Performance Apparaisal of Toyota Company

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CHAPTER–1
INTRODUCTION TO HUMAN RESOURCE
MANAGEMENT
              Human Resource refer to the individuals or personnel or workforce
within an organisation responsible for performing the tasks given to them for
the purpose of achievement of goals and objectives of the organisation which is
possible only through proper recruitment and selection, providing proper
orientation an induction, training, skill developments, proper assessment of
employees (performance appraisal), providing appropriate compensation and
benefits, maintaining proper labour relations and ultimately maintaining safety,
welfare and health concern of employees, which is  process  of the human
resource management.

Human Resource Management


               Human Resource (or personnel) Management, in the sense of getting
things done through people, is an essential part of every manager’s
responsibility, but many organizations find it advantageous to establish a
specialist division to provide an expert service dedicated to ensuring that the
human resource function is performed efficiently. To be effective, he must
know how to utilize human as well as non-human resources while translating
goals into action. It is in managing human assets that the manager’s capabilities
are tested fully, because, modern employees are better educated, possess greater
skills, have more sophisticated technology available for their use, and enjoy
higher standards of living than previous generations. Human beings behave in
widely differing and complicated ways, their reactions to promises, praise, or
criticism, for example, can be quite different. It is very difficult to predict their
behavior especially in an organization where they work in-groups. Their
behavior is neither consistent nor readily predictable.
 
A human being himself determines what he contributes. If he is motivated, he
will work for an organization more efficiently and effectively. Organisation and
individual should develop and progress simultaneously for their survival and
attainment of their mutual goals. So modern management should develop the

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organization through human resource development. Performance Appraisal is


the process of assessing the performance and progress of an employee or a
group of employees on a given job and his / their potential for future
development. It consists of all formal procedures used in the working
organizations to evaluate personalities, contributions and potentials of
employees.

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Definition of HRM
        Personnel management, broadly speaking, is the process of achieving the
best fit between individuals, jobs, organizations and the environment. It is the
process of bringing people and organizations together so that the goals of each
are met.

 “Human resource management encompasses those activities designed to


provide for and co-ordinate the human resources of an organization. Human
resource functions refer to those tasks and duties performed in organizations to
provide for and co-ordinate human resources”     

                                                                              -----‘Byers & Rue’.

 “Personnel management may be defined as a set of programs, functions, and


activities designed to maximize both personnel and organizational goals.”

                          

 “Personnel management is the planning, organizing, directing and controlling


of the procurement, development, compensation, integration, maintenance and
separation of human resources to the end that individual, organizational and
social objectives are accomplished”

                                                                                                                   

Nature of Human Resource Management


        H.R.M is concerned with employees both as individuals and as group in
attaining goals. It is also concerned with behaviour emotional and social aspects
of personnel. It is concerned with the development of human resources. I.e.,
knowledge, capacity, capability, skill, potentials and attaining and achieving
employee goals, including job satisfaction. It cannot be turned on and off like
water from a faucet; it cannot be practiced only one hour each day a week. It
requires a constant alertness and awareness of human relations and their
importance in every day organization. H.R.M is conscious of its social
obligations toward society in general and to employees in particular.

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Meaning of HRM

 Human resource management (HRM) is the function of an organization


that handles everything having to do with its people. The HRM department
enables employees to contribute
The overall purpose of human resources (HR) is to ensure that the
organization is able to achieve success through people. HR professionals
manage the human capital of an organization and focus on implementing
policies and processes. They can specialize in finding, recruiting, selecting,
training, and developing employees, as well as maintaining employee relations
or benefits. Training and development professionals ensure that employees
are trained and have continuous development. This is done through training
programs, performance evaluations, and reward programs. Employee relations
deals with the concerns of employees when policies are broken, such as cases
involving harassment or discrimination. Managing employee benefits includes
developing compensation structures, parental leave programs, discounts, and
other benefits for employees. On the other side of the field are HR generalists
or business partners. These HR professionals could work in all areas or
be labour relations representatives working with unionized employees.
HR is a product of the human relations movement of the early 20th
Century, when researchers began documenting ways of creating business
value through the strategic management of the workforce. It was initially
dominated by transactional work, such as payroll and benefits administration,
but due to globalization, company consolidation, technological advances, and
further research, HR as of 2015 focuses on strategic initiatives like mergers and
acquisitions, talent management, succession planning, industrial and labor
relations, and diversity and inclusion. In the current global work environment,
most companies focus on lowering employee turnover and on retaining the
talent and knowledge held by their workforce. New hiring not only entails a
high cost but also increases the risk of a new employee not being able to
adequately replace the position of the previous employee. HR departments
strive to offer benefits that will appeal to workers, thus reducing the risk of
losing employee commitment and psychological ownership.

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Objectives of Human Resource Management


Although managers and supervisors in the past often were arbitrary and
autocratic in their relations with subordinates, today this type of leadership is
increasingly being rejected. The present generation of employees is more
enlightened and better educated than were preceding ones. Today’s employees
demand more considerable treatment and a more sophisticated form of
leadership. Furthermore, because of the skills are in short supply, more groups
of employees are in a position to demand and obtain more favorable
employment conditions and treatment. In the light of these emerging trends,
personnel management’s objectives have been expanding all these years. Let’s
examine these in detail.
 

Ø To help the organization reach its goals. Personnel like other departments in
an organization, exit to achieve the goals of the organization first and if it
does not meet this purpose, personnel (or for that matter any other unit)
will wither and die

Ø To employ the skills and abilities of the work force efficiently. The primary
purpose of personnel management is to make people’s strengths productive
and to benefit customers, stock holders and employees.

Ø To provide the organization with well trained and well-motivated employees.
Personnel management requires that employees be motivated to expert
their maximum efforts, that their performances are evaluated properly for
results, and that they are remunerated on the basis of their contributions to
the organization.

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Importance of HRM
Human resource management is critical to organizations. It has some
objectives that can significantly improve or negatively impact the
organization. The main goal of human resources management is to
increase productivity. We can do this by hiring qualified employees and
training initiatives. The primary purpose of HRM, which is essential for an
organization, is to improve coordination between departments. It also
impacts the importance of Human Resource Management.

Your authorities will have a hard time working together if you


don’t have proper human resources management. Your business will
suffer as a result. Employee satisfaction, maintaining a healthy work
culture, and a healthy work-life balance for employees are more
important goals of human resources management.

 HR planning, also known as manpower planning. It helps determine


the number and types of personnel needed to fill various positions
within an organization.
 Personnel recruitment, selection, and placement are all part of the
employment function.
 Employee development and training to ensure efficient performance
and growth.
 The Performance Appraisal Function evaluates employee
performance. It takes corrective action, such as transferring from
one job to another.
 It Provides financial and non-financial incentives. It also depends on
the opportunities for advancement to motivate employees.
 Employee payment must ensure that employees receive adequate
wages. And edge benefits to achieving a higher standard of living
and motivate them to be more productive.

