MBA HR Summer Internship Project (Savitribai Phule Pune University)

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CHAPTER 1
INTRODUCTION

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1.1 Object of the Project
The object of the research is mainly focused on getting a truthful knowledge about the
topic. This will help in enhancing the growth of the researcher.
Engagement with research enables researcher to understand the overall
information regarding organization. Findings from research can help broaden or narrow
understandings about the kinds of solutions should be considered and are most
appropriate to pursue.
Research serves to introduce new ideas, help people identify problems and
appropriate solutions in new ways, and provide new frameworks to guide thinking and
action. Research is a process of steps used to collect and analyze information to increase
our understanding of a topic.
This project work will assist in getting clear idea about internal working
environment of HAL organization. Project study will help in gaining lot of knowledge
about which kind of managerial skills required to work in any organization. The project
study will guide researcher in how to increase employee efficiency.

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1.2 Selection of the topic
Topic selection is one of the important aspects of our research. The topic selected should be
such that helps in understanding the various concepts clearly. As it was decided the course
of action, to be followed. Topic selected should be such that it helps in understanding the
excise concept clearly. This topic is been selected for various reasons.
Selection of the topic is the crucial point where we have to select the particular topic for
research. The topic selected for study is Performance Management at HAL.
Performance management is a process by which managers and employees work together to
plan, monitor and review an employee's work objectives and overall contribution to the
organization.
The sole purpose of a performance management system study is to assess and ensure that
the employee is carrying out their duties which they are employed to do in an effective and
satisfactory manner, which is contributing to the overall business objectives.
This topic is selected for gaining knowledge about different policies, methods which help
to evaluate performance of employees and to know about how to increase the performance
of employees using various methodologies of performance appraisal.

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1.3 Objectives of the Study
 To know about performance management in the organization.
 To study the process of performance appraisal system at HAL.
 To find out the perception of employees about performance appraisal.
 To get opinions of appraisers and appraisees on the different parameters like
Effectiveness, Evaluation Criteria, Performance feedback, Delegation of Power and
authority, working experience, performance appraisal, Satisfaction Level, etc., through
Questionnaire Survey.
 To evaluate the effectiveness and satisfaction level of employees towards performance
appraisal system in HAL.
 To make suitable recommendations to the company about performance appraisal.

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1.4 Scope of the Study
The Scope of the study is the research study of HAL in human resource. The research
includes study of performance management at Human Resource Department of HAL. The
scope of the study is to understand the actual working and analysis of HAL.
The project will help to get knowledge about how to increase performance of employees
for growth of employee as well as company.
Study period of project is of 8 weeks i.e. from 7th June, 2017 to 1st Aug, 2017 which helped
in gaining lot of knowledge about performance appraisal methods, promotion policies, and
assessment methods. As I have been given a specific deadline for submission I may not
perform all the activities.
The scope of performance appraisal study includes the following:
 Provide employees with a better understanding of their role and responsibilities;
 Increase confidence through recognizing strengths while identifying training needs to
improve weaknesses;
 Improve working relationships and communication between supervisors and
subordinates
 Increase commitment to organizational goals
 Develop employees into future supervisors
 Assist in personnel decisions such as promotions or allocating rewards and allow time
for self-reflection, self-appraisal and personal goal setting.

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1.5 RATIONALE OF THE STUDY
Rationale of study refers to the worth and utility of the study from the future point of
view. The project gives the live experience of the various aspects that is helpful from future
point of view.
The project provides the opportunity to understand the how industry works in actual &
day to day transactions. The project study is very beneficial and quite useful from the
future point of view.
 The study helped me to learn and gain practical knowledge and insight into one of
the significant.
 The study will help me in future job prospective, as it will guide us to improve
our skills, knowledge and attitude and also help me to develop my abilities and
capabilities to organize and arrange various activities.
 The recommendations and suggestions by the research will guide to know the
various activities of HAL.
 The study will help in gaining qualities of good manager.
 An awareness regarding the industrial environment is made through this project.
 The research provides an opportunity to the management to take any corrective
actions based on result or recommendation.

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1.6 LIMITATIONS OF THE STUDY
The project was done with all the possible accuracy and honesty. However, there were
some limitations of the project due to which there may be some deviations in the findings.
1. Less availability of time.
2. It was not possible to study the various aspects of the topic due to short span.
3. Unavailability of information.
4. Study based on secondary data.
5. Biased Responses by some respondents.
6. It is the study of one topic only.
7. Confidential data is not disclosed by the organization

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CHAPTER 2
RESEARCH METHODOLOGY

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2.1 RESEARCHDESIGN
RESEARCH:
Research is the backbone of all inventions & discoveries. There cannot be any progress in the
society without scientific research.
The Webster’s dictionary defines research as an “a careful, critical inquiry or examination in
seeking facts or principle, diligent investigation in order to ascertain something”.
Research is the process of systematically obtaining accurate answer to significant & pertinent
question by the use of scientific methods for gathering interpreting information.
TYPES OF RESEARCH
1. EXPLORATORY RESEARCH:-
Exploratory research designs are flexible & unstructured designs. The purpose of exploratory
research is to explore the phenomena & obtain clarity about it. It usually involves qualitative
investigation. It is useful when the researcher does not have clear idea about the research work.
Sometimes the topic of research may be so new or vague that the researcher needs to conduct
exploration just to learn about the phenomena. The main purpose of exploratory research is to:
a) Define & conceptualize the research problem.
b) Explore the various research opportunities.
c) Development of research hypothesis.
d) Identify the possible nature of relationship that might exist between variable under study.
e) Explore the various factors & variables that might have an impact on research.
Methods & techniques for conducting exploratory research:
The researcher can make use of many techniques & methods for conducting exploratory
research. The most common among them are:
a) Observation method: Observational research is a type of correlational (i.e., non-experimental)
research in which a researcher observes ongoing behavior. Observation is a systematic data
collection approach. Researchers use all of their senses to examine people in natural
settings or naturally occurring situations.
b) Depth interview: In-depth interviews can be defined as a qualitative research technique
which involves “conducting intensive individual interviews with a small number of
respondents to explore their perspectives on a particular idea, program or situation”.

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c) Projective techniques: Projective techniques are indirect methods used in qualitative
research. These techniques allow researchers to tap into consumers' deep motivations,
beliefs, attitudes and values.
d) Focus group: It is a form of qualitative research consisting of interviews in which
a group of people are asked about their perceptions, opinions, beliefs, and attitudes
towards a product, service, concept, advertisement, idea, or packaging.
e) Experience survey: An experience survey is a set of questions designed to gauge the
overall satisfaction of a group of people who have shared a common experience.
2. DESCRIPTIVE RESEARCH:-
The research carried out in descriptive design is more structured & formal in nature. The
objective of this type of research is to provide a comprehensive & detailed explanation of
phenomena. It is a fact finding with adequate interpretation. It may be guided by a research
hypothesis. It is typically concerned with the frequency of an occurrence or with some general
prediction. These studies focus on what, where, when, who & how of research. It is a framework
used for conclusive research. It lacks the precision & accuracy of experimental designs, yet it can
be used in wide application in social & business research.
Descriptive research can be further classified into following methods
a) Cross sectional design: A cross-sectional study is a type of observational study that
analyzes data collected from a population, or a representative subset, at a specific point in
time that is, cross-sectional data.
b) Longitudinal design: A longitudinal study is an observational research method in which
data is gathered for the same subjects repeatedly over a period of time. Longitudinal
research projects can extend over years or even decades. In a longitudinal cohort study,
the same individuals are observed over the study period.
3. ANALYTICAL RESEARCH:-
Analytical research has to use facts or information already available and analyze these to
make a critical evaluation of the material.
4. APPLIED RESEARCH:-
Applied research aims at finding solution for an immediate problem facing a society or an
industrial/business organization.
5. FUNDAMENTAL RESEARCH:-

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It is mainly concerned with generalization and with the formulation of a theory. Basic
research is directed towards finding information that has abroad base of application and adds to
the already existing organized body of scientific knowledge.
6. CONCEPTUAL RESEARCH:-
Conceptual research is that related to some abstract ideas or theory. Philosophers and
thinkers to develop new concept or to reinterpret existing once generally use it.
7. EMPIRICAL RESEARCH:-
Empirical research relies on experience or observation alone, often without due regard for
system and theory. It is database research, coming up with conclusions, which are capable of
being verified, by observation or experiment.
For this research activity researcher has selected exploratory type:
Research type indicates the motive and the vision of the research and approximately the
research which is conducted by the researcher belongs to the further communication and
conclusion on the basis of collected data.
In the research, it fulfills the objective and research and study on each and every part of
the Performance Appraisal topic. In the research the main focus is on analyzing the topic in
proper manner. The findings are included about the research.

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2.2 SAMPLING METHODS
SAMPLING:
Sampling may be defined as the process of selecting units (people organization etc.) from
a population of interest so that by examining the sample units, result may be generalized about
the population.
Sampling methods:
The purpose of any sampling method is to obtain a sample that is representative of the
target population. Sampling methods are classified as either probability or non-probability.
Probability sampling is based on the concept of random selection, whereas non-probability
sampling is “non-random” sampling.
A) Probability Sampling:
Probability sampling is also known as random sampling or chance sampling is one in
which every unit in the population has a non-zero chance of being selected in the sample, and
this probability can be accurately determined. In probability sampling design, the population
must be clearly defined and list of target population must be available. Probability sampling
allows for estimation of sampling errors.
In probability sampling all the units in the population have equal chance of being
included in the sample. In case of probability sample design, it makes it possible for the
researcher to estimate the population parameter on the basis of the sample statistic calculated.
Probability sampling includes:
 Simple Random Sampling: -It is the basic probability design. In this design, each unit of the
sample (n) from the population (N), has an equal chance of being selected in the sample.
Random selection procedure ensures that every sampling units of the population has an equal
& known probability of being included in the sample.
 Systematic Sampling: - In this sample design every Kth unit in the population is sampled,
beginning with a random start on a unit from the range 1 to K. the Kth unit or interval is
determined by dividing the total population by the sample size. The major advantage of
systematic sampling is its simplicity & flexibility. It is easier to draw every Kth unit in the
listing, than to use lottery system or the random numbers.
 Stratified Random Sampling: - The basic idea underlying stratified sampling is to make use
of available information about the population, to divide it into groups such that the elements
within each group are more alike than are the elements in the population as a whole. That is
we create a set of homogeneous samples based on the variables we are interested in studying.

