EXECUTIVE SUMMARY

Every organization, be it private or public, has to frame and lay down the essential Guiding
Principles that the firm has to believe and must follow to the last word to achieve success and
goals of the firm. With these Principles, it is the duty of the management to enforce them and
make all employees understand the importance of it, to perform in accordance of the principles.

The main objective of the study is focused on the relationship between the two variables being
the Guiding principle and the Employee performance, to investigate the extent to which the
guiding principles had an influence on the performance of the employees.

The information for this study was collected from 60 employees of Klueber Lubrications India
Private Limited, a manufacturing unit of Klueber Lubrications, at Mysuru. The respondents were
asked questions based on the principles and the factors that would influence their performance.

When the questionnaires were received from the respondents, the information gathered was
transformed for conclusion of the findings and reliability of the data collected. Use of statistical
tools such as correlation, T test, Annova, etc., gave the results of the data collected as to what
degree of importance did the guiding principles hold over the performance of the employees.

From the results of the data collected, it showed that the data from the respondents was
positively moderate and there is a significant relationship between the two variables.

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Chapter 1

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Chapter 1

1.1 Introduction:

Today’s organization is dynamic and it provides large opportunities and challenges to the
company managers and the policy makers. Organizational performance comprises the results of
an organization as measured against the organization’s goals and objectives.

For the company to achieve its goals and objectives, the firm has to follow the Guiding
Principles laid down by the leaders of the company who founded it. The employee’s
performance and behavior towards the Principles laid down plays a major role in achieving the
goals. The company has to make these principles easy for the employees to understand and must
work in the set direction.

Guiding principles in simple terms, refers to principles, a direction, that guides any organization
in its whole life of its business in any situations or circumstances, regardless of any changes in
the objectives, targets, strategies, changes in the work etc.

The company must firmly believe in its Principles and should follow them sincerely to achieve
their goals. By doing so, there will be effectiveness and efficiency in the work of the employees
and also the company could gain a higher market share and a competitive advantage.

Employee performance in simple, refers to the person executing his work related duties and
responsibilities in the manners expected by the firms. The firm should evaluate the progress and
performance of the employees, and should correct them if they are lacking in any of the criteria.
The firm can follow various methods to evaluate or appraise the performance of the employees.
It could be a check list method, performance ranking method, graphic scale etc.

The study reveals the dependency of the employee performance to the Guiding Principles of the
firm. A research is done to carefully study and to understand the company’s guiding principles
and the value it delivers to the customers and to the employees.

Consequently this research studies the performance of the employees to that of the guiding
principles and the significant relationship that exists between them. The research is strong to the
objective of the study, and all the essential information needed for this study is gathered from 60
respondents which fulfills the objective of the research.

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1.2 Topic of the study.

“A study on the guiding principles and its influence on the employees’ performance which
increases the productivity of the company, with reference to Klueber Lubrications India Private
Limited, Mysuru.”

1.3 Need for the study.

Guiding Principles are the essential norms that any organization follows in order to achieve their
goals. For this achievement, it is necessary and most important that the employees are made
understood about the company and its guiding principles, so that they are aware of the goals of
the firm. Hence, the employees must perform to that set standard in accordance with the guiding
principles, to fulfill the requirements of the firm. Therefore, the need for this research is to
investigate the employees’ performance by understanding the principles of the firm.

1.4 Objectives of the study.

 To study the Guiding Principles of Klueber Lubrications India Private Limited.

 To study the employees performance in accordance to the principles laid down.
 To study the significant relationship between the guiding principles and
employees’ performance.

1.5 Scope for the study.

The Guiding Principles act as strong navigational force that directs the company in the set
direction to achieve its vision. Therefore it would be most crucial if the employees are not made
to understand and follow the principles of the company to the last word, otherwise, the company
would never be able to achieve its goals. Thus this study tried to analyze the relationship
between the guiding principles and the employees’ performance.

1.6 Research methodology.

The study exploited a divergent overview structure to explore the variables impacting the
employee performance of Klueber Lubrications India Private Limited at Mysuru.

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Population of the study

The data required for this study was collected from the employees of Klueber Lubrications India
Private Limited. The data was collected from 60 employees of the esteemed organization.

Data Collection

The study was focused towards the accretion of necessary information and data applying
questionnaires method. Surveys have a predisposition to be exploited for illuminating
investigations and if all the information accumulated are worded perfectly, they customarily
require less proficiency.

To be focused on getting reliable data and uniformity of responses, I have applied a controlled
response questionnaires, where I visited the employees at their work surroundings, meticulously
conducted the survey and where feasible I gathered the responses on that day. Where it revealed
difficulty in collecting the responses on that same day, the responses were collected on the next
day.

Data Analysis

When all the questionnaires were received back from the respondents, they were transformed for
consistency testing and conclusions. When the information was arranged accordingly, the
variables were placed as designated in order of the guiding principles and those that reflected the
employees performance.

For the variables reliability, I made use of the software IBM SPSS statistics 20 to align the
information accurately. An investigation of a certain study has extraordinary correctness if the
study consists of what one wants to study. To investigate the accuracy of the statistical tool used,
I took assistance from my external and internal guide valuation to proceed with the study, gather
information for the study, arrange the data and critic its appropriateness.

The reliability of this tool was measured with the application of a tool called as Cronbach Alpha,
which involves estimations of the magnitude of variability in totals of characteristic to threat or
unbalanced error. Correlation of the two variables was .58, which says that there is a significant
relationship between the variables and the null hypothesis is rejected completely.

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Type of research

Descriptive research:

For this study descriptive research is used since there are already existent research papers and
studies made on this topic of research. This research is conducted on the employees of Klueber
Lubrications India Pvt Limited, Mysuru.

Sampling method:

Sampling method is the exploitation of a subdivision of the population used when it is difficult to
reach out to the entire major part of the population.

There are diverse sampling methods such as probability sampling method and non-probability
sampling method. In probability sampling method, the chance of every sample to get selected is
more for the study. However in Non-probability sampling method, chances of every sample to
get selected for the study is less when compared to probability sampling.

For this research, Non probability sampling method is utilized.

Non probability sampling:

There are various types of non probability sampling methods like convenience sampling, snow
ball etc. Convenience sampling is also termed or known as judgmental sampling or deliberate
sampling.

Judgmental examining is more likely the wide and most well-known technique for all types of
analysis methods. This method is considered as the easiest method to understand, simplest
method and less expensive method with minimum tedious process involved. The respondents in
this method can be comfortable in choosing their response based on their convenience while
answering to the questionnaire without any force from the researcher.

1.7 Review of Literature.

Performance Evaluation – Methods and Techniques Survey 2014: Performance evaluation

is the important feature in refining the quality of work involvement, stimulates staffs to make
them more involved. PE likewise familiarizes grounds for improvements and augmentations in
the enlargement of an organization and employee progression plans. Performance appraisal

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system fluctuates according to the landscape of the work and description within an organization.
This paper presents a broad investigation of conventional performance methods such as ranking
method and graphic rating scale as well as modern methods such as 360 degree appraisal and
Management by Objectives (MBO).

Employee Performance evaluation – A fuzzy approach 2013: In this study it is derived that
the managers and the supervisors do come across many statements that include the urgent use of
various types of source of data for their decision formulating procedure. This decision poses as
the dangerous decision for the individual, member or a team as a whole. Hence the performance
evaluation is such that it is a convenient judging tool that is most important for the active
management of the organization that is the human resource department that will help in
improving, developing employees, improve their work and also the firm’s performance
according to the plan of the business laid down. Therefore this study conducted gives a
recommendation that a performance evaluation is needed towards the employees using fuzzy
reasoning.

