a new world. At first,
everything seems strange & unheard but as the time passes one understands the
concept and working of the organization & thereby develop professional relationship.

Initially it felt as if classroom study was irrelevant and it is useless in any concern's
working. But gradually it was realized that all the basic fundamental concepts studies are
in one or the other to the organization but how and what can be done with fundamentals
depends upon the intellect and capability of the individual. It is just a matter to modify the
theory so as to apply it to a given practical solution.

I sincerely believe that there is no better place than the organization itself to learn the
practical side of the management.
 ACKNOWLEDGEMENT
First of all I owe my gratitude to the entire staff of the “ESCORTS INDIA LIMITED” who
provided me the necessary and relevant information towards the completion of my survey report.
I thank them for the critical suggestion and sound logical and design improvement during the
project. Without their timely help it has been very difficult for me to submit this project well me
on time.

The project would not have been completed without the guidance and encouragement of “Dr.
Hari Om Sharma” who provided me all the facilities and also helped me in choosing my project.

I am very thankful to our college guide “faculty guide of INSTITUTE OF MANAGEMENT &
TECHNOLOGY” for giving me the input and support, without his guidance the project would
not have been completed.

I am thankful for almighty of the God. He creates everything. Then I am grateful to my parents
for their love and affection, which has been the source of motivation for me forever.

SHIPRA SAXENA
 TABLE OF CONTENTS

S NO. TOPIC PAGE NO.

1. Chapter-1: Introduction
 Introduction
 Significance of the study
 Review of Literature
 Conceptualization
 Focus of the Study
 Scope of the Study
 Objective of the Study
 Limitations of the study
2. Chapter-2: Research Methodology
 Introduction Profile
 Organization Profile
 Research Design
 Sample Design
 Data Collection
 Limitations of the Study
3. Chapter-3 Micro Analysis
Micro Analysis
4. Chapter-4 Macro Analysis
Macro Analysis
5. Chapter-5 Findings, Reccomdations & Conclusion
 Findings
 Conclusion
 Recommendations
6. Bibliography & Appendices
SIGNIFICANCE OF PROBLEM
 • To provide an opportunity to each employee for self-reflection and individual goal-

setting, so that individually planned and monitored development takes place.

• To help employees internalize the culture, norms and values of the organization, thus

developing an identity and commitment throughout the organization.

• To help prepare employees for higher responsibilities in the future by continuously

reinforcing the development of the behavior and qualities required for higher-level positions

in the organization.

• Meet the organization’s legal & social obligations regarding the compensation of its work

force.

• Increase organizational & individual effectiveness in long term & short term.

REVIEW OF EXISTING LITERATURE

This chapter reviews literature relevant to the research objectives. It builds a theoretical
foundation upon which the research is based. It commences with an examination of what

performance is, and why it is measured. The chapter then considers how performance appraisal

fits into the parent discipline of performance management. A literature review covering appraisal

systems and their application follows, and this includes reference to the system in place at

Passenger Focus. The above secondary data will then lead to the building of the conceptual

model that will be tested through the research.

Performance Definition:-

The Oxford English dictionary defines performance as the “accomplishment, execution,

carrying out, and working out of anything ordered or undertaken”. Armstrong and

Baron (2005) argue that performance is a matter not only of what people achieve, but

how they achieve it. Bates and Holton (1995) suggest that performance is a multi-

dimensional construct, the measurement of which depends on a variety of factors.

Brumbach (1988) offers the most precise definition. “Performance means both

behaviors and results. Behaviors are also outcomes in their own right and can be

judged apart from results”.

From the definition, and interpretations above, it can be argued that performance is not

just about outputs, it is also concerned with actions and behaviors demonstrated to

achieve given targets. This issue will feature strongly through the research.

Much has been written on the need to manage performance. The Audit Commission

acknowledged this, suggesting in 1995 that performance management had become

something of an industry in its own right, dominated by “industry experts” and

management consultancies (Audit Commission 1995). Performance management is now

considered an essential part of normal management (Rose and Lawton 1999) and is

increasingly accepted as an integral part of public sector management (Wisniewski and

Olafson 2004). However, Hale and Whitman (2000) cite research by the Institute of

Personnel Management (1992) that suggests no consistent definition emerged from over 18

1800 employers surveyed. Williams (2002) also indicates that performance management

is difficult to define. This suggests a lack of understanding of performance measure

issues from those who are subject to the processes, and this will be explored later.

During research for this project, over 30 definitions of performance management were

uncovered. Most adopted a common strand along the lines of the definition provided by

Armstrong (2000) who writes “performance management is a strategic and integrated

process that delivers sustained success to organisations by improving the performance

of people who work in them, and by developing the capabilities of individuals and

teams”. The author, as a practitioner of Performance Management, offers the following, adapted

from by Walters (1995) Performance Management is about the arrangements organisations

make to get the right things done successfully. The essence of Performance Management is the

organization of work to achieve optimum results and this involves attention to both process and

people.

Further research by Armstrong (2000) suggests that when it is used well, it will contribute to

organisation success and as such, is a vital management function. Radnor

and McGuire (2004) also argued this point, but their research revealed, through a case

study at Bradford Health Authority, that effective performance management in the

public sector could be considered to be closer to fiction than fact. Of all the literature

reviewed on the wider subject of performance management, Radnor and McGuire

(2004) are amongst the minority in conducting in-depth attitudinal surveys that aid their findings.

INTRODUCTION OF PERFORMANCE APPRAISAL

People differ in their ability and aptitudes. These differences are natural to a grate extent and

cannot be eliminated even by giving the same basic education and training to them. There will be

some differences in the quality and quantity of work done by different employees even on the

same job. Therefore, it is necessary for management to know these differences so that the

employees having better abilities may be rewarded and the wrong placements of employee may

be rectified through transfers. The individual employee 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 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 an

employee’s worth to the organization of which he is a part. However, a fair determination of the

worth of an employee can take place only by appraising numerous factors some of which are

highly objective, as for instance, attendance, while others are highly subjective, as for instance,

attitude and personality.

MEANING OF PERFORMANCE APPRAISAL

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.

“Performance appraisal includes all formal procedures used to evaluate personalities and

contributions and potentials of group members in a working organization. It is a

continuous process to secure information necessary for making correct and objective

decisions on employees.”

"Performance Appraisal is a formal structured system of measuring and evaluating

employees job related behaviors and outcomes to discover how and why the employee

is presently performing on a job and how the employee can perform more effectively

in the future so that the employee, organization and society all benefit"

Performance appraisal is the systematic evaluation of the individual 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.

PURPOSES OF PERFORMANCE APPRAISAL

1) Promotions: - promotion is the most important objective of performance appraisal. It is to the

common interests of both the management and employees to promote employees into positions

where they can most effectively utilize their abilities. It is mismanagement to promote employees

into positions where they cannot perform effectively at the time in question. A properly

developed and administered performance appraisal system can aid in determining whether

individuals should be considered for promotion or not. The system should rate the individual for

the present job and his potentialities for the higher job. A person performing his job well does

not necessarily mean that he is fit for promotion.

