A Major Project Report On

Performance Appraisal

ACKNOWLEDGEMENT

It is my pleasure to be indebted to various people, who directly or indirectly contributed in the development of this work and who influenced my thinking, behavior, and acts during the course of study. I express my sincere gratitude to .., worthy Principal for providing me an opportunity to undergo summer training at .. I am thankful to Mr. for his support, cooperation, and motivation provided to me during the training for constant inspiration, presence and blessings. I also extend my sincere appreciation to Mr/Ms. who provided his valuable suggestions and precious time in accomplishing my project report. Lastly, I would like to thank the almighty and my parents for their moral support and my friends with whom I shared my day-to-day experience and received lots of suggestions that improved my quality of work.

(Name of the student)

Chapter1 IntroductiontoProject

INTRODUCTIONTOPERFORMANCEAPPRAISAL
In the business world investment is made in machinery, equipment and services. Quite naturally time and money is spent ensuring that they provide what their suppliers claim. In other words the performance is constantly appraised against the results expected. When it comes to one of the most expensive resources companies invest in, namely people, the job appraising performance against results is often carried out with the same objectivity. Each individual has a role to play and management has to ensure that the individuals objectives translate into overall corporate objectives of the company. Performance Management includes the performance appraisal process which in turn helps identifying the training needs and provides a direction for career and succession planning.

Understanding Performance Management

PERFORMANCEMANAGEMENT

CORPORATEGOALS

DETERMINEINDIVIDUAL OBJECTIVESLINKEDTO CORPORATE GOALS ENSURERESPONSIBILITYAND ACCOUNTABILITY PERFORMANCEAPPRAISAL

PERFORMANCELINKEDINCREMENTS/ INCENTIVES/REWARDS

WhatisPerformance?

Performance is synonymous with behaviour; it is what people actually do. Performance includes those actions that are relevant to the organizational growth and can be measured in terms of each individuals proficiency (level of contribution). Effectiveness Performance refers to the evaluation of results of performance that is beyond the influence or control of the individual.

How is Performance managed?

Good performance by the employees creates a culture of excellence, which benefits the organization in the long run. The activity includes evaluation of jobs and people both, managing gender bias, career planning, and devising methods of employee satisfaction etc. the efforts are to make to generate the individuals aspirations with the objectives of the organization. Organization has to clear the way of career advancements for talented and hardworking people. Fear of any kind from the minds of the employees should be removed so that they give best to their organization. Allow free flow of information. Communication network should be designed in such a way no one should be allowed to become a hurdle. This enables the managers to take correct decisions and that too quickly.

WhyPerformanceAppraisal?

Todays working climate demands a great deal of commitment and effort from employees, who in turn naturally expect a great deal more from their employers. Performance appraisal is designed to maximize effectiveness by bringing participation to more individual level in that it provides a forum for consultation about standards of work, potential, aspirations and concerns. It is an opportunity for employees to have significantly greater influence upon the quality of their working lives. In these times of emphasis on quality, there is a natural equation: better quality goods and services from employees who enjoy better quality goods and services from their employers.

Performance appraisal must be seen as an intrinsic part of a managers responsibility and not an unwelcome and time-consuming addition to them. It is about improving performance and ultimate effectiveness.

Performance appraisal is a systematic means of ensuring that managers and their staff meet regularly to discuss post and present performance issues and to agree what future is appropriate on both sides. This meeting should be based on clear and mutual understanding of the job in question and the standards and outcomes, which are a part of it. In normal circumstances, employees should be

THEAPPRAISALOFPERFORMANCESHOULDBEGEAREDTO:
Improving the ability of the jobholder; Identifying obstacles which are restricting performance Agreeing a plan of action, that will lead to improved performance.