Twofold Studies: Inspiration of Administrator Mannerism Mindfulness of Worker Well -

being and Performance 2014: This investigation scrutinizes guidance of role models’
mindfulness towards subordinate’s performance. The study assumed supervisors mannerism is
completely connected to many sides of employee welfare, relating job contentment, dissimilar
magnitudes of individual performance. This research verified these estimates in two different
studies collecting data from supervisors and assistants. Results showed dependable with
propositions. Generally, the study gives an understanding leadership by scrutinizing groundwork
of supervisors’ usefulness, responsiveness and consideration.

The Impact of High-Performance Human Resource Practices on Employees’ Attitudes and

Behaviors 2013: This research observed the relationships between employees’ perceptions of
high-performance HR practice use in their employment clusters and employee absence, resolved
to remain with the organization, and organizational social responsibility behavior, committing a
motivation to the possible intermediating role of sentimental organizational assurance in these
relationships.

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A 360-degree performance appraisal model dealing with heterogeneous information and
dependent criteria 2013: This Procedure delivers assessment of employees’ performance. It is
on the view of commentators entertain appraised employees. Numerous principles measured in
performance appraisal may have dissimilar landscape, typically present vagueness. Therefore, its
compulsory to provide assorted background improved to such measures. Additionally, it stresses
demonstrating and managing the communication among appraised standards, commentator’s
significance to safeguard current procedure of evidence, comprehensible precise valuations. This
paper, presents combined model that can achieve miscellaneous information, calculates
concluding verbal assessment for employee, applying an actual combination reflecting
collaboration among standards and commentators significance use of weights.

Study of performance appraisal and organizational effectiveness of individual and

organizational basis 2015: Peter F Drucker defined, 'an organization is like melody. It is
established by individual fusion.’ Accomplishment of organizations will depend on capability to
precisely measure performance of members and use its impartiality to augment them as a
dynamic resource. Performance appraisal progresses efficiency level of organization. Though the
need of Performance appraisal is in every organization but different instruments are used in
public and private sector. This paper makes efforts to high point many magnitude assessment in
the sectors.

1.8 Limitations of the study:

 The study is limited to 60 employees of Klueber Lubrications India Private Limited.

 The study is restricted only to the period of the research i.e. 10 weeks.

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Chapter 2

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Chapter 2.

2.1 : Industry profile.

Meaning of an Industry: Industry refers to the classification of a group of companies that are
associated to their main business activities. In economics, there are masses of different industries
which are grouped into greater categories called as sectors.

The three important sectors of the industry are:

a) Primary sector
b) Secondary sector
c) Tertiary sector.

a) Primary sector: The primary sector of the nation’s economy is the sector of creating straight
use of natural resources. This consist of agriculture, forestry, fishing and mining. The primary
sector is generally the most significant in less-developed countries, and usually less important in
manufacturing countries.

b) Secondary sector: Includes economic sectors that yield complete, functioning produce
manufacture and structure.

This segment usually proceeds the production of the primary sector and produces
completed merchandises for trade, or transaction to local customers. It is frequently separated
into light weighted industry and substantial industry. This sector industries devour large
quantities of energy required for factories, machinery to convert the raw materials to products
and merchandises. They yield unused resources, excess heat which might trigger environmental
difficulties or contamination.

c) Tertiary sector: This sector involves "lenient" parts of county’s economy, actions where
individuals’ compromise information, time to recover output possible, sustainability, named as
sentimental industry. Simple distinguishing of this division is manufacturing facilities instead
manufacturing end products. Services ("intangible goods") consist attention, information,
admission, involvement, conversation.

Manufacturing industry: Manufacturing is the production of goods for the use or sale by using
labor, machineries, implements, chemical and biological processing, or formulation.

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Manufacturing refers to variety of social activity, from craft to high technology. It is normally
referred to industrial assembly, where raw materials are converted to finished goods on great
scale. These goods may be used for manufacturing supplementary products, difficult products,
like aircraft, household appliances or automobiles. They are sold to wholesalers, they sell them
to retailers, and then they sell them to customers and users.

Manufacturing takes turns in all types of economic systems. In unrestricted economy,

manufacturing is typically focused towards the bulk production of products for selling
to consumers to gain profit. In a socialist economy, manufacturing is more frequently fixed by
the state to supply a centrally strategic economy. In mixed market economies, manufacturing
occurs in roughly some degree of government regulation.

According to some of the economists, manufacturing is a wealth-producing segment of an

economy, but a service sector inclines to be wealth-consuming. Developing technologies has
provided new growth in progressive manufacturing employment opportunities to many countries
across the world. Manufacturing offers important physical support for the
country’s infrastructure and for defense of the nation.

On the other hand, most of manufacturing sectors may comprise major social and environmental
costs. The clear-out costs of hazardous waste, may offset the welfares of product that creates it.
Dangerous materials expose workers to health risks. These costs are well known and there are
significant efforts made to address them to improve productivity, manage waste, industrial
relationship, removing harmful chemicals etc. Enlarged use of technologies such as 3D
printing proposes possibility to decrease environmental influence of manufacturing finished
goods from scattered manufacturing.

Harmful costs of manufacturing can be addressed legally. Industrialized countries control its
manufacture activities using the help of labor laws and environmental laws. Worldwide,
manufacturers are subject to regulations and pollution taxes to balance environmental costs of
manufacturing activities.

Prime Minister, Mr Narendra Modi, launched ‘Make in India’ campaign to place India on the
map as a manufacturing hub to give global recognition to the Indian economy.

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Indian Government has determined target of increasing contribution of manufacturing production
to 25 per cent of Gross Domestic Product (GDP) by 2025, from 16 per cent currently.
Manufacturing plays an enormous role in modern society, from knitting to oil extraction to steel
production. The notion of manufacturing rests upon the idea of converting raw materials -- either
organic or inorganic -- into products that can be used by the society. The Bureau of Labor
Statistics has classified manufacturing into many subcategories such as clothing and textiles,
petroleum, chemicals and plastics, electronics, computers and transportation, food production,
metal, wood, leather and paper etc.

India’s manufacturing sector is expected to reach US$ 1 trillion by 2025. A possibility for the
sector to account for 25-30 per cent of India’s GDP, it can make up to 90 million domestic jobs
by 2025.

Petro chemical industry: Chemicals that are resultant from petroleum or natural gas – i.e.
petrochemicals are an important part of the chemical industry today. Petro chemistry is a young
industry. It started to develop in the year 1940’s. During the World War II, the claim
for artificial materials to substitute costly and occasionally fewer effective products, caused
the petrochemical industry to grow into a main player in today's economy and society.

Like product chemicals, petrochemicals are made on a very huge scale. Petrochemical
manufacturing units vary from commodity chemical plants. In that they often produce a number
of related products.

Petrochemicals are mainly made in a few manufacturing locations everywhere in the world. Not
most of the petrochemical or product chemical materials produced by the chemical industry are
made in a single location but groups of associated materials and are frequently made in
contiguous manufacturing plants to encourage industrial relationship as well as material and
useful competency and other economies of scale. This is referred to as chemical
engineering idiom as combined manufacturing. Speciality and chemical companies are
occasionally found in related manufacturing locations as petrochemicals but, in many situations,
they do not essential the same level of huge scale infrastructure and hence can be found in multi-
sector businesses.

