INTRODUCTION:

The Bajaj group came into existence during the turmoil and the heady euphoria of Indias freedom struggle. Jamnalal Bajaj, founder of the Bajaj Group, was a confidante and disciple of Mahatma Gandhi, and was deeply involved in the effort for freedom. The integrity, dedication, resourcefulness and determination to succeed which are characteristics of the company today, are often traced back to its birth during those long days of relentless devotion to a common cause. Kamalnayan, the eldest son of Jamnalal Bajaj, succeeded his father in 1942, at the age of twenty-seven. Putting the Nation before business, he devoted himself to the latter only after India achieved independence in 1947. But when he did so, he put his heart and soul into it. Within a short while, he not only consolidated the group, but also diversified into various manufacturing activities, elevating the Group to the status it enjoys till this day. Rahul Bajaj today heads the group. He has been the Chief Executive Officer of Bajaj since 1968 and is recognised as one of the most outstanding business leaders in India. As dynamic and ambitious as his illustrious predecessors, he has been recognised for his achievements at various national and international forums. The Waluj plant inaugurated by the erstwhile President of India Shri Giani Zail Singh. Bajaj is currently Indias largest two and threewheeler manufacturer and one of the biggest in the world. Bajaj has long left behind its annual turnover of Rs. 72 million (1968), to currently register an impressive figure of Rs. 42.16 billion (US$ 936 million).

OUR PHILOSOPHY
We approach our responsibilities with ambition and resourcefulness. We organize ourselves for a transparent and harmonious flow of work. We respect sound theory and encourage creative experimentation. And we make our workplace a source of pride.

WE BELIEVE IN

Transparency: a commitment that the business is managed along transparent lines. Fairness: to all stakeholders in the Company, but especially to minority shareholders. Disclosure: of all relevant financial and non-financial information in an easily understood manner. Supervision: of the Companys activities by a professionally competent and independent board of directors.

MILESTONES
Caliber motorcycle notches up 100,000 sales in record time of 12 months. June 7th- Kawasaki Caliber Roll out of Valuf- July 25th- Legend, Indias first fourstroke scooter roll out of Akurdi. October 1998- Spirit launched. The Bajaj Super Excel is introduced while Bajaj Celebrates sale of its ten millionth vehicle.

INTERNATIONAL MARKETING
Based on our own brand of globalization, we have built out distribution network over 60 countries worldwide and multiplied our exports from 1 percent of total turnover in Fiscal 1989-90 to over 5 percent in fiscal 1996-97. The countries where our products have a large market are Argentina, Colombia, Peru, Bangladesh, Sri Lanka, Italy, Sweden, Germany, Iran and Egypt. Bajaj leads Colombia with 65 percent of the scooter market, in Uruguay with 30 percent of he motorcycle market and in Bangladesh with 95 percent of the three-wheeler market vehicle.

OTHER INFORMATION One million vehicles were produced and sold in this financial year. Production commences at waluj, Aurangabad in record time of 16 months.

Bajaj auto achieves production and sales of 100,000 vehicles in a single financial year.

Bajaj Auto rolls out its 100,000 the vehicle. Bajaj Auto obtains license from the Government of India to manufacture two and three-wheelers.

RESEARCH AND DEVELOPMENT

Bajaj Auto has huge, extensive and very well-equipped Research and Development wing geared to meet two critical organisational goals: development of exciting new products that anticipate and meet emerging customer needs in India and abroad, and development of eco-friendly automobile technologies. While the manpower strength of the R & D represents cross-section of in-depth design and engineering expertise, the company has also been investing heavily in the latest, sophisticated technologies to scale down product development lifecycles and enhance testing capabilities. Bajaj Auto R & D also enjoys access to the specialized expertise of leading international design and automobile engineering companies working in specific areas.

OBJECTIVES
1. To study the general business environment & history of Bajaj Auto Ltd. 2. Comparing Bajaj Bikes share in market to Hero Honda & TVs Suzuki Bikes. 3. Analysis of the (Bajaj Bikes) products, pricing, promotion & distribution strategies 4. SWOT Analysis of the strategy adopted.

RESEARCH METHODOLOGY
Data collection In this project both primary data as well as secondary data are used. Primary data:

Primary data used in this project is collected through two methods, namely, QUESTIONNAIRE METHOD and DIRECT PERSONAL INTERVIEW METHOD. Both these method proved to be great help in getting the required information. Secondary data: It is not possible to collect first hand information for each & every thing so; secondary data from various sources like Internet, D.K Neilsons report on Jan, 2007, Information from television channels like CNBC, Z Business, NDTV Profit etc. and Indian Info line website were used.

STATISTICAL & PRESENTATION TOOLS USED

PRIMARY DATA is: First classified i.e. grouped qualitatively and quantitatively according to the situation or the type of the data which was collected. After classifying is represented in the form of tables i.e. systematically arranged in columns and rows. Some of the data is also graphically represented in the form of PIE DIAGRAM.

SECONDARY DATA is represented: In the form of tables. By the way of bar graphs and Pie CHARTS

REVIEW OF LITRATURE
Performance appraisal has been one of the most debated management practices for several decades. It has generated a wide variety of viewpoints. A more comprehensive definition of Performance Appraisal is "Performance Appraisal is a formal structured system of measuring and evaluating employees job related behaviours and outcomes to discover how and why the employee is presently performing on a job and how the employee can perform more effectively in the future so that the employee, organization and society all benefit" Performance Appraisal consists of a systematic, face-to-face discussion of an employee's work performance, training and development needs, future job goals and job aspirations. It looks backwards, reviewing the employee's performance during the period under review and forwards, helping the employee prepare and set goals for the upcoming review period. Performance Management is central to most Human Resource practices. An

organization tries to increase productivity and performance there is an increased emphasis on appraisals. Over recent years there has also been a significant increase in the number of organizations linking Performance Appraisal of employees and managers with business plans and departmental goals. Managers also evaluate employees often also unconsciously. They know whether they are "good worker", reliable and conscientious. For a variety of reasons many organizations ask managers to make conscious formal evaluations of employees too. It may be as part of the organization's normal annual or biannual Performance Appraisal System, which gives everyone a chance to clarify aims and objectives, build on strengths and plan to strengthen weakness. In addition to these, there has been a trend through development in 'employment law' for Performance Appraisal to be viewed as important documentation for

legal protection. This reason alone is sufficient to emphasize the importance of valid and equitable appraisal management. Performance appraisal leads to the identification of the training and development needs of the employees. It also has close links with other important areas of human resource management, in particular with selection, motivation, and succession planning. Performance data provides relevant information required for validating selection methods and also helps in assessing whether selection methods are bringing high performers into the organization. Here the organization must not get trapped into the various pitfalls that come along with administration of appraisal system. The question that arises here is how to avoid these pitfalls? A necessary condition for the effective management of performance appraisal system in any organization is the need to clarify and communicate to all concerned the objectives that the system intends to achieve. The only possible way for organizations, to minimize the possible conflict among appraisal objectives, is to emphasize on climate setting that will facilitate achieving the objectives that an appraisal system intends to achieve. Thus what needs to be done is to encourage managerial styles that will lead to openness and frankness in relationships as a condition for establishing an effective performance appraisal system. The Indian companies need to realize that the relationship between organization culture and performance appraisal system is a two way process implying that they can successfully use their performance appraisal system to bring about cultural change. The design of Employee Performance Appraisal and Development Plan thus formed would assist in evaluating employee performance and identifying their potential and guide in developing a plan to improve his/her performance as also to prepare him/her for greater responsibilities in case of promotions and transfers. It should be filled carefully, thoughtfully and objectively. Before an appraisal is made, the superior should ensure that he/she and the employee are in agreement concerning responsibilities, for result expected and what constitutes satisfactory performance. The whole approach is a positive one; its purpose is improvement of individual's ability and performance.

The next fundamental question of importance is, to what extent, links should exist between performance appraisal pay decisions. The general trend with regard to the Indian organizations suggests atilt towards performance appraisal systems being linked to individual rewards and pay. The advocates of this trend argue that when performance appraisal system is linked to individual pay and rewards then all parties (appraisers, appraises and reviewers) take performance appraisal more seriously. Organizations are likely to develop performance -- oriented cultures, in which high performers are seen to receive extra rewards, and lower performers receive lower rewards

But at the same time the issues that need to be looked into when pay and performance appraisal are closely linked are:

The pay issue may overshadow all the other purposes of performance appraisal; there may be a tendency of employees to withhold negative information about performance, leading to less than frank appraisal discussions;

Employees may adapt their behaviours to focus only on receiving good ratings, rather than genuinely improve their overall performance.