2) Human resource planning: - Performance appraisal generates significant, relevant and useful

information about the promote ability and potential of employees. This information is used to
assess the organization’s internal supply of human resources and availability of managerial

personnel for succession planning.

3) Recruitment and selection: - Evaluation made in performance appraisal can be used to find

out the particular areas of knowledge, skills and experience which successful performer’s posses.

This information can be used to review effectiveness of recruitment and selection procedures 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 to advise suitable training and

development programmes to enable employees to overcome their weaknesses and improve their

strengths.

5) Compensation: - Information gathered through performance appraisal provides inputs for

making decisions concerning salary administration, financial incentives, appreciations, additional

responsibilities etc.

PERFORMANCE APPRAISAL PROCESS

METHODS OF PERFORMANCE APPRAISAL
 Written essay

 Critical incidents

 Checklist

 Graphic rating scale

 Behaviorally anchored rating scales (BARS)

 Group order ranking

 Individual or straight ranking

 Paired comparison

 MBO (result oriented appraisal method)

 Group appraisal of subordinates

 Peers appraising the colleague

 Subordinates appraising the boss

 360 degree feedback method

 Assessment centers method

ERRORS IN PERFORMANCE APPRAISAL

 Leniency or severity error

 Central tendency

 Halo effect/error

 Similarity error

 Contrast error
 Shifting standards

 Influence of recent events

 Tendency to give high rating

 Length of service bias

 Personal bias

HOW TO MINIMISE ERRORS

 Clearly defined performance dimensions and standards

 Performance appraisal only for providing feedback

 Combination of methods for appraising performance

 Continuous feedback

 Many appraisers rating backed up with examples

 Appraisal of subordinates on the same performance dimensions

 Appraiser with ability to appraise

 Training of appraisers
 Operationalization of the concept

PERFORMANCE APPRAISAL IN ESCORTS LIMITED

In today’s competitive environment it is essential to harness individual aspiration and potential

and gear them suitably to meet business objectives. To make this happen, both you and the

organization would like to know how you have been performing and your potential for growth.

THE OBJECTIVES OF PERFORMANCE APPRAISAL

 To be developmental in nature where individuals grow with the organization.

 To integrate individual performance and contributions to larger organizational goals and

needs.

 To open greater communication between superior and subordinate.

 To ensure a realistic link between performance, recognition and reward.

 To provide core data for human resource development / organizational

development efforts.

 To encourage innovativeness through unique contribution.

 To focus on employee contribution and not on efforts.

APPRAISAL CYCLE

The appraisal cycle for DGM and above is 1st June to 30th June. Increments / promotions are

effective from 1st July every year.

The appraisal cycle for employees in grades 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 i.e. the next review would be on 1st

April or 1st July, as the case may be, of the following year.

APPRAISAL OF EMPLOYEES ON DEPUTATION

In case the employees are working on deputation in a different company/division of Escorts, the

parent company division shall carry out employees’ appraisal. This is not applicable to

employees in the categories of DGM and above and their cases will continue to be processed as

usual from the chairman / vice chairman’s office as is being done at present.

APPRAISAL OF TRAINEES. (All categories)

Only trainees who have been 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 laid there under.

CONFIRMATION APPRAISAL

Trainees on completion of the training period and employees on completion of probation period

shall be appraised for regularization / confirmations. During confirmation / regularization,

incumbents are evaluated for:-

1. Group performance

2. Personal performance

3. Supervision and leadership qualities

4. Developmental needs

Employees are covered for superannuating only after confirmation but with effect from their date

of joining.
MANAGERIAL PERFORMANCE APPRAISAL PROCESS

OBJECTIVE:

To identify and categorize employees of managerial cadre, in three distinct contributory levels

based on performance review against last year’s KRAs and assessment of competencies.

HOW TO FILL APPRAISAL FORM:

The managerial appraisal form consists of the following sections.

Section A: Review of goals achieved against KRA’

Section B: Feedback on managerial competencies.

Section C: Development Needs

Section A: Review of goals achieved against KRAs

This section consists of 70 points. In this section appraisee is required to fill details of KRAs,

objectives and achievements and assign weightages against each KRA, agreed in the beginning

of the review period. Appraiser is required to capture his/her observations and score each KRA.

Section B: Feedback on managerial competencies

This section consists of 30 points. In this section appraiser is required to give feedback on the

listed managerial competencies indicating the performance factor that best describes the

appraisee, substantiating it with actual events/behavior.

Section C: Development needs

In this section the appraiser is required to fill in the strengths/areas of improvements relevant to

appraisee in carrying out his current job or higher responsibilities.

 REVIEW PROCESS:

The review discussion should take place on a one-to-one basis in an uninterrupted manner and it

is expected that typically such a meeting would last for about 60 to 120 minutes. This discussion

would be based on performance plan documents (KRA’s) agreed last year. Sequence of the

process would be as described below:-

Step 1: Appraiser to gather adequate data on the appraisee’s performance against predefined

KRAs.

Step2: Appraiser to schedule meetings for performance review with the appraisee.

Step3: Appraiser to give feedback to appraisee based on his observations with emphasis on

performance aspects where appraisee can improve. Appraiser should avoid loaded / judgmental

terms that may lead to emotional setbacks.

Step4: Towards conclusion, the appraiser should complete the form. This would form the

summary of discussions that took place between appraisee and appraiser.

Step5: The performance against KRAs is to be quantified and scored out of a maximum of 70

points. In addition, the appraiser needs to give score against competencies defined out a

maximum of 30 points. Thus each appraisee will have a total score received out a maximum of

100 points. Important Since the subject under discussion is highly sensitive, the details of the

discussions should remain confidential between the two.

Step6: The completed format with total score assigned based on the review may be forwarded to

the reviewer for his concurrence.

Step7: Reviewer to review appraisals of all managers’s in his/her area to ensure that a fair

process has taken place and no biases have crept into the assessment.
Step8: Thereafter, the data is to be collected at DMG / Department level for each area. If the

strength is less, appropriate aggregation at Divisional / Functional level may be done. For

example, in R&D center, aggregation may be done at a divisional level. All managers’ have to be

ranked from top to bottom on a relative basis to arrive at the final ratings at this level as defined

below. Concerned HR manager would help the DGM / MANCOM member in finalizing the

ratings.

Step9: HR would summarize the data for whole of AMG and present before business head for

his concurrence before issuing letters to individuals.

PERFOMANCE RATING:

The three performances rating categories and expected distribution pattern, as

a percentage is as under.

Rating Category %age Distribution Description

Cat-1 20% top 20 percentile

Cat-2 70% next 70 percentile

Cat-3 10% bottom 10 percentile

 FOCUS OF STUDY

The researcher intends to study the different approaches of appraisals adopted & employee

attitude, employee satisfaction & industrial morale. It also analysis the most commonly occurring

errors within performance appraisal methods & to understand the level of effectiveness of 360

degree appraisal.

