Testing The Effectiveness of Managerial Performance Appraisal System in TATA Limited

Chapter 1
INTRODUCTION
1
INTRODUCTION
1.1. OVERVIEW
Performance Appraisal is the process of obtaining, analyzing, and recoding

information about the relative worth of an employee. The focus of Performance
Appraisal is measuring and improving the actual performance of the employee and
also the future potential of the employee. It's aim is to measure what an employee
does.
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.
By focusing the attention on performance, performance appraisal goes the heart

of personnel management and reflects the management's interest in the progress of the
employees. An effective system of performance appraisal is a major component of an
organization that allows every employee to feel that his/her contribution to the success
of the organization and a desire to add to that success.
In TATA, performance appraisal is done yearly. This research study is

conducted to find out whether the appraisal system is effective and reliable and what
are the effects of various variables on the performance appraisal.
2
1.2. PROBLEM DEFINITION
Human resource is the most important asset of the organisation. The

satisfaction of the human resources has a vital role in the productivity. In this study,
the evaluation of the Performance Appraisal methods has done. The present appraisal
methods used in the organization and its relevance also get evaluated through this.
1.3. SCOPE OF THE STUDY
The study of the effectiveness of performance appraisal was conducted among

the employees of TATA MOTORS. By this study, it is my attempt to find the present
performance appraisal of the company & to evaluate its effectiveness in the
organisation. From this study, the organisation will be able to recognise its
effectiveness of performance appraisal & whether the employees are satisfied with the
present appraisal etc…
1.4. OBJECTIVES OF THE STUDY
 Primary Objectives
To understand the effectiveness towards performance appraisal system

existing in the organisation.
 Secondary Objectives
1. To understand the Performance Appraisal System adopted at TATA Limited
2. To ascertain the awareness level among the employees about the Performance
Appraisal System adopted at TATA Limited.
3. To make data analysis and interpretation based on the perception of the
employee in the organization.
4. To find whether the appraisal system is done according to the following
parameters of effectiveness.
3
o Transparent and confidential
o Ongoing and in depth
o Mutual respect
o Clear guidelines
o Objectivity
o Training needs
o Potential rating
o Educative
o Trust
o Accountability
1.5. LIMITATIONS OF THE STUDY
As the study revolves around the performance appraisal of human

resources aspects the overall organization performance cannot be
ascertained. In spite of giving honest and sincere efforts there are
several limitations, which are as follows:
1. While answering the questionnaire, respondents discussed with colleagues this

would have influenced the original opinion of the respondents.
2. Since the data was collected using a questionnaire; there is a possibility of
ambiguous replies or omission of replies.
3. The period of study is only for about 2 months, which is a major constraint.
4. The perception bias or attitude of the respondents may also act as hurdles to the
study.
Sample size is restricted to only 50 employees.
4
Chapter -2
RESEARCH
METHODOLOGY
5
1.6. DEFINITION
Research in common parlance refers to search of knowledge. One can also

define research as a scientific & systematic search for pertinent information on a
scientific topic. Research methodology is a way to systematically solve the research
problems. The purpose of research is to discover answers through the application of
scientific procedures.
1.6.1. STATEMENT OF THE PROBLEM
The study on “the effectiveness of managerial performance appraisal system in

TATA MOTORS” is an attempt to study about the performance gaps and carrying out
the development of the employees.
1.6.3. SAMPLING DESIGN
A sample design is a definite plan for obtaining a sample from a given

population. It refers to the technique or the procedure the research would adopt in
selecting items for sample.
1.6.4. POPULATION
Population consists of the total number of employees in TATA MOTORS Ltd.

