CONTENTS CHAPTER NO. TOPICS PAGE NO.

CHAPTER (1)
(1.1) (1.2) (1.3) (1.4) (1.5) (1.6) (1.7) (1.8) (1.9)

INTRODUCTION
ABOUT JK TYRE VISION & MISSION FUTURE PLANS ORGANISATION STRUCTURE PERFORMANCE APPRAISAL SYSTEM PROCESS OF PERFORMANCE APPRAISAL METHODS OF PERFORMANCE APPRAISAL REVIEW OF LITERATURE OBJECTIVES OF THE STUDY

CHAPTER(2)
(2.1) (2.2) (2.3) (2.4)

RESEARCH METHODOLOGY
THE STUDY SAMPLING PROCEDURE DATA COLLECTION DATA ANALYSIS

CHAPTER(3)
(3.1)

RESULTS AND DISCUSSION

RESULTS & GRAPHICAL REPRESENTATION

CHAPTER(4) CHAPTER(5)

FINDINGS & OBSERVATION SUGGESTION & RECOMMENDATION CONCLUSION REFERENCES ANNEXURE

CHAPTER-1 INTRODUCTION

INTRODUCTION OF J.K.TYRE & INDUSTRIES :

JK Tyre and Industries is a leading corporate entity which believes in excellence, innovation and technology. The Company started manufacturing tyres in 1977, with a capacity of 0.5 million tyres per annum and has grown multifold over the years to its present capacity of more than 16 million tyres per annum. JK Tyre has five state-ofthe art plants strategically located in India; in the States of Rajasthan, Madhya Pradesh and Karnataka. The Company is known for manufacturing Indias leading tyre brands - JK Tyre, Vikrant and Tornel in Mexico, for all categories of four-wheelers. As the 22nd largest tyre manufacturer in the world, JK Tyre exports its tyres to over 80 countries across 6 continents and enjoys a premium brand status in various sophisticated markets, including the Americas. The Company also outsources tyres from China and other low cost countries for its international markets. JK Tyre pioneered the Radial technology in India way back in 1977 and is Indias only tyre manufacturer, offering full range of radial tyres for Cars, Jeeps, SUVs, LCVs, Truck & Bus and Tractors. The Company manufactures the entire range of tyres for all fourwheeler categories. The Company is the No.1 player in Off the Road (OTR) tyre segment and has presence across India in almost all applications like Mining, Rock Excavating, Quarrying, Dam Building and Port operations, and also manufactures Ultra-Large OTR tyres in its state-of-the-art facility at Mysore. With a distribution network of over 4000 dealers and over 120 stocking points, JK Tyre has left a mark across every Indian road treading into every nook and corner of the country. This includes 125 JK Tyre Steel Wheels high-tech one-stop-tyre shops, and over 20 JK Tyre Truck Radial Care Centres on major National highways which operate on a 365 days/24 hours basis. JK Tyre is a preferred Original Equipment Manufacturers (OEM) supplier and continues to be ranked No.1 by the JD Power Asia Pacific Tyre Customer Satisfaction Index Survey. JK Tyre is the first and the only Indian Tyre Brand to be recognized as a Superbrand

The Company has consciously been modernizing and expanding its manufacturing facilities continuously to retain its edge in the market place. JK Tyre is a Total Quality Management (TQM) driven company, having received all four ISO 9001, QS 9000, ISO 14001 and TS 16949 accreditations. The Company was the first tyre company in the world to receive ISO/TS 16949:2000 certificate for its entire operations in one go. This indeed is a true reflection of JK Tyres commitment to systems and quality oriented approach. JK Tyre is a technology driven company. Its R&D Centres, HASETRI (Hari Shankar Singhania Elastomer and Tyre Research Institute) one of its kind institute in Asia; Raghupati Singhania Centre of Excellence for Tyre and Vehicle Mechanics, set up jointly with IIT Madras, a successful example of Academia Industry Collaboration; and its Test Track at Chennai, keep the Company at cutting edge of tyre technology. It also has a technical collaboration with M/s Continental AG, Germany, the 4th largest tyre manufacturer in the world. JK Tyre started a revolution by unveiling the nation's first eco-friendly colored radials. These Green Tyres were developed indigenously at JK Tyre's state-of-the-art R&D facilities HASETRI. As a constructive partner in the communities in which it operates, JK Tyre has been taking various actions to realize its commitment towards society. Over the years, JK Trye has supported enumerable social and community initiatives in the fields of health care, education, social, cultural and environmental projects. JK Tyre is committed to the protection of environment and has undertaken various projects for conservation of energy, water resources, as also by introduction of Green products and processes. With a strong belief in People make the Organisation JK Tyre provides a challenging and healthy work environment for the growth and fulfillment of its people With a vision to be amongst the most admired Companies in India, JK Tyre is striving to surpass its own successes and achievements day after day.