OBJECTIVES OF THE STUDY

The objectives of doing work on the performance appraisal in the escorts ltd company are as

follows:

1. To study the effectiveness of appraisal system in the escorts ltd company.

2. To study the performance appraisal process of Junior Managers in the escorts ltd

company.

3. To study, whether the system is helpful for both the employer (to communicate the

organizations plans, expectations, etc.) and employees (to express the training &

development needs).

4. To study the employees view points on their performance appraisal.

 LIMITATIONS OF THE STUDY

With the proper due care, this study has been conducted but it consists of some of its

limitations also which are as follows:

 The time limit is also one of the major constraints in conducting study.

 Biases may creep in the information given by the respondents.

 Main root of this research study was questionnaire & interview, which has its own

limitations, for example we can’t measure the reliability, enthusiasm dissonance etc.

 Data taken from secondary sources, so it is not fully reliable.

 During the training in the organization I faced some problems like every person was very

busy so they could not give me proper time.

 Due to problems we could not take the training properly in the organization.

 Some respondent did not provide accurate information.

 Lack of cooperation the respondents.

 Monetary Limitations.

CHAPTERISATION

Chapter 1

This chapter reviews literature relevant to the research objectives. It builds a theoretical

foundation upon which the research is based. It commences with an examination of what

performance is, and why it is measured. The chapter then considers how performance appraisal

fits into the parent discipline of performance management. A review of literature covering

appraisal systems and their application follows, and this includes focus, objectives and

limitation.
Chapter 2

This chapter describes the methodology that will be used to gather the primary data. It will

outline the research paradigm selected, set out the research strategy, and also justify the selection

of the methodology.

Chapter 3

This chapter will present the micro analysis of the research. Due to the different methods used to

research the questions , some will be presented in tables and pie chart.

Chapter 4

This chapter gives an overview of the whole project. It sets out what the research area is, on the

basis of the earlier studies obtain in micro analysis are to explained – information for the general

reader. . This chapter also gives an overview of why an interpretive paradigm has been selected,

and sets out and justifies the research strategy.

Chapter 5

Chapter 5 will set out conclusions about the research objectives through linking the research

findings, with the findings of chapter 3. The chapter will discuss summary, finding and

recommendation of the research and set out opportunities for additional research that will further

enlighten the problem area.

 INDUSTRY PROFILE

THE ESCORTS SYMBOL

The Escorts symbol means more than a seen by the eye. It has been prepared

with certain objective in mind and is symbolic in more than one way.

The philosophy behind Escorts and the ‘E’ in the Escorts is “Enterprise”. The Hexagon is a

symbol of productivity, precision when interposed as a nut. It symbolizes a craftsmanship, and

mending productivity. The sprains superimposed on the Hexagon represent the workers and the

people of the Escorts. This forms the letter ‘E’ the first of Escorts a company even on the more

changing unveiling the future.

ESCORTS AGRI MACHINERY GROUP

The Vision
We shall strive to be the numero uno in the Indian tractor industry and top five tractor

manufacturers in the world.

We shall continuously strive to meet the ever rising expectations of our valued customers at the

lowest internal cost.

We shall aim to offer the farming community a range of innovative products and services, which

shall enable them to improve their productivity and competitiveness.

We shall achieve a turnover of Rs.20 Billion and Profit of Rs.2 Billion by the year

2000.Transcending national boundaries, we shall strive to attain exports of one tenth of our total

tractor production by the year 2000.

MISSION

We will achieve leadership in market share & profitability in the domestic tractor market by the

year 2004-2005 and shall be the world's largest supplier of sub 100 HP tractors. We shall

proactively contribute to the prosperity of the rural economy by defining a larger role for

ourselves in the Food and Agriculture sector.

 COMPANY PROFILE

ESCORTS LIMITED are the holding company of Escorts groups. Post restructuring, Agri

Machinery or tractors has become the focus area of operations. Other businesses like I.T.,

construction equipment are controlled through subsidiaries and joint ventures.

HISTORICAL BACKGROUND

Escorts came into being with a vision and a mission. A vision that led two brothers YUDI

NANDA and HARI NANDA to branch out from their family’s prospering transport business and

institute ventures that were to become the foundation of ESCORTS Ltd. Escorts agents limited

was born at Lahore on 17th Oct, 1944 with YUDI NANDA as managing director and HARI

NANDA as the chairman. After that owning to the opportunities lying in the Indian villages

Escorts (Agricultural Machines) Ltd., was launched in 1948 with YUDI NANDA as the director.

Tragically, he died in an accident in 1952. Then Escorts Agents Ltd. And Escorts (Agricultural

Machines) Ltd. Was merged in 1953 to create a single entity Escorts Agents Pvt. Ltd. The

company’s incorporation in its present name, Escorts Ltd. was effected on 18th January 1960.

Having initially started with a franchise for vesting house domestic appliances, Escorts has come

a long way in manufacturing and marketing a large range of products. It has pioneered farm

mechanization in India through import and distribution of agricultural tractors.

The manufacturing operations commenced in 1954, and since then the following

range of products have been introduced in the country:-

1954:Piston rings and cylinder liners

1960:Pistons

1961:Assembly of tractors
1962:Motorcycles and railway couplers

1963:Automotive shock absorbers

1965:Agricultural tractors under Escorts band name

1969: Agricultural tractors under Ford brand name

1971:Industrial and construction equipment

1979:Excavator loaders

1981:100cc motorcycles

1985:Electronic PABXs

1991:Harvester combines

1992:VSAT Satellite communication System

1993:Mobile communications

1995: Fork lift trucks

1996: Disengagement of joint venture collaboration with New Holland and launch of

FARMTRAC Tractor

The single word completely described the character philosophy and success of the company,

which grew from a small beginning to one of the ever-changing dimensions. For five decades

Escorts has been in the core sectors like Agriculture, Transportation and Construction &

Resources for engineering change through optimum product performance.

Today Company is running with nearly 10,000 employees, 19 modern manufacturing plants and

a turnover exceeding Rs. 400 crores. The Escorts group ranks among India’s leading Engineering

Conglomerates.
From its inception Escorts has firmly believed that success inspiring on being close to the

customer thus every corporate endeavor addresses it to end used, adjusting to ever changing

markets.

At every step of the way, Escorts had inducted the latest technology by forming alliances with

the world’s most advanced Engineering and Electronic companies, constantly adopting their

technology according to India’s need and situation.

To make sure the finished product delivers on its promise the company had created an extra-

ordinary distribution and service network that stays with the customer.

Escorts came into its own with a far reaching vision for the future to stay over close to the

customers with products made in India to international standards. The source of Escorts

consistent growth is commitment and contribution to the core needs of the country. Escorts have

firmly believed that success depends on being close to the customers. As early as in 1944 while

others were concentrating on selling their goods. Escorts sought to “Escorts” its merchandise

right up to the customer’s doorstep. This meant staying close to the customer, understanding

their needs, giving them a product that met these needs ensuring that it worked smoothly

thereafter.

