1. A
PROJECT ON
PERFORMANCE APPRAISAL
IN
Hero Moto Corp at K.L GUPTA, GAYA
(In Partial Fulfilment of the Degree of BBM)
Mirza Ghalib College, Magadh University, Gaya
Under Supervision of : Submitted By:
M KASHIF RAZA KHAN VIKASH PATHAK
DEPT. OF BUISNESS MANAGEMENT CLASS : B.B.M IIIRD
MIRZA GHALIB COLLEGE, GAYA CLASS ROLL : 51
MAGADH UNIVERSITY, BODHGAYA EXAM ROLL : ……………
REG. NO. : 1101259/11
SESSION : 2011-14

2. ACKNOWLEDGEMENT
This study is incomplete without proper expression of gratitude towards the
people who made their valuable contribution in the completion of the study.
This project has been completed with an intention to understand Performance
Appraisal Programme in Indian automobile Industry. The dimension of the
relevance of the project has been expanded and connected to Indian National
Productivity. I am thankful to all of the people who supported me with their
priceless help, guidance, responses and motivation.
I am deeply thankful to Mr. Sidharth Basir, the Manager of the K.L Gupta Hero
Moto Corp, Gaya, Mr Purnendu Saran, Network Manager and all other
organization members, who participated with their valuable guidance and
responses against the questionnaires, during the project.
I am truly thankful to my guide M. Kashif Raza Khan, Lecturer, Mirza Ghalib
College, M.U Gaya. I am also thankful to all my team members Md. Meraj Taj,
Vikash Pathak, Md.Mahtab Alam Khan, Rakesh Raushan, Haider khan,
Shahnwaz Alam. I am also thankful to all my friends who supported me
anyway, in the project.
We are indebted from the deepest core of our heart to H C B Human Capacity
Building Institute for all the step by step training, guidance, extra ordinary
Leadership & Management Training and Motivation. We are thankful that H C B
has directed our efforts and potential to convert into quality performance and
professional success.
I must acknowledge the immense gratitude of my parents who have been the
fountain of support, love and my existence itself.
I must also acknowledge that I assume myself a responsible National and
Global citizen and wish to contribute my part share to the growth and
development of the Nation and the Human society across the globe.
Md. Meraj Taj
B.B.M – 3rd

3. CONTENT
i. Acknowledgement
ii. Certificate from K.L Gupta Hero Moto Corp
iii. Guide Certificate
iv. Executive Summary
CHAPTER: 1 INTRODUCTION
1. Introduction
2. Introduction to Study
3. Importance Of Study
4. Introduction to Hero Moto Corp
5. Introduction to K.L Gupta, Gaya, Bihar
CHAPTER: 2 LITERATURE REVIEW
1. Introduction to Performance Appraisal
2. Importance of Performance Appraisal
3. Methods of Performance Appraisal
CHAPTER: 3 RESEARCH METHODOLOGY
1. Research Design
2. Research Process
3. Research Sampling
4. Data Collection
5. Research Limitations
CHAPTER: 4 FINDING & DATA INTERPRETATION
1. Findings
2. Conclusion
CHAPTER: 5 RECOMMENDATIONS & SUGGESTIONS
CHAPTER: 6 ANNEXURE
BIBLIOGRAPHY

4. PREFACE
This project is empirical presentation of “Performance Appraisal in K.L Gupta
HERO” Gaya”.
Performance appraisal occupies an important place in an organization. Today
almost in every business organization appraisal system is conducted with
different techniques to maintain the performance of an employee who is
working in an organization. Every employee wants to know that the effort
which he is giving to organization is valuable or not.
The organization uses various techniques to trace out the performance of
employees to utilize the best effort of an employee. They even conduct survey
with customer know over it.
This report is also based on the survey, which is conducted by our group
member (Md. Meraj Taj , Vikash Pathak , Md. Mahtab Alam Khan , Rakesh
Raushan , Haider Khan, and Shahnawaz Alam) through interview with
manager.

5. EXECUTIVE SUMMARY
The main objective of this project is to check the Appraisal System of
executives and the workers in an organization is using a correct method or not.
It was necessary to use the techniques of Performance Appraisal should be
marked in these segment. The Performance Appraisal mostly done in a
company of Hero Moto Corp. organization. The study of employees Appraisal
systems insights the behavior relating to the organization.
The first section of my report deals with a detailed company profile. It includes
the company’s history: its activities and operations, organizational structure,
etc. this section attempts to give detailed information about the company and
the nature of its functioning.
The second section deals with performance appraisal. In this section, a brief
conceptual explanation to performance appraisal is given. It contains the
definition, process and significance of performance appraisal.
In the third section of my report, I have conducted a research study to evaluate
the process of performance appraisal at Hero Moto corp. This section also
contains my findings, conclusions, suggestions and feedback.
The fourth and final section of this report consists of extra information that I
related to the main contents of the report. These annexure includes the
Questionnaire on the basis of which the primary data was collected and
research study was conducted.

6. CHAPTER: 1 INTRODUCTION

7. INTRODUCTION:
Performance appraisal represents one of the most complex areas facing
today’s managers when it comes to managing their employees. Many studies
have demonstrated an unusually large impact of the performance Increment
and the level of Motivation of workers, while the level of Motivation has an
impact on productivity and hence, also on performance of business
organizations. Unfortunately, in our region performance appraisal has not still
received the proper attention from neither scholars nor managers of various
businesses.
Introduction To The Study:
A recent report excerpt published in TIMES ASCENT, on 19 Feb 2014 about
research of TECHNOPAK’S VOCATIONAL EDUCATION & TRAINING (V.E.T)
Outlook 2014, discovers that India ranks among the lowest in terms of
productivity, within the Asian cohort. In this global context Indian Productivity
is low and this has relationship with employees’ Job commitment, Motivation
and Job Satisfaction.
Hence, Performance Appraisal is an important to K.L Gupta i.e. HERO MOTO
CORP, in one important automobile Industry, would certain offer the current
representation of performance appraisal of employees in Indian Business Set
up. We found it very important and relevant to work to know the performance
level of employees, with the purpose to understand the factors of appraisal.
Although the impact of performance appraisal is traverse Performance,
Productivity, Work Efficiency, Profitability and contribution to Nation Growth,
yet the research is limited to discover only the appraisal Level of Employees in
K.L Gupta.
To conduct this empirical study we developed questionnaire on this basis of
methods of performance appraisal are as follows:
1. 360 method