So the population for the study is 500.
1.6.5. SAMPLING TECHNIQUE
Sampling technique adopted for the study is random sampling. Under this type
of sampling each member of the population has known & equal chance of being
6
selected as the sample. The questionnaire was randomly distributed to the randomly
selected employees in the organisation.
1.6.6. SAMPLE SIZE
Sample size refers to the number of items to be selected from the population
or universe. The survey was conducted in TATA MOTORS & the total sample size
was 50 employees representing various departments in the organisation.
1.6.7. DATA SOURCE
The relevant data for the study were collected from both primary & secondary
data source.
 Primary Data
The primary data refers to the first hand information that an investigator
himself collect from the respondents. It is direct & original in nature. This research
tool makes it possible to clarify the questions so that the answers will have a greater
accuracy.
The Primary Data for the study were collected through a structured
questionnaire & interview.
 Secondary Data
The secondary data is the information collected from those data which have
already been collected by some other researcher. It is the second hand information.
Secondary Data were obtained from the company files, records, books,
journals, company website & other websites.
1.6.8. DATA TOOL
7
A structured questionnaire is made & it is proposed to use this questionnaire as
the main tool for study.
1.6.9. DATA ANALYSIS TOOL
Simple percentage analysis and tabulation is used to analysis

the data. Column charts are used to give pictorial representation to the analysis.
Percentage Analysis
Percentage refers to a special kind of ratio. Percentage is used in making

comparison about two or more series of data. Formula:
Number of respondents
X 100
Total no. of respondent
8
Chapter 3
LITERATURE REVIEW
ON
PERFORMANCE
APPRAISAL
9
LITERATURE REVIEW ON PERFORMANCE APPRAISAL
Performance appraisal is systematic way of judging the relative

importance of an employee in performing his/her task. It is undertaken for the variety
of purpose such as to consider employees for salary increases,
promotions, transfer and termination of services, to determine training and
development needs of the employee, and to establish basis for research and reference
relating to employee matters.
Bendick, M., Egan, M. & Lofhjelm, S. (2001). HR performance appraisal system,

Vol. 24 No. 2, pp. 10-25.
This article‟s focus on the US workplace. Organizations can benefit from
performance appraisal offering diversity training to employees. That is, training
employees to respect others and not to act in a discriminatory manner towards fellow
employees.
McGregor, L. (2000). Career Development International. Vol. 5 No. 4/5, pp. 244-
249.
This article presents two models of mentoring. The traditional view of
mentoring is facilitated mentoring where the more experienced person (mentor) acts
as a role model for the less experienced person (mentee). Another approach is also
offered – guided learning. A more experienced co-worker uses guided learning to
teach a less experienced worker new skills.
Taylor, W. (2005). The Age, My Career Section, p. 11, 26/11/2005.

