Project work on TATA OF

PERFORMANCE APPRAISAL .
Performance Appraisal in Tata Motors

1. 2012Performance Appraisal in Tata Motors Surabhi Agarwal Abhishek Gangwar Fatima Abbas
Aarti Chaudhary Eram Khan IIPM 9/24/2012

2. INDEX1. ACKNOWLEDGEMENT 3

2. Executive Summery 4

3. About the Company 6

4. Performance Appraisal 12

5. Performance appraisal in Tata motors 24

6. Research 30

7. Annexure 45

8. Bibliography 48

3. ACKNOWLEDGEMENT

4. EXECUTIVE SUMMARY

Managing human resources in today’s dynamic environment is becoming more and more complex as
well as important. Recognition of people as a valuable resource in the organization has led to
increases trends in employee maintenance, job security, etc. My research project deals with
“Performance Appraisal as carried out at Tata motors . In this report, I have studied & evaluated the
performance appraisal process as it is carried out in the company. The first section of my report
deals with a detailed company profile. It includes the company’s history: its activities and operations,
organizational structure, etc. this section attempts to give detailed information about the company
and the nature of it’s functioning. The second section deals with performance appraisal. In this
section, a brief conceptual explanation to performance appraisal is given. It contains the definition,
process and significanceof performance appraisal.In the third section of my report, I have conducted
a research study to evaluate the process ofperformance appraisal at Tata motors.; this section also
contains my findings, conclusions, suggestions and feedback. The fourth and final section of this
report consists of extra information that I related to the main contents of the report. These
annexure includes the Questionnaire on the basis of which the primary data was collected and
research study was conducted……

5. TATA MOTORS

6. Tata Motors Limited formerly is an Indian multinational automotive manufacturing company

headquartered in Mumbai, India and a subsidiary of the Tata Group. Its products include passenger
cars, trucks, vans and coaches. It is the world’s eighteenth-largest motor vehicle manufacturing
company, fourth-largest truck manufacturer and second-largest bus manufacturer by volume. Tata
Motors has auto manufacturing and assembly plants in:1) Jamshedpur2) Pantnagar3) Lucknow4)
Sanand5) Dharwad6) Pune India, as well as in Argentina, South Africa, Thailand and the United
Kingdom. Tata Motors has produced and sold over 6.5 million vehicles in India since 1954. Originally
a manufacturer of locomotives, the company manufactured its first commercial vehicle in 1954 in a
collaboration with Daimler-Benz AG, which ended in 1969. In 2010, Tata Motors surpassed Reliance
to win the coveted title of India’s most valuable brand in an annual survey conducted by Brand
Finance and The Economic Times. Tata Motors was ranked as India’s 3rd Most Reputed Car
manufacturer in the Reputation Benchmark Study - Auto (Cars) Sector, launched in April2012.Tata
Motors has been ranked 314th in the Fortune Global 500 rankings of the worlds biggest corporations
for the year 2012. Tata Motors is a cross-listed company; Its stock trades on the Bombay Stock
Exchange and the New York Stock Exchange as TTM. The second-generation Tata Indica; one of the
best selling cars in the history of the Indian automobile industry

7. Tata Nano, the worlds cheapest car Tata entered the commercial vehicle sector in 1954 after
forming a joint venture with Daimler-Benz of Germany. After years of dominating the commercial
vehicle market in India. Tata Motors entered the passenger vehicle market in 1991 by launching the
Tata Sierra, a multiutility vehicle. After the launch of three more vehicles, Tata Estate (1992, a station
wagon design based on the earlier TataMobile (1989), a light commercial vehicle), Tata Sumo (LCV,
1994) and Tata Safari (1998, India’s first sports utility vehicle). Tata launched the Indica in 1998, the
first fully indigenous Indian passenger car. Although initially criticised by auto-analysts, its excellent
fuel economy, powerful engine and an aggressive marketing strategy made it one of the best selling

8. cars in the history of the Indian automobile industry. A newer version of the car, named IndicaV2,
was a major improvement over the previous version and quickly became a mass-favorite. Tata
Motors also successfully exported large quantities of the car to South Africa. The success of Indica
played a key role in the growth of Tata Motors. In 2004 Tata Motors acquired Daewoo’s South
Korea-based truck manufacturing unit, Daewoo Commercial Vehicles Company, later renamed Tata
Daewoo. In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and coach
manufacturer Hispano Carrocera. Tata Motors continued its market area expansion through the
introduction of new products such as buses (Star bus & Globus, jointly developed with subsidiary
Hispano Carrocera) and trucks (Novus, jointly developed with subsidiary Tata Daewoo).In 2006, Tata
formed a joint venture with the Brazil-based Marcopolo, Tata Marcopolo Bus, to manufacture fully
built buses and coaches. In 2008, Tata Motors acquired the British car maker Jaguar Land Rover,
manufacturer of the Jaguar, Land Rover and Daimler luxury car brands, from Ford Motor Company.
In May 2009Tata unveiled the Tata World Truck range jointly developed with Tata Daewoo. Debuting
in South Korea, South Africa, the SAARC countries and the Middle-East by the end of 2009. Tata
acquired full ownership of Hispano Carrocera in 2009. In 2010, Tata Motors acquired an 80%stake in
the Italy-based design and engineering company Trilix for a consideration of€1.85 million. The
acquisition formed part of the company’s plan to enhance its styling and design capabilities. In 2012,
Tata Motors announced it will invest around Rs 600 crore on developing Futuristic Infantry Combat
Vehicles in colloboration with DRDO…….

