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~By Keyur Modi Page 1
A
SUMMER INTERNSHIP PROJECT REPORT
ON
““TO STUDY PERFORMANCE APPRAISAL SYSTEM IN
KATARIA AUTOMOBILE PVT LTD”
AT
KATARIA AUTOMOBILE, BARDOLI
OFFERED BY
GUJARAT TECHNOLOGICAL UNIVERSITY,
AHMADABAD
PREPARED BY:
MODI KEYUR R.
MBA (SEMESTER - III)
~By Keyur Modi Page 2
Chapeter-1 General Information
1.1 INTRODUCTION ON AUTOMOBILE INDUSTRY
The automobile industry, along with the auto components industry, is one of the
core industries in India. A well developed shipping system plays a key role in the
development of an wealth and India is no exception to it. Automobile is one of the
biggest industries in the global market. Due to its strong forward and backward linkages
with several key segments of the economy. Automobile Sector occupies a well-known
place in the fabric of Indian Economy. Automobile sector is leader in product and process
technologies in the manufacturing sector. It has been documented as one of the drivers of
economic growth and the domestic automobile industry is believed to be the indicator of
the economy. Such a belief is in line with international trends since in most mature
economies the automobile industry’s performance is viewed as a reflection of the
economy’s wellbeing. According to data published by Department of Industrial Policy
and Promotion (DIPP), ministry of Commerce, the amount of cumulative foreign direct
investment (FDI) inflow into the auto sector from April 2000 to November 2012 was
worth US$7,518 million. The auto sector accounts for 4 per cent of the total FDI Inflows
in India.
In April- November 2012, 4 percent growth was registered by the India’s scooter
and motorcycle manufacturers which were conducted by the Society of Indian
Automobiles Manufacturers (SIAM). There is more focus on the innovative products,
supply chains and technologies by the Indian and the global markets. Development in the
automobile sector with the new Hybrid and electric cars is one of the key markets by te
Indian manufacturers. About 13 million people get the employment due to the automobile
industry in the Indian work class. The four segments of the automobile sectors are two
wheelers, passenger vehicles, commercial vehicles and three wheelers. India is the fastest
growing passenger car markets in the world in two wheelers and the fifth largest
commercial vehicles manufacturers. In addition India is 4th largest passenger car market
in Asia.
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In last two years, the Indian auto sector has achieved a fabulous growth rate of 26
percent. But there was only 12 percent growth in the 2012 as per SIAM. The trend of the
growth stay stable on 10 percent for 2013. The fuel cost, cost of registration, road tax,
ownership costs and the slow rural income growth were the major reasons for the stable
growth. But offensive growth is expected in next few years due to the mix hybrid cars
and electrical cars. Government of the India has launched the automotive mission plan in
2016 to grow the Indian industry to size by 2016 to contribute 10 percent in national
gross domestic product (GDP).
The rapid growth of automobiles industry is due to the meeting of a lot of positive
factors. These factors have contributed to result in the introduction of new models and
technology. Following are some of the important growth drivers:
(1) Road infrastructure development: Infrastructure development in India has
contributed majorly in the country’s economic transformation and growth during the last
decade. Development of Road is one of key segment of infrastructure development in
India. With a total length of 4.1 million km, today Indian road network is the second
largest in the world. In 2011/12, The Government awarded projects for construction of
7,900 km. According to the to statistics released by Department of Industrial Policy and
Promotion (DIPP), USS 644 million FDI was received in the sector construction
activities during April-September 2012-13. The huge development of road infrastructure
has mad road transport both in the case of passenger traffic and goods transport a
feasible, cost effective and speedy option of transportation.
(2) Increase in per capita income: India’s gross national income per capita has increase
to Rs.53,331/- in 2010- 11, which is three times the per capital income of Rs.19040 in
2002-03,averaging 13.7% growth over these eight years. This has pushed up the demand
for passenger vehicles in India directly and commercial vehicles indirectly due to retail
explosion and industrial boom for consumer durables. Rising incomes among Indian
population will lead to increase affordability, increasing domestic demand for vehicles,
especially in the small car segment.
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(3) Research & Development and Innovations: Research & Development and
Innovations are fuel for development of automobile industry. Since in Automobile sector
survival of the fittest is determined by innovation, the innovations and inventions of new
processes and techniques is the heart of the automobile industry. Car manufacturers are
investing nearly 1% of total sales on R&D, R&D for Vehicles based on alternative fuels
will be an area of interest for both consumers and auto makers. National Automotive
Testing and R&D infrastructure Project (NATRIP) has been set up in Rae Bareilly,
Ahmednagar, Pune, Manesar, Silchar, Indore and Chennai for increase the R&D
infrastructure.
(4) Growing middle and working class population: With the Increase in per capita
income, growing employment opportunities with opening up of private sector, there is
conversion from lower class to middle class. According to the planning Commission
report, between the year 2003 and 2009, 130 million people would have been added to
the working population. According to a finding from McKinsey, the middle income
group will grow from 50 million to 550 million by 2025. The growing middle class
population has resulted in increase in demand of two wheelers and four wheelers in India.
(5) Availability of cheaper and easier finance: Not only the financial institutions, but
all nationalized and listed banks offers loans for purchase of passenger and commercial
vehicles on very easy terms and low interest rate on installment basis to consumers. By
easy availability of finance has made the dream and hope of owning a vehicle for middle
class families.
(6) Rising per capita GDP: The per capita GDP of India increased from 1200 USD in
2011 to almost 1330 USD in 2012. This is further expected cross the 2000 mark by 2015.
The purchasing power will increase, which will result in increase in demand of
automobile industry in India.
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HISTORY OF AUTOMOBILE INDUSTRY
The automobile history is quiet old which is four centuries back when the first
invention is taken in 1769. Nicolasan Cugnot a French engineer was the first person to
invent the self powered, three wheeled tractor which runs with the help of steam engine.
At that time most of the engines were made with steam engine which was heavy and
large in shape. After that the electric engine were created. The first electric engine was
created by the Scotman Robert Anderson in 1832.
In 1842 Thomas Davenport of the U.S.A and Scotsman Robert Davidson invented
more applicable automobiles, making use of non-rechargeable electric batteries. Col.
Rookes Crompton introduced public transport wagons strapped to and pulled by imported
steam road rollers called steamers.
The maximum speed of these buses was 33 kms/hr. The first theoretical plans for
a motor vehicle were drawn by Leonardo da Vinci and Isaac Newton. History of
Automobile Industry reveals that US dominated the automobile markets around the
globe. There were no famous competitors at that time. After Second World War in 1945
the Automobile Industry of other technologically advanced nation such as Japan and
certain European nation gained energy. The U.S. Automobile Industry was hectic with
foreign automobile companies, especially Japan Germany within a very short period
beginning early 1980s.
The history of automobile industry in India is also quite old. Simpson & Co
established in 1840 were the first to build a steam car and a steam bus in India. The first
car ran on India’s roads in 1898 in Bombay. Ager the end of the World War a large
number of military vehicles come on the roads in India in 1919. American General
Motors, a wholly owned Indian subsidiary of started assembly of CKD Trucks and Cares
in 1928 In Bombay. Canadian Ford Motors started assembly of cars in 1930-31 in
Madras, Bombay and Calcutta.
In 1942 Hindustan Motors Lt was incorporated. Hindustan Motors produced its
first vehicle in 1950. In 1944 premier Automobiles Ltd incorporated. The first vehicle
was produced by it in 1947. Thereafter, in 1947 Bajaj started assembly of Auto in its
~By Keyur Modi Page 6
scheme of replacing cycle rickshaw by auto under a license from Piaggio. After
independence, the Government of India and the private sector launched efforts to create
and automotive component manufacturing industry to supply to the automobile industry.
Due to nationalization and the license raj, the growth was relatively slow in the 1950s and
1960s. After 1970, the automotive industry stared to grow.
The growth was mainly driven by tractors, commercial vehicles and scooter. Cars
were still a major luxury. Till the early eighties, the automobile industry had very slow
growth. Until 1982, there were only three manufacturers who had complete sway in the
sector.
They were, Hindustan Motors, Premier Automobiles and Standard Motors. The
way of perform started in the early nineteen eighties with a slew of bold policy initiatives.
The Government allowed foreign technology with or without equity participation with
Indian companies. During This period in Car Segment, Suzuki (Japan) made entry in the
field of vehicles in India. In two wheeler segment following companies made entry:
Suzuki, Honda, Kawasaki, Yamaha – all from Japan, Honda, Piaggio (Italy) Scooters :
Steyr Daimler Puch (Austria), Zundapp (Germany) Mopeds : Agrati Garelli (Italy)
In 1982 Maruti Udyog Limited (MUL) came up as a Government initiative in
collaboration with Suzuki of Japan to establish volume production of contemporary
models. The fruits of first wave of initiatives were consolidated and then in early 1990s
another tranche of reforms was made by Government allowed which paved way to
develop the automobile sector further.
The Indian automotive industry has demonstrated sustained growth as result of
these reforms on various dimensions, like a variety of choices for the customer,
modernity of offerings, quality consciousness or even scale of production, many India
companies have equaled, if not surpassed, global standards.
Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and
Mahindra and Mahindra, expanded their domestic and international operations. India’s
robust economic growth led to the further expansion of its domestics automobile
marketwhich has attracted significant India-specific investment by multinational
automobiles manufacturers.
~By Keyur Modi Page 7
Thus the dong away of licensing in 90s saw further growth and expansion in the
automobile sector in India. This is when 17 new ventures came up, out of which 16 were
for manufacture of cars. There are at present 12 manufacturers of passenger cars, 5
manufacturers of MUVs, 9 manufacturers of commercial vehicles, 12 manufacturers of
two-wheelers, 4 manufacturers of three wheelers and 14 manufacturers of tractors,
besides 5 manufacturers of engines
1.2 World Market
~By Keyur Modi Page 8
With the hundreds of manufacturers in the world, the automobile industry has started in
the year 1860 for the commutation. United States ruled the world for many years in the
production of the automobile sector. In the year 1929 when the great depression was
there in the world, at that time total 32 lacks cars were in the use among them 90 percent
of the cars were produced by the United states. After the world war two, about ¼ of the
worlds production for cars were manufactured by the United states. In 1994, the Japan
overtakes the United States and become the world’s leader in automobile sector. China
took the world’s leader position in 2012 and defeated the United states and the Japan by
producing double production then the other major leading countries.
SAFETY
Safety is a state that implies to be protected from any risk, danger, damage or cause of
injury. In the automotive industry, safety means that users, operators or manufacturers do
not face any risk or danger coming from the motor vehicle or its spare parts. Safety for
the automobiles themselves, implies that there is no risk of damage.
Safety in the automotive industry is particularly important and therefore highly
regulated. Automobiles and other motor vehicles have to comply with a certain number
of norms and regulations, whether local or international, in order to be accepted on the
market. In case of safety issues, danger, product defect or faulty procedure during the
manufacturing of the motor vehicle, the maker can request to return either a batch or the
entire production run. This procedure is called product recall. Product recalls happen in
every industry and can be production-related or stem from the raw material.
Product and operation tests and inspections at different stages of the value chain are made
to avoid these product recalls by ensuring end-user security and safety and compliance
with the automotive industry requirements. However, the automotive industry is still
particularly concerned about product recalls, which cause considerable financial
consequences.
ECONOMY
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Around the world, there were about 806 million cars and light trucks on the road in 2007,
consuming over 980 billion litres (980,000,000 m3) of gasoline and diesel fuel
yearly. The automobile is a primary mode of transportation for many developed
economies. The Detroit branch of Boston Consulting Group predicts that, by 2014, one-
third of world demand will be in the four BRIC markets (Brazil, Russia, India and
China). Meanwhile, in the developed countries, the automotive industry has slowed
down. It is also expected that this trend will continue, especially as the younger
generations of people (in highly urbanized countries) no longer want to own a car
anymore, and prefer other modes of transport. Other potentially powerful automotive
markets are Iran and Indonesia. Emerging auto markets already buy more cars than
established markets. According to a J.D. Power study, emerging markets accounted for
51 percent of the global light-vehicle sales in 2010. The study, performed in 2010
expected this trend to accelerate. However, more recent reports (2012) confirmed the
opposite; namely that the automotive industry was slowing down even in BRIC
countries. In the United States, vehicle sales peaked in 2000, at 17.8 million unit.
TOP 20 MOTOR VEHICLE PRODUCING COUNTRIES:
~By Keyur Modi Page 10
Country Motor vehicle production (units)
China 29,015,434
United States 11,189,985
Japan 9,693,746
Germany 5,645,581
India 4,782,896
South Korea 4,114,913
Mexico 4,068,415
Spain 2,848,335
Brazil 2,699,672
France 2,227,000
Canada 2,199,789
Thailand 1,988,823
United Kingdom 1,749,385
Turkey 1,695,731
Russia 1,551,293
Iran 1,515,396
Czech Republic 1,419,993
Indonesia 1,216,615
Italy 1,142,210
Slovakia 1,001,520
1.3 Indian Market
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The Indian auto industry became the 4th largest in the world with sales increasing
9.5 per cent year-on-year to 4.02 million units (excluding two wheelers) in 2017. It was
the 7th largest manufacturer of commercial vehicles in 2017.
The Two Wheelers segment dominates the market in terms of volume owing to a
growing middle class and a young population. Moreover, the growing interest of the
companies in exploring the rural markets further aided the growth of the sector.
India is also a prominent auto exporter and has strong export growth expectations
for the near future. Overall automobile exports from India grew at 6.86 per cent CAGR
between FY13-18. In addition, several initiatives by the Government of India and the
major automobile players in the Indian market are expected to make India a leader in the
two wheeler and four wheeler market in the world by 2020.
Market Size
Overall domestic automobiles sales increased at 7.01 per cent CAGR between FY13-18
with 24.97 million vehicles getting sold in FY18. The auto industry is set to witness
major changes in the form of electric vehicles (EVs), shared mobility, Bharat Stage-VI
emission and safety norms. Electric cars in India are expected to get new green number
plates and may also get free parking for three years along with toll waivers@. Sales of
electric two-wheelers are estimated to have crossed 55,000 vehicles in 2017-18. Premium
motorbike sales in India crossed one million units in FY18.
Investments
In order to keep up with the growing demand, several auto makers have started investing
heavily in various segments of the industry during the last few months. The industry has
attracted Foreign Direct Investment (FDI) worth US$ 18.413 billion during the period
April 2000 to December 2017, according to data released by Department of Industrial
Policy and Promotion (DIPP).
Some of the recent/planned investments and developments in the automobile sector in
India are as follows:
~By Keyur Modi Page 12
 Ashok Leyland has planned a capital expenditure of Rs 1,000 crore (US$ 155.20
million) to launch 20-25 new models across various commercial vehicle
categories in 2018-19.
