INTRODUCTION

WHAT IS "PERFORMANCE APPRAISAL"

Performance Appraisal is defined as the process of assessing the performance and
progress of an employee or a group of employee. on a given job and his / their potential
for future development. It consists of all formal procedures used in working organizations
and potential of employees. According to Flippo, "Performance Appraisal is the
systematic, periodic and an important rating of an employee's excellence in matters
pertaining to his present job and his potential for a better job."

CHARACTERISTICS
1. Performance Appraisal is a process.
2. It is the systematic examination of the strengths and wellnes. 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.

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

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 3. Negative approach
4. Multiple objectives
5. Lack of knowledge

1. PERFORMANCE APPRAISAL:-

Performance appraisal, also known as employee appraisal, is a method by which the

job performance of an employee is evaluated (generally in terms of quality, quantity, cost and
time). Performance appraisal is a part of career development. Performance appraisals are
regular reviews of employee performance with in organizations Generally, the aims of a
performance appraisal are to:1) Give feedback on performance to employees.2) Identify
employee training needs.3) Document criteria used to allocate organizational rewards.4)
Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, etc.5)
Provide the opportunity for organizational diagnosis and development.6) Facilitate
communication between employee and administrator.7) Validate selection techniques and
human resource policies to meet federal Equal Employment Opportunity requirements. A
common approach to assessing performance is to use a numerical or scalar rating system
whereby managers are asked to score an individual against a number of objectives/attributes.
In some companies, employees receive assessments from their manager, peers, subordinates
and customers while also performing a self assessment. This is known as 360° appraisal. The
most popular methods that are being used as performance appraisal process are:1)
Management by objectives2) 360 degree appraisal3) Behavioral Observation Scale4)
Behaviorally Anchored Rating Scale Trait based systems, which rely on factors such as
integrity and conscientiousness, are also commonly used by businesses. The scientific
literature on the subject provides evidence that assessing employees on factors such as these
should be avoided. The reasons for this are two-fold:1) Because trait based systems are
by definition based on personality traits, they make it difficult for a manager to provide
feedback that can cause positive change in employee performance2) Trait based systems,
because they are vague, are more easily influenced by office politics, causing them to be less
reliable as a source of information on an employee's true performance.

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Effective performance appraisal

A tricky issue facing most organizations is the carrying out of effective and fair
performance appraisal. Far too often companies find that many employees are left grumbling
about “unfairness” and bias. While first accepting that there is probably no system which is
close top effect, let us look at some key criteria that an appraisal system must satisfy. At a
macro-level, the aim of the performance appraisal from the company’s point of view cannot
be to just determine increments or promotions. Yes that is how it affects the individuals, but it
cannot be the organization’s aim. The organization’s aim has to be to put in place a system
that actually improves performance.

The Purpose of Performance Appraisals

A performance appraisal (PA) or performance evaluation is a systematic and

periodic process that assesses an individual employee’s job performance and productivity, in
relation to certain pre-established criteria and organizational objectives. Other aspects of
individual employees are considered as well, such as organizational citizenship behavior,
accomplishments, potential for future improvement, strengths, and weaknesses. A PA is
typically conducted annually. However, the frequency of an evaluation, and policies
concerning them, varies widely from workplace to workplace. Sometimes an evaluation will
be given to a new employee when a probationary period ends, after which they may be
conducted on a regular basis (such as every year). Usually, the employee’s supervisor (and
frequently, a more senior manager) is responsible for evaluating the employee, and he or she
does so by scheduling a private conference to discuss the evaluation. The interview functions
as a way of providing feedback to employees, counseling and developing employees, and
conveying and discussing compensation, job status, or disciplinary decisions.

Historically, performance appraisals have been used by companies for a range of

purposes, including salary recommendations, promotion and layoff decisions, and training
recommendations. In general, “performance elements tell employees what they have to do,
and standards tell them how well they have to do it.” This broad definition, however, can
allow for appraisals to be ineffective, even detrimental, to employee performance. “Second
only to firing an employee, managers cite performance appraisal as the task they dislike the
most,” and employees generally have a similar feeling. One key item that is often forgotten

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during the appraisal process (by managers and employees alike) is that the appraisal is for
improvement, not blame or harsh criticism.

Developing an Appropriate Appraisal Process

One significant problem in creating an appraisal process is that no single performance
appraisal method will be perfect for every organization. Establishing an appropriate process
involves significant planning and analysis in order to provide quality feedback to the
employee. The most crucial task in the process is determining proper job dimensions that can
be used to evaluate the employee against accepted standards that affect the performance of
the team, business unit, or company. Peter Drucker developed a method termed
“Management by Objectives,” or MBO, in order to address the need for specifying such
job dimensions. Drucker suggests that objectives for any employee can be validated if they
pass the following SMART test:
 Specific
 Measurable
 Achievable
 Realistic
 Time-related

The process of an evaluation typically includes one or more of the following:

 An assessment of how well the employee is doing. Sometimes this includes a scale
rating indicating strengths and weaknesses in key areas (e.g., ability to
follow instructions, complete work on time, and work with others effectively). It’s also
common for the supervisor and manager to discuss and determine the key areas.
 Employee goals with a deadline. Sometimes the employee may voluntarily offer a goal,
while at other times it will be set by his or her boss. A significantly underperforming
employee may be given a performance improvement plan, which details specific goals
that must be met to keep the job.
 Feedback from coworkers and supervisors. The employee may also have the chance to
share feelings, concerns, and suggestions about the workplace.
 Details about workplace standing, promotions, and pay raises. Sometimes an employee
who has performed very well since the last review period may get an increase in pay or
be promoted to a more prestigious position.