9. OperationsTata Motors has vehicle assembly operations in India, the United Kingdom, South
Korea,Thailand, Spain and South Africa. It plans to establish plants in Turkey, Indonesia and
EasternEurope.Tata Motors principal subsidiaries include Jaguar Land Rover, Tata Daewoo and
TataHispano.Tata Motors is among the top three in passenger vehicles in India with products in the
compact,midsize car and utility vehicle segments.The company‟s manufacturing base in India is
spread across: Jamshedpur (Jharkhand) Pune (Maharashtra) Lucknow (Uttar Pradesh) Pantnagar
(Uttarakhand) Dharwad (Karnataka).The company is establishing a new plant at Sanand (Gujarat).
Tatas dealership, sales, serviceand spare parts network comprises over 3500 touch points.Tata also
has franchisee/joint venture assembly operations in Kenya, Bangladesh, Ukraine,Russia and
Senegal .Tata has dealerships in 26 countries across 4 continents. Though Tata ispresent in many
countries it has only managed to create a large consumer base in the IndianSubcontinent, namely
India, Bangladesh, Bhutan, Sri Lanka and Nepal. Tata has a growingconsumer base in Italy, Spain and
South Africa. Tata Motors has more than 250 dealerships inmore than 195 cities across 27 states and
4 Union Territories of India. It has the 3rd largestSales and Service Network after Maruti Suzuki and
Hyundai.Tata Daewoo . In 2004, Tata Motors acquired Daewoo Commercial Vehicle Company of
SouthKorea. :To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata
Novusfrom Daewoo‟s (South Korea) (TDCV) platform. Tata plans to leverage on the strong
presenceof TDCV in the heavy-tonnage range and introduce products in India at an appropriate time.
Thiswas mainly to cater to the international market and also to cater to the domestic market where
a

10. major improvement in the Road infrastructure was done through the National
HighwayDevelopment Project.Tata Daewoo is the second-largest heavy commercial vehicle
manufacturer in South Korea. TataMotors has jointly worked with Tata Daewoo to develop trucks
such as Novus and World Truckand buses including GloBus and StarBus. In 2012, Tata will start
developing a new line tomanufacture competitive and fuel efficient commercial vehicles to face the
competition posed bythe entry of international brands like Mercedes-Benz, Volvo and Navistar into
the Indian market.Products 1. Tata Starbus Low Floor 1610 2. Tata Marcopolo buses in the Delhi BRT
3. Commercial vehicles 4. Military vehicles 5. Electric vehicles

11. PERFORMANCE APPRAISAL

12. INTRODUCTION TO HUMAN RESOURCE MANAGEMENTHuman Resource (or personnel)

management, in the sense of getting things done through people,is an essential part of every
manager‟s responsibility, but many organizations find itadvantageous to establish a specialist
division to provide an expert service dedicated to ensuringthat the human resource function is
performed efficiently.“People are our most valuable asset” is a cliché, which no member of any
senior managementteam would disagree with. Yet, the reality for many organizations is that their
people remainundervalued, under trained and underutilized.The market place for talented, skilled
people is competitive and expensive. Taking on new staffcan be disruptive to existing employees.
Also, it takes time to develop „cultural awareness‟,product / process / organization knowledge and
experience for new staff members. FUNCTIONS OF HUMAN RESOURCE MANAGEMENT Following are
the various functions of Human Resource Management that are essential for the effective
functioning of the organization: 1. Recruitment 2. Selection 3. Induction 4. Performance Appraisal 5.
Training & Development Recruitment The process of recruitment begins after manpower
requirements are determined in terms of quality through job analysis and quantity through
forecasting and planning. Selection The selection is the process of ascertaining whether or not
candidates possess the requisite qualifications, training and experience required.

13. InductionInduction is the technique by which a new employee is rehabilitated into the
changedsurroundings and introduced to the practices, policies and purposes of the
organization.WHAT IS “PERFORMANCE APPRAISAL”?Performance Appraisal is defined as the process
of assessing the performance and progress ofan employee or a group of employees on a given job
and his / their potential for futuredevelopment. It consists of all formal procedures used in working
organizations and potentialof employees. According to Flippo, “Performance Appraisal is the
systematic, periodic and animportant rating of an employee‟s excellence in matters pertaining to his
present job and hispotential for a better job.”CHARACTERISTICS 1. Performance Appraisal is a
process. 2. It is the systematic examination of the strengths and weakness of an employee in terms
of his job. 3. It is scientific and objective study. Formal procedures are used in the study. 4. It is an
ongoing and continuous process wherein the evaluations are arranged periodically according to a
definite plan. 5. The main purpose of Performance Appraisal is to secure information necessary for
making objective and correct decision an employee.

