Performance Management

PERFORMANCE MANAGEMENT SYSTEM
CONTENTS FINAL SI NO. 1 2 3 TITLE PART-A REASON FOR SELECTING PMS TOPIC INDUSTRY PROFILE COMPANY PROFILE 3.1 Background and inception of the company 3.2 Nature of business carried. 3.3 Vision, Mission, Quality policy and Core values 3.4 JK Group Diversification 3.5 Snap Shot 3.6 Product/Service Profile 3.7 Manufacturing location 3.8 Infrastructural facilities 3.9 Achievements and awards 3.10 Work Flow Model 3.11 Future Growth And Prosepcts PAGE NO.
4. 5. 6. 7.
APPLICATION OF MCKINSEYS 7S MODEL SWOT ANALYSIS ANALYSIS OF FINANCIAL STATEMENT LEARNING EXPERINENCE
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SI NO. 1
TITLE PART-B GENERAL INTRODUCTION 1.1 INRODUCTION TO PERFORMANCE MANAGEMENT SYSTEM 1.2 STATEMENT OF THE PROBLEM 1.3 OBJECTIVES OF THE PROBLEM 1.4 SCOPE OF THE STUDY 1.5 METODOLOGY 1.6 LIMITATION OF THE STUDY
PAGE NO.
42-58
59-59 59-59 59-60 60-60 61-61
PERSONAL LEARNING 2.1 ANALYSIS OF EXISTING SYSTEM 2.2 INTERPRETATION OF RESULTS 2.3 FINDINGS 2.4 SUGGESTIONS 62-67 68-89 90-91 91-91
CONCLUSIONS AND RECOMMENDATIONS 3.1 CONCLUSIONS 3.2 RECOMMENDATIONS 92-92 92-93 94-97 98
4 5
ANNEXURE BIBLIOGRAPHY
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1. PERFORMANCE MANAGEMENT SYSTEM
1.1 Reason for selecting this topic: In this modern and competitive world it is very important to have experience of working in an organization and only class room teaching is not enough to have a practical experience. In order to know the real concern of the organization towards its employees & to recite my known theoretical knowledge of Human resource management to the practicable happenings, I chose this topic Performance management system. As well as a student it is essential for me to have a practical knowledge about the employees performance management system and to interact with employees and managers involved in the HR and other functional fields, to know more about the rising curves in the HRM as it is important to have a enthusiastic, motivated, creative and fully self expressed people in the current competitive world. To examine the performance management system of the company and HR strategies and to understand the employees feelings, mindset and opinion towards the management system so, I selected this topic. 1.2 Why the topic is important for the company? For the success of any company it is very important to know how your team members are performing, to know the areas where they excel and wherein they need to pull up their socks. It might seem to be time consuming and one may think of keeping a track of their performances mentally. However, by doing it mentally, one may miss some important things that one ought to take note of. As a growing business owner he/she cant afford to take a chance with a sensitive thing like this. After all, on the performance of the team members depends ones companys performance? Appraisal gives an opportunity to the organization to identify and reward people, who are critical to its success and on the other side for the employees it brings a satisfaction of a work well done, which is recognized and rewarded. When someones performance is appraised based on certain key points, it helps them to focus on goals. It gives them an idea of their own strong as well as weak points.
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It will also encourage them to perform better in the future. Thus the performance of the whole organization is enhanced. Henceforth, as JK Tyre is also an one of the manufacturing organizations who is willing to have less labor turnover ratio, to reduce losses resulting from ineffective performance, gross negligence and wistful misconduct and to improve overall productivity following more effective uses of personnel, thus Performance management is very much essential for the organization.
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CHAPTER-2 INDUSTRY PROFILE INTRODUCTION The Rubber Industry in the world made its beginning in 1887. It was because of the invention of the prosing of rubber, vulcanization by Charles Goodyear. The growth of the industry however received a good boost by century end when john Boyd Dunlop succeeded in making of vulcanized rubber tyres into inflatable pnecumatic tyres . Since then the tyre industry has continued to be a major segment of rubber industry all over the world .Even in India, automobile tyre and tubes account for a major part of India rubber product industry. Indian tyre industry past present The Indian tyre industry is about 55 years old. It is to be noticed that the tyre industry was covered under essential commodities Act. The pre dominance of foreign multinationals prevailing in our country till 1960s has been considerably reducing now due to development of technology. History of the Indian tyre industry could be classified into 4 periods 1920 to 1935 {multinational trading in tyre} 1935 to 1960 {multinationals manufacturing era} 1961 to 1974 {broadening of production base}
Trading tyres in India was first started in 1920 by Firestone, followed by Good Year in 1922 and later by Dunlop in 1926. Dunlop set up the first tyre at saharganj, West Bengal, in the year 1936. Firestone set up a factory at Mumbai. At present there are 20 licensed companies and 24 factories with 11 large companies manufacturing the full range of tyres and tubes. The Indian tyre companies are having collaboration with tyre companies of U.S.A, U.K, West Germany and Japan. Significant changes occurred in the tyre manufacturing process, change over from rayon to nylon and introduction of radial tyres of both steel belt and fiber glass are most important. The hot cure
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conventional rethreading process is replaced with cold cure rethreading process. The truck and bus tyre mileage and load carriage capacity has gone up by 25%. The tyre industry is Rs.3500 Crore plus which manufacture tyres for truck and buses, light trucks, jeeps, cars, tractors trailer, power tillers, scooter, motor cycle, moped, cycle, earth moving equipments and dumpers, aircraft and special defense vehicles. The large tyre unit in India Apollo, Bombay tyre international, ceat, Madras Rubber Factory (MRF) , Dunlop, Goodyear, Jktyre, Birla tyre, & vikranth tyre etc. The company that manufacture tyres for primarily for the two wheeler are TVS Srichakar, Falcon Metro tyres, Ceat MRF, Stallion and S.Kumars. The tubes are manufactured from natural rubber as well as imported butyl rubber. Tyre inner tubes are covered under packaged commodities Act. The Government for the tyre industry set up various committees. Way back in 1955, the tariff commission was set up. The major trust of the commission report was the decentralization of the tyre industry. Between 1974 and 1985 the government referred to Bureau of industry cost and price {BICP} five timers for cost and price study of tyre industry. But, the studies of the BICP were not made public. In May 1974 the government set up a committee on tyre industry with Mr. M. Satyapal as chairman. This committee submitted its report to the government in 1985. Report has not been published. Dunlop, MRF, Ceat, Apollo and Modi rubber dominates the industry together accounting for much as 60% of the total output. Among individual companies, MRF is moving into aircraft tyre manufacturing in collaboration with Uni, Royal Goodrich. The total capacity of ceat has gone up to 45 lacks tyres with the commence of walaj plant and has plans to manufacture nylon cord tyres. Modi rubber industry has the modipuram plant and modinagar plant is under implementation. Vikrant tyres with a new all steel radial tyre plant for trucks and buses is the only company modernizing the existing plant and manufacturing new technological tyres of international standards and acceptability, Indian tyre industry is all set to capture a major share in export market and increases its share of export to various countries. The tyre industry is a raw material intensive industry. Raw materials account for about 55% of the total production cost.
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Two of the four major raw materials used in the tyre making i.e. Nylon tyre cord and synthetic rubber to natural petroleum based derivatives.
AN OVERVIEW OF INDIAN TYRE INDUSTRY Total number of tyre companies (Large & Medium)- 40 having 47 tyre factories location all across India Indian tyres have good acceptance in global markets. Compound Average Growth Rate (CAGR) of tyre exports in the last one decade has been 8%. Indian Tyre companies also follow a unique warranty system whereby Pro-rata adjustment is given for manufacturing defects through the dealers. Exports to over 65 countries Worldwide Indian Tyre Industry provides the Vital link in movement of common man(through buses and public transportation) and goods (through trucks, LCVs etc) Indian Tyre Industry provides direct and indirect employment to nearly 1 million persons.
MAJOR CONCERNS OF INDIAN TYRE INDUSTRY Radialization in the commercial vehicle segment Used tyres Raw materials of Tyre Industry Automotive Industry standards( Safety standards) Government support for promoting Made in India Brand for Tyres INPUTS FOR TYRE INDUSTRY: The major raw materials are: 1. Natural rubber 2. Synthetic rubber 3. Carbon block 25% 14% 13%
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4. Nylon tyre cord/yarn(fabric)
34%.
5. (Remaining share of raw materials of 14% approx, is accounted by rubber chemicals)
CHAPTER- 3
COMPANY PROFILE
JK Organization owes its name to Late Lela Juggilal Singhania, a dynamic personality with a broad vision, Inspired by the Swadeshi movement of Mahatma Gandhi, and driven by the zeal to set up an Indian enterprise, Lala Kamlapat Singhania founded JK organization in the 19th century in India. The process of industrialization and diversification was worthily and successfully carried on by Lala Kamlapats three illustrious sons Sir Padampat, Lala
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Kailashpat and Lala Laksmipat, aided in no small measure by the late Gopal Krishna son of sir Padampat.
Lt. Lala Juggilal Singhania (1857-1922)
Lt. Lala Kamlapat Singhania (1884-1937)
JK Organization has been a forerunner in the economic and social advancement of India. It always aimed at creating job opportunities for a multitude of countrymen and to provide high quality products. It has striven to make India self reliant by pioneering the production of a number of industrial and consumer products, by adopting the latest technology as well as developing its own know-how. It has also undertaken industrial ventures in several other countries. JK Organization is an association of industrial and commercial companies and charitable trusts. Its member companies, employing nearly 50,000 persons are engaged in the manufacture of a variety of products and in diverse fields of commerce. Jk Tyre and Industries is a mega corporate entity that is emblematic of excellence, diversification and pioneering new technologies. A part of JK Organization which ranks among the top private groups private groups in India, Jk Tyre and Industries is committed to self reliance and follows an ethic that views customer satisfaction as an index of achievement. Over the years, the company has expanded and diversified its