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If a series of homogeneous groups can be sampled in such a way that when the samples are
combined the constitute a sample of a more heterogeneous population, we can increase the
accuracy of our parameter estimates.
 Cluster or Multistage Sampling: - It is one of the most frequently used sampling designs in
large scale studies, as it is the least expensive. In cluster sampling the entire population is
divided into various clusters in such a way that the elements within the clusters are
heterogeneous. However there is homogeneity between the clusters. This design is thus the
opposite of stratified sampling. Cluster sampling is usually used when there is need for more
economy & the sampling frame is unavailable. Of a sample of units is selected
probabilistically from the selected clusters, the procedure is called two-stage or multi-stage
cluster sampling.
 Area sampling: - In area sampling, researcher make use of geographical units as a cluster.
This type of cluster sampling is called as area sampling.
B) Non-Probability Sampling:
Non-probability sampling simply means sampling without using random selection
methods. In this type of sampling, items for the sample are selected deliberately by the
researcher and his choice concerning the items remains absolute. With non-probability sampling
methods, the probability of being included in the sample is unknown. In non-probability
sampling, members are selected from the population in some non-random manner usually on the
basis of their accessibility or by the purposive personal judgments of the researcher. The non-
probability selection of element does not aloe the estimation of sampling errors. These condition
give rise to exclusion bias, placing limits on how much information a sample can provide about
the population. Information about relationship between sample and population is limited.
Methods of Non-probability Sampling:
1. Convenience Sampling :
The researchers obtain a convenience sample by selecting whatever sampling
units are conveniently available. This approach may be used in early stage of exploratory
research. The researcher has no way of estimating the representativeness of convenience
samples & therefore cannot estimate population parameter.
2. Purposive sampling :
This sampling design confirming to certain criteria is called as purposive
sampling .there are two types of purpose sampling design ;
I. Judgment sampling :

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This is sampling design when a researcher selects sample units
confirming to some criteria. the researcher selects sampling units subjectively
in a attempt to obtain a sample that appears to be representative of the
population
II. Quota sampling :
The main objective of this sample design is to select a sample that is
similar as possible to the sampling population. This design has certain
limitations. The idea that quotas on some variables assume a greater
representativeness on others is not true. It gives no assurance that the
sample is representative of the variables being studied. However despite
its limitations this design is widely used for conducting opinion, polls and
by marketing & business researchers.
3. Snowball Sampling :
This type of design is used when it is difficult to identifying the members of the desired
population e.g. Forced women entrepreneurs, drug addicts, families with triplets, people
owning a vintage car, etc. These types of population can be best identified through referral
networks. In this design, each respondent after being interviewed is asked to identify one or
more sampling unit. Here the sample unit selected in the initial stage may or may not be
selected through probability methods. The initial sample units are used to refer other units
who possess similar characteristics who in turn refer other units & so on.
Table 2.1 SAMPLE DESIGNS
NON-PROBABILITY SAMPLING PROBABILITY SAMPLING
1. Convenience sampling 1. Simple random sampling
2. Purposive sampling 2. Systematic sampling
3. Judgment sampling 3. Stratified Random sampling
4. Quota sampling 4.Area sampling
5. Snowball sampling 5.Cluster sampling

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Sampling is concerned with the selection of a subset of individuals from within a statistical
population to estimate characteristics of the whole population. Two advantages of sampling are
that the cost is lower and data collection is faster than measuring the entire population.
The sampling process comprises several stages:
 Defining the population of concern
 Specifying a sampling frame, a set of items or events possible to measure
 Specifying a sampling method for selecting items or events from the frame
 Determining the sample size
 Implementing the sampling plan
 Sampling and data collecting
Fig. 2.1 Sampling Process
For this research activity researcher has selected Simple Random Sampling method for research
purpose. In this project, survey was done by getting opinions of both Appraisees and Appraisers.
The Sample Size of 80 Appraisees and 05 Appraisers were selected for research purpose.

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2.3 DATA COLLECTION
Data Collection
Data collection is a term used to describe a process of preparing and collecting data for
example, as part of a process improvement or similar project. The purpose of data collection is to
obtain information to keep on record, to make decisions about important issues, to pass
information on to others. Primarily, data are collected to provide information regarding a specific
topic.
1. Primary Data
The data which is directly collected by researcher & was not available before is called as
primary data. The sources of primary data are very useful is finding the real facts about
the incidents or events. It includes the personal observation of researcher & respondents.
Primary data are freshly collected data that provide information about the particular
problem. These data can be gathered using techniques like interview, observation,
mailing, counseling etc.
This type of data always required interrogative conversation with the people to be
surveyed. Primary data was collected by interviewing brand managers from
organizational companies. An attempt was been made to find the scope of creative and
digital advertising.
Primary data collection methods can be divided into two groups: quantitative and
qualitative.
Quantitative data collection methods are based in mathematical calculations in various
formats. Methods of quantitative data collection and analysis include questionnaires with
closed-ended questions, methods of correlation and regression, mean, mode and median
and others.
Qualitative research methods, on the contrary, do not involve numbers or mathematical
calculations. Qualitative research is closely associated with words, sounds, feeling,
emotions, colors and other elements that are non-quantifiable.

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Qualitative studies aim to ensure greater level of depth of understanding and qualitative
data collection methods include interviews, questionnaires with open-ended questions,
focus groups, observation, game or role-playing, case studies etc. The researcher
collected the primary data from the following sources:
 Questionnaire: A questionnaire is a research instrument consisting of a series of
questions (or other types of prompts) for the purpose of gathering information from
respondents. Responses can be analyzed with quantitative methods by assigning
numerical values to Likert-type scales. Results are generally easier (than qualitative
techniques) to analyze.
The merits claimed on behalf of this method are as follows:
1. There is low cost even when the universe is large and is widely spread
geographically.
2. It is free from the bias of the interviewer; answers are in respondents’ own words.
3. Respondents have adequate time to give well thought out answers.
4. Respondents, who are not easily approachable, can also be reached conveniently.
 Interview method: This is oral-verbal communication where interviewer asks questions to
respondents. Interviews can be conducted in person or over the telephone. Interviews can
be done formally (structured), semi-structured, or informally. Questions should be
focused, clear, and encourage open-ended responses. Interviews are mainly qualitative in
nature.
It can be achieved by two ways:
(a) Personal interviews: Personal interview method requires a person known as the
interviewer asking questions generally in a face-to-face contact to the other person or
persons.
(b) Telephone interviews: This method of collecting information consists in contacting
respondents on telephone itself. It is not a very widely used method, but plays important
part in industrial surveys, particularly in developed regions.

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2. Secondary Data
The previously recorded information about an event is very important in finding the
solution of similar kind of problems. This readily available information is called
Secondary data. It is already processed & compiled with an evaluation. This can be
gathered from the publish report like census reports, annual reports, financial assessment
report & Journals as well as from unpublished sources.
Secondary data is a type of data that has already been published in books, newspapers,
magazines, journals, online portals etc. There is an abundance of data available in these
sources about your research area in business studies, regardless of the nature of the
research area. Therefore, application of appropriate set of criteria to select secondary data
to be used in the study plays an important role in terms of increasing the levels of
research validity and reliability.
These criteria include, but not limited to date of publication, credential of the author,
reliability of the source, quality of discussions, depth of analyses, extent of contribution
of the text to the development of the research area etc. Secondary data collection is
discussed in greater depth in Literature Review chapter.
The researcher collected the secondary data from the following sources:
 Various websites.
 Magazines.
 News paper.
 Books.
For this research, researcher will use secondary data like books, magazines, magazines,
handbook, etc.
Gooddata collectioninvolves:
 Following the defined sampling process
 Keeping the data in time order

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 Noting comments and other contextual events
 Recording non-responses
 Survey Method
Survey research is the most widely used method to collect primary data; this
approach is best suited for gathering detailed information. Survey research is very
flexible; it can help to obtain many different kinds of information in many different
situations. Researchers can select target groups for asking questions about their
knowledge, attitudes, preferences and behavior.
In order to gather information regarding the strategy of creating awareness about
topic, a survey questionnaire will be used to collect data due to its flexible property of
providing different kinds of data i.e. both qualitative and quantitative.
A survey is a research method for collecting information from a selected group of
people using standardized questionnaires or interviews. While many people think of a
questionnaire as the “survey”, the questionnaire is just one part of the survey process.
Surveys also require selecting populations for inclusion, pre-testing instruments,
determining delivery methods, ensuring validity, and analyzing results.
In continuous quality improvement, surveys help to identify customer
expectations, measure satisfaction levels, and determine specific areas for improvement.
Researcher has used Primary Data and Secondary Data for Research Project.
 Type of Data used is as follows:
Primary Data: Questionnaire
Secondary Data : Shop Visits, Books, Journals, Newspapers, search engines and websites

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2.4 Presentation, Analysis and Interpretation of Data
2.4.1 Scope and Purpose
Data analysis is the process of developing answers to questions through the examination and
interpretation of data. The basic steps in the analytic process consists of identifying issues,
determining the availability of suitable data, deciding on which methods are appropriate for
answering the questions of interest, applying the methods and evaluating, summarizing and
communicating the results.
Data analysis also plays a key role in data quality assessment by pointing to data quality
problems in a given survey. Analysis can thus influence future improvements to the survey
process. Data analysis is essential is for understanding results from surveys, administrative
sources and pilot studies; for designing and redesigning survey; for planning new statistical
activities; and for formulating quality objectives.
Data analysis helps in interpretation of data and takes a decision or answer the research
question. Data analysis starts with the collection of data followed by sorting and processing it.
Processed data helps in obtaining information from it as the raw data is non comprehensive in
nature. Presenting the data includes the pictorial representation of the data by using graphs,
charts, maps and other methods. These methods help in adding visual aspect to data which makes
it much easier and quick to understand.
Data analysis helps people in understanding the results of surveys conducted, makes use
of already existing studies to obtain new results. It helps in validating the existing study or to
add/expand existing study.
Among the many benefits of data analysis, the more important ones are:
 Data analysis helps in structuring the findings from different sources of data.
 Data analysis is very helpful in breaking a macro problem into micro parts.
 Data analysis acts like a filter when it comes to acquiring meaningful insights out of huge
data set.
 Data analysis helps in keeping human bias away from the research conclusion with the help
of proper statistical treatment.