14. PROCESS The process of performance appraisal: 1. Establishing performance standards 2.

Communicating the Standards 3. Measuring Performance 4. Comparing the actual with the
standards 5. Discussing the appraisal 6. Taking Corrective Action LIMITATIONS 1. Errors in Rating 2.
Lack of reliability 3. Negative approach 4. Multiple objectives 5. Lack of knowledge METHODS OF
PERFORMANCE APPRAISALThe foregoing list of major program pitfalls represents a formidable
challenge, even consideringthe available battery of appraisal techniques. But attempting to avoid
these pitfalls by doingaway with appraisals themselves is like trying to solve the problems of life by
committingsuicide. The more logical task is to identify those appraisal practices that are (a) most
likely toachieve a particular objective and (b) least vulnerable to the obstacles already
discussed.Before relating the specific techniques to the goals of performance appraisal stated at the
outsetof the article, We shall briefly review each, taking them more or less in an order of
increasingcomplexity.The best-known techniques will be treated most briefly.

15. ESSAY APPRAISALIn its simplest form, this technique asks the rater to write a paragraph or more
covering anindividuals strengths, weaknesses, potential, and so on. In most selection situations,
particularlythose involving professional, sales, or managerial positions, essay appraisals from
formeremployers, teachers, or associates carry significant weight.GRAPHIC RATING SCALEThis
technique may not yield the depth of an essay appraisal, but it is more consistent andreliable.
Typically, a graphic scale assesses a person on the quality and quantity of his work (ishe outstanding,
above average, average, or unsatisfactory?) and on a variety of other factorsthat vary with the job
but usually include personal traits like reliability and cooperation. It mayalso include specific
performance items like oral and written communication.FIELD REVIEWThe field review is one of
several techniques for doing this. A member of the personnel orcentral administrative staff meets
with small groups of raters from each supervisory unit andgoes over each employees rating with
them to (a) identify areas of inter-rater disagreement, (b)help the group arrive at a consensus, and
(c) determine that each rater conceives the standardssimilarly.FORCED-CHOICE RATINGLike the field
review, this technique was developed to reduce bias and establish objectivestandards of comparison
between individuals, but it does not involve the intervention of a thirdparty.MANAGEMENT BY
OBJECTIVESTo avoid, or to deal with, the feeling that they are being judged by unfairly high
standards,employees in some organizations are being asked to set - or help set - their own
performancegoals. Within the past five or six years, MBO has become something of a fad and is so
familiarto most managers that I will not dwell on it here.RANKING METHODSFor comparative
purposes, particularly when it is necessary to compare people who work fordifferent supervisors,
individual statements, ratings, or appraisal forms are not particularlyuseful. Instead, it is necessary to
recognize that comparisons involve an overall subjective

16. judgment to which a host of additional facts and impressions must somehow be added. There
isno single form or way to do this.The best approach appears to be a ranking technique involving
pooled judgment.The two most effective methods are alternation ranking and paired comparison
ranking.1. “Alternation ranking”:Ranking of employees from best to worst on a trait or traits is
another method for evaluatingemployees. Since it is usually easier to distinguish between the worst
and the best employeesthan to rank them, an alternation ranking method is most popular. Here
subordinates to be ratedare listed and the names of those not well enough to rank are crossed. Then
on a form as shownbelow, the employee who is highest on the characteristic being measured and
the one who is thelowest are indicated. Then chose the next highest and the next lowest, alternating
betweenhighest and lowest until all the employees to be rated have been ranked.2. “Paired-
comparison ranking”:This technique is probably just as accurate as alternation ranking and might be
more so. Butwith large numbers of employees it becomes extremely time consuming and
cumbersome.Both ranking techniques, particularly when combined with multiple rankings (i.e.,
when two ormore people are asked to make independent rankings of the same work group and their
lists areaveraged), are among the best available for generating valid order-of-merit rankings for
salaryadministration purposes.ASSESSMENT CENTERSSo far, we have been talking about assessing
past performance. What about the assessment offuture performance or potential? In any placement
decision and even more so in promotiondecisions, some prediction of future performance is
necessary. How can this kind of predictionbe made most validly and most fairly?360 DEGREE
FEEDBACKMany firms have expanded the idea of upward feedback into what the call 360-degree
feedback.The feedback is generally used for training and development, rather than for pay
increases.Most 360 Degree Feedback system contains several common features. Appropriate parties
–peers, supervisors, subordinates and customers, for instance – complete survey, questionnaireson
an individual. 360 degree feedback is also known as the multi-rater feedback, whereby ratings