This paper outlines the experiences of two executive women in
developing an internal mentoring program. The experiences demonstrate that the
mentoring relationship not only benefits the mentees but also the mentor.
While the increased demand for executive coaching in the marketplace
has opened up, the increasing number of coaches of every type, training, and
perspective has also grown (Brotman et al., 1998; Joo, 2005; Kampa-Kokesh, &
Anderson, 2001; Wasylyshyn, 2003). It is surprising that with the increased use of
executive coaching and the rising number of coaches, there has not been a
professional association formed to develop and monitor the standards, requirements,
10
and competency validation solely for executive coaches (Brotman et al., 1998; ICF,
2006; Wasylyshyn, 2003). This need has brought reactions from executives, coaches,
and clients who suggest standardized methods.
Executives have recognized the significant of executive coaching in their
professional performance, both personally and organizationally (Effron et al., 2005;
Joo, 2005; Kampa- Kokesh, & Anderson, 2001; Tuner, 2006; Wasylyshyn, 2003).
During the beginning years of executive coaching, it was seen as an executive crutch
to assist non-performers. Today, executive coaching is looked upon as a necessary
tool and in some cases reserved only for senior executives (Joo, 2005; Kampa-
Kokesh, & Anderson, 2001; Stevens, 2005; Turner, 2006; Wasylyshyn, 2003). One
reason for the about face attitude could be the value executive coaching brings as a
"time-out" break, from the unyielding demand of the corporate world, for inner
thought, assessment, positive criticism and co-development of strategies (Bacon &
Spear, 2003; Brotman et al., 1998; Joo, 2005; Kampa-Kokesh & Anderson, 2001;
Kilburg, 1996a; Orenstein, 2002; Stevens, 2005; Turner, 2006; Wasylyshyn, 2003).
One of the premier uses of executive coaching is to deliver "just-in-time"
strategies forincreasing one's personal performance and effectiveness by transforming
weaknesses into strengths (Bacon & Spear, 2003; Kampa-Kokesh, & Anderson, 2001;
Kilburg, 1996a; Orenstein, 2002; Wasylyshyn, 2003). Due to this increase in personal
ROI, corporate America is enamored with executive coaching and the benefits it has
brought in recent years (Bacon & Spear, 2003).
With many corporate incomes decreasing over the past few years, corporations
have reevaluated their training and development practices, to include the use of
external sources (Joo, 2005; Kampa-Kokesh, & Anderson, 2001; Turner, 2006;
Wasylyshyn, 2003). As a result, executive coaching focuses on ensuring alignment
with corporate strategy (Bluckert, 2005b; Brotman et al., 1998; Edwards, 2003;
Levinson, 1996; Joo, 2005; Orenstein, 2006; Peterson, 1996; Saporito, 1996; Turner,
2006). In this changing corporate setting, executive coaching must be used in a laser-
focused manner, rather than a liberally used improvised solution (Orenstein, 2006).
Those corporations who have identified the need and usefulness of executive coaching
have created an inner coaching environment to facilitate coaching through internal
coaches (Turner, 2006).
It is in the new corporate coaching culture of companies employing their own
coaches (internal)where the chemistry of the coaching relationship takes a back seat to
replicable measures in the coaching protocol (Joo, 2005; Kampa-Kokesh & Anderson,
2001; Stevens, 2005; Turner, 2006;Wasylyshyn, 2003). The internal coach,
unfortunately, finds him or herself in a dilemma of possibly losing one of his most
prized outcomes, which is, assisting clients to become masters of change management
(Wasylyshyn, 2003). Another downturn of this "commoditization" of executive
11
coaching is to put a limit on the use of coaching, and to what extent, documenting the
benchmarks, stages, and action steps. Doing so, realistically, diminishes the coaching
process to a cookie cutter approach including a preset number of sessions and
strategies rather than a co-developed strategic plan developed over the course of an
ongoing relationship. (Joo, 2005; Kampa-Kokesh & Anderson, 2001; Turner, 2006;
Wasylyshyn, 2003).
CONCEPTUAL LITERATURE
A brief about the concept of the effectiveness of Performance Appraisal
The effective performance appraisal cycle contains efficient and reliable
measurement of the performance of the employees. These results are discussed with
the employees and the reason for the performance discrepancies are found out. Then
the corrective measures like training and development are taken.
The main features of a successful appraisal system are;
1. Mutual trust and confidential
2. Reliability
3. Validity
4. Specific objectives
5. Standardization
6. Training appraisers
7. Job relatedness
8. Feedback
9. Post appraisal interview
10. Training and development of the employees
12
Chapter 4
DATA ANALYSIS &

INTERPRETATION
13
DATA ANALYSIS OF TATA
STRENGTHS
1. High capacity utilization

2. High quality products factomfos is a premium product in complex fertilizer
containing sulphur.
3. Sustained operating parameters of the plant at good level and productivity
of plant at good level.
4. Well qualified and technical skilled manpower
5. Good support with farmers/ end segment
6. ISO certificate is most of the divisions
7. Strong dealer network is south India
WEAKNESSES
1. The government controls the prices of finished goods , but the prices of raw
material are uncontrolled. So it is forced to operate in an uneconomic
situation.
2. Lack of product line diversification
3. Lack of working capital resource
4. Several unskilled job, which could be sub contracted are undertaken by the
permanent
OPPORTUNITIES
1. Less expensive alternative source of energy and other inputs

2. Acquiring technology to utilize other available resource
14
3. TATA ammonium sulphate has greater demand in foreign countries
4. Expanding production capacity to drive benefit of scale
5. Opportunities for product diversification
6. Very large asset base
THREATS
1. Unfavourable policy of the government
2. Diminishing market for carpolactum
3. Lack of product differentiation
4. High pricing and scarcity of raw materials
15
DATA ANALYSIS & INTERPRETATION
Table 5.1
Showing the age of the respondents
Responses No: of respondents Percentage (%)