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business portfolio. It has developed into a multi product, multi-location corporate entity comprising of following business divisions: JK Tyre has consciously been modernizing and expanding its manufacturing facilities continuously to retain its edge in the market place. The Companys customer base covers a wide range of Original Equipment Manufacturers (OEMs) together with Replacement Market for four wheeler vehicles, Defense and state Transport Units. Besides India, the company has a worldwide customer base in over 75 countries across all 6 continents, and its tyres enjoy premium brand status in various sophisticated markets, including USA and Australia. Leaders in the Indian Tyre Industry, JK Tyre started manufacturing of tyre in 1977 with a capacity of 0.5 million tyres per annum which has grown multifold over the years to its present capacity of 8.7 million tyres per annum. It has four modern plants in India, strategically located in the State of Rajasthan, Madya Pradesh and Karnataka. The Company produces and sells tyres and tubes under well known brand names of JK Tyre and Vikrant for all categories of four wheelers. JK Tyre has emerged as Indias leading four-wheeler tyre manufacturer and the amongst top 20 tyre manufacturer in the world. As the pioneers of Radial technology in India, the company brought the radial revolution by introducing Passenger Radials way back in 1977 and has taken forward this revolution in the Truck and Bus segments in 1999. The Company continues to be the undisputed Industry Leader in Radial tyres in India the only tyre manufacturer, offering full range of radial tyres for Cars, Jeeps, SUVs, LCVs, Truck & Bus and Tractors, The companys state-of-the-art Truck/Bus Radial Plant in Mysore(Karnataka) is the only of its kind in India. The company has a strong distribution network of over 4000 dealers, Over 115 company-owned stocking points and 125 JK Tyre Steel Wheels- State-of-the-art Car Tyre retailing outlets. JK Tyre was ranked highest in 2005, and continues to be in top two since then in customer satisfaction rated by the JD Power Asia Pacific Tyre
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Customer Satisfaction Index (TCSI) study. JK Tyre is the first and the only Indian Tyre to be recognized as a Super brand. The company has established 20 JK Tyre Truck Radial Care Centers, along major National highways in the country which operate on a 365 days/24 hour basis. The company is a leading Supplier to all Major OEMs Ashok Leyland, Tata Motors, Eicher Motors, Force Motors, Maruti Suzuki, Mahindra & Mahindra, Mahindra Renault, Punjab Tractors, Swaraj Mazda, TAFE etc. To stay at the forefront of technological advancements, company has set up Indias biggest & most advanced research institutes Hari Shankar Singhania Elastomer & Tyre research Institute(HASETRI) AND Raghupati Singhania Centre of Excellence for Tyre & Vehicle Mechanics, Jointly with IIT. This remains the nerve centre for providing cutting edge technology. 3.1 Background and inception of the company 1933: First in India to manufacture Calico Prints- Juggilal Kamlapat Cotton Spinning and Weaving Mills Co. Ltd., Kanpur. 1940: First in India to manufacture steel Bailing Hoops for jute and cotton and to make the country self sufficient by meeting the entire demand-J.K. Iron & Steel Co. Ltd., Kanpur. 1944: First in India to produce Aluminum virgin Metal from Indian Bauxite-Aluminum Corporation of India Ltd., Jaykaynagar. 1949: First in India to manufacture Engineering files- J.K. Engineers Files, Bombay. 1959: First in India to set up a continuous process Rayon Plant. 1960: First to manufacture a Hydraulically Operated Cane Crushing Mill for Khandsari Sugar Plant and completed 100 ton plant-J.K. Iron & Steel Co. Ltd., Kanpur. 1961: First in world to set up a plant for production of Hydrosulphite of soda by Sodium Amalgam Process- J.K. Chemicals Ltd., Bombay.
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1965: First to produce Sodium Sulphoxylate Formaldehyde (Rangolite C of Formosul) in India - J.K. Chemicals Ltd., Bombay. 1968: First to manufacture TV Sets in India- J.K. Electronics, Kanpur. First to manufacture Metallic Cops for Synthetic Filament yarn industries in India- Syntex tube works, Kanpur. 1969: First to manufacture Acrylic Fibres- J.K. Synthetics Ltd. Kota First to develop differentially Dyeable Nylon- J.K. Synthetics Ltd., Kota. 1973: First in India to license Synthetic Fibre Technology to third party as well as the first to manufacture Synthetic Fibre Machinery Fibretech Engineers & Manufacturers, Dadri. 1976: First in India to produce steel belted Radial Tyres for passenger cars, trucks and buses- J.K. Tyre Plant, Kankroli. 1980: First in world to make Steel Belted Radial Tyres for three wheelers- J.K. Tyre Plant, Kankroli. 1984: First in India to produce white cement through dry process- J.K. White cement, Gotan. 1985: First in India to produce Cathonic Dyeable Polyester Fibre- J.K. Synthetics Ltd., Kota. First in India to produce Nylon Tyre Cord based on Spin Draw Technology- J.K. Synthetics Ltd., Kota. 1989: First in India to produce magnetic tapes with cobalt technology J.K. magnetic, Surajpur. 1991: Banmore Tyre Plant (BTP) set-up with a capacity of 5.7 lakh tyres p.a. 1992: R & D center set-up at HASTERI. 1994: India's first T-Rated tyre launched Banmore Tyre Plant (BTP) crossed 100 TPD.
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1995: Mercedes Benz Launched on JK steel radials First tyre manufacturer in the world to get ISO 9001. 1996: India's first dual contact high traction steel radial- aqua-sonic launched. Introduced steel wheels. 1997: Awarded the National Export Award for 96-97. Vikrant Tyres (VTL) acquired. India's first H rated tyre launched. Only Tyre manufacturer to get 'E' Mark certification. HASETRI became the first research institute in Asia to get ISO 9002. 1998: First tyre manufacturer in the world to get QS 9000. Awarded CAPEXIL's highest export award for 1997-98. 1999: Synergy with VTL in procurement, marketing and production flexibility. Completion of state of the art modernization of truck radials. JK Tyres ranked 16th largest Tyre Company in the world. ISA - 14000 accredition for environment & safety. 2000: JK introduced National Go-Karting Championships. 2001: Received CAPEXIL award. J.K. Industries received FOCUS LAC export award for the year 1999-2000. Commendation Certificate of CII Exim. 2nd National Go-Karting Championships held. 2002: ISO 14001:1996 Re-Certification 2003: Merged with JKIL. Certified to ISO/RS 16949:2002 process based QMS 2004: first Indian Tyre Company to adopt process based management through Business process Re- Engineering (BPR)
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2005: ISO 14001:2004 Re-Certification Business Process Re-Engineering VTP RGNQA : Commendation Certificate 2006: TPM Launch ISO/TS 16949 Revised Version Re- Certification RBNQA Merit Certification 2007: India Manufacturing excellance Award 2007 (Silver Medal Score) 2008: Green Tech Environment Award silver category. ISO 14001:2004 2nd Re-Certification. 2009: Green Tech Environment Award Gold category. 2010: Green Tech Safety Award Gold category OHSAS Certification Jan 04, JK Tyre Indian Car of the Year (ICOTY) & Indian Motorcycle of the Year (IMOTY) Aug 04, 2011: Jan 14, Mar 03, JK Tyres Greenfield Project at Chennai JK Tyre launches its First Truck Wheels Service Centre in Vijayawada JK Tyre announces 4 th JK Tyre Indo Bhutan Car Rally
Vikrant Tyres Limited Vikrant tyres ltd {VTL} is situated in an area of 53 acres in Mysore. VTL is a major tyre manufacturing company and one of the most successful industrial ventures in the state of Karnataka. In the year 1970 this company was conceived as a joint venture by the participation of south Indian export company Pvt Ltd, Madras {Chennai} with Karnataka state industrial investment and development corporation Ltd {KSIIDC} for establishing and automobile tyres and tubes manufacturing unit at Metagalli industrial area in Mysore. In 1977 the management was taken over by the Government of Karnataka state industrial investment and development corporation Ltd {KSIIDC}. The
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commercial production started from 19th may 1980. During 1985 a plant was set up for manufacturing of radial tyres. The company is certified under ISO 9001, QS 9000, ISO 14001 and ISO/TS 16949:2002 certifications, for design manufacture and sale of automobile tyres, tubes, flaps and tread rubber. JK industries ltd was inducted as strategic Alliance Partner {SAP} during may 1997 with a view to improve the overall performance of the company. Collaboration agreement was entered with the M/S Continental tyres Germany in 1980. Vikrant tyres Limited, a JK tyres associate, manufactures cutting edge innovative products at conformed to the highest international standards. JK industries ltd in 1997 Acquired Vikrant Tyres Limited, Mysore. VTL has the first truck/bus steel radial in India. This has state of the art technology in technical collaboration with continental A G Germany. Vikrant tyres have successfully launched high performance steel truck radial tyres in the latest international pattern for the Indian as well as international market. Register Office at:VIKRANT HOUSE No 54, 1st Main Road, V.V Mohalla, Mysore 570002
1970 Joint Venture by SIEC Pvt. Ltd., and KSIIDC conceived to manufacture Automotive Tyres and Tubes at Mysore. 1973 Incorporated as a joint venture company by KSSIDC and SIEC Pvt. Ltd., Madras {Chennai}. 1977 Taken over by government of Karnataka through KSIIDC.
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1980 Commercial production commenced. 1982 Collaboration with M/S AVON Tyres UK. 1985 T-Pilot plant setup for manufacturing of truck Radial Tyre Plant. 1989 Construction of new Truck Radial Tyre Plant. 1991 Commercial production of all steel truck Radial Tyre. 1992 First against OTR tyre rolled out. 1994 Certified to IS 9001:1994 quality management systems. 1997 JKIL inducted as strategic Alliance Partner {SAP} by government of Karnataka. 1999 Certified to QS 9001:1998 QMS and also ISO 14001:1996 EMS. Turnaround under JK management within 10 months and declared divided after a gap of 6 years. Massive modernization and up gradation investing Rs. 224.13 crores. 2000 March-Bias plant-Rs 73.16 crores, December-Truck Radial Plan- Rs 150.97 crores. 2003 Merged with JKIL. Certified to ISO/RS 16949:2002 process based QMS. 2004 First Indian tyre company to adopt process based management through Business Process Re- Engineering {BPR}.
3.2 Nature of the business carried. JK Industries is engaged in manufacturing and marketing of automotive tyres, tubes, flaps. Products Involved: Cross ply and radial tyres for light commercial vehicles.
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Cross ply tyres for passenger cars. Cross ply tyres for agricultural vehicles. Cross ply tyres for of the road {OTR} vehicles. Automotive inner tubes for trucks, buses, light commercial vehicles.
3.3 JK VISION To be amongst the most admired companies in India, committed to excellence JK MISSION