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Introduction of performance appraisal


Performance appraisal is also known as employee
evaluation, merit rating, employee assessment, etc. It is a
systematic process of appraising an employee's current and
past performance relative to his/her performance
parameters. ... Performance appraisal process

When a business has valuable, rare, and/or unique human resources it


will always have a competitive advantage over other similar
organizations.
Below are the criteria used in Human Resource Management – when
using these effectively, a company can make an impact in its particular
field.
– Value Building: People who try hard to decrease costs and to provide a
service or product unique to customers, can increase their own value as
employees and that of the company. Organizations also use
empowerment programs, quality initiatives, and strive for continual
improvement in order to increase the value that employees bring to the
company.
– Rarity: When the skills, knowledge, and abilities of employees are not
equally available to all companies in the same field, the company that has
these people, has a very strong advantage. This is why top companies
endeavor to hire and train the best and the brightest employees. This
way they gain advantage over their competitors. In some cases,
companies will even go to court to stop other organizations from taking
away their valued employees. This proves that some companies have
clearly identified the value and the uniqueness of certain employees.
– Incomparability: Employees give their companies competitive
advantage when their capabilities and contributions cannot be
reproduced by others. That is, the knowledge and skills that they bring to
the organization are unique and not easily found elsewhere. Certain
corporations such as Disney, Southwest Airlines, and Whole Foods have,
over the years, developed very distinctive cultures that get the most
from employees. These cultures are difficult for other organizations to
imitate. Southwest Airlines, for example, rewards the employees who

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perform well. It is also able to maintain employees’ loyalty through


offering free airfares and profit sharing in the company.
– Organized work force: People with unique talents can help a company
achieve a competitive advantage when they can easily be reassigned to
work on new projects without much notice. In order for this to happen
teamwork and co-operation are needed and the creation of an organized
system.
The criteria above show the importance of people power and also the
link between human resources management and performance
management. Many high-functioning organizations now know that their
success depends on the knowledge and skills of their employees, or, their
human capital. Human capital is aligned with the economic value of
employees with the right knowledge, skills, and abilities. Their knowledge
and skills have economic value. Managing human capital properly is
imperative for any organization wanting to maintain a competitive
advantage. In some ways it is the most important part of an
organization’s human resource function.

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Need of the study


  The most valuable asset for any organization is its people. While all other
assets depreciate over a period of time, people as an asset appreciate over a
period of time. Longer a person has been associated with the company; greater
is his value in terms of experience & contribution, and therefore, his price.

An organization’s goals can be achieved only when people put in their


best efforts. How to ascertain whether an employee has shown his or her best
performance on a given job? The answer is performance appraisal.

Once the employee has been selected, trained and motivated, he is then
appraised for his performance. Performance Appraisal is the step where the
Management finds out how effective it has been at hiring and placing
employees. If any problems are identified, steps are taken to communicate with
the employee and remedy them.

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Scope of the study


The study is an analysis on the performance appraisal system followed by the
human resources management with special reference to HDFC Standard Life
Insurance Company Limited.

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Objectives of the study


Ø To understand the Performance Appraisal System practices in HDFC Life.
Ø To know the employees awareness & level of satisfaction about the
Performance Appraisal in the organization
Ø To identify the factors inducing to increase the performance of an
employee
Ø To know the factors necessary for appraising the employees
Ø To provide suggestions to the management in improving Performance
Appraisal System

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Methodology of the study


Research Methodology is a way to systematically solve the research problem.

Research – Meaning and Definition:


Research is an art of scientific investigation. The advanced learner’s
dictionaries of current English lay are down the meaning of research as, “a
careful investigation (or) inquiry especially through search for new facts in any
branch of knowledge”. Redmen and Mary define research as a “systematic
effort to gain knowledge”...

Research Design:
A research design is purely and simply the framework or plan for a study that
guides the collection and analysis of data. Generally a research design is a blue
print of the research that is to be followed in completing the study.

It is descriptive research type are those, which are concerned with describing
the characteristics of a particular individual or of a group, where we cannot
control the variables

Sampling Design:
Population: 150 Members

Sampling unit: Employees

Sample Size: 50 nos.

Sampling Procedure: Simple Random Sampling (probability sampling)

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Methods of Data Collection:


     There are two types of data collection

              1. Primary data

              2. Secondary data

Primary data
 Primary data is personally developed data and it gives latest
information and offers much greater accuracy and reliability.
 There are various sources for obtaining primary data i.e., Mail survey,
personal interview,
 Field survey, panel research and observation approach etc.
 The study is dependent on primary data to a maximum extent, which
is collected by way of structures personal interview with customers.
Secondary data
Secondary data is the published data. It is already available for using and
its saves time. The mail source of secondary data are published market surveys,
government publications advertising research report and internal source such as
sales, sales records orders, customers complaints and other business record etc.
the study has also depended on secondary data to little extent, which is collected
through internal source.

Research Instrument:
Questionnaire was used to conduct the survey among 50 employees which
includes open-ended and closed ended questions

For this survey personal interview method was used for collecting primary
data. This survey was conducted by face to face interview with employees and
found to be best suited to collect the primary data for this project.

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Limitations of the study


· The study covers the office premises of HDFC Life at Hyderabad only.
Due to the limited sample size, the facts relabeled in the study may
not generalize.
· While calculating the percentages, approximations are made to the
nearest figures, for convenience in understanding.
· The analysis is based on employees’ opinion at the time of survey.
Suggestions and conclusions are based on the limited data.
· Due to time constraint the detailed information cannot be collected,
but many efforts are taken to collect the actual information.
· There was a constraint with regard to time allocation for the research
study i.e. for a period of 45 days.

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CHAPTER-2
Performance appraisal of employees
A Literature Review:
The amount of research regarding the topic “Performance Appraisal” is so
vast. The paper which is based on an observational study of the researchers’
daily work experiences and review of literature identified constraints to
performance appraisal in employees in the institutions, which includes the
current knowledge in Performance Appraisalfindings , as well as theoretical
and methodological contributions to a particular topic. Keyword:Performance
Appraisal, Human Resource Management, Literature Review Introduction:
Organization are run and steered by people and their labors. It is through
people that goals are set and objectives realized depend on the performance
of the employees. The performance of an organization is thus dependent upon
the sum total of the performance of its members. The success of an
organization, depend on its ability to measure accurately the performance of
its members and use it objectively to optimize them as a vital resource and
strength. The performance of an employee is his resultant behavior on task,
which can be observed and evaluated. It refers to the contribution made by an
individual in the accomplishment of organizational objectives. Performance
can be measured by some combination of quantity, quality, time, and cost.
Performance appraisal refers to all those procedures that are used to evaluate
the personality. the performance, and the potential of its group members.
Evaluation is different than judgment – the former being concerned with
performance, the latter with person

Literature review
Although the interest in and use of performance appraisal have increased over
the past 30 years, the practice of formally evaluating employees has existed for
centuries. As early as the third century AD., Sin Yu, an early Chinese
philosopher, criticized a biased rater employed by the Wei dynasty on the
grounds that "thy Imperial Rater of Nine Grades seldom rates men according
to their merits but always according to his like or dislikes" (Patten, 1977p.352).

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In 1648, the Dublin (Ireland) Evening Post allegedly rates legislators using a
rating scale based on personal qualities (Hackett, 1928). According to
Heilbroner (1953), the first industrial applicationof merit rating was probably
made by Robert Owen at his cotton mills in New Lanark, Scotland, in the early
1800s. Wooden cubes of different degrees of merit were hung over each
employee's workstation. As employee performance changed, so did the
appropriate wooden cube. The merit rating or efficiency rating in the Federal
Civil Service has been in place since at least 1887 (Petrie, 1950) and perhaps as
early as 1842 (Lopez, 1968).
One impetus to the development of performance appraisal in U.S. industry
(Patten, 1977) can be traced to the work of industrial psychologists at
Carnegie-Mellon University and their early work in salesman selection and
"man-to-man" rating forms on trait psychology (Scott, Clothier, & Spriegel,
1941). The man-to-man rating form was later used by the army in World War 1
to assess the performance of officers (Scott et al., 1941), although formal PA
probably began in the United States in1813 (Bellows &Estep, 1954) when army
General Lewis Cass submitted to the War Department an evaluation of each of
his men using such terms as "a goodnatured man" or "knave despised by all."
Although the man-to-man ranking by the department is not frequently used in
industry or in appraising performance, it can be an effective method for
determining the order of layoffs. In fact, in the late 1960sit was used by many
companies that experienced cutbacks in government contracts to make layoff
and retention decisions (Patten, 1977). This technique was known as the
"totem approach" to personnel cutbacks. After World War I,many of
individuals associated with the work of the man-to-man appraisal secured
positions in industry, in part because of business leaders were impressed by
the contribution of industrial psychologists to army research. Despiteearly
criticisms (Rudd, 1921), the graphics rating scale increased in popularity and
remainspredominant today. Just prior to and during World War II, the army
again sought assistance from psychologists to improve its rating system. The
outcome of these research efforts included the forced- choice and the critical-
incident approach to merit rating (Flanagan, 1949; Sisson, 1948). Appraisal of
industry employees became popular only after World War I, and appraisal of
managers was not widely practiced until after World War II. By the early 1950s,
appraisal was an accepted practice in many organizations. In 1962,
performance appraisal was conducted in 61 % of the organization surveyed