8. 2. M.B.O
3. Cost Accounting
4. Confidential
The main aim of our study is to appraise that whether the performance
appraisal of an employee is successful in Indian context or not. If not then it is
important to provide a better system. For this purpose I critically examined the
performance appraisal activities of K. L. Gupta Hero Moto Corp Gaya, and its
impact on the employees who are working in the organization and we have to
observe that performance appraisal. So that the some suggestion and finding
can be analyzed.
To carry out the study at Hero Moto Corp, we framed the following objectives
1. Identification of the technique of performance appraisal applied and
followed in Hero Moto Corp.
2. Employee (Manager) attitude towards the present appraisal system.
3. Review of the current appraisal system in order to
i. Enhance Productivity
ii. Attain Global Standards
iii. Create Motivation
iv. Career Growth
4. To provide suggestions & recommendations from the study conducted

9. IMPORTANCE TO THE STUDY
1. As there was no same research work previously done on the Topic by
any student of Magadh University, it was important to do a research on
the same and come up with the actual scenario of performance
appraisal at K.L Gupta, representing performance appraisal in
automobile Industry across
2. In our region, in Bihar and the like states, majority of graduates tend to
prepare for managing profile, due to lack of enough Career
Opportunities Awareness. This is one of the reason that is why
westerners taunt that India only produce executives.. In this tendency, it
became more relevant and important for our Magadh, Bihar and the
Indian youth, to know what would the Performance Level, their total
Productivity and their contribution to the national Growth, after even
they all get into industry interface.
3. National Skills Development Corporation(NSDC), TECHNOPAK’S
VOCATIONAL EDUCATION & TRAINING (V.E.T), Research Team of TIMES
OF INDIA etc, all report similar type of dismal scenario that India ranks
among the lowest in terms of Productivity and India is working at half
Efficiency and half Productivity. In this context also involvement on
employees and performance of the employees has an important role
play to contribute to the organizational productivity as well as National
Productivity.
As the title suggest that this study is to check the appraising method of
employee working in organization. This has following importance:-
 Identify skillful employees
 Impact of employees in an organization
 Applied techniques of appraisal for the employees
 Analysis of Methods used at different levels of employees
 Know the actual Performance Appraisal System for employees
 Know the relationship between Top Management and Executive

10. INTRODUCTION TO HERO MOTOCORP LTD.
Hero Motorcorp Ltd. (Formerly Hero Honda Motors Ltd.) is the world’s largest
manufacturer of two - wheelers, based in India.
In 2001, the company achieved the coveted position of being the largest two-wheeler
manufacturing company in India and also, the 'World No.1' two-wheeler
company in terms of unit volume sales in a calendar year. Hero
Motorcorp Ltd. continues to maintain this position till date.
The story of Hero Honda began with a simple vision - the vision of a mobile
and an empowered India, powered by its two wheelers. Hero Motorcorp Ltd.,
company's new identity, reflects its commitment towards providing world class
mobility solutions with renewed focus on expanding company's footprint in the
global arena
Hero MotoCorp’s mission is to become a global enterprise fulfilling its
customers' needs and aspirations for mobility, setting benchmarks in
technology, styling and quality so that it converts its customers into its brand
advocates.
The company will provide an engaging environment for its people to perform
to their true potential. It will continue its focus on value creation and enduring
relationships with its partners.
Hero MotoCorp’s key strategies are to build a robust product portfolio across
categories, explore growth opportunities globally, continuously improve its
operational efficiency, aggressively expand its reach to customers, continue to
invest in brand building activities and ensure customer and shareholder
delight.
The new Hero is rising and is poised to shine on the global arena. Company's
new identity "Hero MotoCorp Ltd." is truly reflective of its vision to strengthen
focus on mobility and technology and creating global footprint.
Building and promoting new brand identity will be central to all its initiatives,
utilizing every opportunity and leveraging its strong presence across sports,
entertainment and ground-level activation.

11. Hero MotoCorp two wheelers are manufactured across 3 globally
benchmarked manufacturing facilities. Two of these are based at Gurgaon and
Dharuhera which are located in the state of Haryana in northern India. The
third and the latest manufacturing plant are based at Haridwar, in the hill state
of Uttarakhand.
The Company's growth in the two wheeler market in India is the result of an
intrinsic ability to increase reach in new geographies and growth markets. Hero
MotoCorp’s extensive sales and service network now spans over to 6000
customer touch points. These comprise a mix of authorized dealerships,
service & spare parts outlets and dealer-appointed outlets across the country.
“Hero” is the brand name used by the Munjal brothers for their flagship
company, Hero Cycles Ltd. A joint venture between the Hero Group and Honda
Motor Company was established in 1984 as the Hero Honda Motors Limited
at Dharuhera , India. Munjal family and Honda group both owned 26% stake in
the Company.
During the 1980s, the company introduced motorcycles that were popular in
India for their fuel economy and low cost. A popular advertising campaign
based on the slogan 'Fill it – Shut it – Forget it' that emphasised the
motorcycle's fuel efficiency helped the company grow at a double-digit pace
since inception. In 2001, the company became the largest two-wheeler
manufacturing company in India and globally. It maintains global industry
leadership till date. The technology in the bikes of Hero Moto corp (earlier
Hero Honda) for almost 26 years (1984–2010) has come from the Japanese
counterpart Honda.
 1956—Formation of Hero Cycles in Ludhiana(majestic auto limited)
 1975—Hero Cycles becomes largest bicycle manufacturer in India.
 1983—Joint Collaboration Agreement with Honda Motor Co. Ltd. Japan
signed Shareholders Agreement signed
 1984—Hero Honda Motors Ltd. incorporated
 1985—Hero Honda motorcycle CD 100 launched.
 1989—Hero Honda motorcycle Sleek launched.
 1991—Hero Honda motorcycle CD 100 SS launched.
 1994 – Hero Honda motorcycle Splendor launched.
 1997—Hero Honda motorcycle Street launched.
 1999 – Hero Honda motorcycle CBZ launched.
 2001 – Hero Honda motorcycle Passion and Hero Honda Joy launched.