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INTRODUCTION TO HUMAN RESOURCE MANAGEMENT
Human Resource (or personnel) in an ageinent, in the sense of getting things done
through people. is an essential part of every manager's responsibility, but many organizations
find it advantageous to establish a specialist division to provide an expert service dedicated to
ensuring that the human resource function is performed efficiently.
"People are our most valuable asset" is a cliche, which no member of any senior
management team would disagree with. Yet. The reality for many organizations is that their
people remain undervalued, under trained and underutilized.
The market place for talented, skilled people is competitive and expensive. Taking on new
staff can be disruptive to existing employees. Also, it take 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 posse. the
requisite qualifications, training and experience required.

Indu.Ion
Induction is the technique by which a new employee is rehabilitated into the changed
Surroundings and introduced to the practices, policies and purpose. of the organization.

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2. OBJECTIVES OF PERFORMANCE APPRISAL:

 Identification of the technique of performance appraisal followed in Sky automobiles.

 Employee attitude towards the present appraisal system.
 Review of the current appraisal system in order to :
1. Enhence productivity.
2. Attain global standards.
 To provide the suggestion and recommendations from the study conducted.
 To effect promotions based on competence and performance.

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 PROFILE HISTORY

1. INTRODUCTION OF MARUTI SUZUKI:-

Let us now look at the specific criteria for the system.

The first step must be to understand clearly what is expected from each employee /
position in the organization. And this must be done well before appraisal time, even before
the appraisal year starts, in fact. For instance, if the job of the Corporate Communications
manager is tone sure that all mass communication about the brands and about the company is
effective and in cohesion, then these should be laid out as her primary performance appraisal
criteria. Once the criteria are clearly laid out, they should be communicated to her in
unambiguous fashion so that she knows what to work towards and how she is going to be
evaluated.
It is useful if these goals can be quantified. For example, one goal for a brand
manager could be that his brand must have at least X percent awareness in the market Making
the goals quantitative in nature makes evaluation easier and less subjective; and therefore less
susceptible to suspicions of “unfairness”. However, it is not a good idea to get caught up in
making all goals quantitative. It is a fact of life that not all things can be measured or
quantified; for instance, courtesy. If a front desk’s performance is to be evaluated on the level
of courtesy shown to visitors, then this cannot be quantified very easily but certain pointers
can be got from the number of complaints about discourtesy and general observations about
the person’s department, among others. Such non-quantifiable measures will involve a certain
amount of subjectivity. Subjectivity need not automatically mean bias. There are steps that
ensure that subjectivity does not degenerate to bias in the performance appraisal context One
such step is periodicity. It is useful if some form of appraisal can be done every three months.
This would tell the person whether he / she is going in the right direction, and what extra
efforts / course correction are required to improve the performance. Another crucial
requirement is transparency. Too often, people are told something like “your performance has
been good, but I wouldn’t say excellent” and that they need to try harder. Such feedback is
little better than useless as it offers no direction whatsoever to the individual. The individual
needs to know what scores he / she is being given and why. One of the main reasons why

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transparency is a casualty in most appraisals is that most managers are not comfortable
giving negative feedback. Maybe it is a cultural issue, but pointing out problems or giving
negative feedback in a one-on-one face-to-face setting and in a calm matter-of-fact manner is
not something most managers are comfortable doing. For that matter, most individuals are
not comfortable receiving this either. This can only be tackled through extensive counseling
and this too needs to start well before appraisal time.
Employees also need to be counseled that the amount of increment given is dependent
on the appraisal score, but is equally dependent on the company’s financial performance and
outlook. This again has to be handled with a certain degree of tact. In many companies, such
decisions are veiled in secrecy and there is talk of “normalization” which no one really
understands. Transparency is again crucial to dispel lingering doubts of bias. Effective
performance appraisal clearly needs a lot more than the few points outlined here, but
attention given to these points will go a long way indeed.

Establishment of Maruti Udyog Limited

• Incorporated on February 24, 1981.
• MOU signed on April 4, 1982.
• License and JV agreement signed on Oct 2,1982.
• Plants located at Gurgaon, Haryana.
• Head office located at New Delhi.
• Ownership - GOI 49.74%, SMC 50%,

VISION
“The leader in the Indian Automobile Industry, creating customer delight and
shareholders’ wealth; A pride of India.”

HR VISION
Lead and Facilitate continuous change towards organizational excellence ; create a
learning and vibrant organisation with high sense of pride amongst its members

CAREER DESIGN
• Performance & Potential based Appraisals
• Fast Track Option for High-performers

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• Promotions after Managers Vacancy based
• Interviews for promotions above Managers
• Selection of Supervisors:
– Performance / Attendance / Discipline record
– Written Test & Interview
• Job Rotation - including Inter-functional

RETENTION & EMPLOYEE WELFARE

· Employee Welfare
- Residential Colonies for Employees – Chakkarpur & Bhondsi
- Hospitalisation Reimbursement – on actuals without Ceiling
- Vehicle Loans
- Household Equipment Loans
- House Building Advance
- Annual Advance
· MUL PF Trust – for better Mgt., Service & speedyredress
· Proposed MUL Pension Scheme
· Learning Opportunity - Benchmark in Auto Technology
· Professional Value addition through Training
· Opportunity for foreign training at SMC, Japan· Job Rotation & Job enrichment

Criteria - Idea
- Efforts- Result : Cost reduction / Q Improvement / Productivity Improvement
MUL to change gear on performance appraisal -- 100% link between pay,
productivity

RENEWING its efforts at cutting costs and improving productivity, Maruti Udyog
Ltd (MUL) has drawn up a new human resources policy, which for the first time, entirely
links performance to pay packets for all its executives and managers.
MUL has traditionally had a performance-based component of about 30 percent in its
compensation package for its executives. But now it has gone the whole hog and decided that
in addition to the hike in individual perquisites, increments to even the basi c salary will now
depend on the employees 'performance during the year.