The huge scale petrochemical manufacturing locations have groups of manufacturing units that
segment services and large scale infrastructures. The petro chemical industry is developing at the

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annual rate of 14% in India and it is expected to reach $100 billion by the year 2020 from the
present size of $40 billion. Petro chemicals industry contribute to the nation’s GDP to around
13% which is twice the growth of India’s GDP and is growing significantly at a global rate. In
this industry, India stands a better chance in offering a profitable market to the global economy.
In the global scenario the contribution of the petro chemicals to the chemical segment is about
40%, India alone contributes 25 – 30 % of the chemicals industry.

Tribological solutions: Tribology is defined as science and manufacturing interrelating

exteriors in comparative gesticulation. It consists of a vast study and an application of principles
of abrasion, wear and grease. Tribology is a division of mechanical engineering and constituent’s
science. It was termed by the British physicist David Tabor, and by Peter Jost in the year 1964, a
lubrication proficient who observed the problems with cumulative resistance on machines, and
underway the innovative discipline of tribology. The tribological relations of a compact exterior's
bore face with interfacing ingredients and environment could effect in forfeiture of quantifiable
from the exterior. The procedure primary to forfeiture of material is known as "wear". Foremost
forms of wear consist of scratch, rubbing, corrosion, and weathering. Wear can be minimized by
adapting superficial possessions of objects by one or more "surface engineering" methods or by
use of lubricants. Tribology learning is frequently applied in bearing design but encompasses just
about another features of modern technology.

Tribology plays an essential part in business. In metal-forming processes, resistance upsurges

tool wear and the control vital to work a piece. This effects in improved or upsurge costs because
of added numerous tool replacement, loss of forbearance as tool measurements shift.

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2.2 Company profile.

Klüber Lubrications India Pvt Ltd is one of the subsidiary company of Freudenberg group of
chemical industries.

About Freudenberg group :

The Freudenberg group is a German family owned diverse group of companies who
manufactures products like automobile parts, housewares and cleaning products, building
materials, telecommunication and textiles. Its headquarters are situated in Weinheim , Baden-
Württemberg in Germany. It has an international focus and has markets located all around the
globe in countries like Asia, Europe, United States of America, Africa and Australia.

The parent company was first started in the year 1849 by the founder Carl Johann Freudenberg,
as a producer of leather goods. During the World War II , due to shortages and worldwide
economic depressions, Freudenberg diversified into seals for motors which were first made out
of leather and then made out of artificial rubber. It then led to manufacturing of fabrics and then
to cleaning fabrics.

In the mid 1990’s , Freudenberg had a division of 16 areas of business and three – quarters of it’s
businesses are as suppliers to other companies. Freudenberg in 2004 had employees in around 43
countries worldwide. In 2002, Freudenberg closed the leather tannery in Germany marking an
end to being a giant in the leather industry.

In 2014, Freudenberg group was a 7 billion euro business with 40,000 employees, 11,000
employees approximately in Germany alone.

Freudenberg is inspired by technology and innovation. It develops leading – edge products

,services, solutions and technologies to its customers and research partners throughout the world.

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About Klüber Lubrications India Pvt. Ltd :

Klüber was founded by Theodor Klüber in 1929. He had the vision of developing and
manufacturing speciality lubricants that should offer unique quality.

Klüber was taken over by the Freudenberg group in the year 1966. Approximately Klüber has
2040 employees working for the company in more than 30 countries.

It is a leading speciality lubricants worldwide and it manufactures and develops expert

tribological solutions by supplying custom – made specicality lubricants to its customers in all
the branches of industry and regional markets. The company offers around 2000 different types
of speciality lubricants to its customers.

Speciality lubricants for preliminary block are at the fundamental of our business. The company
offer their customers skilled tribological solutions by delivering tailor-made speciality lubricants
straight to customers in just about all branches of industry and provincial markets. Customers
comprise producers of mechanisms, modules, machines and systems as well as companies using
this tools for their production or handling activities.

Klüber Lubrications compromises roughly 2000 different speciality lubricants, various of them
developed and manufactured to precise customer necessities. With capable and customer-
oriented accessing and wide-ranging services, the firms employees have recognized Klüber
Lubrication's outstanding name as partner to industry and trade.

With further 80 years of experience, sufficient know-how in the industry, abundant guarantees,
approximately 150 researches and development engineers and additional mechanical authorities
as well as high-performance challenging amenities, the company is one of the foremost speciality
lubricants suppliers global.

The methodology is, to contemplate the life cycle of products from the supplier to the customer,
raw material to lubricant disposal. Raw materials are selected based on inelastic set of standards.

Klueber deliver inclusive and fair conference to customers with respect to environmental
characteristics, capacity to supply and economy of resources.

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Klueber encounters maintainable business management and positioning as motivation to develop
creative, technically sound and innovative processes and solutions for the future.

The firm’s goal is to comprise reducing tension on natural resources, emissions, energy
consumption, more use of renewable energy sources, raw materials and a better eco-
compatibility of internal processes as well as products uses by the customer. Most of firm’s
products offered can help to reduce operating costs, avoid waste, protect energy and reduce need
for dumping and recycling.

These are some issues the company will follow in the future – to satisfy their obligation towards
society, and to help customers to accomplish their determined goals in this field.

Certifications: Many Certifications by self-determining organizations show the customers and

partners that the firms are always ready to face difficult criticisms of the organization’s
standards, and are doing so with success.

Klueber’s certifications surpass the systematic industrial standards such as ISO 9001, 14001 and
TS 16949. Industrial safety is rated as the top significance at Klueber Lubrications, as is
confirmed and recognized by the OHSAS 18001 certificate.

Presence in India: In India the headquarters of klueber is in Bangalore. It has more than 45
engineers and 60 distributors who are spread across India to ensure all the customers that they
always stay close to they’re customers and also to provide excellent world class supreme services
and consultation.

Klueber has one manufacturing plant located in Mysuru, India, which is ranked as one of the 14
world-class manufacturing facilities that Klueber has worldwide.

2.3 Promoters.

Klüber is a 100% family owned business which is taken over the family owned business
Freudenberg Group.

However, the promoters of Klüber are its board of directors of Freudenberg group, The
Management Board of Partners and Partners meeting and the supervisory board. In India, the

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headquarters is situated in Bengaluru and the Mysuru branch which is a manufacturing unit is
headed by the manager Mr. R.C.Jagadish.

2.4 Vision Mission and Quality Policy.

Vision statement

“To develop and offer specialty lubricants that should offer unique superior quality.”

Mission statement

The Guiding Principles of the Freudenberg Group are followed by Klüber Lubrications as their
Mission statement which are as follows:

 Value for the customers: Klüber is committed to anticipating, understanding and meeting
the customers’ needs and expectations. It delivers superior quality to its customers
through their commitment to quality, service, and reliability.
 Innovation: The Company assures a strong focus on high quality and technology through
continuous improvement of innovation. The company’s culture encourages and rewards
creativity and initiative from all their employees.
 Leadership: It is the responsibility of the management to ensure that the principles
applies to every employee. It believes in personal example, modesty and trust in people
and promotes team spirit.
 People: Klüber is devoted towards its employees well – being and personal development.
It does not support any kind of discrimination and harassment. It shows understanding
and respect in relations with each other.
 Responsibility: The Company and the family shareholders are committed to protecting
the environment and being responsible corporate citizens in all communities and
countries in which they do the business. It takes full responsibility of the products they
manufacture and ensure safety in the workplace. As family owned business, it challenges
for highest standards of personal behavior. Equality and honor are the guides followed by
the company towards the employees, trade partners and public.
 Long – term Orientation: Freudenberg was a family business for more than 160 years
and it will remain as a family business. It believes that, the long term business orientation
is a major strength which benefits customers and partners. Freudenberg has a long and

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 successful tradition of worldwide cooperation, alliances, and partnerships which qualifies
it to better serve its customers and strengthen the competitive position.