12.  2002—Hero Honda motorcycle Dawn and Hero Honda motorcycle Ambition
launched.
 2003—Hero Honda motorcycle CD Dawn, Hero Honda motorcycle Splendor
plus, Hero Honda motorcycle Passion Plus and Hero Honda motorcycle
Karizma launched.
 2004—Hero Honda motorcycle Ambition 135 and Hero Honda motorcycle
CBZ* launched.
 2005—Hero MotoCorp Super Splendor, Hero Honda motorcycle CD Deluxe,
Hero Honda motorcycle Glamour, Hero Honda motorcycle Achiever and
Hero Honda Scooter Pleasure.
 2007—New Models of Hero Honda motorcycle Splendor NXG, New Models
of Hero Honda motorcycle CD Deluxe, New Models of Hero Honda
motorcycle Passion Plus and Hero Honda motorcycle Hunk launched.
 2008—new Models of Hero Honda motorcycles Pleasure, CBZ Xtreme,
Glamour, Glamour Fi and Hero Honda motorcycle Passion pro launched.
 2009—New Models of Karizma: Karizma – ZMR and limited edition of Hunk
launched
 New Hero 2010—new Models of Hero Honda motorcycle Splendor pro
and Honda motorcycle Hunk and New Hero Honda Motorcycle Super
Splendor launched.
 2011—New Models of Hero Honda motorcycles Glamour, Glamour FI, CBZ
Xtreme, Karizma launched. New licensing arrangement signed between
Hero and Honda. In August Hero and Honda parted company, thus forming
Hero Moto Corp and Honda moving out of the Hero Honda joint venture. In
November, Hero launched its first ever Off Road Bike Named Hero
"Impulse".
 2012-New Models of Hero Moto corp Maestro the Masculine scooter and
Ignitor the young generation bike are launched.
 2013-Hero Moto Corp unveiled line-up of 15 updated products including
Karizma R, ZMR, Xtreme, Pleasure, Splendor Pro, Splendor iSmart, HF
Deluxe ECO, Hero Moto corp Super Splendor, Passion Pro and Xpro,
Glamour and Glamour FI etc. It also introduced three new technologies-
Engine Immobilizer in new Xtreme, Integrated Braking System (IBS) in new
Pleasure and i3S (Idle Stop and Start System) in new Splendor iSmart

13. INTRODUCTION TO K.L GUPTA, GAYA
K.L Gupta is one of the leading names in the Automobiles Business in the state
of Bihar. It was established in 1987 at centre of Gaya city. It has 18 product of
Hero MotoCorp. It has obtained Authorised Dealership of Hero Moto Corp at
Gaya city. One comes across all popular products of Hero bikes at K.L GUPTA
Hero MotoCorp’s showroom at Gaya. It has 38 employees in showroom and
105 employees in workshop.

14. CHAPTER: 2 LITERATURE REVIEW

15. INTRODUCTION TO PERFORMANCE APPRAISAL
Performance appraisal is an important device for employees and management
to know what he or she has done in the current job and what they can improve
on. It also provides a way for management to improve their performance, their
effectiveness and the productivity of their staff.
OPINION OF OUR GROUP
“Performance Appraisal is an important tool for Business success as well as a great
individual success. It offers continuous control over progress towards individual and
organizational goals”. – MD.MERAJ TAJ
“Performance Appraisal is the technique of fair rating of the employees to evaluate
performance and potential for development of a group member and the
organization”. - VIKASH PATHAK
“Performance Appraisal is a systematic way to evaluate the skills, abilities,
knowledge, productivity, human relation etc in employee to perform his current job
well”. – RAKESH RAUSHAN
“Performance Appraisal is a technique to improve the efficiency of an organisation
by attempting the maximum efforts from individuals employed on it”.
-MAHTAB ALAM KHAN
“Performance Appraisal is concerned with determining the differences of
performance among the employees working in the organisation”.
- SHANAWAZ KHAN
“Performance Appraisal determines who shall receive merit increases, council
employees on their improvement, determines training needs, determines
promotability identifies those who should be transferred”.
- HAIDER KHAN
It is a systematic and objective way of judging the relative worth or ability of an
employee in Performance of his/her task. It is one of the important functions
of Human Resource Management these days. Human Resource Management is
that area of management which deals with human being and there changing
behavior. It is the assessment of an individual’s performance in a systematic
way, the performance being measured against such factors like job knowledge,
quality and quantity of output, initiative, leadership, abilities, supervision,

16. dependability, co-operation, judgment, versatility, health and the likes. This is
concerned with determining the performance among the employees working
in the organization. It is a powerful tool to calibrate, refine and reward the
performance of the employee. It helps to analyze his achievements and
evaluate his contribution towards the achievements of the overall
organizational goals as well as individual goal. “Performance Appraisal is
defined as the process of assessing the performance and progress of an
employee or a group of employees on a given job and his / their potential for
future development”. It consists of all formal procedures used in working
organizations and potential of employees by focusing the attention on
performance, performance appraisal goes to the heart of personnel
management and reflects the management's interest in the progress of the
employees.
MEANING OF PERFORMANCE APPRAISAL
It is concern with determining the performances among the employees
working in the organisation. The appraisal is done by individual immediate
superior. Thus it is continuous and scientific process of examination of the
strength and weakness of an employee in terms of his job. Everyone in the
organisation who rates other is also rated by his superior. Performance
appraisal determines who shall receive merit increase on their improvement,
determines training needs, determines promotion abilities, and identifies
those who should be transferred.