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2.4.2 Data Analysis & Interpretation:
Data analysis can be defined as the process of gathering, modelling and transforming data so as
to get useful information, suggestions and conclusions in decision-making. Interpretation is the
process of making sense of numerical data that has been collected, analyzed, and presented.
People interpret data when they turn on the television and hear the news anchor reporting on a
poll, when they read advertisements claiming that one product is better than another, or when
they choose grocery store items that claim they are more effective than other leading brands. A
common method of assessing numerical data is known as statistical analysis, and the activity of
analyzing and interpreting data in order to make predictions is known as inferential statistics .
Informed consumers recognize the importance of judging the reasonableness of data
interpretations and predictions by considering sources of bias such as sampling procedures or
misleading questions, margins of error, confidence intervals, and incomplete interpretations.
Types of Data Analysis
1) Descriptive and Causal Analysis:
The descriptive analysis is mainly employed for the purpose of elaborating the data (taken
from the population) which is under the sampling observation either graphically or
numerically. It is possible to carry out the analysis of one, two or more than two variables at
the same time. Thus, based on the number of variables used, data analysis can be defined as:
i) Univariate Analysis: It is one of the simplest forms of data analysis. In this method
summarization of the data depends on the separate variables of a data set. The use of this
technique is mainly related to those cases when the investigator likes to take individual
measurement of the sample, or in case when there are many measurements but the
researcher studies only one variable at a time.
ii) Bi-Variate Analysis: This analysis is used for the measurement when there is some
relationship between two variables. The results are obtained in the form of percentage,
scatter plot, histogram table, correlation coefficient, etc. This analysis also identifies that
weather the variables which are under the study is dependent or independent.
iii) Multivariate Analysis: Due to the complexity of the research problem in present days,
the data analysis has both multiple independent and . dependent variables. So, this
analysis is used by the researchers when they take two or more variables for the
measurement at the same time.
2) Inferential Analysis/Statistical Inference:
It is used by the investigators when they have acquired the data from the sample through a
random procedure (using probability method) and with a high response rate. If the data
collection is done through non-probability method with the lower response rate, then this

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method is not used for the analysis. The two main groups of the problems which are dealt
with the statistical deduction are as follows:
i) Estimation: Estimation is .a procedure which is employed in the case of the
statistics (which is acquired from the sample) for the purpose of estimating the
'unknown parameter' of the population under study.
ii) Hypotheses Testing: Hypothesis testing is the procedure to examine the
hypothesis of the main population from where the sample has-been drawn.
Phases of Data Analysis:
Basically data analysis is divided in two phases:
1) Preliminary Data Analysis: Preliminary data analysis is applied before the hypothesis testing
for obtaining the knowledge about the properties of the collected data. This analysis clarifies that
how well the coding, inputting, scaling are done. It also clarifies the data validity or systematic
bias. The outcome of this analysis influences result and conclusion.
2) Hypothesis Testing: It is required to check the assumptions before testing hypothesis to
improve the interpretation of the results of the tests. Hypothesis testing finds the validity of the
assumption with a view to choose between two opposite hypothesis about the population
parameter.
Key Considerations in Data Analysis: In order to draw precise conclusion from the data
analysis many problems, issues and considerations have to be dealt with carefully during the
entire process of data analysis. The investigator is aided with these conclusions while making the
decisions.
2.4.3 Data Processing:
Once, the data has been collected, it has to be processed and reduced so that it can
be analysed by the researcher. The data which is collected through a study is usually in a raw
form. This form of data often has errors and inconsistencies which are not relevant for the study.
This raw data has to be transformed into a relevant set by the researcher through the process of
editing, coding and tabulation. This stage is very important for effective research work, as
processing the data reduces the errors and biasness resulting in relevant and specific data which
is appropriate for analysis.
Data processing is the primary stage of data analysis. It refers to setting-up the collected data in
such a format that it can be appropriately coded and analyzed through computer. Without
processing the data, it cannot be evaluated and communicated. While processing the data, the
researcher simplifies, conceptualizes, and transforms the selected data into a proper form as per
the research objectives. This refining of data continues throughout the research process.

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Processing of data should be done in such a way that it gives the appropriate analytical
outcomes, and the integrity of the original data is maintained.
The raw data obtained from the questionnaires must undergo preliminary preparation before they
can be analyzed using statistical techniques. The quality of the results obtained from the
statistical techniques and their subsequent interpretation depend to a great degree on how well
the data were prepared and converted into a form suitable for analysis.
2.4.4 Data Presentation:
In the field of math, data presentation is the method by which people summarize,
organize and communicate information using a variety of tools, such as diagrams, distribution
charts, histograms and graphs. The methods used to present mathematical data vary widely.
Common presentation modes including coding data, data analysis, drawing diagrams, boxplots,
tables, pie charts and histograms. The best methods to use for presenting data vary depending on
the type of information, volume and complexity of data and the audience. The presentation of
data in the form of tables, graphs and charts is an important part of the process of data analysis
and report writing. There are some general common sense recommendations to follow when
presenting data:
i) The presentation should be as simple as possible. Avoid the trap of adding too much
information. It is not the aim to include all the information you have but only a
summary of the essential feature(s) you are trying to illustrate. A good rule of thumb
is to only present one idea or to have only one purpose for each graph or chart you
create.
ii) The presentation should be self-explanatory. A chart or graph is not serving its
purpose if the reader cannot comprehend the legends or has to refer to the text in
order to understand it.
iii) The title should be clear, and concise indicating what?, when?, and where? the data
were obtained.
iv) Codes, legends and labels should be clear and concise, following standard formats if
possible.
v) The use of footnotes is advised to explain essential features of the data that are critical
for the correct interpretation of the graph or chart.
a) Tables: Tables are a standard method of presenting qualitative or
categorical data, but they can also be used to summarize quantitative
data.
b) Graphs: Graphs are a useful method to display quantitative data. The
standard graph uses two rectangular co-ordinates. The independent
variable is usually plotted on the horizontal x axis, while the response
or outcome variable is plotted on the vertical y axis. The outcome

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variable is usually a quantitative measure such as a frequency (count)
or a percentage.
c) Charts: It is often convenient to present data pictorially. Information
can be conveyed much more quickly by a diagram than by a table of
numbers. Charts and diagrams can help a reader or audience quickly
get the salient point of an analysis or report. Unfortunately, because
diagrams can be very misleading they should be treated as a
compliment to numbers, not a replacement. There are several types of
charts which are used to illustrate data, the two most common being
the pie chart and bar chart:
d) Pie Chart: A pie chart is used to display the frequency distribution of a
qualitative variable. The relative frequency of each group or category
is proportional to the number of degrees or angle of the pie. Each
sector therefore represents the proportion of the total number of
observations that belong to that particular category. Pie charts are
easier to read if the segments are ordered by size.
e) Bar Chart: Histograms and pie charts depict the distribution of a
single variable. A bar chart or bar diagram shows the relationship
between two or more variables, usually one being quantitative and the
other qualitative or a quantitative variable which has been grouped,
such as time or age in years. The bars which represent the different
groups are shaded, hatched or colored and are always the same width.
A bar chart must not be confused with a histogram.
Table 2.2: Research Design
Type of Research Exploratory
Sample Unit HAL (India)
Sample Method Simple Random Sampling Method
Sample Size
Appraisees: 80
Appraisers: 05
Sources of Data
Primary Data: Questionnaire
Secondary Data : Shop Visits, Books, Journals, Newspapers, search
engines and websites
Analysis of Data Through figures & Percentage and through mean

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CHAPTER 3
PROFILE OF
HINDUSTAN AERONAUTICS LIMITED

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3.1 History & General Information
I. Background and Promoters
HAL was established as Hindustan Aircraft in Bangalore in 1940 on 23 Dec 1940.
Hindustan Aircraft Company was duly incorporated under the Mysore Companies Act as a
private Ltd Company. Walchand–Tulsidas-Khatau Ltd was the Managing agency.
The organization and equipment for the factory at Bangalore was set up by William D.
Pawley of the Intercontinental Aircraft Corporation of New York, who had already
established Central Aircraft Manufacturing Company (CAMCO) in partnership with
Chinese Nationalist government in China. Pawley managed to obtain a large number of
machine-tools and equipment from the United States.
The Indian Government bought a one-third stake in the company and by April 1941 by
investing 25 lakhs as it believed this to be a strategic imperative. The decision by the
government was primarily motivated to boost British military hardware supplies in Asia to
counter the increasing threat posed by Imperial Japan during Second World War. The
Kingdom of Mysore supplied two directors; Air Marshal John Higgins was resident director.
The first aircraft built was a Harlow PC-5. On 2 April 1942, the government announced that
the company had been nationalised when it had bought out the stakes of Seth Walchand
Hirachand and other promoters so that it could act freely. The Mysore Kingdom refused to
sell its stake in the company but yielded the management control over to the Indian
Government.
In 1943 the Bangalore factory was handed over to the United States Army Air Forces but
still using Hindustan Aircraft management. The factory expanded rapidly and became the
centre for major overhaul and repairs of American aircraft and was known as the 84th Air
Depot. The first aircraft to be overhauled was a Consolidated PBY Catalina followed by
every type of aircraft operated in India and Burma. When returned to Indian control two
years later the factory had become one of the largest overhaul and repair organizations in the
East. In the post war reorganization the company built railway carriages as an interim
activity.