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 The new performance appraisal and compensation system is likely to affect over
1,000 employees -- executives and senior and middle level managers. Company officials said
the changeover to a completely performance-based compensation system has been under
discussion amongst MUL's senior management and directors for quite sometime now.
So, the new appraisal process has not come as a surprise for most of the employees
and has been accepted by them, the official said. ``Over the past week, the principle
underlying the new system has been communicated at length throughout the company and
feedback has been obtained,'' the official said.
In the run-up to the new remuneration system, the company has also developed a new
performance measurement and development method along with the noted consultant,
Mr. M.B. Athreya. The performance measure men process will complement the new
remuneration system.
MUL sources said rather than appraise employees through confidential reports, the
new performance measurement system involves an interactive process of goal setting, review
and counselling by managers throughout the year. It incorporates qualitative aspe cts, along
with quantitative targets.
The employees are being put through workshops to train them on the various aspects
of the system developed with Mr Athreya. The new system will take effect from this year.
The new system is expected to help enhance managerial performance and skills, while
making the organisation more capable of assessing its costs and returns. The move is also
indicative of the company's renewed stress on increasing per employee productivity.
MUL, which has been beleaguered by low margins and a falling bottom line has also
been forced to take a hard look at its costs this year. For the first time, MUL has slipped
into the red and recorded a loss during the year 2000-01.
MUL has also drawn up a voluntary retirement scheme (VRS) forits employees. The
VRS programe received in-principle approval from the board last month. While the VRS
proposal is yet to be formally notified and offered to the company's employees, it is expected
to apply equally to all the staff members, including the shop floor workers, company sources
said.

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Maruti adopts 360 degree' appraisal system ( February '5, 2007, HBL)
Maruti has introduced a unique 360-degree feedback system, starting with its senior
leadership. The new system has been co-developed with Ernst & Young and has been put in
place recently.
Under the 360-degree feedback system, the employee is rated not just by his
superiors, but also by his peers and subordinates.
"We are starting the 360-degree feedback process with employees in the top
management such as chief general managers and general managers, whose performance will
now be assessed based on feedback from their peers and junior management employees
within the same department. Till last year, their performance was being appraised only by the
Directors and the Managing Director," says Maruti's Chief General Manager (HR), Mr
S.Y.Siddiqui.
Ernst & Young, in consultation with Maruti, has listed a set of leadership
competencies that are expected in a general manager. Based on that, it has prepared a
questionnaire to which peers and subordinates can respond online.
Although acknowledged as an effective tool for leadership development in the West,
Indian companies have been shy of introducing such a feedback system for fear of disturbing
traditional hierarchical structures.
HR consultants feel that the critical issues in implementing such a system include
assuring respondents that their feedback will remain confidential and convincing the person
receiving the feedback that this is a development tool and not an appraisal tool. Maruti has
handled this by getting E&Y and other consultants to make detailed presentations to the
senior management personnel before the process got under way. The company has a
committee of general managers, called Human Resource Inter Divisional Committee
(HRIDC), which is consulted on all major HR issues.
The initiative has been unveiled with an e-mail by Maruti's Managing Director, Mr
Jagdish Khattar, asking people to support the online questionnaire process. The 360-degree
feedback system will also include a self-appraisal by the general manager. At the end of
the process,he can compare his self-appraisal with the assessment of his sub ordinates and
peers.
One of the benefits that Maruti is hoping to get out of the 360-degreefeedback process
is the sense of empowerment and importance felt by subordinates, when they are asked to

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offer their feedback about their superiors. Maruti currently has over 4,000 employees on its
rolls.

History

In 1909, Michio Suzuki (1887–1982) founded the Suzuki Loom Works in the small
seacoast village of Hamamatsu, Japan. Business boomed as Suzuki built weaving looms for
Japan's giant silk industry. In 1929, Michio Suzuki invented a new type of weaving machine,
which was exported overseas. The company's first 30 years focused on the development and
production of these machines.

Despite the success of his looms, Suzuki believed that his company would benefit
from diversification and he began to look at other products. Based on consumer demand, he
decided that building a small car would be the most practical new venture. The project began
in 1937, and within two years Suzuki had completed several compact prototype cars. These
first Suzuki motor vehicles were powered by a then-innovative, liquid-cooled, four-stroke,
four-cylinder engine. It had a cast aluminum crankcase and gearbox and generated 13
horsepower (9.7 kW) from a displacement of less than 800cc.

With the onset of World War II, production plans for Suzuki's new vehicles were
halted when the government declared civilian passenger cars a "non-essential commodity."
At the conclusion of the war, Suzuki went back to producing looms. Loom production was
given a boost when the U.S. government approved the shipping of cotton to Japan. Suzuki's
fortunes brightened as orders began to increase from domestic textile manufacturers. But the
joy was short-lived as the cotton market collapsed in 1951.

Faced with this colossal challenge, Suzuki returned to the production of motor
vehicles. After the war, the Japanese had a great need for affordable, reliable personal
transportation. A number of firms began offering "clip-on" gas-powered engines that could be
attached to the typical bicycle. Suzuki's first two-wheeled vehicle was a bicycle fitted with a
motor called, the "Power Free." Designed to be inexpensive and simple to build and maintain,
the 1952 Power Free had a 36 cc, one horsepower, two-stroke engine. The new double-
sprocket gear system enabled the rider to either pedal with the engine assisting, pedal without
engine assist, or simply disconnect the pedals and run on engine power alone. The patent
office of the new democratic government granted Suzuki a financial subsidy to continue
research in motorcycle engineering.