Today with Mr. Rajan Nanda as a Chairman and Mr. Anil Nanda as a Vice- Chairman the ideals

have not changed. Thus, every corporate endeavor addresses to the end users and the ever-

changing market, substantial man-hours are being devoted to planning a new range with the

objective of consistently offering greater value to the customer.

“In every area we touch our task has always remained one of engineering

change” Rajan Nanda. In every step, Escorts has induced the latest technology to
make products that are not merely “better” but those meet international standard. For Escorts,

these are two benchmarks of industrial achievements, the distinct, undisputed edge of technology

and the internationalization of business.

In five decades Escorts has grown to become one of the top industrial conglomerates in the

country.

FIVE DECADES OF ENGINEERING CHANGE

THE DECADE OF CREATION: 1944-1954

The launch of Escorts Agents Pvt. In Lahore and setting it all up again in Delhi after the

country’s partition. The beginning of an industry legend, with a tractor franchise, followed by

India’s first institute of farm mechanization and the company’s first industrial venture, Goetze

(India) Ltd., at Patiala, in equity collaboration with Goetze of Germany.

THE DECADE OF AUTOMATION: 1955-1964

Escorts go public. A full-fledged manufacturing orientation takes roots with the commencement

of Escorts’ own brand of tractors and next major field of operation: motorcycles. The company

joins hands with Mahle to produce India’s most advanced pistons.

THE DECADE OF CONSOLIDATION: 1965-1974

The foundation of the Ford-Escorts alliance for India’s finest tractors, soon to make the group the

largest selling tractor manufacturing. Escorts Employees Ancillaries Ltd., a unique venture in

industrial democracy, comes into being.

Escorts receive FICCI Award for outstanding contribution to Indian agriculture. The company

crossed national boundaries with its first export of 400 tractors to Afghanistan, won in a global
tender. A triumph of Escorts quality and competitiveness, this was perhaps the world’s largest

ever commercial airlift of its kind.

THE DECADE OF DIVERSIFICATION: 1975-1984

One with Knorr Bremse follows an epoch-making alliance with JBC for India’s first Excavator-

loaders for railway breaks. With the Yamaha collaboration, Escorts become the country’s largest

motorcycle manufacturer. Acknowledged leadership in automotive ancillaries- Mahle pistons

and Goetze rings.

THE DECADE OF GLOBALISATION: 1985-1995

Escorts enters into joint venture with buy back arrangement with Class (Harvester Combines)

and Herion (Hydraulic valves) providing an entry to world markets. A tie-up with Faun, powers

the company to supremacy in hydraulic mobile cranes. Escorts fights an epic battle against a

corporate raid, the ultimate victory providing the unshakable confidence of the company’s small

shareholders countrywide. Escorts Heart Institute commissioned, hailed as among Asia’s most

advanced. Escorts turnover crosses Rs. 15 billion. In the sunrise telecom sector, alliances with JS

telecom, a Bosch company, and Hughes Network systems, world leaders in VSAT networks.

THE DECADE AHEAD: 1996-

The Mission is Globalization and the emphasis will be on core sector investments. Escorts is

going in for a global network and for mega projects in the 21st century.

ESCORTS: RESTRUCTURING

Escorts Limited is all set to meet the future by drawing on its 50-year equity gained from its

inherent strengths, a strong presence in the Core Sector providing complementary product lines

and a vast marketing network; combining them with India’s intrinsic cost advantages to become

a global source point for high value engineering products.

In order to meet the challenge of the future and to leave an indelible mark on industrial scenario,

Escorts has restructured the group along 4 business lines, each headed by an independent CEO.

The business groups are as follows:-

1) Agri Machinery Group

2) Construction Equipments

3) Automotive Ancillaries

4) Financial Services

ESCORTS – THE GROUP INFRASTRUCTURE

The flagship of the Escorts group is Escorts Ltd. in the words of Mr. Rajan Nanda. Chairman

Escorts Limited., “in the last 50 years Escorts has been more than merely one of India’s largest

Engineering Companies. It has been a prime mover on the industrial front; at every stage

introducing products and technologies that helped take the country forward in key areas. Today

as the nation engages in its most momentous economic transformation ever, we are once again

adapting ourselves towards being catalysts for qualitative growth by Engineering Change with a

global perspective.”

 The group infrastructure comprises:-

 23 main associates/subsidiary companies

 12 manufacturing locations

 A full-fledged R&D facility

 Nearly 10,000 employees

 24 regional marketing offices

 Nearly 500 ancillaries forming the vendor base

  4 financial services companies

 Asia’s best training institute of Farm Mechanization with 100 acre demonstration farm.

 EDDAL Escorts Dealer Development Association providing management and

financial support to dealers.

THE ESCORTS GROUP

• THE FLAGSHIP COMPANY

Escorts Limited

• OPERATING DIVISIONS

o Agri machinery division

o Engineering division

o International business division

• SUBSIDARY COMPANIES

o Escorts construction equipment Ltd.

(Cranes, excavators, truck loaders)

o Esconet services

o Escorts Automotives

(Investment)

o Escosoft technologies

o Escortal tele communication ltd.

o Cellnext solutions

o Automatrix India

o Escorts heart institute & research center

o Escorts hospital & research center

Medical care (erstwhile division of Escorts lived off 100% subsidy

• ASSOCIATE COMPANIES

o India Ltd. GOETZE (India) Ltd.

o GOETZE TP (India) Ltd.

o GOETZE (India) assets management Ltd.

o Escorts securities ltd.

o Escorts Mahle Ltd.

oEscorts Employees Ancillaries Ltd.

o Escorts Finance Ltd.

o IFS India Escorts

o Hughes Escorts communication ltd.

o Carraro (India) ltd.

THE BIRTH OF FARMTRAC

The Escorts Tractors Ltd, (ETL) came in existence as a separate company in 1969, after a

collaboration of Escorts Ltd. with R.J.Hampson, executive vice president, Ford Motor Company,

USA and Mr. H.P.Nanda, President ETL. The company entered to a capital market with a public-

cum-right issue of partly convertible debentures of 40.89 crores.

The Escorts group initiated the business reconstruction exercises in order to strengthen its

business in the face of reemerging challenges. New Holland the international partner too was

looking for ways to independently pursue its business goals in this country. This lead to an

amiable agreement between escorts and Ford Motors to end their joint venture association.
Escorts acquired the entire equity stack of its international partner whereby the company is now

the subsidiary of Escorts Ltd.

This acquisition has taken its logical conclusion on 1st April 1996 with the emergence of

Farmtrac division, which produces Farmtrac tractors with Escorts Ltd. This led to the emergence

of Escorts Agri-Machinery Group.

The parting of ways with New Holland also meant saying goodbye to Ford, a brand name that

has stood the company in excellent stead over two decades and half. The brand name has also

been changed from Ford to Farmtrac and the name of the Md. models Ford 3600, 3610 and 3620

has been changed to Farmtac 50 and Farmtrac 60.

A TRADITION OF TRUST

Economy range 27 - 35 HP

The very first range of tractors introduced by Escorts range of tractors has a tradition of service

and trust behind them. They are farmer year round dependable friends.

