Performance Appraisal of Mahindra Finance

CONTENTS CHAPTER NO PAGE NO CHAPTER 1 2-9 Introduction Need for the lease Objectives of strike Scope of study CHAPTER 2 10-31 Comp whatsoever Profile Industry Profile CHAPTER 3 32-66 interrogation mode actingology Primary Data Secondary Data Re invite Literature Data Analysis & variation CHPATER 4 67-68 Limitations Of study CHPATER 5 69-73 Findings and Suggestions Conclusion CHAPTER 6 74-77 Questionner CHAPTER7 78-79 Bibliography CHAPTER- I INTRODUCTION NEED FOR THE sphere OBJECTIVES OF prove SCOPR OF STUDY INTRODUCTIONPer haomaance judgement is the process of assessment transcriptionatic whate actually the execution of instrument and hand of an employee on the yield mull over and his potential drop for high(prenominal)(prenominal) level lineages in future. It consists of all formal procedures used in make watering g every mailnings to evaluate personalities, contri butions and potentials of employees. It is the process of analyzing, obtaining and rec ording study about the relative worth of an employee. According to Flippo surgery approximation is the systematic, periodic and im useial range of an employees excellence in matters pertaining to his hand over job and his potential for a break out job.B distributively has defined surgery estimation as the systematic evaluation of individual with regard to his/her implementation on the job and his potential for development, Heyel observes It is a process of evaluating the public presentation and qualifications of the employees of the employer in terms of the requirements of the job for which he is employed. For the office of administration including placements, selections for promotions, providing financial rewards and other actions which require disagreeential treatment among the fractions of a group be terrific from action affecting all members equally.The cognitive operation judgement is the evaluation of present performance and future capabilities of an emplo yee or group of employees. It is regarded as a process of estimating or judging the value, excellence, qualities or status of some object, or person. murder judgment is the dispel of all the other catering process, namely recruitment, selection and placement. exercise idea is innate to at a lower placestand and improve employees performance with HRD. In fact performance appraisal is the radix for HRD. It is a good mechanism to insure people.Employees want to promotions, salary increments, and good work conditions and they would like to be put in prestigious positions and would like to be graftred to places of their preference and like jobs giving them supreme satisfaction and so on. Therefore, employees get what they want, they should give what their brags want. And performance appraisal is single mechanism to elucidate sure that people at every level do things the way their superiors want them to do. Thus the superiors at every level reach for fall apart writing of their own performance by assessing the performance of their subordinates and thus controlling their carriage.The success of an smell go out therefore depend on its ability to measure accurately the performance of its members and use it objectively to optimize them as a virtual re credit. At the every outset, it whitethorn be pointed out that the performance appraisal is a continuous tend and non merely an issue of formal musical themes at excreterence point of cadence. Organization commands to measure employee performance to determine whether acceptable standards of performance be existence maintained.The six primary criteria on which the value of performance whitethorn be assessed ar flavor, timeliness, cost trenchantness, need for supervision and interpersonal impact. If appraisals render that employees atomic number 18 non performing at acceptable levels step bathroom be interpreted to simplify jobs, trains and motivate workers, or dismiss them depending u pon the reasons for poor performance. EVALUTION OF PERFORMANCE judgment. Employees appraisal techniques be said to live been used for the number wizard time. During the first world war, when, at the instant of Walter Dill Scott, the US Army choose the Man-to- Man evaluate system for evaluating military personnel.During the 1920-30 period, rational wage structures for hourly paid workers were adopted in industrial wholes. Under this system, the policy of giving site wages increment on the footing of merit was accepted. These early employee plans were called merit judge architectural plans, which continued to be so called up to the mid-fifties. By then, nigh of these plans were of the rating scale attribute, where emphasis was apt(p) to factors, degree and points in the early superior & managerial personnel, Since then, as a result of experiments and a great professional and managerial personnel.Since then, as a result of experiments and a great deal of study, the philo sophy of performance appraisal has undergone tremendous channelizes. Consequently, a change has similarly taken place in the terminology used. zero(prenominal), the older phrase merit rating is largely re relent slighted to the rating of hourly paid employees, and it is used frequently in developing criteria for salary adjustment, promotions, transfer etc. the by and by phrase, personnel appraisal, places emphasis on the development of the individual as and widely used to evaluate technical, professional and managerial personnel.Prof. Beach has provided a serviceable chart, sho break throughg the changes in the terminology of employee appraisal which piddle taken place since 1920. Although the interest in the use of performance appraisal has cast upd over the last thirty years, the coif of formally evaluating employees has existed for centuries. The performance appraisal system has undergone a lot of changes over the years as shown below 1900 Subjective appraisals. 1940Incr eased psychometric sophistication. 1950Management by objectives (MBO). 1960BARS. 1970-90Hybrid system & approach.The appraisal of individuals in an employment has been labeled and described by experts over the years in different ways. Common descriptions entangle performance appraisal, merit rating, behavioral assessment, employee evaluation, personnel review, progress compensate, staff assessment, service rating and fitness plow. about personnel authorities use such(prenominal) c erstpt interchangeably, while interpret some of these appraisal phrases differently. tho the term performance appraisal or evaluation is about widely used. NEED / IMPORTANCE OF STUDY procedure Appraisal is a formal exercise in which an organization makes an evaluation in a documented form of its employees, in terms of contributions make towards achieving organisational objectives and or their personal strengths and weakness, and in terms of attributes and behaviors demonstrated for meeting whatever objectives the organization may consider germane(predicate). ?Appraisals argon judgments, trades and performances of employees. Performance Appraisal is an setive instrument for back uping, people grow and develop in organizational settings.It could as an effective mechanism of chronic education learning from one a nonher. ?Provide information about the performance ranks. Decisions regarding salary fixation, confirmation, promotion, transfer and demotion ar taken prow on performance. ?Provide feedback information about the level of achievement & behavior of the subordinate. This information servings to review the performance of the subordinate, rectifying performance deficiencies and to set sassy standards of work ? Provide information which wait oners to counsel the subordinate. ?To baffle grievances and in disciplinary