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Leadership

The company was founded by Michio Suzuki; its current Chairman is Osamu
Suzuki, the fourth adopted son-in-law in a row to run the company,

OEM deals

Since 1985, Suzuki has shared or produced automobiles for other manufacturers around the
world.[199]

Production Facilities

 Takatsuka Plant
o 300, Takatsuka-cho, Minami-ku, Hamamatsu City
 Kosai Plant
o 4520, Shirasuka, Kosai-shi, Shizuoka
 Iwata Plant
o 2500, Iwai, Iwata-shi, Shizuoka.
 Tokokawa Motorcycle Plant
o 1–2, Utari, Shiratori-cho, Toyokawa-shi, Aichi.
 Sagara Plant (Automobiles and Engines)
o 1111, Shirai, Makinohara-shi, Shizuoka.
 Osuka Foundry Plant
o 6333, Nishiobuchi, Kakegawa-shi, Shizuoka.

Production

In the last decade, the production of automobiles in India has greatly increased. Due
to increased production capacity, at present India is the largest tractor and three wheeler
vehicle manufacturer, second largest two wheeler vehicle manufacturers, fourth largest
commercial vehicle manufacturer and eleventh largest passenger car manufacturer in the
world. Presently several renowned automobile companies have expanded their manufacturing
facilities owing to India’s strong engineering base and expertise in the manufacturing of low
cost, fuel efficient cars.3

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Maruti Suzuki India Limited has started its production in 1983 by introducing Maruti 800.
Presently with two manufacturing facilities and a combined manufacturing capacity of one
million cars a year, Maruti Suzuki produces over 1.2 million units annually. The
manufacturing performance of Maruti Suzuki India Limited can be seen by following
production milestones-
 In August 1986 the company produced 1,00,000 vehicles.
 In March 1994, Maruti Suzuki produced 1 million cars.
 In December 1997, the company produced 2 million cars.
 In April 2003, the company produced 4 million cars.
 In April 2005, the company produced 5 million cars.
 In December 2006, Maruti Suzuki produced 6 million cars.
 In June 2009, Maruti Suzuki produced 8 million cars.4

In the year 2009, Maruti Suzuki has surpassed its Japanese parent Suzuki Motor
Corporation in overall production. During 2009, Maruti Suzuki rolled out 966,399 units,
while Suzuki Motor Corporation produced only 908,302 cars.5

In March 2011, Maruti Suzuki India Limited rolled out its historic ten millionth car (1
crore) from its Gurgaon plant.6

Maruti Suzuki has planned to invest Rs.2,000 crore in diesel engine manufacturing
facility at company’s Gurgaon manufacturing plant to meet the growing demand of Swift and
Dzire models.7

After the meeting with Mr.Narendra Modi-Chief Minister, Gujrat, Maruti Suzuki India
Limited very soon is going to set up its manufacturing unit in Gujrat with a capacity to
produce 10 lakh cars per annum with provisions to produce 20 lakh cars per annum in the
second phase.8

Export

Maruti Suzuki India Limited started export in the late eighties. The company has
exported over one million units cumulatively. In September 1987, Maruti Suzuki India Limited
exported first lot of 500 cars to Hungary and in January 2009, first shipment of A-Stars
dispatched from Mudra port for overseas market. In recent years, Maruti Suzuki has focused on

14
exports the cars to meet the growing demand of foreign countries. Some leading overseas
markets of Maruti Suzuki includes advanced western markets like Netherlands, Germany,
France, and UK besides non European markets like Australia, South Africa, Algeria, Chile,
Indonesia, Nepal and Sri Lanka.

Presently Maruti Suzuki exports various models such as A-Star, Alto, Estilo, Ritz,
Maruti 800 across to over 125 countries. In year 2011-12, the company exported over
127,300 units.9
According to Mr.R.S.Kalsi, (Chief General Manager, Maruti Suzuki India Limited) in
year 2009-10, the company achieved robust growth in export by shipping 1.47 lakh units against
export of 70,000 units in 2008-09. He told that A-Star model has a major share in Maruti’s
export portfolio, followed by Alto and Maruti 800. According to Maruti Suzuki India Limited,
the company would explore new overseas markets including Hong Kong, Taiwan, Australia to
export few models of A2 segment.10
In 2009-10, Maruti Suzuki clocked export sales of 147,575 units, its highest ever. This was
111 percent growth over the previous year’s total of 70,023 units. Europe has accounted for
over 77 percent of the sales.11
In the month of April 2012, Maruti Suzuki India Limited has added one golden
feather in its crown. The company’s cumulative exports have crossed one million units with
the milestone car headed for Denmark. This one millionth vehicle was a red colored A-Star.
In international market the A-Star, marketed under ‘Suzuki Alto’ and ‘Suzuki Celario’ badge
in international markets.
A-Star is the company’s flagship export model. Within 38 months of its first shipment
in January 2009, it has clocked exports of over 300,000 units.12
The following table highlights the top 10 export markets of Maruti Suzuki as on 31
March 2010 whereas the exported vehicles are in unit’s i.e in numbers.

Table : Export Markets of Maruti Suzuki (As on 31 March 2010)

Sr.No. Name of Country No.of Vehicles Exported
(In Units)
1 Netherlands 78,514

2 Algeria 68,506

3 Italy 52,250

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 4 United Kingdom 48,641

5 Chile 45,029

6 Germany 38,423

7 Srilanka 30,078

8 Hungary 22,924

9 Nepal 22,368

10 Egypt 18,523

Source: Maruti Suzuki Sustainability Report, 2009-10

The above table depicted that, Maruti Suzuki exported 78,514 vehicles to Netherlands
as on 31 March 2010 i.e for Maruti Suzuki, Netherland was the highest potential market for
export of vehicles. It was disclosed that, as far as export is concerned Algeria and Italy was
another potential markets for Maruti Suzuki. The company exported 68,506 vehicles to
Algeria whereas 52,250 vehicles to Italy as on 31 March 2010.
It was also observed that as compared to other countries, Nepal and Egypt was having
less potential markets for exporting of vehicle. Maruti Suzuki exported only 22,368 vehicles
to Nepal whereas 18,523 vehicles to Egypt as on 31 March 2010.
The following chart focuses on Maruti Suzuki’s Export during 2004-05 to 2011-12. The
Y axis defines the year whereas the X axis defines number of vehicles in units (in number)
Chart: Export of Maruti Suzuki

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 Source: Report by Maruti Suzuki retrieved from www.marutisuzuki.com

The bove chart depicted that the export of Maruti Suzuki in year 2009-10 was 147,575
vehicles whereas the company exported 138,266 vehicles in year 2010-11 i.e the year 2010-11
recorded negative growth by (-) 6.30 percent over 2009-10. The year 2011-12 had recorded
negative growth by (-) 7.87 percent over 2010-11 whereas the year 2009-10, recorded
marvellous growth of 110.75 percent over 2008-09.