17. are not given just by the next manager up in the organizational hierarchy, but also by peers
andsubordinates. Appropriates customer ratings are also included, along with the element of
selfappraisal. Once gathered in, the assessment from the various quarters are compared with
oneanother and the results communicated to the manager concerned.Another technique that is
useful for coaching purposes is, of course, MBO. Like the criticalincident method, it focuses on actual
behavior and actual results, which can be discussedobjectively and constructively, with little or no
need for a supervisor to "play God."AdvantagesInstead of assuming traits, the MBO method
concentrates on actual outcomes. If the employeemeets or exceeds the set objectives, then he or
she has demonstrated an acceptable level of jobperformance. Employees are judged according to
real outcomes, and not on their potential forsuccess, or on someones subjective opinion of their
abilities.The guiding principle of the MBO approach is that direct results can be observed easily.
TheMBO method recognizes the fact that it is difficult to neatly dissect all the complex and
variedelements that go to make up employee performance.MBO advocates claim that the
performance of employees cannot be broken up into so manyconstituent parts, but to put all the
parts together and the performance may be directly observedand measured.DisadvantagesThis
approach can lead to unrealistic expectations about what can and cannot be
reasonablyaccomplished. Supervisors and subordinates must have very good "reality checking" skills
to useMBO appraisal methods. They will need these skills during the initial stage of objective
setting,and for the purposes of self-auditing and self-monitoring.Variable objectives may cause
employee confusion. It is also possible that fluid objectives maybe distorted to disguise or justify
failures in performance.Benefits of Performance Appraisals Measures an employee‟s performance.
Helps in clarifying, defining, redefining priorities and objectives. Motivates the employee through
achievement and feedback. Facilitates assessment and agreement of training needs. Helps in
identification of personal strengths and weaknesses. Plays an important role in Personal career and
succession planning. Clarifies team roles and facilitates team building.

18. Plays major role in organizational training needs assessment and analysis. Improves
understanding and relationship between the employee and the reporting manager and also helps in
resolving confusions and misunderstandings. Plays an important tool for communicating the
organization‟s philosophies, values, aims, strategies, priorities, etc among its employees. Helps in
counseling and feedback.Rating Errors in Performance AppraisalsPerformance appraisals are subject
to a wide variety of inaccuracies and biases referred to asrating errors. These errors can seriously
affect assessment results. Some of the most commonrating errors are: -Leniency or severity: -
Leniency or severity on the part of the rater makes the assessmentsubjective. Subjective assessment
defeats the very purpose of performance appraisal. Ratings arelenient for the following reasons: a)
The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will reflect
poorly on his or her own worthiness. b) He/She may feel that a derogatory rating will be revealed to
the rate to detriment the relations between the rater and the ratee. c) He/She may rate leniently in
order to win promotions for the subordinates and therefore, indirectly increase his/her hold over
him.Central tendency: - This occurs when employees are incorrectly rated near the average ormiddle
of the scale. The attitude of the rater is to play safe. This safe playing attitude stems fromcertain
doubts and anxieties, which the raters have been assessing the rates.Halo error: - A halo error takes
place when one aspect of an individuals performance influencesthe evaluation of the entire
performance of the individual. The halo error occurs when anemployee who works late constantly
might be rated high on productivity and quality of output aswell ax on motivation. Similarly, an
attractive or popular personality might be given a highoverall rating. Rating employees separately on
each of the performance measures andencouraging raters to guard against the halo effect are the
two ways to reduce the halo effect.Rater effect: -This includes favoritism, stereotyping, and hostility.
Extensively high or low scoreare given only to certain individuals or groups based on the raters
attitude towards them and noton actual outcomes or behaviors; sex, age, race and friendship biases
are examples of this type oferror.

19. Primacy and Regency effects: - The raters rating is heavily influenced either by behaviorexhibited
by the ratee during his early stage of the review period (primacy) or by the outcomes,or behavior
exhibited by the ratee near the end of the review period (regency). For example, if asalesperson
captures an important contract/sale just before the completion of the appraisal, thetiming of the
incident may inflate his or her standing, even though the overall performance of thesales person
may not have been encouraging. One way of guarding against such an error is to askthe rater to
consider the composite performance of the rate and not to be influenced by oneincident or an
achievement.Performance dimension order: - Two or more dimensions on a performance
instrument followeach other and both describe or rotate to a similar quality. The rater rates the first
dimensionsaccurately and then rates the second dimension to the first because of the proximity. If
thedimensions had been arranged in a significantly different order, the ratings might have
beendifferent.Spillover effect: - This refers lo allowing past performance appraisal rating lo
unjustifiablyinfluence current ratings. Past ratings, good or bad, result in similar rating for current
periodalthough the demonstrated behavior docs not deserve the rating, good or bad. ROLES IN THE
PERFORMANCE APPRAISAL PROCESSa) Reporting Manager Ø Provide feedback to the reviewer /
HOD on the employees‟ behavioral traits indicated in the PMS Policy Manual Ø Ensures that
employee is aware of the normalization / performance appraisal process Ø Address employee
concerns / queries on performance rating, in consultation with the reviewerb) Reviewer (Reporting
Manager’s Reporting Manager) Ø Discuss with the reporting managers on the behavioral traits of all
the employees for whom he / she is the reviewer

20. Ø Where required, independently assess employees for the said behavioral traits; such
assessments might require collecting data directly from other relevant employeesc) HOD (In some
cases, a reviewer may not be a HOD) Ø Presents the proposed Performance Rating for every
employee of his / her function to the Normalization committee. Ø HOD also plays the role of a
normalization committee member Ø Owns the performance rating of every employee in the
departmentd) HR Head Ø Secretary to the normalization committee Ø Assists HOD‟s / Reporting
Managers in communicating the performance rating of all the employeese) Normalization
Committee Ø Decides on the final bell curve for each function in the respective Business Unit / Circle
Ø Reviews the performance ratings proposed by the HOD‟s, specifically on the upward / downward
shift in ratings, to ensure an unbiased relative ranking of employees on overall performance, and
thus finalize the performance rating of each employee KEY CONCEPTS IN PERFORMANCE
MANAGEMENT SYSTEMIn order to understand the Performance Management System at Tata
Motors , someconcepts need to be explained which play a very important role in using the PMS
successfully.They are: Ø KRA’S (KEY RESULT AREAS): The performance of an employee is largely
dependent on the KRA score achieved by the employee during that particular year. Thus, it is
necessary to answer a few basic questions i.e. o What are the guidelines for setting the KRA‟s for an
employee? o How does an employee write down his KRA‟s for a particular financial year?