SO THE QUESTION ARISES WHAT TO DO? 1. Firstly the organization must realize that pay related performance appraisal is likely to be effective only where jobs are designed in such a way that allows individual performance to be measured. Thus in situation characterized by high interaction among jobs in achieving results, group-related pay systems may be more appropriate. Thus before establishing company policies on the matter, it may be good idea to read about alternative methods for rewarding good performance like gain sharing or tying rewards to team performance or the company performance rather' than only to individual performance, 2. Sometimes a combination of reward systems works much better and has fewer nasty side effects than a single way of rewarding performance. The design of Employee Performance Management and Development Plan thus formed would assist in evaluating employee performance and identifying their potential and 7

guide in developing a plan to improve his/her performance as also to prepare him/her for greater responsibilities in case of promotions and transfers. It should he filled carefully, thoughtfully and objectively. Before an appraisal is made, the superior' should ensure that he/she and the employee are in agreement concerning responsibilities, for result expected and what constitutes satisfactory performance. The whole approach is a positive one its purpose is improvement of individual's ability and performance. The normal system consists of the following parts:

PART A: SELF-APPRAISAL - To be filled in by the appraise PART B: PERFORMANCE APPRAISAL

Authority/Superior
-- To be filled in by the Reporting

PART C: PERFORMANCE COUNSELING

-- To be filled in by reporting

Authority and to be discussed with the appraise along with person in charge.

PART D: SUMMARY OV ASSESSMENT- To be filled in by Review

Committee/Authority.

PART E: POTENTIAL APPRAISAL - To be filled in by the H0D / Unit head in

consultation with the reporting Authority.

How to Conduct a Performance Appraisal Process: The following five-step approach to conducting a systematic performance appraisal is recommended: 1. Identify key performance criteria. 2. Develop appraisal measures. 3. Collect performance information from different sources. 4. Conduct an appraisal interview. 5. Evaluate the appraisal process.

Step 1: Identify Key Performance Criteria Perhaps one of the most challenging aspects of setting up a performance appraisal is deciding what to assess. In essence, four key dimensions of performance should be considered in a performance appraisal. Key Dimensions of Performance Competencies Behaviours Results / outcomes Knowledge, skills, and abilities relevant to performance Specific actions conducted and / or tasks performed Outputs, quantifiable results, measurable outcomes and achievements, objectives attained Organizational citizenship behaviours Actions that are over and above usual job responsibilities

To ensure that the performance criteria are relevant to work practice and acceptable to appraisers and employees: i) Base the performance criteria on an up-to-date job description ii) Develop criteria in consultation with appraisers and employees.

I) Base the performance criteria on an up-to-date job description: Clear and explicit links between performance appraisal and a job description will ensure the relevance of the appraisal. If a detailed job description is not available or is out-ofdate, it is strongly recommended that an accurate job description be developed prior to conducting a performance appraisal. ii)Develop criteria in consultation with appraisers and employee: Linking performance appraisals with job descriptions can help to focus the appraisal process on the key competencies, behaviours and outcomes associated with a particular role or position. It can also be useful to consult with employees to: Ensure that key aspects of a role / position are represented in the job description, for example: Conduct assessments

Plan interventions Manage cases Liaise with and refer to other providers Keep up-to-date service records and case notes Write reports Develop a clear understanding of the relative importance of various competencies,

Behaviours and outcomes Identify how these key competencies.

Employees are more likely to accept and be satisfied with the appraisal system if they participate in the development of appraisal criteria and measures, and in the process of conducting appraisals.

Strategies for facilitating employs participation include: Engagement in formal meetings or informal discussions with supervisors to seek input and / or feedback on appraisal measures and criteria Representation on groups / committees involved in the design and implementation of performance appraisals Inclusion of self appraisals in the appraisal process Providing opportunities for employees to contribute to the performance appraisal of co-workers and managers / supervisors.

It is also important that employees perceive the appraisal system to be equitable and fair. Step 2: Develop Appraisal Measures

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Once clear and specific performance criteria have been developed, the next step is to decide how to assess employees performance. It is recommended that a structured and systematic approach is taken to assessing performance. Problems that arise when an unstructured blank sheet approach is used include: Increased chance of appraiser errors (i.e., reduced accuracy) Knowledge, skills and abilities most critical to job performance may be overlooked (i.e., feedback may have limited impact on performance effectiveness) Reduced consistency between appraisers (i.e., evaluations may reflect differences between appraisers rather than actual differences in a employees performance) Perceptions of subjectivity in evaluations, which may in turn, reduce employees satisfaction with, and acceptance of appraisals.

There are three important considerations in the design of appraisal measures: 1. Generic versus individually tailored measures 2. Objective versus subjective assessments 3. Assessing the impact of the work environment on performance.

Generic versus individually tailored measures: Many workplaces use a generic rating form for all employees irrespective of their role or position within the organization. Although this approach can save time and minimize cost, the accuracy and relevance of appraisals may be significantly diminished. The one size fits all approach of generic measures may overlook important performance criteria that are relevant to particular jobs, and may also include criteria that are irrelevant to others. Where time and other resources permit, it is more appropriate to construct appraisal formats tailored to specific jobs or families of jobs. If the development of job-specific (i.e., individually tailored) appraisal formats is beyond the resource capacity of the organization, an alternative would be to develop two groups of criteria:

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1) Core competencies that have applicability to the performance appraisal of all employees 1. within the organization 2) Additional competencies applicable only to some jobs and included in the performance 2. Appraisal if relevant.

Objective versus subjective assessments: A basic distinction between different types of appraisal measures concerns the use of objective or subjective criteria. Objective assessments of work performance Objective measures of job performance involve counts of various work-related behaviours. Some common objective job performance measures include a. Absenteeism (number of days absent) b. Accidents (number of accidents) c. Incidents at work (number of incidents / assaults / altercations) d. Lateness (days late) e. Meeting deadlines. Objective measures can be relatively quick and easy to obtain (given good organizational record-keeping). However, it can be unwise to place too much emphasis on these types of objective measures. An exclusive focus on results / outcomes may mask factors that impact on employees performance that are beyond their control (e.g., client workload).

SUBJECTIVE ASSESSMENTS OF WORK PERFORMANCE

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Subjective measures rely on the judgment of an appraiser (self, co-workers, or supervisor). Subjective assessments are commonly used in performance appraisals and often involve the use of rating scales. Subjective assessments are more likely to provide accurate performance appraisals when: The behaviours and outcomes being assessed are stated in clear behavioural terms The employee understands the measures (e.g., rating scales) being used to evaluate their Performance, and agree that the measures are fair and accurate (i.e., measures what it is supposed to) Measurement is as brief as possible whilst addressing essential behaviours and outcomes (frustration with long and unwieldy questionnaires may introduce error in responses).

Assessing the impact of the work environment on performance: The goal of a performance appraisal is to support and improve employees performance and effectiveness. Therefore, it makes sense for an appraisal to include an assessment of factors in the work environment that help or hinder a employees capacity to perform effectively. Explicit assessment of environmental factors is also likely to increase the perceived fairness and acceptability of performance appraisals. For example, an employees capacity to provide effective treatment interventions is influenced by factors such as: Access to private, soundproofed, adequately sized rooms for counselling Availability of validated, user-friendly assessment tools Availability of reliable and approachable management / administration.

