Final Project 1

Airtech Private Limited

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Executive Summary
Title: “Study of Performance Appraisal System at Airtech Pvt Ltd, Dharwad”
Performance appraisal-employee appraisal- performance review or (career) development
discussion:
It is a method by which the job performance of an employee is evaluated (generally in terms of
quality, quantity, cost, and time) typically by the corresponding manager or supervisor.
A performance appraisal is a part of guiding and managing career development.
The project was conducted on “Study of Performance Appraisal System at Airtech Pvt Ltd,
Dharwad”
Scope of the study
To review the performance of team leaders over a given period of time, to judge the gap between
the actual and desired performance. And also diagnose the training and development needs of
future. Also to assist in the human resource decisions like recruitment and selection, promotions,
transfers, terminations and career planning etc.
This study also aims at developing a communication system to deliver job expectations and
specific goals and also a performance appraisal system to measure and improve the performance
of team leaders at Airtech Private Ltd.
Objectives
 To study and understand the present system of measuring performance.
 To study the existing communication system of job expectations and specific goals.
 To understand the existing system of training and development needs.
 To develop a performance appraisal system to measure, evaluate, improve and monitor
the performance of team leaders at Airtech Private Ltd.
Research Methodology
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Data collection method:
1) Primary Data:
It is been collected from HR managers, line managers, workers and other stakeholders by
adopting Interview method, observation and through Questionnaire.
2) Secondary Data:
It is been collected with the study of HR text books, company website, company records and also
the internet.
Sampling Method
Here convenience sampling method will be adopted by considering random sample unit.
Tools and Techniques of data Collection
The tools and techniques used will be Questionnaire method for a larger and similar kind of
sample and personal interview method where ever necessary.
Findings
Following are the findings ascertained from the interpretation of the study of Performance
Appraisal System:
 Performance Appraisal System at Airtech is conducted once in a year.
 As per the interpretation, self appraisal is carried along with 90
0
and 180
0
Appraisal
system. Majority of the people are not clear about which system is followed to appraise
them.
 Out of 11, 10 are positive towards the system and are satisfied with the appraisal system
carried out in the organization.

Some Recommendations
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 The employees at Airtech are not aware of the existing Performance Appraisal System. It
creates an ambiguity in employees about the basis on which they are judged. Knowing
the Appraisal system would help them know about the right criteria of appraisal, makes
their work more focused and helps them to connect their individual goals to the
organization goals.
 Though self appraisal is conducted, the self appraisal form has to be designed more
specific and in more detail so that it takes out the maximum info from the appraisee and it
results in clear recognition of needs, provides details about their achievements and their
requirements.
 360
0
appraisal also helps to evaluate subjective areas like Team work, Leadership etc.



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Industry Profile
History
The first practical automobile with a petrol engine was built by Karl Benz in 1885 in Mannheim,
Germany. Benz was granted a patent for his automobile on 29 January 1886, and began the first
production of automobiles in 1888, after Bertha Benz, his wife, had proved with the first long-
distance trip in August 1888 (from Mannheim to Pforzheim and back) that the horseless coach
was absolutely suitable for daily use. Since 2008 a Bertha Benz Memorial Route commemorates
this event.
Soon after, Gottlieb Daimler and Wilhelm Maybach in Stuttgart in 1889 designed a vehicle from
scratch to be an automobile, rather than a horse-drawn carriage fitted with an engine. They also
are usually credited as inventors of the first motorcycle, the Daimler Reitwagen, in 1885, but
Italy's Enrico Bernardi, of the University of Padua, in 1882, patented a 0.024 horsepower
(17.9 W) 122 cc (7.4 cu in) one-cylinder petrol motor, fitting it into his son's tricycle, making it
at least a candidate for the first automobile, and first motorcycle; Bernardi enlarged the tricycle
in 1892 to carry two adults.
Consumption Trends
About 250 million vehicles are in use in the United States. Around the world, there were about
806 million cars and light trucks on the road in 2007, consuming over 260 billion gallons of
gasoline and diesel fuel yearly. In the opinion of some, urban transport systems based around the
car have proved unsustainable, consuming excessive energy, affecting the health of populations,
and delivering a declining level of service despite increasing investments. Many of these
negative impacts fall disproportionately on those social groups who are also least likely to own
and drive cars.The sustainable transport movement focuses on solutions to these problems.
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). Other potentially
powerful automotive markets are Iran and Indonesia.
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The Automotive Industry in India is one of the largest industries and a key sector of the
economy.

The Indian automotive industry started from 1991with the government’s de-licensing of the
sector and subsequent opening up for 100 per cent FDI through automatic route. Since then many
large global companies have set up their facilities in India taking the production of vehicle from
2 million in 1991 to 9.7 million in 2006.

At present, India is the world's
 Largest tractor and three-wheel vehicle producer.
 Second largest two-wheel vehicle producer.
 Fourth largest commercial vehicle producer.
 Eleventh largest passenger car producer.