21. o KRA‟s: The Four Perspectives. o How is the KRA score calculated for an employee on the basis
of the targets sets and targets achieved?Ø BEHAVIORAL TRAITS: Some of the qualitative aspects of
an employees‟ performance combined with the general behavioral traits displayed by the employee
during a year constitutes his behavior traits. An employee is assigned the rating on the basis of the
intensity of the behavior displayed by him. They play a very important role in the deciding the final
performance rating for an employee as is even capable of shifting the rating one level
upwards/downwards.Ø BHARTI 2010 LEADERSHIP COMPETENCY FRAMEWORK: This competency
framework is a simple and structured way to describe the elements of behaviors required to perform
a role effectively. This framework also tries to assess the performance of an employee objectively.Ø
THE PERFORMANCE RATING PROCESS: The rating process tries to explain the four different types of
rating that an employee can achieve i.e. EC, SC, C and PC. It also explains the criteria, which is
considered for awarding any of these ratings to the employee.Ø PROMOTION AND RATING
DISRTRIBUTION GUIDELINES: The promotion and normal distribution guidelines provide the
framework within which the performance appraisal process has to work. It is very important that the
HR department pays due attention to these guidelines while preparing the bell curves for various
functions and the consolidated bell curve for all the functions. These guidelines also help in deciding
upon the promotion cases in a year.

22. PERFORMANCE RATING PROCESSEXCEPTIONAL CONTRIBUTOR (EC) SIGNIFICANT CONTRIBUTOR

(SC) · Performs consistently and substantially above · Performs above expectations in all areas
expectations in all areas · Achieves final score between 100-114% · Achieves a final score greater
than or equal to 115% Versatile in his/ her area of operation · Consistently delivers on stretch targets
Develops creative solutions and require · Is proactive little / minimal supervision · Spots and
anticipates problems, implements Sets examples for others solutions Take ownership of own
development · Sees and exploits opportunities Coaches others · Delivers ahead of time
Demonstrates business initiative · Sees the wider picture-impacts across Is self motivated business
Supportive team player · Focuses on what’s good for the business Leads own team very effectively ·
Seen as role model by others Demonstrate functional initiative · Recognized as exceptional by other
functions as well · · Motivates others to solve problems · Develops others · Provides open and honest
feedback · Able to establish and lead cross-functional teams

23. Performance Appraisal In Tata Motors

24. Tata Motors IdeologiesVISION“To be the world class corporate constantly furthering the interest
of all stakeholder”.HR VISIONLead and Facilitate continuous change towards organizational
excellence ; create a learning andvibrant organization with high sense of pride amongst its
membersAPPRAISAL & REWARDAPPRAISAL New Appraisal System based on KRAs & Targets· Review
of Targets at regular Intervals· People Development an important KRAREWARD Promotions based on
Performance· Productivity & Profit-linked Incentive Schemes· Training including Long-term
TermCAREER DESIGN• Performance & Potential based Appraisals• Fast Track Option for High-
performers• Promotions after Managers Vacancy based• Interviews for promotions above Managers

25. • Selection of Supervisors:– Performance / Attendance / Discipline record– Written Test &
Interview• Job Rotation - including Inter-functionalRETENTION & EMPLOYEE WELFARE Residential
Colonies for Employees Hospitalization Reimbursement – on actual without Ceiling Vehicle Loans
Household Equipment Loans House Building Advance Annual Advance· PF Trust – for better Mgt.,
Service & speedy redress· Proposed MUL Pension SchemeSUGGESTION SCHEME & QUALITY
CIRCLES• For better quality and productivity• Through involvement of all employees and
teamworkCriteria Idea Efforts Result : Cost reduction / Q Improvement / Productivity Improvement

26. HR INITIATIVES• REALIGNING ORGANISATION CULTURE BASED ONNEW VISION & VALUES•
OBJECTIVE PERFORMANCE MANAGEMENT & DEVELOPMENT SYSTEM.• PERFORMANCE LINKED
REWARD AND RECOGNITION SYSTEM• CAREER PLANNING & PROMOTION POLICY• REVISED
RECRUITMENT POLICY• COMPETENCY MAPPING • STRONG FUCUS ON TRAINING INITIATIVES- BUILD
A LEARNNGORGANISATION- CONTINUOUS VALUE ADDITION TOPROFESSIONAL SKILL- CUSTOMISED
TRAINING- TRAINING TO THEPERSONNEL OF BUSINESS PARTNERS• INTERNAL COMMUNICATION•
UNION ALIGNMENT• EMPLOYEE INVOLVMENT & PARTICIPATION