It is widely accepted that the most important factor in organization effectiveness is the effectiveness of the individuals who make up the organization. If every individual in the organization becomes more effective, then the organization itself will become more effective. The task of reviewing situations and improving individual performance must therefore be a key task for all managers. For appraisal to be effective, which means producing results for the company, each manager has to develop and apply the skills of appraisal
These are: Setting standards on the performance required, which will contribute to the specific objectives Monitoring performance in a cost effective manner, to ensure that previously agreed performance standards are actually being achieved on an ongoing basis Analyzing any differences between the actual performance and the required performance to establish the real cause of a shortfall rather than assume the fault to be in the jot holder. achievement of

Interviewing having a discussion with the jobholder to verify the true cause of a shortfall, a developing a plan of action, which will provide the performance, required Appraisal can then become a way of life, not concerned simply with the regulation of rewards and the identification of potential, but concerned with improving the performance of the company. The benefits of appraisal in these terms are immediate and accrue to the appraising manager, the subordinate manager/employee, and to the company as a whole.

DEFINITION
According to Flippo, performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of and assessing the performance of an employee during a given period of time.

Characteristics

It is a step by step process It examine the employee strengths and weaknesses Scientific and objective study Ongoing and continuous process Secure information for making correct decisions on employees

Objectives of Performance Appraisal

Performance Appraisal can be done with following objectives in mind:
1. To maintain records in order to determine compensation packages, wage structure, salaries raises, etc. 2. To identify the strengths and weaknesses of employees to place right men on right job. 3. To maintain and assess the potential present in a person for further growth and development. 4. To provide a feedback to employees regarding their performance and related status. 5. To provide a feedback to employees regarding their performance and related status.

6. It serves as a basis for influencing working habits of the employees. To review and retain the promotional and other training programme

AdvantagesofPerformanceAppraisal
It is said that performance appraisal is an investment for the company which can be justified by following advantages: 1. Promotion: Performance Appraisal helps the supervisors to chalk out the promotion programmes for efficient employees. In this regards, inefficient workers can be dismissed or demoted in case. 2. Compensation: Performance Appraisal helps in chalking out compensation packages for employees. Merit rating is possible through performance appraisal. Performance Appraisal tries to give worth to a performance. Compensation packages which include bonus, high salary rates, extra benefits, allowances and pre-requisites are dependent on performance appraisal. The criteria should be merit rather than seniority. 3. Employees Development: The systematic procedure of performance appraisal helps the supervisors to frame training policies and programmes. It helps to analyse strengths and weaknesses of employees so that new jobs can be designed for efficient employees. It also helps in framing future development programmes. 4. Selection Validation: Performance Appraisal helps the supervisors to understand the validity and importance of the selection procedure. The supervisors come to know the validity and thereby the strengths and weaknesses of selection procedure. Future changes in selection methods can be made in this regard. 5. Communication: For an organization, effective communication between employees and employers is very important. Through performance appraisal, communication can be sought for in the following ways: a. Through performance appraisal, the employers can understand and accept skills of subordinates. b. The subordinates can also understand and create a trust and confidence in superiors. c. It also helps in maintaining cordial and congenial labour management relationship. d. It develops the spirit of work and boosts the morale of employees.

All the above factors ensure effective communication. 6. Motivation: Performance appraisal serves as a motivation tool. Through evaluating performance of employees, a persons efficiency can be determined if the targets are achieved. This very well motivates a person for better job and helps him to improve his performance in the future.

PROCESS OF PERFORMANCE APPRAISAL

1.ESTABLISING PERFORMANCE STANDARDS:- The first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting the criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standard.

2.COMMUNICATING THE STANDARDS:-

Once set, it is the responsibility of the

management to communicate the standards to all the employees of the organization. The employee should be informed & standards should be clearly too explained. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators. 3.MEASURING THE ACTUAL PERFORMANCE:- The most difficult part of the process

is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate

techniques than of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather interfering in an employees work. 4.COMPAIRING THE ACTUAL WITH THE DESIRED PERFORMANCE:- The actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees performance. 5.DISCUSSING RESULTS:- The result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better. 6.MAKING DECISION:- The last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.

METHOD OF PERFORMANCE APPRAISAL

Numerous methods have been devised to measure the quantity and quality of employees job performance. Each of the methods discussed could be effective for some purposes, for some organizations. None should be dismissed or accepted as appropriate except as they relate to the particular needs of the organization or of a particular type of employees. Broadly, all the approaches to appraisal can be identified into (i) Traditional methods, and (ii) Modern methods. Each group has several techniques as shown in the figure below:Explanations of these methods are as follow:-

1. TRADITIONAL METHODS.
Confidential Reports

Introduction:- To maintain the report about his subordinates strengths, weakness, intelligence, attitude to work, sincerity, commitment, punctuality, attendance, conduct, character, friendliness. Methodology:- It is a Traditional method, under this method superior appraises his subordinates based on his observations, judgments and intuitions. The supervisor keeps his judgments not allow the report confidentially. In other words, the superior does not allow the employee to know the report and his performance.