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After India gained independence in 1947, the management of the company was passed over
to the Government of India.
Hindustan Aeronautics Limited (HAL) was formed on 1 October 1964 when Hindustan
Aircraft Limited joined the consortium formed in June by the IAF Aircraft Manufacturing
Depot, Kanpur (at the time manufacturing HS748 under licence) and the group recently set
up to manufacture MiG-21 under licence (with its new factories planned in Koraput, Nasik
and Hyderabad). Though HAL was not used actively for developing newer models of fighter
jets, except for the HF-24 Marut, the company has played a crucial role in modernisation of
the Indian Air Force. In 1957 company started manufacturing Bristol Siddeley Orpheus jet
engines under licence at new factory located in Bangalore.
During the 1980s, HAL's operations saw a rapid increase which resulted in the development
of new indigenous aircraft such as the HAL Tejas and HAL Dhruv. HAL also developed an
advanced version of the Mikoyan-Gurevich MiG-21, known as MiG-21 Bison, which
increased its life-span by more than 20 years. HAL has also obtained several multimillion-
dollar contracts from leading international aerospace firms such
as Airbus, Boeing and Honeywell to manufacture aircraft spare parts and engines.
By 2012, HAL was reportedly bogged down in the details of production and has been
slipping on its schedules. On 1 April 2015, HAL reconstituted its Board with Mr. TS Raju
as CMD, Mr. S Subrahmanyan as Director (Operations), Mr. VM Chamola as Director
(HR), CA Ramana Rao as Director (Finance) and Mr. D K Venkatesh as Director
(Engineering & R&D). There are two Govt. nominees in the Board and six independent
Directors.
In March 2017, HAL Chairman and Managing Director T Suvarna Raju announced that the
company had finalised plans for an indigenisation drive. The company plans to produce
nearly 1,000 military helicopters, including Kamov 226, LCH (Light Combat Helicopter)
ALH (Advanced Light Helicopter), and over 100 planes over the next 10 years. HAL will
manufacture the Kamov 226T helicopter under a joint venture agreement with Russian
defence manufacturers. The Kamov 226T will replace the country's fleet of Cheetah and
Chetak helicopters. Over the next 5 years, HAL will carry out major upgrade of almost the
entire fighter fleet of Indian Air Force including Su-30MKI, Jaguars, Mirage and Hawk jets

28. Page | 28
to make them "more lethal". The company will also deliver 123 Tejas Light Combat Aircraft
to the IAF from 2018–19, at a rate of 16 jets per year.
II. The Company
The Company traces its roots to the pioneering efforts of an industrialist with extraordinary
vision, the late Seth Walchand Hirachand, who set up Hindustan Aircraft Limited at
Bangalore in association with the erstwhile princely State of Mysore in December 1940. The
Government of India became a shareholder in March 1941 and took over the Management
in 1942.
Headquartered in Bangalore, Hindustan Aeronautics Limited (HAL) is mainly involved in
manufacturing aircraft, aerospace, navigation and communication equipment. It has the
distinction of building the first military aircraft constructed in South Asia and is currently
involved in the design, fabrication and assembly of aircraft, jet engines, helicopters and their
components and spares.
HAL's facilities are located throughout India including Nasik, Korwa, Kanpur, Koraput,
Lucknow and Hyderabad. The Company’s business is presently organised into five
complexes headed by a CEO.
 Bangalore Complex - Production, Repair & Overhaul of Fixed Wing Aircraft/Engine
(Indian & Western origin)
 MiG Complex – Production, Repair & Overhaul of Fixed Wing Aircraft/Engine (Russian
origin)
 Helicopter Complex – Design, Production, Repair & Overhaul of Helicopters

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 Accessories Complex - Production, Repair & Overhaul of Accessories and Avionics
 Design Complex – Design & Development of Fixed Wing Aircraft.
Adopting the slogan "Asia's Premier Aerospace Complex," India's aerospace and defence
major, Hindustan Aeronautics Limited (HAL), continues to take large strides in the sector
with every passing year. In size HAL is indisputably an Asian aerospace giant, with 16
production units and nine research and design centres spread across seven locations in India.
Today, HAL has 16 Production Units and 9 Research and Design Centres in 7 locations in
India. The Company has an impressive product track record - 12 types of aircraft
manufactured with in-house R & D and 14 types produced under license. HAL has
manufactured 3550 aircraft (which includes 11 types designed indigenously), 3600engines
and overhauled over 8150 aircraft and 27300 engines.
HAL's supplies / services are mainly to Indian Defence Services, Coast Guards and Border
Security Forces. Transport Aircraft and Helicopters have also been supplied to Airlines as
well as State Governments of India. The Company has also achieved a foothold in export in
more than 30 countries, having demonstrated its quality and price competitiveness.
HAL has been successful in numerous R & D programs developed for both Defence and
Civil Aviation sectors. HAL has made substantial progress in its projects:
• Dhruv, which is Advanced Light Helicopter (ALH)
• Tejas- Light Combat Aircraft (LCA)
• Intermediate Jet Trainer (IJT)
• Various military and civil upgrades.

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Table 3.1
Joint Ventures of HAL
Name of Joint Venture Company Product Profile
BAe HAL Software Ltd., Bangalore
Software Solutions & Services to
defence & aerospace industries
Snecma HAL Aerospace Pvt. Ltd. ,
Bangalore
Manufacture of Precison Aero Engine
components
HALBIT Avionics Pvt. Ltd. Bangalore Design & Development of Simulators
Indo Russian Aviation Ltd. Nasik Product Support for Russian Aircraft
HAL Edgewood Technologies Pvt.
Ltd., Bangalore
Manufacture of Miniature Electronic
modules & avionic systems
HATSOFF Helicopter Training Pvt.
Ltd.
Simulator based Training
International Aerospace Manufacturing
Pvt. Ltd.
Manufacture of shrouds for Civil Aero
Engines (Rolls Royce)
Multirole Transport Aircraft Ltd.
(MTAL)
Design, Development & Manufacture
of Multirole Transport Aircraft
InfoTech HAL ltd.
Design Work packages for Aero
engines
Samtel HAL Display Systems Airborne Multi Function Displays
Tata HAL Technologies Ltd.,
Bangalore
Design Work Packages for Airframe
structures

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HAL has played a significant role for India's space programs by participating in
the manufacture of structures for Satellite Launch Vehicles like
• PSLV (Polar Satellite Launch Vehicle)
• GSLV (Geo Stationary Launch Vehicle)
• IRS (Indian Remote Satellite)
• INSAT (Indian National Satellite)
HAL has won several International & National Awards for achievements in R&D,
Technology, Managerial Performance, Exports, Energy Conservation, Quality and Fulfilment of
Social Responsibilities. HAL was awarded the “INTERNATIONAL GOLD MEDAL AWARD”
for Corporate Achievement in Quality and Efficiency at the International Summit (Global Rating
Leaders 2003), London, UK by M/s Global Rating, UK in conjunction with the International
information and management centre (IIMC).
HAL was presented the International - “ ARCH OF EUROPE ” Award in Gold
Category in recognition for its commitment to Quality, Leadership, Technology and Innovation
At the National level, HAL won the "GOLD TROPHY" for excellence in Public Sector
Management, instituted by the Standing Conference of Public Enterprises (SCOPE).
VISION OF THE COMPANY
To become a significant global player in the aerospace industry.
MISSION OF THE COMPANY
To achieve Self Reliance in design, development, Manufacture, upgrade and maintenance of
Aerospace equipment diversifying into related areas and managing the business in a climate of
growing professional competence to achieve World Class Performance Standards for global
competitiveness and growth in exports.

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VALUES OF THE COMPANY
We are committed to these values to guide us in our activities.
CUSTOMER SATISFACTION:
We are dedicated to building a relationship with our customers where we become
partners in fulfilling their mission. We strive to understand our customer’s needs and to deliver
products and services that fulfill and exceed all their requirements.
COMMITMENT TO TOTAL QUALITY:
We are committed to continuous improvement to all our activities. We will supply
products and services that conform to highest standards of design, manufacture, reliability,
maintainability and fitness for use as desired by our customer.
COST AND TIME CONSCIOUSNESS:
We believe that our success depends on our ability to continually reduce the cost and
shorten the delivery period of our products and services. We will achieve this by eliminating
waste in all activities and continuously improving all processes in every area of our work.
INNOVATION AND CREATIVITY:
We believe in striving for improvement in every activity involved in our business by
pursuing and encouraging risk- taking, experimentation and learning at all levels within the
company with a view to achieving excellence and competitiveness.
TRUST AND TEAM SPIRIT:
We believe in achieving harmony in work-life through mutual trust, transparency, co-
operation and sense of belonging. We will strive for building empowered teams to work towards
achieving organization goals.
RESPECT FOR THE INDIVIDUAL:
We value our people. We will treat each other with dignity and respect and strive for
individual growth and realization of every one’s full potential.