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(Spriegel, 19620) and typically top management was exempt from such ratings
(Whistler &Harper, 1962). After the passage of the 1964 civil Right Act and the
1966 and 1970 Equal Employment Opportunity Commission (EEOC) guidelines
for regulation of selection procedures, legal considerations exerted strong
pressure on the organization to formalize their appraisal systems (De Vise,
Morrison, Shullman&Gerlach, 1986). Federal legislation and the civil rights and
women's movements of the 1960s and 1970s created the need for rapid
improvements in organizational appraisal practices. Several surveys of business
organizations have indicated that between 74% and 89% of those surveyed
have a formal performance appraisal &Villere, 1979; Lazer&Wilkstrom, 1977).
Further, surveys concerning the prevalence of formal appraisal systems
indicated that approximately 765 of the city governments and 100% of the
state governments sampled had appraisal systems. Large organizations were
more likely to have performance appraisal than smaller organizations (95% and
84% respectively), and (74%) to middle (71 %) management levels were more
likely to have formal appraisals than top management (55%)
(Lazer&Wilkstrom, 1977). Finally, in a recent study, approximately 96% of the
organizations surveyed that had an industrial/organizational psychologist on
staff also had at least one formal performance appraisal system (Cleveland,
Murphy, &Williams, 1989). In general, then, performance appraisal appears to
be nearly universal, and the apparent importance of performance appraisal as
a tool for managing human resources has increased. DeVires and colleagues
(1986) point out two particular trends in the practice of PA during the past 30
years. First, appraisal methods have evolved from traits and essay approaches
to such behavioral and results- oriented methods as Behaviorally Anchored
Rating Scales (BARS) and Management by Objectives (MBO). A second trend
isthat the number of uses of PA in organizations has increased during the past
30 years. The earliest use of performance appraisal was as a basis for
administrative decisions such as promotions, salary increase and so on.
Throughout the 1960s and 1970s, however, performance appraisals were
increasing used for employee development and feedback, corporate
planning,legal documentation, system maintenance, and research. Finally,
performance appraisal represents one of the least popular aspects of human
resource management. As Meyer (1991) notes performance appraisal is one of
the most frequent sources of dissatisfaction in the entire human resource
system; neither supervisors nor subordinates look forward to appraisal, and
neither is likely to be totally satisfied with the appraisal system in their

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organization. George (1986) refers to the appraisal systems in many


organizations as "sterile paper chases". One possible reason for the
widespread dissatisfaction with performance appraisal in organizations is that
the systems used by organizations do not help them or their employees meet
important
The performance appraisal system has undergone a lot of changes over the
years as shown below: 1900 Subjective appraisals 1940 Increased
psychometric sophistication 1950 Management by objectives (MBO) 1960
BARS 1970-90 Hybrid system and approach.

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Reviews of Employees:
1.TCS

Great Place To Work


You always have that sense of security when you are employee of TCS. There
are lots of opportunities for your personal development, as well as carrer
development while you are working with TCS. Overall a great place to work.

2.CSS CORPORATION:

Great Place to Start carrerr:


You always have that sense of security when you are employee of TCS. There
are lots of opportunities for your personal development, as well as career
development while you are working with TCS. Overall a great place to work.

3.INFOSYS:

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It is a fantastic company with good process defined and support for


employees in a best way. It has lot of learning process where we can
learn in best tools and certifications.

4.APPLE:

Excellent working environment, infrastructure,training methods. Excellent


working environment, infrastructure,training methods. Amazing work
culture with creative methods, new things to learn each day. The
management is good too.

5.AMOZON:

Work is very very very monotonous.Not at all interesting.They expect to work


like robots.one defect and whole months performance gone.Daily continuous
you have to stare at screen 7.35 hours.you

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6.MICROSOFT:

My work at Microsoft is commendable, during initial days it was difficult for me


to manage the volume due to lack of process knowledge, over a period of time
I got expertised myself. I have learnt everything on the job.

7.WALMART:

It maintains its of legacy as fortune one company by giving so much benefit


and compensation that other companies can't match with him.

8.P&G:

Good work environment and culture. Teammates are supportive and the
management is transparent. There is a huge cafeteria and gaming arcade for
chilling.

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9.WIPRO:

Great really Great place to work. A Peaceful work environment. Great Team
with a helpful attitude. The company encourages learning and provides
vouchers for the successful completion of certification.

10.HCL:

It is a growing organization and has multiple mechanical engineering projects


currently. Many of the team size grow rapidly based on the skilled top
management. Top management and sales team gets more benefits here in
HCL.

11.TECH MAHENDHRA:

Tech Mahindra is an Indian multinational information technology services and


consulting company. Part of the Mahindra Group, the company is
headquartered in Pune and has it Tech Mahindra is a US$5.2 billion company
with 125,236 employees across 90 countries

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12.ITC:

ITC Limited with its 100+ years of business, has mastered the art of retaining
the best talent providing its employees freedom to excel in their roles,
mutually agreed KPIs, robust appraisal system and clear visibility of growth
opportunities. Very caring on and off the job. Best one can expect in the
industry.

13.L&T:

The few good things about working at L&T include: Job Security, Salary,
Growth opportunities. However, these things are overshadowed by poor work
environment with not much scope to learn and the fact that you will be posted
in very remote locations.

14.VALUE LABS:

Great place to work if not seeking challenging roles.


* Good WLB when in-office.

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* Free Lunch and Dinner in office pre-pandemic.


* Salary is all Base, so no 'package-inflation' with Variable and Stocks

15.HUL:

UniOps is the IT center in India for Unilever globally. IT is a stable mammoth


which provides the budget for experimentation and decent flexibility to shape
your career as well. The experience can be really goo

16.TOYOTA:

Good company.they give good knowledge about toyota . Supervisor support


was too good. good place to start,but donot expect about appointment

17.RELAINACE:

I have learned / gain excellent knowledge form Reliance Industries Limited


Excellent Health Safety Environment culture.

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Excellent HSE Management system.


Excellent welfare facilities for the employees.
Excellent provision of labour colony.
Excellent provision of canteen

18.ULTRA TECH CEMENT:

is good for all workers and our company provided all safety equipment and it is
very good to us..it is largest grinding plant in india... It cement quality also are
very good it.

19.BAJAJ MOTORS:

Good work environment and culture. Teammates are supportive and the
management is transparent. There is a huge cafeteria and gaming arcade for
chilling. Company policies are good,appraisals are fair and they give good
salary hike and bonus every year.

20.HDFC:

company culture is a set of attitudes, values, beliefs, goals, and other


characteristics a company or organization follows to create a gratifying
working.Though we move at a fast pace, and it might seem that.