Quality policy :

 At Klüber Lubrications India Pvt Ltd., innovation is decisive for their success.
 The company and the employees commit themselves to manufacture speciality lubricants
and similar products and related services that should meet the highest standard of quality
and which should exceed the customers requirements and expectations.
 The company also ensures to supply higher quality of lubricants and grease and
encourages its business partners and promoters to comply with the quality assurance
policy, environmental protection and workplace safety.
 The company’s corporate objective is not only to ensure the protection of its environment
and safety within the workplace but also to ensure the protection of environment and
safety in the society they operate in.
 The company uses incorporated administration system to measure, evaluate, control and
improve work assuring superior quality as stated in the vision statement.
 The company’s intention is to achieve zero waste, zero hazard and zero accidents in the
workplace.

2.5 Products and Service Profile.

Klüber Lubrications manufactures the following products :

 Merged coatings.
 Deterioration inhibitors.
 Lubricants Distributers.
 Lubricants Sprigs.
 Oils.

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  Greases.
 Greasing polishes.
 Release agents.

The company does not provide any services as it is wholly a manufacturing unit.

2.6 Areas of operation :

• Production:

• 1. Mohali

• 2. Adas

• 3. Vapi

• 4. Raipur

• 5. Mysore

• Sales:

• Bangalore
• Production & Sales:

• 1. Mumbai

• 2. New Delhi

• 3. Pune

• 4. Chennai.

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2.7 Infrastructure Facilities.

Klüber Lubrications India Pvt. Ltd in Mysuru has an excellent state of the art infrastructure
facilities which not only supports the administration of the company but also the manufacturing
and the production area.

 The branch at Mysuru is known for its Zero percent accident free zone. This is possible
because of the strenuous efforts made by the company to enforce and sustain an accident
free ambiance day after day.
 The Production area has a dust free environment controlled atmosphere with the right
amount of humidity and adequate lighting and ventilation facilities.
 The Warehouse area has good lighting and ventilation to store the barrels of lubricants
and grease. Continuous supervision is carried out to check the quality, availability and
dispatch of the greases and oils. Also the barrels are carried by mechanized forklift carts
to place them on the racks and shelves according to their specifications and quality of
lubricants.
 The company has a Research Laboratory which checks the quality of the lubricants
before they could be stored in the warehouse for dispatch. The lab also stores smaller
quantities of the lubricants for further testing and samplings.
 The employees are provided with safety gears such as uniforms, helmets, gloves, shoes
and goggles.
 There are fire hydrants, fire alarm systems available in every building of the company.
 Canteen facilities is available for the employees where everyday food is served free for
all the employees working from the operation level to the administration level.
 Drinking water facilities, coffee and tea making machines, clean rest rooms and wash
rooms are available.
 Ample parking facilities is available for both two and four wheelers.
 A waiting room for the visitors is available in the security building located near the gates
of the company.

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2.8 Competitors information :

Klüber Lubricants, being in a manufacturing sector producing speciality lubricants and grease,
has its manufacturing units all over the world in around 30 countries. And because of this vast
expansion of business, Klüber faces tough competition in the niche market that they operating
from various competitors worldwide.

The following are the main speciality lubricants manufacturers who are the tough competitors
that Klüber faces :

1. Fuchs Lubricants Pvt Ltd.

2. Mosil Lubricants Pvt Ltd.
3. D – A Lubricants.
4. Elba Lubrication company.
5. Bechem Lubricants.

1. Fuchs Lubricants Pvt Ltd : Fuchs Lubricants was founded by Rudolph Fuchs in the year
1931 in Mannheim, Germany. Fuchs is a lubricant manufacturing company that
manufactures superior speciality products and services to the markets worldwide.
It is the world’s largest independent superior lubricants manufacturer.
The company generated nearly 70% of its sales within the last 5 years by providing its
customers with the products developed with the latest innovation. The company has a
strong emphasis on its Research and Development that helps the company to
manufacture high performance lubricants to meet the needs of the customers. The
company also provides expert technical support and service ranging from a 24 hour
technical help line to a complete chemical process management package.

The company has an overall worldwide recognition and reputation of manufacturing

quality products and performance. The company has spread widely across the globe in
countries like United States of America, United kingdom, India, Africa, Australia, Japan,
China, Russia etc., to name a few. This group consists of 54 operating companies and
with 34 production plants worldwide.

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 Fuchs serves a broad spectrum of over 10,000 different lubricants. It serves to more than
100,000 customers all over the world to help things run smoothly. As a global company,
Fuchs has created around 250 jobs, approx. 80% of which are between Research and
Development and sales.

2. Mosil Lubricants Pvt.Ltd : Mosil Lubricants Pvt.Ltd is an Indian family owned company
started by late Dr. C.K Mavani, Mr. A.C Mavani, and Mr. N.C Mavani in the year 1971. Their
main objective was to solve the burning maintenance problems of the Indian Industries by the
way of Speciality Lubricants.

Mosil over the last 30 years has evolved from a family owned family managed business to a fully
professional managed firm booming on its own capabilities to search and identify new
applications and to develop speciality lubricants to improve the efficiencies of the lubricants
applications in various areas.

Mosil offers a wide range of products of over 300 speciality lubricants that’s helpful for various
applications. Their speciality lubricants is widely used all over India in the manufacturing
industries, automotive industries, axels industry, aviation industry, etc., The company till today
takes pride to be a fully 100% Indian origin when compared to the other speciality lubricants
industries globally.

The manufacturing plant is situated at MIDC MH ape in the peripheries of Mumbai. The unit has
state of the art amenities for the subsequent line of manufacturing:

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1. Grease Engineering
2. Oil Amalgamation
3. Aerosol Engineering
4. Other associated products such as suspensions, varnishes, metal working fluids etc.
The industrial activities are watched after by Mr. A. N. Zurale under the management of Mr.
Shail Mavani who is a Chemical Engineer and a licensed lubrication scientist.

2. D – A Lubricants : D – A lubricants was started in the year 1919. Its headquarters is in

Lebanon. The company manufactures speciality lubricants for various heavy – duty
industries such as Aviation industry, Automotive industry, Ship industry, etc.,

The company offers products in complete line of performance engineered products and services
to keep the equipment at maximum operating efficiency. The company firmly believes that the
backbone of the firm’s success is in its quality products and services and the support of the
customers.

The company is lasting for over 90 years in the industry not only by providing quality products
and services but also from the feedback which they receive from their customers which is very
helpful as it serves its products for heavy – duty industries. The qualified professionals at D – A

24
provides tailor made products according to the specifications of the
customers.

4. Elba Lubricants: Elba specialty lubricants are one of the supreme, deluxe line of Quality Oil
Greases, Additives all over in the world. Elba specialty lubricants are largely made from
exceptional and restricted source Paraffinic-type base oils for the reason that, their unsurprisingly
sophisticated viscidness catalogue, immovability and concentration. These enhancements are a
technologically-advanced family of élite and exceptional representatives ingenuous to deliver
maximum fortification for costly machinery, vehicles & plant equipment. Elba Lubrications offer
specialty lubricants, several of them technologically advanced and mass-produced to
unambiguous customer requirements. With proficient and customer-oriented accessing and wide-
ranging services it stands as the top specialty lubricants manufacturing incorporation of the
world.

Elba mission is to provide the world supreme world class lubricants and grease of finest quality,
and at the least cost to any producers around the country. The company’s strong belief is to be
the leader in the technologically advanced by producing various purest base oils and be
innovative in their manufacturing of superior products so that the customers have trust on the
products that the company manufactures towards productivity improvements worldwide. The
company is strongly committed to value and noticeable customer savings. The company clearly
recognizes and motivates innovative solutions towards they’re products and services.