Below 25 4 8
26-35 Years 24 48
36-45 Years 15 30
Above 45 7 14
Total 50 100
Figure 5.1
No: of respondents
30
25
20
15
10
0
Below 25 26-35 Years 36-45 Years Above 45
Interpretation
From the analysis, the most of the respondents i.e., 48% were under the
age group of 26-35.Then 30% belongs to 36-45 age group. Then 14% belongs
to above 45 & only 8% are under the age group of below 25.
16
Table 5.2
Showing the male & female proportion among the respondents.
Response No: of respondents Percentage (%)

Male 45 90
Female 5 10
Total 50 100
Figure 5.2
No: of respondents
50
45
40
35
30
25
20
15
10
5
0
Male Female
Interpretation
From the analysis, the 90% of the respondents were male & the remaining 10%
belongs to female.
17
Table 5.3
Showing the qualification of the respondents

Below SSLC 12 24
SSLC 10 20
Plus Two 7 14
Degree 16 32
PG 5 10
Total 50 100
Figure 5.3
Qualification of respondents
18
16
14
12
10
8
6
4
2
0
Below SSLC SSLC Plus Two Degree PG
Interpretation
From the analysis, the majority of the respondents were degree qualifiers i.e.,
32%.Then 24% of the respondents were below SSLC & 20% is belongs to SSLC.
14% of the respondents are under plus two & only 10% belongs to PG qualification.
18
Table 5.4
Showing the experience on service of the respondents.

0-10 Years 20 40
11-20 Years 17 34
21-30 Years 7 14
Above 30 Years 6 12
Total 50 100
Figure 5.4
No: of respondents
25
20
15
10
0
0-10 Years 11-20 Years 21-30 Years Above 30 Years
Interpretation
The major numbers of respondents were under the category of 0-10 years
i.e., 40% .Then the 34% respondents belongs to 11-20 years. Then 14% were
under the category 21-30 years. The remaining 12% of respondents was above
30 years of experience.
19
Table 5.5
Showing the awareness of respondents.

Strongly Agree 45 90
Agree 5 10
Neither Agree Nor 0 0
Disagree
Disagree 0 0
Strongly Disagree 0 0
Total 50 100
Figure 5.5
No: of respondents
100
90
80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neither Agree Disagree Strongly
Nor Disagree Disagree
Interpretation
90% of the employees are fully aware of the performance appraisal

system and only 10% are not aware.
20
Table 5.6
Showing opinion on reliability of the present appraisal system in the organisation

Agree 2 4
Neither Agree Nor Disagree 10 20
Disagree 2 4
Total 50 100
Figure 5.6
No: of respondents
70
60
50
40
30
20
10
0
Interpretation
60% of employees are strongly agreed that the PA system is reliable, 20%
of employees are neither agreed or disagree, 12% of employees are strongly
disagreed.
21
Table 5.7
Showing opinion on importance of performance apprisal in the organisation.

Agree 2 4
Disagree
Disagree 0 0
Total 50 100
Figure 5.7
No: of respondents
70
60
50
40
30
20
10
0
Interpretation
96% of employees think that the performance appraisal is important in an

organization and only 4% of employees think that the performance appraisal is
not necessary in an organization.
22
Table 5.8
Types of appraisal used for evaluating / appraising performance of employees?
360 feedback 0
MBO 0
Graphic Rating Scale 0
Behaviorally Anchored Rating Scales (BARS) 0
Balance Score Card 0

Self Appraisal and superior review 50
Figure 5.8
Types of PA
120
100
80
60
40
20
0
360 feedback MBO Graphic Behaviorally Balance Score Self Appraisal
Rating Scale Anchored Card
Rating Scales
(BARS)
Interpretation
100% of employees say that Self Appraisal and superior review is used
for evaluating / appraising performance.
23
Table 5.9
Showing opinion on the statement that “the present appraisal system is effective
in rating the employees performance”.