Companies in which method are worked:- Though the confidential report is traditional method ,most public sector use these method such as Karnataka Soaps and Detergent Ltd(KSDL). Advantage:Employee behavioral traits are documented as and when they occur and make a PA process a continuous process. Provide documented during Appraisal. Disadvantage:Personal prejudice may prevail in some cases. Keeping maintaining confidentiality report is cumbersome job for managers.

PAIRED COMPARISION METHOD

Introduction:Thisapproachwasdesignedtomaketherankingprocesseasierforthesuperiorand
perhapsmorereliable,especiallywhentherearemanypeopletorank.

Methodology:ThePairedComparisonMethodpresentsthesupervisorwithaseriesofcardseach
ofwhichcontainsonlytwosubordinatesnames.Thesupervisoristhinaskedtochoosewhichofthese twopersonsisthehighperformer,finalrankingisthendeterminedbycountinghowmanytimesagiven employeewaschooseasthebetterperformer. ThenumberofcomparisonrequiredN(N1)/2 Wherenequalstonumberofpeopletoberanked.Thus,withonly10subordinatesasupervisorwillgo through10(101)/2or45pairofname.

Sampleformat:
Ratingcardsfilledoutbysupervisor ______LeslieMoore_________LeslieMoore_______LeslieMoore _______EddieDorsey ________TinaLittle _______ArtWillis _____TinaLittle _______ArtWillis ______TinaLittle ______EddieDorsey_______EddieDorsey________ArtWillis Finalranking: 1.TinaLittle. Advantage:When employee number is less. Simple to use Avoids central tendency and other problems. Disadvantage:Rating may still not be precise Time consuming. In this method employee are simply compared to each other on total performance rather than specific fob criteria. Pairedcomparisonrankingforemployeesinamarketingresearchunit. Employeestorank: LeslieMooreEddieDorsey TinaLittle ArtWillis

Companies using this method:-

1)

KOPRAN:-

Promoted by Parijat enterprises KOPRN currently an integrated health care

company, International pharmaceutical company extensively use this method to asses department wise workers. 2) NOANIC CHEMICAL INDUSTRIES LTD:- ( NOCIL) A Rubber chemical Division: Indias largest manufactures and suppliers of Rubber chemicals, they are know for world class product quality, use this tool to rank his employee from best to worst. 3)

OTIS elevator Co:- A wholly- owned subsidiary of united Technologys corporation is the
worlds larges manufacturer, installer and maintainer of elevators, escalators, for his highly skilled workforce to segregate from poor performer to good performer use this method.

4)

Godrej Soaps:- A well known manufacturer of soaps of various categories uses this method.

GRAPHICAL RATING SCALE

Introduction:- Graphical ration scale compares individual performance to an absolute standard. Methodology:- In this method judgments about performance are recorded on a scale. The appraisers
are supplied with printed form, one for each employee these forms contain a number of objectives, behaviors & trait based qualities and characters to be rated like quality & volume of work etc, and these form contain rating scales, the appraiser assigns the points to degree. These character are added up to find overall performance, the finally employee rate on the basis of total points assigned.Sample format 1

 1)SampleitemsinaGraphicratingscale.