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INDUSTRY PROFILE

CHAPTER-3
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INDUSRTY PROFILE
A Study on performance appraisal:
INTRODUCTION
With the start of industrial revolution in India around 17'' and 18" century
gave rise to growth of establishment of industries in India. Right from that
stage industries have been developing. With the increasing growth in demand
on back of rising income, expanding middle class and young population base, in
addition to a large pool of skilled manpower and growing technology, will
propel India to be among the world's top five auto-producers by 2015. India is
also one of the key markets for hybrid and electric medium-heavy-duty trucks
and buses. India is an extremely important market for Hyundai. The Indian
automobile sector is poised for steady and strong growth in the future. The
Indian automobile industry holds good growth potential for the mid-term and
long term horizon, as per Mr. Bo Shin Seo, MD and CEO, Hyundai Motor India
Ltd (HMIL). Moreover, Ford Motor Co plans to convert India into global
production centre for compact cars, once its Sanand plant in Gujarat comes on
stream in 2014, under a project codenamed 8562 that may induce three
different compact cars from the same platform. KEY STATISTICS The Indian
automobile industry produced a total 1.69 million vehicles including passenger
vehicles, commercial vehicles, three wheelers and two wheelers in August
2013 as against 1.56 million In August 2012, registering a growth of 8.18
percent over the same month last year. The cumulative Foreign Direct
Investment (FDI) inflow into the Indian automobile industry during April 2000
to July 2013 was recorded at US$ 8.932 million, amounting to 4.5 per cent of
the total FDI inflows (in terms of U55). as per data published by Department of
Industrial Policy and Promotion (DIPP), Ministry of Commerce. The overall
automobile experts grew by 2.03 per cent during April-August 2013,
Furthermore, the production of passenger vehicles in India was recorded at
313 million in 2012-13 and is expected to grow at a Compound Annual Growth
Rate (CAGR) of 13 per cent during 2012-2021, as per data published by
Automotive Component Manufacturers' Association of India (ACMA).

MAJOR DEVELOPMENTS & INVESTMENTS

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• Hero MotoCorp plans to establish 20 manufacturing and assembly facilities


to expand its presence across SO countries by 2020.
• Nissan Motor India, the Indian unit of Japanese auto maker Nissan Motor Co
Ltd, has entered into an agreement with Ennore Port Ltd (EPL), to export at
least 60,000 cars a year through the port for the next 10 years
• WS Motor Co plans to launch two new motorcycle models in the Kenyan
market. These motorcycles will be specific to the Kenyan markets in terms of
usability, reliability and durability. Moreover, the firm also plans to set up a
two-wheeler assembly line in Uganda and will also launch two motorcycle
models in the African nation.
• HMIL has invested US$ 2 billion in two state-of-the-art passenger car
manufacturing facilities in India. Moreso, India contributes 25 per cent of the
firm's global sales.
• Mahindra & Mahindra (M&M) plans capital expenditure and investments
worth Rs 10,000 crore (US$ 1.63 billion) over the next two years.
• Maruti Suzuki India Ltd (MSIL) is setting up an operational integrated
research & development (R&D) centre in Rohtak, Haryana. The test tracks at
the new facility would be longer and considerably enhanced in technical
capabilities than the ones at the Suzuki Motor Corp (SMC) facility in Japan.
• Tech Mahindra has signed an agreement with Volvo Car Corporation, The IT
company will provide Volvo with a service to maintain and develop a range of
applications that can increase efficiency and reduce costs.
• Isuzu Motors India plans to start contract manufacturing of its Sports Utility
Vehicles (SUV) and pick-up trucks at Hindustan Motors (HM) Chennai plant
from December 2013.
Daimler India Commercial Vehicles (DICV) has expanded its network across the
country. The company plans to establish Government Initiatives

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Initiative from government


The Government of India plans to introduce fuel
•efficiency ratings for automobiles to encourage sale of cars that consume less
petrol or diesel, as per Mr. Veerappa Molly, Union Minister for Petroleum and
Natural Gas, Government of India, The Union Budget 2013-14 added some
incentives to the industry. The analysis by Deloitte on the Union Budget
highlighted the following points:
• The period of concession available for specified part of electric and hybrid
vehicles till April 2013 has been extended up to March 31, 2015
• The basic customs duty (BCD) on imported luxury goods such as high-end
motor vehicles, motor cycles, yachts and similar vessels was increased. The
duty was raised from 75 per cent to 100 per cent on cars/ motor vehicles
(irrespective of engine capacity) with CIF value more than US$ 40,000; from 60
per cent to 75 per cent on motorcycles with engine capacity of 800 cc or more
and on yachts and similar vessels from 10 per cent to 25 per cent
• In addition, an increase in excise duty from 27 to 30 per cent has been
allowed for SUVs with engine capacity exceeding 1,500 cc, while excise duty
was decreased from 80 to 72 per cent, in case of SUVs registered solely to be
used for taxi purposes
• An exemption from BCD on lithium ion automotive battery for manufacture
of lithium ion battery packs for supply to manufacturers of hybrid and electric
vehicles
• The excise duty on chassis of diesel motor vehicles for transport of goods
reduced from 14 per cent to 13 per cent The Government of India allows 100
per cent F DI in the automotive industry through automatic route. The
Government also plans to accelerate the supply of electric vehicles over the
next eight years. It is expected that there will be a demand for 5-7 million
electricityoperated vehicles by 2020. With special focus on exports of small
cars. MUVs, two & three wheelers and auto components; the automotive
sector's contribution to the gross domestic product (GOP) is expected to
double reaching a turnover worth US$ 145 billion In 2016, according to the
Automotive Mission Plan (AMP) 2006-2016.

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Road a head
India is probably the most competitive country in the world for the automotive
industry. It does not cover 100 per cent of technology or components required
to make a car but it is giving a good 97 per cent," highlighted Mr. Vicent Cobee,
Corporate Vice-President, Nissan Motor's Datsun. The vision of AMP 2006-
2016 sees India, "to emerge as the destination of choice in the world for design
and manufacture of automobiles and auto components with output reaching a
level of US$ 145 billion; accounting for more than 10 per cent of the GDP and
providing additional employment to 25 million people by 2016."

INDIA: THE Global hub


The automotive supplier firm Cooper Standard inaugurated a manufacturing
facility at Bawal in Haryana, which will initially manufacture rubber sealing and
trims for Volkswagen models in India, at an investment of around US$ 7
million. The total estimated market for sealing and trim in India is estimated to
reach US$ 180 million and fuel and brake delivery market is estimated to be
worth USS 125 million. "The Indian automotive industry is robust and we
foresee higher demand for our products" said Mr. Jeff Edwards, Chairman &
CEO, Cooper Standard
NMB-Minebea India Pvt Ltd, a wholly-owned subsidiary of Minebea Co
Ltd (Minebea), a global manufacturer of miniature and small-sized bearings
and precision components, announced commencement of its operations in
Gurgaon, India. The component maker foresees large market potential for its
products range.
Tenneco, a US$ 7.4 billion firm headquartered in Lake Forest-Illinois in the
US, opened its DynaChrorne high speed hard chromium plating facility for
piston rods at its Hosur plant in Tamil Nadu (TN).
Malaysia's Petronas is setting up a lubricants' plant near Murnbai with the
aim of capturing a greater share of the growing Indian lubes market that is
expected to touch nearly US$ 8 billion by 2017. India is the fifth largest
lubricants market in the world. Tide Water Oil has decided to re-launch the
brand Veedol in European markets, including Germany. Austria and
Switzerland.

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The cumulative EDI inflow into the Indian automobile industry during April
2000 to July 2013 was recorded at US$ 8,932 million, amounting to 4.5 per
cent of the total WI inflows (in terms of US$), as per data published by
Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce,
Government of India.

Key Developments & Investments


 Auto component major Anand Automotive plans to invest Rs 1,200 crore
(USS 194.45 million) over the next five years on new product
development and capacity expansion
 Base Batteries plans to spend Rs 1,000 crore (USS 162.07 million) over
four years to set up new plants and expand existing ones at Hosur, TN
and Solan, Himachal Pradesh. The organized automobile batteries
market is estimated at Rs 4,000 crore (US$ 648.28 million).
 KLT Automotive & Tubular Products, manufacturers of chassis and
related components, will invest over Rs 320 crore (USS 51.86 million) in
setting up two chassis manufacturing units in Chennai and Sri City and
will also expand their existing unit, The Sri City unit will meet the needs
of the Japanese OEMs setting up manufacturing units there.
 A Raymond inaugurated its first plant in India, at Chakan, Pune with an
investment of US$ 7 million. The new plant will manufactures various
plastic fasteners like rib locks, trim clips, cable straps etc. All these
components will primarily cater to the Indian and global passenger car
and utility car segment.
 Greaves Cotton Ltd will supply single cylinder diesel engines to power
TVS Motor's three-wheeler auto-rickshaws.