Agree 5 10
Disagree 0 0
Total 50 100
Figure 5.9
No: of respondents
70
60
50
40
30
20
10
0
Strongly Agree Agree Neither Agree Nor Disagree Strongly Disagree
Disagree
Interpretation
90% of employees think that the present Appraisal System is effective in rating
the employee’s performance and 10% of employees think that present Appraisal is
ineffective.
24
Table 5.10
Showing opinion about the managers take performance appraisal seriously.

Agree 10 20
Disagree 0 0
Total 50 100
Figure 5.10
No: of respondents
70
60
50
40
30
20
10
0
Interpretation
From the analysis, we can understand that the 80% of employees think that the
managers take Performance Appraisal seriously.
25
Table 5.11
Opinion of people who think that the performance appraisal helps in improving
themselves and an opportunity for self-review and reflection.

Yes 46 92
No 4 8
Total 50 100
Figure 5.11
No: of respondents
100
90
80
70
60
50
40
30
20
10
0
Yes No
Interpretation
92% of employees think that the performance appraisal for improving

yourself and an opportunity for self-review and reflection and 8% of employees
think that the performance appraisal is not improving yourself and not an
opportunity for self-review.
26
Table 5.12
Opinion of people who think that the performance appraisal is based on abilities
and skills
Responses No: of Percentage (%)

respondents
Agree 10 20
Disagree 0 0
Total 50 100
Figure 5.12
No: of respondents
120
100
80
60
40
20
0
Strongly Agree Agree Neither Agree Disagree Strongly Disagree
Nor Disagree
Interpretation
80% of the employees are strongly agreed that performance appraisal

is based on abilities and skills.
27
Table 5.13
Opinion of people who think that the performance appraisal is based on

management reference

Agree 5 10
Disagree 0 0
Total 50 100
Figure 5.13
No: of respondents
120
100
80
60
40
20
0
Nor Disagree
Interpretation
90% of the employees are strongly agreed that performance appraisal is based
on management reference.
28
Table 5.14
Opinion of people who think that the performance appraisal is based on seniority

Agree 2 4
Disagree 0 0
Total 50 100
Figure 5.14
No: of respondents
120
100
80
60
40
20
0
Nor Disagree
Interpretation
on seniority.
29
Table 5.15
Opinion of people who think that the performance appraisal is based on

contribution

Agree 1 2
Disagree 0 0
Total 50 100
Figure 5.15
No: of respondents
120
100
80
60
40
20
0
Strongly Agree Agree Neither Agree Nor Disagree Strongly Disagree
Disagree
Interpretation
on contribution.
30
Table 5.16
Opinion of people who think that the performance appraisal is based on integrity

Agree 1 2
Disagree 0 0
Total 50 100
Figure 5.16
No: of respondents
120
100
80
60
40
20
0
Interpretation
on integrity.
Result of rating the Performance Appraisal System using the various

independent variables.
31
Table 5.17
 Transparency and Confidentiality.
Responses No: of Percentage (%)

respondents
Strongly Agree 3 6
Agree 30 60
Disagree 7 14
Total 50 100
Figure 5.17
No: of respondents
120
100
80
60
40
20
0
Strongly Agree Neither Disagree Strongly Total
Agree Agree Nor Disagree
Disagree
Interpretation
60% of the employees are strongly agree that the Performance Appraisal
System is Transparent and Confidential.
32
Table 5.18
 Trustworthiness

Strongly Agree 5 10
Agree 35 70
Disagree
Disagree 0 0
Total 50 100
Figure 5.18
No: of respondents
70
60
50
40
30
20
10
0
Interpretation
System is Trustworthiness.
33
Table 5.19
 Educative
Agree 30 60
Disagree
Disagree 0 0
Total 50 100
Figure 5.19
No: of respondents
70
60
50
40
30
20
10
0
Interpretation
System is Educative.
34
Table 5.20
 Potential Rating

Agree 10 20
Disagree
Disagree 0 0
Total 50 100
Figure 5.20
No: of respondents
70
60
50
40
30
20
10
0
Strongly Agree Neither Disagree Strongly
Disagree
Interpretation
System is Potential Rating.
35
Table 5.21
 Effective in finding out the training needs