VISION:
To be amongst the most admired companies in India committed to excellence.

MISSION:
Be a customer obsessed company. No.1 Tyre Brand in India. Deliver enhanced value to all stake holder. Most profitable Tyre company in India. Enhance global presence through acquisition. Motivated and committed team development for high performance Organization.

CORE VALUES :
- Caring for people. - Integrity including intellectual honesty, openness, fairness & trust. - Commitment to Excellence.

FUTURE PLANS :

India is fast emerging as a global automobile hub particularly for small cars. It offers immense opportunities for JK Tyre to grow its business both organically and inorganically. We have been constantly exploring ways of increasing our presence in different world markets, through alliances and acquisitions in tyre and related business. In all our Endeavours, our core focus is on customer delight. Enlarging the customer base, providing them with better quality of services and more value added products, will continue to be the key areas of our thrust.

CUSTOMER SATISFACTION - OUR CREDO

Customer Satisfaction has always been our prime focus. We are indeed proud of our highly experienced and professional team for winning the trust of customers and building strong relationships with them. Our 115 company owned stocking points serve over 4000 dealers across the country. We have set up 130 JK Tyre Steel Wheels - a unique concept in car tyre retailing which provides value added services like wheel balancing, alignment and tyre care to customers. Our Truck Radial Care Centers offer after-sales service for Truck/Bus Radials, which operate on 365 days / 24 hours basis. A large number of such centers have been set up along all major National Highways.JK Tyre has been among the top two tyre companies in respect of Customer Satisfaction, as per JK Power Asia Pacific Study, for many years. First Indian tyre company to introduce All Steel Truck & Bus Radials in India in 1999 Pioneered Radial technology in India by introducing passenger radials in 1977 First Indian tyre company to be recognized as 'SUPERBRAND' by Global Advertising Professionals.

MILESTONES :
1976 First in India to produce steel belted Radial Tyres for passenger cars, trucks and buses- J.K. Tyre Plant, Kankroli.

1980

First in world to make Steel Belted Radial Tyres for three wheelers- J.K. Tyre Plant, Kankroli.

1984

First in India to produce white cement through dry process- J.K. White cement. Gotan.

1985

First in India to produce Cathonic Dyeable Polyester Fibre- J.K. Synthetics Ltd., Kota. First in India to produce Nylon Tyre Cord based on Spin Draw Technology- J.K. Synthetics Ltd., Kota.

1989

First in India to produce magnetic tapes with cobalt technology J.K. magnetics, Surajpur.

1991

Banmore Tyre Plant (BTP) set-up with a capacity of 5.7 lacs tyres p.a.

1992

R & D center set-up at HASTERI.

1994

India's first T-Rated tyre launched Banmore Tyre Plant (BTP) crossed 100 TPD.

1995

Mercedes Benz Launched on JK steel radials First tyre manufacturer in the world to get ISO 9001

1996

India's first dual contact high traction steel radial- aquasonic launched. Introduced steel wheels.

1997

Awarded the National Export Award for 96-97. Vikrant Tyres (VTL) acquired. India's first H rated tyre launched. Only Tyre manufacturer to get 'E' Mark certification. HASETRI became the first research institute in Asia to get ISO 9002.

1998

First tyre manufacturer in the world to get QS 9000. Awarded CAPEXIL's highest export award for 1997-98.

1999

Synergy with VTL in procurement, marketing and production flexibility. Completion of state of the art modernisation of truck radials. JK Tyres ranked 16th largest Tyre Company in the world. ISA - 14000 accredition for environment & safety.

2000

JK introduced National Go-Karting Championships.

2001

Recieved CAPEXIL award. J.K. Industries recieved FOCUS LAC export award for the year 19992000. Commendation Certificate of CII Exim. IInd National Go-Karting Championships held.