Auto mobile regulation in india


The Indian automobile industry is the tenth largest in the world. It has an
annual production of approximately 2 million units. India is set to be a key role
in automotive sector. There has been a sustained growth in the automotive
sector of India following the economic reforms of 1991 which opened up 100
percent Foreign Direct Investment in this sector. The industry has been
growing annually at 20 per cent
The automotive regulations in India are governed by the Ministry of Shipping,
Road Transport & Highways (MSRT&H) and other ministries such as Ministry of

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Environment & Forests and Ministry of Petroleum & Natural Gas also have a
vital role in the formulation of automotive regulations and standards in India.
The major acts governing the automotive sector in India are
• Motor Vehicles Act, 1988 (MVA)
• Central Motor Vehicles Rules 1989 (CMVR)
MSRT&H has constituted some committees are formed to advise the ministry
on Safety and Emission Regulations. These are:
• Central Motor Vehicles Rules-Technical Standing Committee (CMVR-TSC)
• Standing Committee on Implementation of Emission Legislation (SCOE)
Central Motor Vehicles Rules-Technical Standing Committee (CMVR-TSC) was
formulated to receive draft recommendations from other committees, such as
Automotive Industry Standards Committee and Bureau of Indian Standards,
and to finalize and approve safety recommendations made by such
committees.

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COMPANY PROFILE

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Chapter 4
COMPANY PROFILE
LEELAKRISHNA TOYATA:

Established in the year 2011, Leela Krishna in Maddi Lapalem, Visakhapatnam


is a top player in the category car-dealers, Toyota in the Visakhapatnam. This is
well-known establishment act as a one stop destination servicing customers
both local and from other parts. Toyota sells its cars in Rajahmundry (dealer)
through a comprehensive network of dealers spread across the city.Which is
Established in the year 2010.
Dealer Principle: Mr.M.V. Srinivas.

Dealer Mission:
Placing customer satisfaction first, integrating sales with service and service
parts in a single convenient location, we contribute to speedy and effective
service. Leela Krishna Toyota in Palacherla, Rajahmundry is a top player in the
category car Dealers- Toyota in Rajahmundry.

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VISION
We share a passion to build an emphasis brand focused on individual and
business needs to achieve organization excellence as a sustainable competitive
advantage.

MISSION
To recruit retain and develop a highly competitive diverse workforce that
supports the mission, vision and values of Toyota.
• Total Customer Satisfaction is our Mission. To achieve this, we will always
strive to improve Processes continuously and deliver Quality Service as per
Customer needs and thus build.
Shri.V.R.Deshpande memorial trust is a sister concern organization and also a
proud partner of Toyota as T-TEP (Toyota-Technical Education Program)
Institute, to develop career for rural students.
The journey of Viva Toyota in reaching this position took a long time. It
traveled a long journey to reach this position. In the initial it established its 3s
facility showroom in Hubli on 28" April 2001. Secondly in 3s facility showroom
Belga um on 30° October 2010. It established first sales is fadlity showroom in
Hebbal on 24° January 2011 which deals with only with the sales of Toyota
cars. On the same day it opened is and Zs facility stations in Hebbal and Kogilu
respectively. It started its 3s station at Hunsemaranahalli on 18" Feb 2012. 2s
station at Kogilu deals with service and spare parts of the cars and where as 3s
station at Hunsernaranahalli operates all the three functions i.e., sales, service
and spare parts.

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YEAR NAME OF THE LOCATION


BRANCH
Shodha
2001 Shodha Toyota Hubli Toyota's
concerned
company 'v-
2010 Leela Krishna Vizag trust deals with
Toyota sales of old cars
i.e., buying old
cars from
2011 Viva Toyota (1s) Hebbel
customers and
selling them.
The cars are
2011 Viva Toyota (2s) Rajahmundry
also renovated
only if needed.
This experiment
2012 Viva Toyota (3s) Hamsaranahalli yielded a good
result to them.

TOYOTA WAY OF RESPECT – “SAN”


SAN is a Japanese word which will be used to respect the individuals. In
Toyota group each employee is recognized and is given respect irrespective of
the gender by using a 16 common word 'SAW. In English "Mr.", "Miss", "Mrs."
is used as title to call any person with respect. EX: English = Mr. Santhosh,
Mrs.Nandini Japan =Santhosh San, Nandini San Each employee being a group
of Toyota family follows the way of respecting the individual and practices the
same.

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FACILITIES IN TOYOTA:
Toyota Private Limited provides the entire range of products and services
avail-able in the Indian Toyota market. Viva is the pioneers of new and services
available in the Toyota. The main aim of Viva is to increase sales and provide
quality service for customer satisfaction. There are three major facilities
providing by the Viva Toyota for the customers and they are categorized as
follows.

SALES OUTLETS
Viva has its own authorized service network divided in to certain sections
for ease cures of Toyota owners. There are service divisions, Toyota genuine
parts division, vehicle sale division. Toyota insurance renewal division, Toyota
accessories division and Toyota true value exchange division.

SERVICE OUTLETS
Viva Private Limited has about 6 service network available through
Karnataka for immediate service work. All workshops are ideally located in all
the cities. Expertise service personnel will be helping the vehicle problems.

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Breakdown, accident recovery vehicles are available to you round the dock.
Viva had the facilities for insurance renewal.

SPARE PARTS
Communications plays very important role for running spare parts
operations effectively and efficiently. Toyota spare parts department got with
online transactions. It connects TKM and Viva branch spare parts. Network
spare parts availability and other spare parts related enquiry can check with
through network system.

DIFFERENT FUNCTIONS AND THEIR ROLES


The different functions of Shodha / Viva Toyota are
. • Finance
• Human resource
• Training
• IT
• Insurance
• Customer Relations
• Retail Finance
• Marketing

FINANCE:
All the financial activities are under the direct control of executive director.
Chief Accountant Officer is in-charge of all money transition in each
department. The team of finance and accounts record each and every
transaction with the help of system. Special accounting packages like tally and
excel are used by the organization for recording monitory transactions. This
department also deals with financial and budgetary control, accounting of
expenditure on works, costing of services and operation of facilitate cost
control, property, lease infrastructure, cost of stock, payment of salary,
managing funds, incentives and remuneration preparation of budget,
appropriation of accounts, treasury management, custody of funds, internal
and external records, debt administration, statutory and tax reports etc. the
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company also manages Inventory Funding as per the requirements of Toyota


Kirloskai machines (T.K.M).

OBJECTIVES:
• Profit Maximization
• Wealth Maximization

THE MAIN ACCOUNTING PROCESS THAT ARE


PERFORMED IN VIVA TOYOTA:
• Payment to suppliers.
• Purchasing Invoice records.
• Making the notes of payments received from clients.
• Closing of receivable invoices.

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PERFORMANCE APPARAISAL
The term performance appraisal refers to the regular review of an
employee's job performance and overall contribution to a company. Also
known as an annual review, performance review or evaluation, or employee
appraisal, a performance appraisal evaluates an employee’s skills,
achievements, and growth, or lack thereof.
Companies use performance appraisals to give employees big-picture
feedback on their work and to justify pay increases and bonuses, as well
termination decisions. They can be conducted at any given time but tend to be
annual, semi-annual, or quarterly.

How Performance Appraisals Work


Performance appraisals are usually design human resource (HR)
departments as a way for employees to develop in their careers. They provide
individuals with feedback on their job performance. It ensures that employees

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are managing and meeting the goals expected of them, giving them guidance
on how to reach them if they fall short.

Because companies have a limited pool of funds from which to award


incentives, such as raises and bounces, performance appraisals help
determine how to allocate those funds. They provide a way for companies to
determine which employees have contributed the most to the company’s
growth so companies can reward their top-performing employees accordingly.