Onascaleof15,ratetheemployee,
5Excellent,4Verygood,3Good,2Adequate,1Inadequate a)Thecommunicationskillsoftheemployeecanberatedas (1)(2)(3)(4)(5) b)Thejobknowledgeoftheemployeeis (1)(2)(3)(4)(5) Markagainstthestatementthatbestdescribestheemployeebehavior Isalwaysregularandpunctual() Isusuallyregularandpunctual() Is usually regular but not very punctual ( )

Sampleformat2
NameDepartment..Date. OutstandingGoodSatisfactoryFairUnsatisfactory Quantityofwork Volumeofacceptablework Undernormalconditions

Advantage:It easy to conduct. Disadvantage:Appraisee may mark only good character which leads to bias information. Another disadvantage is regarding the choice of employee behavior categories the important might ones get missed out and irrelevant ones may get include. Different people may interpret the written description in different ways

Companies in which they worked:-

1.National Aluminium Company limited (NALCO):- Field of its human resources is to attract competent persons with growth potential and develop their skills and capabilities. 2. Mphisis (call center):- uses this method along with 360 degree appraisal (source: Mr. .Manu Thripathi HR.manager, during student survey) in a congenial work and social environment through adequate opportunity for advancement. Methodology used:- For the collection of information pertaining to employees performance, communication of goals and review of result, a questionnaire having similar to graphic ration is used. 3.Birla Jute:- Which is the group of Birla corporation ltd, have 8 decades of experience in his two jute mills have a skilled work force for their appraisal it uses this method. 4.Kannappa Automobile, Lalbhag road, near Al- Ameen College:-which is an automobile product producers use graphic ration scale for the appraisal is his employee.

RANKING METHOD

METHOD

OR

COMPARATIVE

EVALUATION

Introduction:- The employees are ranked from best to worst on some characteristics. The rater first finds the employee with the highest performance and the employee with the lowest performance in the particular job category and rates the former as the best and latter as the poorest .Then the raters selects the next highest and next lowest and so non until he rates all the employee in that group. There are 3 commonly used methods of ranking, namely alternation, paired comparison and forces distribution. The first two methods are used when there is only a fiw employee to be ranked, where as the forced distribution method is used in large companies. Alternation Method:-In this method the appraiser ranks his entire employee from most valuable to lest valuable, based on their performance and contribution to organization objectives. This method is simply assigning rank to individual based on his past performance and potential of development. Sample format: ColumnI(Best)ColumnII(Worst) 1.. 2.. 3.. 4.. 5 . .

Chapter2 REVIEWOFLITERATURE

 Chapter3 Introduction

INTRODUCTION AutoMobileIndustry
Starting its journey from the day when the first car rolled on the streets of Mumbai in 1898, the Indian automobile industry has

demonstrated a phenomenal growth to this day. Today, the Indian automobile industry presents a

galaxy of varieties and models meeting all possible expectations and globally established industry

standards. Some of the leading names echoing in the Indian automobile industry include Maruti Suzuki, Tata Motors, Mahindra and Mahindra, Hyundai Motors, Hero Honda and Hindustan Motors in addition to a number of others. During the early stages of its development, Indian automobile industry heavily depended on foreign technologies. However, over the years, the manufacturers in India have started using their own technology evolved in the native soil. The thriving market place in the country has attracted a number of automobile manufacturers including some of the reputed global leaders to set their foot in the soil looking forward to enhance their profile and prospects to new heights. Following a temporary setback on account of the global economic recession, the Indian automobile market has once again picked up a remarkable momentum witnessing a buoyant sale for the first time in its history in the month of September 2009. The automobile sector of India is the seventh largest in the world. In a year, the country manufactures about 2.6 million cars making up an identifiable chunk in the worlds annual production of about 73 million cars in a year. The country is the largest manufacturer of motorcycles and the fifth largest producer of commercial vehicles. Industry experts have visualized an unbelievably huge increase in these figures over the immediate future. The figures

published by the Asia Economic Institute indicate that the Indian automobile sector is set to emerge as the global leader by 2012. In the year 2009, India rose to be the fourth largest exporter of automobiles following Japan, South Korea and Thailand. Experts state that in the year 2050, India will top the car volumes of all the nations of the world with about 611 million cars running on its roads. At present, about 75 percent of Indias automobile industry is made up by small cars, with the figure ranking the nation on top of any other country on the globe. Over the next two or three years, the country is expecting the arrival of more than a dozen new brands making compact car models. Recently, the automotive giants of India including General Motors (GM), Volkswagen, Honda, and Hyundai, have declared significant expansion plans. On account of its huge market potential, a very low base of car ownership in the country estimated at about 25 per 1,000 people, and a rapidly surging economy, the nation is firmly set on its way to become an outsourcing platform for a number of global auto companies. Some of the upcoming cars in the India soil comprise Maruti A-Star (Suzuki), Maruti Splash (Suzuki), VW Up and VW Polo (Volkswagen), Bajaj small car (Bajai Auto), Jazz (Honda) and Cobalt, Aveo (GM) in addition to several others. History of the Automobile industry in India The economic liberalization that dawned in India in the year 1991 has succeeded in bringing about a sustained growth in the automotive production sector triggered by enhanced competitiveness and