 Mahindra & Mahindra (M & M) is planning to make an additional investment of
Rs 500 crore (US$ 77.23 million) for expanding the capacity for electric vehicles
in its plant in Chakan.
Government Initiatives
The Government of India encourages foreign investment in the automobile sector and
allows 100 per cent FDI under the automatic route.
Some of the recent initiatives taken by the Government of India are -
 The Government of Karnataka is going to obtain electric vehicles under FAME
Scheme and set up charging infrastructure across Bengaluru, according to Mr R V
Deshpande, Minister for Large and Medium Industries of Karnataka.
 The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in
the country for introduction of electric vehicles (EVs) in their public transport
systems under the FAME (Faster Adoption and Manufacturing of (Hybrid) and
Electric Vehicles in India) scheme. The government will also set up incubation
centre for startups working in electric vehicles space.
 Energy Efficiency Services Limited (EESL), under Ministry for Power and New
and Renewable Energy, Government of India, is planning to procure 10,000 e-
vehicles via demand aggregation, and has already awarded contracts to Tata
Motors Ltd for 250 e-cars and to Mahindra and Mahindra for 150 e-cars.
 The government is planning to set up a committee to develop an institutional
framework on large-scale adoption of electric vehicles in India as a viable clean
energy mode, especially for shared mass transport, to help bring down pollution
level in major cities.
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Road Ahead
The automobile industry is supported by various factors such as availability of skilled
labour at low cost, robust R&D centres and low cost steel production. The industry also
provides great opportunities for investment and direct and indirect employment to skilled
and unskilled labour.
Indian automotive industry (including component manufacturing) is expected to reach Rs
16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026. Two-wheelers are expected to
grow 9 per cent in 2018.
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1.4 Major Companies in Auto mobile industry
The major reason or the cause which leads to the rapid growth of the Indian car industry
were the lowest rate of interest, more diverse car loans, smooth repayment facilities and
the discounts offered by the retailers.
Following are the car manufacturers in India
 Maruti Suzuki India Ltd
 Fiat India Private Ltd
 Ford India Ltd
 Honda Siel Cars India Ltd
 Hyundai Motors India Ltd
 Renault
 Jeep
 Toyota Kirloskar Motor Ltd
 Skoda Auto India Private Ltd
 AUDI AG
 MERCEDES
 BMW
 FORCE MOTORS
 NISSAN MOTOR CO. LTD
 TATA MOTORS
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1.5 About the Company
About Maruti Suzuki Pvt Ltd:
Maruti Suzuki India ltd. primarily manufactures and has been the most favorite
automobile brand among Indian people since its inception. The company had started in
1982; however, it commenced the production of automobile a year later in 1983. The
very first model of Maruti, Maruti Suzuki 800, made its way to Indian roads in December
1983. The very first unit was bought by Mr. Harpal Singh of Delhi and he was handed
over the keys of the car by the then Prime Minister of India Indira Gandhi.
The second in the series was India's first MUV Maruti Suzuki Omni that was
launched in November 1984. The other models that came into market in subsequent years
were Gypsy in 1985, Maruti 1000 in 1990, Zen in 1993, Esteem in 1994, Wagoner in
1999, Swift in 2005, Grand Vitara in 2007, Maruti Suzuki A-Star in 2008, Ritz in 2009,
Eco in 2009, Alto K10 in 2010, Kizashi in 2011, Ertiga in 2012, Alto 800 in 2012,
Stingray in 2013, Celerio in 2013 and Ciaz in 2014.
Awards and recognition:
2013
 Dealership platinum award for overall performance 2012-13
 Workshop performance award
 Highest growth in wholesale.
2012
 All India best new infrastructure award 2012
 Dealership platinum award for overall performance 2011-12
 Workshop performance award
2011
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 New Initiative -VTS Regional service conference,Bangalore
 Lowest pending body repair vehicle,regional service conference,Bangalore
2010
 Spare parts Award,Lowest average inventory in stock months (work consumption less
than 3 crores).
2009
 Highest growth in sales.
 Sales Award,highest growth in Alto sales (top 20 cities).
 Service award (Innovative service systems implementation).
 Award for best new showroom (category A).
 Award for most consistent advertising through out the year.
 Award for most innovative Ad campaign.
 Young entrepreneur Award.
 Award for contribution in making Swift achieve the 1,50,000 milestone.
 Highest extended warranty Regional Awards,2008-09.
2008
 Best initiative for manpower retention category JDP City,Regional service conference
 Highest extended warranty Regional Awards,2007-08.
 Customer care team,South 2.
History Of Maruti Suzuki India Limited:
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A subsidiary a Suzuki a Japanese automobile and motorbike manufacturer, Maruti
Suzuki India limited is an Indian automobile manufacturer. It is the most well known and
well- recognized automobile manufacturer in India. This Indian automobile company is
popularly known as Maruti, which used to be called Maruti udyog limited at the time of
its inception. Maruti udyog limited was founded by the government of India in 1981, only
to merge with the Japanese automobile company Suzuki in october1982. The first
manufacturing factory of Maruti was established in Gurgaon, Haryana, in the same year.
Mr. R.C. bhargava is the chairman of the company and Mr. Kenichi Yukawa is the CEO
and managing director.
AUTHORIZED MARUTI SUZUKI CAR DEALER IN BARDOLI- OFFERS A
WEALTH OF VARIETY TO THE MARUTI AUTOMOTIVE CONSUMERS.
We believe that our impressive strides in the marketplace stem in equal parts from
our proactive approach and our customers' unstinting support, earned the only way we
know: by giving our customers the most appropriate car luxury solutions for each of their
needs, and by backing them up with consultancy, finance, after sales services and a
responsive after-market network. We are conscious of the fact that vehicles are more than
just a means of transporting people and goods; we understand that they have a deep and
far-reaching impact on society, the national economy and the environment.
As we start our second century of business, we are in a position to appeal to the
widest network of showrooms and service stations. Each of our Maruti automotive
brands has a unique personality and holds a distinct value in itself. We carefully select
those opportunities that enable us to deliver better ideas into the marketplace in new and
exciting ways. At Kataria, we create network to better connect with our customers. We
strengthen our relationships with our customers through our services like MGP, MOS,
MF we collaborate with others to revolutionize our core business processes and to stay
ahead of our rapidly changing industry. We choose new view to help system that
maximizes efficiency and operational services.
Kataria Group has its sights set firmly on the economic & premium sector of the national
automobile market. To achieve its aims, the company knows how to deploy its strengths
~By Keyur Modi Page 18
with an efficiency that is unmatched in the automotive industry. From research and
development to sales and marketing, Kataria Group is committed to the very highest in
quality for all its products and services. The company's phenomenal success is proof of
this strategy's correctness.
Financial services
We see financial services as a key factor for success in today's car world. We have
established an extensive product portfolio which supplies expert information and advice
for situations and questions relating to the finance sector. We are also proud to honor the
hard work of our business and marketing partners.
History of Kataria Automobiles Pvt. Ltd.
The KATARIA GROUP was founded by Mr. Shobhagmal Kataria in the year 1956 and
has grown to become one of the biggest Transport Operators in India, having 60
branches. The Kataria group has since expanded its wings, by way of expansion and
diversification in various sectors, the first being in 1984 with dealerships of LML – 2
wheelers. It further expanded its wings to become one of the Most Trusted Brand for
Maruti Car Dealership in 1996. Not stopping at its unclenched Automobile Growth, it
further acquired the dealership of TVS Two Wheelers in 2003
Today Kataria Automobiles, is one of the "most trusted brands" in the "Automobile
Dealership of Maruti Suzuki "with Showrooms in Ahmadabad, Surat, Navsari and Vapi
Today the Kataria Group is proud to have a family of 2000 dedicated, satisfied and
committed work force. The Group further has a "satisfied" customer base of more than
2, 00,000 happy families.
1.6 ORGANIZATIONAL STRUCTURE
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1.7 Functional Department
Tejas Patel
(COO)
Nishit Joshi
(RSM)
Sharmila Rathod
(HR)
Sachin Naik
(SM)
Pramod Patil
(TL)
BrijeshParekh
(TL)
Ketan Panchal
(TL)
SonaliMaisurya
(CCM)
Nilofar Shaikh
(CCE)
Jagruti Mistry
Shailesh
Dhimmar
(TL)
Kriti Patel
(IM)
Rajendra Sharma
(AH)
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Management of Kataria Automobiles Pvt. Ltd.
The Board of Directors and the Management of Kataria Group are committed to the
enhancement of its products and services, through sound business decisions, prudent
financial management and high standards of ethics throughout the organization, by
ensuring transparency and professionalism in all decisions and transactions and achieving
excellence in Corporate Governance by conforming to, and exceeding wherever possible,
the prevalent mandatory guidelines on Corporate Governance and by regularly reviewing
the Board processes and the Management systems for further improvement
VISION, MISSION, OBJECTIVE:
VISION
“The leader in the automobile industry, creating customer shareholder and delight
wealth. A PRIDE OF INDIA” core value of MUL
 Obsession of customer
 Flexible, fast, and first mover
 Creativity and innovation
 Partnership and networking
 Openness and learning
OBJECTIVE / MISSION
The objectives of Maruti Suzuki limited are as cited below
 Modernization of the automobile industry in India
 Production of fuel efficient vehicles to conserve scare resources.
 Production of biggest number of motor vehicles which was necessary for
Economic growth
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STANDING RULES:
• During the working days, the uniform must be clean and ironed with the identity
card and with other preferred accessories is compulsory. No relaxation in uniform
will be there from Monday to Friday in the week.
• If you found chewing tobacco, smoking or any other such activities, wil not be
tolerated in the company. If any of the employee is being found using these then
the strict decisions will be made accordingly by the concerned person without any
further notice.
• The detail reporting time will be at sharp 9:45 am. Employee must be regular and
be must on the time for the sales department.
• Jeans and T-shirt is strictly prohibited till Friday. In Saturday too T-shirt is not
allowed.
• In any of the various departments the male workers should not embarrasses or
harasses the female workers.
• Sales executive must have to maintain the sales kits and other material update and
handy.
• Employee must have to give reporting to the concerned person mentioned in their
job descriptions, not directly to the top head or authorized person.
• Teamwork is very essential element for the sales department as it is suitable way
to grow faster and safer.
LEAVE POLICY:
• A candidate will provide 2 holidays within a month after completion of probation
period of 3 months after DOJ.
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• If anyone will not take his/her 2 holidays in a month then it will carry forward to
next month. Leave period is from April to March. Yearly balanced lean will not
carry forward in the next year.
Other than emergency case, leave will not be approved more than 6 consecutive
days and leave paid in salary as per the leave balance.
• If anyone would come on Sunday (full day only) then he will take set off against
that Sunday in the same month otherwise it will get lapse & it will be highlighted
in the next month. Set off will be valid only if it will be highlighted in the leave
application. Verbal set off will be considered as a normal leave.
• Holiday will be considered only when intimate before 2 days from taking leave.
• If anyone doesn’t inform before taking leave in that case it will considered as a
LWP (leave without pay) & salary will be deduct according to leave taken.
• The person who is going to take leave he/she has to handover his/her work before
going on leave & that person will be responsible for doing that work on that day.
• If anybody’s leave extend from 2 leave then salary will be deduct according to
leaves taken.
• Half day will be considering in 2 days i.e. one will take it before lunch or after
lunch.
• First half is from 9:40 am to 1:30 pm.
• Second half is from 2:00 pm to 6:45 pm.
HR POLICIES:
• Timings are from 9:40 am to 6:30 pm (only for winter) rest of the month evening
timing is 6:45 pm for all the respondent (showroom).
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• If there is rush on festivals then time will exceed for respondent accordingly.
• If anybody comes late by 9:40 am then it will be consider as half day.
• Holiday will be considered only when intimate before 2 day from taking leave.
• The person who is going to take leave he/she has to handover his/her work before
going on leave & that person will be responsible for doing that work on that day.
• HR has also maintained IN & out register for respondent to keep record of no of
outgoings from office between 9:40 am to 6:45 pm to control over absence in the
office timings.
• If all executives are busy in taking enquiry then its floor in charge & sales manger
duty to take enquiry at that time & no customer will roam around alone in the
showroom.
• If anybody has any problem with anyone then it will anyone then it will solve in
common discussion between HR & with management.
• If anybody misbehaves then he/she will be given 2 memo, even that he/she is
doing same thing in that case 3rd times he/she will give fine of rs.500/- or as per
management decision.
• Employee will come in uniform from Monday to Friday & they can come in civil
dress on Saturday. T-shirts & jeans are not allowed in any of the day.
• Respondent must be in uniform in training/events.
• If any person want to leave his/her job then he/she has to give 1 month notice
period & complete all his/her pending work & he/she has to appoint one person in
place of him/her in this period then only he/she can leave the job.
DEPARTMENTAL STUDY
PRODUCTION MARUTI SUZUKI
~By Keyur Modi Page 24
Maruti Suzuki India limited has its manufacturing facilities at two locations in
India. The Gurgoan facility comprises three plants with the annual capacity of
manufacturing about 350000 vehicles however it is enabled to manufacture close to
900000 units annually the credit goes to the productivity advancement. Around
240000 k series engines are also produced at the Gurgaon annually facility.
Second in the series was Indian first MUV Maruti Suzuki Omni that is launch in
November 1984. The other models that come into market in subsequent years were
Gypsy in 1985
Maruti Suzuki India is planning to set up its third manufacturing facility in Ahmadabad
Gujarat soon over an area of 600 acres
MARUTI SUZUKI DEALERSHIP AND SALES IN INDIA
MARUTI SUZUKI India limited has its presence in state & union territories of
India. Maruti has its service centres in around 1454 cities and a sales network spread
Over 1097 Indian cities. The company has over 12500 employees working tirelessly
Day & night.
The company is achieving a huge landmark in 2012 when it sold its 10 million units.
Maruti procures over 1.5 million cars every year. In 666 town of India, Maruti have a
total of 933 dealership outlines until 31 march 2014.
SWOT ANALYSIS
Strength
~By Keyur Modi Page 25
 Maruti Udyog limited (MUL) is in a leadership position in the market with a
Market share of 48.74
 Major strength of MUL is having largest network of dealers and after sales
Service centres in the country.
 Maruti Suzuki recorded highest number of domestic sales with 9,66,447 units
From 7,65,533 units in the previous fiscal. It recently attained the 10 million
Domestic sales mark.
 Strong Brand Value and Loyal Customer Base are big strengths for MUL
 There are around 15 vehicles in Maruti Product portfolio. Has good product
Lines with good fuel efficiency like Maruti Swift, Diesel, Alto etc
 Alto still beats the small car segment with highest number of sales
 MUL has good market share and hence it’s after sales service is a major
Revenue contributor.
