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Summer Training Report
On
Effectiveness ofPerformance 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/ Guide’s Name: Submitted By:Mr. Surender Singh 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 today’s 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 Analysis & Findings
5 Conclusion
6 Recommendations and Suggestions
7 Annexure
8 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 employee’s
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.
Training is job oriented.
Training is one shot deal.
Training seeks to meet the current requirements of the job and the
individual.
Training is mostly the result of initiatives taken by management.
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
employee’s 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
Goodyear’s pioneering sprit begins in 1898 when frank seiberling founded the company
38 years old frank seiberling purchased the company’s 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.
For associate the evaluating period is from January to December each year &the
assessment process must get completed by 1st of march of the following year.
IPR start with setting up of objectives & deciding upon rules in the beginning of the year
in salutation with the concerned function manager & keeping the business & function
unit objective in the mind.
Objective must be prettied as extremely important very important & somewhat important
depending upon the various factor.
The assessment for previous year’s 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 associate’s 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 first’s:
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 Moon’s 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 company’s 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 company’s 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 say’s:-
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 employee’s 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 employee’s
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 employee’s 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 employee’s 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
employee’s 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 assize’s 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 repoear’s 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 rater’s overall impression of the employee’s 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 individual’s 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
employee’s 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 person’s job.
It is difficult to make comparatively rating of individual because each individual’s
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 today’s 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 NO
50 0
100% 0%
AWARENESS OF PERFORMANCE APPRAISAL SYSTEM IN EMPLOYEES.
According to my survey”maximum persons has agreed that Goodyear ltd. Has employees
appraisel system.
TABLE 2
Q.1 Who does the
appraisal?
HOD IMMEDIATE
SUPERIOR
ANY OTHER
17 30 3
34% 60% 6%
WHO DOES THE APPRAISAL
According to my survey”Immediate Superior appraise 60% employees and HOD appraise
34% employees
TABLE 3
Q.3 what are the
objectives of the
performance appraisal
in co.?
PAY HIKES PROMOTION TRAINING
NEEDS
ANY
OTHER
15 15 11 9
30% 30% 22% 18%
OBJECTIVE OF PERFORMANCE APPRAISAL
P.H. - Pay hikes, P- Promotion
ITN- Training Needs, A.O- Any other.
According to my survey”Performance appraisal objective is 30% pay hikes,30%
promotion ,22% training needs,18%any other
TABLE 4
Q.4 What methods
performance appraisal
are used?
SUPERIOR
APPRAISES
360
DEGREE
MBO ANY
OTHER
37 0 13 0
74% 0% 26% 0%
METHODS OF PERFORMANCE APPRAISAL
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
Q.5 Appraisal is
done?
ANNUALLY BIANNUALLY QUARTERLY MONTHLY
49 1 0 0
98% 2% 0% 0%
APPRAISAL IS DONE
A-Annually, B- Biannually,
Q-Quarterly, M- Monthly
According to survey Appraisal ia done annually for performance appraisal employees
TABLE 6
Q.6 How often the
performance appraisal
is reviewed?
ANNUALLY BIANNUALLY QUARTERLY MONTHLY
43 4 2 1
86% 8% 4% 2%
REVIEWE IS DONE
A-Annually, B-Biannually,
Q-Quarterly, M-Monthly.
According to survey performance appraisal is reviewed annually.
TABLE 7
Q.7objective of
performance appraisal
is clear to you?
SA A N D SD
19 26 3 1 1
38% 52% 6% 2% 2%
UNDERSTANDIING OF APPRAISAL OBJECTIVE
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
Q.8 Appraisal system has scope
for communicating top
management objective to you
SA A N D SD
19 23 5 2 1
38% 52% 10% 4% 2%
UNDERSTANDING OF MANAGEMENT OBJECTIVES
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 SA A N D SD
to you to have a clear
understanding of what is
expected from you?
24 22 1 1 2
48% 44% 2% 2% 4%
CLEAR UNDERSTANING OF THE EXPECTAIONS
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 A N D SD
17 27 2 1 3
34% 54% 4% 2% 6%
UNDERSTANDING ON INDIVIDUAL DEVELOPMENT
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 A N D SD
21 23 3 0 3
42% 46% 6% 0% 6%
HELP FROM APPRAISER
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
Q.12 Appraisal system helps you
to plan your performance well in
advance.
SA A N D SD
17 23 6 3 1
34% 46% 12% 6% 2%
SYSTEM HELPS IN THE PLAN IN THE PERFORMANCE
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 (b) No
Q.2 who does the appraisal?
(a) HOD (b) Immediate superior
(c) Any other specify
Q.3 Appraisal is done.
(a) Annually (b) Biannually
(c) Quarterly (d) Monthly
Q.4 Objective of appraisal are clear to all employees.
(a) Strong agree (b) Agree
(c) Neutral (d) Disagree
(e) Strongly disagree
Q.5 What are the reasons of performance appraisal in Goodyear limited?
(a) Pay hikes (b) Promotions
(c) Identify training needs (d) Any other specify.
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 (b) Biannually
(c) Quarterly (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.
GOODYEAR’S MANUAL.
SEARCH ON INTERNET.
www.google.com,
www.goodyear.com
GOODYEAR APPRAISAL POLICY.