Step 3: Collect Performance Information from Different Sources

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Once the appraisal measures are developed, the next step involves collection of accurate performance information. A common trap is to begin noting observations of employees just before conducting appraisals. This is likely to give an inaccurate picture of a employees performance. Ideally, employees performance should be observed in a systematic way over time (e.g., in a diary). This method ensures the accuracy of information about their performances. Many employees in the organization operate with a relatively high degree of autonomy. This combined with the heavy workload of most managers / supervisors may limit opportunities to conduct regular observation of employees performance. In addition, perceptions of ongoing monitoring may foster a sense of surveillance which can damage staff morale. A more suitable approach may be to keep critical incident reports that note specific examples of both excellent and unsatisfactory performances. Supervisors can also encourage employees to keep track of their own performance records such as emails or letters that commend them on their achievements. Traditionally, it has been the sole responsibility of managers / supervisors to assess performance. However, other organizational members can be a valuable source of information as they are likely to have exposure to different aspects of a employees performance. This approach is known as 360-degree feedback. For instance, co-workers can provide valuable information on teamwork skills, and subordinates can provide useful information on leadership style. There are many advantages to obtaining feedback on performance from sources other than supervisors or managers. Key benefits include: Accuracy and reduced bias (incorrect information from one source can be corrected from another) Increased likelihood that employees will perceive the performance appraisal system to be a fair and accurate reflection of their performance (compared to relying on supervisor ratings alone). If time and resources are limited, it is recommended that supervisor appraisals be conducted in conjunction with self-assessment. Including self-assessments as part of the appraisal process is likely to enhance employees commitment to, and satisfaction with,

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the appraisal process. It also provides employees with an opportunity to identify barriers and facilitators to effective performance in their work environment. Five different sources of performance appraisal information are considered here: a. Manager / supervisor appraisals b. Self appraisals c. Co-worker appraisals d. Subordinate appraisals e. Client appraisals.

Manager / supervisor appraisals: Managers / supervisors play a central role in the appraisal process, and should always be included as one of the main appraisers. In essence, managers and supervisors have two roles in performance appraisal: 1. 2. Judge: assessing performance Coach: providing constructive feedback and identifying areas for improvement. Performing both roles simultaneously can be difficult. Employees may be reluctant to admit areas for improvement if performance assessment is linked with desired outcomes such as pay, promotion or opportunities to work in desired areas. One solution is to separate the judge and coach roles by conducting separate appraisal meetings. Self-appraisals: The process of evaluating ones own performance can help to increase employees commitment to the appraisal process, perceptions of appraisal fairness, and satisfaction with the appraisal process. Self-appraisal can also be useful for identifying areas for

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development. Not surprisingly, self-appraisals are usually biased towards leniency. Strategies to increase the accuracy of self appraisals include: Using clear definitions of performance criteria linked to specific, observable behaviours Informing employees that their ratings will be checked and compared to other sources of appraisal (i.e., for accuracy) Ensuring employees receive regular feedback on their performance. It is recommended that self appraisals are used for professional development purposes, rather than for making administrative decisions (i.e., pay increases, promotion). Co-worker appraisals: Co-workers can provide valuable feedback on performance, particularly where teamwork occurs. Co-workers are often aware of different aspects of an employees performance that managers /supervisors may not have the opportunity to observe. In addition, as there is usually more than one co-worker who rates a workers performance, evaluations tend to be more reliable. Co-worker evaluations, however, may be biased towards those individuals most well liked in an organization (i.e., friendship bias). Furthermore, coworker appraisals may have a negative impact on teamwork and cooperation if employees are competing with one another for organizational incentives and rewards. It is recommended that co-worker appraisals are used for professional development rather than administrative decisions. Subordinate appraisals: Subordinates are a valuable source of information regarding particular aspects of a supervisor or leaders performance such as communication, team building or delegation. Subordinates can provide feedback to help managers / supervisors develop their skills in these areas. The focus should be on aspects of managerial performance that subordinates are able to comment upon. This source of appraisal may only be appropriate in larger organizations where there are sufficient subordinates to allow anonymity. Client appraisals:

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Clients may also offer a different perspective on a employees performance, particularly for jobs that require a high degree of interaction with people. For example, client appraisals can be a valuable source of feedback regarding the quality of service provision (e.g., the quality of interaction, degree of empathy, level of support, degree of professionalism). Organizations often have performance contracts that specify goals and deliverables for client outcomes. Whilst it is important that organizational goals and deliverables are reflected in the appraisal criteria for individuals and teams, it is recommended that particular care be taken if incorporating client outcomes. Relying on client outcomes as an indicator of performance can have undesirable effects due to the complex and sensitive nature of work. A range of factors may influence client outcomes, many of which are outside the control of an individual employee. It is rare for a successful (or otherwise) outcome to be the sole result of one persons efforts. This makes client outcomes a poor reflection of the quality of treatment provided by the employee. For example, good employee performance will not always bring about client improvements, and client relapses may not be due to poor employee performance. In addition to considering client outcomes, it may also be beneficial to focus on employees skills and abilities in providing services per se (i.e., independent of client outcomes).

Strategies to support appraisers and enhance appraisal accuracy

Rating another persons performance is not an easy task, particularly with complex jobs or performance criteria. Strategies to support appraisers and increase the likelihood of accurate assessments include: Providing practical training in rating techniques, which includes opportunities to practice appraising performance and providing feedback. Limiting the assessment to performance criteria that an appraiser has observed / experienced in regard to the employee.

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 Providing structured assessment tools with clear explanations regarding the criteria to be assessed, and performance standards.

Step 4: Conduct an Appraisal Interview The next step in a performance appraisal is to conduct the appraisal interview. The two central purposes of the appraisal interview are to: Reflect on past performance to identify major achievements, areas that require further development, and barriers / facilitators to effective performance. Identify goals and strategies for future work practice. As discussed below, supervisors and managers can use a range of strategies to ensure that the appraisal interview is positive, constructive and of greatest benefit for employees effectiveness.

BEFORE THE INTERVIEW

Help employees to become familiar and comfortable with talking about their performance by engaging in regular, informal communication on work progress, potential obstacles and issues, possible solutions and assistance. Encourage employees to prepare employees should be encouraged to review their own Performance before the interview. Do your own preparation plan ahead. Draft a list of the issues that you want to address with the employee (i.e., strengths and weaknesses of performance, strategies to improve performance). Give specific examples of the employees performances that you want to highlight. During the interview.

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 Encourage employee participation start by inviting the employee to share their views about their performance. Begin with positive feedback to put the employee at ease. Make it a two-way discussion. Set goals mutually ensure employees participate in determining specific, challenging but attainable goals for future work performance. Ensure that there is a clear agreement on performance objectives and the evaluation criteria for the next year. Keep written records of the appraisal interview on which Both parties have signed off.

AFTER THE INTERVIEW

Coach employees regularly provide frequent feedback to help employees improve their performance Assess progress towards goals frequently periodic reviewing of progress towards goals helps keep behaviour on track and enhances commitment to effective performance. Relate rewards to performance by linking appraisal results to employment decisions such as promotions and salaries, employees are more likely to prepare for, participate in, and be satisfied with the appraisal system.

Step 5: Evaluate the Appraisal Process As with any organizational system, the performance appraisal process should undergo regular review and improvement. For example, the process of performance appraisal could be evaluated by conducting focus groups or surveys with employees to gauge their satisfaction with the appraisal process (and suggestions for improvements). It may also be useful to monitor the types of issues raised by supervisors and employees over time. A successful performance appraisal process should demonstrate a change in both the ratings of employees performance (i.e., ideally performance ratings should improve, or

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at least remain at a satisfactorily stable level over time) and the work environment (i.e., evidence that significant barriers to work practice are being addressed by the organization).

DESIGNING THE PERFORMANCE MANAGEMENT SYSTEM

Numerous have been devised to measure the quantity & quality of employees job performance. Each of the methods discussed could be effective for some purposes, for some organizations. None should be dismissed or accepted as appropriate except as they relate to the particular needs of the organization or of a particular type of employees. Broadly, all the approaches to appraisal can be classified into:

PAST-ORIENTED METHODS
Rating Scales: This is the simplest & most popular technique for appraising employee performance. The typical rating scale system consists of several numerical scales, each representing a jobrelated performance criterion such as dependability, initiative, output, attendance, attitude, co-operation, and the like. Each scale ranges from excellent to poor. The rather checks the appropriate performance level on each criterion, and then computes the employees total numerical score. Under this method, a checklist of the statement on the traits of the employee & his or her job is prepared in two columns.

Forced Choice Method: In this, the rather is given a series of statements about an employee. These statements are arranged in blocks of two or more, & the rather indicates which statement most or least descriptive of the employee.

Forced Distribution Method: The approach focuses on certain critical behaviours of an employee that make all difference between effective & non-effective performance of a job. The superiors as & when they occur record such incidents. The advantage of this method is that the evaluation is based on actual job behavior

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Critical Incidents Method: The approach focuses on certain critical behaviours of an employee that make all difference between effective & non-effective performance of a job. The superiors as & when they occur record such incidents. The advantage of this method is that the evaluation is based on actual job behavior.