Weaknesses
 Low interior quality inside the cars when compared to quality players
like Hyundai and other new foreign players like Volkswagen, Nissan etc.
 Government intervention due to having share in MUL.
 Younger generations started getting a great affinity towards new foreign brands
 The management and the company’s labor unions are not in good terms. The
recent strikes of the employees have slowed down production and in turn
affecting sales.
 Maruti hasn’t proved itself in SUV segment like other players.
Opportunities
 MUL has launched its LPG version of Wagone r and it was a good move
simultaneously
 MUL can start R&D on electric cars for a much better substitute of the fuel.
~By Keyur Modi Page 26
 New DZire from Maruti will capture the market share and expected to create
the same magic as Maruti Esteem(currently not available)
 Export capacity of the company is giving new hopes in American and
UK markets
 Economic growth of the country is constantly increasing and the government is
working hard to increase the GDP to double digit.
Threats
 MUL recently faced a decline in market share from its 50.09% to 48.09 % in
the previous year(2011)
 Major players like Maruti Suzuki, Hyundai, Tata has lost its market share due
to many small players like Volkswagen- polo. Ford has shown a considerable
Increase in market share due to its Figo.
 Tata Motors recent launches like Nano 2012, Indigo e-cs are imposing major
Threats to its respective competitor’s segment
 China may give a good competition as they are also planning to enter into
Indian car segment.
1.8 Product Profile
Model Category Image
~By Keyur Modi Page 27
WagonR Hatchback
Swift Hatchback
Dzire Sedan
Eeco Minivan
Ertiga Mini MPV
Alto 800 Hatchback
~By Keyur Modi Page 28
Celerio Hatchback
Ciaz Sedan
Baleno Hatchback
S-Cross Mini SUV
Vitara
Brezza
Mini SUV
Ignis Hatchback
CHAPTER: 2 LITERATURE REVIEW
2.1 Literature Review
~By Keyur Modi Page 29
Once a topic has been decided, it is essential to review all relevant materials
which have a bearing on the topic. In fact, review of literature begins with a search for
suitable topic and continues throughout the duration of the research work. Since a
research report, either a dissertation or a thesis, is supposed to be an in-depth study of and
contribution to existing knowledge, a careful check should be made that the proposed
study has not previously been carried out
Kuvaas (2006) in his article titled “Performance appraisal satisfaction and employee
outcomes: mediating and moderating roles of work motivation” explored alternative
relationships between performance appraisal satisfaction and employee outcomes in the
form of self-reported work performance, affective organizational commitment and
turnover intention. A cross-sectional survey of 593 employees from 64 Norwegian
savings banks showed that performance appraisal satisfaction was directly related to
affective commitment and turnover intention. The relationship between performance
appraisal satisfaction and work performance, however, was both mediated and moderated
by employees’ intrinsic work motivation. The form of the moderation revealed a negative
relationship for employees with low intrinsic motivation and a positive relationship for
those with high intrinsic motivation. Implications for practice and directions for future
research are discussed.
Miller and Thornton (2006) in their article titled “How Accurate Are Your Performance
Appraisals?” state that accuracy of performance appraisals is very important in public
personnel management. They provide "benchmark" data from the research literature.
They also provide a method for correcting error in the data so that practitioners' data may
be more accurately evaluated. They also demonstrate the degree to which multiple raters
will improve the accuracy of appraisals. Finally, They make suggestions as to how the
PPM professional may improve the accuracy of performance ratings based on the
research concerning rating versus ranking performance, the supervisors' knowledge of the
employee and the number of sdimensions being appraised.
~By Keyur Modi Page 30
Catano, Darr and Campbell (2007)in their article titled, “Performance appraisal of
behaviour-based competencies: A reliable and valid procedure” cited that a new
performance appraisal system, developed for promotions in the Royal Canadian Mounted
Police non-commissioned officer ranks, fairly differentiated among candidates. Members
(N = 6,571) illustrated their performance on core competencies with behavioral
examples. Supervisors and then review boards used a BARS procedure to reliably rate
performance. Both candidates and supervisors supported the system. The performance
appraisal scores predicted career advancement in the organization.
Johnson and Shields (2007) in their article titled, “Lessons from management–union
partnership in teacher performance appraisal in the New South Wales public education
system” state that performance appraisal is frequently seen as one of the hallmarks of the
‘new managerialism’ in public sector human resource management. It is also commonly
represented as a device for individualizing the employment relationship. Yet even
appraisal offers scope for employee voice/participation, both individually and
collectively, and for varying degrees of management–union cooperation. This study
examines an unlikely case of management–union partnership in performance appraisal –
that applied since 2000 to teachers in Australia’s largest public schooling bureaucracy,the
NSW Department of Education and Training, whose teachers have a long history of
union solidarity and industrial militancy. The experiment can be seen as a union retreat
from confrontationism, a concession to managerialism, and a resignation to the
dominance of individualism over collectivism. However, it has also widened the scope
for both union and employee voice at the workplace level.
Sanwong (2008) in his article entitled, “The Development of a 360-Degree Performance
Appraisal System: A University Case Study”, examined the functioning of an innovative
360-degree performance appraisal system among a sample of 75 employees at a Thai
university. The data for the system came from supervisors, colleagues, clients and junior
staff as well as from the employees themselves. The validity of the system was examined
on two occasions. While all employees were satisfied with the system, support and
clerical staff in the university were more satisfied than academic staff. A number of
suggestions were made for improving the 'working' of such a system in a university
~By Keyur Modi Page 31
environment Addison and Belfield (2008) offered a replication for Britain of Brown and
Heywood’s analysis of the determinants of performance appraisal in Australia. Although
there are some important limiting differences between the two data sets — the Australia
Workplace Industrial Relations Survey (AWIRS) and the Workplace Employment
Relations Survey (WERS) — they reached one central point of agreement and one
intriguing shared insight. First, performance appraisal is negatively associated with
tenure: where employers cannot rely on the carrot of deferred pay or the stick of
dismissal to motivate workers, they will tend to rely more on monitoring, ceteris paribus.
Second, employer monitoring and performance pay may be complementary. However,
consonant with the disparate results from the wider literature, there is more modest
agreement on the contribution of specific human resource management practises, and still
less on the role of job control.
Herdlein, Kukemelkb and Turk (2008)in their article titled “A survey of academic
officers regarding performance appraisal in Estonian and American universities” state
that higher education in the Baltic Republic of Estonia is experiencing rapid change as
the country adjusts to a market economy in the post-Soviet era and adheres to principles
established through the Bologna Process. Research in the area of performance appraisal,
and the most effective approaches to motivate academic staff, is a key factor influencing
change in a rapidly developing society. Using qualitative research, a survey was
submitted to academic officers in 11 Estonian and four western New York (USA)
colleges and universities. A total of 29 individuals completed surveys in Estonia (a
response rate of 69 per cent). A convenience sample of eight academic administrators
returned instruments in western New York, giving a response rate of 100 per cent. The
results of the survey indicated that appraisal systems within American higher education
are similar and based on a long tradition of connecting appraisal to the guidelines
governing permanent appointment (tenure). Appraisal within Estonian universities is still
rather basic and unified systems do not yet exist, as individual institutions employ a
variety of procedures. The study was intended to accelerate the process of performance
appraisal in Estonia and Eastern Europe.
~By Keyur Modi Page 32
Narcisse and Harcourt (2008) in their article titled, “Employee fairness perceptions of
performance appraisal: a Saint Lucian case study” identified the essential factors which
influence employees’ fairness perceptions of their performance appraisals, and determine
the applicability of these factors to the experiences of employees in a Saint Lucian public
service organization. Fairness perceptions are of three main types. First, distributive
justice refers to the perceived fairness of an actual appraisal rating. Second, procedural
justice refers to the perceived fairness of procedures used to determine the appraisal
rating. Third, interactional justice refers to the perceived fairness of the rater’s
interpersonal treatment of the ratee during the appraisal process. A qualitative case study
method was used to gain a rich understanding of employee perceptions of the fairness of
their performance appraisals. Data were obtained from both completed appraisal forms
and interviews with 20 knowledgeable employees. All interviews were transcribed and
assessed using a thematic analysis. Overall, results show that distributive, procedural, and
interactional justice factors identified in the existing literature influence employee
perceptions of fairness in their appraisals. Results suggest that employees also consider
four additional justice factors, as yet not formally recognized in the justice literature, one
distributive – the consistency in reward distribution – and three procedural – appraisal
frequency, job relevant criteria, and rater and ratee training.
Vasset (2010) in his article titled “Employees' perceptions of justice in performance
appraisals” states that of all the tasks undertaken by human resource managers,
performance appraisals (PAs) are one of the most unpopular among employees (Meyer
1991, Murphy and Cleveland 1995, Holbrook 2002, Jackman and Strober 2003). As PA
guides and plans show (Fletcher 2004, Catalyst One 2010), PAs can be implemented in
similar ways in organisations throughout Europe and developed countries elsewhere. But,
if employees perceive PA processes as unfair, they may reject the usefulness and validity
of the information they receive and so may not be motivated to change behaviour. This
article concerns perceptions of organizational justice and explains the results of a study of
perceived fairness in PAs among nurses and auxiliary nurses in Norway's municipal
health service.
~By Keyur Modi Page 33
Ravichandran, Venkataraman and Banumathy (2011) state thate the state of Tamil Nadu
with 37 operational sugar mills is a significant sugar producing state the country,
contributing roughly 9-10 per cent to be national sugar production. The sugar industry
has absorbed about 5 lakh rural people in the state. This paper studied that performance
appraisal system followed in cooperative sugar mill with a sample size of 75 labourers.
The study has found that the sugar mill had adopted a good appraisal system and takes
the appraisal at the time of probation period and further during the career promotion. The
study has also found that there is a gap between the actual and desired performance.
Hence, it was suggested to conduct annual performance appraisal to improve the
efficiency of the employee and provide training on dependability, communication slill
and skill development to improve the employee’s management quality.
2.2 INTRODUCTION TO PERFORMANCE APPRAISAL
Performance appraisal is an important device for respondent 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”
“Performance Appraisal is a systematic way to evaluate the skills, abilities, knowledge,
productivity, human relation etc in employee to perform his current job well”.
“Performance Appraisal is the technique of fair rating of the respondent to evaluate
performance and potential for development of a group member and the organization”.
~By Keyur Modi Page 34
“Performance Appraisal is concerned with determining the differences of performance
among the respondent working in the organization”.
“Performance Appraisal determines who shall receive merit increases, council respondent
on their improvement, determines training needs, determines promo ability identifies
those who should be transferred”.
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 behaviour. 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, dependability, co-operation, judgment,
versatility, health and the likes. This is concerned with determining the performance
among the respondent 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 respondent on a
given job and his / their potential for future development”. It consists of all formal
procedures used in working organizations and potential of respondent 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 respondent.
MEANING OF PERFORMANCE APPRAISAL
It is concern with determining the performances among the respondent
working in the organisation. The appraisal is done by individual immediate superior.
“Performance Appraisal is a technique to improve the efficiency of an organization by
attempting the maximum efforts from individuals employed on it”.
~By Keyur Modi Page 35
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.
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:-
Evans (1986) asserts that many respondent believe that their promotion or salary
increments depend mostly on their performance. Respondent therefore are in a dilemma
and consider this situation as ‘survival of the fittest’. They know for a fact that, their
performance will only be taken into consideration at the end of the day. So, in order to
grow in the company they need to be proactive towards their work. The feedback the
employee receives from his superior, may simply describe the level of performance
achieved.
2.3 THEORETICAL BACKGROUND OF STUDY
OVERVIEW OF THE PERFORMANCE APPRAISAL SYSTEM:
Performance appraisal is the process of making an assessment of the performance and
progress of the respondent of an organization. Once an employee has been inducted into
the organization and given the necessary training, the next step is to assess his
performance periodically. Such assessment would indicate whether he is efficient or not.
Performance appraisal is also known as “merit rating” or “efficiency rating”.
The following factors are given weight age in evaluating the performance and
progress of an employee:
~By Keyur Modi Page 36
- Knowledge of work
- Extent of co-operation with colleagues and superiors.
- Initiative
- Quality of work.
- Target attainment.
- Aptitude.
- Degree of skill.
- Discipline
- Punctuality
- Honest
- Ambition
- Crisis management, etc.
Performance appraisal to performance development :
In fact, performance appraisal, in recent times, emerged as performance analysis and
development. Performance analysis and development is a departure from the traditional
and controlling approach. It view from the development aspect of the employee.
Therefore, the main purpose of performance analysis and development is to analyze the
present performance of the employee from multiple viewpoints, observe the
gap/developmental needs and develop the employee.
2.4 STATEMENT OF THE PROBLEM
Much of literature dealing with Human Resource Management and its issues
recognize the importance of performance appraisal system which occurs in the
organization. All organization faces the problem of directing the energies of their
staff to the task of achieving business goals and objectives. In doing
so,organization need to devise means to influence and channel the behaviours‟
of their respondent so as to optimize their contributions. Performance appraisals
constitute one of the major management tools employed in this process.
2.5 NEED OF THE STUDY:
~By Keyur Modi Page 37
 This study helps building progress towards organizational goals.
 To help the superior to have a proper understanding about their subordinates.
 To ensure organizational effectiveness through correcting the employee for
standard and improved performance and suggesting the changes in employee
behaviour.
 It provides information about the performance ranks.
 To provide information this helps to counsel the subordinates.
 To facilitate fair and equitable compensation based on performance.
2.6 OBJECTIVE OF THE STUDY
PRIMARY OBJECTIVE:
 To identify the actual performance appraisal of the respondent.
SECONDARY OBJECTIVES:
 To create and maintain a satisfactory level of performance.
 To maintain records in order to determine compensation packages wage structure,
salaries raises etc.
 To provide feedback to respondent regarding their performance and related status.
 To review and retain the promotional and other training programmers.
2.7 Limitation Of The Study
 This study is only limited to copper co-operative ltd sugar dadariya
 Some of the respondents were afraid to give true information in some cases.
 There may be bias on the part of respondent while answering to the questions
CHAPTER:3 RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN:
~By Keyur Modi Page 38
Descriptive Research
A researcher should think about the way in which he should proceed in attaining
his objective in his research work. He has to make a plan of action before starting the
research. This plan of study of a researcher is called the research design. Descriptive
research design is used for this study. Descriptive research design is used to those
studies which are concerned with characteristics of a particular individual or a group.
3.2 SOURCES OF DATA:
Primary data
Primary data are those which are collected for the first time which is original in
character. They are collected directly and are reliable. The primary data was collected
through a well structured questionnaire with the help of telephonic interview.