MODELS

Escorts 325

Escorts 335

THE SUPER DIESEL SAVER

Value range 30- 47HP

The Powertrac range of tractor is designed to give spectacular diesel

economy. They act as ambrosia during there trying times of rising diesel costs.

MODELS

Escorts 430 powertrac-30HP

Escorts 436 powertrac-35 HP

Escorts 440 powertrac-40 HP

Escorts 450 powertrac- 47 HP

THE WORLD CHAMPIONS

Premium range 30- 75HP

Exported to the most advanced markets in the world, they are sophisticated machines designed

for the world demanding requirements of the progressive farmers. This range is accepted very

well in abroad. The farmtrac range is the ultimate icon in the tractor technology with the

advanced features for scientific farming and other applications.

MODELS

Farmtrac30- 30HP

Farmtrac35- 35HP

Farmtrac45- 42HP

Farmtrac50- 45HP

Farmtrac60- 50HP

Farmtrac70- 60HP

Farmtrac80- 75H

FARMTRAC DIVISION – A PROFILE

1) MANPOWER : 1659

MANAGERS : 162

SUPERVISORS : 156

TEAM MEMBERS : 1341

2) PRODUCTION CAPACITY
 120 Tractors per day

3) CURRENT PRODUCT RANGE

 FT 30

 FT 35

 FT 45

 FT 50

 FT 55

 FT 60

 FT 70

 FT 80

4) TURNOVER

Rs. 400 CRORES

5) EXPORTS

EXPORTED TO USA, TURKEY

TRACTORS EXPORTED IN 2001-02

PLANNED FOR 2002-03 :

6) ISO 9000 CERTIFIED

ISO 9001 CERTIFIED

THE PLANT

The plant is equivalent with the following units:-

 Engine Productive Unit (EPU)

 Transmission Productive Unit (TPU)

 Rear Axle Productive Unit (RAPU)

 Tractor Productive Unit (TPU)

 Paint Shop

Now transmission productive unit and rear axle productive unit have been merged and now it is

one productive unit known as transmission and rear axle productive unit.

The plant is equipped with the following facilities:-

MACHINE SHOP: EPU, RAPU AND TPU have separate machine shops equipped with

several purpose machine (SPM) as well as Computerized Numerically Controlled (CNC

machine).

The different components machine in these shops with their respective sections are listed

below:

 Cylinder Head Cylinder Block and Connecting Rod.

 Case Transmission.

 Center Housing & Trumpet Housing.

 Tool Room.

 Turning, CNC, Gear Cutting, Grinding & Heat Treatment.

In heat treatment shop following facilities are available:

 Gas Carbonizing, Hardening & Tempering

 Induction Hardening

Following facilities are available in the various productive units:

 Transmission assembly

 Rear axle assembly

 Engine assembly and testing

 Tractor assembly and testing

 QUALITY POLICY

We shall strive to continuously

Improve to meet the ever rising

Expectations of our customers

At the lowest cost.

Each one of us must fulfill the

Need of our customers, both

Internal and external, with the

Highest degree of commitment,

Thereby creating a quality

Organization geared to ensure

Total customer satisfaction and

The sustained health and

Prosperity of our business

QUALITY OBJECTIVES

Escorts Limited – AMG Plant-II Quality Objectives are derived for the quality policy and are

intended to provide quality direction to employees in the day to day operation of the plant.

The quality objectives are applicable to AMG Plant-II is approved by Plant

Head. The approved quality objectives are below:

 Escorts Limited- AMG Plant Quality Objectives are derived from the Quality

policy and are intended to provide Quality Director to Employees in the day

to day operations of the company.

 We will attempt to give our Customers the best value for their money by

supplying products to match customer specifications/needs.

 We will attempt full customer satisfaction by monitoring customer

perceptions and brand image of our product through market surveys and

periodic direct customer contact in the market place.

 We will pursue continuing improvement in Product Quality and Productivity

by suitable indicators to measure the trends of improvement resulting from

our efforts.

 We will strive to ensure full commitment and conformance to the Escorts

Limited – AMG Plant-II Quality Management System in all areas of work

and take prompt corrective action on any problem that may occur.

 We will work together as a team across departments and organizational levels

using Task Forces to develop a common focus and greater effectiveness in

solving problems.

 Specific Corporate and Departmental Objectives for a particular year will be

derived from the above used to monitor and control company operations.

Best value for money, customer satisfaction, continued improvement in product quality,

productivity conformance to quality management system in each area of work, prompt corrective

action and team building are the major focus areas of quality objective of AMG Plant-II.

PERFORMANCE MEASUREMENT

Yearly quality objectives business objectives for Plant-II are finalized on yearly basis to achieve

the Corporate Business Objective and ensure continual improvement in Quality Management

System.
Plant objectives are further sub divided for each PU/Department and key

result area are identified for measurement of performance for each process.

PU/Department Head Monitors the performance and reviews the actual performance as

compared to the objective. Finalizes corrective/preventive action plan to achieve laid down

objective on monthly basis for continual improvement.

MANAGEMENT REVIEW

FEEDBACK OF Department review is forwarded to MR as input to

management review.

Formal management review covering all aspects of review input & output. Agenda in line with

ISO 9001:2000 takes place once in six months frequency. The frequency may be increased or

decreased based on the level of effective implementation.

Head of AMG Plant-II or PU Head authorized by him in his absence conducts Management

Review to ensure continued suitability, adequacy and effectiveness of the Quality Management

System.

All the PU Heads, Departmental Head of Manufacturing Operations of AMG

or their nominated representatives attend the Management Review.

ISO 9001

The international organizational organization for standardization (ISO) is a specialized

international agency for standardization, presently comprising the national standard bodies of 91

countries including India.

The objective of ISO is to promote development of standardization with a view to facilitate

international exchange of goods, services and also develop a cooperation in the sphere of

intellectual scientific, technological and economic activities.

The Escorts Tractors Ltd. enjoys a formidable reputation in the market solely because of its

unrivaled quality. It is because of the company’s entirely uncompromising commitment to

quality improvement and maintenance that in the course of the year it became the first tractor

company in the country to receive the highly coveted and prestigious ISO-9001 certification

under the revised rules of 1994.

 RESEARCH METHODOLOGY

The research methodology is a way to solve the research problem in a systematic manner. It

depends upon the various steps like objectives of the study, how the data is collected, how much

is the sample size required and the limitations of the study. 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 DESIGN

 “A research design is the arrangement of condition for collection & analyzing of

data in a manner that aims to combine relevance to the research purpose with economy in

procures."

 “Research design is the framework or the blueprint or foundation for conducting the

research project”

 “Research design is the conceptual structure within which research is conducted. It

constitutes the blueprint for the collection, measurement and analysis of data”.

 TYPES OF RESEARCH DESIGN

 Exploratory Design

 Descriptive Design

 Experimental Design

(A). Exploratory Design:-

Exploratory research studies are also termed as formulative research studies. The main

purpose of such studies is that of formulating a problem for more precise investigation.

(B) Descriptive Design:-

Descriptive research is concern with describing the characteristics of a population of

phenomenon.