Behaviourally Anchored Rating Scales: Behaviourally anchored scales, sometimes called behavioural expectation scales, are rating scales whose scale points are determined by statements of effective & ineffective behaviours.

Field Review Method: This is an appraisal by someone outside the assessors own department, usually someone from the corporate office or the HR department. The outsider reviews employee records & holds interviews with the rate & his or her superior. The method is primarily used for making promotional decision at the managerial level field reviews are also useful when comparable information is needed from employees in different units or locations. Performance Tests & Observations: With a limited number of jobs, employee assessment may be based upon test knowledge or skills. The test may be of the paper-and-pencil variety or an actual demonstration of skills. The test may be reliable & validated to be useful. Essay Method: In the essay method, the rather must describe the employee within a number of categories such as: a. The ratters overall impression of the employee's performance, b. The promo ability of the employee c. The jobs that the employee is now able or qualified to perform d. The strengths & weaknesses of the employee e. The training & the development assistance required by the employee. 21

Cost Accounting Method: A relationship is established between the cost included i keeping the employee & the n benefit of the organization derives from him or her. Performance of the employee is then evaluated based on the established relationship between the cost & the benefit .

FUTURE ORIENTED PERFORMANCE MANAGEMENT SYSTEMS

It is not enough if only the past performance is assessed. How an employee can perform in the days to come is equally important. This can be assessed by focusing on employee potential or setting future performance goals. The commonly used future oriented techniques are MBO, psychological appraisals, assessment centers and the 360-degrec appraisals.

Management by Objectives (MBO): The M BO concept, as was conceived by Peter Ducker, reflects a management philosophy, which values and utilizes employee contributions. Application of MHO in the field of performance appraisal is a recent thinking. The following arc the four steps in which MBO works: i) ii) The first step is to establish the goals each subordinate is to attain. The second step involves setting the performance standard for the subordinates in a previously arranged time period. iii) In the third step, the actual level of goal attainment is compared with the goals agreed upon.

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iv)

The final step involves establishing new goals and possibly new strategies for goals not previously attained.

The process is then repeated. MBO is criticized on the following grounds: i) ii) It is not applicable to all jobs in all organizations. It is most useful with managerial personnel and employees who have a fairly wide range of flexibility and self control in their jobs. iii) Employees may be less likely to establish challenging goals.

Psychological Appraisals: When psychologists are used for' evaluations, they assess an individual's future potential and not the past performance. The appraisal normally consists of in-depth interviews, psychological tests, discussions with supervisors and a review of other evaluations. The psychologist then writes an evaluation of the employee's intellectual, emotional, motivational and other related characteristics that suggest individual potential and may predict future performance. The evaluation by the psychologist may be for a specific job opening for which the person is being considered, or it may be a global assessment of his / her future potential. This method has the following problems associated with its application: i) ii) It is slow and costly. Employees may object.

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Assessment centers: An assessment centre is a central location where mangers may come together to have their participation in job related exercises evaluated by trained observers. The principal idea is to evaluate managers over a period of time by observing their behavior across a series of select exercises or work samples. The characteristics assessed in a typical assessment centre includes assertiveness, persuasive ability, communicating ability, planning and organizational ability, self confidence, resistance to stress, energy level, decision making, sensitivity to the feelings of others, administrative ability, Creativity and mental alertness. A well conducted assessment centre can and does achieve better forecasts of future performance and progress than other methods of appraisal. Also, reliability, content validity, and predictive validity are said to be high in the assessment centers. The problem with assessment centers is that they are not cost effective in nature and are thus, suitable mainly for the large organizations.

360-Degree feedback: "The systematic collection and feedback of performance data on an individual or group, derived from a number of the stakeholders in their performance;"

To Explain
The data collection is systematic, i.e. done in some systematic way via questionnaires or inter-views. This formalizes people judgments coming from the natural interactions they have with each other. There is both a collection and a feedback process data is gathered and then fed back to the individual participant in a clear way designed to promote understanding, acceptance and ultimately changed behavior. The performance of either individual or group can be measured. The process has recently been applied to groups or

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teams but can be an effective way of measuring interactions with in a team or team outputs and quality as perceived by the customer. The source of data is called the stakeholders in the participant's performance. Stakeholders are people who are both affected by the individuals or group's performance and deal with them closely enough to be able to answer the specific questions about the way they interact with the stakeholders.

A FINAL OBSERVATION
The word 'performances twice in the definition. However, we should be quite clear on the fact that it refers to the quality of a person's interactive processes or their behavior, rather than the results they produce. The 360 - degree appraisal, a relatively new model for reviewing employees' performance, incorporates appraisals from supervisors, co-workers, subordinates and even external customers. 360-degree performance appraisal strengthens the relationship between employee and employer. The advantage of 360-degree systems over traditional systems is that they accumulate more information about employees' performance and development areas; this information is used to give the most beneficial feedback possible. Increased feedback and multi-source feedback results in a change in management behavior and in an increase in performance. Theoretically, anonymous feedback is more open and honest then one - on -- one feedback. The assumption is that honest feedback changes management behavior faster than restricted feedback. It is also assumed that employees (and customers) that are listened to and involved will produce more and have higher satisfaction and retention. A basic assumption is that employees have knowledge of management behaviours that can be provided to management. A further assumption is that the "anonymity" provided in 360 process is credible and results in honest feedback. The 360-degree technique is an appraisal technique that provides a broader perspective about an employee's performance. In addition, the technique facilitates greater selfdevelopment of the employees. For one's development, multi-source feedback is highly useful. It enables an employee to compare his/her perceptions about self with perception of others.

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It is a systematic collection of performance data on an individual or group; derived from a number of stakeholders - superiors, team members, customers, peers and self. By design, the 360-degree appraisal is effective in identifying and measuring interpersonal skills, customer satisfaction, and team building skills. This method has recently gained a lot of importance and is used in combination with other methods of appraisal for achieving the desired outcome of performance appraisal.

THE APPRAISAL INTERVIEW

Whatever method of appraisal used by an organization, it is crucial to allow for 'employee feedback'. An interview between the manager and the employee is the main way of achieving this. The interview provides the opportunity, to discuss an employees performance and explore areas of possible improvements and growth. It also provides an opportunity to identify attitudes and feelings more thoroughly and thus improve communication. Fundamental to the success of the appraisal interview is the relationship between the two participants in the process. The interview may have any of the following purposes: Record / summary of performance Feedback from employee Feedback from manager Career development Suitability for promotion/ transfer counselling Motivation Foster the working relationship

The format of the interview will be determined in large by:

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 The purpose of interview Type of appraisal method used Organization of the interview form (formal record) The interview is perhaps the most important part of the entire appraisal program. Unfortunately, interviewers can become overburdened by attempting to discuss too much. The interviewer should observe the following points: Initially, emphasize strengths on which employee can build rather than weakness to overcome. Avoid suggestions about personal traits to change instead suggest more acceptable ways of performing. Concentrate on opportunities for growth that exist within the framework of the employees' present position. Limit plans for growth to a few important items that can be accomplished within a reasonable period of time.

TYPES OF APPRAISAL INTERVIEW

Managers should never assume that only one type of appraisal interview is appropriate for every review session. Rather, they should he able to use one or more of the interview types depending on the topic being discussed or the behavior being appraised. Feedback is necessary to effect improvement in performance, especially when it is inadequate. Specifically, performance interview has three goals: To change behavior of employees whose performance docs not meet organizational requirements or their own personal goals,

27

To maintain the behavior of employees who perform III an acceptable manner. To recognize superior performance behaviours so that the}' will be continued.

Three distinct types of interview are commonly used Tell and sell Tell and listen Problem solving and mixed.

1. Tell and sell It is also called as directive interview; the interviewer lets assesses know how well they arc doing and sells them on merits of setting specific goals for improvement, if needed. Has little provision for employee participation Generally consists of three stages Manager lets employee know how the latter is doing. The employee's acceptance of this evaluation is sought. The employee agrees to follow a pre-determined plan for improved job performance. This method does not require much of anyone's time but is of little use if the improved behavior does not eventuate. There is no opportunity for employee participation and over time, it is likely that employees will only perform to conform to their manager's wishes. The role of the supervisor / manager is one of 'judge' and 'jury'.

