ABOUT THE TOPIC

A performance appraisal, employee appraisal, performance review, or (career)

development discussion is a method by which the job performance of an employee is evaluated
typically by the corresponding manager of supervisor. A performance appraisal is a part of
guiding and managing career development. It is the process of obtaining, analyzing, and
recording information about the relative worth of an employees recent successes and failure,
personal strengths and weaness, and suitability for promotion or further training. It is also the
judgment of an employees performance in job based on considered other that productivity alone.
!he other terms used for performance appraisal are" performance rating, employee
assessment, employee performance review, personnel appraisal, performance evaluation,
employee evaluation and (perhaps, the oldest of the terms used) merit rating.
Definition:
#$erformance appraisal is an objective assessment of an individuals performance against well
defined benchmars%.
#$erformance appraisal is defined by &ayne 'ascio as #the systematic description of
employees job relevant, strength, weaness%.
Process of performance appraisal:
$rocess of performance appraisal followed by different companies is different. A general
procedure is e(plained below with the help of a diagram.
$rocess of performance appraisal
)etting performance standards
'ommunicating standards set to the employee
*easuring performance
'omparing performance with standard
+iscussing result
'ollective active
,
Implementation and review
Setting performance standards
In this very first step in performance appraisal, the ,- department decides the standards of the
performance i.e. they decide what e(actly is e(pected from the employee for each and every job.
)ometimes certain maring scheme may be adopted.
Communication standard set to the emploee
)tandards of performance appraisal decided in .irst step are now conveyed to the
employees so that the employee will now what is e(pected from him and will be able to
improve his performance.
!easuring performance
!he performance of the employee is now measure by the ,- department, different
methods can be used to measure performance i.e. traditional and modern method. !he method
used depends upon the companys convenience.
Comparing performance "ith standard
!he performance of the employee is now judged against the standard. !o understand the
score achieved by him. Accordingly we come to now which category of performance the
employee falls into i.e. e(cellent, very good, good, satisfactory etc.
Discussing result
!he result obtained by the employee after performance appraisals are informed or
employee asing him to change certain aspects of his performance and improve them.
Collecti#e action
!he employee is given a chance or opportunity to improve himself in the areas specified
by the ,- department. !he ,- department constantly receives or eeps a chec on the
employees performance and notes down improvements in performance.
Implementation and re#ie"
!he performance appraisal policy is to be implemented on a regular basis. A review must
be done from time to time to chec whether any change in policy is re/uired. 0ecessary changes
are made from time to time.
$imitations of performance appraisal
!he following are some of the limitations of performance appraisal systems. !hey are as follows"
Halo effect:%
In this case the superior appraises the performance on certain positive /ualities only. !he
negative traits are not considered. )uch an appraisal will not give a true picture about the
employee. And in some cases employees who do not deserve promotions may get it.
Horn effect:%
In this case only the negative /ualities of the employee are considered and based on this
appraisal is done. !his again will not help the organization because such appraisal may not
present a true picture about the employee.
Ad#antages of performance appraisal:
$erformance appraisal is defined by &ayne 'asio as #the systematic description of
employees job relevant, strength, weaness.
&' (eed)ac* to the emploees:%
$erformance appraisal is beneficial because it provides feedbac to the employee about
his performance. It identifies the areas for improvement so that employee can improve itself.
1. Training and de#elopment:2
+ue to performance appraisal it is easy to understand what type of training is re/uired for
each employee to improve himself accordingly training programs can be arranged.
+' Helps to decide promotion:%
$erformance appraisal provides a report about the employee, 3ased on this report future
promotions are decided, incentives, salary increase is decided.
,' -alidation of selection process:%
!hrough performance appraisal the ,- department can identify whether any changes are
re/uired in the selection process of the company normally a sound selection process results in
better performance and positive appraisal
.' Deciding transfers and la off of the "or*er:%
4mployee with specific talent can be transferred to places where their talents are utilized
properly5 similarly decisions regarding termination of employees depend upon performance
appraisal reports.
/' Human resource planning and career de#elopment:%
'ompanies can plan for future vacancies at higher levels based on performance appraisal
reports. )imilarly career planning can be done for the employee on the performance appraisal
report.