25
5. Bechem Lubricants: Bechem lubricants was founded by Carl Bechem in the year 1828. It is a
family owned business with a wide network of subsidiary companies, joint ventures and sales
partners.

Bechem is among the largest manufacturers of special and quality lubricants. It has high
competence for custom made solutions for many industries such as the automotive industry,
machinery and plant engineering in metal working operations.

Bechem is one among the prominent manufacturing industries of excellent quality of exceptional
lubricants and metal working fluids. BECHEM is improvement partner of the manufacturing
with extraordinary proficiency for tailor-made elucidations, irrespective of whether for the
enlargement of for-life lubricants for the locomotive industry, technology and plant
manufacturing, or development optimization in metal working maneuvers. With the
comprehensive lifetime of mechanisms, machineries and implements bechem lubrication
produces significantly contribute to the accomplishment of customers.

Bechem lubrications guiding principle describes as - Tomorrow’s technology advancements as

Today’s. – With their lubrication solutions BECHEM does not only meet today’s challenges but
also sets standards for future-oriented lubricant applications and technologies.

Bechem proposals elucidations for Locomotive submissions, furnishings, railing solicitations,

electrical connections, frameworks and brake classifications, gear lubrication, hydraulic

26
submissions, flexible lubrication, food and pharmaceutical industry, procedure media for all
kinds of metal working industries (forming and machining operations), heavy industry, textile
industry, etc.

27
2.9 SWOT Analysis :

SWOT Analysis is an abbreviation which stands for Strength, Weakness, Opportunities and
Threats in a business venture or while doing a project. This analysis can be done for products,
person, venture or any place.

SWOT analysis identifies the external and internal factors of the project or venture which are
favorable or unfavorable to the specified objectives of the business or person. It is important to
conduct a SWOT analysis of the business objective or the project objective as it gives
information about the future steps to plan for the achievement of the objectives.

The characteristics of SWOT is as below :

 Strength: it refers to the features of the business or project or person that gives it a benefit
when compared to others.

 Weaknesses: It refers to the features of business or project or person at a disadvantage or

area of improvement compared to others.

 Opportunities: This constitutes the features that the business or project or person can
explore to its benefits.

 Threats: it involves the features that can cause a threat or pose a danger to the objectives
of the business or project.

SWOT analysis is useful to identify the internal and external factors which are important to
achieve an objective of the business or the project.

1. Internal factors – it refers to the strengths and weaknesses or areas of improvement

within the organization.
2. External factors – it refers to the opportunities and threats which are present in the
external environment of the organization.

28
STRENGTHS:

 Employees are the main strength of the company.

 Continuous innovation is made to improve the products, their system and the employees
is the key to the company’s long term success in the industry.
 The company not only has loyal employees committed to the firm but also has long –
term relationship with their partners, customers and suppliers.
 The firm provides the products to its customers tailor made to their specifications.
 The company gives utmost care to the safety of the employees by ensuring that there is
less or no accidents in the manufacturing units.
 It also provides wide range of services to its customers to help them to utilize their
products easily such as energy efficiency, product efficiency, maintenance efficiency,
working part efficiency, where according to the customers requirements the firm
combines these service elements and the fitting lubricants.

WEAKNESS :

 The employees lack sufficient training facilities to train them about the requirements of
the job.
 Advertising and sales promotions made by the company is not very effective.

OPPORTUNITIES :

 The company has wide opportunities to expand their market share.

 In the global scenario, the firm can update or implement the technology across their
manufacturing countries to manufacture the speciality lubricants and grease.

THREATS: The company faces the following threats :

29
  The company faces threat from new entrants in this sector, where with the use of the
latest technology and innovative ideas, the entrants can replicate the products made by
Klueber.
 The firm faces high threats from its competitors in the manufacturing of speciality
lubricants by adapting cutting edge technology and expert solutions.
 The firm also has the threat related to their customers changing their preference to the
competitors products.
 Market fluctuations pose as a threat to the company as it manufactures lubricants in the
niche market according to the requirements of the customers.

2.10 Future growth and prospects :

Klueber lubrications India Pvt Ltd is planning to reach a 51.9% under Project production. Based
on this, expansion of warehouse, production facilities, office building, etc., is being undertaken
to reach its target.

30
Chapter 3

31
Chapter 3

Theoretical background of the study.

3.1 Guiding principles.

Meaning :

Guiding principles refers to principles, a direction, that guides any organization in its whole life
of its business in any situations or circumstances, regardless of any changes in the objectives,
targets, strategies, changes in the work etc.

Guiding Principles form the essential rules, rules, or ethics that represent what is necessary and
which can be achieved and which guides us to determine between the right and wrong of the
firm’s actions. Principles are clear than values, as they are meant to administer actions of the
firm.

The importance of Guiding principles are as follows :

 Guiding principles are the universal rules which help to shape the scope of any firm.
 It helps the companies to identify solutions for any problems arising in the organization.
 Guiding principles also detects where the firm’s resources are more or less involved
which are needed for the accomplishment of the goals.
 Guiding principles also acts as a motivational force to the employees to reach their targets
as well the organization’s goals effectively and efficiently.
 With strong Guiding principles laid by the companies, it brings confidence in the
customers minds about the firm, in the minds of the investors to invest in the firm, in the
suppliers minds, in the minds of the employees to remain loyal and committed to the firm
and in the minds of the directors of the firm, where they can bring about improvements in
the firm and in their products.
 It creates a cultural diversity in the company where everyone understands what is most
important.
 It is important to communicate to the employees about what is necessary and what is the
goal of the firm. For this, guiding principles should be set in a more general manner
where it is easy for the employees to understand and work accordingly.

32
3.2 Employee Performance.

Meaning :

Employee performance refers to the person executing his work related duties and
responsibilities in the manners expected by the firms. The firms in – turn evaluate his
performance or assess his performance on a weekly, quarterly or annual basis in order to express
his areas of improvement in his work. This evaluation of employees performance is very critical
factor for the success of the organizations.

Employee Performance management is referred to as the procedure for the employee to develop
an understanding in his work of what is needed to be achieved at the firm’s level. The employee
has to align the firm’s objectives to the his capabilities, skills, and competency level.

An effective employee is a blend of a good skills set and a productive working environment. But
there are many factors that affect employee performance and which the managers need to be
cautious of and must work to improve.

Factors affecting the employees performance: A few of the factors that affects the employee
performance are as follows :

 Motivation : In order to get the best performance from employees, some kind of
motivation has to be provided to the employees apart from their salary.
Motivation can come in the form of monetary forms, involvement in company projects, a
focused career path for the employees to achieve the management’s and their personal
accomplishments. But with the lack of motivating factors the performance of employees
will reduce resulting in less participation and less production.
 Managerial standards : Managerial standards act as an important factor for motivating or
demotivating the employees to perform in their tasks according to the requirements of
the firm. The employees work in their domain based on the job description. Hence the
managers must set their standards they expect from their employees according to the
duties and responsibilities of the employees.
 Employee evaluations: An employee evaluation refers to the management evaluating the
performance of the employees and gives his input on the employees performance. With
this input from the management the employees get an opportunity to express about what

33
 he has learnt in the organization. These evaluations can be done on a weekly, quarterly or
annual basis so as to improve the performance of the employees.
 Employee commitment : In order to improve the performance of the employees, the
management has to ensure that the employees do not leave the organization hence, they
provide or offer better pay scales, benefits etc., to make the employees be committed to
the firm. With the better pay scales, benefits etc., the employees will improve their
performance as the management commits itself to the firm and to the employees welfare.