Agree 5 10
Disagree
Disagree 0 0
Total 50 100
Figure 5.21
No: of respondents
70
60
50
40
30
20
10
0
Strongly Agree Neither Disagree Strongly
Disagree
Interpretation
System is effective in finding out the training needs.
36
Table 5.22
 Mutual Respect
Agree 5 10
Disagree
Disagree 0 0
Total 50 100
Figure 5.22
No: of respondents
70
60
50
40
30
20
10
0
Interpretation
80% of the employees are strongly agreed that the Performance Appraisal
System is Mutual Respect.
37
Table 5.23
 Clear Guidelines
Agree 5 10
Disagree
Disagree 0 0
Total 50 100
Figure 5.23
No: of respondents
70
60
50
40
30
20
10
0
Interpretation
System is Clear Guidelines.
38
Table 5.24
 Objectively Collected
Agree 15 30
Disagree
Disagree 0 0
Total 50 100
Figure 5.24
No: of respondents
70
60
50
40
30
20
10
0
Strongly Agree Neither Agree Disagree Strongly
Agree Nor Disagree Disagree
Interpretation
System is Objectively Collected.
39
Table 5.25
 Accountability
Agree 5 10
Disagree 0 0
Total 50 100
Figure 5.25
No: of respondents
70
60
50
40
30
20
10
0
Strongly Agree Neither Agree Disagree Strongly
Agree Nor Disagree Disagree
Interpretation
System is accountable.
40
Chapter-5
FINDINGS &
SUGGESTIONS
41
FINDINGS
1. The performance appraisal system is effective in TATA

2. The employees admit that the performance appraisal system is reliable
3. The performance appraisal system is effective in finding the need for
development.
4. Majority of the employees are satisfied with the performance appraisal system.
5. The performance appraisal is based on the factors which should be considered
in the process.
6. 90% of the employees are strongly agreed that the Performance Appraisal
System is Clear Guidelines
7. Only self Appraisal and superior review is conducted at TATA.
8. The performance appraisal is done yearly.
9. 92% of employees think that the performance appraisal for improving
yourself and an opportunity for self-review and reflection
10. Some employees demand small changes in the appraisal system.
11. The performance appraisal can be made more systematic.
12. 80% of the employees are strongly agreed that the Performance Appraisal
System is accountable
13. 98% of the employees are strongly agreed that performance appraisal is based
on contribution and integrity.
42
SUGGESTIONS AND RECOMMENDATIONS
1. There should be performance appraisal for the low level employees.

2. Self Appraisal and superior appraisal is conducted at TATA. Other appraisals
like peer and subordinate appraisal should be included.
3. The performance appraisal can do quarterly for good results.
4. The performance appraisal should be made more systematic.
5. Performance standards should be fixed for all the employees in measurable
terms.
6. The training needs of the employees must be taken into consideration.
7. The amenities, facilities and work conditions provided can be improved
further. So that the employees are satisfied and they can deliver their best.
8. The employees should be given more recognition as it is an important factor
and can influence the output of the employees to a large extend.
9. Motivational factors must be given more importance since they have far
reaching consequences on the behaviour of the employees.
10. The performance gaps found out should be filled using proper aid of training
and other development programs.
11. Work study should be performed to evaluate the work nature and hence the
job performance and appraisal can be made efficient.
12. More management development programmes can be initiated.
13. Post appraisal interviews should be made effective and should be held
regularly.
14. Senior managers should undergo a workshop for performing the
performance appraisal more systematically.
15. The ignorance of the employees regarding their knowledge gaps should be
addressed effectively.
16. Counseling should be given to the employees to address all the work related
and personal issues.
17. More budgets should be allocated for the development of human resources.
43
CONCLUSION
44
CONCLUSION
The study on the effectiveness of the performance appraisal in TATA

provided a comprehensive piece of information about the system followed. From the
study, it is evident that the performance appraisal system followed in TATA is not
strictly a formal one.
Performance Appraisal can be effective only if it can pave way to some kind of
improvement of development in the potentialities of the employees. Development of
employees can lead to development of organisation itself. So employee development
is an important factor of every organisation. From this study, it is founded that the
worker have the suggestion to improve the appraisal system and they have the opinion
that it has been consider the reason for poor measure of performance and the
possibilities of deviation that exist. The employee should have the chance for
experiencing themselves and they must contribute their ideas. The system must be
employee friendly and will be having all ways for employee’s development which can
definitely contribute to the original growth.
From the research, I conclude that;