2.

Tell and listen

28

Tell and listen interview provides the subordinates with chances to participate and establish a dialogue with their superiors. Its purpose is to communicate the ratters perceptions.

It is the most commonly used interview technique. As with "Tell and Sell", the manager lets the employee know how he or she is doing.

Communicate strong and weak points of an employee's job performance. The employee has a chance to respond to the assessment and present his/ her views.

Employees feelings of the appraisal are thoroughly explored. BOTH views arc then considered together, a conclusion reached and a plan for" future performance is developed.

This is much more flexible approach, however, the type of reaction provoked may strongly affect the success of the interview

For example, if the manager's remarks arc perceived as unfair. (Or critical) by the employee, defence mechanism and face saving, rather than constructive responses might still be the outcome.

The "Tell and Listen" method assumes that the opportunity to release frustrated feelings will help reduce or remove th em.

3. Problem solving and mixed

In the problem solving or participative interview, an active and open dialogue is established between the superior and the subordinate. Not only are perceptions shared, but also solutions to problems arc presented, discussed, and sought. Mixed interview is a combination of tell and sell and problem solving interviews.

Differs markedly from the methods above. 29

Although recommended by some, since the objective of appraisal to stimulate growth and development in the employee.

is normally

It is used more widely in 'counselling' and is an unstructured approach. The skills an' consistent with the non-directive procedures of the "Tell and Listen" method in that listening, accepting and responding to feelings arc essential.

However, it goes beyond an interest in the employee's feelings. It seeks to stimulate growth and development in the employee by discussing problems, needs innovations, satisfactions and dissatisfactions encountered since the last appraisal.

A work - related situation IS presented and both the manager and the employee discuss a solution.

The manager assumes the role of a 'Helper' or 'Facilitator' rather than a judge and emphasis is on the work situation, not the business of the individual.

Can lead to a wide range of changes in work practices, patterns of supervision and individual attitudes.

Managers need to have the following characteristics Be well prepared Show trust Be active listeners Discuss frankly any areas where performance IS not up to standard, backing this with specific examples. Conversely good performance should be praised, again using specific examples.

Whatever are the approaches followed, the emphasis in the interview should be on counselling and development and not on criticism, witch- hunting and buck passing. Because of the significance of appraisal interview, every effort must be made to make it effective. Guidelines given will help make the interview successful.

30

Guidelines for Effective Appraisal Interview Select a good time Minimize interruptions Welcome, set at ease Start with something positive Ask open-ended questions to encourage discussion Listen Manage eye contact and body language Be specific Rate behavior, not personally

PITFALLS OF PERFORMANCE MANAGEMENT PROGRAMS

Obstacles to the success of formal Performance Management programs should be familiar to most managers, either from painful personal experience or from the growing body of critical literature. Here are the most troublesome and frequently cited drawbacks. Performance Management programs demand too much from supervisors.

Formal performance appraisal obviously requires at least periodic supervisor observation of subordinates' performance. However, the typical first - line supervisor can hardly know, in a way, just what each of 20, 30, or more subordinates are doing.

Standards and ratings tend to vary widely and often, unfairly. Some rates

are

tough, while some are lenient. Some departments have highly competent people; others have less competent people. Consequently, employees subject to less competition or lenient ratings can receive higher appraisals than equally competent or superior associates.

31

Personal values and bias can replace organizational standards. An appraiser may not lack standards, but the standards he uses are sometimes wrong ones. For example: - unfairly low ratings may be given to valued subordinates so they will not be promoted out of the ratters department. More often, however, outright bias dictates favoured treatment for some employees.

Because of lack of communication, employees may not know how they are rated. The standards by which employees think they are being judged are sometimes different from those their supervisors actually use. No performance appraisal system can be very effective for management decisions, organization development, or any other purpose until the people being appraised know what is expected of them and by what criteria they are being judged.

Management techniques tend to be used as performance panaceas. If a worker lacks the ability or has not been given the necessary training for his job, it is neither reasonable to try to stimulate adequate performance through performance management, nor fair to base salary, dismissal, or other negative decisions on such an appraisal.

In many cases, the validity of ratings is reduced by supervisory resistance to making the ratings. Rather than confront their less effective subordinates with negative ratings, negative feedback in appraisal interviews, and below average salary increases, supervisors often take the more comfortable way out and give average or above average ratings to inferior performers.

Performance Management ratings can boomerang when communicated to employees. Negative feedback (i.e. criticism) not only fails to motivate the typical employee, but also can cause him to perform worse. Only those employees who have a high degree of self-esteem appear to be stimulated by criticism to improve their performance.

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COMPANY PROFILE

Chairman and Managing Director Rahul Bajaj

33

President and Whole-time Director Rajiv Bajaj (Vice Chairman and Whole-time Directors) D. S. Mulla Kantikumar R. Podar Shekhar Bajaj (Whole-time Directors) D.J. Balaji Rao J.N. Godrej
S.H. Khan

Atul C. Kirloskar Madhur Bajaj D.S. Mehta

PERFORMANCES OF THE COMPANY

In the ungeared scooter segment, the industry has grown by 18 % from 2, 75,000 units during April to December 1999 to 3, 24,000 units during the current year. The Company has recorded a growth of 19 % in volumes and has increased its market share from 19.2 % to 19.4 %. The Company had introduced Safire, a 92 cc Automatic 4 - stroke scooter in select markets. The product has been well received and with the production volumes going up, the Safire will be progressively launched in all the states. In the geared scooter market, the industry has shown a fall from 7,20,000 numbers in April - December 1999 to 4,56,000 numbers in April - December 2000. The Company's market share stands at 71.8 % as against 73.1 % in the previous year. In order to expand this market the Company has introduced a range of low cost scooters in January 2000. Besides, a new premium 4 stroke scooter will be launched in February 2001 followed by the 4 stroke Chetek. In the step thru segment, the industry has recorded a fall of 11 % from 2,03,000 units during the period April to December 1999 to 1,80,000 units in the current nine months. The Company's market share has fallen from 61.3 % to 54.0 %. The Company has introduced the M 80 Major 4 S, a 74 cc, 4 stroke vehicle giving 87 km / litre, the initial response for which has been very encouraging.

34

In the Motorcycle segment, the Company has shown a significant growth of 89 % as compared to 31 % growth recorded by the industry. The market share has increased from 14.9 % during April - December 1999 to 21.4 % in the corresponding period of current year. In order to continue this trend, the Company will be launching Eliminator - a 175 cc 4 strokes "chopper" like bike in Pune on January 20, 2001. The Eliminator will be followed by "Acer" - a 100 cc highly fuel efficient executive bike in March 2001. A third bike called "Pulsar" - a 175 cc street sports bike will be introduced in April 2001. The Three wheeler market has grown by 2 % from 1, 55,000 units in April - December 1999 to 1, 59,000 units during the current year. The Company's sales have declined by 3 % and the market share stands at 77 % as compared to 82 % in the previous year. The CNG three wheeler has met with excellent response. With the introduction of the RE 4 stroke LPG three wheeler soon, the Company will provide the entire range of environment friendly three wheelers.

HISTORICAL INDUSTRY DEVELOPMENT

India is the second largest manufacturer and producer of two wheelers in the world. It stands next only to Japan and China in terms of the number of two-wheelers produced and domestic sales respectively. This distinction was achieved due to variety of reasons like restrictive policy followed by the Government of India towards the passenger car industry, rising demand for personal transport, inefficiency in the public transportation system etc. The Indian two-wheeler industry made a small beginning in the early 50s when Automobile Products of India (API) started manufacturing scooters in the country. Until 1958, API and Enfield were the sole producers. In 1948, Bajaj Auto began trading in imported Vespa Scooters and three-wheelers. Finally, in 1960, it set up a shop to manufacture them in technical collaboration with Piaggio of Italy. The agreement expired in 1971. In the initial stages, the scooter segment was dominated by API, it was later overtaken by Bajaj Auto. Although various government and private enterprises entered the fray for scooters, the only new player that has lasted till today is LML.