17. DEFINITION OF PERFORMANCE APPRAISAL
On the subject many author have defined performance appraisal according to
their view. Out of them some of the important definition has been discussed
here under:-
According to Beach, “Performance Appraisal is the systematic evaluation of
the individual with regard to his or her performance on the job and his
potential for development”.
According to Flippo, “Performance Appraisal is the systematic, periodic and
impartial rating of an employee’s excellence in matter pertaining to his present
job and his potential for a better job”.
According to Dole Yoder, “Performance Appraisal refers to all formal
procedures used in working organisations to evaluate personalities and
contributions and potential of group members”.
According to Heyel, “Performance Appraisal is the process of evaluating the
performance and qualifications of the employees in terms of requirements of
the job for which he is employed for purposes of administration including
placement selection for promotions providing financial rewards and other
actions which require differential treatment among the members of the group
as distinguished from actions affecting all member equally”

18. CHARECTERISTICS OF PERFORMANCE APPRAISAL
 Performance appraisal is a continuous process.
 It is a systematic evaluation of an employee in terms of his job.
 It is scientific and objective study.
 Formal procedure is used in the study of performance appraisal.
 It is an ongoing and continuous process where in the evaluation are
arranged periodically according to a definite plan.
 The main purpose of performance appraisal is to secure information,
necessary for making objective and correct decision of an employee’s
training and development.

19. STEPS OF PERFORMANCE APPRAISAL
There are few steps or component to appraise the performance of an
employee.
SET STANDARD
MEASURE ACTUAL PERFORMANCE
COMPARE ACTUAL STANDARD
FEEDBACK
MANAGEMENT EMPLOYEE
TAKE CORRECTIVE MEASURES
Figure 1: - Steps Of Performance Appraisal
1. Set Standard: - As first step standard performance for all employees or
established in terms of productivity quality, quantity, etc. Employees try to
achieve the target every month. They know what to do how much to do and
within time to do.
2. Measure Actual Performance: - Then actual performance of each
individual employee is measured. Employees may vary to their performance
as per their capabilities.
3. Compare Actual Standard: - The actual performance is compared with
the standard performance to understand the difference, whether less than
the target, equal to the standard / target or more than the standard.

20. 4. Feedback: - Performance feedback is shared with employee so that they
may know where they actually stand. Performance is appreciated, problems
are discussed and training needs are analyzed.
Feedback is also forwarded to the H.R department in order to
take decisions regarding compensation, training, transfer or promotion.
5. Take Corrective Measure: - Final step of performance appraisal is to
take action to solve the problem. Counseling, training, transfer, promotion,
demotion or termination decision is taken, as per the requirement.

21. IMPORTANCE OF PERFORMANCE APPRAISAL
Performance Appraisal determines who shall receive merit increase counsels
employees on their improvement determines training needs, determines
training needs, determines promotion abilities, Identifies those who shall be
transferred. Following are the some importance of performance appraisal:-
PERFORMANCE
FEEDBACK
IMPORTANCE
OF
PERFORMANCE
APPRAISAL
TRAINING AND
DEVELOPMENT
VALIDATING
SELECTION
PROCESS
PROMOTION
LAY OFF TRANSFER
HUMAN
RESOURCE
PLANNING
CARREER
DEVELOPMENT
COMPENSATION
Figure 2:- Importance of Performance Appraisal

22. 1. Performance Feedback: - Employees are interested to know how
well they are doing and they can perform better. They want feedback to
improvement, promotion and incentives. Feedback give them
satisfaction and motivation.
2. Training And Development: - On the basis of performance appraisal,
decisions are taken for providing training and development as per the
requirement of employees.
3. Validating Selection Process: - Performance Appraisal is a means to
validate internal training, promotion and external hiring. This helps find
out the suitable tools of recruitment and selection.
4. Promotion: - performance appraisal enables to know which employee
should be given promotion.
5. Transfers: - transfer often involves change in job responsibilities. So
this is important to know who can take perfect responsibilities.
6. Lay off: - performance appraisal helps in recognition of the poorest
performer to lie off.
7. Compensation: - On the basis of performance appraisal compensation
such as salary increment, incentive etc is decided.
8. Human Resource Planning: - performance appraisal helps recognize
employee to be promoted, transferred, laid off or terminated.
Management decides future employment plan on the basis of this data
knowledge.
9. Career Development: - This enable manger to coach and counsels
employee in their career development.

23. METHODS OF PERFORMANCE APPRAISAL
There are many methods of performance appraisal into two types:-
METHODS OF
PERFORMANCE
APPRAISAL
TRADITIONAL METHODS
•RANKING SYSTEM
•GRADING SYSTEM
•PAIR COMPARISON
•CRITICAL INCIDENT
•FORCED CHOICE
•FORCED DISTRIBUTION
•GRAPHIC RATING SCALE
•CONFIDENTIAL REPORT
•CHECKLIST
MODERN METHODS
•M.B.O
•360` METHOD
•COST ACCOUNTING
•ASSESSMENT CENTRE
•B.A.R.S
Figure 3:- Methods of Performance Appraisal

24. A. Traditional Methods
i. Ranking system- According to Dessler (2009), ranking method is a
method is a system in which employees are ranked from best to worst
on a particular, until all are ranked.
ii. Grading system – In this system of performance appraisal employees
are evaluated as per different grades like Grade-A, Grade-B, and Grade-
C ---------etc.
iii. Pair comparison method- In this method employees are compared
with each other in terms of performance and the employee who gets
maximum times rank is considered the best employee.
iv. Critical Incident Method- This techniques was developed by “Fitts
and Jones” in 1947 for classifying pilot error experiences in reading and
interpreting aircraft instruments.
According to Dessler, critical incident method is keeping a record of
uncommonly good or undesirable employee’s work behaviour and
renewing it with standard.
v. Graphical Rating Scale- This was developed by Peterson, 1922.
According to Deshler (2011), “Graphic Rating Scale is a scale that lists a
number of traits and rated by identifying the score that best describes
his level of performance for each trait”.
Example:-
S.NO TRAITS POOR GOOD SOMETIMES
VERYGOOD
ALWAYS
V.GOOD
1. Reliability
2. Consistency
3. Practicality
4. Behaviour
relationship
vi. Confidential Report- A traditional method used in public sector
companies which is maintained annually. This performance appraisal
report is prepared confidentially and is forwarded to higher