27. Tata Motors Appraisal SystemA detailed discussion with HR head Mrs. Monika Ahuja of Tata
Motors (lucknow branch),gave us the insight in the performance appraisal system followed in the
company. The appraisalmodel which is followed on annual basis starting from the month of April till
March has beenextremely effective for the employees of Tata Motors.Half yearly appraisal system,
was started a year ago. This activity was started keeping in mindthe dynamic behavior of the
industry. With a half yearly appraisal system, the employee getsfeedback twice a year, which gives
him/her a chance to re-look at his/her approach of working.Necessary steps are also undertaken for
employees who deviate from their goals. They haveintroduced a comprehensive system of quarterly
appraisals‟ where an employee selects his/herown goals or Key Result Area (KRAs) every quarter
and him/her self assesses his/her ownperformance against these parameters. At Spice jet while
formally the process is annual, forseveral of the frontline employees, there are performance related
quarterly payouts designed toreward them with incentives for their performance. This has resulted
in quarterly assessmentswhich are aligned overall to annual KRAsTata Motors have a midterm
review for all those who have been performers, thereby creating anexpectation amongst the
employees of an increase in salary twice a year if they perform well.They used to have annual
appraisals earlier, but then they felt that the incentives are not enoughto motivation the sales
department, which generates major revenues or the organization.they do give monetary increments
and designation hikes, according to the performance. If theemployee deserves both, they give
him/her both the advantages otherwise at least one of them.Designation hikes are given annually.
These are proportional to effort of the individual, team andthe department. Designation changes are
given keeping in mind the immense responsibility onehas to shoulder in a high rank. Monetary
increments are primarily incentives that are given eitherin cash or kind for example they give them
travel package within India or outside. Also, theyhave an accumulating incentive scheme in which
employees can accumulate incentives and getthem annually with interest.To meet the new demands
of the business and to motivate the employees for higher performance,they have started linking a
part of the salary increase to individual performance measures asvariable pay. At present, between
6 to 8 percent of the compensation is variable pay, which theyare planning to increase over a period
of time. Executives are categorized in levels based on theirperformances in a relative ranking and
based on outcome performance-linked pay is awarded..
28. Goal-Setting ModelA goal setting program in an organization requires careful planning. As shown
in the figure,the first three factors in goalsetting process are establishing the goal, achieving goal
commitment, and overcomingresistance to goal acceptance. Goals can be established in a variety of
ways. Best way isto set by joint participation between the employee and the supervisor. Thismethod
often leads to employee commitment, a crucial ingredient in effective goal setting.Goal
SettingS.M.A.R.T.* Goals• Specific – precise and detailed• Measurable – with criteria for determining
progress andsuccess• Achievable – attainable and action-oriented• Realistic – relevant and aligned•
Time-related – grounded within a time-frameFor this purpose, an online template is circulated in the
organization. Superiors fill out that formkeeping in view the performance of their subordinate over
the year. This feedback becomes thebasis of the promotion of the employees.Superior is responsible
for categorizing the employess in four category, namely –ABCDThis categorization is done both on
the basis of performance and the goals they were given.This whole system is commonly known as90
degree appraisal system also called 2 tiers.

29. RESEARCH

30. AbstractTata Motors is India‟s One of the most successful automobile company. It currently
Employees59,759 (2012) personnel , who are constantly evaluated and appraised . This Gives us
theopportunity to study the performance appraisal method by the company and it‟s
efficiencytowards employees as well as Organization.Objective of the Study :To carry out the study
at Tata Motors , we framed the following objectives1. Identification of the technique of performance
appraisal followed in Tata Motors .2. Employee attitude towards the present appraisal system.3.
Review of the current appraisal system in order to 1. Enhance productivity 2. Attain global
standards4. To provide suggestions & recommendations from the study conducted.Hypotheses of
the Study 1. Performance Appraisal is not having positive effect on Tata motors employee on
Lucknow Branch. ( Ho) 2. Performance Appraisal Is having positive effect on Tata Motors Employees
of Lucknow branch. (Ha) .

31. RESEARCH METHODOLOGY :The Study is Primarily Based on the Primary data Collected through
Questionnaire from TataMotors Employees.SAMPLING PLAN: Sample Size = 50 Employees Sample
Area = Chinhat , Lucknow Duration = 6 weeks. DATA COLLECTION: Data Sources: (i) Secondary Data
through Internet (ii) Primary Data through Questionnaire (iii) Contact Method (iv) Personal
Interaction

32. Analysis and InterpretationQ1- Years of service 4% 12% 30% below 2yrs 2-5yrs 5-10yrs 54% 10yrs
and aboveInterpretation-From the above pie chart we conclude that the maximum year of service of
the employees ofTata Motors in Lucknow is maximum between 5-10 years(i.e 54%) and minimum is
below2years (i.e 4%).