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INTEGRITY:
We believe in a commitment to be honest, trustworthy and fair in all our dealings. We
commit to be loyal and devoted to our organization. We will practice self-discipline and own
responsibility for our actions. We will comply with all requirements so as to ensure that our
organization is always worthy of trust.
OBJECTIVES
• To ensure availability of Total Quality People to meet the Organizational Goals and
Objectives.
• To have a continuous improvement in Knowledge, Skill and Competence (Managerial,
Behavioural and Technical)
• To promote a Culture of Achievement and Excellence with emphasis on Integrity,
Credibility and Quality
• To maintain a motivated workforce through empowerment of Individual and Team-
building
• To enhance Organizational Learning
• To play a pivotal role directly and significantly to enhance Productivity, Profitability and
improve the Quality of Work Life

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3.2 ORGANIZATION
ORGANISATIONAL GROWTH OF HAL
1940: H.A.L was set up by Seth Warchand Hirachand in association with the
government of Mysore as a private limited company.
1941: First product “HARLOW TRAINER AIRCRAFT” & “CURLINESS HAWK
AIRCRAFT” handed over to government of India.
1942: Company was handed over to the U.S. AIR FORCE. HAL repaired over 100
different varieties of aircraft and 3800 piston engines.
1945: Government of India took over the management of HAL again after the Second
World War.
1949: First percivical apprentice aircraft assembled.
1951: The control of HAL was shifted to ministry of defence from ministry of industry.
1954: The first HINDUSTAN TRAINER II (HT—II) had its maiden flight.
1956: HAL comes under the public sector.
1960: Aircraft Manufacturing Department at Kanpur was established.
1962: HINDUSTAN AERONAUTICS INDIA LIMITED (HAIL) was formed to
manufacture MIG-21 aircraft. Three factories at Nasik, Koraput, and Hyderabad
were established.
1964: HAIL was dissolved and its assets merged with aeronautics India limited and
company by the name of HAL was formed.
1969: An agreement with USSR AWS reached for the license production of MIG-21
AIRCRAFT.
1970: Helicopters Division was established to manufacture Helicopters.
1973: Lucknow Division was formed for manufacture of more than 500 types of
Instruments and Accessories.
1976: An agreement with USSR for license for MIG-21 AND BIS –AIRCRAFT.
1979: Agreement with British aerospace for manufacture JAGUAR AIRCRAFT.
1982: Agreement with USSR for license manufacturing of MIG-27M AIRCRAFT.
1983: Korwa Division lraged division for HAL formed.
1990: Design and Development of Advanced Light Helicopter.

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1996: Major servicing of the first batch of MIRAGE – 2000 AIRCRAFT was under
taken. It conducted several “C” CHECKS ON BOEING 737 AIRCRAFT.
1998: IGMT a new Division was established at Bangalore.
1998: Establishment of Industrial & Marine Gas Turbine Division for aerodoriative gas
turbines / Industrial engines.
2000: Establishment of Airport Service Service Centre for C0-ordinating the operations
at HAL Airport – Bangalore.
2002: Establishment of Sukhoi Engine Division at Koraput.
2002: Expansion of Nasik Division as Aircraft Manufacturing Division and Aircraft
Overhaul Division.
2006: HAL ranked 45th among Top Defense Firm in the World.
2006: 19th July, HAL – IAI cooperation in Aero structure.
2006: 21st July, Rolls – Royce & HAL celebrate 50 year of partnership.
2006: HAL launches newspaper from Minsk square on 1st September.
2006: 3rd September, SU-30 MKI Programme on schedule: HAL.
2006: 14th October, HAL Launches Helicopter ambulance, Charter Service named
“Vayu Vahan”.
2006: 20th December, HAL receives EEPC Award for the year 2004-05.
2007: 5th June, HAL completes planting 25 Lakh saplings.
2007: 22nd June, HAL gets Navratna Status.
2007: 2nd July, Ashok Nayak is HAL’s new MD.
2007: 6th August, HAL ranked 34th among top 100 defence firm in the world.
2007: 16th August, DHRUV with SHAKTI ENGINE and Weapons make maiden flight.

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PRESENT SETUPOF THE ORGANISATION
Hindustan Aeronautics Limited has three production complexes – Bangalore, MIG and
Accessories and one Design complex each headed by a CEO, reporting to Chairman, HAL.
HAL has spread its wings to cover various activities in the area of Design, Development,
Manufacturing and Maintenance. Today HAL has 16 production divisions / units, 7 at
Bangalore and 1 each at Nasik, Koraput, Lucknow, Kanpur, Korwa, Hyderabad and
Barrackpore. These divisions / units are fully backed by nine Design Centers, these Centers are
engaged in the design and development of the Combat aircraft, Helicopters, Aero engines,
Engine test beds, Aircraft communication and Navigation Systems Accessories of Mechanical
and Fuel system and instruments.
Major products of Accessories Complex:
Lucknow Division Landing Gear, Wheels, Brakes, Hydraulic
& Fuel accessories & aircraft instruments
GSE & GHE, ECS etc.
Korwa Divison INS, HUDWAC, NAV attack LRMTS,
FDR, Auto Stab System.
Hyderabad Division Surveillance Radar, Precision Approach
Radar, INCOM, RAM, IFF, VHF /
UHF (5).
Kanpur Division DO-228, HPT-32 and Civil aircrafts.

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ORGANISATION STRUCTURE
HAL CORPORATE
Fig. 3.1 Organization Structure
DESIGN
COMPLEX
 AircraftR & D
Center
 RotatorywingR
& D Center
 Engine & Test
bedR & D
Center
 Strategic
ElectronicsR&
D Center
 Aircraft
UpdatesR & D
Center
 Aerospace
System&
EquipmentR&
D Center
 Gas Turbine R &
D Center
 Control
Materials&
Processeslab&
NDT CenterR &
D Center
BANGLORE
COMPLEX
 AircraftDivision
 Engine Division
 Foundry& Forge
Division
 Helicopter
Division
 Aerospace
Division
 Overhaul
Division
 Industrial &
Marine gas
Turbine Division
ACCESSORIES
COMPLEX
 Accessories
Division
Lucknow
 AvionicsDivision
Korwa
 AvionicsDivision
Hyderabad
 Transport
AircraftDivision
Kanpur
MIG
COMPLEX
 NasikDivision
 Koraput
Division

38. Page | 38
ORGANIZATIONAL CHART
All over India H. A. L has 7 divisions; these divisions are dedicated for different purpose related
to the manufacturing of commercial and fighter aircrafts. The divisions are as follows:
1. Bangalore Division: It is divided into 5 divisions:
a) Air craft division, which also consist a runway.
b) Engine division, which is indulged mainly in manufacturing of LCA Engine.
c) Helicopter division.
d) Overhaul division.
e) Design bureau.
2. Nasik Division: It is currently dealing with Russian accessories repair, overhaul and
manufacturing which are used in aircrafts.
3. Kanpur Division: It is dealing with assembly of whole commercial aircrafts like Puspak,
Dornier and other major products are DO-228, HPT-32 and Civil aircrafts etc.
4. Lucknow Division: It is an accessories division which deals with manufacturing of more
than 1400 accessories like, alternator, generators, tachometer, tacho generator and other major
products are Landing gear, Wheels, Brakes, Hydraulic & Fuel accessories, aircraft instruments
GSE, GHE & ECS etc.
5. Korwa Divison: It also deals with design and manufacturing of accessories (mainly
electronics) and other major products are INS, HUDWAC, NAV attack LRMTS, FDR, Auto
Stab System.

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6. Koraput Division: It is indulged in assembly of engines of aircraft.
7. Hyderabad Division: It is an accessories division. They manufacturing accessories like
Surveillance Radar, Precision Approach Radar, INCOM, RAM, IFF, VHF / UHF (5).

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3.3 PRODUCTS/ ACTIVITIES
PRODUCTS LIST
 Aircraft of Russian origin
 Aircraft of western origin
 Helicopters
 Communication/Navigation Equipment
 Advanced communication equipment
 Accessories for Aircraft, Helicopters and Aero engines
 Aerospace equipment
 Aero engines of Russian origin
 Aero engines of western origin

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PRODUCTS OF HAL
SU-30 MKI
Light Combat Aircraft (Tejas)
Advanced Light Helicopter (Dhruv)

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Communication/Navigation Equipments
Advanced Communication Equipments

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Accessories for Aircraft and Helicopters Aerospace Equipments
Aero Engines of Russian Origin Aero Engines of Western Origin

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SERVICES OF HAL

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Activities:
19 Production Units and 10 Research & Design Centres in 8 locations in India | Manufacture of
Composites
Products: Satellite Launch Vehicles (Polar & Geo-synchronous), Satellites, Aerostructures,
Helicopters, Software, Engines, Dornier - 228, Avionics, Spares & Services, Aircraft of Russian
and Western origin, Helicopters, Advanced Communication/Navigation Equipment, Accessories
for (Aircraft, Helicopters & Aero Engines), Aerospace Equipment, Aero Engines of Russian and
Western origin, Light Combat Aircraft (LCA) (Tejas), Intermediate Jet Trainer (IJT), Light
Combat Helicopter (LCH), Advanced Light Helicopter (Weapon System Integration (ALH-
WSI), Light Utility Helicopter (LUH)
Products Planned: Fifth Generation Fighter Aircraft (FGFA), Multi-Role Transport Aircraft
(MTA), HTT-40, Indian Multi Role Helicopter (IMRH)
Hindustan Aeronautics Limited based in Bangalore, India, is one of Asia's largest aerospace
companies. Under the management of the Indian Ministry of Defence, this state-owned company
is mainly involved in aerospace industry, which includes manufacturing and assembling aircraft,
navigation and related communication equipment, as well as operating airports.
HAL built the first military aircraft in South Asia and is currently involved in the design,
fabrication and assembly of aircraft, jet engines, and helicopters, as well as their components and
spares. It has several facilities throughout India including Nasik, Korwa, Kanpur, Koraput,
Lucknow, Bangalore and Hyderabad. The German engineer Kurt Tank designed the HF-24
Marut fighter-bomber, the first fighter aircraft made in India.