35

Under the regulated regime, foreign companies were not allowed to operate in India. It was a complete seller market with the waiting period for getting a scooter from Bajaj Auto being as high as 12 years. The Motorcycles segment was no different, with only three manufacturers viz Enfield, ideal Jawa and Escorts. While Enfield bullet was a four stroke bike, Jawa and the Rajdoot were two-stroke bikes. The motorcycle segment was initially dominated by Enfield 350cc bikes and Escorts 175cc bike. The two wheeler market was opened to foreign competition in the mid-80s. And the then market leaders- Escorts and Enfield were caught unaware by the onslaught of the 100cc bikes of the four Indo-Japanese joint ventures. With the availability of fuel efficient low power bikes, demand swelled, resulting in Hero Honda then the only producer of four stroke bikes (100cc category), gaining a top slot. The first Japanese motorcycles were introduced in the early eighties. TVS Suzuki and Hero Honda brought in the first two-stroke and four stroke engine motorcycles respectively. These two players initially started with assembly of CKD kits, and later on progressed to indigenous manufacturing. In the 90s the major growth for motorcycle segment was brought in by Japanese motorcycles, which grew at a rate of nearly 25% CAGR in the last five years. The Industry had a smooth ride in the 50s, 60s and 70s when the Government prohibited new entries and strictly controlled capacity expansion. The industry saw a sudden growth in the 80s. the industry witnessed a steady growth of 14% leading to a peak volume of 1.9mn vehicles in 1990. The entry of Kinetic Honda in mid-eighties with a variometric scooter helped in providing ease of use to the scooter owners. This helped in inducing youngsters and working women, towards buying scooters, who were earlier, inclined towards moped purchases. In the 90s, this trend was reversed with the introduction of scooterettes. In line with this, the scooter segment has consistently lost its part of the market share in the two-wheeler market. In 1990, the entire automobile industry saw a drastic fall in demand. This resulted in a decline of 15% in 1991 and 8% in 1992, resulting in a production loss of 0.4 mn vehicles. Barring Hero Honda, all the major producers suffered from recession in FY93 and FY94. Hero Honda showed a marginal decline in 1992.

36

The reasons for recession in the sector were the incessant rise in fuel prices, high input costs and reduced purchasing power due to significant rise in general price level and credit crunch in consumer financing. Factors like increased production in 1992, due to new entrants coupled with the recession in the industry resulted in companies either reporting looses or a fall in profits. India is one of the very few countries manufacturing three- wheelers in the world. It is the worlds largest manufacturer and seller of three-wheelers. Bajaj Auto commands a monopoly in the domestic market with a market share of above 80%, the rest is shared by Bajaj Tempo, Greaves Ltd and Scooters India. The total number of registered two wheelers and three-wheelers on road in India, as on March 31, 1998 was 27.9mn and 1.7mn respectively. The two wheeler population has almost doubled in 1996 from a base of .6mn in 1990.

TWO- WHEELERS MARKET SHARE

The auto two-wheeler segment has been witnessing a mixed trend in year 2001-02. During the first seven months, the scooter volumes dipped and there was a sudden spurt in the motorcycle sales. However there was some deviation from this trend during October 2001 when the scooter sales stated picking up due to launch of new variants by Bajaj Auto Ltd., But on the whole the motorcycle market continued to prop up domestic 2- Wheelers sales whereas scooters and moped sales maintained their downward trend in fiscal 2002. The sales of motorcycle segment remained buoyant in Dec 2001 and the major three players have reported an average growth of 55% in their sales volumes. Bajaj Auto Ltd. Has been the outperformed in the motorcycle segment followed by Hero Honda Motors Ltd. And TVS Motor Company Ltd. (formed after the break-off with Suzuki Motor Corporation, Japan) With the whopping 85% growth in the motorcycle sales Bajaj Auto Ltd. Is the second biggest manufacturer of motorcycles? The companys recent indigenous launch in 4-stroke segment viz.; the 150/180 cc Pulsar has been the major contributor to motorcycle sales alongwith its other popular models such as Boxer, Caliber Croma etc. the company is also refocusing on scooter sales and has launched the 150cc Legend NXT2 and 4-stroke version of Chetek recently. BAL aims to reach a target of 0.6 million units by the end of fiscal 2001-02. 37

Hero Honda has posted a negative sales growth of 8.75% from last month November 2001 which is attributed to lower registrations for new purchases by the customers in the last month of the year 2001-02.

RESEARCH METHODOLOGY
Research in common parlance refers to a search for knowledge. The purpose of research is to discover answers to questions though the application of scientific procedures. In short research is art of scientific investigation. Research methodology refers to the tools and methods used for obtaining information for the purpose of the subject under study. The methodology followed for the purpose of finding customers response was Random sample survey.

DATA SOURCES
The data was collected from primary as well as secondary sources. The primary data was collected through interviews with the managers and trainee sales officer. Secondary data was collected from articles in various magazines and newspapers and web sites.

RESEARCH APPROACH
The approach adopted was a survey with the customers visiting the show room. Companys servicing centre of Delhi and interview session with management of the company. RESEARCH INSTRUMENT The research instrument used was a questionnaire.

SAMPLING PLAN Sampling Unit:

38

1. It constituted of people in the age group of 20 and above. 2. Income group of 5,000 and above per month. Sampling Procedure: The sampling procedure adopted was convenience sampling because of the wide scope of the project.

RESULTS
Company: Companies data shows that the company produces approximately 1,11,000 vehicles per month. Out of which they sales 60,000 motor cycles per month. The company has more demand of its product in western region. The company has 21 regional offices throughout India out of which 10 contains training centres. The main objective of these offices is to pay emphasis to human resource development and provide good services to its customers. Customer: The results from customer survey are as follows: 1. Customers prefer because of their fuel efficiency. 2. Customers prefer because of their performance. 3. Customers prefer because they are value added product. 4. Customers also prefer because they are stylish.

SEGMENTATION
DEMOGRAPHIC SEGMENTATION Income: Our customer survey indicates that the segments available for the Bajaj motor bike are the people with monthly income of Rs. 10,000 and above.

39

Age: The main segmented group for the motorcycle are 18 years and above. Occupation: All kinds of people are taken into account. Students, professionals, Govt. Servants, etc. Geographic Segmentation: The potential customers for the Bajaj motorcycle are basically from every regions of India. Psychographic segmentation: People purchasing Bajajs bikes are very stylish, brand conscious. Behavioural segmentation: This segmentation is done considering user status, benefit wise.

TARGETING
The proposed targeting people in the age group of 18 years and above with a monthly income of Rs. 10,000 and above, who are adventurous, enthusiasts and socializing and who are either students or retired individuals or may be employed as professionals, government servants or having their own business, but mostly male.

POSITIONING
The image that Bajaj creates in the mind of the customers is the faith. The add shown by it says HAMARA BAJAJ. That means its a member of the Indian family. It represents the Indian culture and society.

PRODUCT
The product offers a service to the customers so as to satisfy their need. The product provided the Bajaj suites the Indian Roads. And the Indian Consumers have a perception that the Bajaj provides genuine products. The product is perfectly designed and the entire switch are well placed, which provides a good riding condition. The details of the various bikes provided by the Bajaj are as follows: 1. Eliminator 40

2. Pulsar- 180 3. Pulsar-150 4. Caliber Croma 5. Caliber 6. Boxer

PULSAR -150
Pulsar Value Specification Engine Type Cooling Type Displacement No. of Cylinders MaxPower Max Power RPM Max Torque Max Torque RPM Ignition Type Carburettor 4 stroke Air Cooled 143.90cc 1 12bhp 8500rpm 10.8Nm 7500rpm C.D.I Ucal-Mikuni(DH)

41

Transmission 5 Gears - All down Type Clutch Type Electrical System Head Light Horn Chassis Type Front Suspension Rear Suspension Front Tyre Size Rear Tyre Size Front Brakes Rear Brakes Fuel Tank Capacity Reserve Capacity Wheel Base Saddle Height Kerb Weight Maximum Payload Max Speed Lever operated(Left Hand) 12V 35/35 W Clear Lens Type 12 V DC Tubular Double Craddle Telescopic Trailing arm with coaxial hydraulic shock absorbers & coil springs 5 Step adjustable 2.75 x 18 42P 3.00 X 18 4/6 PR Drum Brake 130mm or Hydraulic Disc Brake Drum Brake 130mm 18 litres 3 litres 1265mm 780mm 132kg 263kg 100kmph