25. management first. Then, if in case of negative appraisal injury is
established and employee is inquired to show cause.
vii. Checklist- In this a checklist of statements of traits of employee in
terms of yes/no based questions is prepared whether the performer has
these traits or not. Here the ratter only does reporting or checking. H.R
department does the actual evaluation.
e.g.:- 1. He is regular yes no
2. Good job knowledge yes no
3. Maintain relationship yes no
4. Achieves target yes no
5. Team skills (good) yes no
viii. Forced choice method – The series of statements arrangements in the
blocks of more are given and the ratter indices which statements is true or
false. The rater is forced to make a choice.
ix. Forced Distribution Method – A list of rating scale is developed and all
the employees are evaluated on those skills only. The rater is forced to the
employees on all the points on the scale evaluate.
B. Modern Method
i. Management By Objective (M.B.O) – This method propounded by
“Peter F Drucker”. In this method Performance is rated by the
achievement of objective, stated by the management. Super Goals,
Organisational Goals are declared and individual goals are declared and
individual goals are identified.
In M.B.O, organisational goals are identified Standard Performance is
established, Actual is measured, compared and feedback is shared with
employees. Corrective measures are finally taken as per the
requirements.

26. GOAL SETTING
SET STANDARD
MEASURE ACTUAL
COMPARISON
FEEDBACK
MANGEMENT EMPLOYEE
CORRECTIVE MEASURES
Figure: - Management By Objective
STEPS OF MANAGEMENT BY OBJECTIVE
1. Goal Setting – Goals are set for each individual. The superior and
subordinates jointly establish these objectives.
2. Performance Standard- Standard is set for the employees as per
time limit. When employees start performing they came to know what is
to be done, what has been done and what remains to be done. They
understand their targets clearly.
3. Measure Actual Value- Actual achieved target is measured to
understand performance.
4. Comparison- The actual performance is compared with the target. This
enables find out problem and determine straining needs.

27. 5. Feedback- If the actual performance deviates from the standards, the
corrective measures are initiated. Periodic reviews are conducted in a
constructive rather than punitive manner. Feedback is shared and
counselling, training, transfer, promotion etc take place as required.
ii. 360 Performance Appraisal- This method was first developed and
formally used by General Company of U.S.A in 1992. This is feedback
based method which is used to ascertain training and development
needs rather than pay increase.
In 360 Appraisal performance information such as employees, skills,
abilities and behaviours are called from all around the employee, i.e.
1. Superior
2. Subordinate
3. Peers
4. Customer
PEERS SUPERIOR
CUSTOMER SUBORDINATE
Figure: - 360 Appraisal System

28. As these participant appraises provides information or feedback on an
employee by completing survey questionnaires designed for the purpose.
All the information is then completed through the computerised system to
prepare individual reports.
iii. Cost Accounting Appraisal- This method evaluates an employee’s
performance from the monetary benefits the employee yields to the
organisation derived from the employee.
The costs on employee are as follows:-
a. Cost on requirement
b. Cost on training
c. Cost on the maintenance
d. Cost on compensating the employee
Factors
I. Unit wise average value of product.
II. Quality of the product produced by the employee’s.
III. Overhead cost incurred.
IV. Accidents, Damage, Errors, Spoilage, and Wastage caused through
unusual wear and tear.
V. Human relationship with other.
VI. Cost of the time the supervisor spent in appraising the employee.
iv. Assessment Centre- This method was introduced in 1930 in Germany
to appraise army to business arena in 1960. In India it is a recent origin.
An assessment centre is a central location where manager supported by
psychologists and H.R specialist for 2-3 days, by involving them in
various simulated situations

29. Process of Assessment Centre Method
1. Simulation Participated by managers at one central place
2. Continuous Observation by senior managers, psychologist and H.R
specialists for 2-3 days
3. Assesses are asked to participate in Basket exercises , work groups ,
simulations and role playing which are essential for successful
performance on job
4. Assesses behaviour are recorded by raters and they meet together to
discuss their collected data and observation
5. On the basis of observation assessment are made them
6. At the end of the process feedback in terms of strengths and weakness is
also provided to the assesser
Simulation Participated by managers at one central place
Continous Observation by senior managers,psychologist and H.R specialists for 2-3 days
Assesses are asked to participate in Basket exercises , work groups , simulations and role
playing which are essential for sucessful performance on job
Assesses behaviour are recorded by raters and they meet together to discuss their collected
data and observation
On the basis of observation assessment are made them
At the end of the process feedback in terms of strengths and weakness is also provided to
the assesser
Figure: - Assessment Centre Method

30. v. Behaviourally Anchored Rating Scale (B.A.R.S) - This method was
developed by south and Kendall to provide a better method of rating
employees. This is different from standard rating scales. This focussed
on behaviours that are considered important for job task.
COMPONENTS
Behaviour- Effective and Ineffective Behaviour related to job are collected
are developed.
Expert Group- A Group of Subject Matter Experts (S.M.E) is asked to define
the expected behaviour on the job. So that their performing behaviour can be
compared with the defined Behaviour.
Scale- Usually a 5-9 point scale is developed in order to measure the
effectiveness of the Job Behaviour.
Rater- On the defined behaviour and scale a ratter does Appraisal. In B.A.R.S
method each and every individual is assessed on each defined behaviour. All
scales are applied to measure the effectiveness of behaviour.
BEHAVIOUR
EXPERT GROUP
SCALE
RATER
FIGURE: B.A.R.S

31. ADVANTAGE OF PERFORMANCE APPRAISAL
 Measures an employee’s performance.
 Helps in objective declaration and its achievement.
 Motivates the employees.
 Facilitates the requirement of training.
 Helps in identification of personal weakness and strengths.
 Helps in personal and organisational career planning.
 Provides and creates leadership skills.
 Improve a good relationship between organisational employees and
reporting manager.
 Helps in resolving misunderstanding.
 It influence and increase potential of an employee to perform in a better
manner.
 It helps in personal or organisational decision making.
 It helps in decision making for which employee is able to promoted.
 It helps in decision making such as to provide compensation, to facilitate
training, promotion and development of or organisation.
 It helps in taking an organisational responsibility.
 It helps in development of negotiations skill.
 It helps in improvement of communication skill.
 Complete a written evaluation that rates performance according to the
stipulated criteria.
 Meet the employee to discuss the evaluation and suggest means of
improving performance.