Methods of evaluating Employee’s Performance:

Many companies across the globe use different methods for evaluating the performance of the
employees. Some of which are listed below :
 Self – evaluation method.
 360 degree performance appraisal.
 Graphic scale method.
 Check list.
 Critical incident method.

I. Self – evaluation method: This method is effective when it is combined with performance
review. Employees are asked by the employer to critic his performance by making use of
a form that involves multiple choice answers, essay-type answers or combination of both.
The benefits of this method is that the manager can compare the self-evaluation to his
own appraisal and notice the areas of improvement where there is a difference in the
understanding of employee performance. This acts as a guide to open a conversation
between the manager and the employee and they discuss about the employee’s
performance for the benefit to the development of employee.

II. 360 Evaluation: An employee's development comprises of development and growth made
within his department, and the usefulness of his interaction with the rest of the
departments of the company. A 360 degree performance evaluation is that method which
involves feedback from managers in other departments that the employee is working on a
regular basis and interacts with other employees from other departments. The
34
 management then evaluates the performance of the employees based on their job
description, the work they perform and also on the interaction with the rest of the firm.

III. Graphic scale: The employee's performance in several areas of the employee’s duties is
graded on a scale. The value in this method is that it allows the managers to compare the
performance of numerous employees instantaneously. The method can be carried out
with numbers or letters, and it frequently contains of a range, from poor to excellent.

IV. Check list: This method is basic but effective. It contains of sequences of performance
questions that are usually given with the options of yes or no. The checklist can be used
as a swift way to classify employees who lacks in many performance areas.

V. Critical Incident: This method of evaluation involves maintaining a list of good and bad
incidents of the performance of employees. Here the employer must be active and
positive to maintain a record of the employee’s performance throughout the year.

35
Chapter 4

36
Chapter 4

Analysis and Interpretation of the data.

1. I am able to understand and meet the customer needs in my job.

Options No. of respondents Percentage (%)

Strongly Agree 28 46.66
Agree 28 46.66
Neutral 04 6.66
Disagree NIL NIL
Strongly Disagree NIL NIL
Total 60 100
Table 4.1: Table represents the employees who understand the customer needs.

Percentage (%)
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly
Disagree

Graph 4.1: Graph represents the employees who understand the customer needs.

Interpretation: In Klueber Lubrications Pvt Limited, the respondents have high degree value to
customers, that indicates that this company is very particular about it’s customers. The
employees are able to understand that the value to customers has to be given a priority in
manufacturing the lubricants and trying to meet the customers expectations.

37
2. I am encouraged to be innovative and creative in my job.

Options No. of respondents Percentage (%)

Strongly Agree 26 43.33
Agree 34 56.67
Neutral NIL NIL
Disagree NIL NIL
Strongly Disagree NIL NIL
Total 60 100
Table 4.2: Table represents the employees getting encouraged to be innovative.

Percentage (%)
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Graph 4.2: Graph represents the employees getting encouraged to be innovative.

Interpretation: The respondents agree that the company encourages the employees to be
innovative in their work and contribute to the company’s growth. Employees agree to the extent
of 56.67% towards this principle and 43.33% of the employees strongly agree that the firm has
been encouraging and motivating them to contribute their ideas and work innovatively.

38
3. I get motivated with rewards for my innovative ideas.

Options No. of respondents Percentage (%)

Strongly agree 18 30
Agree 33 55
Neutral 06 10
Disagree 03 05
Strongly Disagree NIL NIL
Total 60 100
Table 4.3: Table represents respondents who are motivated for their innovative ideas.

60
Percentage (%)
50

40

30

20

10

0
Strongly agree Agree Neutral Disagree Strongly Disagree

Graph 4.3: Graph represents respondents who are motivated for their innovative ideas.

Interpretation: Under this principle of innovation and motivation of the company, the
employees highly agree that they get rewards for being innovative in their work. But there are a
few employees who do not agree that this is true to the extent of 5% and there are a few who are
neutral to this principle to the extent of 10%.

39
4. I am encouraged to develop my leadership skills.

Options No. of respondents Percentage (%)

Strongly agree 21 35
Agree 35 58.33
Neutral 03 05
Disagree 01 01.67
Strongly disagree NIL NIL
Total 60 100
Table 4.4: Represents employees who get encouraged to develop leadership skills.

Percentage (%)
70
60
50
40
30
20
10
0
Strongly agree Agree Neutral Disagree Strongly disagree

Graph 4.4: Represents employees who get encouraged to develop leadership skills.

Interpretation: Building leadership skills is considered to be one of the most important guiding
principle in the company. The employees to the extent of 58.33% agree that the company
motivates the employees to build leadership skills and 35% of the employees strongly agree
towards this principle.

40
5. The management has trust in the people and always promotes team spirit.

Options No. of respondents Percentage (%)

Strongly Agree 40 66.67
Agree 17 28.33
Neutral 02 03.33
Disagree 01 01.67
Strongly Disagree NIL NIL
Total 60 100
Table 4.5: Represents the management having trust in the people and promotes team spirit.

Percentage (%)
80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Graph 4.5: Represents the management having trust in the people and promotes team spirit.

Interpretation: Majority of the employees to the extent of 66.67% strongly agree that the
management have trust in the work they do and in them and always promotes team spirit.

41
6. I believe in personal accountability of the work assigned.

Options No. of respondents Percentage (%)

Strongly Agree 30 50
Agree 27 45
Neutral 03 05
Disagree NIL NIL
Strongly Disagree NIL NIL
Total 60 100

Table 4.6: Represents the employees who believe in personal accountability of work.

Percentage (%)
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Graph 4.6: Represents the employees who believe in personal accountability of work.

Interpretation: The respondents were asked whether they believe in personal accountability of
work assigned to them and for this 50% of the employees strongly agree whereas there were a
few to the extent of 45% and 5% who agree and are neutral towards this criteria.

42
7. I get an inspiration from the leaders of the company to follow and inculcate their values and
norms in my routine work.

Options No. of respondents Percentage (%)

Strongly Agree 27 45
Agree 26 43.33
Neutral 07 11.67
Disagree NIL NIL
Strongly Disagree NIL NIL
Total 60 100
Table 4.7: Represents respondents getting inspiration from leaders of the company and who
follow their values.

Percentage (%)
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Graph 4.7: Represents respondents getting inspiration from leaders of the company and who
follow their values.

Interpretation: Based on the principle of leadership, the employees were asked whether they get
inspired by the leaders of the company and would they follow and inculcate their values in their
work. 45% of the employees strongly agree and 43.33% agree. But a few employees to the
degree of 11.67% neither agree nor disagree. They would either follow their own values at times
in their schedule or would also follow the leader’s norms and the organization’s values.

43
8. Employees are discouraged towards any sort of discrimination or harassment in the work area.

Options No. of respondents Percentage (%)

Strongly agree 26 43.33
Agree 26 43.33
Neutral 06 10
Disagree 02 03.33
Strongly Disagree NIL NIL
Total 60 100
Table 4.8: Represents the employees discouraged towards discrimination and harassment.

Percentage (%)
50

40

30

20

10

0
Strongly agree Agree Neutral Disagree Strongly Disagree

Graph 4.8: Represents the employees discouraged towards discrimination and harassment.

Interpretation: The employees equally strongly agree and agree against any sort of
discrimination towards any of the employees in the organization to the extent of 43.33%. The
least would be just 03.33% who do not agree to this criteria.

