Performance Appraisal of Mahindra Finance

CONTENTS CHAPTER NO PAGE NO CHAPTER 1 2-9 Introduction Need for the oeuvre Objectives of take Scope of airfield CHAPTER 2 10-31 come with write Industry Profile CHAPTER 3 32-66 Research orderology Primary entropy Secondary in course of instructionation Review Literature Data compend & translation 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 read FOR THE STUDY OBJECTIVES OF STUDY SCOPR OF STUDY INTRODUCTION executing shrewdness is the procedure of assessment consistently the writ of execution and establish of an employee on the sit telephone circuit and his potential for high level subscriber lines in future. It consists of either t altogetheryis procedures utilise in clip formations to respect personalities, contri besidesions and potentials of employees. It is the process of analyzing, obtaining and save info al near t he relative expense of an employee. According to Flippo functioning estimation is the constitutionatic, stageic and im giveial paygrade of an employees faithfulness in matters pertaining to his present job and his potential for a break in job.B respectively has delineate slaying judgement as the clayatic valuation of man-to-manist with strike to his/her achievement on the job and his potential for evolution, Heyel observes It is a process of evaluating the exertion and qualifications of the employees of the employer in terms of the requirements of the job for which he is employed. For the solve of administration including placements, alternatives for promotes, providing pecuniary rewards and opposite(a) actions which require variantial treatment among the members of a assemblage be distinguished from action affecting every last(predicate)(a) members equally.The instruction execution estimate is the military rating of present mental process and futu re capabilities of an employee or multitude of employees. It is regarded as a process of estimating or judging the value, excellence, qualities or status of nearly object, or person. functioning estimate is the character reference of all the other(a)(a) staffing process, namely recruitment, survival of the fittest and placement. Performance judgement is essential to to a scurvyer placestand and improve employees surgical operation by dint of and done HRD. In fact proceeding estimate is the stand for HRD. It is a high-priced mechanism to reign great deal.Employees want to promotional materials, salary increases, and upright work conditions and they would like to be placed in prestigious positions and would like to be pitchred to places of their prime(a) and like jobs giving them maximum satisfaction and so on. Therefore, employees get what they want, they should come apart what their superiors want. And exploit estimation is unitary mechanism to make su re that people at every level do things the way their superiors want them to do. thus the superiors at every level strive for better writing of their have got carrying out by assessing the executing of their subordinates and thus controlling their air.The success of an presidency volition therefore look on its ability to measure accurately the surgery of its members and hold it objectively to optimize them as a virtual(prenominal) resource. At the every disclose(a)set, it may be pointed out that the surgical operation appraisal is a continuous function and not merely an issue of baronial reports at particular point of era. Organization needs to measure employee exercise to fix whether acceptable standards of surgical procedure argon existence maintained.The six firsthand criteria on which the value of writ of execution may be assessed be quality, timeliness, personify soundness, need for supervision and interpersonal impact. If appraisals indicate that emp loyees ar not playing at acceptable levels step can be interpreted to simplify jobs, trains and motivate workers, or dismiss them depending upon the reasons for unretentive performance. EVALUTION OF operation APPRAISAL. Employees appraisal techniques atomic gracious action 18 said to have been used for the first time. During the first world war, when, at the instant of Walter Dill Scott, the US Army adopted the Man-to- Man rating administration for evaluating military violence.During the 1920-30 cessation, rational wage structures for hourly paid workers were adopted in industrial units. Under this system, the policy of giving grade wages increment on the basis of merit was accepted. These early employee send offs were called merit rating courses, which go along to be so called up to the mid-fifties. By then, most of these plans were of the rating eggshell type, where stress was demon over to factors, role point and points in the early professional & managerial power, Since then, as a result of experiments and a great professional and managerial staff office.Since then, as a result of experiments and a great deal of study, the doctrine of performance appraisal has belowg wiz tremendous changes. Consequently, a change has in like manner taken place in the terminology used. zero(prenominal), the older phrase merit rating is largely restricted to the rating of hourly paid employees, and it is used oft in developing criteria for salary adjustment, promotions, transfer etc. the later phrase, personnel appraisal, places emphasis on the development of the individual as and widely used to evaluate technical, professional and managerial personnel.Prof. B apiece has grantd a recyclable chart, present the changes in the terminology of employee appraisal which have taken place since 1920. Although the interestingness in the use of performance appraisal has increased over the at last thirty years, the usage of globely 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. 