Secondary data
Secondary data is those which have already been collected by someone else.
Secondary data has been collected from company records, text books, websites etc.
3.3 DATA COLLECTION METHOD:-
There are various data collection method to collect the data from the respondents
like observation, surveys, experiments. In this study the survey (Questionnaire) is
conducted to collect the data from the respondent.
3.4 POPULATION:
~By Keyur Modi Page 39
A total of 95 employee who work the Kataria Automobiles Bardoli from the year
2019-20 are taken as population. So the 95 is the total population for the study among
them all 95 respondents responses to our study.
3.5 SAMPLING TECHNIQUE:
1. Probability sampling method:
2. Non-probability sampling method:
Convenient sampling:
Convenience sampling, as the name implies is a specific type of non-probability
sampling method that relies on data collection from population member who are
conveniently available to participate in study. Convenience sampling is a type of
sampling where the first available primary data will be use for the research without
additional requirement. In it, no inclusion criteria identified prior to selection of subjects.
All subjects are invited to participate.
3.6 SAMPLING FRAME:-
Maruti Suzuki Kataria(BARDOLI)
CHAPTER: 4 Data analysis & Interpretation
~By Keyur Modi Page 40
Q.1 In your opinion performance appraisal is?
INTERPRETATION:-
From the above graph it can be said that out of 100% respondents, 66% respondent’s
opinion performance appraisal is nothing but evaluation of employee other 28%
respondent’s opinion is performance appraisal is promotion of employee and raise 6%
respondent’s opinion is performance appraisal is job satisfaction of employee and
motivation of employee.
So we can interpret that majority of respondent’s opinion, performance appraisal is
nothing but evaluation of employee.
66%
28%
1%
5%
Performance Appraisal
Evaluation of Employees
Promotion of Employees
Job Satisfaction of Employees
Motivation
~By Keyur Modi Page 41
Q.2 Which performance appraisal method used in your
organization?
Interpretation:-
From the above chart it can be said that out of 100% respondents, 53% respondent says
that Rating method is used in their organization, 27% respondents says that any other
method use for performance appraisal in their organization, 18% respondents says that
ranking method uses in their organization, 1% respondent says that management by
objective method uses in their organization and raise 1% respondent says that 360
appraisal system use for performance appraisal in their organization.
So, we can interpret that most of the respondent says that rating system is use in their
organization.
1%
1%
18%
27%
53%
PerformanceAppraisal
Method
Management by objective
360 appraisal system
Ranking
Any other
Rating
~By Keyur Modi Page 42
Q.3 How many times performance appraisal is conducted
in your organization?
INTERPRETATION:-
From the above chart it can be said that out of 100%respondents, 4% respondents says
that performance appraisal conducted once in a year in their organization,92%
respondents says that performance appraisal conducted twice in a year,4% respondent
says that performance appraisal conducted monthly and, no one respondent agree that
some specific time for conducting performance appraisal in their organization.
So, we can interpret that most of the respondent says that performance appraisal
conducted twice in a year in their organization.
4%
92%
4%
0%
PerformanceAppraisal
conducted
Once a year
Twice a year
Monthly
No specific time
~By Keyur Modi Page 43
Q.4 Who is responsible for conducting performance
appraisal program?
INTERPRETATION:-
From the above chart it can be said that out of 100% respondent, 94% respondent says
that superior are responsible for conducting performance appraisal program , 4%
respondent says that peers are responsible for conducting performance appraisal program
, 2% respondent says that costumer are responsible for conducting performance appraisal
program and no one respondent says that all are responsible for conducting performance
appraisal program.
So here, we can interpret that majority of respondent says that superior are responsible
for conducting performance appraisal program.
94%
4% 2%0%
Responsibilityfor conductin
Performanceappraisal
Superior
Peers
Customer
All
~By Keyur Modi Page 44
Q.5 Do you get inform about performance appraisal
program?
INTERPRETATION:-
From above chart it can be said that, no respondent are always inform for performance
appraisal program, 26 respondent are sometime informed about performance appraisal
program ,no one employee is inform about performance appraisal program, 66
respondent are oftenly informed about performance appraisal program and, 3 respondent
are rarely informed about performance appraisal program. .
So here, we can interpret that major respondent are oftenly informed about performance
appraisal program.
0
10
20
30
40
50
60
70
Always Often Sometime Rarely Never
0
66
26
3
0
Series1
~By Keyur Modi Page 45
Q.6. Do you think incentive are given strictly on the basis
of performance appraisal?
INTERPRETATION:-
From above chart it can be said that, 1 respondent thinks that always Incentives are
given strictly on the basis of performance appraisal, 24 respondents thinks that oftenly
Incentives are given strictly on the basis of performance appraisal, 66 respondents thinks
that sometime Incentives are given strictly on the basis of performance appraisal, 4
respondent thinks that rarely Incentives are given strictly on the basis of performance
appraisal and, no one thinks that incentive are given strictly on the basis of performance
appraisal.
So here, we can interpret that major respondents are thinks that sometime Incentives are
given strictly on the basis of performance appraisal.
0
10
20
30
40
50
60
70
Always Often Sometime Rarely Never
1
24
66
4
0
Series1
~By Keyur Modi Page 46
Q.7 Do you think performance appraisal help in improving
job performance?
INTERPRETATION:-
From above chart it can be said that, 98% respondent are give positive response they
thinks that Performance Appraisal help in improving respondent job performance and
2%respondent are give negative response they thinks that Performance Appraisal does
not help in improving respondent job performance.
So here, we can interpret that majority respondent are thinks that Performance Appraisal
helps in improving respondent job performance.
98%
2%
Job performance
improvement
Yes
No
~By Keyur Modi Page 47
Q.8 As per your opinion, performance appraisal system
reviewed and update now and then?
INTERPRETATION:-
From the above chart, 9 respondent are thinks that performance appraisal system
reviewed and update very frequently, 82 respondent are thinks that performance appraisal
system reviewed and update frequently, 4 respondent are thinks that performance
appraisal system reviewed and update Occasionally and no one employee are thinks that
performance appraisal system reviewed and update rarely and never.
So here, we can interpret that majority of respondent are thinks that performance
appraisal system reviewed and update frequently.
0
10
20
30
40
50
60
70
80
90
Very
Frequently
Frequently Occasionlly Rarely Never
9
82
4
0 0
Series1
~By Keyur Modi Page 48
Q.9 Are you getting formal feedback after performance
appraisal for performance improvement?
INTERPRETATION:-
From above chart it can be said that, no one respondent are thinks that performance
appraisal provides formal feedback to respondent for performance improvement very
frequently, 19 respondent are thinks that performance appraisal provides formal feedback
to respondent for performance improvement frequently, 71 respondent are thinks that
performance appraisal provides formal feedback to respondent for performance
improvement occasionally, 5 respondent are thinks that performance appraisal provides
formal feedback to respondent for performance improvement, rarely and no one
respondent thinks that performance appraisal provides formal feedback to respondent for
performance improvement never.
So here, we can interpret that majority of respondent are thinks that performance
appraisal provides formal feedback to respondent for performance improvement
frequently.
0
10
20
30
40
50
60
70
80
0
19
71
5
0
Series1
~By Keyur Modi Page 49
Q.10 What is the reason for conducting performance
appraisal in your organization?
INTERPRETATION:-
From above chart it can be said that, 10% respondent thinks that for performance
improvement performance appraisal is conducting, 21% respondent says that for
compensation adjustment, 2% respondent are says that for placement decision and 67%
respondent says that for training and development performance appraisal is conducting.
So here, we can interpret that majority of respondent says that for training and
development needs performance appraisal are done in organization.
10%
21%
2%
67%
Reason for conducting
performanceappraisal
Perfrormance
improvement
Compensation
adjustment
Placement decision
Training and
Development needs
~By Keyur Modi Page 50
Q.11 Is the top level management partial in performance
appraisal?
INTERPRETATION:-
From the above chart we can says that 60% chances for involving top management in
performance appraisal and 40% chances for not involving top management in
performance appraisal.
So we can interpret that 60% respondent says that the top management involve in
performance appraisal program.
40%
60%
Involvement of top management
Yes
No
~By Keyur Modi Page 51
Q.12 Do you agree performance appraisal helps you to set
and achieve meaningful Goals?
INTERPRETATION:-
From above chart it can be said that 13 respondent are strongly agree that performance
appraisal helps people to set and achieve meaningful goal, 82 respondent are agree that
performance appraisal help people to set and achieve meaningful goal, no one respondent
are neutral, disagree and strongly disagree that performance appraisal helps people to set
and achieve meaningful goal.
So here, we can interpret that majority of respondent are agree that performance appraisal
helps people to set and achieve meaningful goal.s
0
10
20
30
40
50
60
70
80
90
Strongly
agree
Agree Neutral Disagree Strongly
Disagree
13
82
0 0 0
Series1
~By Keyur Modi Page 52
Q.13 After performance appraisal improvement in your
performance.
INTERPRETATION:-
From the above graph it can be said that 16 employee’s performance improve in to10-20,
71 employee’s performance improve in to 20-30 and 8 employee’s performance improve
in 30 to above criteria.
So we can interpret that 71 employee’s performance improve in to 20-30 criteria.
0
10
20
30
40
50
60
70
80
10 to020 20 to 30 30 to above
16
71
8
Series1
~By Keyur Modi Page 53
PERSONAL DEATILES:-
 Gender
 Annual income
75%
25%
Male
Female
0%
68%
32%
0%
Less than 100000
100000-200000
200000-500000
More than 500000
~By Keyur Modi Page 54
 Education qualifications
0%
26%
74%
Diploma or below
Post graduate or below
Graduate or below
~By Keyur Modi Page 55
CHAPTER: 5 FINDINGS
From the above data and interpretations and from the various pie charts and the bar
graphs, the following findings has been found.
 In this study employee of kataria automobile were taken into the study among
them 71 employyes were male while the remaining 24 employees were females.
 Among 95 respondents, 63 respondent says that performance appraisal is nothing
but evaluation of employee while remain respondent says that performance
appraisal is promotion of employee and job satisfaction of employee.
 Among 95respondent, majority of respondent says that Rating method of
performance appraisal are used in their organization.
 From all the respondents, highest respondent give response that performance
appraisal are conduct twice in a year in their organization.
 Among 95 respondents, 89 respondent says that superior are responsible for
conducting performance appraisal program while other 6 respondent says that
customers and peers are responsible for conducting performance appraisal
program.
 Among all the respondent, majority respondent says that oftenly they are
informed about conducting performance appraisal program in their organization.
 Among all 95 respondents, 66 respondent are some time agree on incentives are
gives on the bases of performance appraisal which is said by highest respondent.
 Among all 95 respondents, 93 respondents are agree that performance appraisal is
help in improving job performance.
 From all the respondent, majority respondent agree that performance appraisal
system is frequently reviewed and update.
 Among 95 respondents, majority of respondent are thinks that performance
appraisal provides formal feedback to respondent for performance improvement
frequently.
~By Keyur Modi Page 56
 Among all the respondents, majority of respondent give response that training
and development needs is the reason for conducting performance appraisal
program.
 Among 95 respondents, 57 respondent are agree that top management is
participate in performance appraisal and other 38 respondent does not agree with
involvement of top management in performance appraisal program.
 From all the respondents, majority respondent are agree that performance
appraisal helps them to set and achieve meaningful goal.
 From all the respondents, majority respondent says that after performance
appraisal their performance is increase in 20-30 criteria.
~By Keyur Modi Page 57
CHPATER: 6 CONCLUSION
 With the help of the data analysis and the findings we can conclude that
performance appraisal is nothing but evaluation of the employee according
to employees of the kataria maruti Suzuki automobile.
 We can conclude that in kataria maruti Suzuki automobile rating method
is use for performance appraisal.
 We can conclude that performance appraisal program can be done twice in
year in kataria automobile, superior are responsible for conducting
performance appraisal program, in this top management also involve. We
also conclude that performance appraisal program helps into improving
employee’s performance, with the help of performance appraisal
employee’s can set and achieve meaningful goals and they are satisfied
with their job as well as the company.
~By Keyur Modi Page 58
BIBILIOGRAPHY
 https://www.kataria.com.in
 https://www.zigwheels.com/newcars/Maruti-Suzuki/ /specifications#leadform
 http://shodhganga.inflibnet.ac.in/
~By Keyur Modi Page 59
ANNEXURE
QUESTIONNAIRE:-
QUESTIONNAIRE FOR THE PERFORMANCE APPRAISAL
I am Hetvi Shah, a management student of “TMES Institute of Management,”
conduct a study on“Performance Appraisal at Maruti Suzuki Kataria” This
exercise is a part of research work towards fulfilling the requirement of the
management course. It would be glad if you could spare your valuable time to
answer few questions. I assure you that the views conveyed by you will be used for
academic purpose only and secrecy would be maintained.
Instruction:
1. Please tick mark () in as when asked to do.
2. Provide the information in detail whenever it is asked to you.
3. Please give the true feedback.
Q.1 In your Opinion performance Appraisal is ?
A) Evaluation of Employees
B) Promotion of Employees
C) Job Satisfaction of Employees
D) Motivation
Q.2 which performance appraisal method used in your organization?
(a) Management by objective (b) 360 appraisal system
(c) Ranking (d) Any other
(e) Rating
~By Keyur Modi Page 60
Q.3 How many times performance appraisal is conducted in your organization?
(a) Once a year (b) Twice a year
(c) Monthly (d) No specific time
Q.4 who is responsible for conducting performance appraisal program?
(a) Superior (b) Peers
(c) Customer (d) All
Statement Always Often Sometime Rarely Never
Q.5 Do you
inform your
employees
about
performance
appraisal
programme?
Q.6 Do you
think
incentives
are given
strictly on
the basis of
performance
appraisal?
~By Keyur Modi Page 61
Q.7 Do you think Performance Appraisal help in improving your job performance?
(a) Yes (b) No
Statement Very
Frequently
Frequently Occasionall
y
Rarely Never
Q.8 As per your
opinion,
performance
appraisal system
reviewed and
update now and
then?
Q.9 Are you
getting formal
feedback after
performance
appraisal for
performance
improvement?
Q.10 What is the reason for conducting performance appraisal in your
organization?
(a) Performance improvement (b) Compensation adjustment
(c) Placement decision (d) Training and Development needs
Q.11 Is the top level management partial in performance Appraisal ?
A) Yes
B) No
~By Keyur Modi Page 62
Q.12 Do you agree performance appraisal helps you to set and achieve meaningful
goals?
(a) Strongly agree (b) Agree
(c) Neutral (d) Disagree
(e) Strongly Disagree
Q.13 After performance appraisal improvementinyour performance.