J.K.TYRE & INDUSTRIES, BANMORE PLANT :

BANMORE TYRE PLANT started its production in 1991 and the first tyre rolled out 25th march 1991.The initial capacity of the plant was 4.5 mt/ day. Radial tyre production in passenger and light commercial vehicle segment was added in 1996. The plant is continuously improving its capacity, particularly in radial segment. Present radial capacity is 9000 tyre/ day. Total investment is in last three years for in capacity in radial tyre is apporx Rs117 crore. The expencesion of radial plant is still on. Our customers base virtually covers the entire Original equipment manufactures [OEM] in India together with replacement market for four wheeler, defence and state transport undertaking. Besides India, we have worldwide customers base exporting to more then 60 countries. Plant manages their process through documented procedures based upon ISO/TS16949QMS and ISO 14001 EMS [for plant only]. These described only all the activities in structured manner to be performed at all BU & SSU level. These procedures are audited at least twice in six months, once each by internal and external auditors. These audits ensure that systems are effectively functioning and continual improvement are achieved. BANMORE TYRE PLANT has started its TPM (Total Productive Maintenance) journey from October 2005.

ORGANIZATION STRUCTURE :

PERFORMANCE APPRAISAL :
A performance appraisal system functions as definitions of performance. Performance appraisal is a method of evaluating the behaviour of employees in the work spot, including both qualitative and quantitative aspects of job performance indicates how an individual is fulfilling the job demands and it is always in terms of results. Under performance appraisal not only the performance of an employee but also his potential for development is evaluated. Performance Appraisal is a systematic description of an employees job relevant strengths and weaknesses. A major concern of every organization should be to contribute positively towards the achievement of its objective. Organizational effectiveness is often equated with managerial efficiency. A manager can ensure organizational effectiveness only by guaranteeing the full utilization of human resource available through individual employees under his guidance. Hence, it is always required for a manager to monitor and measure the performance of employees. Moreover, since the organization exists to achieve the goals, the degree of success that individual employees have in reaching this individual goal is important in determining organizational effectiveness. The assessment of how successful employees have been at meeting their individual goal to comes a critical part of human resource management. This leads to concept of performance appraisal. In performance appraisal or merit rating refers to all the formal procedures used in working organizations to evaluate the personalities and contributions and potential group members. In appraisal system the employees merits like initiatives, dependability, personality etc., are compared with others and ranked to rated. Appraisals might be based on the criteria of employees skills, educational qualifications, knowledge, abilities to delegate plans, supervise, assume responsibility, exercise leadership, personal qualities, creativity, decision making and interpersonal skills.

An appraisal motivates an employee into increased effort aimed at enhancing the outcome of the assessment. It tells an employee what set of activities or what qualities are considered desirable by the organization. It is the systematic method of obtaining, analyzing & recording information about an employee that is needed: For effective management of business. By the manager to help him improve the jobholders performance and plan his career. By the jobholder to assist him to evaluate his own performance and develop himself. In performance planning and review, the Reporting Manager is expected to set targets or tasks for the appraise in the beginning of the year. In the middle of the year, the appraise fills the self-appraisal form, indicating the extent which the target or task has been completed, the difficulties faced and the suggestions for improvement. At the end of the year, there is the annual review and targets/tasks set for the next year. Both in the mid-year review and annual review, the selfappraisal is supplemented by a performance review, discussion, the problems are discussed and the appraiser is given feedback on how he is doing. The appraisal

system is an instrument for improving the work culture by convincing employees that their career growth is linked with the performance of the company.

We can briefly say that performance appraisal systems are necessities to assess performance at regular intervals with consistency to study improvements, deviation and to take corrective actions to bride gaps and improve performance over a period of time.

What is the Purpose of Performance Appraisal ? Professional development such as identifying strengths and weaknesses in performance, implementing strategies for improvement. Determining organizational training and development needs. Making and validating administrative decisions like pay, promotion, placement, and termination.etc. Identifying systemic factors that are barriers to, or facilitators of, effective performance. It guarantees useful information about employees and the nature of their duties.

Objectives of Performance Appraisal : To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior subordinates and management employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees. To identify those who are performing their assigned task well and those who are not and the reason for such performance.

 To create and maintain satisfactory level of performance. To ensure organizational effectiveness. To diagnose the training and development need of the future.

PROCESS OF PERFORMANCE APPRAISAL : ESTABLISHING PERFORMANCE STANDARD : The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards. COMMUNICATING THE STANDARDS : Once set, it is the responsibility of the management to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained to the. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators. MEASURING THE ACTUAL PERFORMANCE : The most difficult part of the Performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the

performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees work. COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE : The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees performance. DISCUSSING RESULTS : The result of the appraisal is communicated and discussed with the employees on oneto-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better. DECISION MAKING : The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.

How to conduct a performance appraisal ?