44
9. Good understanding and mutual respect exists among the colleagues.

Options No. of respondents Percentage (%)

Strongly Agree 27 45
Agree 31 51.67
Neutral 02 03.33
Disagree NIL NIL
Strongly Disagree NIL NIL
Total 60 100
Table 4.9: Represents the understanding and mutual respect.

Percentage (%)
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Graph 4.9: Represents the understanding and mutual respect.

Interpretation: Good understanding and mutual trust has to exist in any organization for the
smooth functioning of work to achieve both organization and personal goals. When the
employees were questioned about this criteria, most of the employees to the degree of 51.67%
agree towards this principle, and 45% of the employees strongly agree.

45
10. The company is well focused towards the well – being and personal development of the
employees.

Options No. of respondents Percentage (%)

Strongly Agree 20 33.33
Agree 34 56.67
Neutral 06 10
Disagree NIL NIL
Strongly disagree NIL NIL
Total 60 100
Table 4.10 : Represents the respondents who feel that the company is well focused on well-
being of employees.

Percentage (%)
60

40

20

0
Strongly Agree Agree Neutral Disagree Strongly disagree

Graph 4.10: Represents the respondents who feel that the company is well focused on well-
being of employees.

Interpretation: In Klueber lubrications, the firm believes in the principle of focusing towards
the employees well-being and personal development. 56.67% and 33.3% of the employees agree
and strongly agree that the company is focused on their well-being whereas 10% of the
employees neither agree nor disagree.

46
11. I feel that the company has a long – term relationship with the customers, suppliers and
industrial partners and also employees.

Options No. of respondents Percentage(%)

Strongly Agree 30 50
Agree 29 48.33
Neutral 01 01.67
Disagree NIL NIL
Strongly disagree NIL NIL
Total 60 100
Table 4.11: Represents the company having long term relationship with customers, suppliers and
industrial partners.

Percentage(%)
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly disagree

Graph 4.11: Represents the company having long term relationship with customers, suppliers
and industrial partners.

Interpretation: One of the most important principle that the firm strongly believes is long term
orientation of the firm and employees. 50% of the employees strongly agree to this criteria as
there are employees working in this branch for more than 25 years.

47
12. I get enough opportunity where I can contribute to protect the working environment in my
routine schedule.

Options No. of respondents Percentage (%)

Strongly Agree 18 30
Agree 40 66.67
Neutral 02 03.33
Disagree NIL NIL
Strongly disagree NIL NIL
Total 60 100
Table 4.12 : Represents the employees get enough opportunity to contribute to protect the work
environment.

Percentage (%)
80

60

40

20

0
Strongly Agree Agree Neutral Disagree Strongly disagree

Graph 4.12: Represents the employees get enough opportunity to contribute to protect the work
environment.

Interpretation: Every company must enforce clean and safe working environment. When the
respondents were asked towards this principle, 30% of the employees strongly agree whereas
66.67% of the employees agree. 03.33% of the employees neither agree nor disagree, but they
are aware of this principle.

48
13. I believe that the long – term orientation of Klüber is a major strength that benefits our
customers and partners.

Options No. of respondents Percentage (%)

Strongly agree 27 45
Agree 30 50
Neutral 03 05
Disagree NIL NIL
Strongly Disagree NIL NIL
Total 60 100
Table 4.13 : Represents the long term orientation a major strength that benefits the customers
and partners.

Percentage (%)
60
50
40
30
20
10
0
Strongly agree Agree Neutral Disagree Strongly Disagree

Graph 4.13 : Represents the long term orientation a major strength that benefits the customers
and partners.

Interpretation: Value to the customers is the foremost and one of the most important principle
that the firm strongly follows. The respondents to the degree of 50% agree towards this principle
and 45% of the employees strongly agree. A few of the respondents to the extent of 5% are
neutral but they do consider this principle to be the most important principle that guides the
company in the set direction.

49
14. Importance towards Equality and Truth is focused by the management.

Options No. of respondents Percentage (%)

Strongly Agree 21 35
Agree 35 58.33
Neutral 03 05
Disagree 01 01.67
Strongly Disagree NIL NIL
Total 60 100
Table 4.14 : Represents the importance towards equality and truth.

Percentage (%)
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Graph 4.14 : Represents the importance towards equality and truth.

Interpretation: Equality and trust between the management and the employees has to exist so as
to achieve the goals of the organization. Majority of the respondents agree towards this principle
to the degree of 58.33% and 35% of them strongly agree.

50
15. I work independently without taking much instructions from my supervisors.

Options No. of respondents Percentage (%)

Strongly Agree 25 41.67
Agree 29 48.33
Neutral 03 05
Disagree 03 05
Strongly Disagree NIL NIL
Total 60 100
Table 4.15 : Represents the employees work independently.

Percentage
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Graph 4.15: Represents the employees work independently.

Interpretation: Respondents were asked whether they consistently depend on the supervisor’s
instructions at each step of they’re work or would they work independently once they receive all
the instructions from the supervisor related to the work assigned. Majority of the respondents to
the degree of 48.33% agree but there are a few to the extent of 5% who say that they would
prefer to depend on the supervisor at every step of they’re work.

51
16. I am aware of my work schedule and about the requirements of the job that I perform.

Options No. of respondents Percentage (%)

Strongly Agree 34 56.67
Agree 23 38.33
Neutral 03 05
Disagree NIL NIL
Strongly Disagree NIL NIL
Total 60 100
Table 4.16: Represents who are aware of the work schedule and requirements of the job.

Percentage
60

50

40

30

20

10

0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Graph 4.16: Represents who are aware of the work schedule and requirements of the job.

Interpretation: The employees are aware of their work schedule to the degree of 56.67% who
strongly agree and 38.33% who agree to this factor.

52
17. The policy of creating value to the customers is making me to improve my job performance.

Options No. of respondents Percentage (%)

Strongly Agree 27 45
Agree 30 50
Neutral 03 05
Disagree NIL NIL
Strongly Disagree NIL NIL
Total 60 100
Table 4.17: Represents the policy creating value to the customers.

Percentage (%)
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Graph 4.17 : Represents the policy creating value to the customers.

Interpretation: The organization has the most important policy of creating and delivering value
to its customers. Based on this policy, the employees have to perform equally to satisfy the needs
of the customers. Hence the results of this criteria shows that 45% of the respondents strongly
agree and 50% of them agree.

53
18. I am able to communicate my views, opinions etc., easily in English with my supervisors and
colleagues.

Options No. of respondents Percentage (%)

Strongly Agree 28 46.67
Agree 32 53.33
Neutral NIL NIL
Disagree NIL NIL
Strongly Disagree NIL NIL
Total 60 100
Table 4.18 : Represents the employees being able to communicate their views, ideas.

Percentage (%)
54

52

50

48

46

44

42
Strongly Agree Agree Neutral Disagree Strongly Disagree

Graph 4.18 : : Represents the employees being able to communicate their views, ideas.

Interpretation: Communicating with the employees is the most important factor to achieve the
goals of the organization. The employees also must be given opportunity to easily communicate
their views and ideas as well. Around 53.33% of the employees agree and 46.67% of them
strongly agree that the organization does give them space to express their views, opinions etc.
and they also find it quite easy to communicate in English.

54
19. The time given for the tasks to be completed is sufficient for my work.

Options No. of respondents Percentage (%)

Strongly Agree 24 40
Agree 33 55
Neutral 03 05
Disagree NIL NIL
Strongly Disagree NIL NIL
Total 60 100
Table 4.19 : Represents the time given for the tasks to be completed.

Percentage (%)
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Graph 4.19 : Represents the time given for the tasks to be completed.