Be a Customer Obsessed Company - Customer First 24x7 No.1 Tyre Brand in India Most profitable Tyre Company in India Motivated and Committed team for excellence in performance Be a Green Company Deliver Enhanced Value to all stakeholders Enhance global presence through Acquisition / JV / Strategic Partnerships
Quality Policy:
The people of JK Tyre have an organization committed to quality in everything they do.
They continuously anticipate and understand customer requirement, convert these into performance standards for their product and service and to meet the standards every time.
CORE VALUES:
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"Excellence comes not from mere words or procedures. It comes from an urge to strive and deliver the best. A mindset that says, when it is good enough, improve it. It is a way of thinking that comes only from a power within."

Caring for people Integrity including intellectual honesty, openness, fairness & trust Commitment to excellence
3.4 J K GROUP DIVERSIFICATION
JK ORGANISATION J.K. Organization, founded over 100 years ago, is an eminent industrial group in India. The Group has multi-business, operations multi-product and multi-location
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JK PAPER LTD. JK Paper Limited is one of the leading manufacturers of reading and writing paper JK LAKSHMI CEMENT LTD. JK Lakshmi Cement Limited is a well respected name in the cement industry in India FENNER (I) LTD. Fenner (I) Limited is a leading manufacturer of Industrial and Automotive Belts, Oil Seals, Power Transmission Accessories and Textile Yarn UMANG DAIRIES LTD. The Creme de la creme of dairy foods
JK AGRI-GENETICS LTD. At JK Agri-genetics limited, concentrates on Research and Development, production, processing and
marketing of hybrid seeds.
JK SUGAR LTD. The company's principle activity is to manufacture Sugar. However, the company currently operates in two segments. Power and Sugar
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JK
RISK
MANAGERS
AND
INSURANCE
BROKERS LTD. Services rendered to various clients for all facets of Insurance both life & non-life.
CLINIRX RESEARCH PRIVATE LTD. Full Service Contract Research Organization (CRO) 3.5 SNAP SHOT COMPANY BACKGROUND Tyres Industry Business Group Incorporation Date Public Issue Date Face Value Market Lot Company/Business Registration number CEO Board of Directors Singhania(HS) Group 14/02/1951 08/04/1975 10.00 1 INES573A01034 Bharat Hari Singhania Name Hari Shankar Singhania Bharat Hari Singhania Raghupati Singhania Vikrampati Singhania Arun K Bajoria Swaroop Chand Sethi T K Mukhopadhyay Arvind Singh Mewar Bakul Jain Govind Ballabh Pande Om Prakash Khaitan Sobha Nambisan Kalpataru Tripathy
Designation Chairman/Chair Person Managing Director Vice Chairman & Mng. Director Deputy Managing Director President & Director Whole Time Director Nominee Director Director Director Director Director Director Additional Director
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Company Secretary List of Exchanges
P K Rustagi Bangalore Stock Exchange Ltd. Calcutta Stock Exchange Association Ltd. Delhi Stock Exchange Assoc. Ltd. Madras Stock Exchange Ltd., National Stock Exchange of India Ltd. The Stock Exchange, Mumbai Uttar Pradesh Exchange Assoc Ltd.
Bankers
Corporation Bank IDBI Bank Ltd. Indian Bank Punjab National Bank State Bank of Bikaner & Jaipur State Bank of India State Bank of Mysore Syndicate Bank Federal Bank U C O Bank
Administrative Office
102201, 3, Bahadurshah Zafar Marg City New Delhi State Delhi PIN - 110002 102200, Jaykaygram City - Kankroli State - Rajasthan 102205, Vikrant City - Mysore State - Karnataka 102203, Mirganj City - Bareilly State - Uttar Pradesh 102206, Banmore City - Banmore State - Madhya Pradesh 102204, Mysore Plant I & II City - Mysore State - Karnataka 102202, Pharmaceutical UPSIDC Industrial Area Gajraula City - Gajraula State - Uttar Pradesh
Factory/Plant
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Registered Office
102199, 7, Council House street City - Kolkata State - West Bengal PIN - 700001 Email ID - investorjktyre@jkmail.com Web Url - http://www.jktyre.com Lodha & co. and Chartered accounts Alankit Assignment Ltd.
Auditors Registrars
3.6 Product/Services profile: The major products of JK Company are automobile tyre {Nylon tube tyre, radial tube and tubeless tyre } tubes names. 1} Truck Tyre
1. Jet rib 2. Vikrant truck king 3. Star lug 4. Super T.K 5. JT king 6. Hi Life 2} Light Tucks 1. Jet rib
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7. Jet truck 8. jet truck 9. Sand cum hiway 10. Truck plus 11. JT Classic 12. JETRK
3. Fleet king
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2. Star lug
4. Truck king
3} O.T.R (Of the Road) 1. VEM 99 E-3 T/L 2. VEM 99 E-4 T/T 4} Tubes 1. JK Tubes 5} Flaps 1. JK FLAPS 2. JK RDFLAPS 3. JK EXP FLAP 2. Vikrant tubes 3. Tube V EX 3. VEM 00 SS E-4 T/L 4. EGO4 G2 T/T
3.7 MANUFACTURING LOCATIONS JK Tyre has five Modern plants in India which are strategically located at

