\

A STUDY ON THE EFFECTIVENESS OF

PERFORMANCE APPRAISAL WITH SPECIAL
REFERENCE TO AMANA TOYOTA, KANNUR.

DHANUSH M C
2014-2015

CHAPTER1
INTRODUCTION TO THE STUDY

PERFORMANCE APPARAISAL
INTRODUCTION
The study is to find out the EFFECTIVENSS OF PERFPRMANCE APPRAISAL SYSTEM AT
AMANA TOYOTA.To find out this, I have done the survey.

Employee Survey:
For this survey, I have prepared a questionnaire; through this I collected data from Employees.
Sample Size of survey is 100 employees. By analyzing these questionnaires, I find out the
effectiveness of the performance appraisal system and job satisfaction. In this report, I explained
the analysis of questionnaire through graphs and tables.

Scope of study
The Sample Size is Limited, So as to give the accurate information.
The scope is very limited, because attitude & expectations of the people change
According to the time & situation.
Consistency was lacking with regard to the information given by few employees.

Objective of the study

The board objective is to study the PERFORMANCE APPRAISAL SYSTEM
REFERANCE TO AMANA TOYOTA.

Other objective are;

To analyze the effectiveness of performance appraisal system.
To provide suggestion, this may be beneficial to the company in improving the
performance of employee sand to increase their future potential and value to the
company.
To find out the satisfaction level of employees in Amana Toyota.

Research and Methodology

WITH

Research methodology is away to systematically solve the research problem. It may be

understood as a science of studying how research is done scientifically. It means that the way one
researcher select him sample size, methods of data collection, various tools used for studying the
problem with certain objectives.
Research Design
Research design is a comprehensive plan of the series of operation that research intends
to carry out to accomplish the research objectives.
Source of data
Main source of data are primary data and secondary data;
Primary Source
Data come from primary source is called primary data. Primary data from the respondents
that is from employees were collected with the help of structured questionnaire.
Secondary Source
Secondary data refers to the information of facts, which are already available. The source
of secondary data mainly includes company website, employee handbook, journals, magazines
etc. And the data provided from the AMANA TOYOTA is also a source of secondary data.
Area of study
The study has been conducted at AMANA TOYOTA, KANNUR.
Duration of study
The study was carried out on 20-04-2015 to 20-06-2015.
Sample Selection and Size
Samples were collected from employees from different departments from AMANA
TOYOTA, KANNUR. The respondents were met in person and information for the study was
collected. A total of 50 respondents were selected for the study. These person were personally
interviewed and questionnaire given to them.

CHAPTER 2
INDUSTRY PROFILE

AUTOMATIVE INDUSTRY IN INDIA

The automotive industry in India is one of the largest automotive markets in the world. It
had previously been one of the fastest growing markets globally, but is currently experiencing
flat or negative growth rates. India's passenger car and commercial vehicle manufacturing
industry is the sixth largest in the world, with an annual production of more than 3.9 million
units in 2011.[3] According to recent reports, India overtook Brazil to become the sixth largest
passenger vehicle producer in the world (beating such old and new auto makers as Belgium,
United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, and Brazil). Throughout the
course of 2011 and 2012, the industry grew 16-18%, selling around three million units, in 2009;
India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and
Thailand. In 2010, India beat Thailand to become Asia's third largest exporter of passenger cars.
The majority of India's car manufacturing industry is based around three clusters in the
south, west and north. The southern cluster consisting of Chennai is as of 2010, India is home to
40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India
in 2010 (an increase of 33.9%), making the country the second (after China) fastest growing
automobile market in the world in that year. According to the Society of Indian Automobile
Manufacturers, annual vehicle sales are projected to increase to 4 million by 2015, no longer 5
million as previously projected the biggest with 35% of the revenue share. The western hub near
Mumbai and Pune contributes to 33% of the market and the northern cluster around the National
Capital Region contributes 32%.

Chennai, houses the India operations of Ford, Hyundai,

Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Capron, Mini, and Datsun.
Chennai accounts for 60% of the country's automotive exports. Gurgaon and Manesar in Haryana
form the northern cluster where the country's largest car manufacturer, Maruti Suzuki, is based.
The Chakan corridor near Pune, Maharashtra is the western cluster with companies like General
Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land
Rover, Jaguar Cars, Fiat and Force Motors having assembly plants in the area. Nasik has a major
base of Mahindra and Mahindra with a SUV assembly unit and an Engine assembly unit.
Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster. Another
emerging cluster is in the state of Gujarat with manufacturing facility of General Motors in Halol

and further planned for Tata Nano at their plant in Sanand. Ford, Maruti Suzuki and PeugeotCitroen plants are also set to come up in Gujarat. Kolkata with Hindustan Motors, Noida with
Honda and Bangalore with Toyota are some of the other automotive manufacturing regions
around the country.
In 2011, there were 3,695 factories producing automotive parts in all of India. The
average firm made US6 million in annual revenue with profits close to US$400 thousand.
First car on India's roads in 1897. Until the 1930s, cars were imported directly, but in very small
numbers.

The first car showroom in secundarbad

An embryonic automotive industry emerged in India in the 1940s. Hindustan was
launched in 1942, long time competitor Premier in 1944. They built GM and Fiat products
respectively. Mahindra & Mahindra was established by two brothers in 1945, and began
assembly of Jeep CJ-3A utility vehicles. Following the independence, in 1947, the Government
of India and the private sector launched efforts to create an automotive component
manufacturing industry to supply to the automobile industry. In 1953 an import substitution
programmed was launched and the import of fully built-up cars began to be impeded.

The Hindustan Ambassador dominated India's automotive market from the 1960s until the mid80s
However , the growth was relatively slow in the 1950s and 1960s due to nationalization
and the license raj which hampered the Indian private sector. Total restrictions for import of
vehicles were set and after 1970 the automotive industry started to grow, but the growth was
mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury item.
In the 1970s price controls were finally lifted, inserting a competitive element into the
automobile market. By the 1980s, the automobile market was still dominated by Hindustan and
Premier, who sold superannuated products in fairly limited numbers. During the eighties, a few
competitors began to arrive on the scene.
To promote the auto industry the government started the Delhi Auto Expo which was had its
debut showcasing in 1986. The Auto Expo of 1986 was a window for technology transfers
showing how the Indian Automotive Industry was absorbing new technologies and promoting
indigenous research and development for adapting these technologies for the rugged Indian
conditions. The 9 day show was marked by then Prime Minister Gandhi However.