32. CHAPTER: 3 RESEARCH METHODOLOGY

33. RESEARCH METHODOLOGY
Research in common parlance refers to search for knowledge. Redman and
Mory define research as a “Systematized effort to gain new knowledge.
Research is an academic activity and such the term should be used in technical
sense. According to Clifford Woody, Research comprises defining and
redefining problem, formulating hypothesis or suggested solutions; collecting,
organizing and evaluating data; making deductions and research conclusions;
and at last carefully testing the conclusions to determine whether they fit the
formulating hypothesis. Research is thus an original contribution to the existing
stock of knowledge making for its advertisement. It is pursuit of truth with the
help of study, observation, comparison and experiment. In short the search for
knowledge through objective and systematic method of finding solution to
problem is research.
RESEARCH DESIGN
A Research design is the arrangement of conditions for collection and analysis
of data in a manner that aims to combine relevance to the Research purpose
with economy in procedure. In fact the Research design is the conceptual
structure within which Research is conducted: it constitutes the blueprint for
the collection measurement and analysis of data. It must be able to define
clearly what they want to measure and must find adequate methods for
measuring it along with a clear cut definition of population wants to study.
Since the aim is to obtain complete and accurate information in these studies,
the procedure to be used must be carefully planned. The research design must
make enough provision for protection against bias and must maximize
reliability with due concern for the economical completion of the search study.
Research design is a conceptual structured within which research is conducted.
It constitutes the blue print for the collection, measurement and analysis of
data.
Research design is must to focus attention on the following:
 Formulating the objective of the study
 Designing method of data collection
 Selecting the sample
 Data collection
 Processing and analyzing the data
 Finding and Descriptions

34. Descriptive research is adopted for this study. It includes surveys and fact
finding enquiries of different kinds. The major purpose of descriptive research
is description of the state affairs as it exists at present. The main characteristic
of this method is that the 20 researcher has no control over the variables. He
can only report what has happened or what is happened. The major purpose
of Descriptive research is description of the state of affairs, as it exists at
present.
 Descriptive research concerns a univariate question in which we ask
about or state something about the size, form, distribution, or existence
of a variable.
 The main characteristics of this method are that the researcher has no
control over the variables; he can only report what has happened or
what is happening. Descriptive Research also includes attempts by
researcher to discover causes even when they cannot control the
variable
RESEARCH SAMPLING
The Study is primarily based on the primary data collected through
Questionnaire and interview from Hero Moto Corp. Ltd. (K.L Gupta, Gaya)
Manager and Executives.
SAMPLING PLAN
Sample Area : Magadh
Sample Place : K .L Gupta, Gaya
Duration : 3 week

35. DATA COLLECTION METHOD
For achieving the specific objectives of this study, data were gathered from
both primary and secondary sources.
Primary Data – The instrument used to collect primary data is
through questionnaire from the Manager and Executive. It gives first hand
information to the researcher. In this study, a questionnaire has been prepared
with a view to analyze the work
 Direct conversation with the respective Manager and Executive of the
Departments.
 Face to face conversation with the executives.
 Employee’s opinion collected through Questions.
 Observation of activities at organisations.
Secondary Data –
 Various Records of the company.
 Website of Hero Moto Corp. Ltd.
 Different types of system information.
 Daily Performance Appraisal form of company.
 Customer feedback form for knowing the response of customer in
respect of employee and organisation.

36. RESEARCH TOOLS
1. Questionnaire- The questionnaire is structured in two different forms.
Some are partly structured while some are partly unstructured. Some
are opening ended while some are close ended. Structured
Questionnaire is selected as the tool for data collection, which included
a set of various types of Questions concerning different aspects of the
subject for the study. Several types of Questions were included in the
Questionnaire such as Open Ended Questions, Dichotomous and
Multiple Choice questions.
2. Interview- Managers and Executives were interviewed by the
researchers. With the help of above questionnaire and through their
opinion about performance appraisal adopted by the company and the
technique for appraising employees. Following ideas are revealed during
the interview of Manager and Executive
- Performance is measured according to the number of bike
sales in a week.
- Enquiry maintenance is necessary for all employees because
one enquiry means one customer and one enquiry lapse
means one customer lapse.
- Employees are sent for campaign in city for promoting sale
for enhancing the capability of employee.
- Top level checks the employees through pertaining the
employee confidence because if he has a confidence he is
liable to give higher output.
3. Survey- The survey on the topic “Performance Appraisal towards Hero
Moto Corp Ltd. towards K.L Gupta employees” was carried by personal
interview with Managers and Executives individually by our group
member.
Some of the Major points were asked in terms of getting the data are
as follow:-
- Method uses to appraise employee.
- Techniques used for top level and middle level.
- No. of times Performance Appraisal conducted.