Mysore plant-1(VTP) Karnataka Mysore plant-2(VTP Radial) Karnataka Banmore, Madhya Pradesh Kankroli, Rajasthan
JK Tyre has also enhanced its global reach by taking over Tornel a renowed Mexican company, which has 3 plants in Mexico. All these plants are equipped with Worlds most advanced manufacturing and testing machines.
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VIKRANT BIAS TYRE PLANT
VIKRANT RADIAL TYRE PLANT
VIKRANT OTR PLANT
ghgkddfdf
KANKROLI TYRE PLANT Three plants in Mysore are VTP -Vikrant Tyre Plant OTR Off the road Tyre plant RTP - Truck Radial Plant
BANMORE TYRE PLANT
JK TYRE PLANTS OPERATIONAL CAPACITY
PLANT
CURRENT CAPACITY(MT/DAY)
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Kankroli Tyre Plant Banmore Tyre Plant Vikrant Tyre Plant TOTAL
210.00 165.00 321.95 696.95
3.8 INFRASTREUCTURE FACILITIES Infrastructure facilities means the basic requirement that the company should look after in order ensure free flow of activities. The company is providing following infrastructure facilities in order to satisfy its workers, distributors and customers. The company provides all facilities in order to satisfy its workers, distributors and customers. 1. SAFETY & SECURITY Security: For the security reasons, company appointed security guards to guard the
factory premises, to protect the assets of the company like produced tyres. Safety: Mandatory requirements to the hazardous industries. Company is issuing the
safety gears to all the employees. They must ware the safety gears like go galls, hand gloves, ear plugs, shoes, masks etc. Other than Personal Safety provisions, Safety team ensuring the safety protections in the hazardous machines in the shop floor. Training on safety is also given to every employee. Every year mock drill regarding the safety actions is conducted. 2. HEALTH CARE: Under Factories ACT 1948, company provides all facility related to health. Cleanliness: The company maintains clean and free from effluvia arising from drain, privy or other nuisance. Ventilation and temperature:
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The company affords adequate ventilation by the circulation of fresh air and such a temperature as will secure to workers therein reasonable conditions of comfort and prevent injury to health. Lighting: The company affords and maintained sufficient and suitable lighting, natural and artificial, where the workers are working.
Drinking Water: The Company provides adequate supply of water for the company employees. Urinals and Spittoons (Rest room): The Company provides rest room facility for company employees. During the interval the employees can get relaxation in that room. 3. WELFARE Canteen Facility The Company provides good food with low price for company workers. Under this section canteen facility is obligatory on the part of every factory to provide canteen facility where in more than 250 employees are employed and hence JK also provides canteen facility for its employees, which is well constructed, furnished with good furniture, equipments and also with good accommodation. Here 100% subsidy is provided for meals, coffee and tea, snacks is supplied with subsidy up to Rs. 300 per month. Ambulance Facility In J.K Industries provide Ambulance facility for company employees, when they met with Employment injury (Factory accidents) First aid Facility Whenever there is an accident, the worker will be taken to the healthy centre which is inside the plan. All the minor and first aid is done here itself and when there is major accident first aid done in the health centre and then they are taken to the hospital. Every day an ambulance will be inside the plant, which will be kept ready to carry injured whenever there is a major accident.
3.9 Achievements and awards 1. JK Tyres ranked 16th largest company in the world. 2. ISO 14001 accreditation for environment and safety. 3. Indias first T rated tyre launched. 4. Mercedes Benz launched on JK Tyres radials first tyre manufacture in the world to get ISO 9001. 5. Only tyre manufacture to get E mark certification. 6. First tyre manufacture in the world to get QS 9000. 7. Awarded CEPEXILS highest export for 1997-98. 8. JK introduced national Go-carting championships. 9. JK industries received FOCUS LAC EXPORT award for the year 1999 and 2000. 10. Certified to ISO 9000 (1994 quality management systems). 11. First Indian Tyre Company to adopt process based management process based management through business process re-engineering (BPRO). 3.10 Work Flow Model 1) Compound At Banbury: Compound is the process of mixing the necessary raw materials with selected elastomer in the banbury. Banbury is an internal mixer, which consists of a completely enclosed mixing chamber with two spiral shaped rotors. There is a hoper to feed the ingredients and a door to discharge the mix. The rubber ingredients like chemicals are weighted as mentioned in specification file and feed into hoper. Then the mixing process takes place. Required mixing time is fixed to get better quality mixing. 2) Extruder:
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The main function of an extruder is to produce tread and side wall, bead, apex. Extrusion is a process of forcing the mixed compound by means of screw, which rotates inside the barrel. There are two types of extruder: a) Screw extruder, b) Ram extruder. 3) Zell Plant: The dipping process takes places in a zeal plant. Here rayon, nylon. Polyesters are dipped in a solution containing normally a latex based resorcinol formaldehyde to improve adhesive properties. Then the fabric is dried at a temperature of about 280-300 F for 150-180 sec, the fabric is stretches to about 0-15%
4) Calendaring: Calendaring is a machine, which consists of three or four rolls held in a frame work used to produce the rubber sheets of required strength and length. To get a better quality calendared fabric with uniform gauges, viscosity is important in the same way, hot temperature of about 110-137mm. 5) Bias Cutter: It is a machine used to make plys or to the rubber coated fabrics at required width and angle, which are used in the production of tyres. Bias angle is the angle of cords in tyres with respect to the central line. Based on the ideal cured angle, required for particular type size and pattern, bias angle is calculated for the particular drum. 6) Pocket Making: It is a process of making the pocket from the angle cutter fabrics. In pocket making section, three types of pockets are constructed. The plys used for the first and second pocket are known ad inner ply and those used for third pocket are known as outer ply. 7) Bladder: Butyl rubber compound is used for making the bladder. As first, butyl rubber is mixed with specified chemicals properly and then it enters the extruder section by the
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use of the extruder, a specific length and width of slug is extruded. Then the ends of the slugs are cut into the specified angle for proper joining. 8) Tyre Moulding: Before moulding operations, the green tyre has to be made ready for painting with inner lubricants inside tyre for easy release from the bladder and the side walls are to be coated with blemish paints. 9) Tyre Curing: It is a process of cross linking the rubber compounds through heat and pressure. For the pressure of curing tyres presses are used. These pressed are pre warmed before loading of green tyre is done in the top ring raise condition with vacuum. 10) Tyre Finishing and Inspection: After curing, the tyres obtained by trimming of the extensions on the tyres surfaces are checked for defects. Thus the process of removing excess materials from the tyre after curing is called finishing. The finishing process is done either by buffing or trimming method. All the tyres then are inspected and separated. 3.11 Future growth and prospectus:
To be the No.1 tyre company in India. To be the largest export company in India. To be a customer obsessed company. High quality of products. Profit Maximization.
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Green tyre project. Leadership Style To enhance value to share holders and service to all stakeholders.
4. APPLICATION OF MCKINSEYS 7S MODEL Introduction to 7s Model The 7S frame work has first appeared in the book The Art of Japanese Management by Richard Pascal and Antony Athos in 1981. The two authors were looking at how Japanese Industry had been so successful, at around the same time Tom Peter and Robert waterman were exploring what made a company excellent. The 7S model was born at a meeting of the four authors in 1978. It then appeared in the book In search of Excellence by Peters and Waterman in 1982. Subsequently, it was taken up as a basic tool by the global Management Consultancy Company Mc Kinsey to diagnose the cause of Organizational problems and to formulate programs for improvement, then on it became famous as Mc Kinsey 7S Model. The Model starts on the premise that an organization is not just Structure, but consists of 7 elements with a complex relationship between them.
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For the successful implementation of Strategy large of small the management needs to take account of all seven factors. They are all interdependent, if one element changes then this will affect all the factors. For example, a change in HR Systems like internal career plans and management training will have an impact on organizational culture (Management Style) and thus will affect structures, processes and finally characteristic competencies of the organization SHARED VALUES: The values that go beyond, but might well include simple goal statement in determining corporate destiny. To fit the concept, these values must be shared by most people in the organization. VTP is a company that insists the following some core values most of these can be found in the companys vision statements as well as quality policy. The company considers employees are the greatest of its assets. Production and productivity is a derivative of employee welfare. JK industries Ltd., take initiative to do social projects such activities like literacy program for village people. Conduct medical camps in villages, digging bore wells in villages, building bus shelter and employee welfare program. Likewise the company is always willing to participate in welfare activities. The companys focus on the customer and creating culture of interdependence are embodied in its statements of vision and quality. While the concept of TQM, TPM and
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QC are visible in the form of slogans, posters and well meaning clichs. The first serious attempt to institutionalize has started. Thus some of the values that are shared by the both employees and the management at JK Industries limited is as follows: Product and Service quality Productivity efficiency Punctuality Compensation Employees and Societal welfare Customer satisfaction Team work concept TQM {Total Quality Management} TPM{Total Productive Maintenance} Quality circle. 1. Strategy: Strategies are the actions a company plans in response to or anticipation of changes in its external environment. It also includes purposes, policies, Mission, Objectives. Objectives Customer Satisfaction Produce high quality of products. To be the No. 1 Tyre company in India. Profit maximization. To be the large Tyre Export company in India. To enhance value to share Holders and Service to all stake holders. Accident free safe production J K Industries is successfully operating because ofd its plans which are implemented in each individual activities, it may be short term or long term. All activies of the JK Industries run by major goals and objectives. Policies
Quality policy Environmental policy Safety policy Laboratory policy TPM (Total productive maintenance) policy Waste elimination strategy: The company insists on education on continues basis for the workers and the staff. Total productive maintenance (TPM) and quality circles are practiced from the lowest level, as a management seeks continuous improvement from workers in every record. There exist clarity of vision and goal within the company as a result of which the productive efficiency of the company goes up. 2. Structure: Organization structure refers to the relatively more durable organizational arrangements and relationships. It prescribes the formal relationship among various positions and activities. Arrangements about reporting relationship how an organizational member is to communicate with other members. What roles he is to perform and what rules and procedures exist to guide the various activities performed by members are all part of the organizational structure. Vice President - Works
V P Technical
V P Manufacturing
General Manager
Associate Manufacturing VP
Human Resource
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Technical Manufacturing Engineering & Production Legal & Commercial Exports Material Quality Assurance Sales & Marketing
Management
Deputy General Manager
Chief Manager
Manager
Deputy Manager
Senior Officer
Officer
Officer Trainee It has been observed that in JK Industries Ltd., both the formal and informal type of organizations is following. The informal organization exists in the form of a social relationship which is developed through social interactions between the employees at the work place. The formal organizations are well defined. Jobs, each has a definite measure of authority, responsibility and accountability. The structure is consciously designed to enable the organizational members to work together for accomplishing common objectives of the company. 3. Systems: Systems in the 7s framework refer to all the rules, regulations and procedures both formal and informal that complement the organization structure. It includes all the processes and information flows that link the organization together, consisting of management information system, production planning and control systems, cost accounting procedures, capital budgeting systems, recruitment, training & development systems, planning & budgeting systems, performance evaluation systems. Management information system at JK Industries Ltd. has a well defined information network. They have fully equipped technical information department, which is called as
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information system group. The most essential function of this department is to make the strategic & operational level information at all times. Every department in this organization has a net work of computer integrated serves by which the day to day information and data storage is manages efficiently by this group. All the departments namely project and marketing, purchases, quality control stores, finance etc has computers programmed and are interlined via LAN. The information systems group is responsible for smooth functioning of all the day-today activities, which are computerized in all the departments. These activities include equipment stock order generation, bill of material generation, indent generation, raising purchase orders. Stores management and other production related activities. The JK Vikrant plant has a wide scope and covers all most all areas of Human Resources; mainly it covers the following areas.
a) Payroll Package: It has provision for deductions with respect to PF, VPF, HRA, Special allowance, etc. leave encashment, arrears, over time, loan details, deductions etc. b) Attendance: Attendance recording system is maintained daily, covering issue like daily attendance, late punching reports, employees who have omitted to punch out details, pertaining to man-hour utilization, absenteeism etc. c) Leave Maintenance: It is a part of time keeping, and has provision for issues like, daily updating leave cancellation, punching omissions, compensatory off, outdoor duty, indoor duty, leave details, leave credit or change. d) Personnel/HR:
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It has a package that deals with recruitment, career development, service exit etc. in recruitment, the package handles application processing, test and interview, preparation of selection list, appointment order etc. In career development it deals with training performance appraisal, transfer, promotion etc. 4. Style: The style if an organization, according to McKinsey from work refers to the Reporting Relationship between the superiors and his subordinates. It also conveys the flow of communication between them. Referring to the organization structure of JK Industries Ltd., it can be said that the company is following the type of Line and Staff organization. Report relationship at JK Industries Ltd follows a formal channel. The communication follow the routes formally laid in the organization structure and deliberately associates with the status or the position of the sender and the receiver. Both downward and upward communication follows the path of formal channel. The activities like quotation processing, equipment stock order generation, bill of material generation, indent generation, raising purchased orders, stores management and other production related activities generated a number reports which are communicated from one department to the other through formal channel. 5. Staff: Staffing is the process of acquiring human resources for the organization and assuring that they have potential to contribute to the achievement of the organizations goals. It includes selection, placement, training and development of appropriately qualifies employees. At JK Industries Ltd., for its staff all the facilities are given. Up graduation work, process, technology etc are doing day by day. Recently all departments are computerized at all levels, so company is giving computer training to all its employees and staff, there is a lot of scope and career opportunities in the firm for the staff. MANPOWER VTP
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SI No.
CATEGORY
No.
Of
EMPLOYEES
1 2 3 4 5
MANAGEMENT CADRE STAFF (EXECUTIVES) STAFF AND SUB STAFF WORKMEN AND WORKMEN TRAINEE BADLIES CONTRACT CASUALS & JOB CONTRACTOR
643 members 70 members 1732 members 1090 members 1074 members
6. Skills: The term skill include those characteristics which are developed over a period of time and a results of the interaction of number of factors, performing certain tasks successfully over a period of time, the kind of people in the organization, the top management style, the organization structure etc. Technical Skills: A technical skill refers to the ability and knowledge in using the equipment, technique and procedures involved in performing specific tasks. At JK Industries Ltd., employees, both supervisors and workers, working in all the production related department posses the technical skill suck as engineering skills, computer skills, etc. which are needed to handle work related tools, machines and equipments. Human Skills: Human Skills consists of the ability to work effectively with other people both as individual and as member of a group, at JK Industries Ltd., employees and staff are