1. The performance appraisal system in TATA is effective.
2. The reliability of the performance appraisal system is high
3. The employees are satisfied with the development approach of performance
appraisal system.
4. The performance appraisal is following the 10 parameters of effectiveness.
45
APPENDIX
46
QUESTIONNAIRE FOR TESTING THE EFFECTIVENESS OF
MANAGERIAL PERFORMANCE APPRAISAL SYSTEM IN TATA
LIMITED
Respected Madam / Sir
I am Razik Mansoor, pursuing BBA from K.M.E.A College of Arts And

Science,Edathala, Aluva As a part of my BBA curriculum, I am doing my project on
the topic “Testing the effectiveness of Managerial Performance Appraisal System in
TATA Limited”. This survey is done to support my project and hereby request you to
co-operate by giving your valuable answers. The information provided by you will be
kept confidential and will be used for academic purpose alone
Personal Data
1. Name :
2. Age : Below 25 26-35 yrs
36-45 yrs Above 45
3. Gender : Male Female
4. Qualification : Below SSLC SSLC
Plus Two Degree

PG
5. Department :
47
6. Experience : 0-10 yrs 11-20 yrs
21-30 yrs above 30 yrs
7. How often Performance Appraisal is done in your organization?
3 months 6 months yearly
8. You are fully aware of the performance appraisal system in your

organisation?
Strongly Agree Agree
Neither agree nor Disagree Disagree
Strongly Disagree
9. Do you agree that you are reliably appraised every year?

Strongly Disagree
10. Do you agree that performance appraisal is important in an organization ?

Strongly Disagree
11. Is performance appraisal reviewed and updated now and then?
Frequently Occasionally
Newer Rarely
Very rarely
48
12. Do you obtain appraisal feedback?
Newer Rarely
Very rarely
13. Which type is used for evaluating / appraising performance of employees?
360 feedback
MBO
Graphic Rating Scale
Behaviorally Anchored Rating Scales (BARS)
Balance Score Card
Self Appraisal and superior review
14. Do you agree that the present appraisal system is effective in rating the
employees performance ?

Strongly Disagree
15. Do you agree that the managers take Performance Appraisal seriously?

Strongly Disagree
49
16. How many meetings are scheduled in a year to discuss employees
performance?
Nil Once Twice 4 Times
17. Other than performance appraisal does your supervisor provide feedbacks
for performance improvement?
Newer Rarely
Very rarely
18. Do you take the performance appraisal for improving yourself and an
opportunity for self-review and reflection?
Yes No
19. . Rank the following factors based on importance - on what criteria is

employee performance ranked
Criteria 1 2 3 4 5
Based on abilities and Skills
Based on management reference
Based on seniority
Based on contribution
Based on integrity
50
Rate Performance Appraisal in a 5 point scale based on the following parameters.(1
Strongly Agree, 2 Agree, 3 neither Agree nor Disagree, 4 Disagree, 5 Strongly
Disagree)
20. Transparency and Confidentiality

21. Ongoing and In-depth
22. Trustworthiness
23. Training needs
24. Mutual respect
25. Clear guidelines
26. Objectivity
27. Accountability
28. Potential rating
29. Educative
What are your suggestions regarding the Performance Appraisal System?
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…………………Thank you for your co-operation………………
51
BIBLIOGRAPHY
52
BIBLIOGRAPHY
BOOKS
1. The International Journal of Educational Management, 1st June 2003, Volume