Performance appraisals also help employees and their managers create a


plan for employee development through additional training and increased
responsibilities, as well as to identify ways the employee can improve and
move forward in their career.

Ideally, the performance appraisal is not the only time during the year that
managers and employees communicate about the employee’s contributions.
More frequent conversations help keep everyone on the same page,
develop stronger relationships between employees and managers, and make
annual reviews less stressful.

Types of Performance Appraisals


Most performance appraisals are top-down, meaning supervisors evaluate
their staff with no input from the subject. But there are other types:

 Self-assessment: Individuals rate their job performance and


behavior.
 Peer assessment: An individual's workgroup or coworkers rate their
performance.
 360-degree feedback assessment: Includes input from an individual,
supervisor, and peers.
 Negotiated appraisal: A newer trend that utilizes a mediator and
attempts to moderate the adversarial nature of performance
evaluations by allowing the subject to present first. Also focuses on
what the individual is doing right before any criticism is given. This
structure tends to be useful during conflicts between subordinates
and supervisors.

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Criticism of Performance Appraisals


Performance appraisals are designed to motivate employees to reach
and/or exceed their goals. But they do come with a lot of criticism.

An issue with performance appraisals is that differentiating individual and


organizational performance can be difficult. If the evaluation's construction
doesn't reflect the culture of a company or organization, it can be detrimental.
Employees report general dissatisfaction with their performance appraisal
processes. Other potential issues include:

 Distrust of the appraisal can lead to issues between subordinates and


supervisors or a situation in which employees merely tailor their input
to please their employer.
 Performance appraisals can lead to the adoption of unreasonable goals
that demoralize workers or incentivize them to engage in unethical
practices.
 Some labor experts believe that the use of performance appraisals has
led to lower use of merit- and performance-based compensation.

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 Performance appraisals may lead to unfair evaluations in which


employees are judged not by their accomplishments but by their
likability. They can also lead to managers giving underperforming
staff a good evaluation to avoid souring their relationship.
 Unreliable raters can introduce a number of biases that skew
appraisal results toward preferred characteristics or ones that
reflect the rater's preferences.
 Performance appraisals that work well in one culture or job
function may not be useful in another.

Advantages of Performance Appraisal


1. procedure. Future changes in selection methods can be made
in this regard.

Communication: For an organization, effective communication


between employees and employers is very important. Through
performance appraisal, communication can be sought for in the
following ways: It is said that performance appraisal is an investment for the
company which can be justified by following advantages:

1. Promotion: Performance Appraisal helps the supervisors to chalk out


the promotion programmes for efficient employees. In this regards,
inefficient workers can be dismissed or demoted in case.
2. Compensation: Performance Appraisal helps in chalking out
compensation packages for employees. Merit rating is possible through
performance appraisal. Performance Appraisal tries to give worth to a
performance. Compensation packages which includes bonus, high salary
rates, extra benefits, allowances and pre-requisites are dependent on
performance appraisal. The criteria should be merit rather than
seniority.
3. Employees Development: The systematic procedure of performance
appraisal helps the supervisors to frame training policies and
programmes. It helps to analyse strengths and weaknesses of employees
so that new jobs can be designed for efficient employees. It also helps in
framing future development programmes.
4. Selection Validation: Performance Appraisal helps the supervisors to
understand the validity and importance of the selection procedure. The
supervisors come to know the validity and thereby the strengths and
weaknesses of selection
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a. Through performance appraisal, the employers can


understand and accept skills of subordinates.
b. The subordinates can also understand and create a trust
and confidence in superiors.
c. It also helps in maintaining cordial and congenial labour
management relationship.
d. It develops the spirit of work and boosts the morale of
employees.

All the above factors ensure effective communication.

5. Motivation: Performance appraisal serves as a motivation tool.


Through evaluating performance of employees, a person’s
efficiency can be determined if the targets are achieved. This
very well motivates a person for better job and helps him to
improve his performance in the future.

Performance Appraisal Tools and Techniques


Following are the tools used by the organizations for Performance Appraisals
of their employees.

1. Ranking
2. Paired Comparison
3. Forced Distribution
4. Confidential Report
5. Essay Evaluation
6. Critical Incident
7. Checklists
8. Graphic Rating Scale
9. BARS
10.Forced Choice Method
11.MBO
12.Field Review Technique
13.Performance

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Ranking Method

The ranking system requires the rater to rank his subordinates on overall
performance. This consists in simply putting a man in a rank order. Under this
method, the ranking of an employee in a work group is done against that of
another employee. The relative position of each employee is tested in terms of
his numerical rank. It may also be done by ranking a person on his job
performance against another member of the competitive group.

Advantages of Ranking Method

i. Employees are ranked according to their performance levels.


ii. It is easier to rank the best and the worst employee.

Limitations of Ranking Method

i. The “whole man” is compared with another “whole man” in this


method. In practice, it is very difficult to compare individuals
possessing various individual traits.
ii. This method speaks only of the position where an employee
stands in his group. It does not test anything about how much

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better or how much worse an employee is when compared to


another employee.
iii. When a large number of employees are working, ranking of
individuals become a difficult issue.
iv.
i. There is no systematic procedure for ranking individuals
in the organization. The ranking system does not
eliminate the possibility of snap judgements.
ii.
v. Forced Distribution method

This is a ranking technique where raters are required to


allocate a certain percentage of rates to certain categories (eg:
superior, above average, average) or percentiles (eg: top 10
percent, bottom 20 percent etc). Both the number of categories
and percentage of employees to be allotted to each category
are a function of performance appraisal design and format. The
workers of outstanding merit may be placed at top 10 percent
of the scale, the rest may be placed as 20 % good, 40 %
outstanding, 20 % fair and 10 % fair.

Advantages of Forced Distribution

i. This method tends to eliminate raters bias


ii. By forcing the distribution according to pre-determined
percentages, the problem of making use of different
raters with different scales is avoided.

Critical Incident techniques

Under this method, the manager prepares lists of statements of very


effective and ineffective behaviour of an employee. These critical
incidents or events represent the outstanding or poor behaviour of
employees or the job. The manager maintains logs of each
employee, whereby he periodically records critical incidents of the
workers behaviour. At the end of the rating period, these recorded
critical incidents are used in the evaluation of the worker’s

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performance. Example of a good critical incident of a Customer


Relations Officer is : March 12 - The Officer patiently attended to a
customers complaint. He was very polite and prompt in attending
the customers problem.

Advantages of Critical Incident techniques


i. This method provides an objective basis for conducting a
thorough discussion of an employees performance.
ii. This method avoids recency bias (most recent incidents are too
much emphasized)

Checklists and Weighted Checklists


In this system, a large number of statements that describe a specific
job are given. Each statement has a weight or scale value attached to
it. While rating an employee the supervisor checks all those
statements that most closely describe the behaviour of the individual
under assessment. The rating sheet is then scored by averaging the
weights of all the statements checked by the rater. A checklist is
constructed for each job by having persons who are quite familiar
with the jobs. These statements are then categorized by the judges
and weights are assigned to the statements in accordance with the
value attached by the judge

PROCESS OF PERFORMANCE APPARAISAL

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1. The assessment process is usually facilitated by Human


Resources, who assist managers and supervisors in
conducting the individual appraisals within their departments.

2. An assessment method should be established.

3. Required competencies and job expectations need to be


drafted for each employee.

4. Individual appraisals on employee performance are


conducted.

5. A one interview is scheduled between the manager and


employee to discuss the review.

6. Future goals should be discussed between employee and


manager.

7. A signed-off version of the performance review is archived.

8. Appraisal information is utilized by human resources for


appropriate organizational purposes, such as reporting,
promotions, bonuses or succession planning.

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PROGRAMMES CONDUCTEDBY THE ORGNISATION:


(TOYOTA)
• Blood donation camps

• International women's day celebration

• Medical check-up

• Dealer foundation day

• Annual day

• Traditional day EMPLOYEE DELIGHT PROGRAMME

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• “SANTHE”

• Employee common fund

• Canteen facilities

• Team building activities

• Family get-together

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How to organize a performance


appraisal process
Conducting a performance review with an employee requires skill and
training on the part of the appraiser. The negative perception that is
often associated with the performance appraisal is due in part to a
feeling of being criticized during the process.