A) 10 – 20
B) 20 – 30
C) 30 – above
Personal detail
1. Name: ___________________________
2. Age: _______
3. Gender:
a. Male b. Female
4. Annual Income:
a. less than 100000 b. 100000 – 200000
c. 200000 – 500000 d. More than 500000
5 . Contact no:-
~By Keyur Modi Page 63
THANK YOU

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“To Study Performance Appraisal System in Kataria Automobile Pvt Ltd”

  • 1. ~By Keyur Modi Page 1 A SUMMER INTERNSHIP PROJECT REPORT ON ““TO STUDY PERFORMANCE APPRAISAL SYSTEM IN KATARIA AUTOMOBILE PVT LTD” AT KATARIA AUTOMOBILE, BARDOLI OFFERED BY GUJARAT TECHNOLOGICAL UNIVERSITY, AHMADABAD PREPARED BY: MODI KEYUR R. MBA (SEMESTER - III)
  • 2. ~By Keyur Modi Page 2 Chapeter-1 General Information 1.1 INTRODUCTION ON AUTOMOBILE INDUSTRY The automobile industry, along with the auto components industry, is one of the core industries in India. A well developed shipping system plays a key role in the development of an wealth and India is no exception to it. Automobile is one of the biggest industries in the global market. Due to its strong forward and backward linkages with several key segments of the economy. Automobile Sector occupies a well-known place in the fabric of Indian Economy. Automobile sector is leader in product and process technologies in the manufacturing sector. It has been documented as one of the drivers of economic growth and the domestic automobile industry is believed to be the indicator of the economy. Such a belief is in line with international trends since in most mature economies the automobile industry’s performance is viewed as a reflection of the economy’s wellbeing. According to data published by Department of Industrial Policy and Promotion (DIPP), ministry of Commerce, the amount of cumulative foreign direct investment (FDI) inflow into the auto sector from April 2000 to November 2012 was worth US$7,518 million. The auto sector accounts for 4 per cent of the total FDI Inflows in India. In April- November 2012, 4 percent growth was registered by the India’s scooter and motorcycle manufacturers which were conducted by the Society of Indian Automobiles Manufacturers (SIAM). There is more focus on the innovative products, supply chains and technologies by the Indian and the global markets. Development in the automobile sector with the new Hybrid and electric cars is one of the key markets by te Indian manufacturers. About 13 million people get the employment due to the automobile industry in the Indian work class. The four segments of the automobile sectors are two wheelers, passenger vehicles, commercial vehicles and three wheelers. India is the fastest growing passenger car markets in the world in two wheelers and the fifth largest commercial vehicles manufacturers. In addition India is 4th largest passenger car market in Asia.
  • 3. ~By Keyur Modi Page 3 In last two years, the Indian auto sector has achieved a fabulous growth rate of 26 percent. But there was only 12 percent growth in the 2012 as per SIAM. The trend of the growth stay stable on 10 percent for 2013. The fuel cost, cost of registration, road tax, ownership costs and the slow rural income growth were the major reasons for the stable growth. But offensive growth is expected in next few years due to the mix hybrid cars and electrical cars. Government of the India has launched the automotive mission plan in 2016 to grow the Indian industry to size by 2016 to contribute 10 percent in national gross domestic product (GDP). The rapid growth of automobiles industry is due to the meeting of a lot of positive factors. These factors have contributed to result in the introduction of new models and technology. Following are some of the important growth drivers: (1) Road infrastructure development: Infrastructure development in India has contributed majorly in the country’s economic transformation and growth during the last decade. Development of Road is one of key segment of infrastructure development in India. With a total length of 4.1 million km, today Indian road network is the second largest in the world. In 2011/12, The Government awarded projects for construction of 7,900 km. According to the to statistics released by Department of Industrial Policy and Promotion (DIPP), USS 644 million FDI was received in the sector construction activities during April-September 2012-13. The huge development of road infrastructure has mad road transport both in the case of passenger traffic and goods transport a feasible, cost effective and speedy option of transportation. (2) Increase in per capita income: India’s gross national income per capita has increase to Rs.53,331/- in 2010- 11, which is three times the per capital income of Rs.19040 in 2002-03,averaging 13.7% growth over these eight years. This has pushed up the demand for passenger vehicles in India directly and commercial vehicles indirectly due to retail explosion and industrial boom for consumer durables. Rising incomes among Indian population will lead to increase affordability, increasing domestic demand for vehicles, especially in the small car segment.
  • 4. ~By Keyur Modi Page 4 (3) Research & Development and Innovations: Research & Development and Innovations are fuel for development of automobile industry. Since in Automobile sector survival of the fittest is determined by innovation, the innovations and inventions of new processes and techniques is the heart of the automobile industry. Car manufacturers are investing nearly 1% of total sales on R&D, R&D for Vehicles based on alternative fuels will be an area of interest for both consumers and auto makers. National Automotive Testing and R&D infrastructure Project (NATRIP) has been set up in Rae Bareilly, Ahmednagar, Pune, Manesar, Silchar, Indore and Chennai for increase the R&D infrastructure. (4) Growing middle and working class population: With the Increase in per capita income, growing employment opportunities with opening up of private sector, there is conversion from lower class to middle class. According to the planning Commission report, between the year 2003 and 2009, 130 million people would have been added to the working population. According to a finding from McKinsey, the middle income group will grow from 50 million to 550 million by 2025. The growing middle class population has resulted in increase in demand of two wheelers and four wheelers in India. (5) Availability of cheaper and easier finance: Not only the financial institutions, but all nationalized and listed banks offers loans for purchase of passenger and commercial vehicles on very easy terms and low interest rate on installment basis to consumers. By easy availability of finance has made the dream and hope of owning a vehicle for middle class families. (6) Rising per capita GDP: The per capita GDP of India increased from 1200 USD in 2011 to almost 1330 USD in 2012. This is further expected cross the 2000 mark by 2015. The purchasing power will increase, which will result in increase in demand of automobile industry in India.
  • 5. ~By Keyur Modi Page 5 HISTORY OF AUTOMOBILE INDUSTRY The automobile history is quiet old which is four centuries back when the first invention is taken in 1769. Nicolasan Cugnot a French engineer was the first person to invent the self powered, three wheeled tractor which runs with the help of steam engine. At that time most of the engines were made with steam engine which was heavy and large in shape. After that the electric engine were created. The first electric engine was created by the Scotman Robert Anderson in 1832. In 1842 Thomas Davenport of the U.S.A and Scotsman Robert Davidson invented more applicable automobiles, making use of non-rechargeable electric batteries. Col. Rookes Crompton introduced public transport wagons strapped to and pulled by imported steam road rollers called steamers. The maximum speed of these buses was 33 kms/hr. The first theoretical plans for a motor vehicle were drawn by Leonardo da Vinci and Isaac Newton. History of Automobile Industry reveals that US dominated the automobile markets around the globe. There were no famous competitors at that time. After Second World War in 1945 the Automobile Industry of other technologically advanced nation such as Japan and certain European nation gained energy. The U.S. Automobile Industry was hectic with foreign automobile companies, especially Japan Germany within a very short period beginning early 1980s. The history of automobile industry in India is also quite old. Simpson & Co established in 1840 were the first to build a steam car and a steam bus in India. The first car ran on India’s roads in 1898 in Bombay. Ager the end of the World War a large number of military vehicles come on the roads in India in 1919. American General Motors, a wholly owned Indian subsidiary of started assembly of CKD Trucks and Cares in 1928 In Bombay. Canadian Ford Motors started assembly of cars in 1930-31 in Madras, Bombay and Calcutta. In 1942 Hindustan Motors Lt was incorporated. Hindustan Motors produced its first vehicle in 1950. In 1944 premier Automobiles Ltd incorporated. The first vehicle was produced by it in 1947. Thereafter, in 1947 Bajaj started assembly of Auto in its
  • 6. ~By Keyur Modi Page 6 scheme of replacing cycle rickshaw by auto under a license from Piaggio. After independence, the Government of India and the private sector launched efforts to create and automotive component manufacturing industry to supply to the automobile industry. Due to nationalization and the license raj, the growth was relatively slow in the 1950s and 1960s. After 1970, the automotive industry stared to grow. The growth was mainly driven by tractors, commercial vehicles and scooter. Cars were still a major luxury. Till the early eighties, the automobile industry had very slow growth. Until 1982, there were only three manufacturers who had complete sway in the sector. They were, Hindustan Motors, Premier Automobiles and Standard Motors. The way of perform started in the early nineteen eighties with a slew of bold policy initiatives. The Government allowed foreign technology with or without equity participation with Indian companies. During This period in Car Segment, Suzuki (Japan) made entry in the field of vehicles in India. In two wheeler segment following companies made entry: Suzuki, Honda, Kawasaki, Yamaha – all from Japan, Honda, Piaggio (Italy) Scooters : Steyr Daimler Puch (Austria), Zundapp (Germany) Mopeds : Agrati Garelli (Italy) In 1982 Maruti Udyog Limited (MUL) came up as a Government initiative in collaboration with Suzuki of Japan to establish volume production of contemporary models. The fruits of first wave of initiatives were consolidated and then in early 1990s another tranche of reforms was made by Government allowed which paved way to develop the automobile sector further. The Indian automotive industry has demonstrated sustained growth as result of these reforms on various dimensions, like a variety of choices for the customer, modernity of offerings, quality consciousness or even scale of production, many India companies have equaled, if not surpassed, global standards. Several Indian automobile manufacturers such as Tata Motors, Maruti Suzuki and Mahindra and Mahindra, expanded their domestic and international operations. India’s robust economic growth led to the further expansion of its domestics automobile marketwhich has attracted significant India-specific investment by multinational automobiles manufacturers.
  • 7. ~By Keyur Modi Page 7 Thus the dong away of licensing in 90s saw further growth and expansion in the automobile sector in India. This is when 17 new ventures came up, out of which 16 were for manufacture of cars. There are at present 12 manufacturers of passenger cars, 5 manufacturers of MUVs, 9 manufacturers of commercial vehicles, 12 manufacturers of two-wheelers, 4 manufacturers of three wheelers and 14 manufacturers of tractors, besides 5 manufacturers of engines 1.2 World Market
  • 8. ~By Keyur Modi Page 8 With the hundreds of manufacturers in the world, the automobile industry has started in the year 1860 for the commutation. United States ruled the world for many years in the production of the automobile sector. In the year 1929 when the great depression was there in the world, at that time total 32 lacks cars were in the use among them 90 percent of the cars were produced by the United states. After the world war two, about ¼ of the worlds production for cars were manufactured by the United states. In 1994, the Japan overtakes the United States and become the world’s leader in automobile sector. China took the world’s leader position in 2012 and defeated the United states and the Japan by producing double production then the other major leading countries. SAFETY Safety is a state that implies to be protected from any risk, danger, damage or cause of injury. In the automotive industry, safety means that users, operators or manufacturers do not face any risk or danger coming from the motor vehicle or its spare parts. Safety for the automobiles themselves, implies that there is no risk of damage. Safety in the automotive industry is particularly important and therefore highly regulated. Automobiles and other motor vehicles have to comply with a certain number of norms and regulations, whether local or international, in order to be accepted on the market. In case of safety issues, danger, product defect or faulty procedure during the manufacturing of the motor vehicle, the maker can request to return either a batch or the entire production run. This procedure is called product recall. Product recalls happen in every industry and can be production-related or stem from the raw material. Product and operation tests and inspections at different stages of the value chain are made to avoid these product recalls by ensuring end-user security and safety and compliance with the automotive industry requirements. However, the automotive industry is still particularly concerned about product recalls, which cause considerable financial consequences. ECONOMY
  • 9. ~By Keyur Modi Page 9 Around the world, there were about 806 million cars and light trucks on the road in 2007, consuming over 980 billion litres (980,000,000 m3) of gasoline and diesel fuel yearly. The automobile is a primary mode of transportation for many developed economies. The Detroit branch of Boston Consulting Group predicts that, by 2014, one- third of world demand will be in the four BRIC markets (Brazil, Russia, India and China). Meanwhile, in the developed countries, the automotive industry has slowed down. It is also expected that this trend will continue, especially as the younger generations of people (in highly urbanized countries) no longer want to own a car anymore, and prefer other modes of transport. Other potentially powerful automotive markets are Iran and Indonesia. Emerging auto markets already buy more cars than established markets. According to a J.D. Power study, emerging markets accounted for 51 percent of the global light-vehicle sales in 2010. The study, performed in 2010 expected this trend to accelerate. However, more recent reports (2012) confirmed the opposite; namely that the automotive industry was slowing down even in BRIC countries. In the United States, vehicle sales peaked in 2000, at 17.8 million unit. TOP 20 MOTOR VEHICLE PRODUCING COUNTRIES:
  • 10. ~By Keyur Modi Page 10 Country Motor vehicle production (units) China 29,015,434 United States 11,189,985 Japan 9,693,746 Germany 5,645,581 India 4,782,896 South Korea 4,114,913 Mexico 4,068,415 Spain 2,848,335 Brazil 2,699,672 France 2,227,000 Canada 2,199,789 Thailand 1,988,823 United Kingdom 1,749,385 Turkey 1,695,731 Russia 1,551,293 Iran 1,515,396 Czech Republic 1,419,993 Indonesia 1,216,615 Italy 1,142,210 Slovakia 1,001,520 1.3 Indian Market
  • 11. ~By Keyur Modi Page 11 The Indian auto industry became the 4th largest in the world with sales increasing 9.5 per cent year-on-year to 4.02 million units (excluding two wheelers) in 2017. It was the 7th largest manufacturer of commercial vehicles in 2017. The Two Wheelers segment dominates the market in terms of volume owing to a growing middle class and a young population. Moreover, the growing interest of the companies in exploring the rural markets further aided the growth of the sector. India is also a prominent auto exporter and has strong export growth expectations for the near future. Overall automobile exports from India grew at 6.86 per cent CAGR between FY13-18. In addition, several initiatives by the Government of India and the major automobile players in the Indian market are expected to make India a leader in the two wheeler and four wheeler market in the world by 2020. Market Size Overall domestic automobiles sales increased at 7.01 per cent CAGR between FY13-18 with 24.97 million vehicles getting sold in FY18. The auto industry is set to witness major changes in the form of electric vehicles (EVs), shared mobility, Bharat Stage-VI emission and safety norms. Electric cars in India are expected to get new green number plates and may also get free parking for three years along with toll waivers@. Sales of electric two-wheelers are estimated to have crossed 55,000 vehicles in 2017-18. Premium motorbike sales in India crossed one million units in FY18. Investments In order to keep up with the growing demand, several auto makers have started investing heavily in various segments of the industry during the last few months. The industry has attracted Foreign Direct Investment (FDI) worth US$ 18.413 billion during the period April 2000 to December 2017, according to data released by Department of Industrial Policy and Promotion (DIPP). Some of the recent/planned investments and developments in the automobile sector in India are as follows:
  • 12. ~By Keyur Modi Page 12  Ashok Leyland has planned a capital expenditure of Rs 1,000 crore (US$ 155.20 million) to launch 20-25 new models across various commercial vehicle categories in 2018-19.  Mahindra & Mahindra (M & M) is planning to make an additional investment of Rs 500 crore (US$ 77.23 million) for expanding the capacity for electric vehicles in its plant in Chakan. Government Initiatives The Government of India encourages foreign investment in the automobile sector and allows 100 per cent FDI under the automatic route. Some of the recent initiatives taken by the Government of India are -  The Government of Karnataka is going to obtain electric vehicles under FAME Scheme and set up charging infrastructure across Bengaluru, according to Mr R V Deshpande, Minister for Large and Medium Industries of Karnataka.  The Ministry of Heavy Industries, Government of India has shortlisted 11 cities in the country for introduction of electric vehicles (EVs) in their public transport systems under the FAME (Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India) scheme. The government will also set up incubation centre for startups working in electric vehicles space.  Energy Efficiency Services Limited (EESL), under Ministry for Power and New and Renewable Energy, Government of India, is planning to procure 10,000 e- vehicles via demand aggregation, and has already awarded contracts to Tata Motors Ltd for 250 e-cars and to Mahindra and Mahindra for 150 e-cars.  The government is planning to set up a committee to develop an institutional framework on large-scale adoption of electric vehicles in India as a viable clean energy mode, especially for shared mass transport, to help bring down pollution level in major cities.