42

PULSAR 180

Specification Engine Type Cooling Type Displacement No. of Cylinders MaxPower Max Power RPM Max Torque Max Torque RPM Ignition Type Carburettor Transmission Type Clutch Type Electrical System Head Light Horn Chassis Type Front Suspension Rear Suspension Front Tyre Size Rear Tyre Size Front Brakes Rear Brakes Fuel Tank

Value 4 stroke Air Cooled 178.60cc 1 15bhp 8000rpm 13.2Nm 6500rpm C.D.I Mikuni(DJ) 5 Gears- One down four up Lever operated(Left Hand) 12V 35/35 W Clear Lens Type 12 V DC 2 nos. Tubular Double Cradle Telescopic Trailing arm with coaxial hydraulic shock absorbers & coil springs 5 Step adjustable 2.75 x 18 42P 100/90 18 56P Hydraulic Disc Brake Drum Brake - 130mm 18 litres

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Capacity Reserve Capacity Wheel Base Saddle Height Kerb Weight Maximum Payload Max Speed

3 litres 1265mm 780mm 137kg 268kg 107kmph

44

ELIMINATOR

Specification Engine Type Cooling Type Displacement No. of Cylinders Compression Ratio MaxPower Max Power RPM Max Torque Max Torque RPM Ignition Type Carburettor Transmission Type Clutch Type Electrical System Head Light Horn Chassis Type Front Suspension Rear Suspension Front Tyre Size Rear Tyre Size Front Brakes Rear Brakes Fuel Tank Capacity Reserve Capacity Wheel Base Ground Clearance Saddle Height Minimum Turning

Value 4 stroke Air Cooled 173.9cc 1 15.2bhp 8500rpm 13.7Nm 7500rpm CDI Electronic Mikuni BSR30 5 Speed Wet multi-plate 12V AC/DC 60/55W 12V Double cradle Telescopic Trailing arm with coaxial hydraulic shock absorbers and coil springs 90/90-17 130/90-15 Disc Drum 14 litres 2.5 litres 1460mm 165mm 680mm 2.5m

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Radius Kerb Weight Maximum Payload Fuel Efficiency (Ideal) Fuel Efficiency (Highway) Fuel Efficiency (City) Max Speed Acceleration Braking Distance

157kg 130kg kmpl kmpl kmpl 116kmph

CALIBER CROMA

Specification Engine Type Cooling Type Displacement No. of Cylinders MaxPower Max Power RPM Max Torque Max Torque RPM Ignition Type Carburettor Transmission Type Clutch Type Electrical System Head Light Horn Chassis Type Front Suspension Rear Suspension Front Tyre Size

Value 4 stroke Air Cooled 111.6cc 1 7.7bhp 7000rpm 0.83Nm 6000rpm C.D.I. Keihin PC 18 or Ucal-Mikuni VM18SH 4 Speed Gear Box Lever operated 12V AC/DC 35/35 12V DC Tubular Semi Double cradle Long Telescopic 5-step adjustable 2.75 x 18 Zapper

46

Rear Tyre Size Front Brakes Rear Brakes Fuel Tank Capacity Reserve Capacity Wheel Base Saddle Height Kerb Weight Maximum Payload Fuel Efficiency (City) Max Speed

3.00 x 18 Zapper 240 mm ventilated disc brakes 130 mm brake drum 14 litres 3 litres 1245mm 780mm 120kg 246kg 65kmpl 95 km/hr with single rider (68kg)kmph

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CALIBER

Specification

Value

Engine Type Cooling type Displacement No. of Cylinders MaxPower Max Power RPM Max Torque Max Torque RPM Ignition Type Carburettor Transmission Type Clutch Type Electrical System Head Light Horn Chassis Type Front Suspension Rear Suspension Front Tyre Size Rear Tyre Size Front Brakes Rear Brakes Fuel Tank Capacity Reserve Capacity Wheel Base Ground Clearance Saddle Height Minimum Turning Radius Kerb Weight

4 stroke Air Cooled 111.6cc 1 7.6bhp 7000rpm 8.14Nm 6000rpm CDI Electronic Keihin PC 18 4 Speed gear box Wet multiplate 12V AC/DC 45/40 W 12V DC Single down tube cradle frame Hydraulically damped Telescopic (travel 110 mm) with rubber boots Swing arm hydraulic shock absorber with coaxial spring 5 step adjustable 2.75 X 18in 4P 3.00 X 18in 6P 110 mm Drum 110 mm Drum 14 litres 3 litres 1245mm 150mm 780mm 1.86m 118kg 48

Maximum Payload 249kg Fuel Efficiency (Ideal) 82kmpl Fuel Efficiency -kmpl (Highway) Fuel Efficiency (City) -kmpl Max Speed 100 with Single Rider (68 kg)kmph

KAWASAKI BOXER

Specification

Value

Engine Type Cooling Type Displacement No. of Cylinders Compression Ratio MaxPower Max Power RPM Max Torque Max Torque RPM Ignition Type Transmission Type Electrical System

4 stroke Air Cooled 99.35cc 1 9.3 7.7bhp 8000rpm 0.71Nm 6000rpm CDI 4-speed 12 V AC/DC 49

Head Light Horn Chassis Type Front Suspension Rear Suspension Front Tyre Size Rear Tyre Size Front Brakes Rear Brakes Fuel Tank Capacity Reserve Capacity Wheel Base Ground Clearance Saddle Height Minimum Turning Radius Kerb Weight Maximum Payload Fuel Efficiency (Ideal) Max Speed Prices

35 / 35 W 12V DC Tubular semi- double cradle Hydraulically damped Telescopic (travel 110 mm) Swing arm hydraulic shock absorber with coaxial spring 2.75 x 18 4PR 3.0 x 18 4PR/6PR Shoe Shoe 12 litres 2.8 litres 1215mm 150mm 780mm 1.86m 113kg 130kg 91kmpl 95kmph

Pricing is an important component of marketing mix of firm. Determining the prices of different products of a firm is a very difficult task of the marketing manager. Price denotes money value of a product. It represents the amount of money for which a product can be exchanged. In other words, prices represents the money which the buyer pays to the seller for a product price represents the exchange value of goods and services in terms of money. Price is all around. Price factor has very well been touched by the manufactures. The manufactures (Bajaj) are charging very comparatively cheaper prices then their competitors. The pricing strategy of the company is very set. They price their product according to the cost of production and also by keeping an eye on the price of the competitors of that segment & demand of the product in the market. The pricing stratigies adopted by Bajaj auto Ltd: Competitive Pricing The management of a firm decide to fix the price at the competitive level. This method is adopted by Bajaj auto because the bike market is highly competitive.

The price lists of the various Bajaj bikes are as follows:

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PRICE LIST FOR PULSAR 180

As On June 2007

City Pune

Ex Show Room Price (Rs.) 53879

On Road Price (Rs.) 58920

PRICE LIST FOR PULSAR 150

As On June 2007

Ex Show Room On Road Price City Pune Pune Electric Start Variation Price (Rs.) Base Model with Disc Brake Base Model with Disc Brake & 49046 53605 45647 (Rs.) 49910

PRICE LIST FOR ELIMINATOR

As On June 2007

City Pune

Ex Show Room Price (Rs.) 81685

On Road Price (Rs.) 89170

PRICE LIST FOR CALIBER CROMA

As On June 2007

Ex Show Room Price City Variation (Rs.) Base Model with Drum Pune Brakes 39924

On Road Price (Rs.) 43690

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Basic Model with Disk Pune Brakes 42201 46165

PRICE LIST FOR CALIBER

As On June 2007

City Ahmadabad Bangalore Chandigarh Chennai Kolkata New Delhi Pune

Ex Show Room Price (Rs.) 39927 41025 40090 38901 39790 39981 36889

On Road Price (Rs.) 42947 45310 41451 41791 42190 41761 40390

PRICE LIST FOR BOXER CT K-TEC

As On June 2007

City Pune

Ex Show Room Price (Rs.) 34327

On Road Price (Rs.) 37605

PROMOTION
Promotion is an important part of marketing mix of a business enterprises. It is spark plug of the marketing mix. Promotion is the process of communication with the potential customer involving information, persuasion and influence. It includes all types of personal or in personal communication with customers as well as middleman in distribution. The purpose of promotion is to inform, persuade and influence the prospective customers. Personal selling, advertising, publicity and sales promotion are widely used to inform the people about the availability of product and create among them the desire to buy the products.