0ature of performance Appraisal
In simple terms, performance appraisal may be understood as the assessment of an
individuals performance in a systematic way, the performance being measured against such
factors as job nowledge, /uality and /uantity of output, initiative, leadership abilities,
supervision, dependability, co2operation, judgment, versatility, health and the lie. Assessment
should not be confined to past performance alone. $otentials of the employees for future
performance must also be assessed.
O)1ecti#es of the performance appraisal
+ata relating to performance assessment of employees are recorded, stored, and used for
several purposes. !he main purposes of employee assessment are"
!o effect promotions based on competence and performance.
!o confirm the services of probationary employees upon their completing the
probationary period satisfactorily.
!o assess the training and development needs of employees.
!o decide upon a pay raise where (as in the unorganized sector) regular pay scales have
not been fi(ed.
!o let the employees now where they stand insofar as their performance is concerned
and to assist them with constructive criticism and guidance for the purpose of their
development.
Performance appraisal and competiti#e ad#antage:
!he objectives of performance appraisal, listed above, point out the purpose which such
an e(ercise sees to meet. &hat needs emphasis is that performance evaluations contribute to
firms competitiveness strength. 3esides encouraging high levels of performance, the evaluation
system helps identify employees with potential, reward performance e/uitably and determine
employees need for training.
Performance appraisal and competiti#e ad#antage
'ompetitive
Advantage
*aing
correct
+ecisions
)trategy and
3ehavior
6alues and
3ehavior
4nsuring 7egal
'ompliance
*inimizing
+issatisfaction
and !urnover
Improving
$erformance
Ho" performance Appraisal can Contri)utes to firm2s Competiti#e
Ad#antage
Impro#ing performance
An effective appraisal system can contribute advantage by improving employee job
performance in two ways2by directing employee behavior towards organizational goals.
!a*ing correct Decisions
As stated above, appraisal is a critical input in maing decision on such issues as pay
raise, promotion, transfer, discharges and completion of probationary periods. -ight decision on
each of these can contribute to competitive strength of a firm. If promotion, for e(ample, is made
on performance, the promote feels motivated to enhance his or her performance.
Ensuring $egal Compliance
$romotions made on factors other than performance might land up a firm in a legal battle,
thus diverting its focus on non2productive areas, as it happened to &illiamson *agar. 'ompanies
can minimize costly performance2related litigation by using appraisal systems that give fair and
accurate ratings.
!inimi3ing 4o) Dissatisfaction and Turno#er
+issatisfaction in the job sets in and one of the outcomes of job dissatisfaction is increased
turnover. .air and accurate appraisal results in high motivation and increased job satisfaction. An
organization having satisfied and motivated employees will have an edge over its competitors.
!ethods of Appraisal
!he last to be addressed in the process in the process of designing an appraisal
programme is to determine method(s) of evaluation. 0umerous methods have been devised to
measure the /uantity and /uality of employees job performance. 4ach of the methods discussed
could be effective for some purposes, for some organization. 0one should be dismissed or
accepted as appropriate e(cept as they relate to the particular needs of the organization or of a
particular type of employees.
3roadly, all the approaches to appraisal can be classified into
(8). $ast 9 oriented methods, and
(1) ..uture2oriented methods.