37. - Appraisal conducted in which hour.
- Responsible for conducting appraisal program.
- Inform their employee about appraisal program.
- Incentives are given on the basis of performance appraisal.
- Factors considered for appraising employee.
- Appraisal help in improving employees job performance.
4. Research Advantages :-
a. Knowing about E-commerce which are uses for understanding the
customer about the product.
b. Attendant gives the information about the product.
c. V Lead techniques are used for appraising employees.
d. Rapport Building through the Hero Good life.
e. Make loyalty through gifts and better servicing.
f. We have knowing beyond our own topic.
5. Research Limitation :-
a. Limited Management technique
b. Does not have Effective Time Management
c. Lack of knowledge about performance appraisal program
d. Distracted with the topic of performance appraisal

38. CHAPTER: 5 DATA FINDING AND ANALYSIS

39. DATA FINDING AND ANALYSIS
Analysis-1: - In total 144 Employees are working here and the following
type of Appraisal systems are conducted at different levels of employees in K.L
Gupta, Gaya (Hero Moto Corp.)
TOTAL NUMBER OF
EMLPOYEES
NUMBERS OF
EMPLOYEES
LEVELS
APPLIED METHOD
144
EMPLOYEES
34
SALES EXECUTIVE
1.360 APPRAISAL
2. M.B.O
3.COST ACCOUNTING
MECHANICAL
6
SUPERVISOR
1.M.B.O
2.360 APPRAISAL
2
HEAD MECHANIC 1.M.B.O
2.360 Appraisal
97
TECHNICIAN
1.M.B.O
2.360 Appraisal
FINANCIAL
2
FINANCE EXECUTIVE
1.360 Appraisal
2.M.B.O
3.Cost Accounting
MANAGEMENT
3
MANAGER
1.M.B.O
2.360 Appraisal
3.Confidential
2
TEAM LEADER
1.M.B.O
2.360 Appraisal
3.Confidential

40. Graphical Representation of number of employee working at
K.L Gupta(Hero Moto Corp Ltd) :
Interpretation:-
NUMBER OF EMPLOYEES IN %(144)
24%
73%
1% 2%
SALES EXECUTIVE
MECHANICAL
FINANCIAL
TOP MANAGEMENT
In the pie chart diagram, we can see that, the total no of employees (i.e.
144=100%) are working in an Organization Hero Moto Corp at K.L Gupta. In
this organization, the methods 360 appraisal system, management by objective
and cost accounting are applied on Sales Executive (i.e. 24% of total
employees). In Mechanical department there is 73% of total employees are
working, the methods 360 appraisal system, and management by objective and
are applied on them. The methods applied on those employees who are
working in Finance department(i.e. 1% of total employees) are management
objective,360 appraisal system and cost accounting while the performance
appraisal methods such as management by objective, 360 appraisal and
confidential are applied on Top Level of Management ( D.S.M and N.
MANAGER) i.e. 2% of total employees.

41. 1. Bar Diagrammatic Representation of methods applied at K.L
Gupta employees :
23.61%
sales executive top management finance mechanical
23.61%
72.91%
2.08%
1.40%
APPLIED METHODS
1.40%
management
by objective cost
Interpretation :-
23.61%
72.91% 72.91%
2.08%
1.40%
accounting 360 appraisal
2.08%
system confidential
In this bar diagram showing the methods adopted by HERO MOTO CORP AT K.L
GUPTA at different levels in which we have seen that M.B.O and 360 Appraisal
are used in all the levels, while cost accounting are used for sales executive
and confidential methods are used for management body .

42. ANALYSIS 2: Three types of Performance Appraisal Methods are adopted
for the appraisal of sales executive
NUMBER OF EMPLOYEES APPLIED METHOD NUMBER OF EMPLOYEE IN
PERCENTAGE
34
MANAGEMENT BY OBJECTIVE
23.61%
360 Appraisal System
COST ACCOUNTING
DIGRAMATIC REPRESENTATION OF SALES EXECUTIVE:
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
SALES EXECUTIVE
M.B.O 360 COST ACCOUNTING
SALES EXECUTIVE
Interpretation: -In this diagram we can see that, the performance appraisal
methods applied on sales executive (i.e.23.61%) in HERO MOTO CORP (K.L
GUPTA) are Management by Objective, 360 Appraisal method and Cost
Accounting.

43. Analysis – 3: Different methods are used for mechanical department in
K.L Gupta, Gaya
Number of
Employee
Mechanical
105
6
Supervisor
1.M.B.O
2.360 APPRAISAL
2
Head Mechanic
1.M.B.O
2.360 APPRAISAL
97
Technician
1.M.B.O
2.360 APPRAISAL
DIAGRAMATIC REPRESENTATION OF MECHANICAL DEPARTMENT:
100.00%
90.00%
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
M.B.O 360
Interpretation:-
SUPERVISOR
HEAD MECHANIC
TECHNICIAN
In this diagram, we have analyzed that performance appraisal methods which
are used in mechanical departments as M.B.O and 360 Appraisal used for
Supervisor, Head Mechanic and Technician.

44. Analysis 4:- Two methods are used for finance department to
appraise the Employees.
NUMBER OF
EMPLOYEES
FINANCE EXECUTIVE
2
360 APPRAISAL SYSTEM
1.40%
M.B.O
DIAGRAMATIC REPRESANTION OF FINANCE DEPARTMENT:
FINANCE
1.40% 1.40% 1.40%
1.60%
1.40%
1.20%
1.00%
0.80%
0.60%
0.40%
0.20%
0.00%
360 APPRAISAL M.B.O COST ACCOUNTING
FINANCE
INTERPRETATION: In this graph we can see that in the finance department
of HERO MOTO CORP in K.L GUPTA. The performance appraisal systems are
applied as M.B.O and 360 Appraisal systems.

45. ANALYSIS 5: Three methods are used for top level management for
appraisal
NUMBER OF EMPLOYEES METHODS APPLIED NAUMBER OF EMPLOYEES IN
PERCENTAGE
4
CONFIDENCIAL
2.08% M.B.O
360
GRAPHICAL REPRESENTATION OF TOP MANEGEMENT:
2.50%
2.00%
1.50%
1.00%
0.50%
0.00%
TOP MANEGEMENT
CONFIDENTIAL M.B.O 360
TOP MANEGEMENT
INTERPETATION: In this graphical representation, we can see that, at top
level of management there are 4 employees working. The methods applied on
these employees are Confidential, M.B.O and 360.