A performance appraisal is meant to be the complete opposite. Often,


the culprit is in the way the appraisal is conducted via the use of
language.

The way the sender of a message uses language determines how the
other person interprets the message once received. This can include
tone of voice, choice of words, or even body language .

Because a performance appraisal is meant to provide constructive


feedback, it is crucial that appropriate language and behavior are used in
the process.

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THEORETICAL DATA
This chapter aims to explain the theoretical support from the mainstream
theories towards these fourteen principles

1. In order to better understand the Toyota Way model, each individual layer
(i.e. Toyota philosophy, process, people/partner and problem-solving) will seek
the theoretical support from the mainstream theories.

2. The theory of the business, production theory, different schools of


management thinking’s, and theory of quality management seem to be relevant
and can be used as the theoretical sources.

3. Theory of the business: Peter Drucker's (1994) theory of the business can be
used to link the Toyota Way Philosophy model.

4. Production model: Koskela's (2000) interpretation of production has been


elaborated earlier. In this part, it starts with discussing the Flow model of the
TFV model with the process layer of the Toyota Way. Efforts are then made to
connect the TFV model to the remaining layers of the Toyota Way model.

5. Human resource management: These will seek the theoretical support for the
Toyota Way People and Partners model. Management the gies in the production
management domain

6. It provided a general understanding of each school of management thought


which are based on somewhat difference assumptions about human beings and
the organizations for which they work

7. However, this section discuses the leadership theory and motivation theories
that the Toyota Way model uses to develop their leaders and employees
respectively.

8. Quality management paradigm: The problem-solving principles of the Toyota


Way can be understood as Toyota's quality management philosophy.

9. This is because Toyota is dedicated to continuously solve root problems

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10. Hence, the theory of quality management and learning organization will be
reviewed. The Toyata Way Philosophy model: linking the theory of the business
Peter Drucker (Drucker, 1994) contended that every organization operates to a
"theory" of its business built upon an assumptive framework which guides and
nurtures the organization's activities.

1.Introduction
It is widely recognised within operations management that when it
comes to production and supply chain efficiency, not many companies can rival
Toyota Motor Corporation (TMC) (Finch 2008; Lander and Liker 2007; New
2007; Womack and Jones 2003). One aspect that sets Toyota apart from others
is its unique Toyota Production System (TPS), which integrates the people of
Toyota with its technical system. This socio-technical manufacturing system
was first published by Sugimori et al. (1977), followed by further dissemination
by one of Toyota’s founding engineers, Ohno (1988). At the very outset of his
book, Ohno asserts that TPS can be viewed not only as a unique and efficient
production system, but also as a philosophy of getting the best out of its people
(Toyota and its partners) through developing the human resources. Many
scholars (e.g. Dyer and Nobeoka 2000; Jayaram, Das, and Nicole 2010; Lander
and Liker 2007; Liker 2003; Monden 1998; Rother 2010; Spear and Bowen
1999; Womack, Jones, and Roos 1990) have since researched the TPS in detail,
and extensive literature on the TPS as a prescriptive set of tools, techniques and
management practices is widely available. TPS has more recently come to be
generalised globally as being virtually synonymous with Lean, or Lean thinking
(e.g. Womack and Jones 2003), through the mechanisms described as follows:

1. Literature review
The following review will attempt to delineate the central constructs
within the TW (and TPS, where relevant), and summarise previous empirical
research with the purpose of establishing our underlying theoretical model and
analytical methodology

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2. Methodology
Postulating the theoretical framework for empirical testing We
used the TW conceptual framework developed by Toyota (Figure 1) as the
starting point. The two constructs CI and respect for people in the conceptual
model are indicated by three measures (challenge, kaizen, and genchi
genbutsu) and two measures (respect and teamwork), respectively. Based on
the works of Rother (2010) and Womack (2007), as analysed in the literature
review, we justified the use of the above five measures to capture the
conceptual domains of their two underlying constructs. The labels given by
Toyota to the two constructs of their conceptual model may cause some
confusion with the labels given to their measures. For example, CI confounds
with the operational measure kaizen. We argued earlier (Section 2.1) that as
far as Toyota’s conceptual model is concerned the term ‘kaizen’ basically
means kaizen activities conducted by quality/work improvement teams. To
avoid label conflicts, we replaced the labels CI and respect for people with
process improvement and people development, respectively. We provide the
general meaning of these two constructs as follows: Process improvement is a
construct that captures the level of CI activities as reflected by the level of
kaizen activities, long-term focus (challenge), and tackling problems at the
source (genchi genbutsu) (Figure 1). If CI was to be measured through
responses from employees in a Toyota production line, much of the CI
activities would relate to eliminating waste (Shimizu 2007; Sugimori et al.
1977). People development is a construct that captures the degree of human
resource development that takes place in a culture that values problem solving
through teamwork and mentoring (Rother 2010; Womack 2007). In Toyota’s
conceptual framework (Figure 1), people development is termed respect for
people, which should not be interpreted as some kind of laissez-faire
leadership style (see Section 2.1). Propositions in the literature (e.g. Emiliani
2006; Liker 2003; Rother 2010; Schroeder, Bates, and Junttila 2002) suggest
that it is people development that actually enables process improvement. For
example, Emiliani observes the following: The correct practice of Toyota’s
management system – lean management – would require, at a minimum,
acknowledgement and practice by management of both principles: continuous
improvement and respect for people. However, most managers practice only
the first principle, continuous improvement, which greatly limits amount of

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improvement that can be achieved … It is the second principle, respect for


people, that enables the first principle.

4.Results
The factor structure based on the EFA The initial (un-rotated)
eigenvalues of the factors whose eigenvalue was greater than 1.00 were: 11.31
(this factor extracts 47.1% total variance); 1.22 (this factor extracts 5.1% total
variance); and 1.06 (this factor extracts 4.4% total variance). The eigenvalues
suggested that the 24 questionnaire items under review (the first 24
questionnaire items in Appendix 2) can be represented by three factors with
the possibility of eliminating the third factor (owing to its close to cut-off
eigenvalue). The scree plot (not shown) as well as the three-factor rotated
solution did not justify a third factor. Hence subsequently, SPSS was prompted
to generate two factors only. Table 1 shows the rotated (varimax) factor matrix
for both the three-factor solution (discarded) and the two-factor solution.
Results shown in Table 1 suggest that two unidimensional factors indeed exist.
Out of the 24 questionnaire items, 3 items (Q13, Q20 and Q24) did not show
evidence of a relationship with either of the two factors because these showed
weak loadings

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CHAPTER-5
DATA ANALYSIS & INTERPRETATION
Table No 1
Table showing customers’ knowing about Toyota cars?
Particulars No of respondents
Sales 54
Showroom 36
News paper 2
Hoarding 8
TV 0
Graph No 1
Graph showing customers’ knowing about Toyota cars

How did come to know about Toyota

ANALYSIS
From the above table we can analyze that 54% of the respondents got to
know through sales, 36% from from the showrooms,8% by hoardings and 2%
got to know newspaper and none from TV

INTERPRETATION

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We can conclude that word of mouth communication has played a vital


role and TV advertisements will have to given more stress.
Table No 2
Table showing Toyota Company advertisement
Particulars No of respondents
Excellent 34
very good 54
Neutral 12
Good 0
Poor 0

Graph No 2
Graph showing Toyota Company advertisement

ANALYSIS
From the above table we can analyze that 34%of the respondents have reported
advertisement is excellent, 54% of them have reported very good and 12%
found it neutral.