Liberalization
Eventually multinational automakers, such as, though not limited to, Suzuki and Toyota
of Japan and Hyundai of South Korea, were allowed to invest in the Indian market ultimately
leading to the establishment of an automotive industry in India. Maruti Suzuki was the first, and
the most successful of these new entries, and in part the result of government policies to promote
the automotive industry beginning in the 1980s. As India began to liberalize their automobile
market in 1991, a number of foreign firms also initiated joint ventures with existing Indian
companies. The variety of options available to the consumer began to multiply in the nineties,
whereas before there had usually only been one option in each price class. By 2000, there were
12 large automotive companies in the Indian market, most of them offshoots of global companies
Exports were slow to grow. Sales of small numbers of vehicles to tertiary markets and
neighboring countries began early, and in 1987 Maruti Suzuki shipped 480 cars to Europe
(Hungary). After some growth in the mid-nineties, exports once again began to drop as the
outmoded platforms handed down to Indian manufacturers by multinationals were not
competitive. This was not to last and today India manufactures low-priced cars for markets
across the globe. As of 18 March 2013 global brands such as Proton Holdings, PSA Group, Kia,
Mazda, Chrysler, Dodge and Geely Holding Group are shelving plans for India due to the global
economic crisis.
Emission norms
In tune with international standards to reduce vehicular pollution, the central government
unveiled the standards titled 'India 2000' in 2000 with later upgraded guidelines as 'Bharat Stage'.
These standards are quite similar to the more stringent European standards and have been
traditionally implemented in a phased manner, with the latest upgrade getting implemented in 13
cities and later, in the rest of the nation. Delhi(NCR), Mumbai, Kolkata, Chennai, Bangalore,
Hyderabad, Ahmadabad, Pune, Surat, Kanpur, Luck now, Sholapur, and Agra are the 13 cities
where Bharat Stage IV has been imposed while the rest of the nation is still under Bharat Stage

2015 auto industry trends

The worldwide automotive industry has been enjoying a period of relatively strong
growth and profitability, and the annual sales have reached prerecession levels in some regions.
Yet considerable uncertainty about the future remains.
The most immediate challenge is the unevenness of global markets .auto industry executives and
experts tend to be optimistic about the us market, forecasting annualized sales in north America
in the near term of a relatively robust 16 million cars , up from only 13 million in 2008. However
, the outlook in Europe is much weaker as the region is emerging fitfully from a six year sales
slump. And sales have plunged in Russia and south America they were down by about 25
percent and 15 percent respectively n august 2014 year over-year .meanwhile, the

Indian

markets performance has been inconsistent. And growth in china the worlds largest vehicle
market has slowed, even though investments by most original equipment manufacturers
(OEMS), which are betting big of future demand ,continue to ramp up reacting strategically to
these demand shifts will be an absolute priority for industry leaders in 2015.
Against this backdrop of macroeconomic uncertainty , we believe major transitions are
under way that will transform auto manufacturing over the next 10 years .0Ems, suppliers , and
the dealers not only must navigate through these changes in the short-term to build market share
and profitability they also should take steps now to position themselves for success in the next
decades .

Driving change
From the ground level, three powerful forces are rolling the auto industry, shifts n consumer
demand , expanded regulatory requirements for safety and fuel economy , and the increased
availability of data and information,

Shift in consumer demand

Consumers appears to be rethinking their long love affair with the individual automobile
brands and viewing Cars more as transportation machines. although this is not likely to have a
major impact on sales volume , it is affecting how much people are willing to pay for
automobiles .that willingness is also affected by the waning of the product differentiation , due
partly to a general increase in vehicle quality throughout the industry.Major transitions are under
way that will transform auto manufacturing over the next 10 years .
Expanded regulatory requirements
Tighter cooperate average fuel economy (CAF), regulations in the united staes as well as the
rest to the world are more expensive for OEMs to comply with ,requiring high volume to
amortize increasing cost. Regulators are also mandating that more safety related features , such
as backup cameras , be included as standard equipment on new models , adding further to cost .

Increasing availability of data and information

Information about vehicle usage and driver behavior usage is proliferating as sensors and
telemetric systems

become more common. All players across the automotive value chain are

interested in collection more customer and car data, but uncertainty about how to use it is still
widespread. Meanwhile consumers are awash in easily accessible information about automobile
specifications, prices, discounts quality, and performance, giving buyers greater bargaining
power.

CHAPTER 2
COMPANY PROFILE

HISTORY OF TOYOTA

Toyota- History

Toyota founder Kiichiro Toyoda

Replica of the Toyota Model A the first production model of Toyota in 1936

The history of Toyota started in 1933 with the company being a division of Toyoda
Automatic Loom Works devoted to the production of automobiles under the direction of the
founder's son;

Kiichiro Toyoda had traveled to Europe and the United States in 1929 to

investigate automobile production and had begun researching gasoline-powered engines in 1930.
Toyoda Automatic Loom Works was encouraged to develop automobile production by the
Japanese government, which needed domestic vehicle production, due to the war with China In
1934, the division produced its first, which was used in the first Model A1 passenger car in May
1935 and the G1 truck in August 1935. Production of the Model AA passenger car started in
1936. Early vehicles bear a striking resemblance to the Dodge power and Chevrolet, with some
parts actually interchanging with their American originals.
Although the Toyota Group is best known today for its cars, it is still in the textile
business and still makes automatic looms, which are now computerized and electric Sewing
machine which are available worldwide.
Toyota Motor Co. was established as an independent and separate company in 1937.
Although the founding family's name was written in the Kanji (rendered as "Toyoda"), the
company name was changed to a similar word in Katakana (rendered as "Toyota") because the
latter has 8 Stocks which is regarded as a lucky number in East Asian Culture Since Kanji are
essentially Chinese Character , in Chinese speaking markets, the company and its vehicles are
still referred to by the original Kanji name , but with Chinese pronunciation.
During the Pacific war (World War II) the company was dedicated to truck production for
the Imperial Japanese army. Because of severe shortages in Japan , military trucks were kept as
simple as possible. For example, the trucks had only one headlight in the center of the hood. The
war ended shortly before a scheduled Allied bombing run on the Toyota factories in Aichi.
Postwar growth
After World War II, Japan experienced extreme economic difficulty. Commercial passenger car
production started in 1947 with the model SA. The company was on the brink of bankruptcy by
the end of 1949, but the company eventually obtained a loan from a consortium of banks which
stipulated an independent sales operation and elimination of "excess manpower".