Sales
Maruti Suzuki India Limited is the leading automobile manufacturer in India which
offers 15 brands and over 150 variants. In terms of numbers of cars sold, Maruti Suzuki is the
largest subsidiary of Suzuki Motor Corporation, Japan. Maruti Suzuki is the only one Indian
company who has crossed the 10 million sales mark since its inception. Maruti Suzuki’s sales
and service network is the largest among car manufacturers in India.13
Maruti Suzuki sold total 115,433 vehicles in January 2012 and registered growth of
5.18 percent over January 2011. In January 2011, Maruti Suzuki sold 109,743 vehicles.14
In 2009-10, Maruti Suzuki sold total 10,18,365 vehicles. This was the first time in
Indian automobile history that a car company had sold over a million units in a financial year.
The company sold 870,790 vehicles in the domestic market. The total sales in year 2009-10
mark a growth of 28.55 percent over 2008-09. In 2008-09, Maruti Suzuki sold 792,167
vehicles. In March 2010, Maruti Suzuki sold 95,123 vehicles which includes domestic sales
of 79,530 vehicles.15
In September 2012, the company sold 93,988 vehicles whereas in September 2011 the
company had sold 85,565 vehicles i.e in September 2012; Maruti Suzuki witnessed growth of
9.84 percent over September 2011. The domestic sale during September 2012 was 88,801
vehicles, compared to 78,816 vehicles in September 2011. The company had reported 41
percent decline in total sales for August 2012 at 54,154 vehicles on year on year basis due to a
long lockout at its Manesar plant.16
In September 2012, Maruti Suzuki’s total passenger car sales in the domestic market
rose by 3.43 percent to 68,957 vehicles from 66,667 vehicles in September 2011. In mini
segment, Maruti Suzuki’s sales increased by 4.89 percent to 39,150 vehicles during the month
from 37,324 vehicles in September 2011. In compact segment (Ritz, Swift & Estilo models) by
selling 17,813 vehicles, Maruti Suzuki witnessed negative growth of 9.68 percent in September

17
2012 from 19,722 vehicles in September 2011. Maruti Suzuki sold 288 SX4 in the month of
September 2012 and recorded growth of 46.93 percent over September 2011. In September
2011, Maruti Suzuki sold 196 SX4 vehicles.
In the month of October 2012, Maruti Suzuki reported 85.46 percent increase in total
sales at 103,108 vehicles, whereas in same month i.e October 2012, the company had
recorded domestic sales of 96,002 vehicles as compared to 51,458 vehicles in the year 2011.
In October 2012, Maruti Suzuki sold 42,233 vehicles which consisted Maruti 800,
Alto, A-Star & Wagon R, whereas in October 2011, the company sold 25,009 vehicles i.e in
October 2012, the company recorded growth of 68.87 percent over October 2011. In October
2012, the company sold 695 vehicles in mid-size (SX4) segment i.e in October 2012, the
company recorded growth of 117.18 percent over October 2011. In super compact segment
(Dzire), the company sold 14,389 vehicles in October 2012 whereas in October 2011, the
company sold only 5,001 vehicles i.e in super compact segment, Maruti Suzuki recorded
growth of 187.72 percent in October 2012 over October 2011.
In Utility vehicle segment, Maruti Suzuki sold 7400 vehicles in October 2012 whereas in
year 2011 the company sold only 270 vehicles.
In November 2012, Maruti Suzuki sold total 1,03,200 vehicles whereas in November
2011 the company sold 91,772 vehicles i.e in November 2012, Maruti Suzuki recorded
growth of 12.45 percent over November 2011.
The following chart focuses on the performance of Maruti Suzuki with respect to
Domestic Sales. The domestic sales are during 2004-05 to 2011-12. The Y axis denotes the
year whereas the scale of X axis denotes the number of vehicles in units.
Chart : Domestic Sales of Maruti Suzuki

Source: Report by Maruti Suzuki India Limited retrieved from www.marutisuzuki.com

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 As far as mid size segment is concerned, it was found that Maruti Suzuki sold 692
vehicles in November 2012 i.e the mid size segment registered negative growth of (-) 51.70
percent in November 2012 over November 2011.
It was also observed that in November 2012, Maruti Suzuki’s super compact segment
recorded growth of 29.78 percent by selling 13,502 vehicles over November 2011.
The following chart describes the net sales of Maruti Suzuki during 2004-05 to 2011-12.

Chart : Net Sales of Maruti Suzuki (Rs.in Million)

Source: Report by Maruti Suzuki India Limited retrieved from www.marutisuzuki.com

The above pie chart revealed that Maruti Suzuki’s total Net Sales in year 2004-05 was
109,108 million whereas the net sales in year 2005-06 was Rs.120,034 million i.e year 2005-
06 registered growth of 10.01 percent over 2004-05. In year 2010-11, Maruti Suzuki’s total
net sale was Rs.361,282 million whereas the total net sale in year 201112 was 347,059
million..
It was observed that in year 2011-12 Maruti Suzuki’s net sale was decreased by (-) 3.93
percent over 2010-11 whereas in year 2010-11, the company’s net sales was increased by
24.75 percent over 2009-10. It was also revealed that in year 2007-08, Maruti Suzuki’s net
sales was 178,603 million i.e this year recorded growth of 22.39 percent over 2006-07.