activities in organization. Provide information to diagnose deficiency in the employee regarding skill, admitledge, determine preparedness and developm ent needs and to prescribe the core for employee outgrowth provides information for placement. OBJECTIVES OF STUDY Performance appraisal aims at attaining different objects, they are ?To enable each employee to fancy his role and become effective on the job. ?To sharpen the development needs of each employee. ?To create and maintain a satisfactory level of performance. ?To contribute to the employee growth and development through training, egotism and care development programmes. To help the superiors to be in possession of a ripe apprehension about their subordinates. ?To guide the job changes with the help to continuous ranking. ?To facilitate fair and equitable compensation ground on performance. ? To facilitate for testing and validating selection tests, interviews techniques through comparing their scores with performance appraisal ranks. ?To ensure the organizational effectiveness through covering the employee for standard and improved performance and suggesting th e change in employee change in behavior. ? To serve as mechanisms for importing communication between the superiors and subordinates. To help management in fastener employees agree to their capacity, interest and aptitude and qualifications. ? To provide a valid info base for personal decisions concerning placements, pay, promotions, transfer and punishment. primary(prenominal) Objectives of Performance Appraisal From the organizational point of view, performance appraisal serves twain sets of goals, 1. Evaluation goals. 2. train and development goals. Evaluation goals ?Give feedback to subordinates so that they know where they stand. ?To develop valid data for pay an promotion decisions and to provide a means of communicating these decisions. To help the organization in making discharge and guardianship decisions and to provide a means of warning subordinates about satisfactory performance. SCOPE OF THE STUDY The scope of the study encompasses managerial and non-managerial c adre employees of Mahindra & Mahindra finance ltd. To asses the performance appraisal system, to know the employees perception towards PAS. CHAPTER 2 COMPANY indite INDUSTRY PROFILE COMPANY PROFILE Mahindra Group Incorporated as Mahindra & Mahindra in 1945. the caller was re-christened Mahindra &Mahindra in 1948. J. C Mahindra K.C. Mahindra Core purpose Indians are second to none in the world. The Founders of our Nation and of our organization passionately intrustd this. We will prove this right by believing in ourselves and by making Mahindra & Mahindra Ltd. Known global for the quality, durability and reliability of its products and services. Anand Mahindra Keshub Mahindra Auspices of JIPM Japan. Mahindra & Mahindra Tractors was awarded the Deming prize for excellence in quality Mahindra & Mahindra becomes the first Indian tractor comp both to achieve sales of 1 million tractors. Mahindra Champion becomes Indias highest selling large 3 wheeler at bottom four years of laun ch. 2004 Mahindra & Mahindra and Renault set up a joint venture Mahindra & Mahindra announced the launch of Mahindra Australia Mahindra & Mahindra union Venture with Chinas Jingling Tractor high society. Mahindra Auto motive Steel Pvt Ltd (MASPL) a newly formed subsidiary of Mahindra & Mahindra Ltd. Acquired Chakan unit of Amforge Industries Ltd. 2005 Leaders in diverse business sector SectorLeaders in AutomotiveUtility Vehicle Farm EquipmentTractors Telecommunication & software program Time Share Resorts & Technology ParksRural pay Mahindra & Mahindra Financial Services Limited History Mahindra pay was merged on January 01,1991 with Mahindra & Mahindra Ltd. Leading Manufacturer of utility vehicles and tractors in the country and Kotak Mahindra pay Ltd. Vision Statement To be the number one Rural Finance Compevery and continue to retain leadership position for Mahindra products. Mahindra Finance will provide products and services tailored to the needs of M&M, its closely(pr enominal) favoured customer. In case of demand supply mismatch of funds, Mahindra finance Will Put all their resources to find a solution.Mahindra Finance may finance other products after catering to the need of M&M. However, this would always constitute a wasted proportion of mahindra Finances pith business. Mahindra Finance will help M develop better products by providing first hand information standard from the target market. Mahindra Finance Strengths The vision of Mahindra Finance is validated by its strength, which are ?Parentage of M Ltd. RBI classification as HP Company ?Excellent reputation for brisk repayment. ?Wide rustic net work. ?Dealer share retentivity and relationship of dealers with M ?ensure dealer commitment well up connected to M& M / Dealer web. Wide knowledge of rural financing Mahindra Finance determine ? favourable corporate Citizen ship ?Professionalism ?Customer First ?Quality Focus ?Dignity of the Individual. Milestone 1991Mahindra Finance Incorpor ated on 1st January Commenced Regular Operations Employees 5 Disbursement 6 Crores Disbursement 37 Crores Employee 15 Branches 4 1994Disbursement 757 Crores 1994-95Employee 52579 Branches 343 1999-00Signifi squeeze outt Milestone in terms of total assets 2000-01Steep rise in business good deal with total contracts of 76663. Celebrated their 10* Anniversary.Retail Financing Covered 80% of Indian Districts. Financing nary(prenominal)- M Vehicles. 2001-02MMFSL communicate covered 180 branches (98% of total districts throughout the nation) 2004Mahindra Insurance Brokers Ltd is incorporated 2005Branches256 Employee 1812 Contracts 336891 Department of Mahindra Finance To ensure self-possessed & effective functioning of the organization, Mahindra Finance has been divided into divers(a) departments ? Operations ?Finance ?Marketing ?Legal ?IT ?HR ?Administrator Each department has its own norms. Lets see the Dos and Dont of each Department. ?General Dos Mark attendance on a daily p riming coat oTake prior approval form your immediate supervisor for Leave, travel or any expenses oInform your Supervisor immediately in case you come across any case of fumble relating to cash or assets o Trust and remark colleagues, customers, vendors and associates. Donts oSalary information should non be shared or compared oDont indulge in misappropriation of cash or assets, this will invite disciplinary action. o Do not use abusive language in unexclusive. ?Operation Dos oOnly Mahindra Finance employees should deal with customers/dealers for their payments and collections. Collect & habituate Customers to pay On or Before Due Date. oDocuments must have Duly Stamped and write agreement a presbyopic with PDCs and security cheques. Donts ono(prenominal)payment and / or collection should be carried out by any of the dealers/brokers/DSAs/ DmAs etc. ?Finance Dos oCustomer Centric (Internal as well as External) Adhere and observe compliance to Company policies. o Data Accuracy and updation. o Always meet / Best the deadlines. Donts oDo not Accept / communicate on anything without proper documentation and authorization there by ensuring audit trail. Do not make any performance people oriented but try to make it process oriented with help of systems. oAvoid duplication of work. ?Marketing Dos oAlways keep your eyes open for any competitive marketing activities like new media campaigns. oKeep yourself updated with the latest happening s in the industry /function through continuous learning (like books etc). oMaintain strict hush-hushity of the alliances marketing plan. oAlways provide a structured and written brief to the