The following five-step approach to conducting a systematic performance appraisal is recommended: 1. Identify key performance criteria 2. Develop appraisal measures 3. Collect performance information from different sources 4. Conduct an appraisal interview 5. Evaluate the appraisal process.

Step 1: Identify key performance criteria : Perhaps one of the most challenging aspects of setting up a performance appraisal is deciding what to assess. In essence, four key dimensions of performance should be considered in a performance appraisal. Key Dimensions of Performance: Competencies Behaviors Results / outcomes : : : Knowledge, skills, and abilities relevant to performance Specific actions conducted and / or tasks performed Outputs, quantify able results, measurable outcomes and achievements, objectives attained. Organizational citizenship behavior : Actions that are over and above usual job responsibilities

To ensure that the performance criteria are relevant to work practice and acceptable to appraisers and workers:

i. Base the performance criteria on an up-to-date job description ii. Develop criteria in consultation with appraisers and workers Step 2: Develop appraisal measures : Once clear and specific performance criteria have been developed, the next step is to decide how to assess workers performance. It is recommended that a structured and systematic approach is taken to assessing performance. Problems that arise when an unstructured blank sheet approach is used include: Increased chance of appraiser errors Knowledge, skills and abilities most critical to job performance may be overlooked Reduced consistency between appraisers Perceptions of subjectivity in evaluations, which may in turn, reduce workers satisfaction with, and acceptance of, appraisals. Step 3: Collect performance information from different sources : Once the appraisal measures are developed, the next step involves collection of accurate performance information. A common trap is to begin noting observations of workers just before conducting appraisals. This is likely to give an inaccurate picture of a workers performance. Ideally, workers performance should be observed in a systematic way over time .This method ensures the accuracy of information about their performances. Traditionally, it has been the sole responsibility of managers / supervisors to assess performance. However, other organizational members can be a valuable source of information as they are likely to have exposure to different aspects of a workers performance. This approach is known as 360-degree feedback. For instance, coworkers can provide valuable information on teamwork skills, and subordinates can provide useful information on leadership style. Five different sources of performance appraisal information are considered here:

i. Manager / supervisor appraisals ii. Self appraisals iii. Coworker appraisals iv. Subordinate appraisals v. Client appraisals. Step 4: Conduct an appraisal interview : The next step in a performance appraisal is to conduct the appraisal interview. The two central purposes of the appraisal interview are to: Reflect on past performance to identify major achievements, areas that require further development, and barriers / facilitators to effective performance Identify goals and strategies for future work practice. Step 5: Evaluate the appraisal process : As with any organizational system, the performance appraisal process should undergo regular review and improvement.

APPROACHES OF PERFORMANCE APPRAISAL : Traditional approach:

Traditionally, Performance appraisal has been used as just a method for determining and justifying the salaries of the employees. It begins to use as a tool for determining rewards and punishments for the past performance of the employees. This approach was a past oriented approach which focused the employees i.e. during a past did not consider the development aspect of the employee performance. The primary concern of the traditional approach is to judge the performance of the organization as a whole by the past performance of its employees. Therefore this approach is also called as the overall approach.

Modern approach.
The modern approach to performance development has made the performance appraisal process more formal and structured. Now, the performance Appraisal is taken as a tool to identify better performing employees training needs, career development. Paths, rewards and bonuses and their promotions to the next level. The modern approach to performance appraisal includes a feedback process that helps to strengthen and subordinates and improves communication through the organization.

METHODS,TECHNIQUES FOR APPRAISING PERFORMANCE TRADITIONAL METHODS

1. Straight Rank Method: It is the oldest & simplest method of performance appraisal, by which the man and his performance are considered as an entity by the rater. Then ranking of a man in work group is done against may also do that of another member of a competitive group by placing him as one or two or three in total group, i.e. persons are tested in order of merit and place in a simple grouping.

2. Man To-man Comparison Method: The USA army during the FIRST WORLD WAR used this technique. By this method, certain factors are selected for the purpose of analysis and a scale is designed by the rater for each factor. A scale of man is also created for each selected factor. The each man to be rated is compared with in the scale, and certain scores for each factor are awarded to him. This method is used in job evaluation, and is known as the factor comparison method.

3. Grading Method: Under this system, the rater considers certain features and marks them accordingly to a scale. The selected features may be analytical ability, cooperativeness, dependability, self-expression, job knowledge, judgment, leadership and organizing ability, etc. they may be A Outstanding, B Very good, C Good or average, D Fair, E Poor.