19
Company Profile of Sky Authomobiles:

Sky Automobile, Mohababazar, Raipur is a Private incorporated. It is classified as

Non-govt company and is registered at Registrar of Companies, Chhattisgarh. Its authorized
share capital is Rs. 1,000,000 and its paid up capital is Rs. 100,000. It is inolved in Sale of
motor vehicles [Includes wholesale and retail sale of new and used passenger motor vehicles
and lorries, trailers and semi trailers].
Sky Automobile, Mohababazar, Raipur Annual General Meeting (AGM) was last held
on 30 September 2013 and as per records from Ministry of Corporate Affairs (MCA), its
balance sheet was last filed on 31 March 2013.
Directors of Sky Automobile, Mohababazar, Raipur are Arun Singhania and Anil
Kumar Agrawal. Sky Automobile, Mohababazar, Raipur Corporate Identification Number is
(CIN) U50100CT2009PTC021408 and its registration number is 21408.Its Email address is
apasrpr@gmail.com and its registered address is SKY AUTOMOBILES MAHOBA BAZAR,
G.E. ROAD RAIPUR (C.G.).

Company Details

CIN U50100CT2009PTC021408

Company Name SKY AUTOMOBILES MAHOBA BAZAR, G.E. ROAD

RAIPUR (C.G.)

Company Status Strike Off

RoC RoC-Chhattisgarh

Registration Number 21408

Company Category Company limited by Shares

Company Sub Non-govt company

Category

Class of Company Private

Date of Incorporation 05 October 2009

Age of Company Near about 10 years

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CIN U50100CT2009PTC021408

Activity Sale of motor vehicles [Includes wholesale and retail sale of new
and used passenger motor vehicles and lorries, trailers and semi
trailers].
Click here to see other companies involved in same activity.

No. Of Employees 120

Deapratment 1. Sales
2. Service
3. Spares

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 RESEARCH

RESEARCH METHODOLOGY:

• The study is primarily based on the primary data collected through questionnaire
from Sky automobile employees.
• No. of Employee – 120.
• SAMPLING PLAN.
• sample size: 50
• Sample area: Sky automobiles
• Duration:2 weeks

AIM OF THE RESEARCH

The assigned task was to conduct a survey for a well reputed company. The research
is concerned with the systematic and objective collection, analysis and evaluation of the
information about specific aspects in order to help management make effective decisions.
Once the aspect is identified and defined it is the responsibility of the researcher in a
successful manner.
The methodology used in the study involves the collection of primary as well as secondary
data. Research in common parlance refers to a search of knowledge. One can also define
research as a scientific and systematic search for peninent information on a specific topic.

RESEARCH DESIGN

Research Design refers to "framework or plan for a study that guides the collection
and analysis of data". Though each research study has its own specific purpose, but the
research design of this project on FLORA HOTEL is Conclusive in nature.

CONCLUSIVE RESEARCH DESIGN:

Conclusive Research Studies are more formal in nature and are conducted with a view
to eliciting more precise information for the purpose of making marketing decisions.

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 These studies can be either:
a) Descriptive or
b) Experimental
Thus, it was a mix of both the tools of Research Design that is, Explorative as

SAMPLE DESIGN

A sample design is defined as a plan determined before any data are actually collected
for obtaining a sample from a given population. Sample can be either probability sample or
non-probability sample.
In designing the sample the researcher must specify three things.
1. Sampling unit.
2. Sample size.
3. Sampling technique.

SAMPLING UNIT
The unit Comprises of employees from all departments of the Automobile.
SAMPLE SIZE
The sample size taken for this survey was 50 employees of Sky Automobile.
Employees from every department was selected according to their availability.

SAMPLING TECHNIQUE USED

When field studies are under undertaken in practical life, consideration of time, cost
and some other factors almost invariably lead to selection of respondents. The selected
respondents constitute a sample and the selection process is called sampling technique.
I have selected simple random sampling in my project.

SIMPLE RANDOM SAMPLING

This type of sampling is also known as chance sampling or probability sampling,
where each item in the population has an equal chance of being selected in the sample.

DATA COLLECTION:
• Secondary data through internet

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 • Primary data through Questionnaire
• Contact method
• Personal interaction

SOURCE OF DATA

This research study is exclusively based on primary data collected.

PRIMARY DATA

The objective of the study has been accomplished with the help of primary data
collected from 50 employees. The selected samples are met in persons and the data has been
collected with the help of a questionnaire.
The questionnaire used in this survey consists of structured type of questions. It is
mixed type of questionnaire which contains both close ended and other type of questions.
Primary data refer to the data collected from primary sources. The primary data were
obtained by distributing questionnaires among the employees. The questionnaires
contributed main source of prim, data. Also Interview ‘vith HR Manager also contributed
in the finding of the research.

SECONDARY DATA

Secondary data were collected from official recor. of the organization, websites and
from other publications. Data which are not originally collected but rather obtained from a
published or unpublished source, are known as second, data
The Main Sources are:
1. Journals and records.
2. Magazines.
3. Web sites.

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OBJECTIVES OF THE STUDY:

 To study and analyze different performance appraisal schemes provided by the Sky
Automobiles.
 To study the efficiency of the system and overall rating during in Sky Automobiles.
 To measure & improve the performance of employees and increase their future
potential and value to the company
 To analyze the employee attitude towords the present appraisal system.
 To review and retain the promotional and other training programme.