In June 1950, the company produced only 300 trucks and was on the verge of going out
of business. The management announced layoffs and wage reductions, and in response the union
went on a strike that lasted two months. The strike was resolved by an agreement that included
layoffs and pay reductions but also the resignation of the president at the time.KiichiroToyoda
was succeeded by Fazio Ishida, who was the chief executive of the Toyoda Automatic Loom
Company.] The first few months of the Korean war resulted in an order of over 5,000 vehicles
from the US military, and the company was revived. Ishida was credited for his focus on
investment in equipment. One example was the construction of the Motomachi Plant in 1959,
which gave Toyota a decisive lead over Nissan during the 1960s.
Global presence
Toyota began to expand in the 1960s with a new research and development facility, a
presence in Thailand was established, the 10 millionth models was produced, a Prize, and
partnerships with Hino Motors and Daihatsu were also established. The first Toyota built outside
Japan was in April 1963, at Melbourne, Australia .From 1963 until 1965, Australia was Toyota's
biggest export market. By the end of the decade, Toyota had established a worldwide presence,
as the company had exported its one-millionth unit. The first Japanese vehicles to arrive in North
America were five Land Cruisers in El Salvador in May 1953.
The first Toyotas sent to Europe were two Toys pet Tiaras sent to Finland for evaluation
in June 1962, but no sales followed. The first European importer was Erla Auto Import A/S of
Denmark, who brought in 190 Crowns following a May 1963 agreement to become the
distributor for Denmark, Norway, and Sweden. The Netherlands followed in May 1964, and after
having established toeholds in countries with little or no indigenous automobile production other
markets followed in 1966. In 1968 Toyota established its first European CKD assembler,
Salvador Caetano I.M.V.T. of Portugal. With high fuel prices and a weak US economy in mid
2008, Toyota reported a double-digit decline in sales for the month of June, similar to figures
reported by the Detroit Big Three. For Toyota, these were attributed mainly to slow sales of its
Tundra pickup, as well as shortages of its fuel-efficient vehicles such as the Prius, Corolla and
Yaris. In response, the company has announced plans to idle its truck plants, while shifting
production at other facilities to manufacture in-demand vehicles.

In January 2010, Toyota suspended sales of eight recalled vehicle models to fix
accelerator pedals with mechanical problems that could cause them to become stuck.

In

December 2012, Toyota announced an agreement worth more than US$1,000 million to settle a
lawsuit involving unintended acceleration in some of its vehicles.
Toyota Motor Corporation

is a Japanese automotive manufacturer headquartered in Toyota,

Aichi, Japan. In 2013 the multinational corporation consisted of 333,498 employees worldwide
and, as of November 2014, is the twelfth-largest company in the world by revenue. Toyota was
the largest automobile manufacturer in 2012 (by production). In July of that year, the company
reported the production of its 200-millionth vehicle. Toyota is the world's first automobile
manufacturer to produce more than 10 million vehicles per year. It did so in 2012 according to
OICA, and in 2013 according to company data. As of July 2014, Toyota was the largest listed
company in Japan by market capitalization Softbank and by revenue.
The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company
Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of
Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first passenger
car, the Toyota AA. Toyota Motor Corporation produces vehicles under 5 brands, including the
Toyota brand, Hino, Lexus, Ranz, and Scion. It also holds a 51.2% stake in Daihatsu, a 16.66%
stake in Fuji Heavy Industries, a 5.9% stake in Isuzu, and a 0.27% stake in Tesla, as well as jointventures with two in China (GAC Toyota and Sichuan FAW Toyota Motor), one in India (Toyota
Kirloskar), one in the Czech Republic (TPCA), along with several "nonautomotive" companies.
TMC is part of the Toyota Group, one of the largest conglomerates in the world .
Corporate governance

Principal headquarters building of Toyota

Toyota is headquartered in Toyota City, Aichi. The main headquarters of Toyota is

located in a three story building in Toyota. As of 2006 the head office has the "Toy pet" Toyota
logo and the words "Toyota Motor". The Toyota Technical Center, a 14-story building, and the
Honsha plant, Toyota's second plant engaging in mass production and formerly named the
Koromo plant, are adjacent to one another in a location near the headquarters. Vinod Jacob from
The Hindu described the main headquarters building as "modest". In 2013 company head Akio
Toyoda reported that it had difficulties retaining foreign employees at the headquarters due to the
lack of amenities in the city.
Its Tokyo office is located in Bunkyo, Tokyo. Its Nagoya office is located in Nakamuraku, Nagoya. In addition to manufacturing automobiles, Toyota provides financial services
through its Toyota Financial Services division, and also builds robots.

Toyota's global network:

Red - Japan
Green - Official dealership(s) present.
Blue - Localized manufacturing plant(s)
Light Blue - Regional headquarters (HQ)
Dark Blue - Regional headquarters (HQ) and localized manufacturing plants
Financial results
In 2011, the Toyota Group (including Daihatsu, Hino and Chinese joint ventures) fell to
place three with 8,050,181 units produced globally. According to an unofficial count, based on
unit production reported by major automakers, Toyota regained its top rank with 9,909,440 units
produced globally in calendar year 2012. On May 8, 2013, Toyota announced plans to produce
10.1 million units in fiscal year 2013, which, if achieved, would make it the first auto
manufacturer to cross the 10-million-unit threshold. On May 8, 2009, Toyota reported a record

annual net loss of US$4.2 billion making it the latest automobile maker to be severely affected
by the global financial crisis that started in 2007. Toyota's financial unit had asked for an
emergency loan from a state-backed lender on March 16, 2009, with reports putting the figure at
more than A$3 billion. It said the international financial situation was squeezing its business,
forcing it to ask for an emergency loan from the Japan Bank for International Cooperation. This
was the first time the state-backed bank has been asked to lend to a Japanese car manufacturer.
On May 8, 2013, Toyota Motor Corporation announced its financial results for the fiscal
year ended March 31, 2013. Net revenues totaled 22.0 trillion (+18.7%). Operating income was
1.32 trillion (+371%), net income 962.1 billion (+239%).
1930s
Toyota was started in 1933 as a division of Toyoda Automatic Loom Works devoted to the
production of automobiles under the direction of the founder's son, Kiichiro Toyoda. Its first
vehicles were the A1 passenger car and the G1 in 1935. The Toyota Motor Co. was established
as an independent company in 1937. In 2008, Toyota's sales surpassed General Motors, making
Toyota number one in the world.