33. Q2- Awareness of technique of Performance Appraisal 28% No 72% Yes Options No. of
Responses Yes 36 No 14Interpretation-From the above pie chart we conclude that maximum
employees are aware of their performanceappraisal technique (i.e 72%) and the employees not
aware of it is minimum (i.e 28%)

34. Q3- Employees’ opinion as to the present appraisal system 2% 24% 30% Fully satisfied satisfied
cant say 44% Dissatisfied Options No. of Responses Fully Satisfied 12 Satisfied 22 Can‟t Say 15
Dissatisfied 1Interpretation-From the above pie chart we conclude that maximum employees are
satisfied with the presentappraisal system( i.e 44%) and minimum (i.e 2%) are dissatisfied.

35. Q4- Employee perception as to the frequency of appraisal 0% 2% 6% Once during the service
period Continuous Never Cant Say 92% Options No. of Responses Once During The 1 Service Period
Continuous 46 Never 0 Can’t Say 3Interpretation-From the above pie chart we find that the
maximum (i.e 92%) of the employees think that thefrequency of appraisal must be continuous
whereas minimum (i.e 0%) none of the employeesfeel that Tata motors should not appraise.

36. Q5-If continuous appraisal – what should be the gap between two appraisal period 20% 36%
Quaterly Half-Yearly 44% Yearly Options No. of Responses Quarterly 10 Half Yearly 22 Yearly
18Interpretation-From the above pie chart we conclude that maximum (i.e 44%) of the employees
want toconsider performance appraisal half yearly whereas minimum (i.e 20%) of them want
itquarterly.

37. Q6- How Performance Appraisal affects the productivity of the employees Motivated Indifferent
Demotivated + Feedback 38 12 - - Feedback 12 10 28 Neutral 24 21 5Interpretation- From the above
chart we conclude that the affect of performance appraisal with a positive feedback and motivated
results lead to maximum productivity of employees(i.e 76%) whereas none of the employees are
demotivated. Giving negative feedback with demotivating results leads to minimum productivity of
employees (i.e 56%) whereas minimum number of employees would be indifferent towards it. Giving
a neutral feedback with motivating results leads to average productivity of employees (i.e 48%)
whereas only a few lead to low productivity with demotivating results (i.e 10%)

38. Q7- Who should do the appraisal? 16% Superior 24% 0% Peer 0% Subordinate 8% Self appraisal
48% Consultant 4% All of the Above Superior+Peer Options No. of Responses Superior 12 Peer 0
Subordinate 0 Self Appraisal 4 Consultant 2 All of the above 24 Superior + Peer 8Interpretation-From
the above pie chart we conclude that the maximum employees (i.e 24%) want to get theappraisal
through superior, self appraisal, consultant. Whereas none of them want to get it donefrom their
peers and subordinates.

39. Q8- Does appraisal help in polishing skills and performance area? 16% Yes 10% No Somewhat
74% Options No. of Responses Yes 37 No 5 Somewhat 8Interpretation-If the process of appraisal
does not lead to the improvement of the skills and proficiency of theemployees, the very purpose of
appraisal becomes illogical. In the survey conducted it wasobserved that nearly 74 % of the
respondents agree that Performance Appraisal does leads topolishing the skills of the employees.
Nearly 10 % of the respondents view that it does not servethis purpose and around 16 % were not
able to respond as to whether it serve any such purposesor not.

40. Q9- Does personal bias creeps-in while appraising an employee 18% Yes No 82% Options No. of
Responses Yes 41 No 9Interpretation-In the process of appraising, both the parties are human being,
that is, the one who is beingapprised and the other who is appraising. Thus, there bound to be
subjectivity involved, be it anobjective way of appraising. Thus, when asked from among the sample
size of 50 respondents, ashuge as 82 % respondents that personal bias do creep in while appraising
an individual. Hence, itis inevitable to say that personal likings do not come in the process of
appraisal. It is the extent towhich the appraiser manages it so that it does not become very partial
and bias.

41. Q10 If given a chance, would employees like to review the current appraisal technique 24% 32%
Yes No Cant Say 44% Options No. of Responses Yes 16 No 22 Can‟t Say 12Interpretation-From the
above pie chart we conclude that the maximum employees (i.e 32%) do not want toreview the
performance appraisal system whereas minimum (i.e 24%) can‟t comment about thesame.

42. Q11- Appropriate method of conducting the performance appraisal 0% 12% 6% Ranking method
paired comparison 20% critical Incidents 58% MBO Assessment Centre 360 degree 4% Options No. of
Responses Ranking Method 6 Paired Comparison 0 Critical Incidents 3 MBO 10 Assessment Centre 2
360 degree 29Interpretation-From the above pie chart we conclude that the maximum (i.e 58%) of
the employees prefer the360 degree technique of performance appraisal whereas the minimum (i.e
0%) want pairedcomparison technique.

43. Q12- Does performance appraisal leads to identification of hidden potential 4% Yes No 96%
Options No. of Responses Yes 48 No 2Interpretation-From the above pie chart we interpret that
maximum (i.e 96%) of the employees feel thatperformance appraisal leads to identification of
hidden potential whereas minimum (i.e 4%)disagree with the same.