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 DATA ANALYSIS & INTERPRETATION
TECHNIQUES USED FOR ANALYSIS

The most convincing and appealing ways in which data may be presented are tables,
charts and pictures. Pictorial representation helps in qui. understanding of the data. Charts
have greater memorizing effect a S the impressions created by them last much longer than
those created by the figure. A chart can take the shape of either a diagram or a graph.
To analyze the collected data, simple tool of percentage methods issued. The study
diagram representations are adopted. The data are presented through different types of
diagram are as follows.
1. Table
2. Charts
3. Bar diagram

GENDER WISE CLASSIFICATION OF RESPODENTS

Classification No. of Responses Percentage
Male 40 80%
Female 10 20%
Total 50 100%
Table 1.1

Interpretation
From the above table it can be inferred that 80 % of respondents were male and 20%
were femals.

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AGE WISE CLASSIFICATION OF RESPONDENTS

Classification No. of Responses Percentage

20-30 25 50%
31-40 15 30%
41-50 7 14%
51-60 3 6%
Total 50 100%
Table 1.2

Interpretation

From the above table it can be inferred that 50% of respondents was in 20-30 years
age, 30% was in 3140 years age, 14% of the respondents was in 41-50 years age, 69b of the
respondents was in 51-60 years age.

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EXPERIENCE WISE CLASSIFICATION OF RESPONDENTS

Classification No. of Responses Percentage

Less than 3 years 20 40%
4-8 years 17 34%
9-15 years 10 20%
More than 15 years 3 6%
Total 50 100%
Table 1.3

Interpretation

From the above table it can be inferred that 40% of the respondents experience are
less than 3 years, 34% of the respondents experience is 4-8 years, 20 % of the respondents
experience is 9-15 years, 6% of the respondents experience are more than15 years.

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DEPARTMENT WISE CLASSIFICATION OF RESPONDENTS
Classification No. of Responses Percentage
HR Department 1 2%
IT Department 1 2%
Engineering Department 5 10%
Accounting Department 3 6%
Front Office Department 8 16%
House Keeping Department 10 20%
Food & Beverage
12 24%
Department
Sales Department 2 4%
Security Department 8 16%
Total 50 100%
Table 1.4

Interpretation
Frornt above table it can be inferred that 2% of the respondents were from HR
Department, 2% from IT Department, 10% from Engineering Department, 6% from
Accounting Department, 16% from the Front Office Department, 20% from the House
Keeping Department, 24% from Food Beverage Department, 4% from Sales Department
and 16% of us.

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DEPARTMENT WISE CLASSIFICATION OF RESPONDENTS

Classification No. of Responses Percentage

UG degree 21 42%
Other 14 28%
Diploma 11 22%
Post Graduate 4 8%
Total 50 100%
Table 1.5

Interpretation

From the above table it can be inferred that 425 of the respondents have a UG degree,
8% have PG degree, 22% have ITI, 28% have other qualifications.

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1. Who evaluates your performance?

Opinion No. of Responses Percentage

HOD 47 94%
GM 03 06%
External Consultant 0 0%
Others 0 0%
Total 50 100%
Table 1.6

Interpretation

From the above table it can be inferred that 94 % of the employee performance is
evaluated by the Head of the Department. The Head of the Department that is 3 persons 6% is
evaluated by GM.

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2. Does Performance Appraisal is improving Employee Motivation and
Job Satisfaction?

Opinion No. of Responses Percentage

Yes 40 80%
No 10 20%
Total 50 100%
Table 1.7

Interpretation

From the above table it can be inferred that 80% of the employees believe that
performance appraisal is improving their motivation and job satisfaction, but 20 % of the
employees think perfonnance appraisal is not improving their motivation and job satisfaction.

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3. Do you have meeting in the beginning to explain & clarify activity Msk
& goals to be achieved?

Opinion No. of Responses Percentage

Yes 50 100%
No 0 0%
Total 50 100%
Table 1.8

Interpretation

From the above table it can be inferred that 100% of the employees have a meeting in
the beginning to explain and clarify activity task and goals to be achieved in that year.

33
4. Should organization have a fixed duration for Performance Appraisal?

Opinion No. of Responses Percentage

Yes 50 100%
No 0 0%
Total 50 100%
Table 1.9

Interpretation

From the above table it can be inferred that 100% of the employees agreeing the
stating organization should have a fixed duration for performance appraisal.

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5. Whether the Performance Appraisal System is able to improve
Performance?

Opinion No. of Responses Percentage

Yes 35 70%
No 15 30%
Total 50 100%
Table 1.10

Interpretation

From the above table it can be inferred that 70% of the employees Performance
Apprais. System are able to improve Performance and 30% of the Performance Apprais.
System is not able to improve Performance.

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6. Do you think Performance Appraisal System will contribute in
identifying Potential Traits?

Opinion No. of Responses Percentage

Yes 30 60%
No 15 30%
Cannot say 05 10%
Total 50 100%
Table 1.11

Interpretation

From the thove table it can be inferred that 60% of the employees think that
Performance Appraisal System will contribute in identifying Potential Traits of themselves,
15% do not agree that and 10 % cannot say.

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7. Promotion process in the organization is based on-

Opinion No. of Responses Percentage

Performance 03 06%
Experience 07 14%
Educational Qualification 02 04%
All of the above 38 76%
Total 50 100%
Table 1.12

Interpretation
From t. above table it can be inferred that 6% of employee think that promotion is
based on performance, 14 % employee thias it is based on experience, 4% on educational
qualification and 76% thin. all the factors are required for promotion.

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8. Do you think that the past and the present Performance Appraisal
System is Transparent & Free fr wea bias?

Opinion No. of Responses Percentage

Yes 50 100%
No 0 0%
Total 50 100%
Table 1.13

Interpretation

From the above table it can be inferred that 100% of the employees think that the past
and the present Performance Appraisal System is 'Transparent Free from bias.