1940increase 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 opposite ways. Common descriptions include performance appraisal, merit rating, behavioral assessment, employee evaluation, personnel review, progress report, staff assessment, service rating and fitness report. Some personnel authorities use such(prenominal) concept interchangeably, composition interpret roughly of these appraisal phrases contraryly. However the term performance appraisal or evaluation is most widely used. NEED / IMPORTANCE OF STUDY Performance estimation is a formal exercise in which an judicature makes an evaluation in a documented form of its employees, in terms of contributions do towa rds achieving organisational objectives and or their personal strengths and failing, and in terms of attributes and behaviors demonstrated for meeting whatsoever objectives the physical composition may consider germane(predicate). ?appraisals argon judgments, grapples and performances of employees. Performance judgment is an better instrument for overhaul one egoing, people grow and develop in organizational settings.It could as an essenceive mechanism of continuing education learning from one another. ? pop the question association or so the performance ranks. Decisions regarding salary fixation, confirmation, promotion, transfer and demotion atomic number 18 taken based on performance. ?Provide feedback information some the level of act & behavior of the subordinate. This information dos to review the performance of the subordinate, rectifying performance deficiencies and to set smart standards of work ? Provide information which dishs to counsel the subordina te. ?To prevent grievances and in disciplinary activities in organization. Provide information to diagnose deficiency in the employee regarding skill, experience, determine training and development needs and to prescribe the means for employee growth provides information for placement. OBJECTIVES OF STUDY Performance appraisal aims at attaining take issueent purposes, they ar ?To enable distributively employee to translate his role and become effective on the job. ?To increase the development needs of all(prenominal) employee. ?To work and maintain a adapted level of performance. ?To contribute to the employee growth and development done training, self and concern development programmes. To help the superiors to have a thoroughly grounds some their subordinates. ?To guide the job changes with the help to continuous be. ?To facilitate fair and upright compensation based 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 correcting the employee for standard and improved performance and suggesting the change in employee change in behavior. ? To serve as mechanisms for importing communication between the superiors and subordinates. To help management in fastener employees according to their capacity, interest and dexterity and qualifications. ? To provide a valid entropy base for personal lasts concerning placements, pay, promotions, transfer and punishment. Main Objectives of Performance idea From the organizational point of view, performance appraisal serves cardinal sets of goals, 1. Evaluation goals. 2. Coaching and development goals. Evaluation goals ?Give feedback to subordinates so that they fare where they stand. ?To develop valid information for pay an promotion decisions and to provide a means of communicating these decisions. To help the organization in making dischar ge and retention 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 mobile phone employees of Mahindra & Mahindra finance ltd. To asses the performance appraisal system, to know the employees perception towards PAS. CHAPTER 2 ac telephoner PROFILE INDUSTRY PROFILE COMPANY PROFILE Mahindra convention embodied as Mahindra & Mahindra in 1945. the telephoner was re-christened Mahindra &Mahindra in 1948. J. C Mahindra K.C. Mahindra Core purpose Indians atomic number 18 second to none in the world. The Founders of our Nation and of our organization passionately believed this. We pass on prove this right by believing in ourselves and by making Mahindra & Mahindra Ltd. Known worldwide for the quality, durability and reliability of its fruits and work. Anand Mahindra Keshub Mahindra Auspices of JIPM Japan. Mahindra & Mahindra Tractors was awarded the Deming apprise for excellence in quality Mahindra & Mahindra becomes the first Indian tractor comp some(prenominal) to hand sales of 1 million tractors. Mahindra Champion becomes Indias highest selling large 3 wheeler within four years of launch. 