The actual performance of an employee is then compared with these grade definitions; such type of grading is done in semester examinations and also in the selection of candidates by the public service commissions. 4. Graphic or Linear Rating scale: This is most commonly used method of performance appraisal. Under it, a printed forms one of each person to be rated. According to juices, these factors are employee characteristics ad employee contribution. In employee characteristics are included such qualities and initiative, leadership, cooperativeness, attitude, enthusiasm, loyalty, creative ability,

dependability,

industry,

decisiveness, analytical ability, emotional ability and co-ordination. In the employee contribution are quantity and quality of work, the responsibility assumed specific goals achieved regularity of attendance, leadership offered, attitude towards supervisors and associates, versatility etc.The rating scale method is easy to understand and easy to use, and permits a statistical tabulation of scores. A ready comparison of scores among the employees is possible.

5. Forced Choice Description Method : This method was evolved after great deal of research conducted for military services during World War II. It attempts to correct a raters tendency to give consistently high or consistently low ratings to all employees. The use of this method calls for objective reporting and minimum subjective judgment. Under this method the rating elements are several sets of pair phrases or adjectives

(usually sets of four phrases two of which are positive, two negative) relating to job proficiency Or personal qualifications. The rater is asked to indicate which of the four phrases is most and least descriptive of the employee.

6. Forced Description Method: Joseph Tiffin evolved this method after statistical work. This system is used to eliminate or minimize raters bias, so that all personnel may not be placed at the higher end or at the lower end of the scale. It requires the rater to appraise an

employee according to a predetermined distribution scale. Under this system, it is assumed that it is possible and desirable to rate only to factors, viz., job performance and promotability. For this purpose, a five point performance scale is used without any descriptive statement. Employees are placed between the two extremes of good and bad job performance. 7 .Check List: Under this method, the rater does not evaluate employee performance; he supplies report about it and the personnel department does the final rating. A series of questions are presented concerning an employee to his behaviour. The rater, the checks to indicate if the answer to a question about an employee is positive or negative. An example of check list is given below:

1. Is the employee really interested in his job? Yes/No 2. Is regular on his job? 3. Does he follow instructions properly? Yes/No Yes/No

4. Is he always wiling to help other employees? Yes/No 5. Does he ever make mistakes? Yes/No

8. Free Easy Method: Under this method, the supervisor makes a free from, open-ended appraisal of an employee in his own words and puts down his impressions about the employee. He takes not of these factors. a. General Organization and planning ability. b. Job knowledge and potential. c. Employee characteristics and attitudes. d. Understanding and application of company policies and procedures. e. Production, quality and cost control. f. Physical conditions. g. Development needs for future.

9. Group Appraisal Method: Under this method, an appraisal group rates employees, Consisting of their supervisor and three or four other supervisors who have knowledge of their performance. The supervisor explains to the group the nature of his subordinates duties. The group then discusses the standards of performance for that job, the actual performance of the job holder, and the causes of their particular level of performance, and offers suggestions for future improvement, if any.

10. Field Review Method : Under this method, trainer employees from the personnel department interview line supervisors to evaluate their respective subordinates. The appraiser is fully equipped with definite test questions, usually memorized in advance, which he puts to the supervisors. The supervisor is required to give his opinion about the progress of his subordinates, the level of the performance of each subordinate, his weakness, good points, outstanding ability, and promotability, and the possible plans of action in cases requiring further consideration.

MODERN METHOD OF APPRAISAL:

Appraisal by Results Management by Objectives(MBO): This method emphasizes the value of the present and the future instead of that of the past, and focuses attention on the results that are accomplished and not on personal traits or operational methodology. An employee is not judged in terms of operational methodology, or in terms of initiative, cooperativeness, attitude, emotional stability, or any other human quality, but on the basis of the achievement of the targets that have been set. This method is largely applied to technical, professional, supervisory or execute personnel and not to the hourly paid workers because their jobs are usually too restricted. Under MBO programme, an employee and his supervisory meet and together define, establish and set certain goals or objectives which the employee would attempt to achieve within the period of, prescribed time. It consists of five basic steps: Set organizational goals i.e., establishment of an organization wide strategy and goals. Joint goals setting i.e., establishment of short term performance targets between the management and the subordinate in a conference between them. Performance review i.e., frequent performance review meetings between the manager and the subordinate. Set check points i.e., establishment of major check points to measure progress. Feed back.

Assessment Center Method: Under this method, many evaluations join together to judge employee performance in several situations with the use of a variety of criteria. The purpose of this method was end is to test the candidates in a social situation using a number of assessors and a variety of procedures. The most important feature of this is job related simulations.