advertising agency for all kinds of communication. Donts neer tamper with the corporate identity of the organization (like logos, symbols, font colors etc). o Dont execute any action mechanism (eg promotional campaign, product launch, etc. ) without the involvement and inputs from the local representatives of the field operation team. ?Legal Dos oBe proactive or else than reactive. oKeep the documentation immaculate. Its better to prepare than to repair. Donts oDont ignore any correspondence, whether from the customer, guarantor, their lawyers, damages company, statutory authorities or any court or forum. oRepossessed vehicles are not to be used by any officials IT Dos ?Utilize IT to the maximum of its potential and thereby reduce unnecessary paperwork. ?Save power and reduce wa demo of consumables. Donts ?Dont use pirated software of nay nature while working with MMFSL. Mahindra Finance maintains a strict policy against Piracy. ?As a member of the IT department, you may have access to sensitive company information contained in he system database. The company trusts yo with this information. Dont violate company trust by prying through this information or disclosing the analogous. ?HR Dos oMaintain confidentiality of all information All employees of the organization are our ingrained customers. Treat them wi th respect & Provide necessary resources to help them perform better, o Reserve criticism for private discussions whereas rewards and recognition to be addressed in public Donts oDont make prepossessed decision all employees should receive equal respect and probability o Do not make commitments on behalf of management without prior permission. Organization structure A sound organization structure ensures a smooth progress path & achieving of milestones. Mahindra Insurance Broker Ltd (MIBL) ?MIBL is a wholly own subsidiary of Mahindra Finance MIBL manages the Motor insurance for Mahindra Finances retail customers ? MIBL is a direct insurance broker for carriage and Non-life products, and operates in the Retail and Corporate lines of business Vision To be come Indias most admired insurance Intermediation Company Goal To be among the top 5 direct insurance brokers of India by 2010 construct Culture & Classification Mahindra Finances work culture is a framework of shared attitudes and beliefs. Some of the Copernican aspects of this work culture are ?Open and transparent communication and feedback ?Internal and external customer focus Creating and upholding a learning environment ?Proactive orientation ?Creating result through synergy. INVESTMENT ADVISORY We at Mahindra Finance are all-encompassing of clients needs. So while we believe in making assets easily available, we also believe in catering to those who want to create wealth from these assets. Our Investment Advisory Services act as an avenue to help create and multiply wealth. joint Fund Distribution Recently we have received the necessary permission from Reserve Bank of India (RBI) to start the distribution of Mutual Fund products through our network.Hitherto we were still participating in the liability requirements of our customers but with a mutual fund distribution business, we can also participate in their asset allocation. When it comes to invest, everyone has unique needs ground on their ow n objectives and risk profile. art object umteen investment avenues such as fixed deposits, bonds etc, it is usually seen that equities typically outperform these investments, over a longer period of time. Hence we are of the sound judgment that, systematic investment in equity allows one to create substantial wealth.However, investing in equity is not as simple as investing in bonds or bank deposits, because lone(prenominal) proper allocation of portfolio gives maximum returns with moderate risk, and this requires expertise and time Our investment advisory services you invest your money in equity through different Mutual Fund Schemes. We ensure the best for our clients by identifying products best display caseed to individual needs continent object Antarctica. M&M one tractor manufacturing plant in China, three assembly plants in the United States and one at Brisbane, Australia.It has made strategic acquisitions across the globe including Stokes Forgings (UK), Jeco Holdig AG (Germany) and Schoneweiss & Co GmbH (Germany). Its global subsidiaries include Mahindra atomic number 63 Srl. based in Italy, Mahindra USA Inc. and Mahindra South Africa. M&M has entered into partnerships with international companies like Renault SA, France, and International hand truck and Engine Corporation, USA. Forbes has ranked the Mahindra Group in its Top 200 leaning of the Worlds most Reputable Companies and in the Top 10 list of Most Reputable Indian companies.Mahindra has recently been honored with the Bombay Chamber Good Corporate Citizen Award 2006-07. INVESTOR ZONE At Mahindra Finance, we pride ourselves on having pioneered rural finance in India. We have grown with each passing year, met targets, exceeded expectations and in the process created wealth for our shareholders. Here we have a utilise section of up-to-date information, from our financials to our events and presentations easy access to information at the click of button. Much like most of our quick and sim ple processes at Mahindra Finance.PRODUCT PORTFOLIO At Mahindra Finance we have a wide range of products and services, with something to suit everyones needs. Right from finance for two wheelers, tractors. Farm equipment, cars and utility vehicles to commercial vehicles and construction equipment, we also have a group of experts providing investment advice, surveying available market products and choosing the most fitting to our customers needs. meeting STRUCTURE We are a company with a strong foundation and a shining legacy, growing every sidereal day to create a legacy of our own.Our tether(a) promoter Mahindra & Mahindra holds the majority of our Equity Shares and is also a leading tractor and UV manufacturer with over 60 years experience in the Indian market. As a concomitant to our business, in May 2004, we started an insurance broking business through our wholly owned subsidiary, Mahindra Insurance Brokers Limited. ABOUT MAHINDRA GROUP The US $6 billion Mahindra Group is among the top 10 industrial houses in India. Mahindra & Mahindra is the only Indian company among the top tractor brads in the world.Mahindras Farm Equipment Sector has recently won the Japan Quality Medal, the only tractor company worldwide to be bestowed this honor. It also holds the distinction of being the only tractor company worldwide to win the Deming Prize. Mahindra is the market leader in multi-utility in India. It made a milestone entry into the passenger car segment with the Logan. The Group has leading presence in key sectors of the Indian economy, including the financial services, trade and logistics, self-propelling components. Information technology, and infrastructure development.With over 62 years of manufacturing experience, the Mahindra Group has built a strong base in technology, engineering, marketing and distribution which are key to its evolution as a customer centrical organization. The Group employs over 50,000 people and has several state-of- the-art facil ities in India and overseas. The Mahindra Group has ambitious global aspirations and has presence on fiver continents. Mahindra products are today available on every. Company profile of Mahindra & Mahindra Limited, we are one of Indias leading non-banking finance companies.Focused on the rural and semi urban sector, we provide finance for utility vehicles, tractors and cars and have the largest network of branches covering these areas. Our