(C) Experimental Design:-

Experimental research studies are those where the researcher test the hypothesis of casual

relationships between variables.

I HAVE USED EXPLORATORY AS WELL AS EXPERIMENTAL RESEARCH

DESIGN IN THIS PROJECT

COLLECTION OF DATA

 Both primary and secondary data were collected to meet the objective.

Source of Data

(a) Primary Data:

 Primary data is the data which is collected for the first time. It is collected from

the source of origin

 For primary data collection questionnaire was framed considering certain factors

like manpower planning, recruitment sources, selection method etc.

 A copy of questionnaire is also attached in the Annexure. Questionnaire method

is being followed and was preferred over interview method because:-

 • It is more economical

• This method can cover wider areas.

• This method is original and therefore very reliable.

• Respondents feel more comfortable while answering the questions

asked.

(b) Secondary Data:

 The secondary data are those which are already in existence and which have

been collected for some other purpose.

 The secondary data can be collected from the following sources:-

• Company Reports.

• Pamphlets.

• Magazines.

• Personnel Department.

Sampling
The sampling was based on non probability sampling techniques the convenience sampling and
judgmental sampling
The population for my research work was employees of Escorts Limited Powertrac. Sample
Size for the study was 50 employees and managers.

Research Instruments
The tools used for the data collection in the present study are:
Questionnaire contains likert scale, questions with choices
 • Strongly Agree

• Agree

• Strongly Disagree

• Disagree

• Neither Agree Nor Disagree

ANALYSIS PATTERN

Cumulative consideration of factors (that may be subjective or objective) to determine a

representative indicator or appraisal of an individual or entity’s activity, or performance in

reference to some subjective (or standard) over some period of time. Factors to consider may

include degree of goal attainment, how items are measured, and what standards are to be applied.

Various charts,graphs & bar diagrams will be used to show the different patterns of

competencies of employees and the study will be qualitative aspect.

 MICRO ANALYSIS

1. Performance appraisal system is needed in organization .

NO. of Respondents Percentage

Strongly Agree 17 22
Agree 12 57
Strongly Disagree 12 5
Disagree 9 16
Neither Agree Nor Disagree 0 0
Total 50 100

STRONGLY
DISAGREE
5% 16% DISAGREE
22%
0%
NEITHER AGREE
NOR DISAGREE
AGREE
57%
STRONGLY AGREE

Interpretation:
 57% of the employees are agree with the performance appraisal system that

is needed in the organization & rest of them are strongly disagree, disagree,

neither agree nor disagree and strongly agree.

2. Satisfied with the existing performance appraisal system.

NO. of Respondents Percentage

Strongly Agree 19 8
Agree 10 36
Strongly Disagree 8 10
Disagree 7 44
Neither Agree Nor Disagree 6 2
Total 50 100

STRONGLY
DISAGREE
8% 10% DISAGREE

NEITHER AGREE
36% NOR DISAGREE
44% AGREE
2%
STRONGLY AGREE

Interpretation:-
44% of employees are strongly agree with the existing system, 36% of the

employees are agree with existing system and the rest of them are strongly

disagree, disagree and neither agree nor disagree.

3. The performance appraisal helps to win co- operation and team

work.

NO. of Respondents Percentage

Strongly Agree 15 43
Agree 12 45
Strongly Disagree 10 3
Disagree 8 6
Neither Agree Nor Disagree 5 3
Total 50 100

STRONGLY
DISAGREE
6%
3% DISAGREE
3%
43%
NEITHER AGREE
NOR DISAGREE
45% AGREE

STRONGLY AGREE

Interpretation:-
45% of the employees agree that the performance appraisal helps to win the co-

operation and team work, 43% of the employees are the strongly agree and the rest

of them are strongly disagree, disagree and neither agree nor disagree.

4. The performance appraisal is helpful for improving personnel’s

skill.

NO. of Respondents Percentage

Strongly Agree 25 35
Agree 10 41
Strongly Disagree 10 5
Disagree 3 12
Neither Agree Nor Disagree 2 7
Total 50 100

STRONGLY DISAGREE

5% 12% DISAGREE
35% 7%
NEITHER AGREE NOR
DISAGREE
AGREE
41%
STRONGLY AGREE
Interpretation:-

41% of the employees are agree that the performance appraisal is helpful for

improving personnel’s skill, 35% of the employees are strongly agree and the rest

of them are strongly disagree, disagree and neither agree nor disagree.

5. Training programmes are effective for individual and organization

development.

NO. of Respondents Percentage

Strongly Agree 22 46
Agree 12 20
Strongly Disagree 4 10
Disagree 8 18
Neither Agree Nor Disagree 4 6
Total 50 100
 STRONGLY
10% DISAGREE
18%
DISAGREE
20%
NEITHER AGREE
NOR DISAGREE
6% AGREE

46%
STRONGLY AGREE

Interpretation:-

46% of the employees are strongly agree that training programmes are effective

for individual and organization development and the rest of them are strongly

disagree, disagree, agree and neither agree nor disagree.

6. The performance ratings were done periodically.

NO. of Respondents Percentage

Strongly Agree 17 38
Agree 15 47
Strongly Disagree 12 8
Disagree 3 6
Neither Agree Nor Disagree 3 2
Total 50 100
 STRONGLY
DISAGREE
5% 8% DISAGREE
2%
38%
NEITHER AGREE NOR
DISAGREE
AGREE
47%

STRONGLY AGREE

Interpretation:-

47% of the employees are agree that the performance ratings were done

periodically

7.The performance appraisal system helps to identify the strength and

weakness of the employee.

NO. of Respondents Percentage

Strongly Agree 24 24
Agree 10 44
Strongly Disagree 5 15
Disagree 8 15
Neither Agree Nor Disagree 3 2
Total 50 100
 STRONGLY
DISAGREE
15% 15% DISAGREE

NEITHER AGREE NOR

24% DISAGREE
AGREE
44% 2%
STRONGLY AGREE

Interpretation:-

44% of the employees agree that the performance appraisal system helps to

identify the strength and weakness of the employee. Because performance

appraisal is best method to where our organization stands.

7. The performance rating is helpful for the management to provide

employee counseling.

NO. of Respondents Percentage

Strongly Agree 17 35
Agree 10 42
Strongly Disagree 8 15
Disagree 6 5
Neither Agree Nor Disagree 9 3
Total 50 100
 STRONGLY
5% DISAGREE
15% DISAGREE
35%
3% NEITHER AGREE
NOR DISAGREE
AGREE

42%
STRONGLY AGREE

Interpretation:-

Most of the employees disagree with this fact that the performance rating is

helpful for the management to provide employee counseling. Because

performance rating is not psychological process.

9. Promotion is purely based on performance appraisal.

NO. of Respondents Percentage

Strongly Agree 30 24
Agree 8 50
Strongly Disagree 6 20
Disagree 4 1
Neither Agree Nor Disagree 2 5
Total 50 100
 STRONGLY
DISAGREE
1% DISAGREE
24% 20%
5% NEITHER AGREE
NOR DISAGREE
AGREE
50%
STRONGLY AGREE

Interpretation:-

Majority of the employees agree that promotion is based on performance appraisal

because performance appraisal find exact worth of the employees.