Human Asset Accounting Method: This method refers to activity devoted to attaching money estimates to the value of a firms internal human organization and its external customer goodwill. If able, well trained personnel leave a firm, the human organization is worthless if they join it, its human assets are increased. If distrust and conflict prevail, the human enterprise devalued. If team work and high moral prevail, the human organization is a very valuable asset.

Behaviorally Anchored Rating Scales(BARS): This is a new technique for appraisals. It provides better, more equitable appraisals as compared to other techniques. Though bars technique is more time consuming and expensive than other appraisal tools. Since bars is done by persons expert in the technique, the results are sufficiently accurate. It has got certain advantages: More accurate It clearly clarifies what we extremely good performance, average performance & so forth. More useful in providing feedback to the people being appraised. Helps in making dimensions more independent if one another.

ESSENTIALS OF A GOOD PERFORMANCE APPRAISAL SYSTEM. 1.Documentation : Means continuous noting and documenting the performance. It also helps the evaluations to give a proof and the basis of their ratings. 2.Standards/Goals : The standards set should be clear, easy to understand, achievable, motivating time bound and measurable. 3.Practical and simple format : The appraisal format should be simple,clear, fair and objective. 4.Evaluation technique : An appropriate evaluation technique should be selected, the appraisal system should be performance based and uniform.The criteria for evaluation should be based on observable and measurable characteristics of the behavior of the employee. 5.Communication : Communication is an indispensible part of the performance appraisal process. The desired behavior or the expected results should be communicated to the employees as well as the evaluators. Modern communication system motivates the employees to actively participate in the appraisal process.

REVIEW OF LITERATURE : Fletcher C, Performance appraisal and management, November 4, 2001: Performance appraisal has widened as a concept and as a set of practices and in the form of performance management has become part of a more strategic approach to integrating HR activities and business policies. As a result of this, the research on the subject has moved beyond the limited confines of measurement issues and accuracy of performance ratings and has begun to focus more of social and motivational aspects of appraisal. This article identifies and discusses a number of themes and trends that together make up the developing research agenda for this field. It breaks these down in terms of the nature of appraisal and the context in which it operates. The former is considered in terms of contemporary thinking on the content of appraisal (contextual performance, goal orientation and self awareness) and the process of appraisal (appraiserappraisee interaction, and multi-source feedback). The discussion of the context of appraisal concentrates on cultural differences and the impact of new technology. David A. Waldman, Predictors of Employee Preferences for Multirater and Group-Based Performance Appraisal, 1997: This study conceptualizes and measures user preferences for 360-degree appraisals and group-level performance management (PM). Users are defined as either recipients of PM processes or those whose job it is to administer the process. Aspects of individual users, their work design, and current appraisal context were used to predict preferences.. Predictors explained significant amounts of variance in user preferences, especially those pertaining to group-level PM. Practical implications are suggested with regard to collecting and using user preferences. In addition, suggestions for future research are offered concerning the need to examine a broad range of users in different organizational settings and to measure actual system design features and their effectiveness. Taylor Cox, Differential Performance Appraisal Criteria, 1986 : Gregory H. Dobbins, A Contingency Approach to Appraisal Satisfaction, 1990:

OBJECTIVES OF THE STUDY : Primary Objective To assess the level of awareness of performance appraisal system in the organization.

Secondary Objectives To find out the effectiveness of the performance appraisal system in the organization. To identify the attitude of employees about performance appraisal system in the organization. To identify on what basis employees performance are assessing. To know the procedure/process of Performance Appraisal. To know the methods of performance appraisal.

CHAPTER-2 RESEARCH METHODOLOGY

Research Methodology:
The research has been developed on the basis of the survey. Research is something which gives at the end of the day the analyzed and a concrete result of the report. Concrete means some research which is supported by some authentic proof. The research methodology is a systematic way to solve the problem and it is an important component of the study without which researcher may not be able to obtain the facts and figures from the employees.

Research Design :
Research design is purely and simply the frame work or plan for a study that guides the collection analysis of the data. In this study select the research design is descriptive research.