goal is to be the preferred provider of retail financing services in the rural and semi urban areas of India, while our strategy is to provide a range of financial products and services to our customers through our nationwide distribution network. PERFORMANCE estimation SYSTEM IN MAHINDRA & MAHINDRA finance SERVICE LTD. In MAHINDRA & MAHINDRA FINANCE SERVICE LTD. the performance appraisal report is annual and is co-terminus with financial year, i. e. , 1st April, to the end of March by-line year. There is no need to write in duplicate. No Ann ual Appraisal Reports are require to be written by officers under suspension and on duty for less than two months during the describe year. Where officers are transferred before the full period should write the appraisal reports for that part period straight by after obtaining the self assessment reports from the officers concerned and send the same to competent authority through proper channel.Reporting Officers who get relieved without writing AARs are liable for disciplinary action. In case of death or non-availability of insurance coverage officer for any acceptable reason, the AARs can be written by the next higher(prenominal) authority straight away. Counter sign language of the AARs is normally done by the officer under whom the inform officer works. In case of sudden illness, death retirement or for any acceptable reason, the echo signing officer or the Head of the Department is not available, AARs can be signed by the incumbent at the time of receipt of AARs by him.A self assessment Report in the proffering knowing is obtained from the reported officer on the duties performed by him during the period under report within 15 age after the expiry of the reporting year for writing the AAR. If the Self Appraisal Report is not received, for any reason, the reporting officer may write the AAR duly recording the fact of non receipt of SAR. The acceptance or otherwise of the SAR should be endorsed in the column provided. The reasons for non acceptance should be enterAdverse retag, if any with, proper substantiation should be communicated to the Reported officer by the nett counter signing authority. The Adverse remarks should be supported by specific instances. The format of AARs for P&G services contains grading A,B,C, D & E indicating Outstanding, Very Good, Good, adequate and Poor performance. Grading A,B & E are to be supported by justification along with recorded proof. Without such justification, the general writing can be reduced to C grade by the counter signing officer duly recording that the grading is allotted as no justification is forth approach path from the reporting officer.If the countersigning officer wants to award different grades, full justification with specific instances should be furnished by them. The grading awarded by foreign employers in the AARs of MAHINDRA & MAHINDRA FINANCE SERVICE LTD. employees on deputation is to stand but the grading so awarded is not binding on the Departmental Promotion Committees. The sum total of marks against rating awarded in respect of each item will determine the over all rating as follows A tier up 81% and higher up B Grade 71%to80% C Grade 61% to 70% D Grade 50% to 60% E Grade below 49% Another column General Remarks is also provided for writing the General Remarks on the Reported Officer by the Reporting Officer in a nut shell. To evolve a performance appraisal system to serve as the basis for transfer policy and incentive/dis-incentive schemes, the MAHINDRA & MAHINDRA FINANCE SERVICE LTD. approved performance appraisal system based on objective, tangible parameters.The appraisal system consists of performance indicators evolved for the staff in P & G Service on the basis of the job charts prescribed for the staff, nature of duties performed by the staff of different levels, nature of decision involved vis-a-vis, the cadre of employee and the sequential tasks involved in each HRD function like recruitment, promotions terminal benefits etc. The tasks to be performed by an employee in a given cadre form the performance indicators for the employee. A time frame is set for performance of a given task property in view the mandatory nature of compliance under the service regulations, leave regulations etc. optimum time infallible for performance of the task and the periodicity of performance. The points earned on an average overall the relevant Performance Indicators in a month by an employee will be the GPA (Grade Point fair per month) and the performance of an employee is rated on the basis of CGPA (Cumulative Grade Point Average) obtained as an average of GPA earned over 12 months period. The scale adopted and weightage given in grading the performance of an employee in a given parameters is Scale GradeWeightage 95% A4 points Outstanding 85% to 95%B3 points Good 0% to 85% C2 points Satisfactory 75% Grade Point Average (GPA) = do Grade Points (per month) No. of performance Indicators Cumulative GPA (CGPA) Total of GPA 12 CGPA=A=4-Outstanding B = 3 to 4 -Good C = 2 to 3 -Satisfactory D = 1 to 2-Poor The Impact of AARs on Promotions in MAHINDRA & MAHINDRA FINANCE SERVICE LTD. In terms of regulation 9(B) (1) of APSEB SRs part-Ill, the interest criteria is adopted for fixing the merit in respect of Class-Ill and above Officers for promotions to higher categories. ) The total marks obtained in last five years AARs/CRs are added and divided by five to obtain the average marks. b) Where an employee has not put up five years of service in the category from which promotion is to be made and for purpose of considering his/her case for out of turn promotion if the average marks of the AARs/CRs earned by him/her in that category is 90% and above, the last AARs/CRs in the lower category to make up the total pfperiod of five years shall also be taken in lo consideration. If the average marks of the five AARs/CRs earned is 90% and above, the only he/she shall be considered for out of turn promotion. ) Based on average marks so obtained, the grading is made as follows Out of turn - 90% & above In turn - less than 90% Unfit - not to be considered provided that the out of turn grading shall be awarded only if two different reporting officers have written the last five years AARs and also that each of these reporting officers have awarded one out standing A grade report. d) Provided, further, that the candidate selected for promotion under the grading of out of turn shall not be appoint more than fiv e ranks.These five ranks shall be assigned as indicated below. Marks 90 and above up to and inclusive of 92 -1 Rank Marks above 92 up to and inclusive of 94 -2 Ranks Marks above 94 and up to and inclusive of 96 -3 Ranks Marks above 96 and up to and inclusive of 98 -4 Ranks Marks above 98-5 Ranks e) The grades obtained based on the above criteria shall form the basis for fixing the ranking among the candidates considered suitable for promotion. The inter-se-ranking in each group shall be their inter-se-position/seniority in the existing cadre. CHAPTER 3 RESEARCH METHODOLOGY a) PRIMARY entropy ) SECONDARY DATA REVIEW LITERATURE DATA ANALYSIS AND INTERPRETATION RESEARCH METHODOLOGY investigate is an academic operation and as such the term should be used in a technical sense. Meaning of Research D. Slesinger and M. Stephenson in the Encyclopedia of Social Sciences define search as the manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art. Objectives of Research 1. 2. To gain familiarity with a phenomenon or to achieve new insights into it. 3.To portray accurately the characteristics of a particular individual, situation or a group. 