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3.4 CORPORATE & FUNCTIONAL PRACTICES
Fig 3.3 Corporate & Functional Practices
a) HRM
Focus of Human Resource Policy
• Competence Building
• Commitment
• Motivation
• Employee Relations

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In the backdrop of the above, the focus of Human Resource Development initiatives at HAL
emphasizes the following:
I) Man Power Planning
• Out sourcing of low tech and medium tech jobs.
• Fresh induction only in critical / highly specialised areas based on requirements due to
increase in work load. In the Workmen Cadre, induction will be restricted to Direct
Workmen only.
• Improving the existing qualification profile by focusing on induction of professionally
qualified personnel and diploma holders.
Hence focus of recruitment is to recruit people with a combination of knowledge, skill,
experience and attitude in line with the organisational requirement through appropriate
manpower plan both short term (contract appointments) and long term recruitment programme.
II) Training and Development
Training is one of the most important tools for developing human resource. Hence, identification
of training competency profile in terms of Vision, Mission of the Company is the strategic point
of the training and development strategy of the Company. The following objectives have been
set in this regard:-
• To provide training to all employees at regular intervals in a plan period of 5 years.
• Training to become an integral component of individual professional evolution by:
o updating knowledge to avoid obsolescence
o enhancing professional creativity
o enabling employees to shoulder higher responsibility
o creating a business trend and strategic thinking to take up new business
Challenges
The goals of training will be to progressively achieve 7 days training per employee per year with
a budget of 2% of annual Wage Bill.
Keeping in view the organisational requirement and goals and objectives of training, the
following have been identified as the key focus areas of training:

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• Technology
• Tooling
• Quality
• Information Technology
Further, to facilitate the development of soft skills (change of mind-set, managerial development
etc.) training would be imparted on a continuous basis. Tie-ups with Centres of Excellence like
IITs, NDC, FIAS France etc. for imparting training would be given prime importance.
III) Performance Appraisal:
Appraising people for meeting the Company's goal would be the prime focus of performance
management. The new Performance Appraisal System based on work planning and commitment
(mutually agreed tasks) , self-review and performance analysis, performance review and
feedback would ensure that the focus would be on value adding activities rather than on routine
activities which bear no relationship with the Organisation's goals and objectives.
Identification of low performers and resultant corrective action throughout the Company would
be given priority. Similarly, faster career growth opportunity would be provided to high
performers.
IV) Reward System
The focus of the reward system in the Company is to promote team work and cultivate a sense of
achievement and excellence in the Organisation. This is in addition to the existing scheme of
reward for an individual who innovatively and creatively makes exemplary contributions in the
key thrust areas of the Company that would lead to its achieving overall excellence. Coupled
with the above, schemes like "Inter Divisional Competition" and "Profit Sharing Scheme" have
been institutionalised in the Company for team reward.
V) Scheme for Learning and Certification for Executives

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A "Learning Organisation" is essential for survival in the present era of Liberalisation,
Privatisation and Globalisation. Therefore, "Knowledge" is the only core competence of
Organisations for coping with changes.
In line with the above philosophy, among other initiatives like institutionalizing Learning
Centres in Divisions etc., HAL has also introduced the scheme for Learning and Certification for
executives as a starting point for building individual knowledge. The scheme inter-alia provides
an opportunity for the Junior and Middle Management Cadre Executives to broaden their
perspective by not only learning about all functions and procedures in their respective disciplines
but also in related areas and overall knowledge about the Organization and its environment. It is
proposed to expand the coverage of this scheme further, if required, by linking the scheme to
some kind of reward mechanism.
Lastly, the HRD Plan will also include time-to-time OD Interventions to address specific
requirement of the Company.
b) FinancialHighlights
Financial Highlights 2014-15
Hindustan Aeronautics Limited (HAL) has achieved Sales Turnover of Rs. 15,622 Crore during
the financial year 2014-15. The Profit of the Company (Profit Before Tax) soared to Rs. 3,173
Crores
The Highlights are below:
Table 3.2: Financial Highlights
Particulars 2013-14 2014-15
Rupees in Crores
Growth over previous year
Sales 15128 15622 3.26%
Value of Production 15867 16289 2.65%
Gross Block 3729 4023 7.88%
During the year 2015-16, Company has registered the highest-ever turnover of Rs.16,736 Cr
compared to Rs.15,621 Cr recorded in the last year, a growth of 7.14 percent over the previous
year. The Profit Before Tax stood at Rs.3, 288 Cr as compared to Rs.3,173 Cr in the previous
year.

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c) CSR Projects / Activities
 HAL completed Kumudvathi river rejuvenation projects and handed them over to Village
Panchayats.
 Hon’ble Defence Minister Shri Manohar Parrikar launched the IAF-HAL ePortal at
HALCorporate Office on 6th September, 2015. This is the first Inter Organization
Information Sharing System (IOIS) under Digital India initiative between a defence
service organization and a defense PSU.
 Development of Infrastructure facilities
 Drinking water facilities
 Skill Development
 ITI & Apprenticeship Training (Integrated Course)
 Medical & Health facilities
 Conducting of Sports & Games
 Organised Football & Kabbadi Tournaments for Rural School Students
 Installed 50 solar lights in five villages and 22 street lights in dixi village
Relief & Rehabilitation Activities For Flood Affected People
Considering the unprecedented flood situation which occurred in Uttarakhand and Odisha,
resulting in massive loss of lives, damage to infrastructure, property, etc., the Company has
contributed Rs. 2 Cr and Rs 1 Cr. to Chief Minister’s Relief Fund, Uttarakhand and Odisha
respectively.

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CHAPTER 4
REVIEW OF LITERATURE

52. Page | 52
4.1 MEANING AND CONCEPTOF THE TOPIC
Performance Appraisals are essential for the effective management and evaluation
of staff. Appraisals help develop individuals, improve organizational performance, and feed into
business planning. Formal performance appraisals are generally conducted annually for all staff
in the organization. Each staff member is appraised by his or her line manager. Directors are
appraised by the CEO, who is appraised by the chairman or company owners, depending on the
size and structure of the organization.
The amount of research regarding the topic “Performance Appraisal” is so vast.
The topic is literally not new; it is as old as the formation of the organizations. Before the early
1980’s, majority of theoretical studies emphasized on revamping the rating system within the
organization. The actions were a great thing to reduce the chaotic of employee’s performance
appraisal (Feldman, 1981). With the passage of the time the methods and rating system among
the employees got enhanced and received an immense appreciation and attention of the
managers.
According to Laurie J Mullins, The process of management involves a
continuous judgement on the behaviour and performance of staff. One way in which to review
the performance and potential of staff is through a system of performance appraisal. It is
important that members of the organization know exactly what is expected of them, and the
yardsticks by which their performance and results will be measured. A formalized and systematic
appraisal scheme will enable a regular assessment of the individual’s performance, highlight
potential, and identify training and development needs. Most importantly, an effective appraisal
scheme can improve the future performance of staff. The appraisal scheme can also form the
basis of a review of financial rewards and planned career progression.
Performance appraisal is therefore a crucial activity of the management of human resources. A
comprehensive appraisal system can provide the basis for key managerial decisions such as those
relating to allocation of duties and responsibilities, pay, empowerment and levels of supervision,
promotions, training and development needs, and terminations.

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According to ACAS, the identification of individual training needs will best be supported by
a performance appraisal system which focuses on future development needs. The system should
be used by managers and workers to:
 Create career plans which encompass not only training proposals but also areas of
work experience, job goals and personal development.
 Consider career tracks which may be as much about lateral moves designed to
expand learning and competence as upward promotion.
Performance appraisal is a systematic appraisal of the employee’s personality traits and
performance on the job and is designed to determine his contribution and relative worth to the
firm.
“Performance appraisal is a formal structured system of measuring and evaluating an
employee’s job, related behaviors and out comes to discover how and why the employee is
presently performing on the job an how the employee can perform effectively in the future so
that the employee, organization and society all benefit.”
COMPONENTS OF APPRAISAL EVALUATION
Performance evolutions can be made a variety of reasons- counseling, promotion, research,
salary, administration or a combinations of these therefore it is necessary to begin by stating very
clearly the objectives of the evolution program. Having done this, the personal evolution system
should address the questions, who, what, when, where, how? Of performance appraisal
“WHO”
The appraisal can be accomplished by one or more individuals involving a combination of the
immediate supervisor, a higher level manager, a personal manager, the assessee’s peers, the
assessee himself and the assessee’s subordinates.
Usually the immediate supervisor must be interested with the task of rating the assessee because
he his most familiar with his work, and because he is also responsible for recommending or

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approving personal action based on the performance appraisal. The staff specialists, i.e. the
personal officer also do appraisal.
They may advise the supervisor while evaluating their subordinates stressing the need for
evidence for making specific appraisal judgments and comparing a particular subordinate’s
evolution with those of others.
The appraisal of an individual may also be done by his peers such appraisal proves effective in
predicting future management success.
This approach has its disadvantage that the individual may rate himself excessively high then it
would be if his superior rated him. Many companies use rating committees to evaluate
employees. These committees consist of supervisors, peers, and subordinates.
“WHAT”
The “what” of the performance appraisal consists in appraising non supervisory employees for
their current performance and managers for potential? It also includes evaluation of human
trades.
“WHY”
The “why” of an appraisal is concerned with –
a) Creating and maintaining a satisfactory level of performance of employees in their
present jobs.
b) Highlighting employee needs and opportunities for personal growth and development.
c) Promoting understanding between the supervisor and his subordinates.
d) Providing a useful criterion for determining the validity of selection and training methods
and techniques and forming concrete measures for attracting individual of higher caliber
to the enterprise.