In 1924, Saki chi Toyoda invented the Toyoda Model G Automatic Loom. The principle
of judoka, which means the machine stops itself when a problem occurs, became later a part of
the Toyota Production System. Looms were built on a small production line. In 1929, the patent
for the automatic loom was sold to a British company, generating the starting capital for the
automobile development.

1940s-1950s
From September 1947, Toyota's small-sized vehicles were sold under the name
"Toyopet". The first vehicle sold under this name was the Toyopet SA, but it also included
vehicles such as the Toyopet SB light truck, Toyopet Stout light truck, Toyopet Crown, Toyopet
Master, and the Toyopet Corona. The word "Toyopet (Japanese article)" was a nickname given to
the Toyota SA due to its small size, as the result of a naming contest the Toyota Company
organized in 1947. However, when Toyota eventually entered the American market in 1957 with
the Crown, the name was not well received due to connotations of toys and pets. The name was
soon dropped for the American market, but continued in other markets until the mid-1960s.
1960s-1970s
By the early 1960s, the US had begun placing stiff import tariffs on certain vehicles. The
so-called "chicken tax" of 1964 placed a 25% tax on imported light trucks. In response to the
tariff, Toyota, Nissan Motor Co. and Honda Motor Co. began building plants in the US by the
early 1980s.
1980s

With over 40 million sold, the Corolla is one of the most popular and best selling cars in the
world.Toyota received its first Japanese Quality Control Award at the start of the 1980s and
began participating in a wide variety of motorsports. Due to the 1973 oil crisis, consumers in the
lucrative US market began turning to small cars with better fuel economy. American car
manufacturers had considered small economy cars to be an entry-level product, and their small
vehicles employed a low level of quality to keep the price low.
In 1982, the Toyota Motor Company and Toyota Motor Sales merged into one company, the
Toyota Motor Corporation. Two years later, Toyota entered into a joint venture with General

Motors called the New United Motor Manufacturing, Inc, NUMMI, operating an automobilemanufacturing plant in Fremont, California. The factory was an old General Motors plant that
had been closed for two years. Toyota then started to establish new brands at the end of the
1980s, with the launch of their luxury division Lexus in 1989.
1990s
In the 1990s, Toyota began to branch out from producing mostly compact cars by adding many
larger and more luxurious vehicles to its lineup, including a full-sized pickup, the T100 (and later
the Tundra); several lines of SUVs; a sport version of the Camry, known as the Camry Solara;
and the Scion brand, a group of several affordable, yet sporty, automobiles targeted specifically
to young adults. Toyota also began production of the world's best-selling hybrid car, the Prius, in
1997.
With a major presence in Europe, due to the success of Toyota Team Europe, the corporation
decided to set up Toyota Motor Europe Marketing and Engineering, TMME, to help market
vehicles in the continent. Two years later, Toyota set up a base in the United Kingdom, TMUK,
as the company's cars had become very popular among British drivers. Bases in Indiana,
Virginia, and Tianjin were also set up. In 1999, the company decided to list itself on the New
York and London Stock Exchanges.
2000s
In 2001, Toyota's Toyo Trust and Banking merged with two other banks to form UFJ Bank,
which was accused of corruption by Japan's government for making bad loans to alleged Yakuza
crime syndicates with executives accused of blocking Financial Service Agency inspections.[35]
The UFJ was listed among Fortune Magazine's largest money-losing corporations in the world,
with Toyota's chairman serving as a director. At the time, the UFJ was one of the largest
shareholders of Toyota. As a result of Japan's banking crisis, UFJ merged with the Bank of
Tokyo-Mitsubishi to become the Mitsubishi UFJ Financial Group.
In 2002, Toyota managed to enter a Formula One works team and establish joint ventures with
French motoring companies Citron and Peugeot a year after Toyota started producing cars in

France.Toyota ranked eighth on Forbes 2000 list of the world's leading companies for the year
2005but slid to 55 for 2011. The company was number one in global automobile sales for the
first quarter of 2008.
In 2007, Toyota released an update of its full-sized truck, the Tundra, produced in two American
factories, one in Texas and one in Indiana. Motor Trend named the Tundra "Truck of the Year",
and the 2007 Toyota Camry "Car of the Year" for 2007. It also began the construction of two new
factories, one to build the RAV4 in Woodstock, Ontario, Canada, and the other to build the
Toyota Prius in Blue Springs, Mississippi, USA. This plant was originally intended to build the
Toyota Highlander, but Toyota decided to use the plant in Princeton, Indiana, USA, instead. The
company has also found recent success with its smaller modelsthe Corolla and Yarisas
gasoline prices have risen rapidly in the last few years.
2010s
In 2011, Toyota, along with large parts of the Japanese automotive industry, suffered
from a series of natural disasters. The 2011 Tahoku earthquake and tsunami led to a severe
disruption of the supplier base and a drop in production and exports. Severe flooding during the
2011 monsoon season in Thailand affected Japanese automakers that had chosen Thailand as a
production base. Toyota is estimated to have lost production of 150,000 units to the tsunami and
production of 240,000 units to the floods.
The automaker narrowly topped global sales for the first half of 2014, selling 5.1 million
vehicles in the six months ending June 30, 2014, and an increase of 3.8% on the same period the
previous year. Volkswagen AG, which recorded sales of 5.07 million vehicles, was close behind.
In August 2014, Toyota announced it would be cutting its spare-parts prices in China by up to
35%. The company admitted the move was in response to a probe foreshadowed earlier in the
month by China's National Development and Reform Commission of Toyota's Lexus spare-par
policies, as part of an industry-wide investigation into what the Chinese regulator considers
exorbitantly high prices being charged by automakers for spare parts and after-sales servicing.