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expected to have human skills so that they can work co-operatively with one other and build effective team spirit, which in turn helps in achieving the organization goals. 7. Super Ordinate Goals Super ordinate goals refers to set of values and aspirations that go beyond the conventional formal statement of corporate objectives, they are the fundamental ideas around which a business is built.
5. SWOT ANALYSIS SWOT analysis is abbreviated Strengths, Weakness, Opportunities and Threats. It is a tool for auditing and organization and its environment. It is the first stage of planning and helps marketers to focus on key issues. Strengths and Weakness are Internal factors Opportunities and Threats are external factors. STRENGTHS: JK Tyre is the only company which has adopted TPM (Total Productive Maintenance) . VTL is the First Truck/Bus Steel Radial Plant in India. Over rise decades of experience in Tyre Manufacturing. It is Self Sufficient in Tyre Production
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Successful and fast absorption of international technology to suit Indian conditions and needs. Well- knit distribution network It exports around 68 countries in the world. It has 21% market share in India. Tyre is easily available and serviced even in remotest parts of the country. WEAKNESS: High cost of raw materials In comparison with the goals standards, smaller size of plant and hence less economic units. It doesnt manufacture two wheelers tyres. Welfare of the labour is not taken into consideration. Media of advertisement is insufficient. Low productivity of labour, in comparison to world standards. OPPORTUNITIES: Excellent brand equity of Indian cross bias tyre in the world market. Robust economic growth, particularly vehicle production growth resulting in healthy demand growth for tyres in the future. It is easy to become No. 1 Tyre Company in India. Emergency of Indian as a hub for production of small car is expected to give a thrust of auto component and tyre segment. Improved road infrastructure especially on the golden quadrilateral and northsouth-east-west national highway project will resulting significant increase in movement of goods and passenger traffic through roads with resulting growth in demand for in tyres. The company has the knowledge of entire tyre industry and business conditions preventing in the market. So it can easily start two wheeler tyre productions. THREATS: Gradual increasing in natural rubber price. Faster pace of opening up of the economy will increase import of tyres.
Reduction in important duties will leads to high Volume of tyre imports. Multinational with financial muscle setting up of manufacturing facilities in the country. Competition posed by the national and international market. Government politics and policies about the tyre industry. It has to adopt modern technology to reduce the cost of production. Too much intervention by the head office.
6. FINANCIAL STATEMENT OF JK TYRE FOR THE YEAR 2009-10
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7. Learning experience: The learning experience at JK Tyre was eventual. In this modern and competitive world it is very important to have experience of working in an organization & only class room teaching is not enough to have a practical experience. Doing this project I learnt why this activity is important. I got to know how the theoretical concepts which I learnt in the class would be applied at the corporate level. I have observed the co-ordination of the employees, good relation between workers and the superior managers. I learnt how the relationship affects the smooth functioning of an organization.
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I have studied the organization of the company; the strategy adopted by the company the organization hierarchy and the way it works.
The company gets the products of other competitors such as bridgestone tyre to their testing labs and makes comparison with their product and adopts the technology of their competitors and attempts to give better product than their competitors.
The company has adopted "THE PARTICIPATIVE LEADERSHIP STYLE" So it encourages to its workers to show more interest in management activities.
During the adoption of new technology, management provides more training skills to the workers for the efficient work and the work position.
In order to motivate the employees
the company follows an internal
recruitment process through promotion. If there is an vacant job the company first searches within the organization and if right employee is not available internally then it goes for external recruitment. I would like to thank Mr. Jeevan Kumar and Krishna Prasad sir for their support and explanation in every concerned aspect. Thus, this project helped me to gain working experience before completing myM-tech course & made me to realize the importance of communication, behavior, effectiveness in working and I personally learnt how the company working environment will be and working habits of employees.
GENERAL INTRODUCTION
1.1 INTRODUCTION TO PERFORMANCE MANAGEMENT Performance management (PM) includes activities that ensure that goals are consistently being met in an effective and efficient manner. Performance management can focus on the performance of an organization, a department, employee, or even the processes to build a product or service, as well as many other areas. Performance management as referenced on this page is a broad term coined by Dr. Aubrey Daniels in the late 1970s to describe a technology (i.e. science imbedded in
applications methods) for managing behavior and results, two critical elements of what is known as performance. Performance is the sum of behavior plus results: Performance = Behavior + Results When you are looking at performance, it is necessary to focus on both, on behavior and on results: If you only focus on behaviors, you wont notice if you dont get desired results And if you only focus on results, you wont notice if your employees dont behave ethically Remember this simple formula its very easy to recall it and it is extremely useful The purpose of performance management is to help and encourage every one to raise their performance, develop their abilities, increase job satisfaction and achieve their full potential to the benefit of the individual and the organization as a whole. Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves your organization. Many writers and consultants are using the term performance management as a substitution for the traditional appraisal system. I encourage you to think of the term in this broader work system context. A performance management system includes the following actions.
Develop clear job descriptions. Select appropriate people with an appropriate selection process. Negotiate requirements and accomplishment-based performance standards, outcomes, and measures.
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Provide effective orientation, education, and training. Provide on-going coaching and feedback. Conduct quarterly performance development discussions. Design effective compensation and recognition systems that reward people for their contributions. Provide promotional/career development opportunities for staff. Assist with exit interviews to understand WHY valued employees leave the organization.
WHAT IS PERFORMANCE MANAGEMENT Performance management is the integrated process of objective setting, appraisal and pay determination which supports the achievement of the company's business strategies. At an individual level it will result in action plans related to Performance improvement, career development and training."Thus Performance management involves thinking through various facts of performance, identifying critical dimensions of performance, planning, reviewing and developing and enhancing performance and related competencies. It is an ongoing communication process that involves both the manager and the employee in: Identifying and describing essential job functions and relating them to the vision and goals of the organization Developing realistic and appropriate performance standards Giving and receiving feedback about performance Writing and communicating constructive performance appraisals Planning education and development opportunities to sustain ,improve or build on employee work performance The evolution of the concept of performance management as anew Human Resource Management model reflects a change of emphasis in organizations away from
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command-and-control toward a facilitation model of leadership. This change has been accompanied by recognition of the importance to the employee and the institution of relating work performance to the strategic or long-term and overarching mission of the organization as a whole. Employees goals and objectives are derived from their department, which in turn support the mission and goals of the organization. Definition Performance management is an ongoing, continuous process of communicating and clarifying job responsibilities, priorities and performance expectations in order to ensure mutual understanding between supervisor and employee. It is a philosophy which values and encourages employee development through a style of management which provides frequent feedback and fosters teamwork. It emphasizes communication and focuses on adding value to the organization by promoting improved job performance and encouraging skill development. Performance Management involves clarifying the job duties, defining performance standards, and documenting, evaluating and discussing performance with each employee. Objectives The objectives of Performance Management are to: Increase two-way communication between supervisors and employees Clarify mission, goals, responsibilities, priorities and expectations Identify and resolve performance problems Recognize quality performance Provide a basis for administrative decisions such as promotions, succession and strategic planning, and pay for performance.
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Why do we need performance management? To provide guidelines to the employees on the process of performance management process and to communicate the role of an appraise, an appraiser, a reviewer and a member of the appraisal committee. There are two main reasons for introducing performance management. We want to focus every ones attention on what they are expected to achieve in their jobs and how best to achieve it. We would like to help every one to identify and satisfy their development needs to improve performance and realize their potential. AIMS OF PERFORMANCE MANAGEMENT The overall aim of performance management is to establish a high performance culture in which individuals and teams take responsibility for the continuous improvements of business processes and for their own skills and contributions within a frame work provided by effective leadership. Its key purpose is to focus people on doing the right things by achieving good charity. The following are the aims of performance management: Empowering, motivating and rewarding employees to do their best. Focusing employees tasks on the right things and doing them right. Aligning everyones individual goals to the goals of the organization. Proactively managing and resourcing performance against agreed accountability
and objectives. Linking job performance to the achievement of the councils medium-term corporate strategy and service plans. The alignment of personal/individual objectives with team,
department/divisional and corporate plans. All individuals being clear about what they need to achieve and expected standards, and how that contributes to all the over all success of the organization, receiving regular, fair, accurate feedback and coaching to stretch and motivate them to achieve their best. Systematic approach to organizational performance aligning individual accountabilities to organizational targets and activity. The process and behaviors by which mangers manage the performance of their people to deliver a high-achieving organization. Maximizing the potential of individuals and teams to benefit themselves and the organization, focusing on achievement of their objectives. Who is going to do it? There are four groups of people whose commitment to performance management is crucial to its success: Top managers, line managers, employees, HR Specialists TOP MANAGERS:Top managers take the lead, set the direction, act as role models and define and act upon core values relating to performance. It is their job to convince every one that they believe performance management plays a key in ensuring that business goals are achieved. They have to spell out to line managers that their performance will only be acceptable if they take performance management seriously and use its processes to deliver better results. It is the responsibility of top-managers to develop a high-performance culture which
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means ensuring that They communicate a clear sense of mission under pinned by values, and a culture expressing what the firm is and its relationship with its customers and employees. A clear line of sight exists between the strategic aims of the businesses and those of its departments and its staff at all levels. Expectations are defined and communicated to everyone in the shape of goals for success, performance improvements and core vales. Every one is kept informed of progress towards achieving goals and what needs to be done if performance is not up to expectations. Leadership is provided that engenders a shared belief in the importance of continuing improvement. LINE MANAGERS:Front line management or leadership played a pivotal role in terms of implementing and enacting HR Policies and practices since it is the front line managers that Bring Policies to Life The need is to fill gap between rhetoric and reality, between what top management and HR want line managers to do and what line managers actually do. Provide opportunities for employee improvement. Initiate the coaching session. Review organizational changes. Seek feed back from multiple sources. Indentify resource changes. Provide suggestions. Indentify employees major accomplishments in relationship to organizational
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or departmental expectations. Send the completed performance summary to the personal office. Provide a copy to employee. THE ROLE OF EMPLOYEES Every employees, from the top to the bottom of an organization, is subject to performance management even if this is not necessarily a formal process. Encourages scheduling of the planning secession. Come prepared to discuss your personal goals/interest and ideas that can help the department to meet its goal. Work together with the supervisor to agree upon goals, expectations, competencies to be emphasized, and to establish priorities. Initiate the coaching session. Meet with supervisor to get feedback. Inform supervisor of any unforeseen obstacles that may delay goals achievement. Identify major accomplishments and challenges. THE ROLE OF HR SPECIALISTS:The emergence of the Business Partner concept of HR led to a change in direction. HR no longer ran the performance appraisal scheme; instead their role became that of encouraging and facilitating the sort of performance management processes. They work along side line manager, helping them as necessary to develop their skills and encouraging their use. They assemble teams of committed and experienced managers who can act as coaches and mentors and stimulate the creation of communities of practice, ensuring that performance management is on agenda. More specifically, they run training events and conduct surveys to evaluate the
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effectiveness of performance management. HR Specialists exist to support performance management rather than drive it. A MANAGER IS INVOLVED IN PERFORMANCE MANAGEMENT WHEN HE: Establish specific job assignment Writes job descriptions, assign responsibility for strategic initiatives develop and apply performance standards Discusses job performance with the employee and provide feedback on strengths and improvements needed Conducts an annual performance evaluation plan for improved performance and employee development goals PERFORMANCE MANAGEMENT SYATEM PROCESS: Performance management process ensures that the goals and aspirations are met. It focuses on individual employee performance, performance of a process or activity, performance of a department and the performance of the organization as a whole. The process of managing performance in an organization is a continuous process and goes on so long as the organization exists and involves the following activities. Performance management includes: PLANNING work and setting expectations Continually MONITORING performance DEVELOPING the capacity to perform Periodically RATING performance in a summary fashion, and REWARDING good performance
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PLANNING
REWARDING
MONITORING
RATING
DEVELOPING
PLANNING:In an effective organization, work is planned out in advance. Planning means setting performance expectations and goals for groups and individuals to channel their efforts towards achieving organizational objectives, getting employees involved in the planning process will help them understand the goals of the organization, what needs to be done, why it needs to be done, how well it should be done. The regulatory requirement for planning employees performance includes establishing the elements and standards of their performance appraisal plans. Performance elements and standards should be measurable understandable, verifiable, equitable, and achievable. Through critical elements, employees are held accountable as individuals for work assignments or responsibilities. Employee performance plans should be flexible, so that they can be adjusted for changing program objectives and work requirements. When used effectively, these plans can be beneficial working documents that are discussed often, and not merely paper work that is filled in a drawer and seen only when ratings of record are required. Objectives of the plan must be clearly stated in the plan document as well as why it is being introduced after which a management system is designed. The design is a direct
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derivative of the organizations mission and visions and these are gradually broken down at each stage until it finally gets to the individual employee. Another way of doing the design is to start from the individual objectives and work them out to derive the organizational objectives. In setting performance management objectives, the SMART approach is most useful and is as follows: Specific Measurable Achievable Result-Oriented Time Related