  • 13. ~By Keyur Modi Page 13 Road Ahead The automobile industry is supported by various factors such as availability of skilled labour at low cost, robust R&D centres and low cost steel production. The industry also provides great opportunities for investment and direct and indirect employment to skilled and unskilled labour. Indian automotive industry (including component manufacturing) is expected to reach Rs 16.16-18.18 trillion (US$ 251.4-282.8 billion) by 2026. Two-wheelers are expected to grow 9 per cent in 2018.
  • 14. ~By Keyur Modi Page 14 1.4 Major Companies in Auto mobile industry The major reason or the cause which leads to the rapid growth of the Indian car industry were the lowest rate of interest, more diverse car loans, smooth repayment facilities and the discounts offered by the retailers. Following are the car manufacturers in India  Maruti Suzuki India Ltd  Fiat India Private Ltd  Ford India Ltd  Honda Siel Cars India Ltd  Hyundai Motors India Ltd  Renault  Jeep  Toyota Kirloskar Motor Ltd  Skoda Auto India Private Ltd  AUDI AG  MERCEDES  BMW  FORCE MOTORS  NISSAN MOTOR CO. LTD  TATA MOTORS
  • 15. ~By Keyur Modi Page 15 1.5 About the Company About Maruti Suzuki Pvt Ltd: Maruti Suzuki India ltd. primarily manufactures and has been the most favorite automobile brand among Indian people since its inception. The company had started in 1982; however, it commenced the production of automobile a year later in 1983. The very first model of Maruti, Maruti Suzuki 800, made its way to Indian roads in December 1983. The very first unit was bought by Mr. Harpal Singh of Delhi and he was handed over the keys of the car by the then Prime Minister of India Indira Gandhi. The second in the series was India's first MUV Maruti Suzuki Omni that was launched in November 1984. The other models that came into market in subsequent years were Gypsy in 1985, Maruti 1000 in 1990, Zen in 1993, Esteem in 1994, Wagoner in 1999, Swift in 2005, Grand Vitara in 2007, Maruti Suzuki A-Star in 2008, Ritz in 2009, Eco in 2009, Alto K10 in 2010, Kizashi in 2011, Ertiga in 2012, Alto 800 in 2012, Stingray in 2013, Celerio in 2013 and Ciaz in 2014. Awards and recognition: 2013  Dealership platinum award for overall performance 2012-13  Workshop performance award  Highest growth in wholesale. 2012  All India best new infrastructure award 2012  Dealership platinum award for overall performance 2011-12  Workshop performance award 2011
  • 16. ~By Keyur Modi Page 16  New Initiative -VTS Regional service conference,Bangalore  Lowest pending body repair vehicle,regional service conference,Bangalore 2010  Spare parts Award,Lowest average inventory in stock months (work consumption less than 3 crores). 2009  Highest growth in sales.  Sales Award,highest growth in Alto sales (top 20 cities).  Service award (Innovative service systems implementation).  Award for best new showroom (category A).  Award for most consistent advertising through out the year.  Award for most innovative Ad campaign.  Young entrepreneur Award.  Award for contribution in making Swift achieve the 1,50,000 milestone.  Highest extended warranty Regional Awards,2008-09. 2008  Best initiative for manpower retention category JDP City,Regional service conference  Highest extended warranty Regional Awards,2007-08.  Customer care team,South 2. History Of Maruti Suzuki India Limited:
  • 17. ~By Keyur Modi Page 17 A subsidiary a Suzuki a Japanese automobile and motorbike manufacturer, Maruti Suzuki India limited is an Indian automobile manufacturer. It is the most well known and well- recognized automobile manufacturer in India. This Indian automobile company is popularly known as Maruti, which used to be called Maruti udyog limited at the time of its inception. Maruti udyog limited was founded by the government of India in 1981, only to merge with the Japanese automobile company Suzuki in october1982. The first manufacturing factory of Maruti was established in Gurgaon, Haryana, in the same year. Mr. R.C. bhargava is the chairman of the company and Mr. Kenichi Yukawa is the CEO and managing director. AUTHORIZED MARUTI SUZUKI CAR DEALER IN BARDOLI- OFFERS A WEALTH OF VARIETY TO THE MARUTI AUTOMOTIVE CONSUMERS. We believe that our impressive strides in the marketplace stem in equal parts from our proactive approach and our customers' unstinting support, earned the only way we know: by giving our customers the most appropriate car luxury solutions for each of their needs, and by backing them up with consultancy, finance, after sales services and a responsive after-market network. We are conscious of the fact that vehicles are more than just a means of transporting people and goods; we understand that they have a deep and far-reaching impact on society, the national economy and the environment. As we start our second century of business, we are in a position to appeal to the widest network of showrooms and service stations. Each of our Maruti automotive brands has a unique personality and holds a distinct value in itself. We carefully select those opportunities that enable us to deliver better ideas into the marketplace in new and exciting ways. At Kataria, we create network to better connect with our customers. We strengthen our relationships with our customers through our services like MGP, MOS, MF we collaborate with others to revolutionize our core business processes and to stay ahead of our rapidly changing industry. We choose new view to help system that maximizes efficiency and operational services. Kataria Group has its sights set firmly on the economic & premium sector of the national automobile market. To achieve its aims, the company knows how to deploy its strengths
  • 18. ~By Keyur Modi Page 18 with an efficiency that is unmatched in the automotive industry. From research and development to sales and marketing, Kataria Group is committed to the very highest in quality for all its products and services. The company's phenomenal success is proof of this strategy's correctness. Financial services We see financial services as a key factor for success in today's car world. We have established an extensive product portfolio which supplies expert information and advice for situations and questions relating to the finance sector. We are also proud to honor the hard work of our business and marketing partners. History of Kataria Automobiles Pvt. Ltd. The KATARIA GROUP was founded by Mr. Shobhagmal Kataria in the year 1956 and has grown to become one of the biggest Transport Operators in India, having 60 branches. The Kataria group has since expanded its wings, by way of expansion and diversification in various sectors, the first being in 1984 with dealerships of LML – 2 wheelers. It further expanded its wings to become one of the Most Trusted Brand for Maruti Car Dealership in 1996. Not stopping at its unclenched Automobile Growth, it further acquired the dealership of TVS Two Wheelers in 2003 Today Kataria Automobiles, is one of the "most trusted brands" in the "Automobile Dealership of Maruti Suzuki "with Showrooms in Ahmadabad, Surat, Navsari and Vapi Today the Kataria Group is proud to have a family of 2000 dedicated, satisfied and committed work force. The Group further has a "satisfied" customer base of more than 2, 00,000 happy families. 1.6 ORGANIZATIONAL STRUCTURE
  • 19. ~By Keyur Modi Page 19 1.7 Functional Department Tejas Patel (COO) Nishit Joshi (RSM) Sharmila Rathod (HR) Sachin Naik (SM) Pramod Patil (TL) BrijeshParekh (TL) Ketan Panchal (TL) SonaliMaisurya (CCM) Nilofar Shaikh (CCE) Jagruti Mistry Shailesh Dhimmar (TL) Kriti Patel (IM) Rajendra Sharma (AH)
  • 20. ~By Keyur Modi Page 20 Management of Kataria Automobiles Pvt. Ltd. The Board of Directors and the Management of Kataria Group are committed to the enhancement of its products and services, through sound business decisions, prudent financial management and high standards of ethics throughout the organization, by ensuring transparency and professionalism in all decisions and transactions and achieving excellence in Corporate Governance by conforming to, and exceeding wherever possible, the prevalent mandatory guidelines on Corporate Governance and by regularly reviewing the Board processes and the Management systems for further improvement VISION, MISSION, OBJECTIVE: VISION “The leader in the automobile industry, creating customer shareholder and delight wealth. A PRIDE OF INDIA” core value of MUL  Obsession of customer  Flexible, fast, and first mover  Creativity and innovation  Partnership and networking  Openness and learning OBJECTIVE / MISSION The objectives of Maruti Suzuki limited are as cited below  Modernization of the automobile industry in India  Production of fuel efficient vehicles to conserve scare resources.  Production of biggest number of motor vehicles which was necessary for Economic growth
  • 21. ~By Keyur Modi Page 21 STANDING RULES: • During the working days, the uniform must be clean and ironed with the identity card and with other preferred accessories is compulsory. No relaxation in uniform will be there from Monday to Friday in the week. • If you found chewing tobacco, smoking or any other such activities, wil not be tolerated in the company. If any of the employee is being found using these then the strict decisions will be made accordingly by the concerned person without any further notice. • The detail reporting time will be at sharp 9:45 am. Employee must be regular and be must on the time for the sales department. • Jeans and T-shirt is strictly prohibited till Friday. In Saturday too T-shirt is not allowed. • In any of the various departments the male workers should not embarrasses or harasses the female workers. • Sales executive must have to maintain the sales kits and other material update and handy. • Employee must have to give reporting to the concerned person mentioned in their job descriptions, not directly to the top head or authorized person. • Teamwork is very essential element for the sales department as it is suitable way to grow faster and safer. LEAVE POLICY: • A candidate will provide 2 holidays within a month after completion of probation period of 3 months after DOJ.
  • 22. ~By Keyur Modi Page 22 • If anyone will not take his/her 2 holidays in a month then it will carry forward to next month. Leave period is from April to March. Yearly balanced lean will not carry forward in the next year. Other than emergency case, leave will not be approved more than 6 consecutive days and leave paid in salary as per the leave balance. • If anyone would come on Sunday (full day only) then he will take set off against that Sunday in the same month otherwise it will get lapse & it will be highlighted in the next month. Set off will be valid only if it will be highlighted in the leave application. Verbal set off will be considered as a normal leave. • Holiday will be considered only when intimate before 2 days from taking leave. • If anyone doesn’t inform before taking leave in that case it will considered as a LWP (leave without pay) & salary will be deduct according to leave taken. • The person who is going to take leave he/she has to handover his/her work before going on leave & that person will be responsible for doing that work on that day. • If anybody’s leave extend from 2 leave then salary will be deduct according to leaves taken. • Half day will be considering in 2 days i.e. one will take it before lunch or after lunch. • First half is from 9:40 am to 1:30 pm. • Second half is from 2:00 pm to 6:45 pm. HR POLICIES: • Timings are from 9:40 am to 6:30 pm (only for winter) rest of the month evening timing is 6:45 pm for all the respondent (showroom).
  • 23. ~By Keyur Modi Page 23 • If there is rush on festivals then time will exceed for respondent accordingly. • If anybody comes late by 9:40 am then it will be consider as half day. • Holiday will be considered only when intimate before 2 day from taking leave. • The person who is going to take leave he/she has to handover his/her work before going on leave & that person will be responsible for doing that work on that day. • HR has also maintained IN & out register for respondent to keep record of no of outgoings from office between 9:40 am to 6:45 pm to control over absence in the office timings. • If all executives are busy in taking enquiry then its floor in charge & sales manger duty to take enquiry at that time & no customer will roam around alone in the showroom. • If anybody has any problem with anyone then it will anyone then it will solve in common discussion between HR & with management. • If anybody misbehaves then he/she will be given 2 memo, even that he/she is doing same thing in that case 3rd times he/she will give fine of rs.500/- or as per management decision. • Employee will come in uniform from Monday to Friday & they can come in civil dress on Saturday. T-shirts & jeans are not allowed in any of the day. • Respondent must be in uniform in training/events. • If any person want to leave his/her job then he/she has to give 1 month notice period & complete all his/her pending work & he/she has to appoint one person in place of him/her in this period then only he/she can leave the job. DEPARTMENTAL STUDY PRODUCTION MARUTI SUZUKI
  • 24. ~By Keyur Modi Page 24 Maruti Suzuki India limited has its manufacturing facilities at two locations in India. The Gurgoan facility comprises three plants with the annual capacity of manufacturing about 350000 vehicles however it is enabled to manufacture close to 900000 units annually the credit goes to the productivity advancement. Around 240000 k series engines are also produced at the Gurgaon annually facility. Second in the series was Indian first MUV Maruti Suzuki Omni that is launch in November 1984. The other models that come into market in subsequent years were Gypsy in 1985 Maruti Suzuki India is planning to set up its third manufacturing facility in Ahmadabad Gujarat soon over an area of 600 acres MARUTI SUZUKI DEALERSHIP AND SALES IN INDIA MARUTI SUZUKI India limited has its presence in state & union territories of India. Maruti has its service centres in around 1454 cities and a sales network spread Over 1097 Indian cities. The company has over 12500 employees working tirelessly Day & night. The company is achieving a huge landmark in 2012 when it sold its 10 million units. Maruti procures over 1.5 million cars every year. In 666 town of India, Maruti have a total of 933 dealership outlines until 31 march 2014. SWOT ANALYSIS Strength
  • 25. ~By Keyur Modi Page 25  Maruti Udyog limited (MUL) is in a leadership position in the market with a Market share of 48.74  Major strength of MUL is having largest network of dealers and after sales Service centres in the country.  Maruti Suzuki recorded highest number of domestic sales with 9,66,447 units From 7,65,533 units in the previous fiscal. It recently attained the 10 million Domestic sales mark.  Strong Brand Value and Loyal Customer Base are big strengths for MUL  There are around 15 vehicles in Maruti Product portfolio. Has good product Lines with good fuel efficiency like Maruti Swift, Diesel, Alto etc  Alto still beats the small car segment with highest number of sales  MUL has good market share and hence it’s after sales service is a major Revenue contributor. Weaknesses  Low interior quality inside the cars when compared to quality players like Hyundai and other new foreign players like Volkswagen, Nissan etc.  Government intervention due to having share in MUL.  Younger generations started getting a great affinity towards new foreign brands  The management and the company’s labor unions are not in good terms. The recent strikes of the employees have slowed down production and in turn affecting sales.  Maruti hasn’t proved itself in SUV segment like other players. Opportunities  MUL has launched its LPG version of Wagone r and it was a good move simultaneously  MUL can start R&D on electric cars for a much better substitute of the fuel.