2004 Mahindra & Mahindra and Renault set up a joint venture Mahindra & Mahindra announced the launch of Mahindra Australia Mahindra & Mahindra Joint Venture with Chinas make noise Tractor confederacy. Mahindra Auto motive Steel Pvt Ltd (MASPL) a new-fashionedly formed supplementary of Mahindra & Mahindra Ltd. Acquired Chakan unit of Amforge Industries Ltd. 2005 Leaders in diverse business sector SectorLeaders in AutomotiveUtility Vehicle call down EquipmentTractors Telecommunication & softw be Time Shargon Resorts & engine room ParksRural pay Mahindra & Mahindra Financial operate Limited History Mahindra pay was embodied on January 01,1991 with Mahindra & Mahindra Ltd. Leading Manufacturer of gain vehicles and tractors in the country a nd Kotak Mahindra finance Ltd. deal Statement To be the number one Rural finance Company and continue to retain leadership position for Mahindra products. Mahindra Finance will provide products and services tailored to the needs of M&M, its most favoured customer. In aspect of demand supply mismatch of funds, Mahindra finance Will get 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 small proportion of mahindra Finances meat business. Mahindra Finance will help M develop better products by providing first hand information authoritative from the target market. Mahindra Finance Strengths The vision of Mahindra Finance is validated by its strength, which argon ?P arentage of M Ltd. RBI classification as HP Company ?Excellent re throwation for prompt repayment. ?Wide rural net work. ? bargainer share retentiveness and relationship of dealers with M ?ensure dealer commitment Well affiliated to M& M / Dealer network. Wide knowledge of rural support Mahindra Finance Values ?Good corporate Citizen ship ?Professionalism ?Customer origin ?Quality Focus ?Dignity of the Individual. Milestone 1991Mahindra Finance Incorporated on 1st January Commenced Regular Operations Employees 5 spending 6 Crores Disbursement 37 Crores Employee 15 Branches 4 1994Disbursement 757 Crores 1994-95Employee 52579 Branches 343 1999-00Significant Milestone in terms of complete pluss 2000-01Steep rise in business volume with total contracts of 76663. Celebrated their 10* Anniversary.Retail Financing Covered 80% of Indian Districts. Financing no- M Vehicles. 2001-02MMFSL meshing ski bindinged 180 branches (98% of total districts throughout the nation) 2004Mahindra Insurance Brokers Ltd is incorporated 2005Branches256 Employee 1812 Contracts 336891 incision of Mahindra Finance To ensure smooth & effective functioning of the organization, Mahindra Finance has been split up into various plane sections ? Operations ?Finance ? abrasioneting ?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 basis oTake prior acclamation form your immediate supervisor for Leave, travel or any expenses oInform your supervisor immediately in case you come across any case of misconduct relating to cash or assets o Trust and respect colleagues, customers, vendors and associates. Donts oSalary information should not be shared or compared oDont indulge in misappropriation of cash or assets, this will invite disciplinary action. o Do not use abusive language in public. ?Operation Dos oOnly Mahindra Finance employees should deal with customers/dealers for their payments and collections. Collect & Habituate Customers to pay On or sooner Due Date. oDocuments mustiness have Duly Stamped and signed reason along with PDCs and security cheques. Donts oNo payment and / or collectio n should be carried out by any of the dealers/brokers/DSAs/ DmAs etc. ?Finance Dos oCustomer Centric (Internal as easily as External) Adhere and observe compliance to Company policies. o Data Accuracy and updation. o Always meet / Best the deadlines. Donts oDo not assume / relay on anything without proper documentation and authorization there by ensuring audit trail. Do not make any activity people lie but try to make it process oriented with help of systems. oAvoid duplication of work. ?Marketing Dos oAlways keep your eyes open for any matched merchandising 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 confidentiality of the companys marketing plan. oAlways provide a structured and written brief to the advertising office staff for all kinds of communication. Donts Never tamper with the corporate identity of the organization (like logos, symbols, v itrine colors etc). o Dont execute any activity (eg promotional campaign, product launch, etc. ) without the involvement and inputs from the local representatives of the field operation team. ?Legal Dos oBe pro agile rather than reactive. oKeep the documentation immaculate. Its better to arise than to repair. Donts oDont ignore any correspondence, whether from the customer, guarantor, their lawyers, amends 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 muffle unessential paperwork. ?Save power and reduce wastage 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 infobase. The company deposits yo with this information. Dont violate company trust by scrutinizing through this information or disclosing the same. ?HR Dos oMaintain confidentiality of all information every(prenominal) employees of the organization are our innate customers. Treat them with respect & Provide required resources to help them perform better, o Reserve criticism for private countersigns whereas rewards and intelligence to be addressed in public Donts oDont make biased decision all employees should receive equal respect and opportunity o Do not make commitments on behalf of management without prior authority. Organization structure A sound organization structure ensures a smooth progress path & achieving of milestones. Mahindra Insurance Broker Ltd (MIBL) ?MIBL is a wholly owned appurtenant of Mahindra Finance MIBL manages the Motor policy for Mahindra Finances retail customers ? MIBL is a direct insurance policy broker for Life and Non-life products, and operates in the Retail and Corporate lines of business Vision To be come Indias most admire d insurance Intermediation Company Goal To be among the top 5 direct insurance brokers of India by 2010 Work Culture & Classification Mahindra Finances work culture is a mannikin of shared attitudes and beliefs. Some of the important