MONITORING:In an effective organization, assignments and projects are monitored continually. Monitoring well means consistently measuring performance and providing ongoing feedback to employees and work groups on their progress toward reaching their goals. Regulatory requirements for monitoring performance include conducting progress reviews with employees where their performance is compared against their elements and standards. Ongoing monitoring provides the opportunity to check how well employees are meeting predetermined standards and to make changes to unrealistic or problematic standards and by monitoring continually, unacceptable performance can be indentified at any time during the appraisal period and assistance provided to address such performance rather than wait until the end of the period when summary rating levels are assigned. DEVELOPING:In an effective organization, employee developmental needs are evaluated and addressed. Developing in this instance means increasing the capacity to perform through training, giving assignments that introduce new skills or higher levels of responsibility, improving work processes, or other methods. Providing employees with training and developmental opportunities encourages goods performance, strengthens
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job-related skills and competencies, and helps employees keep up with changes in the work place, such as the introduction of new technology. Carrying out the processes of performance management provides an excellent opportunity to identify developmental needs. During planning and monitoring of work, deficiencies in performance become evident and can be addressed. Areas for improving good performance also stand out, and action can be taken to help successfully employees improve even further. RATING:From time to time, organizations find it useful to summarize employee performance. This can be helpful for looking at and comparing performance over time or among various employees. Organizations needs to know their best performance areWithin the context of formal performance appraisal requirements, rating means evaluating employee or group performance against the elements and standards in an employees performance plan and assigning a summary rating of record. The rating of record is assigned according to procedures included in the organizations appraisal program. It is based on work performed during an entire appraisal period. The rating of record of record has a bearing on various other personnel actions, such as grating within grade pay increases and determining additional retention service credit in a reduction in force. Although group performance may have an impact on an employees summary rating, a rating of record is assigned only to an individual, not to a group. REWARDING:In an effective organization, rewards are used well. Rewarding means recognizing employees, individually and as members of groups, for their performance and acknowledging their contributions to the organizations mission. A basic principle of effective management is that all behavior is controlled by its consequences. Those consequences can and should be both formal and informal and both positive and negative. Good performance is recognized without waiting for nominations for formal awards
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to be solicited. Recognition is an ongoing, natural part of day-to-day experience. A lot of the actions that reward good performance like saying Thank you- dont require a specific regulatory authority. Nevertheless, awards regulations provide a broad range of forms that more formal rewards can take, such as cash, time off, and many nonmonetary items. The regulations also cover a variety of contributions that can be rewarded, from suggestions to group accomplishments. Managing performance effectively- In effective organizations, managers and employees have been practicing good performance management naturally all their lives, executing each key component process well. Goals are set and work is planned routinely. Progress toward those goals is measured and employees get feedback. High standards are set, but care is also taken to develop the skills needed to reach them. Formal and informal rewards are used to recognize the behavior and results that accomplish the mission. All five component processes working together and supporting each other achieve natural effective performance management. STANDARDS OF PERFORMANCE Standards of performance are written statements describing how well a job should be performed. Performance standards are developed collaboratively with employees, whenever possible, and explained to new employees during the first month on the job. The performance standard provides a benchmark against which to evaluate work performance. While the job description describes the essential functions and the tasks to be done, the performance standard defines how well each function or task must be performed in order to meet or exceed expectations. Standards of performance are usually: Developed in collaboration with the employee who do the tasks or functions Explained to new employees within the first month on the job.
It is appropriate to define standards that apply to all essential function rather writing a performance standard for every task in a job. Focus on those areas, which are most important to the position. Discuss and describe those behaviors and results, which would constitute the minimum acceptable performance for the task or function. Performance, which satisfies those standards, will receive the rating of solid
performance. We may also describe the behaviors and results that would fall below expectations. The same principles apply to the development of standards, regardless of the rating. Standards should be written in clear language, describing the specific behaviors and actions required for work performance to meet, exceed or fail to meet expectations. GUIDELINES FOR PERFORMANCE STANDARDS Keep in mind the following guidelines when writing your performance standards: Performance standards should be related to the employees assigned work and job requirements. Reporting systems should be adequate to measure and therefore should have more quantitative data. Quantifiable measures may not apply to all functions. Describe in clear and specific terms the characteristics of performance quality that are verifiable and that would meet or exceed expectations. Accomplishment of organizational objectives should be included where appropriate, such as cost-control, improved efficiency, productivity, project completion, process redesign, or public service. BUILDING A PERFORMANCE MANAGEMENT SYSTEM Performance management system (PMS) is set of techniques of procedures for improving organizational performance. To sustain competitive advantage, organization not only requires recruiting the best people but also focusing on their continuous development through an effective PMS. While development of people is possible through ongoing training and development and skill and knowledge renewal, it must precede PMS, as PMS, inter alia, establishes the basis for identifying training and development needs. In line with Bevan and Thompson (1992), main features of PMS can be outlined as follows: Focus on objective setting: Objectives are the targets which an organization set for its employees. It is in the form of an action statement and it starts with a
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verb. At the strategic or corporate level, overall organizational objectives are decided. PMS help to percolate the organization objectives to employees translating organizational objectives to individual targets.
Develops systems for ongoing review objectives: Through the process of periodic performance review, PMS help to keep a track on achievement of objectives. Such review system largely depends on type of PMS techniques used by an organization. It may be an age old MBO systems or a 360 Degree PMS (multi dimensional) or a more recent performance tracking technique like a balanced score card. Review of objectives help in performance control and initiate steps to correct deviation in performance or to revise the targets.
Develop personal improvement plans: Since PMS helps in individual performance monitoring, it ensures developing of personal improvement plans for the employees. A particular employee may lack in performance or he/she may exceed the targets given. In both the cases, it is important to design the personal improvement plan. While in the first case, it may be importance to provide performance counseling and training and development reinforcement, in the second case, the employee may be motivated further through proper reward system. Thus PMS help in developing personal improvement pans in both the cases.
PMS aligns with training and development: Since focus of PMS is to manage and develop employee performances, to sustain competitive advantage of an organization through proper alignment, PMS help in indentifying training and development needs. This helps in developing need based training and also in measuring the Return On Investment (ROI).
Ensures formal appraisal with feed back: By introducing a formal appraisal system, PMS helps in giving performance feedback to employees. Both negative and positive feedback sensitive employees and help them to objectively analyze their shortfalls and positive aspects. While shortfalls can be met by learning reinforcement and setting the right direction, positive aspects can be leveraged
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by the employee concerned to further develop him self setting higher targets and accordingly grow.
Help in pay review: Performance based pay is the modern concept. PMS help in objective designing of compensation package for employees, thus rewarding the performance and reducing the variable pay (performance linked) of nonperformers. This way organization can remain competitive optimizing the cost of compensation.
Develops competence based organizational capability: Competence based organizational capability help in appropriate organizational change, keeping pace with competition. It also helps in human resource planning. PMS through qualitative and quantitative appraisal can assess the prevailing competency level of employees and thus helps in organizational capability review.
BENEFITS Managing employee or system performance facilitates the effective delivery of strategic and operational goals. There is a clear and immediate correlation between using performance management programs and improved business and organizational results. 4 KEY BENEFITS OF PERFORMANCE MANAGEMENT: PERFORMANCE MANAGEMENT FOCUS ON RESULT, RATHER THAN BEHAVIOUR AND ACTIVITIES:A common misconception among supervisors is that behaviors and activities are the same as result. Thus, an employee may appear extremely busy, but not be contributing at all toward the goals of the organization. An example is the employee who manually reviews completion of every form and procedure, rather than supporting automation of the review. The supervisor may conclude the employee is very committed to the organization and works very hard, thus deserving a very high performance rating. ALIGNS ORGANIZATIONAL ACTIVITIES AND PROCESSES TO THE
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GOALS OF THE ORGANIZATION:Performance management identifies organizational goals, results, needed to achieve those goals, measures of effectiveness or efficiency (outcomes) toward the goals, and means (drivers) to achieve the goals. This chain of measurements is examined to ensure alignment with overall results of the organization. CULIVATES
SYSTEM-WIDE,
LONG-TERM
VIEW
OF
THE
ORGANIZATION:Richard A. Swanson, in performance Improvement Theory and Practice (Advances in Developing Human Resources, 1, 1999), explains an effective performance improvement process must follow a system-based approach while looking at outcomes and drivers Otherwise, the effort procedures a flawed picture. For example, lying off people will likely produce short-term profit. However, the organization may eventually experience reduced productively resulting in long-team profit loss. PRODURES MEANINGFUL MEASUREMENTS:These measurements have a wide variety of useful applications. They are useful in benchmarking, or setting standards for comparison with best practices in other organizations. They provide consistent basis for comparison during internal change efforts. They indicate results during improvement efforts, such as employee training, management development, quality programs, etc., they help ensure equitable and fair treatment to employees based on performance.
ROLE OF APPRAISALS IN PERFORMANCE MANAGEMENT Performance management is a continuous process. Appraisals are periodic activities. Management is a dynamic process while appraisals are static. Appraisals are a part of performance management. If the management involves improvement, the moment you assess where we stand there is an appraisal taking place. Therefore without some form of appraisal management becomes difficult. Appraisals do not mean reducing the performance of individuals and dyads or teams to a five-point scale or a number. It is the reducing of annual performance into a number and equating one number with
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another that has created havoc in managing performance of in appraisals. Numbers generated from the appraisal process are not comparable across function, levels, departments and organizations. This is because the scales are not calibrated and equated. Some use liberal scales, some use conservative scales, and some use no scales but merely feeling. It is this lack of calibration and treating the incomparable as comparable that has created havoc. Performance management with performance appraisal should lead to increased performance. However, in most organizations, performance appraisals have lead to decreased performance. This happens particularly when appraisals are linked to rewards and when fewer people are rewarded than those expecting them. Those who are not rewarded get demotivated. If those who expect to be rewarded exceed the number of those who actually get rewards, the net outcome of performance appraisal may be negative. If people continue to perform in spite of appraisals and they do not have a positive attitude to appraisals, then the organization is spending more psychological energy. The effort should be to make the performance management process more effective and productive using appraisal systems. Appraisal systems help managers manage their performance. They should be seen by line managers as aids for performance management. Manager should not be overwhelmed with appraisals and appraisal outcomes and ignore the most important aspects of performance managementperformance improvements and competency building. This happens when the concerns get focused on appraisals rather than improvements or on ratings and rewards rather than performance enhancement and development. Managers need to learn to enjoy the performance management process itself as it occurs the year and is not blocked by appraisals as they occur once in a while. Performance management system with an appraisal component built into them should mean improved performance, more motivated people and more competent people.
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STATEMENT OF THE PROBLEM The study is conduced to analyze the effective performance management system and to know how it is linked with the employee and organizational developmental programs. OBJECTIVES OF THE STUDY A) PRIMARY OBJECTIVES To study the effectiveness of performance management system and its practical application in JKTYRE. To study how performance management system helps in individual performance development. Understand the role that direct supervisors play in the designing of development plan. To study the performance management system based on decisions like promotion, increments, rewards dismissal etc., To know steps taken by management to improve the employee performance. To find out whether the employees are aware of performance management system and if they are aware then up to what extent they are satisfied with existing performance management system. How can companies use performance management as an effective tool to achieve organizational effectiveness and efficiency? B) SECONDARY OBJECTIVES To observe the work environment in organization. To get experience and expertise in making projects. To enhance my communication skills.
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To increase my confidence. SCOPE OF THE STUDY: The study helps to understand the existing performance management system in JK TYRE. It helps management and me to find weather the employees are aware of performance management system. It helps to know to what extent employees are satisfied with existing performance management system. It can be helpful to study performance management system helps in individuals performance development. The study will help to know the important of performance management system. RESEARCH METHODOLOGY A. INTRODUCTION: Research methodology is the systematic way to solve the research problem. It gives an idea about various steps adopted by the researcher in a systematic manner with an objective to determine various manners. Success of any study depends upon the methodology adopted that is the techniques or the way to gather information from different sources. Hence, primary plan is very important to any field investigation or research study As organization consists of more than 2000 employees it is not easy to analyze all employees. So simple random sampling methodology is used for data collection. In JK TYRE ltd performance management system is applicable only for managerial level so the focus is on management cadre staff only. For excellent and effective study the data has been collected by both ways that is primary data and secondary data.
B.
SAMPLING METHOD:
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JK TYRE LTD consists more than 2000 employees out of which 150 employees are applicable for the appraisal. So sample size is of 20% which includes randomly selected employees. C. SOURCES OF DATA:
1.
PRIMARY DATA COLLECTION: A set of questionnaire had been prepared to gather the information related to the subject from the employees. Personal interview were conducted to get more information. Information is also collected by observing the employees.
2.
SECONDARY DATA COLLECTION: Data has been collected from organizations various documents from HR department. The process of data collection in further supplemented by various books and web-sites to get more information.
LIMITATIONS OF STUDY:1. Time period to be the major limitation. 2. Due to lack of time, the study is confined only to the few employees. 3. The area of study is limited to J K TYERS & INDUSTRIES only. 4. Fear among the employees to express their feelings results as a psychological barrier in getting the accurate analysis. 5. Due to confidentiality of the data few data could not be collected relevant to topic.
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CHAPTER-2 PERSONAL LEARNING ANALYSIS OF EXISTING SYSTEM