INTERPRETATION

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From the above data we can interpret that all the respondents are fully satisfied
or at least partially satisfied with the advertising since there are no negative
remarks
Table no 3
Table showing Rate of the Toyota sales person.
Particulars No of respondents
Excellent 30
Very good 36
Good 30
Poor 4

Graph no 3
Graph showing rate of the Toyota sales person.

ANALYSIS
From the above table we can analyze that 30%of them have felt excellent about
sales persons, 36% have felt very good and 30% have felt good but only 4%
have felt that it is poor

INTERPRETATION
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Form the data above we can consider that toyota sales persons are good and
satisfaction for the customers is high.

Table no 4
Table showing Awareness of all the models and prices of TOYOTA
Particulars No of respondents
Yes 65
No 35

Graph no 4
Graph showing Awareness of all the models and prices of TOYOTA

ANALYSIS
From the above data we can analyze that 65% of the respondents are aware of
all the brands of Toyota and 35% are still unaware about it
INTERPRETATION
Company will have still focus on awareness program of their company
prospectus. So that many people would know their products.

Table no 5

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Table showing dealer offering finance providers.


Particulars No of respondents
Yes 64
NO 36

Graph no 5
Graph showing offering finance providers.

ANALYSIS
From the above data we got to know that 64% of the respondents got financial
assistance from the dealers and 36% were unable to get the assistance .
INTERPRETATION
As we can see from the data few customers wanted finance and we must try to
achieve and help our customers to maximum extent.

Table no 6

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Table showing Sales person appearance.


Particulars No of respondents
1 0
2 0
3 0
4 4
5 6
6 6
7 18
8 34
9 20
10 10

Graph No 6
Graph showing Sales person appearance.

ANALYSIS
Maximum number of customers have liked the appearance of the sales people.

Table No 7

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Table Showing courtesy and friendliness.


Particulars No of respondents
1 0
2 0
3 2
4 6
5 6
6 0
7 16
8 14
9 40
10 16

Graph No 7
Graph showing courtesy and friendliness

ANALYSIS
From the above data we can analyze that customers are happy about the friendly
nature of the services center.

Table No 8

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Table showing sufficient time allowed before deciding.


Particulars No of respondents
1 2
2 0
3 0
4 2
5 6
6 0
7 14
8 26
9 26
10 20

Graph no 8
Graph showing sufficient time allowed before deciding.

ANALYSIS
From the above table we can analyze that company does not pamper the
customers to take decisions in a hurry

Table No 9

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Table showing sales person knowledge about vehicles.


Particulars No of respondents
1 0
2 0
3 6
4 4
5 0
6 2
7 16
8 18
9 34
10 18

Graph no 9
Graph showing sales person knowledge about vehicles.

Sales person knowlege vehicles

Series2
Series1

ANALYSIS
From the above data we found that customers are satisfied with what
information sales men give

CHAPTER-6
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FINDINGS
Almost all the employees in the organization are employed between 1-2
years. There is a Toyota performance appraisal programmes impart world-
class skills training to young talents of rural Karnataka. For Training and
Development in Toyota TTTI provides a dedicated 3year programmee that
focuses on the holistic development of knowledge, skill, body, attitude. In
order to ensure that there is effective human resource management they
provide organizational learning as well as staff training and development. As a
result, due to performance appraisal has become a very important aspect of
promoting success in the company. With a structure that ensures the highest
standard of education, the curriculum offers a complete learning experience,
along with basic subjects, recreational activities and comprehensive
evolutionary programmes on automobile assembly, automobile paint,
automobile weld and mechatronics, Inaddition, students are given practical
training by applying world renowned” Toyota Production System’s to the
various manufacturing processes at the Toyota Plant in Biadi. The training
program supports skilled trade internships for its workers, in house training
apprenticeship and programs, career planning services, online employee skills
inventory and online training programmes
Employees can be motivated by appraisal through the performance and
giving rewards to get them satisfy.
through the performance appraisal we can also increase the turn over of the
company
Self-development. Performance can also serve as an aid to employee self-
development

SUGGESTIONS
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 Begin with a strong performance plan.


 Use a uniform evaluation cycle. ...
 Require regular coaching and feedback. ...
 Formal hold interim reviews.
 Set clear expectations for supervisors. ...
 Provide provide supervisor training. ...
 Provide HR support to supervisors.
 Build that values feedback.

 Prepare. Identify key issues/themes that need to be discussed. Give


employees a draft evaluation with enough time to review and come
prepared to the evaluation conference.
 Avoid surprises. The evaluation conference shouldn’t be the first time an
employee hears about a performance problem or receives recognition
for an accomplishment.
 Be specific. Clearly explain accomplishments and failures. Refer to the
deliverables in the performance plan. Describe the impact of
achievements or performance issues.
 Be balanced. Document both good and bad performance. Capture
specific awards and commendation, as well as corrective or disciplinary
action and performance improvement plans. Make sure to evaluate the
entire year, and avoid the ‘halo/horn effect’ of evaluating only the most
recent performance.
 Be succinct. Focus on the key deliverables and issues. Avoid details that
don’t pertain to the employee’s performance.
 Be constructive. Focus on what the employee needs to do next to either
develop knowledge and skills, or improve performance.

Potential Challenges

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 Overloading supervisors:

 Supervisors are commonly assigned other deliverables in addition to


their supervisory duties.  Be careful not to assign so much work that
supervisors lack time to complete evaluations. Consider this when making
decisions about organizational structure and lines of service.

 Employee resistance:

 Some employees don’t expect or want to have their performance


evaluated. Help them see the benefits of evaluations. Teach them to expect
supervisors to invest time to help them be successful.

 Lack of executive support:

To achieve meaning evaluations, senior leadership must communicate


its expectations, evaluate their own direct reports, and allocate the necessary
time and other resources.

CONCLUSION

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In conclusion a performance appraisal is one of the most important factors in


any organization and also a great tool used to record productivity. Every
organization has to have

goals and objectives established and every employee has to be involved


in the process. Also conducting a performance appraisal will improve
productivity and also the morale of the employees. Appraisals are a positive
way for a manager to let the employees know how well theyare performing
the duties that are assigned to them. Sometimes we get caught up in our job
and do not realize what all the company strives to do for employees. Whether
the reward is a lousy employee dinner and or a simple thank you card, your
work is being recognized. Also, employees should be thankful for any job they
may have, because the company did not have to hire on any means

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Bibliography
Anderson, G. C. (1993). Managing Performance Appraisal Systems. Oxford:
Blackwell. Carter, C. (1994). Human Resources Management and Total Quality.
USA: Amacon . Cocca, P. a. (2010). A Framework to Assess Performance
Measurement Systems in SMEs. International Journal of Productivity and
Performance Management, 186-200

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QUESTIONNARIES
Q1. In your Opinion Performance Appraisal is?
a. Evaluation of Employees
b. Promotion of Employees
c. Job Satisfaction of Employees
d. Motivation

Q2. Which method of performance appraisal is implemented in the


organization?
a. Merit
b. Grading
c. Other

Q3. Do you receive any increment in your salary after performance


Appraisal?
a. Yes
b. No

Q4. Do you think that performance Appraisal help to provide an


atmosphere where all are encouraged to share one another burden?
a. Yes
b. No
Q5. Do you think performance appraisal helps people set and achieve

meaningful goals?
a. Yes
b. NO

Q6. Do you think performance appraisal give constructive criticism in a

friendly and positive manner?


a. Yes
b. No

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Q7. Do you think that the performance of employees improves after the
process of performance appraisal?
a. Yes
b. No

Q8. Do you think performance appraisal improves motivation and job


satisfaction?
a. Yes
b. No
Q9. Is the top-level management partial in Performance Appraisal
a. Yes
b. No

Q10. Do you think performance appraisal helps to change the behavior of


Employees?
a. Yes
b. No

Q11. In your opinion, the Performance Appraisal system of your organization is


related to which of the following?
a. Retention of Employees
b. Recruitment System
c. Organizational Culture
d. Motivation

Q12. After performance appraisal improvement in your performance.


a. 10-20
b. 20-30
c. 30

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