4. To determine the frequency with which something occurs or with which it is associated with something else. Types of Research The basic types of inquiry are as follows 1. Descriptive & Analytical 2. Applied & Fundamental 3. Quantitative & Qualitative Research do by The pursuance order concerning various steps provides a utilitarian procedural guidelines regarding the research process 1. Formulating the research problem 2. Extensive literature survey 3. Developing the hypothesis 4. Preparing the Research flesh 5.Determining seek design 6. Collecting the Data 7. Execution of the Project 8. Analysis of data 9. Hypothesis testing 10. Generalizations and Interpretation, and 11. Preparati on of the report or presentation of the result, i. e. formal write-up of conclusions reached. ensample Design Samples can be either probability samples or non-probability samples. Probability samples are those based on simple random sampling, systematic sampling, etc. Non-probability samples are those based on convenience sampling, judgement sampling and quota sampling techniques. Sample designs are as follows 1. Deliberate Sample . Simple random Sample 3. Systematic Sample Collection of the Data The modeology being following for the study is data collections through (primary and secondary sources), interviews, views of employees and other personnel and questionnaire etc. A)Primary Data The main source of primary data comprises of 1. Structured Questionnaire 2. Formal and Informal interviews 3. Feedback obtained form the employees B)Secondary Data The sources of secondary data comprises of 1. manual of arms of the Organization 2. Books published by different agencies 3. Other rel evant books, magazines, periodicals and Journals etc. REVIEW OF LITERATURE Main Components of a Performance Appraisal System. The specific objectives of an Appraisal determine the components to be used in a performance appraisal system. Basically the following components are in use in Indian Organizations. 1. tonality Performance Areas (KPAs)- For role clarity and key result areas (KRAs) for accountability. While KPAs stress what main functions the appraisal as an individual is evaluate to perform in the performance period, KRAs emphasis the accountability or the results the appraisal is expected to achieve in the performance period.However KPAs are to be preferred over KRAs as KOAs stress on what the priser should do and the effort he has to put in moreover, an identification of KPAs given and rationality of the nature, quality and level of performance expected of the time in which the tasks are expected to be completed. 2. Attributes/Qualities/Trait Attributes as a part of p erformance Appraisal help in reinforcing the behavior of qualities or competencies that are required or are to be developed by the executives.Most organizations, however, realizing the extent of subjectively involved in mark based appraisals and recognizing the need to promote performance orientation earlier than merely trait orientation have stated using a mixture of KPAs and attributes for assessment. 3. Self Appraisal Development or change takes place only if the judge is interested in development or change. Self-appraisal is an opportunity for the appraise to recapitulate and list down the accomplishments and failures during the performance period. The most important part of self-appraisal is the process of review and reflection and through Performance appraisal.Such performance summary should be done both by the appraise and valuator separately and exchange during review discussions. 4. Performance Analysis Performance Appraisal should be based on the performance prepara tion dimensions. The work done or the performance during the year should be broken down into various KPAs/KRAs/tasks/targets. Performance under each of the above should be analyzed under the following headings. How is the actual performance with respect to the planned performances what factors contributes to the achievements from the point of view of the appraise, authenticator environment etc. 5.Performance Review Discussion or counsellor A number of objectives can be achieved through performance review discussions which aims at making the appraiser and the appraise understand each other better by communicating the performance compendium of appraisers performance. Performance Appraisal does not serve the purpose of developing employees unless an effective system of performance counseling in practiced in the organization performance counseling can be defined as the help provided by a manager to his subordinates in analyzing their performance and other job behaviors in order to in crease their job effectiveness. . Performance Ratings One of the effective out comes of an appraisal is the ratings assigned at the end of the appraisal to the appraise. This practice distorts the main purpose of appraisals. In view of this, some organizations are seriously considering dropping rating as a part of the development oriented appraisal system and keep simple, short and confidential form separately for it. 7. Identification of training/development needs Appraisal provides a good opportunity to identify the developmental needs of an employer.Developmental needs should flow from performance analysis. It is important to identify the competency or capability (he appraise needs to develop in order to perform a given task better. This rather than (raining program titles. It is useful to needs of all employees and work out strategies and plans to meet them. 8. Final assessment by the evaluate In some organizations the final ratings given by the appraiser are not shown to t he appraise because the final ratings are given taking into consideration comparative performance of other in the department.If an organization subscribes to such philosophy, it is useful to have separate formats for ratings rather than mixing it up with development oriented appraisals. 9. Reviewing officers Role In almost all organization the requiring officer given an important role. As the reviewing officer has a big responsibility, span of control, authority and accountability, it is useful to design a significant role for him in the appraisal process. The be officers, to examine the rating behavior of the reporting officers, give recommendations on developmental needs. 0. Potential Appraisal A system of developing employees for occupying higher positions in the organizational hierarchy to undertake higher potential appraisal. A good potential appraisal system attempts to generate data about employees and their potential for occupying higher positions from a variety of sourc es, and helps the top management to make decisions about the suitable persons for given job. 11. Signature by the valuator Some organizations require the appraiser to sign the form after the review discussion is over and ratings are assigned.The intention is that the appraiser should know what is being stated about him and he should be given a chance to express his own views in case of negative marks. APPRAISERS 360 Degree Performance Appraisal The appraiser may be any person who has thorough knowledge about the job contents, contents to be appraised, standards of contents and who observes the employee while performing a job. The appraiser should be capable of determining what is more important and what is relatively less important.The appraiser should prepare reports and make judgments without bias. Typical appraisers are supervisors, peers, subordinates, employees themselves, users of service and consultants. Performance appraisal by all these parties is called 360 degree perfor mance appraisal. Supervisors Supervisors include superiors of the employee, other superiors having knowledge about the work of the employee and department