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“WHEN”
The ‘when’ answers the query about the frequency of appraisal? It has been suggested in formal
counseling should occur continuously. The manager should discuss an employee’s work as soon
as possible after he has judged it.
“WHERE”
The where indicates the lo0cation where an employee may be evaluated. It is usually done at the
place of work or office of the supervisor.
“HOW”
Under how the company must decide what different methods are available and which of these
may be used for performance appraisal. Based on the comparative advantages and disadvantages
it is decided which method suit the propose best.

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4.2 BASIC THEORIES OF THE TOPIC
The underlying objective of performance appraisal is to improve the performance of individuals
leading to improvement in the performance of the organization as a whole. An effective appraisal
scheme, therefore, offers a number of potential benefits to both the individual and the
organization.
 It can identify an individual’s strengths and areas of development and indicate how
such strengths may best be utilized.
 It can help to reveal problems which may be restricting progress and causing
inefficient work practices.
 It can develop a greater degree of consistency through regular feedback on
performance and discussion about potential. This encourages better performance
from staff.
 It can provide information for human resource planning, to assist succession
planning, to determine suitability for promotion and for particular types of
employment and training.
 It can improve communications by giving staff the opportunity to talk about their
ideas and expectations, and how well they are progressing.

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4.2.1 ProcessofPerformance Appraisal
Fig. 4.1 Process of Performance Appraisal
 Establishing 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 standards.
 Communicating the standards: Once set, it is the responsibility of the
management to communicate the standards to all the employees of the organization.
The employees should be informed and the standards should be clearly explained to
them. 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.
 Measuring the actual performance: The most difficult part of the Performance
appraisal 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 of measurement, taking care that

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personal bias does not affect the outcome of the process and providing assistance rather
than interfering in an employees work.
 Comparing 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.
 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.
 Decision making: 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.
4.2.2 Techniques/Methods ofPerformance Appraisal
Numerous methods have been devised to measure the quantity and quality of performance
appraisals. Each of the methods is effective for some purposes for some organizations only.
None should be dismissed or accepted as appropriate except as they relate to the particular needs
of the organization or an employee.
Broadly all methods of appraisals can be divided into two different categories.
 Past Oriented Methods
 Future Oriented Methods

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4.2.2.1 Past Oriented Methods
1. Rating Scales: Rating scales consists of several numerical scales representing job related
performance criterions such as dependability, initiative, output, attendance, attitude etc. Each
scales ranges from excellent to poor. The total numerical scores are computed and final
conclusions are derived. Advantages – Adaptability, easy to use, low cost, every type of job
can be evaluated, large number of employees covered, no formal training required.
Disadvantages – Rater’s biases
2. Checklist: Under this method, checklist of statements of traits of employee in the form of
Yes or No based questions is prepared. Here the rater only does the reporting or checking
and HR department does the actual evaluation. Advantages – economy, ease of
administration, limited training required, standardization. Disadvantages – Raters biases, use
of improper weighs by HR, does not allow rater to give relative ratings
3. Forced Choice Method: The series of statements arranged in the blocks of two or more are
given and the rater indicates which statement is true or false. The rater is forced to make a
choice. HR department does actual assessment. Advantages – Absence of personal biases
because of forced choice. Disadvantages – Statements may be wrongly framed.
4. Forced Distribution Method: here employees are clustered around a high point on a rating
scale. Rater is compelled to distribute the employees on all points on the scale. It is assumed
that the performance is conformed to normal distribution. Advantages – Eliminates
Disadvantages – Assumption of normal distribution, unrealistic, errors of central tendency.
5. Critical Incidents Method: The approach is focused on certain critical behaviors of
employee that makes all the difference in the performance. Supervisors as and when they
occur record such incidents. Advantages – Evaluations are based on actual job behaviors,
ratings are supported by descriptions, feedback is easy, reduces recency biases, chances of
subordinate improvement are high. Disadvantages – Negative incidents can be prioritized,

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forgetting incidents, overly close supervision; feedback may be too much and may appear to
be punishment.
6. Behaviorally Anchored Rating Scales: statements of effective and ineffective behaviors
determine the points. They are said to be behaviorally anchored. The rater is supposed to
say, which behavior describes the employee performance. Advantages – helps overcome
rating errors. Disadvantages – Suffers from distortions inherent in most rating techniques.
7. Field Review Method: This is an appraisal done by someone outside employees’ own
department usually from corporate or HR department. Advantages – Useful for managerial
level promotions, when comparable information is needed, Disadvantages – Outsider is
generally not familiar with employees work environment, Observation of actual behaviors
not possible.
8. Performance Tests & Observations: This is based on the test of knowledge or skills. The
tests may be written or an actual presentation of skills. Tests must be reliable and validated
to be useful. Advantage – Tests may be apt to measure potential more than actual
performance. Disadvantages – Tests may suffer if costs of test development or
administration are high.
9. Confidential Records: Mostly used by government departments, however its application in
industry is not ruled out. Here the report is given in the form of Annual Confidentiality
Report (ACR) and may record ratings with respect to following items; attendance, self
expression, team work, leadership, initiative, technical ability, reasoning ability, originality
and resourcefulness etc. The system is highly secretive and confidential. Feedback to the
assessee is given only in case of an adverse entry. Disadvantage is that it is highly subjective
and ratings can be manipulated because the evaluations are linked to HR actions like
promotions etc.

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10. Essay Method: In this method the rater writes down the employee description in detail
within a number of broad categories like, overall impression of performance, promoteability
of employee, existing capabilities and qualifications of performing jobs, strengths and
weaknesses and training needs of the employee. Advantage – It is extremely useful in filing
information gaps about the employees that often occur in a better-structured checklist.
Disadvantages – It its highly dependent upon the writing skills of rater and most of them are
not good writers. They may get confused success depends on the memory power of raters.
11. Cost Accounting Method: Here performance is evaluated from the monetary returns yields
to his or her organization. Cost to keep employee, and benefit the organization derives is
ascertained. Hence it is more dependent upon cost and benefit analysis.
12. Comparative Evaluation Method (Ranking & Paired Comparisons): These are
collection of different methods that compare performance with that of other co-workers. The
usual techniques used may be ranking methods and paired comparison method.
 Ranking Methods: Superior ranks his worker based on merit, from best to
worst. However how best and why best are not elaborated in this method.
It is easy to administer and explanation.
 Paired Comparison Methods: In this method each employee is rated with
another employee in the form of pairs. The number of comparisons may
be calculated with the help of a formula as under.
N x (N-1) / 2
4.2.2.2 Future Oriented Methods
1. Management by Objectives: It means management by objectives and the performance is
rated against the achievement of objectives stated by the management. MBO process goes as
under.
 Establish goals and desired outcomes for each subordinate
 Setting performance standards

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 Comparison of actual goals with goals attained by the employee
 Establish new goals and new strategies for goals not achieved in previous year.
Advantage – It is more useful for managerial positions.
Disadvantages – Not applicable to all jobs, allocation of merit pay may result in setting
short-term goals rather than important and long-term goals etc.
2. Psychological Appraisals: These appraisals are more directed to assess employees’
potential for future performance rather than the past one. It is done in the form of in-depth
interviews, psychological tests, and discussion with supervisors and review of other
evaluations. It is more focused on employees emotional, intellectual, and motivational and
other personal characteristics affecting his performance. This approach is slow and costly
and may be useful for bright young members who may have considerable potential.
However quality of these appraisals largely depends upon the skills of psychologists who
perform the evaluation.
3. Assessment Centers: This technique was first developed in USA and UK in 1943. An
assessment center is a central location where managers may come together to have their
participation in job related exercises evaluated by trained observers. It is more focused on
observation of behaviors across a series of select exercises or work samples. Assessees are
requested to participate in in-basket exercises, work groups, computer simulations, role
playing and other similar activities which require same attributes for successful performance
in actual job. The characteristics assessed in assessment center can be assertiveness,
persuasive ability, communicating ability, planning and organizational ability, self
confidence, resistance to stress, energy level, decision making, sensitivity to feelings,
administrative ability, creativity and mental alertness etc. Disadvantages – Costs of
employees traveling and lodging, psychologists, ratings strongly influenced by assessee’s
inter-personal skills. Solid performers may feel suffocated in simulated situations. Those
who are not selected for this also may get affected.
Advantages – well-conducted assessment center can achieve better forecasts of future
performance and progress than other methods of appraisals. Also reliability, content validity

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and predictive ability are said to be high in assessment centers. The tests also make sure that
the wrong people are not hired or promoted. Finally it clearly defines the criteria for
selection and promotion.
4. 360-Degree Feedback: It is a technique which is systematic collection of performance data
on an individual group, derived from a number of stakeholders like immediate supervisors,
team members, customers, peers and self. In fact anyone who has useful information on how
an employee does a job may be one of the appraisers. This technique is highly useful in terms
of broader perspective, greater self-development and multi-source feedback is useful. 360-
degree appraisals are useful to measure inter-personal skills, customer satisfaction and team
building skills. However on the negative side, receiving feedback from multiple sources can
be intimidating, threatening etc. Multiple raters may be less adept at providing balanced and
objective feedback.
Typical appraisers are: supervisors, peers, subordinates employees themselves users of
service and consultants. Performance appraisal by all these parties is called “360 DEGREE
PERFORMANCE APPRAISAL”
1. Supervisors:
Supervisors include superiors of the employee other superiors having knowledge about
the work of the employee and department head or manager. General practices is that
immediate superiors appraise the performance, hitch in turn reviewed by the departmental
head /manager.
2. Peers:-
Peer appraisal may be reliable if the work group is stable over a reasonably long period
of time and perform tasks that require integration.
3. Subordinates:-
The concept of having superiors rated by

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subordinates is being used in most organizations today especially in developed countries.
Such a novel method can be useful in other organizational settings too provided the
relationship between superiors and subordinates are coordinal.
4. Self-Appraisal:-
In individuals understand the objective they are expected to achieve and the standard
by which they are to be evaluated, they are to a great extend in the best position to
appraise their own performance.
5. Users of Service Customers:-
Employee performance in service organization relating to behaviors, promptness,
speed in doing the job and accuracy, can be better judged by the customers or users of
services.
6. Consultants:-
Sometimes consultants may be engaged for appraisal when employees or employers
not trust supervisor and management does not trust the self-appraisal a peer appraisal or
subordinate appraisal.