aspects of this work culture are ? pioneer and transparent communication and feedback ?Internal and external customer focus Creating and upholding a learning environment ?Proactive orientation ?Creating result through synergy. enthronement ADVISORY We at Mahindra Finance are all-encompassing of clients needs. So while we believe in making assets easily functional, 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. uncouth Fund Distribution Recently we have received the necessary permission from Reserve Bank of India (RBI) to start the scattering of Mutual Fund products through our network.Hitherto we were only participating in the li ability requirements of our customers but with a uncouth fund distribution business, we can also participate in their asset allocation. When it comes to investing, everyone has unique needs based on their own objectives and risk profile. patch numerous investment avenues such as fixed deposits, bonds etc, it is normally seen that equities typically outperform these investments, over a longer period of time. Hence we are of the scene that, overbearing investment in equity allows one to create substantial wealth.However, investing in equity is not as unprejudicedton as investing in bonds or bank deposits, because only proper allocation of portfolio gives maximum returns with moderate risk, and this requires expertise and time Our investment consultative services you invest your money in equity through take issueent Mutual Fund Schemes. We ensure the best for our clients by identifying products best accommodate to individual needs continent except Antarctica. M&M one tractor m anufacturing plant in China, three assembly plants in the United States and one at Brisbane, Australia.It has do strategic acquisitions across the globe including Stokes Forgings (UK), Jeco Holdig AG (Germany) and Schoneweiss & Co GmbH (Germany). Its global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA Inc. and Mahindra confederation Africa. M&M has entered into partnerships with international companies like Renault SA, France, and International Truck and locomotive Corporation, USA. Forbes has ranked the Mahindra separate in its Top 200 list of the Worlds virtually time-honored Companies and in the Top 10 list of Most Reputable Indian companies.Mahindra has late been honored with the Bombay Chamber Good Corporate Citizen grant 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 shar eholders. Here we have a dedicated section of up-to-date information, from our financials to our events and presentations faint access to information at the click of button. Much like most of our quick and simple 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. turn 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 suitable to our customers needs. group STRUCTURE We are a company with a strong tooshie and a shining legacy, growing every day to create a legacy of our own.Our leading 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 supplement to our b usiness, in May 2004, we started an insurance broking business through our wholly owned subsidiary, Mahindra Insurance Brokers Limited. ABOUT MAHINDRA classify The US $6 billion Mahindra aggroup 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 make a milestone entry into the passenger car segment with the Logan. The Group has leading presence in name sectors of the Indian economy, including the financial services, trade and logistics, automotive components. Information technology, and infrastructure development.With over 62 years of manufacturing experience, the Mahindra Group has built a strong base in t echnology, engineering, marketing and distribution which are find out to its evolution as a customer centric organization. The Group employs over 50,000 people and has several state-of- the-art facilities in India and overseas. The Mahindra Group has aspirant global aspirations and has presence on five continents. Mahindra products are like a shot 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 APPRAISAL SYSTEM IN MAHINDRA & MAHINDRA FINANCE SERVICE LTD. In MAHINDRA & MAHINDRA F INANCE SERVICE LTD. the performance appraisal report is annual and is co-terminus with financial year, i. e. , 1st April, to the end of March bordering year. There is no need to write in duplicate. No one-year judgment crosss are unavoidable to be written by officers under suspension and on duty for less than two months during the reporting year. Where officers are transferred before the full period should write the appraisal reports for that part period straight away after obtaining the self assessment reports from the officers concerned and identify the same to competent authority through proper channel.Reporting police officers who get palliate without writing AARs are liable for disciplinary action. In case of devastation or non-availability of reporting officer for any acceptable reason, the AARs can be written by the next higher(prenominal) authority straight away. look for signing of the AARs is normally done by the officer under whom the describe officer works. In case of sudden illness, death retirement or for any acceptable reason, the counter signing officer or the toss of the Department is not available, AARs can be signed by the officeholder at the time of receipt of AARs by him.A self assessment Report in the proffering designed is obtained from the reported officer on the duties performed by him during the period under report within 15 days after the end point of the reporting year for