  • 26. ~By Keyur Modi Page 26  New DZire from Maruti will capture the market share and expected to create the same magic as Maruti Esteem(currently not available)  Export capacity of the company is giving new hopes in American and UK markets  Economic growth of the country is constantly increasing and the government is working hard to increase the GDP to double digit. Threats  MUL recently faced a decline in market share from its 50.09% to 48.09 % in the previous year(2011)  Major players like Maruti Suzuki, Hyundai, Tata has lost its market share due to many small players like Volkswagen- polo. Ford has shown a considerable Increase in market share due to its Figo.  Tata Motors recent launches like Nano 2012, Indigo e-cs are imposing major Threats to its respective competitor’s segment  China may give a good competition as they are also planning to enter into Indian car segment. 1.8 Product Profile Model Category Image
  • 27. ~By Keyur Modi Page 27 WagonR Hatchback Swift Hatchback Dzire Sedan Eeco Minivan Ertiga Mini MPV Alto 800 Hatchback
  • 28. ~By Keyur Modi Page 28 Celerio Hatchback Ciaz Sedan Baleno Hatchback S-Cross Mini SUV Vitara Brezza Mini SUV Ignis Hatchback CHAPTER: 2 LITERATURE REVIEW 2.1 Literature Review
  • 29. ~By Keyur Modi Page 29 Once a topic has been decided, it is essential to review all relevant materials which have a bearing on the topic. In fact, review of literature begins with a search for suitable topic and continues throughout the duration of the research work. Since a research report, either a dissertation or a thesis, is supposed to be an in-depth study of and contribution to existing knowledge, a careful check should be made that the proposed study has not previously been carried out Kuvaas (2006) in his article titled “Performance appraisal satisfaction and employee outcomes: mediating and moderating roles of work motivation” explored alternative relationships between performance appraisal satisfaction and employee outcomes in the form of self-reported work performance, affective organizational commitment and turnover intention. A cross-sectional survey of 593 employees from 64 Norwegian savings banks showed that performance appraisal satisfaction was directly related to affective commitment and turnover intention. The relationship between performance appraisal satisfaction and work performance, however, was both mediated and moderated by employees’ intrinsic work motivation. The form of the moderation revealed a negative relationship for employees with low intrinsic motivation and a positive relationship for those with high intrinsic motivation. Implications for practice and directions for future research are discussed. Miller and Thornton (2006) in their article titled “How Accurate Are Your Performance Appraisals?” state that accuracy of performance appraisals is very important in public personnel management. They provide "benchmark" data from the research literature. They also provide a method for correcting error in the data so that practitioners' data may be more accurately evaluated. They also demonstrate the degree to which multiple raters will improve the accuracy of appraisals. Finally, They make suggestions as to how the PPM professional may improve the accuracy of performance ratings based on the research concerning rating versus ranking performance, the supervisors' knowledge of the employee and the number of sdimensions being appraised.
  • 30. ~By Keyur Modi Page 30 Catano, Darr and Campbell (2007)in their article titled, “Performance appraisal of behaviour-based competencies: A reliable and valid procedure” cited that a new performance appraisal system, developed for promotions in the Royal Canadian Mounted Police non-commissioned officer ranks, fairly differentiated among candidates. Members (N = 6,571) illustrated their performance on core competencies with behavioral examples. Supervisors and then review boards used a BARS procedure to reliably rate performance. Both candidates and supervisors supported the system. The performance appraisal scores predicted career advancement in the organization. Johnson and Shields (2007) in their article titled, “Lessons from management–union partnership in teacher performance appraisal in the New South Wales public education system” state that performance appraisal is frequently seen as one of the hallmarks of the ‘new managerialism’ in public sector human resource management. It is also commonly represented as a device for individualizing the employment relationship. Yet even appraisal offers scope for employee voice/participation, both individually and collectively, and for varying degrees of management–union cooperation. This study examines an unlikely case of management–union partnership in performance appraisal – that applied since 2000 to teachers in Australia’s largest public schooling bureaucracy,the NSW Department of Education and Training, whose teachers have a long history of union solidarity and industrial militancy. The experiment can be seen as a union retreat from confrontationism, a concession to managerialism, and a resignation to the dominance of individualism over collectivism. However, it has also widened the scope for both union and employee voice at the workplace level. Sanwong (2008) in his article entitled, “The Development of a 360-Degree Performance Appraisal System: A University Case Study”, examined the functioning of an innovative 360-degree performance appraisal system among a sample of 75 employees at a Thai university. The data for the system came from supervisors, colleagues, clients and junior staff as well as from the employees themselves. The validity of the system was examined on two occasions. While all employees were satisfied with the system, support and clerical staff in the university were more satisfied than academic staff. A number of suggestions were made for improving the 'working' of such a system in a university
  • 31. ~By Keyur Modi Page 31 environment Addison and Belfield (2008) offered a replication for Britain of Brown and Heywood’s analysis of the determinants of performance appraisal in Australia. Although there are some important limiting differences between the two data sets — the Australia Workplace Industrial Relations Survey (AWIRS) and the Workplace Employment Relations Survey (WERS) — they reached one central point of agreement and one intriguing shared insight. First, performance appraisal is negatively associated with tenure: where employers cannot rely on the carrot of deferred pay or the stick of dismissal to motivate workers, they will tend to rely more on monitoring, ceteris paribus. Second, employer monitoring and performance pay may be complementary. However, consonant with the disparate results from the wider literature, there is more modest agreement on the contribution of specific human resource management practises, and still less on the role of job control. Herdlein, Kukemelkb and Turk (2008)in their article titled “A survey of academic officers regarding performance appraisal in Estonian and American universities” state that higher education in the Baltic Republic of Estonia is experiencing rapid change as the country adjusts to a market economy in the post-Soviet era and adheres to principles established through the Bologna Process. Research in the area of performance appraisal, and the most effective approaches to motivate academic staff, is a key factor influencing change in a rapidly developing society. Using qualitative research, a survey was submitted to academic officers in 11 Estonian and four western New York (USA) colleges and universities. A total of 29 individuals completed surveys in Estonia (a response rate of 69 per cent). A convenience sample of eight academic administrators returned instruments in western New York, giving a response rate of 100 per cent. The results of the survey indicated that appraisal systems within American higher education are similar and based on a long tradition of connecting appraisal to the guidelines governing permanent appointment (tenure). Appraisal within Estonian universities is still rather basic and unified systems do not yet exist, as individual institutions employ a variety of procedures. The study was intended to accelerate the process of performance appraisal in Estonia and Eastern Europe.
  • 32. ~By Keyur Modi Page 32 Narcisse and Harcourt (2008) in their article titled, “Employee fairness perceptions of performance appraisal: a Saint Lucian case study” identified the essential factors which influence employees’ fairness perceptions of their performance appraisals, and determine the applicability of these factors to the experiences of employees in a Saint Lucian public service organization. Fairness perceptions are of three main types. First, distributive justice refers to the perceived fairness of an actual appraisal rating. Second, procedural justice refers to the perceived fairness of procedures used to determine the appraisal rating. Third, interactional justice refers to the perceived fairness of the rater’s interpersonal treatment of the ratee during the appraisal process. A qualitative case study method was used to gain a rich understanding of employee perceptions of the fairness of their performance appraisals. Data were obtained from both completed appraisal forms and interviews with 20 knowledgeable employees. All interviews were transcribed and assessed using a thematic analysis. Overall, results show that distributive, procedural, and interactional justice factors identified in the existing literature influence employee perceptions of fairness in their appraisals. Results suggest that employees also consider four additional justice factors, as yet not formally recognized in the justice literature, one distributive – the consistency in reward distribution – and three procedural – appraisal frequency, job relevant criteria, and rater and ratee training. Vasset (2010) in his article titled “Employees' perceptions of justice in performance appraisals” states that of all the tasks undertaken by human resource managers, performance appraisals (PAs) are one of the most unpopular among employees (Meyer 1991, Murphy and Cleveland 1995, Holbrook 2002, Jackman and Strober 2003). As PA guides and plans show (Fletcher 2004, Catalyst One 2010), PAs can be implemented in similar ways in organisations throughout Europe and developed countries elsewhere. But, if employees perceive PA processes as unfair, they may reject the usefulness and validity of the information they receive and so may not be motivated to change behaviour. This article concerns perceptions of organizational justice and explains the results of a study of perceived fairness in PAs among nurses and auxiliary nurses in Norway's municipal health service.
  • 33. ~By Keyur Modi Page 33 Ravichandran, Venkataraman and Banumathy (2011) state thate the state of Tamil Nadu with 37 operational sugar mills is a significant sugar producing state the country, contributing roughly 9-10 per cent to be national sugar production. The sugar industry has absorbed about 5 lakh rural people in the state. This paper studied that performance appraisal system followed in cooperative sugar mill with a sample size of 75 labourers. The study has found that the sugar mill had adopted a good appraisal system and takes the appraisal at the time of probation period and further during the career promotion. The study has also found that there is a gap between the actual and desired performance. Hence, it was suggested to conduct annual performance appraisal to improve the efficiency of the employee and provide training on dependability, communication slill and skill development to improve the employee’s management quality. 2.2 INTRODUCTION TO PERFORMANCE APPRAISAL Performance appraisal is an important device for respondent 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” “Performance Appraisal is a systematic way to evaluate the skills, abilities, knowledge, productivity, human relation etc in employee to perform his current job well”. “Performance Appraisal is the technique of fair rating of the respondent to evaluate performance and potential for development of a group member and the organization”.
  • 34. ~By Keyur Modi Page 34 “Performance Appraisal is concerned with determining the differences of performance among the respondent working in the organization”. “Performance Appraisal determines who shall receive merit increases, council respondent on their improvement, determines training needs, determines promo ability identifies those who should be transferred”. 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 behaviour. 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, dependability, co-operation, judgment, versatility, health and the likes. This is concerned with determining the performance among the respondent 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 respondent on a given job and his / their potential for future development”. It consists of all formal procedures used in working organizations and potential of respondent 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 respondent. MEANING OF PERFORMANCE APPRAISAL It is concern with determining the performances among the respondent working in the organisation. The appraisal is done by individual immediate superior. “Performance Appraisal is a technique to improve the efficiency of an organization by attempting the maximum efforts from individuals employed on it”.