Sampling :
Sampling units Element SAMPLE SIZE : : : J K Tyre Office,BANMORE EMPLOYEES/PEOPLE 50 RESPONDENTS

Data Collection Techniques :

The required data is collected both from primary as well as secondary sources. Primary Sources: The primary data is collected with the help of questionnaires, which consists of ten questions each. The questionnaires are chosen because of its simplicity and reliability. Researcher can expect straight answers to the questions. The respondents are informed about the significant of the study and requested to give their fair opinions. Secondary Sources: Secondary data is the data, which is collected and complied for different purposes, which are used in research for this study. Secondary data is collected through the documents provided by the personnel department. The documents include personnel manuals, companys documents, records, reports, journal, etc.

Method used for analysis of study :

The methodology used for this purpose is Survey and Questionnaire Method. A questionnaire technique will be used in order to obtain data and employees will be asked to give the answers of questions in accordance to their best knowledge.

Analysis of Data :
After the data have been collected, the researcher turns to the task of analyzing them. The analysis of data requires a number of closely related operations such as establishment of categories, the application of these categories to raw data through coding, tabulation and then drawing statistical inferences. Thus researcher should classify the raw data into some purposeful and usable categories. In the process of analysis, relationships or differences supporting or conflicting with original or new hypotheses should be subjected to tests of significance to determine with what validity data can be said to indicate any conclusion.

Interpretation :
The interpretation is done on the basis of the analyzed data and also some recommendations are given to fill the loophole (a way of avoiding something stipulated by a law or contract) of the actual scenario.

CHAPTER-3 RESULTS AND DISCUSSION

DATA ANALYSIS AND INTERPRETATION

Research is conducted for finding the solution of the problem. So to find the solution of the problem data analysis and interpretation is must. There are some questions related to this research to interpret the result. The sample size in this study consisted of 50 individuals and data analyzed from the response of these 50 individuals. 1. ARE YOU AWARE OF THE PERFORMANCE APPRAISAL SYSTEM IN YOUR ORGANIZATION ? The basic purpose of this question is to know about how many people are aware of the performance appraisal system. RESPONSES Yes No Total NO.OF RESPONSES 50 0 50 % OF RESPONSES 100 0 100

100%

yes no

Analysis:This table shows that all the 50 individuals were aware of performance appraisal system in the organization.

2.DO YOU THINK PERFORMANCE APPRAISAL IS NEEDED IN A COMPANY ? The basic purpose of this question is to know about how many people think that performance appraisal is needed/required in a company.

RESPONSES Yes No Total

NO.OF RESPONSES 50 0 50

% OF RESPONSES 100 0 100

100%

yes no

Analysis:This chart shows that almost all the employees thought that the performance appraisal is needed in a company.

3.HOW LONG APPRAISAL?

ONCE

THEY

CONDUCT

THE

PERFORMANCE

The basic purpose of this question is to know about the periodic evaluation of performance appraisal .

CATEGORY Once in every year Once in two year Total

NO.OF RESPONSES 34 16 50

% OF RESPONSES 68 32 100

32%

once in every year 68% once in two year

Analysis:The above table clearly shows that from a sample size of 50 respondents, 34 number of employees opinion is that the performance appraisal is conduct once in every year, while remaining 16 number of employees opinion is that the performance appraisal is conduct once in two year.

4. ON WHAT BASIS THEY ARE ASSESSING YOUR PERFORMANCE ? The basic purpose of this question is to know that on what basis the superior assess the employees performance.

OPTIONS Actual performance Qualification Experience All the above Total

NO.OF RESPONSES 16

% OF RESPONSES 32

0 24 10 50

0 48 20 100

20%

32%

actual performance experience

48%

all the above

Analysis:Above 16 employees responded that, the superior assess their performance due to Actual Performance, 24 number of employees said due to Experience and remaining 10 employees is due to all the above.

5.DO YOU THINK THAT A GOOD WORKMEN GETS MOTIVATED WITH FREQUENT PERFORMANCE APPRAISAL?ARE YOU SATISFIED WITH THIS ?

RESPONSES Yes No Total

NO.OF RESPONSES 44 6 50

% OF RESPONSES 88 12 100

12% yes 88% no

Analysis:A majority of 44 number of employees said that a good workman gets motivated with frequent Performance Appraisal and 6 number of employees are not satisfied with above.

6.ARE YOUR ANNUAL INCREMENTS/PROMOTIONS BASED ON YOUR PERFORMANCE ? This question was asked to the employees to know if the annual

increments/promotions are based on their performance or not. RESPONSES Yes No Cant say Total NO.OF RESPONSES 39 9 2 50 % OF RESPONSES 78 18 4 100

4% 18% 78% yes no can't say

Analysis:39 number of the respondents say that the annual increments/promotions are based on their performance. 9 number of the respondents say that the annual increments/promotions are not based on their performance while remaining 2 respondents cant say or their answers are inapplicable.