Recalls
From November 2009 through 2010, Toyota recalled more than 9 million cars and trucks
window switches, the largest recall since that of Ford Motor Company in 1996. The move came
after a series of recalls between 2009 and 2011 in which it pulled back around 10 million cars
amidst claims of faulty mechanics. In March 2014, Toyota agreed to pay a fine of US$1.2 billion
for concealing information and misleading the public about the safety issues behind the recalls
on Toyota and Lexus vehicles affected by unintended worldwide in several recall campaigns, and
briefly halted production and sales . Toyota initiated the recalls, the first two with the assistance
of the U.S. National Highway Traffic Safety Administration (NHTSA), after reports that several
vehicles experienced unintended acceleration.
2012
In October 2012, Toyota announced a recall of 7.43 million vehicles worldwide to fix
malfunctioning power acceleration.
2014
In early November of 2014, Toyota USA enlisted a recall involving defective inflaters
and propellant devices that may deploy improperly in the event of a crash, shooting metal
fragments into vehicle occupants. More than 7 million vehicles are potentially affected in the
United States. This recall only effects vehicles equipped with Takata airbags released after the
year 2000 in North America. The airbags were manufactured by Takata automotive
manufacturing. Toyota is offering a free repair to all effected vehicles worldwide. The fault in the
Takata air bags also affected other North American automobile manufacturers.

TOYOTA COMPANY IN INDIA

Toyota company in India is relatively a newcomer and started its venture in Indian
markets in 1997, when it started

a joint venture with kirlosakar group. this joint venture was

named as Toyota kirloskar motor private ltd and has in fact led to the establishment of a
manufacturing plant in Ramanagra district of Karnataka state. It was further strengthened with
establishment of Toyota kirloskar auto parts private ltd in 2002.currently,nine models of Toyota
belonging to various segments are under production. Toyota company is involved in various
social initiatives and has established centers for technical education in India.

Toyota manufacturing facilities

Toyota kirloskar motor private limited has established its manufacturing plant in bidadi, which is
very near to capital of the state of Karnataka ,Bangalore. As per Toyota company profile, the
facility is spread over an area of 432 acres and employees more than 4900 workers till date .
some of the cars like camry and prius are imported as completely built units , while others are
manufactured completely at plant .with the launch of new vehicles like etios and etios liva
Toyota company has experienced a steep rise in demand is expected to boost up production,
which currently stands at 80000units per year.
Toyota vehicle models
As per Toyota profile , company currently brings Land Cruiser , Prius, Camry,and Pradp as
completely built units from its overseas plants , while other models like Fortuner , Etios liva,
Etios , Corolla Altis and Innova are manufactured in India.

COMPANY PROFILE

AMANA TOYOTA COMPANY PROFILE

Brief history of Amana Toyota

Amana Toyota, VPK Motors (P) Ltd, exclusive dealership globally renowed.Toyota was
started on 11th May 2006 under the dynamic leadership of Mr.V.P.K Abdullah at Thottada
Kannur.
It was the vision of management and the relentless efforts put in by the committed
employees that enable in the organization to distinguish itself in the region. The management has
plans to strengthen the operations and magnify the customer service goals in order to ensure that
each customers unique needs are addressed to their utmost satisfaction. The head quarter of
Amana Toyota, located at Calicut includes top management and other professionals from various
functions such as sale. Customer service, finance, general administration, etc.
Amana Toyota employees, partners in its success, vigorously uphold its mission
statement for every assignment. Its customers have responded tremendously to its commitment
and their support has enabled Amana Toyota offer unmatched service in six major districts across
Kerala with the entire staff of Amana sharing the version of distinctive quality and unparallel
service, undoubtedly, they are surging ahead of greater success.

2 Mission of Amana Toyota

"Setting New Standards in Customer Service"
This is the mission statement set by Amana Toyota placing customer satisfaction first, Integrating
sales with service and service parts in a single convenient location; we contribute to speedy and
efficient service, allowing customers to experience the convinces and pleasure of owning Toyota
automobile.

GOALS, VALUE AND HISTORY OF AMANA TOYOTA

The Goal of Amana Toyota is simple to provide extra ordinary customer service. They
accomplish this by taking the task and responsibities wholeheartedly. The dedicated and
competent personnel of the organization with their proven expertise are bent on delivering the
finest quality of customer service. Truly, the organization goals are accomplished through the
commitment of every employee, irrespective of the nature of the work he is entrusted to fulfill.
The management treats employee with respect and gives them an opportunity for input on how to
continually improve the sale/service goals. It is the duty and responsibility of the organization to
treat each employee fairly with mutual respect.
The company does not to tolerate discrimination of any kind are encourage all managers
and supervisors to involve employee in problems arise, the fact should be analyzed to determine
ways to avoid similar problems in future.Provide the most effective and efficient corrective
action, to resolve customer service issue, to customer satisfaction and that the problem not to be
repeated future.Foster an open door policy, which encourages interaction, discussion and ideas to
improve the environment, thus increase the productivity.Deliver competitive, impeccable service
to customers and ensure acceptance of its mission.Make Do It Right the First Time as a slogan
of its commitment and way of doing business. This commitment will ensure continued growth
and prosperity.
The strive and maintain its leadership position in the industry through continuous efforts
and unflinching dedication.

Different operation sections of Amana Toyota

General administration department

Sales department
Customer service department
EDP department
Maintenance department
Customer relation department

ORGANIZATIONAL CHART
CHAIRMAN

MANAGING DIRECTOR

DIRECTOR

CUSTOMER SERVICE
DEPARTMENT

SALES
DEPARTMENT

HR &GENERAL
ADMINISTRATION
DEPARTMENT

SERVICE
MANAGER

SALES MANAGER

HR MANAGER

SPARES SECTION
MANGER

SALES EXECUTIVE

FINANCE
DEPARTMENT

FINANCE
MANAGER

HR EXEXUTIVES

SHOP FOREMAN &

TECHNICIAN

Details
of Amana Toyota VPK Motors PVT Ltd
TECHNICIANS

ACCOUNTANT

Name of the organization

Amana Toyota VPK Motors (p) Ltd

Location

Thottada. P. O
Kannur-670007

Telephone

0497 3000333
0497 2835577

Fax

0495 3000399

E-Mail

vpkmotors@sify.com

Visit us

www.amana Toyota.com

Inauguration

21st May 2006

Products

Toyota Camry, Corolla, Innova, LC Prado, Spare parts

And Services.

No. of Employee

Total Capitalization

Product profile

213
Five Cores

Amana Toyota and esteemed institution in Malabar region deals with luxury motor car of
Toyota kirloskar motor Limited such as Toyota, Corolla, Camry, Innova and LC Prado. They also
have spare parts of these vehicles and provide quality services. Thus the products of Amana
Toyota comprise 3S, that is, Sales, Service and Spare.