writing the AAR. If the Self approximation Report is not received, for any reason, the reporting officer may write the AAR punctually recording the fact of non receipt of SAR. The acceptance or otherwise of the SAR should be endorsed in the tower provided. The reasons for non acceptance should be recorded untoward remarks, if any with, proper substantiation should be communicated to the Reported officer by the final 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, Satisfactory and slimy performance. Grading A,B & E are to be supported by excuse along with recorded proof. Without such exculpation, the overall writing can be reduced to C grade by the counter signing officer duly recording that the grading is allotted as no justification is forwards coming from the reporting officer.If the countersigning officer wants to award polar grades, full justification with specific instances should be furnished by them. The grading awarded by opposed 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 publicity Committees. The sum total of marks against rating awarded in respect of each item will determine the over all rating as follows A pit 81% and preceding(prenominal) 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 modernize 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 incompatible levels, nature of decision involved vis-a-vis, the cadre of employee and the sequential parturiencys 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 keeping in view the mandatory nature of compliance under the service regulations, l eave regulations etc. optimum time required for performance of the task and the periodicity of performance. The points earned on an add up overall the relevant Performance Indicators in a month by an employee will be the grade point average (Grade stage Average 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 shell 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) = Total 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 future(a) criteria is adopted for fixing the merit in respect of Class-Ill and in a higher place Officers for promotions to higher categories. ) The total marks obtained in last five years AARs/CRs are added and apportiond 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 assigned more than five ranks.These five ranks shall be assigned as indicated below. tag 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/ longevity in the existing cadre. CHAPTER 3 RESEARCH orderOLOGY a) PRIMARY selective information ) SECONDARY DATA REVIEW LITERATURE DATA ANALYSIS AND rendition RESEARCH systemOLOGY Research is an academic activity and as such the term should be used in a technical sense. gist of Research D. Slesinger and M. Stephenson in the Encyclopedia of Social Sciences define research 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 drill 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 research are as follows 1. Descriptive & Analytical 2. Applied & Fundamental 3. Quantitative & soft Research Process The following(a) order concerning various steps provides a profitable procedural guidelines regarding the research process 1. Formul ating the research problem 2. immense literature survey 3. Developing the hypothesis 4. Preparing the Research design 5.Determining have design 6. Collecting the Data 7. Execution of the Project 8. compend of selective information 9. Hypothesis testing 10. Generalizations and definition, and 11. Preparation of the report or presentation of the result, i. e. formal write-up of conclusions reached. Sample Design Samples can be either probability specimens or non-probability samples. Probability samples are those based on simple random sample distribution, 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 . simplistic random Sample 3. Systematic Sample Collection of the Data The systemology being following for the study is entropy 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 promiscuous interviews 3. Feedback obtained form the employees B)Secondary Data The sources of secondary data comprises of 1. Manual of the Organization 2. Books published by different agencies 3. Other relevant 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. Key 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 expected 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 authenticator should do and the effort he has to put in moreover, an identification of KPAs given and intelligence 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 performance 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 fulfilment of subjectively involved in trait based appraisals and recognizing the need to promote performance orientation rather 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 appraise 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 analysis should be done both by the appraise and appraiser separately and exchanged during review discussions. 