10. Management fixes salary through the performance rating.

NO. of Respondents Percentage

Strongly Agree 20 20
Agree 10 64
Strongly Disagree 10 10
Disagree 6 4
Neither Agree Nor Disagree 4 2
Total 50 100
 STRONGLY
DISAGREE
4% DISAGREE
20% 10%
2%
NEITHER AGREE
NOR DISAGREE
AGREE
64%
STRONGLY AGREE

Interpretation:-

No the salary of the employees does not depends on performance appraisal because

salary paid on the salary policy and other aspects.

11. Performance rating helps to fix increment.

NO. of Respondents Percentage

Strongly Agree 26 25
Agree 12 58
Strongly Disagree 8 5
Disagree 2 10
Neither Agree Nor Disagree 2 2
Total 50 100
 STRONGLY
DISAGREE
5% 10% DISAGREE
25%
2%
NEITHER AGREE
NOR DISAGREE
AGREE
58%
STRONGLY AGREE

Interpretation:-

Yes, the increment depends on the performance appraisal because performance

appraisal signifies the actual worth of the employees.

12.The desired target of the organization is achieved through the performance

appraisal.

NO. of Respondents Percentage

Strongly Agree 25 39
Agree 10 21
Strongly Disagree 10 18
Disagree 3 14
Neither Agree Nor Disagree 2 8
Total 50 100
 STRONGLY
14% DISAGREE
18%
DISAGREE

NEITHER AGREE
21% NOR DISAGREE
39% AGREE

8% STRONGLY AGREE

Interpretation:-

The respondents agree that organization goals can be achieved with the help of

performance rating because human resource is the prime assets of the

organization.

13.Performance appraisal increases employee motivation.

NO. of Respondents Percentage

Strongly Agree 17 43
Agree 10 45
Strongly Disagree 8 6
Disagree 6 3
Neither Agree Nor Disagree 9 3
Total 50 100
 STRONGLY
DISAGREE
6%
3% DISAGREE
3%
43%
NEITHER AGREE
NOR DISAGREE
45% AGREE

STRONGLY AGREE

Interpretation:-

Yes, the performance appraisal increases employees motivation because

increment,promotion depends on the performance of the individuals.

14.Appraisal system keeps on the major achievement and failure or success of

work.

NO. of Respondents Percentage

Strongly Agree 15 15
Agree 12 41
Strongly Disagree 8 14
Disagree 10 20
Neither Agree Nor Disagree 5 10
Total 50 100
 STRONGLY
DISAGREE
15% 14% DISAGREE

20% NEITHER AGREE

NOR DISAGREE
41% 10% AGREE

STRONGLY AGREE

Interpretation:-

The company agrees that appraisal system keeps on the major achievement and

failure or success of work because appraisal identify strength and weakness of the

every employees.

15. Have a separate committee to review the performance appraisal result.

NO. of Respondents Percentage

Strongly Agree 20 17
Agree 10 39
Strongly Disagree 10 12
Disagree 6 30
Neither Agree Nor Disagree 4 2
Total 50 100
 STRONGLY
DISAGREE
12% DISAGREE
17%

NEITHER AGREE
30% NOR DISAGREE
39% AGREE
2%

STRONGLY AGREE

Interpretation:-

The most of the respondents agree that a separate committee to review the

performance appraisal result because appraisal system can be conduct by well

knowledgeable and well skilled department heads.

CHI-SQUARE ANALYSIS:-

Chi-square analysis was conducted to examine the relationships between the performance appraisal

and other below mentioned factors. The outputs of the analysis were summarized in the table below:-
 S.No. CONTENTS CHI- NULL HYPOTHESIS

SQUARE (ACCEPTED/REJECTED)
1. Need of performance appraisal. 16.8 Rejected
2. Employees satisfaction with performance 11 Rejected

appraisal.
3. Cooperation & team work 5.8 Accepted
4. Improve personal skills. 33.8 Rejected
5. Organizational development. 22.4 Rejected
6. Periodicity. 17.6 Rejected
7. Identify weakness & strength. 27.4 Rejected
8. 7.0 Accepted
9. Promotion 52.0 Accepted
10. Salary Fixation 15.2 Rejected
11. Fixation of increment 39.2 Rejected
12. Achievement of Failure & Success of work. 5.8 Accepted

13. Achieving desired target 33.8 Rejected

14. Increase motivation 7.0 Accepted
15. Review Committee 15.2 Rejected

Interpretation:-

From the above analysis, we conclude that if the null hypothesis is accepted it means significant

relationship between the performance appraisal and above mention factors. If the null hypothesis is

rejected it means there is no significant relationship between the performance appraisal and above

mention factors.
 Macro analysis

The analysis of the data is done as per the survey finding. The finding is represents through pie

chart in percentage. The percentages of the respondents’ opinion were analyzed and expressed in

the form of pie charts:-

a) Maximum numbers of employees agree that performance appraisal system available in

organization.

b) Majority of employees agree that the objectives of performance appraisal are

clear to them

c) Therefore maximum number of employees strongly agrees that appraisal system

provides an opportunity to them to have a clear understanding of what is expected

from them.

d) According to employees the main objective of appraisal system is to increase their pay and to

increase their promotion.

e) Maximum numbers of employees agree with the existing method of appraisal. As a tool for

performance appraisal of employees.

f) Many employees agrees that training provides an opportunity to communicate the support

employee need with their superior to perform their job well

g) Maximum number of employees agrees that counseling provides opportunity for

discussion between them & their appraiser on the expectations, achievements and the

area of improvement required

h) Maximum number of employees agrees with the fact that feedback helps them to get

insight into their weakness and strengths.

i) Majority of the employees agree that promotion is based on performance appraisal.

j) Mostly employees agree that performance appraisal helps in increasing motivation among

them.

k) The chi square analysis indicated that all the performance appraisal policy variables have

significant impacts on the performance appraisal

 FINDINGS

The major findings of the research work done are:

1) All the employees at junior manager level in the company have the awareness of the
 performance appraisal system.

2) Most of the employees say that their immediate superior does their appraisal. Performance

appraisal is done annually in Escorts. In actual MBO method of performance appraisal is used

but majority of the respondents said that their immediate superior does the appraisal. Only few of

the employees said that the method of performance appraisal in Escorts is MBO.

3) Employees have the clear understanding of the objectives of the performance appraisal.

4) The immediate superiors do appraisal in Escorts. Assessment centers are also used in Escorts

but for promotions only.

5) Appraisal system in the company has the grate scope for communicating top management

objectives to the employees.

6) The respondents were strongly agree/agree with the statement, which state that appraisal system

provides an opportunity for understanding what is expected from the employees.

7) Counseling part of the appraisal system is good enough in Escorts. Majority of the respondents

were strongly agree/agree with the statement which states that counseling provides an

opportunity to communicate the support needed from superior to perform the job well.