relaxed restrictions prevailing in the Indian soil. A number of Indian automobile manufacturers

including Tata Motors, Maruti Suzuki and Mahindra and Mahindra, have dramatically expanded both their domestic and international operations. The countrys active economic growth has paved a solid road to the further expansion of its domestic automobile market. This segment has

in fact invited a huge amount of India-specific investment by a number of multinational automobile manufacturers. As a significant milestone in its progress, the monthly sales of passenger cars in India exceeded 100,000 units in February 2009. The beginnings of automotive industry in India can be traced during 1940s. After the nation became independent in the year 1947, the Indian Government and the private sector launched their efforts to establish an automotive component manufacturing industry to meet the needs of the automobile industry. The growth of this segment was however not so encouraging in the initial stage and through the 1950s and 1960s on account of nationalization combined with the license raj that was hampering the private sector in the country. However, the period that followed 1970s, witnessed a sizeable growth contributed by tractors, scooters and commercial vehicles. Even till those days, cars were something of a sort of a major luxury. Eventually, the country saw the entry of Japanese manufacturers establishing Maruti Udyog. During the period that followed, several foreign based companies started joint ventures with Indian companies. During 1980s, several Japanese manufacturers started joint-ventures for manufacturing motorcycles and light commercial- vehicles. During this time, that the Indian government selected Suzuki for a joint-venture to produce small cars. Following the economic liberalization in 1991 and the weakening of the license raj, several Indian and multi-national car companies launched their operations on the soil. After this, automotive component and automobile manufacturing growth remarkably speed-up to meet the demands of domestic and export needs. Experts have an opinion that during the early stages the policies and the treatment by the Indian government were not favorable to the development of the automobile industry. However, the liberalization policy and various tax reliefs announced by the Indian government over the recent past have pronounced a significantly encouraging impact on this industry segment. Estimates reveal that owing to several boosting factors, Indian automobile industry has been growing at a pace of about 18% per year. Therefore, global automobile giants like Volvo, General Motors and Ford have started looking at India as a prospective hot destination to establish and expand their operations.

Like many other nations Indias highly developed transportation system has played a very important role in the development of the countrys economy over the past to this day. One can say that the automobile industry in the country has occupied a solid space in the platform of Indian economy. Empowered by its present growth, today the automobile industry in the country can produce a diverse range of vehicles under three broad categories namely cars, two-wheelers and heavy vehicles. Exports of Automobile Industry Today, India is among the worlds largest producers of small cars. The New York Times has rated India as a very strong engineering base with an

incomparable expertise in the arena of manufacturing a number of low-cost, fuel-efficient cars has encouraged the expansion plans of the manufacturing facilities of a number of automobile leaders like Hyundai Motors, Nissan, Toyota, Volkswagen and Suzuki. On 22 February 2010, Hyundai motors exported its 10,00,000th car, the feat which was achieved by the firm in just over 10 years. Hyundai Motors is the largest passenger car exporter and the second largest car manufacturer in the country. In the similar lines, General Motors has announced its plans to export not less than 50,000 cars made in India by the year 2011. In yet another proposal, Ford Motors is to setup a manufacturing facility costing about US$500 million in India with an annual capacity of 250,000 cars. The firm has stated that the facility will play a major part in its strategic plan to make India a hub for its global production business. In yet another significant move, Fiat motors has stated that it will source a big volume of auto components from India worth about US$1 billion. In the year 2009, India overtook China by emerging as the fourth largest exporter of cars in Asia.