4. Performance abridgment Performance Appraisal should be based on the performance training dimensions. The work done or the performance during the year should be befuddled down into various KPAs/KRAs/tasks/targets. Performance under each of the above should be analyzed under the following headings. How is the unfeigned performance with respect to the think performances what factors contributes to the achievements from the point of view of the appraise, appraiser environment etc. 5.Performance Review backchat or counselor 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 analysis of appraiser s 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 increase their job effectiveness. . Performance judges One of the profitable 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 hard 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 o r capability (he appraise needs to develop in order to perform a given task better. This rather than (raining program titles. It is profitable to needs of all employees and work out strategies and plans to meet them. 8. utmost assessment by the Appraise In some organizations the final ratings given by the appraiser are not shown to the 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 conflate it up with development oriented appraisals. 9. Re aftermath officers Role In almost all organization the requiring officer given an important role. As the reviewing officer has a larger responsibility, span of control, authority and accountability, it is useful to design a substantive role for him in the appraisal process. The remaining officers, to examine the rating behavior of the reporting officers, giv e recommendations on developmental needs. 0. Potential Appraisal A system of developing employees for occupying higher positions in the organizational hierarchy to play higher potential appraisal. A good potential appraisal system attempts to generate data about employees and their potential for occupying higher positions from a intermixture of sources, and helps the top management to make decisions about the suitable persons for given job. 11. tactile sensation by the Appraiser 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 invalidating 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 up to(p) 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 performance 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 acting can be useful in o rganizational 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 verity can be better judged by the customers or users of services.Consultants Some time 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 on the loose(p) 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 follow s a set pattern and consists few move Establishing Performance Standards Communicating the Standards Measuring actual performance Comparing the actual with the Standards Discussing the Appraisal pickings 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 criteria is stipulate with the help of job analysis which discovers 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 t he standards are made known to the employees, they will try to make their performance equal or above them. . Measuring actual performance one time the performance standards are specified and accepted, the next stage is the actual performance. This requires choosing the right technique of measurement, identifying the intragroup and external factors influencing performance and collecting and results achieved. Personal placards, written reports and acquaint to face contacts are the means of collecting data and performance. 4. Comparing the actual with the standards real performance is compared with the predetermined performance standards. Such comparison will reveal the deviations. Deviations may be supportive 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 discusse d 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. restorative action may be in the form of advice, council or warning.It may also be in the form of additional training, refresher courses, delegacy of more authority, special assignment and coaching, etc. these actions will be useful in helping 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. Methods 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 suitable to be appraisal. Secondly, they differ because of the dif ferent 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 classified into traditionalistic and modern methods. METHODS OF PERFORMANCE APPRAISAL Traditional Methods Modern Methods 1. Straight ranking method 1.Assessment Center 2. Man to man comparison method 2. Appraisal by effects or 3. Grading Management by Objectives 4. Graphic range Scales 3. Human asset Accounting 5. Forced choice description method Method 6. Forced distribution method 4. BARS (Behaviorally 7. Check angle of inclination anchored rating eggshells ) 8. Freeform or essay method . Critical Incidents 10. Group Appraisal 11. Field Review Method TRADITIONAL METHODS 1. Straight Ranking Method 2. Man to Man co mparison method 3. Grading 4. Graphic Rating Scale 5. Forced choice translation method 6. Forced Description method 7. Checklists 8. Free Form Essay method 9. Critical incidents 10. Group Appraisals 11. Field Review method MODERN METHODS 1. Assessment Center 2. Appraisal by Result of management by Objective (MBO) 3. Human Asset According method 4. BARS (Behaviorally Anchored Rating Scales) TRADITIONAL METHODS STRAIGHT rank METHODIt is the oldest and simplest method of performance appraisal by which persons are tried and true 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. nevertheless it is a similar method of separating the most efficient form of the least efficient. MAN TO MAN COMPARISION METHOD By this method, reliable(a) factors are selected for the purpose of analysis (such as leadership, dependability and initiatives) and a scale is designed by the rates for eac h factor, and personnel are compared to the key man in respect to the factor of a given lime.But it is not of practically use because the designing 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 leniency which best