head. Peers Peers appraisals may be reliable if the work group is stable over a reasonably long period of time and performs tasks that require interaction.However, little research has been conducted to determine how peers establish standards for evaluating others for the over all effect of peer appraisal on the groups attitude. Subordinates The concept of having superiors rated by subordinates is being used in most organizations. This method can be useful in organizational settings to provide the relationships between superiors and subordinates are cordial. Users of services Employee performance in service organizations relating through behaviours, promptness, speed in doing the job and accuracy can be better judged by the customers or users of services.Consultants Some times consultants may be engaged for appraisal when employers do not trust supervisor appraisals and management does not trust self appraisal, peer appraisals or subordinate appraisals. In this situation, consultants are trained and they observe the employee at work for a sufficiently long time for the purpose of appraisal. Process of Performance Appraisal Performance can be undertaken either on informal basis or on formal or systematic basis. Informal appraisals are conducted when ever the supervisor or personal managers feel it necessary.However, formal and systematic appraisals are conducted on a regular basis. The systematic performance appraisal process follows a set pattern and consists few Steps Establishing Performance Standards communication the Standards quantity actual performance Comparing the actual with the Standards Discussing the Appraisal Taking corrective action 1. Establishing Performance Standards The Appraisal process begins with the setting up of criteria to be used for appraising the performance of employee. The crite ria is specified with the help of job analysis which reveals the contents of the job.The criteria should be discussed with the supervisors to ensure that all the relevant factors have be included. These standards should be indicated on the appraisal form. Appraisal form should be carefully designed and printed. Performance standards will depend upon the objectives of the appraisals. 2. Communicating the standards The standards set for performance should be communicated to all the employees. The standards set must be explained to the employees, so that they come to know what is expected of them. When the standards are made cognise to the employees, they will try to make their performance equal or above them. . Measuring actual performance Once the performance standards are specified and accepted, the next stage is the actual performance. This requires choosing the right technique of measurement, identifying the internal and external factors influencing performance and collecting and results achieved. Personal observations, written reports and face to face contacts are the means of collecting data and performance. 4. Comparing the actual with the standards Actual performance is compared with the predetermined performance standards. Such comparison will reveal the deviations. Deviations may be supreme or negative.Positive deviations occur when the actual performance exceeds the standards. Negative deviations occur when the actual performance is less than the standards. 5. Discussing the appraisal The results of the appraisal are communicated to the employees and discussed with the employees. Such discussion will enable the employee to know his weakness and strengths. There fore employee will be motivated to improve themselves. 6. Taking corrective action Appraisal process will be useful only when corrective action is taken on the basis of reports. Corrective action may be in the form of advice, council or warning.It may also be in the form of additional traini ng, refresher course courses, delegation of more authority, special assignment and coaching, etc. these actions will be useful in destiny employees to improve their performance in future. If the actual performance is very poor and behind the scope of improvement, it may be necessary to take steps for demotion or retrenchment or any other suitable measure. orders and technique of Performance Appraiser The Performance Appraiser methods differ in the approach for the following reasons. ?Firstly, they differ in the resources of traits or qualified to be appraisal. Secondly, they differ because of the different kinds of worked who are being rated. ?Thirdly, the variations may be caused by the degree of precision attempted in an evaluation, ?Finally, they may differ because of the methods used to obtain weightings for various traits. A number of performance Appraisal methods are available. The idea used categorizations is that given Strauss and sakes the methods are separate into tradi tional and modern methods. METHODS OF PERFORMANCE APPRAISAL Traditional Methods Modern Methods 1. Straight ranking method 1.Assessment meat 2. Man to man comparison method 2. Appraisal by outcomes or 3. Grading Management by Objectives 4. Graphic Rating Scales 3. Human Asset Accounting 5. Forced choice description method Method 6. Forced distribution method 4. BARS (Behaviorally 7. Check List anchored rating scales ) 8. Freeform or essay method . vituperative Incidents 10. Group Appraisal 11. Field Review Method conventional METHODS 1. Straight Ranking Method 2. Man to Man comparison method 3. Grading 4. Graphic Rating Scale 5. Forced choice Description method 6. Forced Description method 7. Checklists 8. Free Form Essay method 9. Critical incidents 10. Group Appraisals 11. Field Review method new-fashioned METHODS 1. Assessment Center 2. Appraisal by Result of management by Objective (MBO) 3. Human Asset According method 4. BARS (Behaviorally Anchored Rating Scales) TRADITION AL METHODS STRAIGHT RANKING METHODIt is the oldest and simplest method of performance appraisal by which persons are tested in order of merit and placed in a simple grouping. One of the disadvantages of the system is that it permits similar total scores for two or more individuals. But it is a similar method of separating the most effective form of the least efficient. MAN TO MAN COMPARISION METHOD By this method, genuine factors are selected for the purpose of analysis (such as leadership, dependability and initiatives) and a scale is designed by the rates for each factor, and personnel are compared to the key man in respect to the factor of a given lime.But it is not of much use because the conniving of scale is a complicated task. GRADING METHOD Under third system, the rater considers certain features and marks them, according to a scale they may be AOutstanding B very good C good or coverage D-Fair E poor The actual performance of an employee is then compared with these grade definitions, and he is allotted the grace which best describes his performance. GRAPHIC grade METHOD These methods assess the degree of certain qualified required for the job such as industriousness, reliability and dependability.The degree usually, measure on a scale that can vary from 3 points (good, coverage and poor) to several points. When rating and objectively given, they provide useful feedback. But a serious drawback is that the rating is generally subjective. FORCED CHOICE DESCRIPTION METHOD The compel choice method from contains a series of groups of statements, and the rater checks how effectively the statements describes each individuals being evaluated The use of this method calls for nominal subjective judgment nd objective reporting, but at the each time, the results of evaluation do not prove useful for counseling and training purpose because the rater is ignorant of evaluating the individuals. FORCED