A

Summer Training Report

On
“PERFORMANCE APPRAISAL SYSTEM”
(Submitted in partial fulfillment for the Award of degree of)
Master of Business Administration

Submitted To: - Submitted By:-

Mr. Yash Saini Sunil Kuamr
M.B.A. Dept MBA (Final Year)

2009-2011

Laxmi Devi Institute of Engineering & Technology,Alwar

Rajasthan Technical University

Kota

i
 PREFACE

My research project deals with “Performance Appraisal as carried out at Hero

Honda Motors Limited (HHML).In this report, I have studied & evaluated the
performance appraisal process as it is carried out in the company. The first
section of my report deals with a detailed company profile. It includes the
company’s history: its activities and operations, organizational structure, etc. this
section attempts to give detailed information about the company and the nature
of it’s functioning.

The second section deals with performance appraisal. In this section, I have
given a brief conceptual explanation to performance appraisal. It contains the
definition, process and significance of performance appraisal.

In the third section of my report, I have conducted a research study to evaluate

the process of performance appraisal at Hero Honda Motors Ltd.; this section
also contains my findings, conclusions, suggestions and feedback.

ii
 Acknowledgement

I express my sincere thanks to my project guide Mrs. Yash Saini,Faculty of our

M.B.A. Department for guiding me right form the inception till the successful
completion of the project. I sincerely acknowledge her for extending their valuable
guidance, support for literature, critical reviews of project and the report and above
all the moral support she had provided to me with all stages of this project.
I would also like to thank the supporting staff of MBA Department, for their help and
cooperation throughout my project.

Sunil Kumar

iii
 Executive summary-

Performance Appraisal is the important aspect in the organization to

evaluate the employees performance. It helps in understanding the
employees work culture, involvement & satisfaction, It helps the
organization to decide employees promotion, transfer, incentive & pay
increase. This project is aimed at explaining the Performance Appraisal
process and this project enables systematic identification of job-related
strength and weakness among individual employees and between
employee groups and also find the loopholes and give the
recommendation and suggestion if any, and also help in evolving precise
benchmark for employees.

An effective performance appraisal system is an asset to the organization.

People differ in their abilities and their aptitudes. There is always same work on
the same job being done by two different people. Therefore performance
appraisals are necessary to understand each employee’s abilities, competencies
and relative merit and worth for the organization. Performance appraisal rates
their employee’s in terms of their performance. The performance of an
organization is managed by monitoring and the managing the performance of the
individual employees in the organization. The objective and goals of individual
performance are determined based on the objectives and goals of the
organization. Hence, the successful performance of an organization is a
culmination of individual performances and contributions.

iv
As performance appraisal is an objective, systematic and periodical evaluation of
staff performance, it therefore enhances the reliability of the company’ staff
selection/ assessment procedure and policy. By carrying out the study on the
performance appraisal process it is possible to give the suggestions and
recommendation for future betterment and also one can analyze the methods of
performance appraisal. Data used for the study was of primary & secondary
nature.Primary Data was collected from the questionnaire designed and opinion
of the employees was taken to see the effectiveness of the appraisal process.
The data collected from the primary source were analyzed by different graphical
methods. The questionnaires were separated according to different parameters
and different points are assigned for them for perfect weightage to place in the
comparative graphs. The pie charts, bar graph were used in this study to
compare different parameters.

v
 TABLE OF CONTENTS

Title Page i
Preface
ii
Acknowledgement iii
Executive Summary iv

S.NO. NAME Address

1) INTRODUCTION TO INDUSTRY
1-6
2) INTRODUCTION TO ORGANISATION
7-57
3) RESEARCH METHODOLOGY 3.1) Title of the study
3.2) Duration of The project 58-66
3.3) Objective of the study
3.4) Type of Research
3.5) Sample size & Method of
Collecting sample
3.6) Scope of study
3.7) Limitation of study

4) FACTS & FINDINGS 4.1) Purpose of doing

Performance Appraisal 67-78
4.2) Employee Satisfaction
5)
ANALYSIS & INTERPRETATION 79-80

6) SWOT ANALYSIS 81-83

7) CONCLUSION 84

8) RECOMMENDATION & SUGGESTIONS 85

9) APPENDIX 86-90

BIBLIOGRAPHY 91-92

vi
vii