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4.3 REVIEW OF RESEARCHON THE SELECTED TOPIC
ResearchArticles
Article 1
Author: Andy Neely, Mike Gregory, Ken Platts (1995)
Title: Performance measurement system design: A literature review andresearchagenda
Abstract: The importance of performance measurement has long been recognized by academics
and practitioners from a variety of functional disciplines. Seeks to bring together this diverse
body of knowledge into a coherent whole. To ensure that the key issues are identified, focuses on
the process of performance measurement system design, rather than the detail of specific
measures. Following a comprehensive review of the literature, proposes a research agenda.
Article 2
Author: Mayer, Roger. C., Davis, James. H.(1999)
Title: The effect of the performance appraisal system on trust for management: A field quasi-
experiment.
Abstract: Recent theoretical developments have enabled the empirical study of trust for specific
referents in organizations. The authors conducted a 14-month field study of employee trust for
top management. A 9-month quasi-experiment found that the implementation of a more
acceptable performance appraisal system increased trust for top management. The 3 proposed
factors of trustworthiness (ability, benevolence, and integrity) mediated the relationship between
perceptions of the appraisal system and trust.
Article 3
Author: Fletcher C (2001)
Title: Performance appraisal and management
Abstract: Performance appraisal has widened as a concept and as a set of practices and in the
form of performance management has become part of a more strategic approach to integrating
HR activities and business policies. As a result of this, the research on the subject has moved
beyond the limited confines of measurement issues and accuracy of performance ratings and has

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begun to focus more of social and motivational aspects of appraisal. This article identifies and
discusses a number of themes and trends that together make up the developing research agenda
for this field. It breaks these down in terms of the nature of appraisal and the context in which it
operates. The former is considered in terms of contemporary thinking on the content of appraisal
(contextual performance, goal orientation and self awareness) and the process of appraisal
(appraiser–appraisee interaction, and multi-source feedback). The discussion of the context of
appraisal concentrates on cultural differences and the impact of new technology.
Article 4
Author: David Otley (2002)
Title: Performance management: a framework for management control systems research
Abstract: This paper proposes a framework for analysing the operation of management control
systems structured around five central issues. These issues relate to objectives, strategies and
plans for their attainment, target-setting, incentive and reward structures and information
feedback loops. Their central focus is on the management of organizational performance.
Because the framework has been inductively developed, its application is `tested' against three
major systems of organizational control, namely budgeting, economic value added and the
balanced scorecard. In each case, neglected areas of development are exposed and fruitful topics
for research identified. It is believed that the framework can usefully be developed further by its
use in analysing other instances of management control systems practice, and that case-based,
longitudinal studies provide the best route to this end.
Article 5
Author: Deanne N. Hartog, Paul Boselie, Jaap Paauwe (2004)
Title: Performance Management: A Model and Research Agenda
Abstract: Performance management deals with the challenge organisations face in defining,
measuring, and stimulating employee performance with the ultimate goal of improving
organisational performance. Thus, performance management involves multiple levels of analysis
and is clearly linked to the topics studied in strategic human resource management (HRM) as
well as performance appraisal. This paper presents a model for performance management
combining insights from strategic HRM and work and organisational psychology. The model

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incorporates multi-level elements, and adds to previous models by explicitly incorporating
employee perceptions, the role of direct supervisors, and possible reversed causality. Challenges
for future research are also presented.
Article 6
Author: Dr. K. Pradeep Kumar (October-December 2005)
Title: Effective Performance Measurement in Organisations.
Abstract: Performance Management is the process through which organizations ensure that
employees are striving towards organization goals. It serves as one of the means available to
organizations to gain competitive advantages. The assumption that specification of the jobs to be
performed and the knowledge, skills and abilities required for performance are for a job as it
currently exists, and has existed in the past and is inconsistent with the need to develop human
resources system for future. Author, therefore, says that it is essential for specifying the types of
performance that are necessary for effective organizational functioning particularly in
accordance with the strategy.
Article 7
Author: Dr. Suvarna Sen (April-June 2006)
Title: Innovations in Performance Management
Abstract: The Author believes that Managers are not born effective, they become effective.
Managers have to work continuously to stay effective in each situation that they manage and
Managerial Effectiveness is a progressive attitude, not a destination. Each step forward, this
attitude gives one an experience of success, even if a small one. A perceptive Manager looks for
a cumulative effect of these successes – his/her professional growth. Once an individual Manager
develops this attitude, this approach to life, it begins to act as a driver – and she/he becomes self-
driven, author adds.
Article 8
Author: Gregory H. Dobbins (July 2009)
Title: A Contingency Approach to Appraisal Satisfaction

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Abstract: The present study explored the moderating effects of organizational variables on the
appraisal characteristic-appraisal satisfaction relationship. Analyses indicated that the appraisal
characteristics of action plans, frequency, and rater training were more positively related to
appraisal satisfaction when subordinates experienced role conflict, were not closely monitored,
and supervisors had a large span of control. The results provide substantial support for
conceptualizing appraisal satisfaction as a contingent function of both appraisal characteristics
and organizational variables. Implications of the findings for the design of appraisal systems,
appraisal effectiveness, and future research are discussed.
Article 9
Author: Taylor Cox (Oct, 2010)
Title: Differential Performance Appraisal Criteria
Abstract: Performance appraisal ratings of 125 first-level managers were analyzed to investigate
the degree to which the criteria used to evaluate the overall job performance of black managers
differs from that used to evaluate white managers. The performance appraisal form included
items that measured both the social behavior dimension and task/goal accomplishment
dimension of job performance. The appraisal ratings of both groups on each dimension were
correlated with measures of overall job performance and promote ability. Results indicated that
social behavior factors are more highly correlated with the overall job performance of black
ratees than for white ratees. Implications of these results for both black managers and
organizations are discussed.
Article 10
Author: Liliane. M and Peter .M (2010)
Title: Empirical Analysis of Maintenance Performance Measurement in Belgian Industries
Abstract: Exclaimed that the performance and competitiveness of different companies can be
attainted through implementation of perfectly defined performance measurement indicators and
framework that are able to measure the performance function by analysing the use of certain
performance indicators in management of maintenance. They discovered that the maximum
respondents have very less decisions and changes in processes triggered by performance
measurement.

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Article 11
Author: Ms. Leena Toppo, Dr. (Mrs.) Twinkle Prusty (Sep,-Oct. 2012)
Title: From Performance Appraisal to Performance Management.
Abstract: Performance appraisal and performance management were one of the emerging issues
since last decade. Many organizations have shifted from employee’s performance appraisal
system to employee’s performance management system. This paper has focused to study the
evolution of employee’s performance appraisal system, critics the system suffered and how the
performance management system came to the practice. The main purpose of this paper is to
differentiate these two systems, employee’s performance appraisal and management system. This
paper uses a review of the literature to evaluate the development of appraisal system and argues
the critic areas of appraisal system. The review identified as advancement in the management
field and growing complexity in corporate sectors demand more capable HR, so mare appraisal
of employee’s performance is not sufficient. Employee’s contribution should be aligned with
organizational objectives and strategy. Performance management eliminates the shortcomings of
performance appraisal system to the some extent.
Article 12
Author: Sayantani G, Niladri .D (2013)
Title: New Model of Performance Management and Measurement in Higher Education Sector
Abstract: Studied the impact of performance reward systems mainly Performance Related Pay,
the role of resources in influencing educational outcomes and the reliability of existing methods
of assessing educational performance. They reported the findings which identify the methods of
PMS in Indian and international education sector by introducing a new model in performance
management system. This model uses three forms to collect information regarding the particular
faculty from various sources that are the particular faculty, students and Head of the Department.
All this information will be send to the Management for analysis and feedback. Major benefit is
transparency.

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Article 13
Author: Neeti, Santosh .C (2015)
Title: Study of performance appraisal system and its effectiveness in fmcg industry
Abstract: Studied that employees have good knowledge of performance appraisal and have a
positive attitude towards it as their promotion is purely based on performance appraisal and the
ratings help to fix increments. During the course of study suggestions came from the employees
for the need of counselling. Performance appraisal should be made more transparent and
rationale.
Article 14
Author: Shivali Jindal, Laveena, Navneet (December 2015)
Title: Study of effectiveness of performance appraisal system in selected Indian companies.
Abstract: An evaluation of previous performance is experienced by the vast majority of recruits
each year. The management of performance level is the sum up of performance appraisal
systems. This is a continuous and interactive process designed to motivate employees, and check
their capability with the main motive to facilitate productivity. The performance management
systems involve various activities which are much more than simply reviewing what an
employee has done. This research paper is all about understanding the need of performance
management systems, ways in which performance appraisals can be constructed, the occurrence
of potential problems, benefits which could be availed and the information of the progress.

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CHAPTER 5
DATA PRESENTATION, ANALYSIS &
INTERPRETATION OF DATA