46. CHAPTER: 5 RECOMMENDATION AND SUGGESTION
1. Training appraisers are essential for achieving better results with
performance appraisal. The training should be designed to improve
appraiser`s capabilities to; observe, conduct constructive feedback,
listen, support, set objective and ask appropriate questions. Some
benefits that can be achieved by appraiser`s training are as:
 Improve the understanding of the system, the forms and technology
to be applied.
 Increase accuracy and reduce common judgment errors.
 Enhance appraiser`s self confidence about his rating skills and
improve the skill level through practice and feedback.
2. An organization`s leadership has the responsibility to develop positive
culture to facilitate the acceptance of performance appraisal among the
manager and their employees.
3. For the interaction between manager and employees and for the
betterment of the organization an effective communication should be
maintained.
4. The problem of unequal standards can be minimized by ensuring that
the appraisal criteria are job oriented, communicating performance
expectations to the employees before the appraisal review.
5. Maintain proper Image Management.
6. For the development and improvement of performance of employees
performance appraisal program must be included in the organization.
7. Performance appraisal system enhances the capabilities of employee to
perform effectively.
8. Employees who are working in an organization taking their responsibility
effectively or not analyzed by the management through the
performance appraisal system.
9. Performance appraisal system also enhances the skill of time
management and resource optimization.

47. OTHER SUGGESTIONS FOR
K.L GUPTA (HERO MOTO CORP), Gaya
1. Sitting arrangement should be maximum for visiting customers.
2. Follow the image management.
3. Attention toward the customer.
4. When problems of vehicle are not mentioned by the superior. Such
problems are just burden to the mechanics so take care.
5. Maximize the parking zone.
6. Cabin should be provided to each manager separately for safety and
confidentiality
7. Employees should take their own responsibility of work.
8. Number of security personnel must increase
9. Follow the proper management and professional skills
10. Maximize the work efficiency of each employee
11. Performance appraisal system must be adopted for the enhancement of
work efficiency, productivity, leadership capability, handling the
misunderstanding, Developing training programmes.

48. OUR LEARNING OPPORTUNITIES
1. To take responsibility of work.
2. Understand the corporate culture.
3. How to convince the costumer.
4. How to regard the costumer and to take customer feedback.
5. How to develop our negotiation skill and collect the information
through the survey.
6. Improvement in communication skill.
7. Importance of meeting and it`s procedure.
8. Report the manger after accumulation of the task of work.
9. Time management skill developed.
10. We have learnt importance of job satisfaction, employability skill.

49. CONCLUSION
After having the analysis of the data, we have known that Performance
Appraisal in K.L Gupta, Gaya (Hero Moto Corp) is not doing on any fixed time.
We also here know that Performance Appraisal is only done for promotion of
any employee which is done in a year. Performance Appraisal in Hero Moto
Corp is satisfactory for its effective management and evaluation of staff.
Appraisals here are helping individuals to develop, improve organisational
performance, and feed into business planning. Performance Appraisal enable
Management in Monitoring of standards, Agreeing expectations and
objectives, and Delegation of responsibilities and Tasks. Here we have also
seen that all the Executives are given targets and according to that target they
have to work and through this they are appraised and get Incentives. We also
understand that to give effective result is a only due to the confidence of the
employee for the better result in an organisation.
Ideally in the present day scenario, Appraisal should be done, and it should be
done on weekly as well as monthly taking the views of all the concerned
parties who have some bearing on the employees. But, since a change in the
system is required, it cannot be a Drastic one. It would be gradual and a
change in the mindset of both the employees and the Head is required.

50. ANEXXURE
PROJECT ON PERFORMANCE APPRAISAL AT HERO MOTOCORP
K.L GUPTA, GAYA
Name- …………………………………………………………
Designation/post-…………………………………………
Work experience- ………………………………………….
QUESTIONNAIRE
Q.1 which performance appraisal method do you use in your organization?
(a) Management by objective (b) 360 appraisal system
(C) cost accounting (d) …………………………………
Q.2 Which method do you use for appraisal of –
Manager- ………………………………..
Executive- ……………………………….
Q.3 How many times of performance appraisal system is conducted in your
organization?
(a) Once a year (b) twice a year
(c) Monthly (d) no specific time
Q.4 when the performance appraisal is conducted?
(a) During working hour (b) During non working hour
(c) During recess (d) All of them
Or any other
………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………

51. Q.5 who is responsible for conducting performance appraisal program?
(a) Superior (b) Peers
(c) Customer (d) All
Q.6 Do you inform your employees while performance appraisal program
me?
(a) Always (b) Sometimes
(c) Never (d) Partially
Q.7 Do you think Incentives are given strictly on the basis of performance
appraisal?
(a) Usually (b) Sometimes
(c) Almost (d) Rarely
Q.8 Performance appraisal of the employees is conducted by considering and
evaluating which of the following factor?
(a) Communication skill (b) convincing nature
(c) Product knowledge (d) confidence
Q.9 Do you think Performance Appraisal help in improving employees job
performance?
(a) Yes (b) No
Q.10 Is performance appraisal system reviewed and updated now and then?
(a) Frequently (b) Occasionally
(c) Never (d) All of them
Q.11 Other than performance appraisal does you provides employees with
formal feedback for performance improvement?
(a) Frequently (b) occasionally
(c) Never (d) always

52. Q.12 Are the raters involved while appraising employee?
(a) Highly involved (b) Less involved
(c) Not involved (d) partially
Q.13 What is the reason for conducting performance appraisal in your
organization?
(a) Identify motivating method (b) Decide compensation
(c) Identifying barriers of performance (d) Analyzing training needs
Q.14 Rate your appraisal program?
(a) Reliable (b) Effective
(c) Accurate (d) Motivating
THANKS FOR YOUR CO OPERATION

53. BIBLIOGRAPHY
1. Human Resource Development Book by S.S KHANKA.
2. Human Resource Development notes of Mirza Ghalib College.
3. Human Resource Development notes of H.C.B.
4. Business Today, Business World .
5. Website of Hero Moto corp. Ltd
6. Wikipedia
7. Times Ascent