As a result of this project entitled, PERFORMANCE MANAGEMENT SYSTEM, I was able to acquire knowledge pertaining to human resource as a part of an organization as a whole. This two months journey through JK TYRES ltd has given me knowledge on various aspects of employee with respect to their performance. The Learning I had in JK TYRE is as follows. 1. PERFORMANCE MANAGEMENT SYSTEM IN JK TYRE LTD OPERATE IN TWO PARTS,
PART A- PERFORMANCE PLANNING AND PERIODIC REVIEW WITH FEEDBACK (For this the Appraisal year will coincide with the Financial Year of company)
PART B- POTENTIAL ASSESSMENT AND DEVELOPMENT PLANNING (This will be done in six monthly reviews. The aim is more serious attention to the individual development planning. Based on this and Business needs the Annual Training Plan will be developed for approval and implementation during the following year) 2. The formats of Part A and Part B are enclosed. 3. It is common for Part A for all levels of MCS. 4. Part B is separate for (L1, L2, L3) and (L4, L5). 5. Desired goal setting schedule Weeks before start of financial year. Business Heads Goals are discussed, finalized and signed off between Directors and Business Head, in the Performance Management form ensuring alignment with Strategic Business Plans and Budget
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6. HRD Persons to devote time exclusively and with the highest priority during Target Setting and Six Monthly and Yearly reviews. Someone from HRD preferably a designation above the Appraise must personally be present in each session between the Appraiser and Appraise to facilitate the same and ensure that this happens and done timely. During their annual planning. It is desirable that HR persons do not schedule other major activities during one and half months each for-Goal setting, Six monthly and Annual Reviews. 7. As soon as possible, system should be in place to communicate annual training plan to each MCS (Management Cadre Staff) in writing. 8. Transparency and Rating during Yearly review:After lot of debate it was decided that the scoring by the appraiser is not to be shared immediately with appraise during the yearly review (even through to promote transparency and fairness scoring should be shared). The overall rating to be communicated to appraise only after the review has moderated and force fit is decided. This is to avoid controversies, heartburns at time loss of face to appraiser because of change of initial scoring. 9. Distribution of Appraisal Rating:It is Concern for liberal and tight raters has been expressed. Bell curve distribution helps in the problem, apart from better performers being spotted, making it feasible to reward their better. 1. Four clusters with no label attached, is in which all ratings may fall, in a Department having 10 MCS, as below: Clusters % of MCS:Clusters % of MCS
Cluster 1 Cluster 2 Cluster 3
For top 10-15% For next 30-40% For next 40-50%
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Cluster 4
For bottom 10%
Within Above Range, business heads should lay down the following guidelines. During increments each business to decide the differential between cluster 1 and cluster 3, Conservative strategy is: If normal increment in x for cluster 3, the cluster 1 is given 2x. Some comings are going 3x and above. This has to be carefully done to with the Team Spirit. As the performance management system becomes more robust and is perceived to be Fair and Just larger differential will acceptable to MCS and are recommended. In Consequence Management for bottom performers, lowers than Normal increment counseling and ultimate existence in case of non-adequate improvement is recommended. Normally exist is not forced during first year of bottom performers to give some time for improvement. More than two years is all so not recommended. 2. for department smaller than 10; the nearest distribution pattern to be brought in by HOD (with half in top 2 clusters and half in bottom 2 clusters), in consultation with the appraisers. Finally the unit head or designated executives in HO to bring a few small departments in pattern of prescribed distribution. 10. Role of Line-Superior and a Functional superior in Appraisal: The present system needs to be stream lined, as detailed below: 10.1 Line superior and functional superior to jointly do target setting, as well as performance counseling, where geographical setting is a problem, advance planning for visits can help. Failing this use of email should be there between the line superior who should initiate and the functional superior. 10.2 Following are given as described examples. IN each company the HR head should get clarification from the business head will joint set target and review preference.
Position
Appraiser(Line Superior)
Functional Superior
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Manager(Works A/cs Manager (HRD) Manager (Technical) Regional Customer Service/Tech.Service
GM (Comml-Works) Line Superior at Works Line Superior at Works Superior
Corporate Head (A/cs) Corporate Head (HRD) Corporate Head (Tech)
Head- Line
in Corporate Head (Cust. Service)/Tech.Service
Sales/Mktg.
11. For those joining mid-year-fresh or on transfer it will the responsibility of the appraiser and the concerned HR person, that KRAs and target setting for the employee gets done within one month of the joining for the rest of the year. 12. If due to some business exigencies, some targets need to be reviewed. The same can be recorded in the space provided under- six monthly review and Revised weight ages assigned. 13. Identified strength to be leveraged by enlarging job responsibility and special assignments. These will also motivating to the person.
THE OBJECTIVES OF THE PERFORMANCE MANAGEMENT SYSTEM To manage performance and align individual objectives to business objectives. To help Appraisee to give his/her best performance by focusing on major value adding results. To promote objectivity in Performance Assessment and Rewards. To help him/her become aware of his/her strengths and to build on these. Also to bring some areas for improvement to his/her attention.
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PERFORMANCE MANAGEMENT SYSTEM PROCESS FOLLOWED IN JK TYRE: Performance Management system process has been designed in line with the overall company objective of building an organization where individual aspirations are congruent with organizational goals of profitability, growth and leadership The following points briefly outline the process: The employee and the manager shall discuss, agree and document the individual objectives/Key Result Area (KRA) annually, based on the plan/budget of the unit/department/region which will be in line with the plan/budget of the company for the year. The KRAs are maintained in electronic media. This will be followed by a HALF YEARLY review between the manager and the employee which enable them to revise and/or update the targets as well as provide opportunity to the employee to take corrective action. This will be documented in the electronic media. Employee shall submit his own report outlining his achievements for the year and highlighting his results vis--vis the objectives/Key Result Areas for the year. Based on the Employee Annual Report and his observations, immediate manager conducts performance review discussion with the employee and provides his observations on the comments of appraise on his own performance. The performance review discussion shall be carried on in the presence of a HR Facilitator, nominated by the HR Department. After assessment of performance of the appraisee, the appraiser award scores against each KRA and indicates performance cluster level of the appraisee in line with corporate guidelines. At the meeting of all BU/SSU heads organized by HR department, the overall performance of an employee is reviewed and his career and individual development plan for the employee chalked out. After the performance appraisal meeting, HR department sends the performance appraisal from back to the manager who discusses it with the employee, and
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jointly they commit to the developmental plan and Key Result Areas for the Next Year.
ROLE OF AN APPRAISEE/APPRAISER/REVIEWER AND MEMBER OF APPRAISAL COMMITTEE. The success of this key employee development process depends to a great extent on the sincerity of employees towards carrying out the following roles: As an appraise in providing honest information during self evaluation, in receiving guidance needed to successfully achieve personal career goals, in being open to critical assessment which would enable them to grow, obtain information about the expectations of both his superior and the company. As an appraiser in providing objective and sincere feedback to an appraisee, by taking keen interest in the growth prospects of each subordinate working with them, complimenting, the appraise on his accomplishments and reinforcing desirable performance and building teamwork by orienting individual talents and efforts towards company goals. As a reviewer by ensuring objectivity and fair play. As a member of the appraisal committee by ensuring equity and fair play in the appraisal process and guiding the preparation and implementation of standards in different functional areas.
IN GENERAL: Performance review should primarily be taken as a forum for employee development where by the appraiser discusses the appraisees progress and performance. It should not be taken as a mere opportunity for discussing issues related to the increase in base salary or promotions which depends on various contextual factors in addition to performance and is at the discretion of the company. Performance Management System shall be carried out as per HO guide lines.
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HRD will facilitate the half yearly and yearly performance review discussions, by nominating HR facilitators, who will facilitate performance review discussion.
2.2 INTERPRETATION OF RESULTS The interpretation is based on the feedback received from the employees through questionnaire, observation and answers received from employees during personal interview which were conducted during the study period. The following tables and graphs interpret the result of the study. 1. Are you aware of performance management system in your organization? TABLE: 1 RESPONSES YES NO TOTAL SAMPLE OBSERVATION 20 0 20 PERCENTAGE 100 0 100
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GRAPH NO:B-2.1
0
YES NO
20
INTERPRETATION: All the employees are aware of the performance management system.
2. Are you involves in setting your functional goals? TABLE: 2 RESPONSES YES NO TOTAL SAMPLE OBSERVATION 19 1 0 PERCENTAGE 95 5 100
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GRAPH NO:-2.2
1
YES NO 19
INTERPRETATION: Employees are involved in setting the functional goals which are known as Key Result Area (KRA) It was found that too little attention is paid in communicating performance targets.
3. Are your goals and performance linked with the department and organizational goals? TABLE-3 RESPONSES YES NO TOTAL SAMPLE OBSERVATION 19 1 0 PERCENTAGE 95 5 100
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GRAPH NO:-2.3
1
YES NO
19
INTERPRETATION: Most of the employees goals and performance is linked with the departmental and organizational goals, which help the organization to achieve its target with the support of employees. Few of them feel that their departmental and organizational goals does not match.
4. Which type of appraisal is adopted in this organization? Table-4 RESPONSES 360* APPRAISAL METHOD GRADING METHOD FORCED 0 0 0 OBSERVATION 20 PERCENTAGE 100
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DISTRIBUTION METHOD TOTAL SAMPLE 20 100
GRAPH NO:-2.4
0
360* APPRAISAL METHOD GRADING METHOD 20 FORCED DISTRIBUTION METHOD
INTERPRETATION: Currently, the organization is implementing 360* appraisal method for their performance management.
5. According to you who should conduct the performance appraisal? Table-2.5 RESPONSES DIRECT SUPERVISOR HR DEPARTMENT SELF,PEERS AND SUBORDINATE OBSERVATION 13 5 1 PERCENTAGE 65 25 5
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ALL OF THEM TOTAL
1 20
5 100
GRAPH NO:-2.5
1 1
DIRECT SUPERVISOR 5 HR DEPARTMENT SELF,PEERS AND SUBORDINATE 13 ALL OF THEM
INTERPRETATION: Most of the employees believe that along with the self appraisal, direct superior is appropriate for the appraisal as he is more aware regarding the work and performance of his subordinates. Employees also want the HR Department to be involved in the appraisal.
6. What is the time interval of performance appraisal? Table-2.6 RESPONSES QUARTERLY APPRAISAL SYSTEM OBSERVATION 1 PERCENTAGE 5
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HALF YEARLY APPRAISAL SYSTEM ANNUAL APPRAISAL SYSTEM TOTAL
20
15
75
20
100
GRAPH NO:-2.6
16 14 12 10 8 6 4 2 0 1 QUARTERLY APPRAISAL HALF YEARLY APPRAISAL ANNUAL APPRAISAL SYSTEM SYSTEM SYSTEM 4 15 GRAPH NO:-2.6
INTERPRETATION: Organization implemented Annual System to motivate employees. Transition has taken place from Annual Appraisal System to Half Yearly Appraisal System to increase their efficiency to give their best.
7. Does your company have fair appraisal system? Table:- 2.7 RESPONSES YES OBSERVATION 16 PERCENTAGE 80
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NO TOTAL
4 20
20 100
GRAPH NO:- 2.7
YES NO
16
INTERPRETATION: Most of the employees are in the fewer in the performance management system But they want to develop trust between employees and the system
8. Does management provide feedback regarding your performance appraisal? Table no-2.8 RESPONSES OBSERVATION PERCENTAGE
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YES NO TOTAL
18 2 20
90 10 100
GRAPH NO:-2.8
2
YES NO 18
INTERPRETATION: Concerned HODs and direct superiors provide the feedback to the employees regarding their performance and appraisal results. Similarly, the employees expect the feedback regarding the appraisal results from their HODs along with the HR Department after the appraisal process.
9. Does the appraisal feedback help you in improving your performance? Table-2.9
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RESPONSES YES NO TOTAL
OBSERVATION 16 4 20
PERCENTAGE 80 20 100
GRAPH NO:- 2.9