SALES
The sales of Amana Toyota include the selling of

ETIOS LIVA
ETIOS
ETIOS CROSS
COROLLA ALTIS
FORTUNER
CAMRY
PRIUS
LAND CRUSIER PRADO

Brief descriptions of these vehicles are given below

ETIOS LIVA
Etios Liva is a Q Class Hatch, which was launched in June 2011. This car, which is
available in seven dynamic colors and four variants, is powered by a 4 cylinder 16 valve, 1197cc
BS-IV compliant engine that provides a mileage of 18.31 kmpl.

The Toyota etios liva is one

of the most spacious and comfortable cars in its segment. The dual tone interior feels bright , but
material quality isnt impressive. the hatchback The Toyota Etios Liva is one of the most
spacious and comfortable cars in its segment. The dual tone interior feels bright, but material
quality isnt impressive. The hatchback feels comfortable and convenient from inside, though it
lacks some vital features. The engine is frugal, but in terms of power and performance it fails to
make an impact. The handling is predictable, and ride quality is decent. The driving dynamics
isnt impressive, especially in city.
ETIOS

Launched in December 2010, Ethos is a B segment compact sedan. The car in six vibrant
colors and four variants is powered by a 1.5L, 16 valve DOHC BS-IV compliant engine that has
fuel economy of 17.6 kmpl of petrol. Toyota Etios is an entry level sedan that is available with
diesel and petrol engine options in seven trims. Along with attractive looks, its defining
characteristics are excellent fuel economy, class-leading comfort features, smooth handling and
great performance, which makes it a high selling model in the B segment. It won Sub-Compact
Sedan of the Year (NDTV Car & Bike Awards 2011), Car of the Year and Mid Size Car of the
Year (Over Drive CNBC TV 18 Awards 2011) and Saloon Car of the Year (Bloomberg UTV
Auto Car Award 2011) awards when it was launched.

ETIOS CROSS
The crossover market is new to the Indian consumers and in given time it is expected to
gain some pace. The arrival of Toyota Etios Cross will certainly provide a good purchasing
option to prospective buyers as well as the company's vast fan following. In the price bracket of
Rs. 5.76 lakh Rs. 7.42 lakh, the car is packed with all the necessary and modern features, which
can tempt the customers to a great extent. The diesel engine has the fuel efficiency factor,
whereas, the petrol mills also don't lag behind in terms of mileage. The unconventional looks of
Toyota Etios Cross might take some time to gain plaudits from all auto connoisseurs but in the
given time, the car has the ability to become a decent road performer.

INNOVA
Innova with its launch in February 2005 created a new segment in Indian automobile
space. The car is claimed to be India's first 3-row seating passenger luxury vehicle and remains
one of the highest selling vehicle from the company. This Toyota company car is available in
both petrol and diesel engine variants. In 2009, the CNG variants of Innova were also launched.
Toyota Innova has been the segment leader and is aiming to continue its joyful ride in the Indian
car market. With subtle changes to exterior and interior, the Innova looks attractive. Ease of
driving, high end features like reverse parking camera, chrome embellishments across the model

are few of its positive points. Well, it has to be a six-seated MPV, but keeping Indian buyers taste
in mind, the company opts for a seven and eight seat options.

COROLA ALTIS
An executive class sedan Corolla Altis has gone through minor facelifts since its launch
in 2003. A CNG variant of this car was launched in 2010 and latest of these launches occurred in
June 2011. This Toyota company car is available in petrol and diesel engine variants
Toyota Corolla Altis is an Executive sedan that is available in India in four petrol and three diesel
variants. This car is favored by buyers due to classy and elegant looks and a host of luxury
features, and is one of the highest selling models in its segment. In the Subros Car & Bike
Awards 2011, the diesel motor of Corolla Altis was judged as the Engine of the Year.

FORTUNER
Toyota Company in India launched Fortuner in August 2009. This Toyota company car is
an ultimate sports utility vehicle equipped with a 3L D-4D diesel engine and intercooler
turbocharger. Toyota Fortuner is a premium Sports Utility Vehicle (SUV) that is best known in
the country for its aggressive looks, high end luxury amenities, tremendous off-roading
capabilities and excellent ride quality. This car is available in the domestic market in 3 variants
(4WD manual, 2WD manual, 2WD automatic), with a single diesel engine option.

CAMRY
Toyota Camry has been available in India from the very beginning and has gone through
subsequent re-launches in 2005 and 2009. The 2.4 Liter 4-Cylinder VVT-I BS-IV compliant
engines, introduced for the first time in 2005 version are still continued. This premium segment
sedan is available in both manual and automatic five speed transmissions.

Toyota Camry is the luxury sedan from the Japanese auto major Toyota. Brought as a CBU in
India, the sedan carries a high price tag. However, its features justify its price to a great extent.
The sedan comes in only petrol variant in the country and in both automatic and manual
transmission options. Its sophisticated looks and classy interior makes it a premium class sedan.
Top gear awarded Toyota Camry as the best designed car of the year.
PRIUS
Toyota's acclaimed Third Generation Prius was launched in India in January 2010. This
hybrid electric car from Toyota Company in India was displayed for the first time at Auto Expo
2010 in New Delhi. Toyota New Prius is the perfect answer to the growing environmental
concerns of Indian consumers. Equipped with an electrically controlled continuously variable
transmission system, it runs on a motor that is powered by battery as well as petrol. This model
won Ista Green Award (NDTV Car & Bike Awards 2011), Green Technology of the Year
(Suborns Car & Bike India Awards 2011), Green Award of the Year (Over Drive CNBC TV 18
Awards 2011 and Bloomberg UTV Auto Car Award 2011), The Green Steering Wheel 2010
(Auto Bild), Green Car of the Year (ET Zigwheels Awards 2010).

LAND CRUISER PRADO

Toyota Land Cruiser Prado is a luxury Sports Utility Vehicle (SUV) that comes with a
diesel engine option with 4WD mechanism in India. This model is known for its body-on-frame
construction, a host of high end comfort and convenience features and unmatched capability to
tackle the roughest of terrains with utmost ease. It was the recipient of the Best Import Car of the
Year award by Business Standard Motoring in 2004.Toyota Company in India introduced Land
Cruiser Prado in November 2004. It was company's fourth major launch after Corolla, Qualis
and Camry. Like the Camry, Land Cruiser Prado was imported in India as a completely built unit.
The stylish sports utility vehicle is powered by a giant 2982cc, 16 Valve DOHC, D4-D Diesel
Engine with Intercooler Turbocharger. The vehicle has 18 inch tubeless radial tires with all time
four wheel drive, 5-speed manual transmission and includes ventilated disc brakes with ABS and
EBD. It has an unending list of comfort, security and advanced technical features that make it an
ultimate all terrain luxury sports vehicle.