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9. Are you satisfied with the current Performance Appraisal System?

Opinion No. of Responses Percentage

Highly satisfied 28 56%
Satisfied 13 26%
Just satisfied 9 18%
Dissatisfied 0 0%
Total 50 100%
Table 1.14

Interpretation

From the above table it can be inferred that 56% of the employe. are highly satisfied
with the current Performance Apprais. System. 26% are satisfied with the current
Performance Appraisal System. 18% are just satisfied with the current Perbrmance Apprais.
System.

39
10. Do Sky Automobile provide opportunity for growth and development?

Opinion No. of Responses Percentage

Yes 47 94%
No 3 06%
Total 50 100%
Table 1.15

Interpretation

From the above table it can be inferred that 94% of the employees think Sky
Automobile provide opportunity for growth and development, 6% do not think so.

40
11. Do. Performance Appraisal helps to identify your strength and
weakness?

Opinion No. of Responses Percentage

Yes 50 100%
No 0 0%
Total 50 100%
Table 1.16

Interpretation

From the above table it can be inferred that 100 % of the employees agreeing that the
Performance Appraisal helps to identify your strength and weakness.

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 FINDINGS

 In Sky Automobile Raipur the appraisal model which is followed is on an annual

basis staning from the month of April till March. Head of Depanments Performance
Appraisal was done using Management by objectives metho. and workers
Performance Appraisal was done using 90° method by their own department heads.
The same method was being used by the company from the beginning to the present
time.

 Employee attitude towards the current performance appraisal method is very much
satisfactory, none of the employees said in the survey that they were dissatisfied.
From the HR department, we have found that all the employees are fully cooperative
in the full appraisal process. All employees also agreed the fact that the past and
present apprais. system is transparent and bias free.

 According to the employees majority of them told that performance appraisal was
able to improve their performance. It also increased motivation as well because they
felt that company is interested in their performance and adopting methods to improve
it.

 Promotion process in this organization is based on a mix of experience, performance

and educational qualification, in which experience to be the first factor in the hotel
industry.

 The company also did provide opportunity for growth and development and also
helped to identify strength, weakness and hidden talent.

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 CONCLUSION

Performance appraisal may be understood as the assessment of an individual's

performance in a systematic way. The performance being measured against such factors as
job knowledge, quality and quantity a output, initiafive, leadership abilities, supervision,
dependability, co-operation, judgment, versatility, health and the like. It also helps in
developing strength and rectifies weakness of the employees.

Sky Automobile has been conducting performance apprais. from the past years from
its formation. Employees were cooperative and fully supporting the performance appraisal in
the institution and it was found to be highly effective in the employee's performance.

Sky Automobile has been running successfully for past several years and has created
a good name among its customers and society. People having poor background are given
training and provided with jobs. Performance appraisal can be conducted more effectively by
using the right tools and properly revie.ng and updating the performance appraisal program.
Suggestion from employees and experienced personnel can further enhance and make the
performance appraisal an ide. evaluation system.

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 LIMITATION OF THE STUDY

 The Company's policy of not disclosing some data and information for obvious
reasons, which would have been very much useful for the report.

 Few employees sometime felt disturbed, as they were busy with their job.

 It is difficult to make information based a rich report in a short time of period.

 The sample size was restricted to 50 employees.

 The answers given by the respondents highly depend on the mood and interest and
thus the accuracy fluctuates sometimes.

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 QUESTIONNAIRE

Structured questionnaire in which the questions were based on the objective set for
the research was used for collecting the information and to some extend observation also
helped the researcher to give some additional information.
VARIABLES: Sex, age, educational qualification, experience.

Q1. How long have you been with sky automobile?(in year)
a) Below 2 b) 2-5
c) 5-10 d) 10-above
Q2. Who in your opinion should apprise the employee?
a) superior b) subordinate
c) self appraisal d) consultant
e) all of the above
Q3. Does the appraisal system helps in polishing the skills of performance area?
a) yes b) no c) some what
Q4. If given a chance or opportunity would you like that the current appraisal procedure
should be reviewed ?
a) yes b) no c) can’t say
Q5. Does performance appraisal leads to identification of hidden potential of the
employees?
a) yes b) no
Q6. If continuous appraisal – what should be the gap between two appraisal period?
a) quarterly b) half yearly c) yearly
Q7. What is your perception as to the frequency of apparisal?
a) once during the service period b) continuous
c) never d) can’t say
Q.8 Who evaluates your performance?
a) HOD b) GM
c) External consultant d) Others
Q.9 Does Performance Appraisal is improving Employee Motivation and Job
Satisfaction?
a) Yes b) No

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Q.10 Do you have meeting in the beginning to explain & clarify activity task & goals to be
achieved?
a) Yes b) No
Q.11 Should organization have a fixed duration for Performance Appraisal?
a) Yes b) No
Q.12 Whether the appraisal system is able to improve performance?
a) Yes b) No
Q.13 Do you think that the Performance Appraisal System will also contribute in
Identifying Potential Traits?
a) Yes b) No c) Cannot say

Q.14 Promotion process in the organization is based on-

a) Performance b) Experience
c) Educational Qualification d) All of the above
Q.15 Do you think that the past and the present Performance Appraisal System is
Transparent & Free from Bias?
a) Yes b) No
Q.16 Are ,u satisfied with the current Performance Appraisal System?
a) Highly satisfied b) Satisfied
c) Just satisfied d) Dissatisfied
Q.17 Do Sky Automobile provide opportunity for growth and development?
a) Yes b) No
Q.18 Does Performance Appraisal helps to identify your strength and weakness?
a) Yes b) No

Give your suggestion for the performance appraisal system in

SKY AUTOMOBILE, MOHABABAZAR, RAIPUR
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________

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