17, issue 6.
2. Dowling (1999) International HRM-Managing people in a multinational
context, 3rd edition- International Thomson publishing.
3. Fletcher C (1992) “Performance- Oriented culture”, Association of
Management Education and Development.
4. Bendick, M., Egan, M. & Lofhjelm, S. (2001). HR performance appraisal
system, Volume 24 No. 2.
WEBSITE
1. www.tata.com
53
ABBREVATIONS OF ORGANIZATIONAL CHART
DIR - DIRECTOR
TECH - TECHNICAL
C.V.O - CHIEF VIGILLENCE OFFICER
C.P - CORPORATE PLANNING
P.C - PRODUCTION COORDINATION
CD - COCHIN DIVISION
UC - UDYOGAMANDAL COMPLEX
F&F - FEDO & FEW
JGM - JUNIOR GENERAL MANAGER
UD - UDYOGAMANDAL DIVISION
PD - PETROCHEMICAL DIVISION
CM - CHIEF MNAGER
C.S.P - CHIEF SUPERINTENDANT PRODUCTION
C.M.E - CHIEF MECHANICAL ENGINEER
MGR - MANAGER
P.E - PLANT ENGINEER
54

Testing The Effectiveness of Managerial Performance Appraisal System in TATA Limited

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Testing The Effectiveness of Managerial Performance Appraisal System in TATA Limited

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Chapter 1

Performance Appraisal is the process of obtaining, analyzing, and recoding

It is a powerful tool to calibrate, refine and reward the performance of the

By focusing the attention on performance, performance appraisal goes the heart

In TATA, performance appraisal is done yearly. This research study is

Human resource is the most important asset of the organisation. The

1.3. SCOPE OF THE STUDY

The study of the effectiveness of performance appraisal was conducted among

1.4. OBJECTIVES OF THE STUDY

To understand the effectiveness towards performance appraisal system

1.5. LIMITATIONS OF THE STUDY

As the study revolves around the performance appraisal of human

1. While answering the questionnaire, respondents discussed with colleagues this

Research in common parlance refers to search of knowledge. One can also

1.6.1. STATEMENT OF THE PROBLEM

The study on “the effectiveness of managerial performance appraisal system in

1.6.3. SAMPLING DESIGN

A sample design is a definite plan for obtaining a sample from a given

Population consists of the total number of employees in TATA MOTORS Ltd.

1.6.5. SAMPLING TECHNIQUE

1.6.6. SAMPLE SIZE

1.6.7. DATA SOURCE

1.6.8. DATA TOOL

1.6.9. DATA ANALYSIS TOOL

Simple percentage analysis and tabulation is used to analysis

Percentage refers to a special kind of ratio. Percentage is used in making

Performance appraisal is systematic way of judging the relative

Bendick, M., Egan, M. & Lofhjelm, S. (2001). HR performance appraisal system,

Taylor, W. (2005). The Age, My Career Section, p. 11, 26/11/2005.

DATA ANALYSIS &

1. High capacity utilization

1. Less expensive alternative source of energy and other inputs

Responses No: of respondents Percentage (%)

Showing the male & female proportion among the respondents.

Response No: of respondents Percentage (%)

Showing the qualification of the respondents

Responses No: of respondents Percentage (%)

Showing the experience on service of the respondents.

Responses No: of respondents Percentage (%)

Showing the awareness of respondents.

Responses No: of respondents Percentage (%)

90% of the employees are fully aware of the performance appraisal

Showing opinion on reliability of the present appraisal system in the organisation

Responses No: of respondents Percentage (%)

Showing opinion on importance of performance apprisal in the organisation.

Responses No: of respondents Percentage (%)

96% of employees think that the performance appraisal is important in an

Types of appraisal used for evaluating / appraising performance of employees?

Balance Score Card 0

Responses No: of respondents Percentage (%)

Showing opinion about the managers take performance appraisal seriously.

Responses No: of respondents Percentage (%)

Responses No: of respondents Percentage (%)

92% of employees think that the performance appraisal for improving

Responses No: of Percentage (%)

80% of the employees are strongly agreed that performance appraisal

Opinion of people who think that the performance appraisal is based on

Responses No: of respondents Percentage (%)

Responses No: of respondents Percentage (%)

Opinion of people who think that the performance appraisal is based on

Responses No: of respondents Percentage (%)

Responses No: of respondents Percentage (%)

Result of rating the Performance Appraisal System using the various