Toyota Land Cruiser Prado is a luxury Sports Utility Vehicle (SUV) that comes with a diesel
engine option with 4WD mechanism in India. This model is known for its body-on-frame
construction, a host of high end comfort and convenience features and unmatched capability to
tackle the roughest of terrains with utmost ease. It was the recipient of the Best Import Car of the
Year award by Business Standard Motoring in 2004.
TOYOTA LAND CRUISER
Toyota Land Cruiser 200 is the top-of-the-line luxury Sports Utility Vehicle offered by the
Japanese car maker in India. The unmatched performance of the model is centered on its huge
4.5 L engine, full time 4WD system, TEMS suspension and 6 speed automatic transmission
systems. It excellent performance makes it the ideal vehicle to tackle adverse terrains, ranging
from forests to mountains, with utmost ease.
TOYOTA MATRIX
The 2003 Toyota matrix is a street performer that combines versatility and styling in a truly
affordable package.
MR 2 SPYDER
Toyotas MR 2 Spyder has a mid mounted OOCHC VVT-I engine. The softtop MR 2Spyder
delivers genuine wind in your hair sport car performance.
TOYOTA SEQUOIA
Toyotas full size V8 sequoia seats up to the eight and boasts enough cargo capacity, and cup
holders to make all eight happy. Given its size and structure, the sequoia is sure to exceed
customer expectations.
TOYOTA 4 RUNNER
Larger, more powerful and more capable, the completely redesigned 2003 4 Runner is
engineered to follow in the footsteps of worlds great adventures.

TUNDRA REGULAR CAB

The Toyota Tundra regular Cab offer a powerful double overhead Cam (DOHC) 32
Valve I FORCE V8. It is the truck other full size pickups want to be.
TUNDRA ACCESS CAB
Toyota start with the power of regular cab, add two doors and luxuries like front fabric
captains chairs.
TOYOTA PUIRS
The vehicle is powered by the Toyota hybrid system (THS), prius combines a super
efficient gasoline engine with a powerful; electronic motor and prius recharges itself while its
being driven.

REVIEW AND LITERATURE

INTODUCTION TO PERFORMANCE APPRAISAL

ABSTRATCT
Performance appraisal has been considered as the most significant and indispensable tool
for an organization, for the information it provides is highly useful in making decisions regarding
various personnel aspects such as promotion and merit increases. Performance measures also
link information gathering and decision making process which provide a basis for judging the
effectiveness of personnel sub divisions such as recruiting, selection , training and compensation.
The major objective of the study is to study the existing performance appraisal system being
undertaken in Amana Toyota thottada, and to know the perception of employees& effectiveness
of the existing system of performance appraisal and to know the level of satisfaction of
employees.
Introduction
Appraising the performance of the individual, group and organization is a common
practice of all societies.while, in some instance these appraisal process are structured and
formally sanctioned , in other instances they are integral and informal part of daily activities..The
teacher evaluates the performance of student, banker evaluates the performance of creditors ,
parents evaluate the performance of their children and all f us consciously or unconsciously
evaluate our action fro, time to time. In mall interaction performance evaluation is domain a
haphazard an often unsystematic way. but in the organization formal programs of evaluating
employees and managerial performance conducted in a systematic and planned manner have
achieved popularity in recent years .
During and after world war 1the systematic performance appraisal was quite prominent.
Credit goes to Walter dill Scott for systematic performance appraisal technique of man to man
rating system (or merit rating ). It was used for evaluating military officers. Industrial concerns
also use this system during 1920s and 1940s for evaluating hourly paid workers . however with
the increase of training and management development programmes from 1950s management
started adopting performance appraisal for evaluating technical , skilled , professional and
managerial personnel as a part of training and managerial development programs . with this
evolutionary process , the term merit rating have been changed into employee appraisal or

performance appraisal .this is not mere change in the term but a change I the scope of activity
as the emphasis of merit rating was limited to personnel traits , whereas performance appraisal
covers result , accomplishment

and performance .therefore performance appraisal enables

employee to get incentive treatment according to their potential , sincerity and capabilities .
They get motivated by which , performance appraisal benefits not only employee but
also the management in the form of greater productive efficiency . therefore , performance
appraisal , employee appraisal , performance review or ( career) development discussion is a
method by which the job performance of an employer is evaluated generally in the terms of
quality quantity , cost and time typically by the corresponding manager or supervisor .
A performance appraisal is a a part of guiding and managing career development.It is the
process of obtaining , analyzing

and recording information about the relative worth of

employees to the organization.

Performance appraisal is an analysis of an employees recent successes and failures, personal
strength and weakness, and suitability of promotion or future training. it is also the judgment of
employees performance in a job based considerations other than productivity alone . Generally,
the aim of the performance appraisal is

Give employees feedback on performance

Identify employee training needs
Document criteria used to allocate organizational rewards
Form a basis for personnel decisions; salary increases promotions, disciplinary actions,

bonus etc.
Provide opportunities for organization diagnosis and development
Facilitate communication between employee and employer
Validate selection techniques and human resource policies to meet federal equal
employment opportunity requirements.
To improve performance through counseling, coaching ad development.

Popular methods used in performance appraisal

Self appraisal
Merit rate appraisal system
Management by objectives

360 degree appraisal.

Behavioral observation scale
Behaviorally anchored rating scale

Trait based system which rely on factors such as integrity and consciousness are also
used by businesses but have replaced primarily by more objective and result oriented methods
.the scientific literature of the subject provides evidence that accessing employees on factors
such

as these should be avoided.