4
YES NO 16
INTERPRETATION: Timely feedback is being provided to the employees by their superior. According to the employees the feedback provided by their superior i.e., appraiser help them to know their by help them in improving their performance. Feed back helps the employees to know; *How much they are performing? *How well they perform it?
10. Does your direct supervisor motivate you and help you in improving performance?
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Table-2.10 RESPONSES YES NO TOTAL OBSERVATION 19 1 20 PERCENTAGE 95 5 100
GRAPH NO:- 2.10

1
YES NO
19
INTERPRETATION: It was good to found that the superiors motivate and help the employees in all possible ways to improve their performance and acquire new skills and knowledge.
11. Is your performance is linked with your development plans such as promotion, reward, incentives etc?
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Table no-2.11 RESPONSES YES NO TOTAL OBSERVATION 19 1 20 PERCENTAGE 95 5 100
GRAPH NO:- 2.11

1
YES NO
19
INTERPRETATION: Yes, it is linked with the employees development plans such as promotion, reward and incentives. After considering the Performance Appraisal Results decision regarding the promotion are been taken by the HR department.
12. Does the management take action on the basis of your appraisal report to improve your performance?
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Table- 2.12 RESPONSES YES NO TOTAL OBSERVATION 15 5 20 PERCENTAGE 75 25 100
GRAPH NO:- 2.12
YES NO
15
INTERPRETATION: Management takes action on the basis of appraisal report to improve your performance. But it was found that too much attention is given towards review and control and not enough towards advice and improvement.
13. is the required training and education is provided by the management for your personal development?
Table- 2.13 RESPONSES YES NO TOTAL OBSERVATION 18 2 20 PERCENTAGE 90 10 100
GRAPH NO:- 2.13

2
YES NO 18
INTERPRETATION: Management always tries to provide the required training programs as prescribed by the concerned department of the employees. Both on-the-job and off-the-job training are provided with the help of internal and external trainers. Due to some problems all the training programs prescribed by the concerned department cannot be provided by the management.
14. Are you satisfied with the training programs provided by your organization? TABLE NO-2.14
OBSERVATION 17 03 20
GRAPH NO:- 2.14

3
YES NO
17
INTERPRETATION: Most of the employees are satisfied with the standard of trainings provided to them. All the training programs prescribed by the concerned department especially external are not provided by the management so some of the employees are not satisfied.
15. Does performance management system help in self development? TABLE NO- 2.15
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GRAPH NO:- 2.15

1
YES NO
19
INTERPRETATION: According to the employees the performance management system helps them in setting their goals and to know their level of achievement along with their strengths and weakness which help them in personal development. Performance Management System also results in providing training to employees which promotes self development. Employees agree that Performance Management System results in personal development.
16. What kind of rewards is made available for your good performance? TABLE NO-2.16
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RESPONSES MONETARY NON-MONETARY PROMOTION TOTAL
OBSERVATION 05 02 13 20
PERCENTAGE 25 10 65 100
GRAPH NO:- 2.16
MONETARY 2 13 NON-MONETARY PROMOTION
INTERPRETATION: Due to consideration is given to rewarding the performance, by way of monetary benefits and promotions etc. As a typical human character the employees are not satisfied with the present reward system
17. Are you satisfied with the existing Performance Management System? TABLE NO- 2.17
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GRAPH NO:- 2.17

6
YES 14 NO
INTERPRETATION: Employees are not fully satisfied with the existing Performance Management System Employees expect more transparency in the system.
18. Does Performance Management System help managers to get more insight about subordinates?
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TABLE NO- 2.18 RESPONSES YES NO TOTAL OBSERVATION 18 02 20 PERCENTAGE 90 10 100
GRAPH NO:- 2.18

2
YES NO 18
INTERPRETATION: Managers and employees also believe that Performance Management System results in frequent meetings of employees and their superior managers which help the managers to get closer to the employees and know more about them. Performance appraisal also helps the managers to get more insight about subordinates.
19. Does Performance Management help in reducing communication gab between employees and management?
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GRAPH NO:- 2.19
YES NO
15
INTERPRETATION: As Performance Management System requires frequent meetings and conservation between employees and managers, so it results in reducing communication gap between employees and the management
20. Does Performance Management System result in making employees more competent?
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TABLE NO- 2.20
GRAPH NO:- 2.20

3
YES NO 17
INTERPRETATION: Employees believe that up to some extent Performance Management System results in making employees more competent.
21. Does Performance Management System motivate you in achieving superior job performance?
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GRAPH NO:- 2.21

6
YES 14 NO
INTERPRETATION: According to employees, Performance Management System plays a major role to achieve their superior job performance. Even through majority of them agree that the Performance Management System is essential but few of them feel that it is not the cause for the superior job performance.
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22. Please tick three suggestions given below to improve the existing performance management system if you feel so Half yearly appraisal system against annual appraisal system Objective assessment International exposure Skill based training programmed ( ( ( ( ) ) ) )
GRAPH NO:- 2.22

HALF YEARLY APPRAISAL SYSTEM AGAINST ANNUAL APPRAISAL SYSTEM OBJECTIVE ASSESSEMENT
20
20
14
INTENATIONAL EXPOSURE 17 SKILL BASED TRAINING PROGRAMMED
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FINIDINGS AND SUGGESTIONS 2.3 FINDINGS:After visiting to the JK Tyre and interacting with employees of various department, observation and personal interviews which were conducted during the study period, I tried to suggestions regarding performance management system. The following findings are based on my observation during the study period. All the employees are aware of the performance management system. Too little attention is paid in communicating performance targets. Self appraisal method is used in the organization but it was found that appraisal method differs with the department. Most of the employees believe that along with the self appraisal direct superior is appropriate for the appraisal as he is more aware regarding the work and performance of his subordinates. One thing I came to understand that it is difficult to evaluate performance of employees in service department as compared to technical work department. Employees believe that performance management system help them in improving personal development. According to the employees the performance management system helps them in setting their goals and to know their level of achievement along with their strengths and weakness which help them in personal development. It was good to found that the superiors motivate and help the employees in all possible ways to improve their performance and acquire new skills and knowledge. Concerned HODs and direct superiors provide the feedback to the employees regarding their performance and appraisal results, similarly the employees expect, the feedback regarding the appraisal results from their HODs along with the HR department after the appraisal process. Management always tries to provide the required training programs as prescribed by the concerned department for the development of the employees. Both on-the-job and off-the-job training are provided with the help of interval and external trainers.
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Due to consideration is given to rewarding the performance, by way of monetary benefits and promotions etc, as a typical human character the employees are not satisfied with the present reward system. Employees are not fully satisfied with the existing performance management system. Employees expect more transparency in the system.
2.4 SUGGESTIONS:Suggestions are based on the areas in which the management and HR department should concentrate more to make the present performance management system more effective. Some of this suggestions are been given by the employees on the basis of their personal experience. The overall process and purpose of performance management system should be cleared and well communicated to the employees. It is important to set and agree clear goals, with task to be completed by specified date and standards to be achieved. Supervisors meeting should be formally conducted between the employees and their line managers. Let this type of meetings be private and uninterrupted at a regular time interval. Through performance appraisal is annually conducted it should be reviewed half yearly in the form of documentation. Management should try to adopt the latest appraisal techniques such as MBO or 360 degree feedback for generating complete and reliable feedback. On the basis of appraisal result the management should take necessary steps to improve the efficiency of the employees. Management should provide pre-planned training programs as well as special training if possible on the demand of the employees for their personal development. Management must provide attractive rewards which can satisfy the employees and be strong enough to motivate the individuals to perform well. The level of trust between employees and system should be increased by encouraging maximum involvement of employees in management decisions.
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Performance management system should be more transparent. CHAPTER:3 CONCLUSIONS AND RECOMMENDATIONS 3.1 CONCLUSIONS: Performance management is about getting the best from the staff in order to achieve the best fort the organization. When staff is clear about what they need to do, what standards they are expected to achieve and feel supported in their job. The information collected by a performance management system is most frequently used for performance feedback, and the identification of employees strengths and weakness and in decision making. Performance management system promotes good employee relation by providing opportunities for timely feedback. Performance management system communicates organizational mission, fulfills responsibilities to organizational members, enables employees to manage own performance and manages expectations. Performance is measured against expectation and rewards on the job achievement. Improved individual performance assures the success of the organization. Performance management system provides a system by which employees can develop on the job and managers can develop coaching and counseling skills. Performance management system encourages open discussion on employee development and career prospects. So we can conclude thatPerformance management system is a continuous process of identifying, measuring and developing the performance of individuals and teams and aligning performance with the strategic goals of the organization. 3.2 RECOMMENDATIONS: Performance management system should be made available for all the employees at all levels of the unit.
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HR Department must try to be involved in the appraisal process of all departments. Personal problems can affect the employees performance so; the line managers along with the HR managers should try to know the personal problems faced by employees, provide counseling and try to solve them. Performance information should be used to improve performance and not to just report performance for accountability. Manager should encourage performance improvement with increased analysis, practical experiments and knowledge sharing. Line managers should be confident to point the strength and weakness of the employees. He should communicate with employees regarding How much they are doing? How well are they doing it? What difference does it makes?
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ANNEXURE QUESTIONNAIRE ON PERFORMANCE MANAGEMENT SYSTEM (PMS)

Dear respondents, I MANJUSHREE H K studying in 2nd year MBA 4th semester, from Karnataka Open University of Mysore, as a part of my curriculum a project has undertaken on PERFORMANCE MANAGEMENT SYSTEM in JK TYRES, MYSORE under the guidance of Mr. Jeevan Kumarmanager-HR I request you to devote some of your precious time and help me in gathering required information for my project by responding the provided questionnaire which would help me in completing my project successfully. Thanking you, PLEASE TICK TO THE APPROPRIATE ANSWERS EMPLOYEE NAME Age Education Qualification Department Work designation Work experience : : : S.S.L.C ( ) PUC ( ) Graduate ( ) Post graduate ( ) : : : QUESTIONNAIRE 1. Are you aware of performance management system in your organization? a) Yes ( ) b) No ( )
2. Are you involved in setting your functional goals? a) Yes ( ) b) No ( )
3. Are your goals and performance linked with the departmental and organizational goals? KSOU, Mysore Page 96
a) Yes ( )
b) No ( )
4. Which type of appraisal is adopted in this organization? a) 360* appraisal method ( ) b) Grading method ( )
c) Forced Distribution Method ( ) 5. According to you who should conduct the performance appraisal? a) Direct supervisor ( ) b) HR Department ( ) ( )
c) Self, Peers and Subordinate d) All of them 6. What is the time interval of performance appraisal?
a) Quarterly Appraisal System ( ) b) half yearly Appraisal System ( ) c) Annual Appraisal System ( )
7. Does your company have fair appraisal system? a) Yes ( ) b) No ( )
8. Does management provide feedback regarding your performance appraisal? a) Yes ( ) b) No ( )
9. Does management provide feedback help you in improving your performance? a) Yes ( ) b) No ( )
10. Does your direct supervisor motivate you and help you in improving performance? a) Yes ( ) b) No ( )
11. Is your performance is linked with your development plans such as promotion, reward, incentives etc? a) Yes ( ) b) No ( )
12. Does the management take action on the basis of your appraisal report to improve your performance?
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a) Yes ( )
b) No ( )
13. is the required training and education is provided by the management for your personal development? a) Yes ( ) b) No ( )
14. Are you satisfied with the training programs provided by your organization? a) Yes ( ) b) No ( )
15. Does performance management system help in self development? a) Yes ( ) b) No ( )
16. What kind of rewards is made available for your good performance? a) Monetary ( ) c) Promotion ( ) b) Non-monetary ( ) c) Both A and C ( )
17. Are you satisfied with the existing performance management system? a) Yes ( ) b) No ( )
18. Does performance management system help mangers to get more insight about subordinate? a) Yes ( ) b) No ( )
19. Does performance management help in reducing communication gap between employees and management? a) Yes ( ) b) No ( )
20. Does performance management system result in making employees more competent? a) Yes ( ) b) No ( )
21. Does performance management system motivates you in achieving superior job performance?
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a) Yes ( )
b) No ( )
22. Please tick three suggestions given below to improve the existing performance management system if you feel so a) Half yearly appraisal system against annual appraisal system c) Objective assessment d) International exposure e) Skill based training programmed ( ( ) )
( ) ( )
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BIBLIOGRAPHY
References: Internet: 1. 2. 3. 4. 5. www.citehr.com wikipedia.com www.jktyre.com www.google.co.in www.economictimes.com
Other Resources: a. b. c. Human Resource Management: Dipak Kumar Bhattacharyya Human Resource Management: V S P Rao J K Tyre and Industries Records
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