5ating
Scales

!his is
the simplest
and most
popular techni/ue for appraising employee performance. !he typical rating2scale system consists
of several numerical scales, each representing a job2related performance criterion such as
dependability, initiative, output, attendance, attitude, co2operation, and the lie. 4ach scale
ranges from e(cellent to poor. !he rater checs the appropriate performance level on each
criterion, then computes the employees total
Chec*list
:nder this method, a checlist of statements on the traits of the employee and his or her
job is prepared two columns2viz., a ;yes column and a ;0o column. All that the rater
(immediate superior) should do is tic the ;yes column if the answer to the statement is positive
and in column ;0o if the answer is negative.
(orced Choice !ethod
In this, the tater is given a series of statement about an employee. !hese statements are
arranged in blocs of two or more, and the tater indicates which statement is most or least
descriptive of the employee.
$I!ITATIO0S O( THE STUD6
!he survey is subjected to the bias and prejudices of the respondents
,ence 8<<= accuracy cant be assured
!he researcher was carried out in a short span of time, where in the researcher could
not widen the study.
!he study could not be generalized due to the fact that researcher adapted personal
interview method.
SCOPE O( THE STUD6
!o identify the stress level of the job of employee.
!his study is helpful to that organization for conducting further research
It is helpful to identify the employers level of satisfaction of the job.
!his study is helpful to the organization for identifying the area of dissatisfaction
of job of the employees.
!his study helps to mae a managerial decision to the company.
ABOUT THE CO!PA06
Profile:
4stablished in 8>?@
!echnical collaboration with 0isshinbo 3raes Inc, Aapan
Application in every segment of automobile industry
Broup turnover of @>@ million :)+ for the year 1<8C 2 8@
)erves a variety of industry segments" $assenger 'ars, *ulti :tility 6ehicles, 7ight
'ommercial 6ehicles, *edium D ,eavy 'ommercial 6ehicles, .arm !ractors, !hree2
wheelers, !wo2wheelers and )tationary 4ngines
I)E2><<8"1<<F, I)EG!)28?>@>"1<<>, I)E28@<<8"1<<@ D E,)A)28F<<8"1<<H certified
Domestic !ar*et $eadership:
7eader in 'ommercial 6ehicle G $assenger 'ar G :tility 6ehicle D !wo &heeler
applications
7eading supplier of composite brae blocs to Indian -ailways
*ost preferred brand in independent replacement marets
)ignificant supplier to )tate !ransport :ndertaings
E7ports:
o $roducts supplied to 8I countries
o )upply e(perience to )ri 7anan -ailways for composite brae blocs
o -ange D technology for Indian G 4uropean 'ommercial 6ehicle
references
o '6 disc brae pads to 4urope
Design:
-esearch and development is prime thrust area
7ibrary of widely tested D approved formulations to suit diverse maret G
customer re/uirements
3enchmar capability to develop friction materials as per customer choice
-D+ centre approved by +epartment of )cience D !echnology,
Bovernment of India
+edicated facility for new product development for critical applications
including aerospace D sintered friction materials
$roducts are consistently updated in tune with evolving customer demands
Breen material policy is being continuously evolved to ensure products meet
stringent eco norms
+esign centre has 'omputer Aided +esign ('A+) and sophisticated test
e/uipments lie full scale inertia dynamometers attached with 4nvironment
'hamber, )tatic *u measurement and 0oise )tudying
Technolog:
0AE and 7ow )teel products to meet futuristic vehicle re/uirements.
Access to 0isshinbo global formulation library.
*ore than @<< formulations in -37 library.
Access to 0isshinbo test facilities for special test purpose including 06,
evaluation.
5 8 D Capa)ilities:
'omprehensive test laboratory for performance characteristics validation.
Interpretation of results to international standards.
!o stimulate field conditions on dynamometer for product development.
)intered friction material.
!anufacturing Units:

Chennai Plant:
Automotive $roducts " 3rae linings, disc pads and clutch
facings
-ailway products " 'omposite brae blocs
Aerospace " Erganic pads for trainer aircraft
Hyderabad Plant:
Automotive $roducts " 3rae linings, clutch facings D sintered
clutch
buttons
-ailway $roducts " 'ompositive brae blocs
Puducherry Plant:
Automotive $roducts " +isc pads, clutch facings D '6 3rae $ads
-ailway $roducts " 'omposite 3rae 3locs
Trichy Plant:
Automotive $roducts " +isc $ads D 3rae linings
9ualit:
$roducts are routed through stringent /uality norms to match customer e(pectations
Accredited with I)E ><<<"1<<F, !)8?>@>"1<<>, E,)A) 8F<<8"1<<H and I)E
8@<<8"1<<@ certifications
+eming $rize winner in the year 1<<C
+eming Brand $rize winner (formerly AJ*) in the year 1<8C
Juality .ocus through"
!otal 4mployee Involvement
$oa Koe implementation
)$' $ractices

Products:
Bra*e $inings
7ow )teel D 0AE formulation range
Disc Pads
0AE, 7ow )teel D )emi metallic formulation range
5ail"as Bra*e Bloc*s
7 type low friction, L type high friction, *etro -ail
Clutch (acings
*oulded
'hord &oven
Commercial -ehicle Bra*e Pads
7ow steel formulation range
*echanical loc in pads
Sintered Bra*e Pad % 'opper D Iron 3ased formulations