Performance appraisal continues to be subject matter of interest and importance to human

resource specialists. for decades ,performance appraisal has received considerable attention in
the literature ,from both researchers and practitioners alike .many others (Bernardin &klatt,1985
Posner Hardener 1989;maroney and Buckley 1992;Thomas &Bretz 1994)maintain that there is a
considerable gap between theory and practice , and that human resource specialists are not
making full use of the psychometric tools available . to support their claim these authors cite
surveys of practitioners concerning current performance appraisal method and use . Nearly 2
decades ago , Taylor and Zawacki (1976)published the first of two articles that documented
trends in performance appraisal usage among us organization . when comparing the results of
two surveys taken 5 years apart , the authors noted a remarkable shift away from what they
called collaborative approaches (e.g. MBO. BARS ) and toward the more traditional
performance

appraisal techniques (graphic rating scales )Taylor and Zawacki (1984)

hypothesized that managers , responding to tne legal constraints prevalent in 1980s preferred
techniques that were defensible in court .accordingly managers tended to be more satisfied
with the objective traditional approaches ,whereas their subordinates seemed to prefer the
developmental collaborative methods thought the 1980s , researchers continued to document
performance appraisal practice . Bernadin and Klatt (1985)noted that the small firms tended to
rely heavily on trait based approaches ,while larger firms relied on a combination of trait ,
behavioral and results based technique . they noted

that one in five organizations did not

give employees the opportunity to review the performance appraisal results .

In other study , Locher and Leel (1988) identified graphic rating scales(57.1%), open
ended essay (21.3%) and management by objectives (18.1%) as the most popular performance
appraisal techniques .unlike Taylor and Zawacki(1984)before them Locher and Teel identified a
trend towards the use of MBO as a popular technique . besides recording current trends in

methods used, only a few researchers have clarified how performance appraisal data is used. they
identifies the main developmental uses as improving work performance ,communicating
expectations, determining employee potential and aiding employee counseling.
Performance appraisal is the systematic evaluation of the individual with regard to his
or her performance on the job and their potential for development. BEACH
According to DALE YODGER performance appraisal to all formal procedures aimed working
organization to evaluate personalities and contribution of one potential group members.
EDWIN B FLIPPO, defined the term performance appraisal as a systematic , periodic and so
far homely possible , an impartial rating of an employees excellence in matters pertaining to his
present to his present job and his personalities for a better job.
According to JOHN A SHUBIN defined as merit rating is a systematic appraisal of the
employees personality and performance on the job and is designed to determine his contribution
and relative worth to the firm.
In the words of L A LARKIN, performance appraisal is the systematic assessment by
merit factors of the behavior and/or ability of workers in their work and a means whereby each
worker may be rewarded a percentage in addition to his wage according to his assessed merit
value .
ALFORD AND BEATTY, says it is the evaluation or appraisal of the relative worth to the
company of am mans service on job .

FLIPPER says , performance appraisal is a systematic , periodic and so far as humanly

possible and impartial rating of employees excellence of matters pertaining to his potentialities
for a better job .
Performance appraisal has been defined in many ways .the simplest way to understand
the meaning the meaning of performance appraisal is as follows ; a regular and continuous
evaluation of quality , quantity and style of the performance along with the assessment of the

factors influencing the performance and behavior of an individuals called performance

appraisal.
Cleveland, Murphy and Williams (1989) argued that there is relation between organizational
characteristics and the uses of a performance appraisal system stonich (1984) also argued that
performance measurement in an organization should be in tune with its structure and culture .
since the nature of the enterprise in which each industry is engaged varies , its organizational
type business policy internal and external environment are also usually different .
Apart from organizational control .ilgen ,barnes Farrell,and mc kellin (1993) concluded
, from their extensive review of literature since 1980s about performance appraisal , that there
are four aspects that need to be considered . in practice performance appraisal systems covers a
wide range of these aspects and seldom have exactly the same nature and functions . in order to
integrate findings in the area . chu (2002) proposed a comprehensive framework including 6
categories namely appraisal purposes , appraisal personnel, appraisal criteria , appraisal
methods , appraisal timings and appraisal feedback .
Performance appraisal and job satisfaction
Different theories may help to understand the relation between performance
appraisal and job satisfaction..Research in cognitive psychology shows that measurable and
challenging goals help to align individuals and companies goals leading to higher levels of
motivation and hence,employeess work effort .furthermore ,goal setting theory implies that the
level of goal achievement is closely related to employee satisfaction . frequently organizations
link goal achievement to remuneration system such as performance related pay .studies have
shown that performance related pay is associated with high levels of overall job satisfaction
(Heywood &wei,2006),( Green &Heywood 2008) in a recent paper Bryson (2012)empirically
investigate the relation between piece rate , team incentive and or profit sharing schemes and
job satisfaction and show that workers under PRP scheme are more satisfied with their job ,
controlling for wage levels as well as individual ,business and country fixed affects .
Research has broadly analyzed the impact thof the social context of performance
appraisals or employee reaction to these appraisals (Levy &William (2004) (Pichler 2012)

One dimension focuses on the rate relationship comprising topics such as supervisors
support ,

trust , rating accuracy ,and reliability as a precondition for the acceptance and

usefulness of formal appraisal systems . Rating situations, which are very prominent in the
organization (Kane, 1995) , lead to less acceptance among employees

and decrease the

economic incentives to provide effort (Prendergast & Topel, 1996). These rating distortions may
have any different reasons including strategic incentives of the raters such as favoritisms or
punishment, (Poon , 2004) or interpersonal motives .
Furthermore, it has been shown that raters personality traits influence overall rating
decisions (Kryzystofiak , 1988). Other contextual factors include instance , employees
satisfaction with the PA process as a whole , the performance appraisal feedback or employee
evaluation of the perceived quality , justice , fairness of the performance appraisal regime
( Green berg 1996). Furthermore employee participation in PA process is positively related to the
satisfaction with the PA system, perceived fairness and acceptance of such a practice

USES OF PERFORMANCE APRAISAL SYSTEM

Performance improvement. Performance feedback allows the employee, managers,

personal specialists to intervene with appropriate action to improve performance .

Compensation adjustment: performance evaluation help the decision makers determine

who should receive pay raises.

Placement decisions: promotion, transfers

anticipated uses.
Career planning and development.
Staffing process deficiencies.
Informational in accuracies.
Job design and error s- poor performance may be a symptom of ill- conceived job design.
Equal employment opportunity.
External challenges.
Feedback to human resources.

and demotions are usually based on part or

PROBLEMS OF PERFORMANCE APPRAISAL

Rating bias
Failures of superior in conducting performance appraisal interview .
Most part of the performance is based on the subjectivity.
Less reliability and validity of the performance appraisal techniques.

ERRORS IN PERFORMANCE APPRAISAL

The halo effect or event .

Leniency or constant errors.
The centre tendency problem.
Similarity error .
Miscellaneous biases.