Interpretation: Time for the completion of the tasks assigned is most important. Only then will
the organization be able to achieve their set goals in the specified time period. To this criteria
55% of the respondents agree and 45% of the respondents strongly agree. But there are a few
who neither agree nor disagree to the extent of 5%. They believe that they will complete the task
on time

55
20. I have full knowledge about my work and responsibilities.

Options No. of respondents Percentage (%)

Strongly Agree 21 35
Agree 35 58.33
Neutral 04 06.67
Disagree NIL NIL
Strongly Disagree NIL NIL
Total 60 100
Table 4.20: Represents the employees possessing knowledge about the job and responsibilities.

Percentage (%)
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Graph 4.20: Represents the employees possessing knowledge about the job and responsibilities.

Interpretation: Having an expertise knowledge of work and responsibilities is the most

significant role that all the employees must possess. For this criteria, around 58.33% of the
respondents agree and up to 35% strongly agree. 6.67% of the employees are neutral to this
factor. They do believe that they should possess the knowledge of the work but they also feel that
with the training given for the work required they would increase their knowledge about the
work.

56
Calculation of Hypothesis

1. Reliability test.

Reliability Statistics

Cronbach's N of Items
Alpha

.734 2
Interpretation: The data collected from 60 respondents
of Klueber Lubrications India Private Limited has a Cronbach Alpha of .734 which gives the
inference that the data collected is reliable data to the extent of 73.4% and this data or the
research conducted on the topic can be reviewed for further researches under this topic.

2. Correlation test.

Correlations

AVGGP AVGEP

Pearson Correlation 1 .583**

AVGGP Sig. (2-tailed) .000

N 60 60
Pearson Correlation .583** 1

AVGEP Sig. (2-tailed) .000

N 60 60

**. Correlation is significant at the 0.01 level (2-tailed).

Interpretation: The two variables being the Guiding principles and Employee performance have
a significant relationship of the hypothesis value 0.001, where the null hypothesis is rejected and
the alternate hypothesis is accepted. The two variables correlate to the extent of 58.3%

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3. T – test

One-Sample Test

Test Value = 0
t df Sig. (2-tailed) Mean Difference 95% Confidence Interval of the
Difference

Lower Upper

AVGGP 106.888 59 .000 4.33800 4.2568 4.4192

AVGEP 96.740 59 .000 4.36950 4.2791 4.4599

Interpretation: With the above results of one sample T – test, it shows that there is a significant
relationship between the two variables to the extent of hypothesis value of 0.000, which defines
that the null hypothesis is rejected and we accept the alternate hypothesis.

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Chapter 5

59
Chapter 5

5.1 Summary of Findings

From all of the above tests and analysis, it is found that the relationship between the two
variables is moderately positive to the degree of 58.3%. With the responses collected from 60
employees from the organization for the research, the data is reliable to extent of 73.4%. It infers
that any researcher who would prefer to do a study on this topic, can depend on the findings of
this research. The data collected has a regression value of .34. This interprets that the dependence
of the dependent variable being the employee performance is to the degree of 34% to the
independent variable guiding principles. It further interprets that with the meticulous work of the
employees, the performance of the employees to that of the guiding principles is just to the
degree of 34%.

T test is performed for the total number of respondents below 100. The test conducted for 60
respondents’ shows that there is definitely a significant relationship between the two variables to
the degree of 0.001 which interprets that the null hypothesis with the value of 0.05 is rejected
completely and the alternate hypothesis is accepted for the data collected.

5.2 Conclusion

Employees’ performance is directly proportion to the Guiding principles laid down by the
organization. The employees must have a thorough understanding about the company, its vision,
mission and the objectives or the goals it wants to achieve in its lifetime. For this the
management must inculcate these principles and values into the work schedule of the employees.

The guiding principles give a firm understanding and direction to the firm and throws a light on
the objectives that the firm has achieve. To achieve these goals, the employees must perform to
the standards set by the company. The employees must give highest importance to the principles
and must work accordingly. Only then will the company satisfy each of the principles laid down.
Majority of the respondents either strongly agree or agree to the statements posed in the
questionnaire. An overall interpretation is that the respondents are well aware of the principles
laid down and firmly believe that the organization is heading in the set direction by evaluating

60
the performance of the employees and maintain the long – term orientation with the partners,
suppliers and customers.

5.3 Suggestions

Throughout the study and with the findings of the data gathered from the respondents, the
company must imbibe the principles more in the employees and in the work that they do. There
is commitment and long – term orientation of the employees to the firm, but with the meticulous
work in the manufacturing unit, they must be made conscious about the principles frequently in
order to strengthen the relationship between the two variables.

5.4 Future scope of the study

There is a future scope for the study. Researchers can study in depth about this study by
increasing the number of respondents. This study can be further conducted in other types of
organizations as well and not just to manufacturing units. The researcher can also just
concentrate on the employees’ performance alone and also study on the different types of
performance appraisal methods. Also with respect to the guiding principles, a further study can
be performed to research on the performance of the organization as a whole.

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References:

Imtiaz Ahmed, Paul Sanjoy (2013), Employee Performance evaluation : A fuzzy Approach.
Journal Productivity and performance management 01-2013-0013.

Andres de Roseo, Marinez Luiz (2013) A 360 degree performance appraisal model dealing with
heterogeneous and dependent criteria. Journal information sciences

Bhatia Kanchan (2012), A study on performance appraisal and organizational effectiveness in

terms of individual and organizational basis. Journal Arts, management and humanities 1(1) 63 –
72.

Iqbaal Sahid Mohammed (2014) Effectiveness of performance appraisal: Integrated framework.

Journal Management reviews.

Cunnigham barton J (2014) The effects of performance rating, leader – member exchange,
perceived utility and organizational justice on organizational performance appraisal satisfaction.
Journal of business ethics.

Keheo R Rebecca (2013) The impact on high performance Human resource practices on
employees’ attitude and behavior. Journal of Management.

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Annexure:

QUESTIONNAIRE ON - A STUDY ON THE GUIDING PRINCIPLES AND ITS

INFLUENCE ON THE EMPLOYEE PERFORMANCE.

Respected Sir/Ma’am,
As a student of management, I am undertaking a project on A STUDY ON THE GUIDING
PRINCIPLES AND ITS INFLUENCE ON THE EMPLOYEE PERFORMANCE.
As a part of my project, I would like to gather some information from you which would help me
in an in-depth study of my project.
I would be obliged if you cooperate with me in filling the questionnaire. Since this questionnaire
is being used for academic purpose, the information gathered will be strictly confidential.
Kindly answer the following questions and help me to complete my project successfully.
Name (Optional):
Age:
Gender : Male Female
Designation:
Experience:
Department:

Note: Please tick the appropriate options given for the questions below.

63
Sl.No Description Strongly Agree Neutral Disagree Strongly
Agree Disagree
5 4 3 2 1
1. I am able to understand and meet
the customer needs in my job.

2. I am encouraged to be innovative
and creative in my job.

3. I get motivated with rewards for my

innovative ideas.

4. I am encouraged to develop my
leadership skills.

5. The management has trust in the

people and always promotes team
spirit.

6. I believe in personal accountability of

the work assigned.

7. I get an inspiration from the leaders

of the company to follow and
inculcate their values and norms in
my routine work.

8. Employees are encouraged against

any sort of discrimination or
harassment in the work area.
9. Good understanding and mutual
respect exists among the colleagues.

10. The company is well focused towards

the well - being and personal
development of the employees.
11. I feel that the company has a long –
term relationship with the
customers, suppliers and industrial
partners and also employees.

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