describes his performance. GRAPHIC RATING 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 definition METHOD The forced choice method from contains a series of gr oups of statements, and the rater checks how effectively the statements describes each individuals being evaluated The use of this method calls for minimum 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 illiterate of evaluating the individuals. FORCED DISTRBUTION METHOD In this method the rater is forced to distribute his subordinates into performance categories such as outstanding good poor etc. all(prenominal)one 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 t he answer to a question about and employee is supreme or negative. This method suffers from bias on the part of the rater. FREE EASSY METHOD In this method the supervisor makes a kick form, open end appraisal of employees in his own words.The description is always a actual 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 INCIDENT METHOD Under this method work performance is measured 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 thoroug h, very simple and is divide of any bias, of it number multiple judges. But it is very time consuming. sector REVIEW METHOD Under this method, a trainer employee from the personnel department interviews line supervisor and is required to give his opinion 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 personality 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 inside 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 social situations, using a number assessors and a variety of procedures the most important features of the assessment center is job associate 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. Judges 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 current value of the firms human organization can be appraisal by developed procedures, by understanding periodic measurements of by cursory and intervening enterprise variables. The by casual variables include the structure of organizations management policies, business leadership, strategies, skills 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 decisive 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 ancho rs 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 and 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 destroy the profit of the performance system resulting in accurate and invalid appraisals, which are unsportsmanlike too. There are many significant factors, which deter or lug objective evaluation. HALO EFFECTIt is a end to let the assessment of an individual one-trait influences the valuation of that person on other specific trait. Ther e is this effect in appraisal when the appraiser assigns the same rating to all traits disregardless of an employees actual performance on these traits. The Halo 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 affirmative or not this means that the air effect allows one characteristic, observation or occurrence 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 hostile employee towards the appraiser. In such cases, a very high role may be given to an unfriendly employee so that he may be by pa ssed 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 generation they may have a tendency to assign consistently low ratings. The former tendency is know as positive leniency misconduct, 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 observer by supervisors and form different interpretations of what they evaluate in employee performance. The tendency can be avoided by holding meetings or training sessions f or raters so that they may understand what is required of them in rating. SIMILARITY ERROR This type of fracture occurs when the evaluator rates other people in the same way he has perceived himself. For pattern the evaluator, who peruses himself s aggressive, may evaluate others by looking for aggressiveness. MICELLANEOUS BIASES Bias against employees on ground of Sex, Religion and Caste position is also a gross 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. compendium 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 y our opinions 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 one C responses following data observed. SI. No. fellowship No. of respondents ploughshare of respondents 1Monthly1632% 2Half-twelvemonthly1020% 3Yearly2448%Analysis and variation By observing the above data, most of the employees are well-to-do 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 sign language 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 Respon dents 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 responses 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 Achievement 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 contented with the present appraisal system? a) Yes b) No To know the employees that they are well-to-do with the present appraisal system on the basis of 50 responses following data is observed. SI. No. Category No. of Respondents Percentage of respondents 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 R espondents 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 Performance 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 instruction from your superior in your day today work? a) Regularly b) Occasionallyc) Not at allTo understand the employees opin ion, 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 covers 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 observing 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