44. SUGGESTIONS AND CONCLUSIONAfter having analyzed the data, it was observed that there was
appraisal in the organization. It isan effective tool, since it is on continuous basis. Performance
appraisals in Tata Motors issatisfactory for its effective management and evaluation of staff.
Appraisals here are helpingindividuals to develop, improve organizational performance, and feed
into business planning.Performance appraisals enable management in monitoring of standards,
agreeing expectationsand objectives, and delegation of responsibilities and tasks. Staff performance
appraisals alsoestablish individual training needs and enable organizational training needs analysis
andplanning. 90degrees appraisal system or review is being followed in Tata Motors i.e feedbackthat
comes from members of an employees immediate work circle most often, 360-degreefeedback will
include direct feedback from an employees subordinates, peers, and supervisor(s),as well as a self-
evaluation. It can also include, in some cases, feedback from external sources,such as customers and
suppliers or other interested stakeholders. The appraisal process iscontinuous here and encourages
employee productivity with positive feedbacks.Findings- 1. The very concept of performance
appraisal is marketed throughout the organization, people have accepted it and understood its
importance to the organization. 2. To market such a concept, it should not start at bottom, instead it
should be started by the initiative of the top management. This would help in percolating down the
concept to the advantage of all, which includes the top management as well as those below them.
This means that the top management has to take a welcoming and positive approach towards the
change that is intended to be brought. 3. Further, at the time of confirmation also, the appraisal
form should not lead to duplication of any information. Instead, detailed appraisal of the
employee‟s work must be done – which must incorporates both the work related as well as the
other personal attributes that are important for work performance. 4. It should be noted that the
appraisal form for each job position should be different as each job has different knowledge and skill
requirements. There should not be a common appraisal form for every job position in the
organization.

45. 5. The job and role expected from the employees should be decided well in advance and that too
with the consensus with them. 6. A neutral panel of people should do the appraisal and to avoid
subjectivity to a marked extent, objective methods should be employed having quantifiable data. 7.
The time period for conducting the appraisal should be revised, so that the exercise becomes a
continuous phenomenon. 8. Transparency into the system should be ensured through the discussion
about the employee‟s performance with the employee concerned and trying to find out the grey
areas so that training can be implemented to improve on that.9. The feedback doesn‟t Come from
multiple source. It should to increase the efficiency.10. Lack of Truth about Organization culture is
conveyed through 90 degree of appraisal system.it should be overcome.11. Superiors response tend
to be bias, which make employees unsatisfied. Thus, a better systemcan be installed.12. Linking,
Findings to the rewards can prove to be unfair. Transparency should be bought inappraisal
system.13..Assesses denies the truth of negative feedback, as it‟s done by one person. More
partiesshould be involved.14. System can be used to humiliate people, if Employer and employee
relations are not good.15. Ignores performance in terms of reaching goals, which can be disastrous
for the organization.Ideally in the present day scenario, appraisal should be done, taking the views of
all theconcerned parties who have some bearing on the employee. But, since a change in the system
isrequired, it cannot be a drastic one. It ought to be gradual and a change in the mindset of both
theemployees and the head is required.

46. Annexure QUESTIONNAIREDisclaimer: Your response via this questionnaire will be used strictly
for academic purposes. There will not be anycommercial solicitation or usage of the response in any
kind / form whatsoever.Q1- How long have you been with Tata Motors? (in Year) a) Below 2 b) 2-5 c)
5-10 d) 10 and aboveQ2- Are you aware of the performance appraisal technique being followed at
Tata Motors? a) Yes b) NoQ3- What is your opinion as to the present appraisal system? a) Fully
satisfied b) Satisfied c) Cant say d) DissatisfiedQ4-What is your perception as to the frequency of
appraisal? a) Once during the service period b) Continuous c) Never d) Cant SayQ5-If continuous
appraisal – what should be the gap between two appraisal period?

47. a) Quarterly b) Half Yearly c) YearlyQ6-Does Performance Appraisal helps in improving the
productivity of the employees? Motivated Indifferent Demotivated + Feedback - Feedback
NeutralQ7-Who in your opinion should appraise the employee? a) Superior b) Peer c) Subordinates
d) Self Appraisal e) Consultant f) All of the aboveQ8- Does the appraisal system helps in polishing the
skills or performance area? a) Yes b) No c) SomewhatQ9-Do you think personal bias creeps in while
appraising an individual? a) Yes b) No

48. Q10-If given a chance or an opportunity would you like that the current appraisal procedure
should be reviewed? a) Yes b) No c) Can‟t SayQ11- What according to you should be the appropriate
method for conducting performance appraisal? a) Rating the employee on number of traits along
with the range of performance for each by the supervisor. b) For every trait, each subordinate is
paired with and compared to every other Subordinate. c) Reviewing employees on the basis of
identified specific examples of good Or poor performance. d) Setting specific measurable goals with
each employee and periodically reviewing the progress made. e) Reviewing performance through
case studies, presentations, role playing, etc. for future performance. f) Receiving feedback from
people whose views are considered helpful and relevant including the appraise himself.Q12- Does
Performance Appraisal leads to identification of hidden potential of the employees? a) Yes b) No

49. BIBLIOGRAPHYhttp://www.oppapers.com/subjects/tata motors-page1.htmlWikipediaEconomic

Timeswww.Scribd.comhttp://www.tatamotors.com/sustainability/CSR-11/pdf/defining-
priorities.pdfwww.citehr.com