8) Most of the respondents were satisfied with the counseling done by the superiors. They said that

counseling facilitates discussion between appraiser and appraisee, by which appraisee come to

know about their areas where they need improvements, what is expected from them, what is their

job all about and what factors affect their performance.

RECOMMEDATIONS

The suggestions after the survey which I conducted from micro analysis and its

interpretation:
 The Performance Appraisal should be done on half-yearly basis rather than on yearly

basis.

 After the performance Appraisal, the supervisor should personally discuss the strength

and weakness of the managers.

 Everyone should feel free to express their opinion openly without any hesitation.

 The employee in the organization should be made aware of the latest method of the

Performance Appraisal like 3600 Appraisal.

 Proper training should be provided to the managers after discussing the weakness of

the manager.

 All employees should be made of the Performance Appraisal system

CONCLUSION

Performance Appraisal is becoming the most suitable way to assess the suitability of any

individual to his job and the basis to improve training if needed, the basis of promotion and
also it is a best way of salary revision. It also helps the superior to get feedback about

themselves, which can be effectively used in acquiring and sharpening their managerial and

behavioral skills. At last it can thus be concluded that:

1. Proper Appraisal system is used in the organization to appraise the worker.

2. More than 80% of the members are aware about the Performance Appraisal.

3. Some opinion problems are faced by the superior and subordinate at the time of

Performance Appraisal.

4. Every subordinate perform his/her work with a great zeal because of motivation through

Performance Appraisal.

5. Self appraisal technique of Performance Appraisal is very effective in building

companies goodwill.

6. Appraisal is followed by employee feedback & counseling is done to enhance the

effectiveness.
 REFERENCE BOOKS

• C.B Gupta, 1996, Principles and Practice of Management, National, New

 Delhi.

• Robbins, 2002, Human Resource Management, Himalaya Publication House, Gurgaon.

• Sharma, M.C.1992, Question Bank in Business Studies, Sultan Chand & Sons, New

Delhi.

• Mishra M.M, Human Resource Management, 2006-07, Anurag Jain Publication, New

Delhi.

• Chandan T.S.2001, Organization Behavior, Vikas Publication, New Delhi.

• K. Aswathappa: Human Resource Management, 5th edition, Tata McGraw-Hill

Companies, New Delhi.

• L.M. Prasad: Principles and Practice of Management, 6th edition, Sultan Chand &

Sons, New Delhi.

• C R Kothari : Research Methodology – Methods and Techniques, 2nd Edition , New

Age International Publishers

• S.P. Gupta : Statistical Methods, 36th edition, Sultan Chand & Sons, New Delhi

• Stephen Robbins : Essentials of Organizational Behavior, Prentice Hall International

Edition

WEBSITES

• www.hrworld.com
• www.hr.com

• www.google.com

• www.humanresource.hrvinet.com

• www.hrblogs.com

• hrmba.blogspot.com

• www.citehr.com

• www.wikipedia.org
 QUESTIONNARIE

ESCORTS LIMITED
AGRIMACHINERY GROUP
(PERFORMANCE APPRAISAL)

Dear Respondent,
This questionnaire is meant for the purpose of studying “Performance Appraisal” of
Escorts employees. It is assured that the information taken will not be misused.

Personal Details
Deptt:…………………………………………
Designation…………………………………..
Instructions

 The questionnaire has been designed to assure full anonymity.

 Please don’t write your name anywhere in the questionnaire

 Respond to all statements.

 Please tick the box, which is most suitable to your belief and experience.

 There is no right and wrong answer the study will have its full benefit only if

your responses are straight forward and your own.

 Your responses to each of these statements will be as to whether you.

SD -If you are ‘STRONGLY DISAGREE’ with the statement

D -If you ‘DISAGREE’ with the statement

NAND -If you ‘NEITHER AGREE NOR DISAGREE’

A -If you ‘AGREE’ with the statement

SA -If you ‘STRONGLY AGREE’ with the statement

QUESTIONS

8. Performance appraisal system is needed in organization

a) SA b) A c)NN d) DA

9. Satisfied with the existing performance appraisal system.

a) SA b) A c)NN d) DA

10. The performance appraisal helps to win co- operation and team work.

a) SA b) A c)NN d) DA

4. The performance appraisal is helpful for improving personnel’s skill.

 a) SA b) A c)NN d) DA

5. Training programmes are effective for individual and organization development.

a) SA b) A c)NN d) DA

6.The performance ratings were done periodically.

a) SA b) A c)NN d) DA

7.The performance appraisal system helps to identify the strength and weakness of

the employee.

a) SA b) A c)NN d) DA

8. The performance rating is helpful for the management to provide employee

counseling

a) SA b) A c)NN d) DA

9. Promotion is purely based on performance appraisal

a) SA b) A c)NN d) DA
10. Management fixes salary through the performance rating.

a) SA b) A c)NN d) DA

11. Performance rating helps to fix increment

a) SA b) A c)NN d) DA

12.The desired target of the organization is achieved through the performance appraisal.

a) SA b) A c)NN d) DA

13.Performance appraisal increases employee motivation.

a) SA b) A c)NN d) DA

14.Appraisal system keeps on the major achievement and failure or success of work.

a) SA b) A c)NN d) DA

15.Have a separate committee to review the performance appraisal result.

a) SA b) A c)NN d) DA

Date: ___________

Thanks for your valuable time and response

 APPENDICES

1. GENERAL INFORMATION

 NAME OF THE COMPANY: ESCORTS INDIA LIMITED

 REGISTERED OFFICE: 15/5 MATHURA ROAD

 WEBSITE:

 CHAIRMAN, AND MANAGING DIRECTOR:

 DIRECTOR HUMAN RESOURSE MANAGER:

2. HISTORY AND CURRENT PROFILE

 TOTAL NO.OF EMPLOYEES:

 BUSINESS TURNOVER:

 CURRENT BUSINESS ACTIVITIES (NATIONAL & INTERNATIONAL) :

3.MARKETING DATA

 PRODUCT :

 4.FINCIAL DATA PROVIDER

 FINANCIAL CONCERN :

 JOB PROFILE :
 Table-2
List of Graphs & Tables
TOPIC PAGE NO.
 Tables
35
• Need of performance appraisal.
41
• Employees satisfaction with performance 43-44
57
appraisal Ratio
58-59
• Cooperation & team work

• Improve personal skills.

• Organizational development

• Periodicity.

• Identify weakness & strength.

• Promotion

• Salary Fixation

• Fixation of increment

• Achievement of Failure & Success of work.

• Achieving desired target

• Increase motivation

• Review Committee

• CHI-SQUARE
 Pie charts
36
• Need of performance appraisal.
37
• Employees satisfaction with performance 38
39
appraisal
40
• Cooperation & team work
42
• Improve personal skills.

• Organizational development

• Identify weakness & strength.

• Periodicity.

• Promotion

• Salary Fixation

• Fixation of increment

• Achievement of Failure & Success of work.

• Achieving desired target

• Increase motivation

• Review Committee