  • 35. ~By Keyur Modi Page 35 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. 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:- Evans (1986) asserts that many respondent believe that their promotion or salary increments depend mostly on their performance. Respondent therefore are in a dilemma and consider this situation as ‘survival of the fittest’. They know for a fact that, their performance will only be taken into consideration at the end of the day. So, in order to grow in the company they need to be proactive towards their work. The feedback the employee receives from his superior, may simply describe the level of performance achieved. 2.3 THEORETICAL BACKGROUND OF STUDY OVERVIEW OF THE PERFORMANCE APPRAISAL SYSTEM: Performance appraisal is the process of making an assessment of the performance and progress of the respondent of an organization. Once an employee has been inducted into the organization and given the necessary training, the next step is to assess his performance periodically. Such assessment would indicate whether he is efficient or not. Performance appraisal is also known as “merit rating” or “efficiency rating”. The following factors are given weight age in evaluating the performance and progress of an employee:
  • 36. ~By Keyur Modi Page 36 - Knowledge of work - Extent of co-operation with colleagues and superiors. - Initiative - Quality of work. - Target attainment. - Aptitude. - Degree of skill. - Discipline - Punctuality - Honest - Ambition - Crisis management, etc. Performance appraisal to performance development : In fact, performance appraisal, in recent times, emerged as performance analysis and development. Performance analysis and development is a departure from the traditional and controlling approach. It view from the development aspect of the employee. Therefore, the main purpose of performance analysis and development is to analyze the present performance of the employee from multiple viewpoints, observe the gap/developmental needs and develop the employee. 2.4 STATEMENT OF THE PROBLEM Much of literature dealing with Human Resource Management and its issues recognize the importance of performance appraisal system which occurs in the organization. All organization faces the problem of directing the energies of their staff to the task of achieving business goals and objectives. In doing so,organization need to devise means to influence and channel the behaviours‟ of their respondent so as to optimize their contributions. Performance appraisals constitute one of the major management tools employed in this process. 2.5 NEED OF THE STUDY:
  • 37. ~By Keyur Modi Page 37  This study helps building progress towards organizational goals.  To help the superior to have a proper understanding about their subordinates.  To ensure organizational effectiveness through correcting the employee for standard and improved performance and suggesting the changes in employee behaviour.  It provides information about the performance ranks.  To provide information this helps to counsel the subordinates.  To facilitate fair and equitable compensation based on performance. 2.6 OBJECTIVE OF THE STUDY PRIMARY OBJECTIVE:  To identify the actual performance appraisal of the respondent. SECONDARY OBJECTIVES:  To create and maintain a satisfactory level of performance.  To maintain records in order to determine compensation packages wage structure, salaries raises etc.  To provide feedback to respondent regarding their performance and related status.  To review and retain the promotional and other training programmers. 2.7 Limitation Of The Study  This study is only limited to copper co-operative ltd sugar dadariya  Some of the respondents were afraid to give true information in some cases.  There may be bias on the part of respondent while answering to the questions CHAPTER:3 RESEARCH METHODOLOGY 3.1 RESEARCH DESIGN:
  • 38. ~By Keyur Modi Page 38 Descriptive Research A researcher should think about the way in which he should proceed in attaining his objective in his research work. He has to make a plan of action before starting the research. This plan of study of a researcher is called the research design. Descriptive research design is used for this study. Descriptive research design is used to those studies which are concerned with characteristics of a particular individual or a group. 3.2 SOURCES OF DATA: Primary data Primary data are those which are collected for the first time which is original in character. They are collected directly and are reliable. The primary data was collected through a well structured questionnaire with the help of telephonic interview. Secondary data Secondary data is those which have already been collected by someone else. Secondary data has been collected from company records, text books, websites etc. 3.3 DATA COLLECTION METHOD:- There are various data collection method to collect the data from the respondents like observation, surveys, experiments. In this study the survey (Questionnaire) is conducted to collect the data from the respondent. 3.4 POPULATION:
  • 39. ~By Keyur Modi Page 39 A total of 95 employee who work the Kataria Automobiles Bardoli from the year 2019-20 are taken as population. So the 95 is the total population for the study among them all 95 respondents responses to our study. 3.5 SAMPLING TECHNIQUE: 1. Probability sampling method: 2. Non-probability sampling method: Convenient sampling: Convenience sampling, as the name implies is a specific type of non-probability sampling method that relies on data collection from population member who are conveniently available to participate in study. Convenience sampling is a type of sampling where the first available primary data will be use for the research without additional requirement. In it, no inclusion criteria identified prior to selection of subjects. All subjects are invited to participate. 3.6 SAMPLING FRAME:- Maruti Suzuki Kataria(BARDOLI) CHAPTER: 4 Data analysis & Interpretation
  • 40. ~By Keyur Modi Page 40 Q.1 In your opinion performance appraisal is? INTERPRETATION:- From the above graph it can be said that out of 100% respondents, 66% respondent’s opinion performance appraisal is nothing but evaluation of employee other 28% respondent’s opinion is performance appraisal is promotion of employee and raise 6% respondent’s opinion is performance appraisal is job satisfaction of employee and motivation of employee. So we can interpret that majority of respondent’s opinion, performance appraisal is nothing but evaluation of employee. 66% 28% 1% 5% Performance Appraisal Evaluation of Employees Promotion of Employees Job Satisfaction of Employees Motivation
  • 41. ~By Keyur Modi Page 41 Q.2 Which performance appraisal method used in your organization? Interpretation:- From the above chart it can be said that out of 100% respondents, 53% respondent says that Rating method is used in their organization, 27% respondents says that any other method use for performance appraisal in their organization, 18% respondents says that ranking method uses in their organization, 1% respondent says that management by objective method uses in their organization and raise 1% respondent says that 360 appraisal system use for performance appraisal in their organization. So, we can interpret that most of the respondent says that rating system is use in their organization. 1% 1% 18% 27% 53% PerformanceAppraisal Method Management by objective 360 appraisal system Ranking Any other Rating
  • 42. ~By Keyur Modi Page 42 Q.3 How many times performance appraisal is conducted in your organization? INTERPRETATION:- From the above chart it can be said that out of 100%respondents, 4% respondents says that performance appraisal conducted once in a year in their organization,92% respondents says that performance appraisal conducted twice in a year,4% respondent says that performance appraisal conducted monthly and, no one respondent agree that some specific time for conducting performance appraisal in their organization. So, we can interpret that most of the respondent says that performance appraisal conducted twice in a year in their organization. 4% 92% 4% 0% PerformanceAppraisal conducted Once a year Twice a year Monthly No specific time
  • 43. ~By Keyur Modi Page 43 Q.4 Who is responsible for conducting performance appraisal program? INTERPRETATION:- From the above chart it can be said that out of 100% respondent, 94% respondent says that superior are responsible for conducting performance appraisal program , 4% respondent says that peers are responsible for conducting performance appraisal program , 2% respondent says that costumer are responsible for conducting performance appraisal program and no one respondent says that all are responsible for conducting performance appraisal program. So here, we can interpret that majority of respondent says that superior are responsible for conducting performance appraisal program. 94% 4% 2%0% Responsibilityfor conductin Performanceappraisal Superior Peers Customer All
  • 44. ~By Keyur Modi Page 44 Q.5 Do you get inform about performance appraisal program? INTERPRETATION:- From above chart it can be said that, no respondent are always inform for performance appraisal program, 26 respondent are sometime informed about performance appraisal program ,no one employee is inform about performance appraisal program, 66 respondent are oftenly informed about performance appraisal program and, 3 respondent are rarely informed about performance appraisal program. . So here, we can interpret that major respondent are oftenly informed about performance appraisal program. 0 10 20 30 40 50 60 70 Always Often Sometime Rarely Never 0 66 26 3 0 Series1
  • 45. ~By Keyur Modi Page 45 Q.6. Do you think incentive are given strictly on the basis of performance appraisal? INTERPRETATION:- From above chart it can be said that, 1 respondent thinks that always Incentives are given strictly on the basis of performance appraisal, 24 respondents thinks that oftenly Incentives are given strictly on the basis of performance appraisal, 66 respondents thinks that sometime Incentives are given strictly on the basis of performance appraisal, 4 respondent thinks that rarely Incentives are given strictly on the basis of performance appraisal and, no one thinks that incentive are given strictly on the basis of performance appraisal. So here, we can interpret that major respondents are thinks that sometime Incentives are given strictly on the basis of performance appraisal. 0 10 20 30 40 50 60 70 Always Often Sometime Rarely Never 1 24 66 4 0 Series1
  • 46. ~By Keyur Modi Page 46 Q.7 Do you think performance appraisal help in improving job performance? INTERPRETATION:- From above chart it can be said that, 98% respondent are give positive response they thinks that Performance Appraisal help in improving respondent job performance and 2%respondent are give negative response they thinks that Performance Appraisal does not help in improving respondent job performance. So here, we can interpret that majority respondent are thinks that Performance Appraisal helps in improving respondent job performance. 98% 2% Job performance improvement Yes No
  • 47. ~By Keyur Modi Page 47 Q.8 As per your opinion, performance appraisal system reviewed and update now and then? INTERPRETATION:- From the above chart, 9 respondent are thinks that performance appraisal system reviewed and update very frequently, 82 respondent are thinks that performance appraisal system reviewed and update frequently, 4 respondent are thinks that performance appraisal system reviewed and update Occasionally and no one employee are thinks that performance appraisal system reviewed and update rarely and never. So here, we can interpret that majority of respondent are thinks that performance appraisal system reviewed and update frequently. 0 10 20 30 40 50 60 70 80 90 Very Frequently Frequently Occasionlly Rarely Never 9 82 4 0 0 Series1
  • 48. ~By Keyur Modi Page 48 Q.9 Are you getting formal feedback after performance appraisal for performance improvement? INTERPRETATION:- From above chart it can be said that, no one respondent are thinks that performance appraisal provides formal feedback to respondent for performance improvement very frequently, 19 respondent are thinks that performance appraisal provides formal feedback to respondent for performance improvement frequently, 71 respondent are thinks that performance appraisal provides formal feedback to respondent for performance improvement occasionally, 5 respondent are thinks that performance appraisal provides formal feedback to respondent for performance improvement, rarely and no one respondent thinks that performance appraisal provides formal feedback to respondent for performance improvement never. So here, we can interpret that majority of respondent are thinks that performance appraisal provides formal feedback to respondent for performance improvement frequently. 0 10 20 30 40 50 60 70 80 0 19 71 5 0 Series1
  • 49. ~By Keyur Modi Page 49 Q.10 What is the reason for conducting performance appraisal in your organization? INTERPRETATION:- From above chart it can be said that, 10% respondent thinks that for performance improvement performance appraisal is conducting, 21% respondent says that for compensation adjustment, 2% respondent are says that for placement decision and 67% respondent says that for training and development performance appraisal is conducting. So here, we can interpret that majority of respondent says that for training and development needs performance appraisal are done in organization. 10% 21% 2% 67% Reason for conducting performanceappraisal Perfrormance improvement Compensation adjustment Placement decision Training and Development needs
  • 50. ~By Keyur Modi Page 50 Q.11 Is the top level management partial in performance appraisal? INTERPRETATION:- From the above chart we can says that 60% chances for involving top management in performance appraisal and 40% chances for not involving top management in performance appraisal. So we can interpret that 60% respondent says that the top management involve in performance appraisal program. 40% 60% Involvement of top management Yes No
  • 51. ~By Keyur Modi Page 51 Q.12 Do you agree performance appraisal helps you to set and achieve meaningful Goals? INTERPRETATION:- From above chart it can be said that 13 respondent are strongly agree that performance appraisal helps people to set and achieve meaningful goal, 82 respondent are agree that performance appraisal help people to set and achieve meaningful goal, no one respondent are neutral, disagree and strongly disagree that performance appraisal helps people to set and achieve meaningful goal. So here, we can interpret that majority of respondent are agree that performance appraisal helps people to set and achieve meaningful goal.s 0 10 20 30 40 50 60 70 80 90 Strongly agree Agree Neutral Disagree Strongly Disagree 13 82 0 0 0 Series1
  • 52. ~By Keyur Modi Page 52 Q.13 After performance appraisal improvement in your performance. INTERPRETATION:- From the above graph it can be said that 16 employee’s performance improve in to10-20, 71 employee’s performance improve in to 20-30 and 8 employee’s performance improve in 30 to above criteria. So we can interpret that 71 employee’s performance improve in to 20-30 criteria. 0 10 20 30 40 50 60 70 80 10 to020 20 to 30 30 to above 16 71 8 Series1
  • 53. ~By Keyur Modi Page 53 PERSONAL DEATILES:-  Gender  Annual income 75% 25% Male Female 0% 68% 32% 0% Less than 100000 100000-200000 200000-500000 More than 500000
  • 54. ~By Keyur Modi Page 54  Education qualifications 0% 26% 74% Diploma or below Post graduate or below Graduate or below
  • 55. ~By Keyur Modi Page 55 CHAPTER: 5 FINDINGS From the above data and interpretations and from the various pie charts and the bar graphs, the following findings has been found.  In this study employee of kataria automobile were taken into the study among them 71 employyes were male while the remaining 24 employees were females.  Among 95 respondents, 63 respondent says that performance appraisal is nothing but evaluation of employee while remain respondent says that performance appraisal is promotion of employee and job satisfaction of employee.  Among 95respondent, majority of respondent says that Rating method of performance appraisal are used in their organization.  From all the respondents, highest respondent give response that performance appraisal are conduct twice in a year in their organization.  Among 95 respondents, 89 respondent says that superior are responsible for conducting performance appraisal program while other 6 respondent says that customers and peers are responsible for conducting performance appraisal program.  Among all the respondent, majority respondent says that oftenly they are informed about conducting performance appraisal program in their organization.  Among all 95 respondents, 66 respondent are some time agree on incentives are gives on the bases of performance appraisal which is said by highest respondent.  Among all 95 respondents, 93 respondents are agree that performance appraisal is help in improving job performance.  From all the respondent, majority respondent agree that performance appraisal system is frequently reviewed and update.  Among 95 respondents, majority of respondent are thinks that performance appraisal provides formal feedback to respondent for performance improvement frequently.
  • 56. ~By Keyur Modi Page 56  Among all the respondents, majority of respondent give response that training and development needs is the reason for conducting performance appraisal program.  Among 95 respondents, 57 respondent are agree that top management is participate in performance appraisal and other 38 respondent does not agree with involvement of top management in performance appraisal program.  From all the respondents, majority respondent are agree that performance appraisal helps them to set and achieve meaningful goal.  From all the respondents, majority respondent says that after performance appraisal their performance is increase in 20-30 criteria.
  • 57. ~By Keyur Modi Page 57 CHPATER: 6 CONCLUSION  With the help of the data analysis and the findings we can conclude that performance appraisal is nothing but evaluation of the employee according to employees of the kataria maruti Suzuki automobile.  We can conclude that in kataria maruti Suzuki automobile rating method is use for performance appraisal.  We can conclude that performance appraisal program can be done twice in year in kataria automobile, superior are responsible for conducting performance appraisal program, in this top management also involve. We also conclude that performance appraisal program helps into improving employee’s performance, with the help of performance appraisal employee’s can set and achieve meaningful goals and they are satisfied with their job as well as the company.
  • 58. ~By Keyur Modi Page 58 BIBILIOGRAPHY  https://www.kataria.com.in  https://www.zigwheels.com/newcars/Maruti-Suzuki/ /specifications#leadform  http://shodhganga.inflibnet.ac.in/
  • 59. ~By Keyur Modi Page 59 ANNEXURE QUESTIONNAIRE:- QUESTIONNAIRE FOR THE PERFORMANCE APPRAISAL I am Hetvi Shah, a management student of “TMES Institute of Management,” conduct a study on“Performance Appraisal at Maruti Suzuki Kataria” This exercise is a part of research work towards fulfilling the requirement of the management course. It would be glad if you could spare your valuable time to answer few questions. I assure you that the views conveyed by you will be used for academic purpose only and secrecy would be maintained. Instruction: 1. Please tick mark () in as when asked to do. 2. Provide the information in detail whenever it is asked to you. 3. Please give the true feedback. Q.1 In your Opinion performance Appraisal is ? A) Evaluation of Employees B) Promotion of Employees C) Job Satisfaction of Employees D) Motivation Q.2 which performance appraisal method used in your organization? (a) Management by objective (b) 360 appraisal system (c) Ranking (d) Any other (e) Rating
  • 60. ~By Keyur Modi Page 60 Q.3 How many times performance appraisal is conducted in your organization? (a) Once a year (b) Twice a year (c) Monthly (d) No specific time Q.4 who is responsible for conducting performance appraisal program? (a) Superior (b) Peers (c) Customer (d) All Statement Always Often Sometime Rarely Never Q.5 Do you inform your employees about performance appraisal programme? Q.6 Do you think incentives are given strictly on the basis of performance appraisal?
  • 61. ~By Keyur Modi Page 61 Q.7 Do you think Performance Appraisal help in improving your job performance? (a) Yes (b) No Statement Very Frequently Frequently Occasionall y Rarely Never Q.8 As per your opinion, performance appraisal system reviewed and update now and then? Q.9 Are you getting formal feedback after performance appraisal for performance improvement? Q.10 What is the reason for conducting performance appraisal in your organization? (a) Performance improvement (b) Compensation adjustment (c) Placement decision (d) Training and Development needs Q.11 Is the top level management partial in performance Appraisal ? A) Yes B) No
  • 62. ~By Keyur Modi Page 62 Q.12 Do you agree performance appraisal helps you to set and achieve meaningful goals? (a) Strongly agree (b) Agree (c) Neutral (d) Disagree (e) Strongly Disagree Q.13 After performance appraisal improvementinyour performance. A) 10 – 20 B) 20 – 30 C) 30 – above Personal detail 1. Name: ___________________________ 2. Age: _______ 3. Gender: a. Male b. Female 4. Annual Income: a. less than 100000 b. 100000 – 200000 c. 200000 – 500000 d. More than 500000 5 . Contact no:-
  • 63. ~By Keyur Modi Page 63 THANK YOU