Various Segments of the Indian Automobile Industry Motor cycles manufacture makes up the major share in the twowheeler segment of the Indian automobile industry. About 50% of the motorcylcles are manufactured by Hero Honda. While Honda manufactures about 46% of the scooters, TVS produces 82% of the mopeds running on the Indian roads. About 40% of the three-wheelers manufactured in India are used for transporting goods with Piaggio manufacturing 40% of the vehicles sold in the Indian market. On the other hand, Bajaj has emerged as the leader in manufacturing three-wheelers used for passenger transport. The firm produces about 68% percent of the three wheelers used for passenger transport in India. The Indian passenger vehicle segment is dominated by cars which make up about 80% of it. Maruti Suzuki manufactures about 52% of passenger cars while the firm enjoys a complete monopoly in the manufacture of multi-purpose vehicles. In the utility vehicles segment Mahindra makes up a 42% share. Tata Motors is the leader in the Indian commercial vehicles market while it holds more than 60% share. Tata Motors also enjoys the credit of being the worlds fifth largest manufacturer of medium and heavy commercial vehicles. Potential of Indian Automobile Industry There is a very stiff competition in the automobile industry segment in India. This has helped many to realize their dreams of driving the most luxurious cars. During the recent past, a number of overseas companies have started grabbing a big chunk of the market share in both domestic and export sales. Every new day dawns in India with some new launches by active players in the Indian automobile arena. By introducing some low cost cars, the industry had made it possible for common men to buy cars for their personal use. With some innovative strategies and by adopting some alternative remedial measures, the Indian automobile industry has successfully come unaffected out of the global financial crisis. While the automobile industry in India is the ninth largest in the world, the country emerged as the fourth largest automobiles exporter on the globe following Japan, South Korea and Thailand,

in the year 2009. Over and above, a number of automobile manufacturers based in India have expanded their operations around the globe also giving way for a number of reputed MNCs to enthusiastically invest in the Indian automobile sector. Nissan Motors has revealed its prospective plans to export 250,000 vehicles produced in its India plant by the year 2011. General Motors has also come up with similar plans. During the current fiscal year, the Indian automobile industry rode high on the resurgence of consumer demand in the country as a result of the Governments fiscal stimulus and attractively low interest rates. As a result the total turnover of the domestic automobile industry increased by about 27 per cent. A reply produced in the Lok Sabha recently has quoted data from the Society of Indian Automobile Manufacturers and has revealed that the total turnover of the Indian automobile Industry in April-February 2009-10 was 1,62,708.77 crore. This is a remarkable achievement compared with the total revenue of Rs 1,28,384.53 crore reported during the same period of last fiscal year. Specifically, the segment of commercial vehicles witnessed the biggest jump in revenues by 31 per cent by reporting Rs 38,845.09 crore. During the same period, the passenger vehicle segment in the country witnessed a growth of 27 per cent over the last fiscal year by reporting a total revenue of Rs 76,545.96 crores. These figures imply a highly prospective road lying immediately ahead of the Indian automobile industry. Predictions made by Ernst and Young have estimated that the Indian passenger car market will have a growth rate of about 12 percent per annum over the next five years to reach the production of 3.75 million units by the year 2014. The analysts have further stated that the industrys turnover will touch $155 billion by 2016. This achievement will succeed in consolidating Indias position as the seventh largest automobiles manufacturer on the globe, eventually surging forth to become the third largest by the year 2030 behind China and the US.

The Automotive Mission Plan launched by the Indian government has envisaged that the country will emerge as the seventh largest car maker on the globe thereby contributing more than 10 percent to the nations $1.2-trillion economy. Further, industry experts believe that the nation will soon establish its stand as an automobile hub exporting about 2.75 million units and selling about a million units to be operated on the domestic roads.