DISTRBUTION METHOD In this method the rater is forced to distr ibute his subordinates into performance categories such as outstanding good poor etc. eitherone cannot be given average or good rating. Hence some percentage of the subordinates is rated better then the others. This-method is useful for rating a large number of employers.CHECK LIST Under this method, the rater does not evaluate employees performance, he supplies report about it and the personnel department does the final rating. A series of questions are presented concerning on employee to his behavior and the rater the checks to indicate if the answer to a question about and employee is positive or negative. This method suffers from bias on the part of the rater. FREE EASSY METHOD In this method the supervisor makes a set-apart form, open ended appraisal of employees in his own words.The description is always a factual and concrete as possible. An essay can provide a good deal of information. However no attempt is made to evaluate an employee in a quantitative manner. CRITICAL I NCIDENT METHOD Under this method work performance is heedful in terms of certain events or episodes shall occur in the performance of the rater job. This method provides objectives basis for conducting a discussion of individual performance. How ever, negative incidents are generally more noticeable than positive ones. GROUP APPRAISAL METHODUnder this method, employees are rated by an appraisal group, consisting of their supervisor and there are four other supervisors who have same knowledge on this performance. The advantage of this method is thorough, very simple and is divide of any bias, of it number multiple judges. But it is very time consuming. FIELD REVIEW METHOD Under this method, a trainer employee from the personnel department interviews line supervisor and is required to give his sight about the progress of the subordinates. This system is useful for a large organization.The man defect is that helps two management representatives busy with the appraisal. MODERN METHODS OF APPRAISAL These methods place more emphasis on the evaluation of work of job achievements that in genius traits. Result oriented appraisals tend to be more objective and worthwhile, especially for counseling and development purposes. APPRAISAL BY RESULTS OR MANAGEMENT BY OBJECTIVES (MBO) MBO differs significantly from the traditional approach for it shifts the emphasis from appraisal to analysis the subordinate is no longer examined by his strength and potential.Thus he assumed the role of and active agent rather than a passive agent1. But the major problems that companys face in implementing MBO is in defining objectives. In the same organization, the purpose of the worker is different from that of management. ASSESSMENT CENTER METHOD In this method, the organization develops its own internal reoccurred for the continuous assessment of its members for the recruitment of new members the purpose of this method is to test candidates in a brotherly situations, using a number asse ssors and a variety of procedures the most important features of the assessment center is job related simulations.These simulations involve characteristics that managers feel are important to the job success. Assessments are made to determine employer potential for purposes of promotion. Assessment center ratings are said to be strongly influenced by the participants inter personal skills. adjudicate tend to evaluate the quality of the individuals social skills rather than quality of the decisions themselves. HUMAN ASSET METHODS This method refers to activity devoted to attaching money estimates to the value of a firms internal human organization and its external customer goodwill.The menstruum value of the firms human organization can be appraisal by developed procedures, by understanding periodic measurements of by casual and intervening enterprise variables. The by casual variables include the structure of organizations management policies, business leadership, strategies, skil ls of behavior. The intervening variables reflect the internal state and health of an organization. This method is not yet popular. BEHAVIOURALLY ANCHORED RATING SCALES (BARS) This technique, which has been recently developed, provides a more equitable appraisal as compared to other techniques.In this method, persons with knowledge of the job lo be appraised are asked to describe critical incidents of effective performance behavior. A second group is asked to rate the behavior described in the incident. Subjects to incidents arc used as behaviors anchors for the performance dimensions. The main advantages of this method are that experts do this, and hence the results are sufficiently accurate the use of critical incidents may be useful in providing feedback to the people being appraised. PROBLEMS OF PERFORMANCE APPRAISAL.The ideal approach to performance evaluation is that in which the evaluator is free biases, pre judicious. This is objective, it minimize the potential capricious a nd dysfunctional behaviors of the evaluator which may be detrimental to the achievement of the organizational goals. However, a single foolproof evaluation method is not available. Inequalities in evaluation often repeal the usefulness of the performance system resulting in accurate and invalid appraisals, which are unfair too. There are many significant factors, which deter or impede objective evaluation. HALO EFFECTIt is a tendency to let the assessment of an individual one-trait influences the valuation of that person on other specific trait. There is this effect in appraisal when the appraiser assigns the same rating to all traits regardless of an employees actual performance on these traits. The ring effect refers to be tendency to rate an individual consistently high or low or average on the various traits, depending upon whether the raters overall impression of the individual is favorable or not this means that the halo effect allows one characteristic, observation or occur rence to influence the rating of all performance factors.The halo effect arises when the traits are unfamiliar it defined and involves personal relations. This often occurs when an employee tends to be more contentions and dependable, that the appraiser might become biased towards that individual to the extent that the appraiser rates him high on many desirable attributes or when the employee is more friendly or unfriendly employee towards the appraiser. In such cases, a very high role may be given to an unfriendly employee so that he may be by passed even though he is very capable one. LENIENCY/STRICTNESS TENDENCYEvery evaluator has his own value system, which acts as a standard against which he makes his appraisals. Relative to the true or actual performance an individual exhibits, some supervisors have a Tendency to be liberal in their ratings, i. e. , they consistently assign high values to their employees, while at other times they may have a tendency to assign consistently low ratings. The former tendency is know as positive leniency error, while the latter in lenient in his appraisal, an individual performance becomes overstated, i. e. , rated higher than it actually should be.Similarly, under the negative tendency, performance is understated, than what is should. Both these trends usually arise from varying standards of performance percipient by supervisors and form different interpretations of what they evaluate in employee performance. The tendency can be avoided by holding meetings or training sessions for raters so that they may understand what is required of them in rating. SIMILARITY ERROR This type of error occurs when the evaluator rates other people in the same way he has perceive himself. For example the evaluator, who peruses himself s aggressive, may evaluate others by looking for aggressiveness. MICELLANEOUS BIASES Bias against employees on ground of Sex, holiness and Caste position is also a common error in rating. For example a higher rating may be assigned to a senior employee. The rater may be influenced and give higher ratings to those holding higher positions. Besides this, there may be opportunity bias, group characteristic bias and knowledge of predictor bias. Analysis And Interpration The techniques of analysis are based on the response received from the employees.The sample consists 50 employees randomly selected from various departments. The responses were analyzed and interpreted. Period Of Study The data is collected for the period 2007-2008. 