52

The words of E.L. Brink and W.T. Kelly promotion is the coordination of all seller initiated affords to setup channels of information and persuasion to facilitated the sale of a product or service or accepted of an idea. The various promotional activities adopted by the Bajaj Auto Company. The company has 100crore rupees for its promotional activities out of which 75% is sponsored by the company and 25% from the dealers. They may sign a celebrity for its promotional activities in recent futures. The company provides six free services to its customers in comparison to its competitors. The company provides good services facilities to its customers through dealers service station. Dealers encourage its customers by giving discount, providing 0% interest loan schemes, prices, coupons etc. The various promotional activities adopted by bajaj bikes are as follows: Credit & finance schemes Free services to the consumers Advertisements on Televisions, Newspapers, Magazines Road Shows Free trials for the new consumers

Credit & Finance Schemes Provided By Bajaj: Bajaj provides schemes for New vehicles Used vehicles

Looking for a brand new Bajaj

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Bajaj Auto Finance Ltd offers the best deals on new Bajaj vehicles. Check out Bajaj schemes for Motorcycles and Step. They have a variety of schemes to suit your requirements. These include: Margin Money schemes Advance EMI schemes Low down-payment schemes Security deposit linked schemes 0% Interest schemes

Contact the Bajaj Auto Finance Ltd office in your city to know about the Special Schemes they announce from time to time.

CONTACT ADDRESSES
REGISTERED OFFICE Bajaj Auto Finance Ltd c/o Bajaj Auto Ltd Akurdi, Pune - 411 035 Tel : 020-7472851 Fax : 020-7407393 email: nvswaminathan@bajajauto.co.in NEW DELHI BRANCH BAJAJ AUTO FINANCE LIMITED C/o. Bajaj Auto Ltd., B-60/61, Naraina Industrial Area, Phase-II NEW DELHI-110028

LOAN FOR USED VEHICLES

Not ready to invest in a new two-wheeler? We offer finance options for used vehicles too. We can also assist you by showing you some used vehicles to choose from.

54

To take a look at these vehicles, contact the Bajaj Auto Finance Ltd office in your city.

FIXED DEPOSIT SCHEME

Looking for a trustworthy partner who guarantees a high degree of safety for your hardearned money? One who offers the best of dividends, facilities and services? Count on Bajaj! Bajaj Auto Finance Ltd. has formulated three fixed deposit schemes for Indian residents: Monthly Scheme Cumulative Scheme Non-Cumulative Scheme

Fixed Deposit Schemes (For Indian Residents Only) MONTHLY INCOME SCHEME Minimum Deposit Period ( Months ) Rs. 25000 * 12 Rs. 25000 * 36 * Additional amount in multiples of Rs. 1000/CUMULATIVE DEPOSIT SCHEME Minimum Deposit Period (Months) Maturity Value Rs. 5000 * 12 Rs. 5496 Rs. 5000 * 36 Rs. 6740 * Additional amount in multiples of Rs. 1000/Annual Yield 9.92 % 11.60 % Interest 9.50 % p.a. 10.00 % p.a.

NON - CUMULATIVE DEPOSIT SCHEME Minimum Deposit Rs. 5000 * Rs. 5000 * Period (Months) 12 36 Interest 9.50 % p.a. 10.00 % p.a. 55

* Additional amount in multiples of Rs. 1000/-

PLACE
There are about many regional offices located in major cities through out the country. There are more than 10,000 dealers through out the country. For the product distribution the company distributes its products through authorized dealers. The variety products are easily available in showrooms. Registered Office
Bajaj c/o Akurdi, Tel: Pune 020-7472851 Auto Bajaj Fax: Finance Auto 411 035 020-7407393 Ltd Ltd

email: nvswaminathan@bajajauto.co.in

NEW DELHI BRANCH BAJAJ AUTO FINANCE LIMITED C/o. Bajaj Auto Ltd., B-60/61, Naraina Industrial Area, Phase-II NEW DELHI-110028

SWOT ANALYSIS
Strength: It is a specialty good.

56

 It is a high involvement product. It is a durable goods. Well equipped and trained staff. Easy availability of spare parts in the market Weakness: Regional office should be located in mid of Delhi. No promotional activities by celebrities. Opportunity: Since it is the second leading competitor it has chance to grow. High growth rate of the industry. Encouragement of innovation theory. Threat: The main threat is from the leading competitor. Entry of Foreign motors bikes in the market. Threat of second hand motorcycles.

57

DATA ANALYSIS

QUESTION1: What physical features made you prefer BAJAJ bikes?

LOOKS BODY BUILD STYLE ROBUSTNESS ALL OF THEM

LOOKS BODY BUILT STYLE ROBUSTNESS ALL OF THEM

4 28 3 5 60

INTERPRETATION 58

The customers look for the over all looks or we can say that they all the physical features while deciding to purchase CALIBER. Also they look towards it as a sturdy body built bike.

QUESTION2: What media affected your preference the most?

WORD OF MOUTH TELEVISION PRINT MEDIA DEALERS EFFORTS

WORD OF MOUTH TELEVISION PRINT MEDIA DEALER EFFORTS

33 66 1 0

INTERPRETATION The customer preference is mostly affected by television advertisements.

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60

QUESTION 3: Did price affect your preference?

YES NO

YES NO

74 26

INTERPRETATION 74% of customers says that price affect their preference

61

QUESTION 4: What mode of payment did you prefer?

CASH FINANCE

CASH FINANCE

49 51

INTERPRETATION 51% of customer prefers financing and 49% prefer cash payment.

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CONCLUSION
Performance Appraisal is becoming the most suitable way to assess the suitability of any individual to his job and the basis to improve training if needed, the basis of promotion and also it is a best way of salary revision. It also helps the superior to get feedback about them, which can be effectively used in acquiring and sharpening their managerial and behavioural skills. At last it can thus be concluded that: Proper Appraisal system is used in the organization to appraise the worker. More than 80% of the members are aware about the Performance Appraisal. Some opinion problems are face by the superior and subordinate at the time of Performance Appraisal. Every subordinate perform there work with a great zeal because of motivation Performance Appraisal. Self appraisal technique of Performance Appraisal is very effective in building companies goodwill. Appraisal is followed by employee feedback & counselling is done

RECOMMEDATIONS
The suggestions after the survey are: The Performance Appraisal should be done on half-yearly basis rather than on yearly basis. After the performance Appraisal, the supervisor should personally discuss the strength and weakness of the managers. Everyone should feel free to express their opinion openly without any hesitation. The employee in the organization should be made aware of the latest method of the Performance Appraisal like 3600 Appraisal.

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 Proper training should be provided to the managers after discussing the weakness of the manager.

All employees should be made of the Performance Appraisal system

LIMITATIONS
Samples have been taken from only four departments, as it was difficult to show the training need identification of the entire department. The duration was too short to complete the project with in four weeks. Data taken from secondary sources, so it is not fully reliable. During the training in the organization I faced some problems like every person was very busy so they could not give me proper time. Due to V. R. S problems we could not take the training properly i the n organization. Some respondent did not provide accurate information. Lack of cooperation the respondents.

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BIBLIOGRAPHY
Articles from news papers and leading auto magazines (Times of India, Hindustan Times, Auto India etc.)

Press releases of the company. Business magazines (Business world) etc. Web site of the company (Bajajauto.com)

Face to face interviews From Mr. Mohd. Saif, Area Sales Manager, Delhi Mr. Gautam Ahuja, Trainee Sales Officer, Baggalink, Delhi

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QUESTIONNAIRE

QUESTION1: What physical features made you prefer BAJAJ bikes? (a) Looks (c) Style (e) All of them QUESTION2: What media affected your preference the most? (a) Word of Mouth (c) Print Media (b) Television (d) Dealer Efforts (b) Body Built (d) Robustness

QUESTION 3: Did price affect your preference? (a) Yes (b) No

QUESTION 4: What mode of payment did you prefer? (A) Cash (b) Finance

QUEASTION 5: Which Bajaj bike you prefer most? (A)Pulsar (b) Avenger

QUEASTION 6: What features made you prefer BAJAJ bikes? (a) Looks (c) Style QUEASTION 7: Which colour you like most of BAJAJ BIKES? (a) Black (c) Silver QUEASTION 8: Did price affect your preference? (a) Yes (b) No (b) red (b) Body Built

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