Introduction to Maruti Suzuki

Maruti Suzuki India Limited (MSIL, formerly known as Maruti Udyog Limited) is a subsidiary of Suzuki Motor Corporation, Japan. MSIL has been the leader of the Indian car market for over two and a half decades. The company has two manufacturing facilities located at Gurgaon and Manesar, south of New Delhi, India. Both the facilities have a combined capability to produce over a 1.2 million (1,200,000) vehicles annually. The company plans to expand its manufacturing capacity to 1.75 million by 2013. The company offers a wide range of cars across different segments. It offers 15 brands and over 150 variants - Maruti 800, people movers, Omni and Eeco, international brands Alto, Alto-K10, A-star, WagonR, Swift, Ritz and Estilo, off-roader Gypsy, SUV Grand Vitara, sedans SX4, Swift DZire and Kizashi. In an environment friendly initiative, in August 2010 Maruti Suzuki introduced factory fitted CNG option on 5 models across vehicle segments. These include Eeco, Alto, Estilo, Wagon R and Sx4. In fiscal 2009-10 Maruti Suzuki became the only Indian company to manufacture and sell One Million cars in a year. Maruti Suzuki has employee strength over 8,500 (as at end March 2011)

In 2010-11, the company sold over 1.27 Mnvehicles including 1,38,266units of exports. With this, at the end of March 2011, Maruti Suzuki had a market share of 44.9 per cent of the Indian passenger car market. Maruti Suzuki's revenue has grown consistently over the years. (Rs. in Million) Year Net Sales Year Net Sales 2005-06 2007-08 2009-10 1,20,034 1,78,603 3,01,198 2006-07 2008-09 2010-11 1,45,922 2,03,583 3,61,282

The company is listed on Bombay Stock Exchange and National Stock Exchange.

Established in December 1983, Maruti Suzuki India Ltd. has ushered a revolution in the Indian car industry. This car is meant for an average Indian individual which is affordable as well as has elegant appeal. Maruti Suzuki India Ltd. is the result of collaboration of Maruti with Suzuki of

Japan. At this time, the Indian car market had stagnated at a volume of 30,000 to 40,000 cars for the decade ending 1983. This was from where Maruti took over. The company has crossed the milestone of becoming the first Indian company in March 1994, by manufacturing in totality one million vehicles. It is known for its mass-production and selling of more than a million cars. Maruti Suzuki India Ltd. is the India's largest automobile company which entered in the market with affirmed aim to render high quality fuel efficient and low cost vehicles.

Maruti Suzuki Cars

Looking for Maruti Suzuki cars in India, you have made the right choice. Maruti Suzuki is one of the best car companies in India and these Maruti Suzuki cars are very demanding in India. There are number of variants available in Maruti Suzuki cars. Each Maruti Suzuki Car Models has its different specifications, colors and fuel economy. If you have decided to buy Maruti Suzuki cars so you might be looking for Maruti Suzuki Cars Prices in India & like to read Maruti Suzuki car reviews. Reviews will help you in choosing your dream car.

Maruti Suzuki New Cars in India

Maruti 800 Maruti Alto Maruti Zen Estilo

Maruti 800 Photos Maruti 800 Reviews

Maruti Alto Photos Maruti Alto Reviews

Maruti Zen Estilo Photos Maruti Zen Estilo Reviews Maruti Versa

Maruti Wagon R

Maruti A-Star

Maruti Wagon R Photos Maruti Wagon R Reviews Maruti Omni

Maruti A-Star Photos Maruti A-Star Reviews

Maruti Versa Photos Maruti Versa Reviews

Maruti Ritz

Maruti Swift

Maruti Omni Photos Maruti Omni Reviews Maruti Swift Dzire

Maruti Ritz Photos Maruti Ritz Reviews Maruti Gypsy

Maruti Swift Photos Maruti Swift Reviews Maruti SX4

Maruti Swift Dzire Photos Maruti Swift Dzire Reviews Maruti Grand Vitara

Maruti Gypsy Photos Maruti Gypsy Reviews

Maruti SX4 Photos Maruti SX4 Reviews

Maruti Eeco

Maruti Kizashi

Maruti Grand Vitara Photos Maruti Grand Vitara Reviews Maruti Suzuki Cervo

Maruti Eeco Photos Maruti Eeco Reviews

Maruti Kizashi Photos Maruti Kizashi Reviews

Maruti New Swift

Maruti R3

Maruti Suzuki Cervo Photos Maruti Suzuki Cervo Reviews Maruti Ertiga

Maruti New Swift Photos Maruti New Swift Reviews Maruti Jimny

Maruti R3 Photos Maruti R3 Reviews

Maruti XA Alpha Concept

Maruti Ertiga Photos Maruti Ertiga Reviews

Maruti Jimny Photos Maruti Jimny Reviews

Maruti XA Alpha Concept Photos Maruti XA Alpha Concept Reviews

Maruti Suzuki Palette

Maruti MR Wagon

Maruti Suzuki Palette Photos Maruti Suzuki Palette Reviews

Maruti MR Wagon Photos Maruti MR Wagon Reviews

 Chapter4 RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY

To review the performance of the employees of Maruti Suzuki and Honda over a given period of time. To study the gap between the actual and the desired performance.