7.TO WHAT EXTENT DO TRAINING & DEVELOPMENT PROGRAMMES HELP IN IMPROVING YOUR PERFORMANCE ? This question was asked to the employees to know how far the training and development programme is helping the employees to learn and work better.

Particulars

No. of respondents

Percentage of respondents 22% 70% 8% 100%

To great extent To some extent To very little extent Total

11 35 4 50

8%

22% to great extent to some extent 70% to very little extent

Analysis:11 no.of respondents say that the training and development programs help to a great extent to improve their performance, while 35 no. of respondents say that it help to some extent to improve their performance & remaining 4 respondents say that it help to a very little extent to improve their performance.

8.DO YOU HAVE A GOOD RELATIONSHIP WITH APPRAISER AFTER PERFORMANCE APPRAISAL ? This question was asked to the employees to know the good relationship between the appraiser and employees after performance appraisal.

RESPONSES Yes No Total

NO.OF RESPONSES 44 6 50

% OF RESPONSES 88 12 100

12% yes 88% no

Analysis:
A Majority of 44 respondents have the good relationship with appraiser after Performance appraisal while rest of 6 respondents is not having a good relationship with appraiser after Performance appraisal.

CHAPTER-4 FINDINGS

FINDINGS :

100 % of the employees are aware of the performance appraisal system in the organization. 100 % of the employees thought that the performance appraisal is needed in a company. 68 % of the employees opinion is that the performance appraisal is conduct once in every year. 32% employees responded that, the superior assess their performance due to Actual Performance, 48% number of employees said due to Experience and remaining 20% employees is due to all the above. 88% of employees said that a good workman gets motivated with frequent Performance Appraisal. 78% of the employees say that the annual increments/promotions are based on their performance. 18% employees say that the annual increments/promotions are not based on their performance while remaining 4% cant say. Only 22% employees agree that the training and development programs help to a great extent to improve their performance, while 70% employees say that it help to some extent to improve their performance & 8% employees say that it help to a very little extent to improve their performance. 88% employees have the good relationship with appraiser after Performance appraisal.

CHAPTER-5 SUGGESTIONS

SUGGESTIONS :
Proper feedback should be given at fixed time periods, so that the employees increase their performance based on their remarks.

Besides highlighting the negatives of the employees, adequate programs for selfdevelopment must be provided.

Management should continue getting promotions on seniority basis, as it is most preferred by the employees.

Supervisors could try to influence employees and enhance their performance through more personal interaction.

Employees of the organization are satisfied with the current level of performance appraisal system and hence this system should implement more as the employees feel that it could help better their job performance.

The supervisor should try to analyze the strengths and weaknesses of an employee and advise him on correcting the weakness.

Effective training and development programs should be held so as to enhance or improve employees performance. Suggestions and innovations should be encouraged and rewards should be given for unique achievements of the employees.

CHAPTER-6 CONCLUSION

CONCLUSION :

REFERENCES

Books
Human Recourse & Management, K.Aswathappa. Appraising performance, T.V. Rao. Research Methodology, David .R. Cooper and Schindler.

Websites
www.jktyre.com. www.google.com www.wikipedia.com

ANNEXURE

QUESTIONAIRE
I am a student of M.B.A. from Institute of Technology & Management, Sithouli, Jhansi Road . You are required to fill this questionnaire to enable me to undertake the study on the said project. NAME: DESIGNATION: DEPARTMENT: EXPERIENCE: _________________________________ _________________________________ _________________________________ _________________________________

1. Are you aware of the Performance Appraisal System in your organization ? (a) Yes (b) No 2. Do you think Performance Appraisal is needed in a company ? (a) Yes (b) No 3. How long once they conduct the Performance Appraisal ? (a) Once in every year (b) Once in two year 4. On what basis they are assessing your performance ? (a) Actual Performance (b) Qualification (c) Experience (d) All the above 5. Do you think that a good workmen gets motivated with frequent Performance Appraisal ? Are you satisfied with this ? (a) Yes (b) No 6.Are your annual increments / promotions based on your performance ? (a) Yes (b) No (c) Cant Say 7.To what extent do training & development programs help in improving your performance ? (a) To great extent (b) To some extent (c) To very little extent

8. Do you have a good relationship with appraiser / supervisor after Performance Appraisal ? (a) Yes (b) No 9.What is your expectations and suggestions to improve performance appraisal system ? -------------------------------------------------------------------------------------