1. In your views what should be the frequency of writing performance appraisal reports c. Annually. a, Monthly b. Half-yearly To understand the overall employees opinion on frequency of writ in performance appraisal report, with the help of 100 responses following data observed. SI. No. social class No. of respondents helping of respondents 1Monthly1632% 2Half-Yearly1020% 3Yearly2448%Analysis and Interpretation By observing the above data, most of the employee s are satisfied with the performance appraisal policies in the company, preferred annually performance appraisal. 2. In your opinion who will be right person to appraise your performance? a. Immediate boss b. countersign authority. To understand the overall employees opinion on who will be right person to appraise performance of employee, with the help of 50 responses following data is observed. SI. No. categoryNo. of respondentsPercentage of respondent 1Immediate Boss2550% Counter Signing Authority2550% Analysis and Interpretation By observing the above data, most of the employees of the organization preferred that immediate boss is the right person to appraise his performance. 3. Is the present appraisal system helping you to know your strengths an weakness? a) Yes b) No The employees strengths and weaknesses will be known through the person appraisal system with the help of 50 respondents data is observed. SI. No. Category No. Of respondents Percentage respondents 1 Yes 2550% 2 No 2550% Analysis and InterpretationBy observing the given data, The performance appraisal report speaks about the strengths and Weaknesses of the employees in the Organization. 4. Arc monthly reports of performance of each employee are prepare and taker as basis for preparing performance appraisal reports? a) Yes b) No To understand the given data Monthly report of performance of each employees are prepared and taken as basis with the help of 50 responses following data is observed. SI. No. Category No. of Respondents Percentage respondents 1 Yes 33 66% 2 No 17 34% Analysis and InterpretationBy viewing the above data, the Performance appraisal report can be prepared based on the Consolidation of monthly report of each employee in the Organization. 5. Do you feel career part and succession plan should become part of performance appraisal? a) Yes b) No To know the employees opinion on the career part and succession plan should become part of performance appraisal, by taking 50 respon ses following data is observed. SI. No. Category No. of Respondents Percentage of respondents 1 Yes 33 66% 2 No 17 34% Analysis and InterpretationBy observing the given data, employees are referred for the career part and action of succession plan become the part of performance appraisal. 6. Performance appraisal reports should be revealed or not? a) Yes b) No To understand the overall Employees opinion, performance appraisal repo should be revealed or not on the basis of 50 responses following data observed. SI. No. Category No. of Respondents Percentage Of respondents 1 Yes 33 66 2 No 17 34 Analysis and Interpretation By viewing the above data, Most of the employee preferred to reveal this performance appraisal report. . Are you satisfied with the present appraisal system? a) Yes b) No To know the employees that they are satisfied with the present appraisal system on the basis of 50 responses following data is observed. SI. No. Category No. of Respondents Percentage of respondent s 1 Yes 35 70 2 No 15 30 Analysis and Interpretation By viewing the data, Most of the employees are satisfied with the present performance appraisal System followed in the organization. 8. Does the performance appraisal system followed by your organization Improves the overall performance of organization? a) Yes b) NoTo understand the performance appraisal system followed in your organization Improves the overall performance of organization, by taking 50 respondents d? is observed. SI. No. Category No. of Respondents Percentage of Respondents 1 Yes 35 70% 2 No 15 30% Analysis and Interpretation By observing the given data, the performance appraisal system followed in the MAHINDRA & MAHINDRA FINANCE SERVICE LTD. improves overall efficiency in the management and control over the staff towards the promotional policy and achievement of the goals. 9. Performance appraisal should be evaluated? ) More than once in a year b) Once in a year c) Occasionally To know the Employees opinion Perfo rmance appraisal should be evaluated for the period by taking 50 respondents data is observed, SI. No. Category No. of Respondents Percentage. Of respondents 1 More than Once in a Year 1327% 2 Once in a Year 3366% 3 Occasional 47% Analysis and Interpretation By viewing the above data, Most of the employees preferred to evaluate the performance appraisal yearly. 10. Do you get any counsellor from your superior in your day today work? a) Regularly b) Occasionallyc) non at allTo understand the employees opinion, to get the guidance from your superior in your day today work with the help of 50 respondents following data is observed. SI. No. CategoryNo. of RespondentsPercentage of respondents 1 Regularly 27 54% 2 Occasionally 20 40% 3 Not at all 3 6% Analysis and Interpretation By observing the given data, most of the employees wish to guide by the superior regularly in day to days and occasionally in specific purpose. 11. Do you think the performance appraisal Performa / program cover s all aspects of the job? a) Covers all aspectsb) Does not cover some aspects ) Does not cover many aspects. To know the overall employees opinion performance appraisal Performa / program covers all aspects of the job with the 50 respondents following data is observed. SI. No. Category No. of Respondents Percentage of respondents 1 Covers all aspects 20 40% 2 Does not cover some aspects 3 8% 3 Does not cover many aspects 27 52% Analysis and Interpretation By view the above data, most of the employees have reported that the appraisal Performa that does not cover many aspects of the jobs. 12. Which of the following is a better form of appraisal? a) Self appraisal b) Confidential reportsTo know the overall employees opinion which will be the better form of appraisal system, with the help of 50 respondents the following data is observed. SI. No. Category No. of Respondents Percentage of respondents 1 Self Appraisal 40 80% 2 Confidential Reports 10 20% Analysis and Interpretation By obse rving the above data, most of the employees wish to have their self appraisal is better than the confidential report. CHAPTER 4 LIMITATIONS OF STUDY LIMITATIONS OF THE STUDY The study is limited to the policies and practices being followed in Mahindra & Mahindra finance ltd. Time factor is the main constraint for the study as it was restricted only to eight-nine weeks. ? sampling error is not taken into consideration. ?The information given by the