RESEARCH METHODOLOGY

A successful completion of any project and getting genuine results from that depends upon the method used by the researcher. The methodology for this study is laid upon the following basis: Research Design Sources of Data Collection Sampling Plan

RESEARCH DESIGN Research design is a framework or blueprint for conducting the market research project. It specifies the details of the procedure necessary for obtaining the information needed to structure or solve marketing problems. In my research project we have followed <descriptive research> design because we are doing research to know the satisfaction level of employees regarding their job. We will find out the percentage of employees related to <job satisfaction> in various aspects like <culture, work environment, facilities, incentives, performance appraisal, growth and opportunities, salary structure etc>. DATA COLLECTION The task of data collection begins after a research problem has been defined and research design/plan chalked out. While deciding about the method of data collection to be used for the study, the researcher should keep in mind two types of data : Primary Secondary

PRIMARY DATA The primary data are those which are collected afresh and for the first time and thus happen to be original in character. The data used for the study is <primary data>. <Primary data> is collected by < structured Questionnaire>.

< Structured Questionnaire>: consists of series of written question that a respondent answers. It consists of two sections- Section A and Section B. Section A gathered the personal information about the respondents. Section B consists of <scaled questions, in accordance with Likert scale/ questions used are Dichotomous, Rating, Ranking, Open Ended and Checklist>.The questionnaire comprises of <21> questions The data was collected by distributing the questionnaires to the employees of different department at <corporate office of Maruti Suzuki and Honda Limited>.

SECONDARY DATA The secondary data on the other hand are those which have already been collected by someone else and which have already been passed through the statistical process. For secondary data I have referred Books, Journals, Magazines and largely internet.

SAMPLE DESIGN AND SIZE A sample design is a definite plan for obtaining a sample from a given population. There are many sample designs from which a researcher can choose. Researchers must prepare/select a sample design which should be reliable and appropriate for his research only. It is very different to interview all the employees.

SAMPLING POPULATION :The population of under study is employees working in Corporate office of < Maruti Suzuki and Honda ltd> which is <198> in number.

SAMPLE SIZE:The sample size selected for the study is <100> employees . It is a representation of the elements of the target population. It consists of a list or set of directions for identifying the target population. In the study Sample frame = <100> Employees of different department at Corporate Office

SAMPLING TECHNIQUE: It is a method used by for selecting the sample from the population of <corporate office of XYZ Limited>. Sampling technique is of various types but: In the project <convenience sampling> technique has been used, in this technique because the population is divided into Stratas i.e. <officers and staff, managers> and data is selected from each strata. because it was easy for us to distribute the questionnaire to employees according to our convenience and also have followed <Quota sampling> because there were max employees in <finance and export department>, we have taken <50%> sample from it and from other department we have distribute the questionnaire to all employees except <GM, VP, AVP> because population size was less in other department.

STATISTICAL TOOLS: PERCENTAGE ANALYSIS It refers to a special kind of ratio. Percentage is used in making comparison between two or more series of data; percentages are used to determine relationship between the series if data finding the relative differences becomes easier through percentage. It is expressed as, Percentage (%) = No. of respondents Total no. of respondents x 100

LIMITATION OF THE STUDY The following are the limitations faced by me during the course of the study: The sample size is limited to only <100> employees. Primary data collected through observation is prone to human errors. Sometimes respondent hesitate to provide proper information as lack of faith on outsider persists. Sometimes employees refuse to fill the questioner as they think it to be time consuming.

The sample consisted only of employees in the day shift. Employees of the night shift were not considered for the purpose of study.

The questionnaire contained mostly multiple-choice questions therefore many respondents may not have given a proper thought before answering the questions.

Sensitive company information cannot be displayed in the project report.