Production: According to the Society of Indian Automobile Manufacturers, the Indian
automobile industry has reached double-digit growth for the past three years in a row. In 2006,
the industry produced 10.9 million vehicles, an increase of 16.22% over 2005. In 2005,
production grew 14.5% over the previous year. The production of the automotive industry is
expected to achieve a growth rate of over 20 per cent in 2006-07 and about 15 per cent in 2007-
08.

Exports: The cumulative annual growth rate of automotive exports during the period 2000-01 to
2005-06 was 32.92 per cent. Exports during 2006-2006 and 2007-2008 are expected to grow
over 20 per cent.

Imports: Europe is the biggest importer of cars from India, while African nations largely
account for the import of buses and trucks. China is most recently making inroads into this
market. The South-East Asian region is the prime destination for Indian two wheelers.


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Sales:
 Passenger Vehicles: Growth in sales of passenger vehicles was 18.45% in 2006. This
was almost three times the growth witnessed in 2005. Sale of passenger cars expanded by
20.0%. Export of passenger vehicles increased by 12.9%
 Utility Vehicles: 12.4%
 Two-wheelers, commercial vehicles and three-wheelers: Export growth at a rate of 24%,
26% and 72% respectively.
Investment:
Among the car companies that are investing in India are US automakers General Motors and
Ford, Germany's BMW and DaimlerChrysler AG, France's Renault, Japan's Suzuki, Toyota and
Honda, and South Korea's Hyundai.

There is also a boom in auto ancillary companies. India is an attractive outsourcing destination
for global auto companies because of its strong engineering skills and low costs. Sourcing parts
from India is 10-20% cheaper for US auto makers and about 50% cheaper for their European
counterparts.

Auto Components:

This industry grew by over 28 percent between 1995 and 1998, and has been sustaining double
digit growth, clocking 16 percent in 2004-05, and 15 percent in 2005-06. The Indian auto
component industry is quite comprehensive with around 500 firms in the organized sector
producing practically all automotive components; there are more than 10,000 firms total. India’s
component industry now has the capability to manufacture the entire range of auto-components,
for example, engine parts, drive, transmission parts, suspension and braking parts, electricals,
body and chassis parts, equipment, etc



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The Industry's Challenge:

Even though the automotive industry is robust, car manufacturers are complaining that the
government's frequent change in policies is not encouraging the industry. Changing the policies
and guidelines frequently severely hurts the companies’ plans. It also affects investment
decisions in the country

Future Plans:

The Government has prepared a ten-year Automotive Mission Plan (AMP) to draw a future plan
of action and remove obstacles in the way of competition, such as that required infrastructure be
put in place well in time to alleviate its constraining impact on the growth.

The plan envisages a tax holiday for the industry on investments exceeding $225,000, 100% tax
deductions of export profits, and deductions of 50% on foreign-exchange earnings. It also calls
for a one-stop clearance for foreign-direct-investment proposals in the sector and deductions of
30% of net income for 10 years for new industrial undertakings.

To bring down the cost of power and fuel, which accounts for 6% of the manufacturing costs in
the auto sector, captive power generation would be encouraged to enable industries to access
reliable, quality and cost-effective power.
Automobile Industry in India
Every other day, we have been hearing about some new launches, some low cost cars - all
customized in a manner such that the common man is not left behind. In 2009, the automobile
industry is expected to see a growth rate of around 9%, with the disclaimer that the auto industry
in India has been hit badly by the ongoing global financial crisis.

The automobile industry in India happens to be the ninth largest in the world. Following Japan,
South Korea and Thailand, in 2009, India emerged as the fourth largest exporter of automobiles.
Several Indian automobile manufacturers have spread their operations globally as well, asking
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for more investments in the Indian automobile sector by the MNCs.

Potential of the Automobile industry In 2008, Hyundai Motors alone exported 240,000 cars
made in India. Nissan Motors plans to export 250,000 vehicles manufactured in its India plant by
2011. Similar plans are for General Motors.
Segmentation of market share of automobile industry in India




Passenger Vehicle: 15.96%
Commercial Vehicle: 3.95%
Three wheelers: 3.60%
Two wheelers: 76.49%



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Top Automobile Companies in India
Tata Motors
Tata Motors is the largest automobile manufacturing companies in India. Established way back
in 1945 Tata Motors is a multinational automobile company with its headquarters in Mumbai.
Previously known as Telco TATA Engineering and Locomotive Company Tata Motors belongs
to Tata Group. This company manufactures compact medium sized utility vehicles. Over the last
few decades it has stood as the undisputed leader in the commercial vehicles segment. It is also
the third largest producer of passenger cars in India. This automobile company in India is listed
on both the Bombay Stock Exchange and the New York Stock Exchange. The revenues earned
by Tata Motors in 2010 accounted to $20.572 billion. Some of the well known cars
manufactured by Tata Motors are: Tata Indigo, Tata Indica, Tata Sumo Tata Indigo Marina and
Tata safari.
Hindustan Motors Limited
Hindustan Motors Limited was founded in the year 1942 by B.M Birla. It is an operative subsidy
of the Birla Technical Services group. This company held the title of the biggest manufacturer of
cars in India before Maruti Udyog. Hindustan Motors was the pioneer in manufacturing
automobiles in India. The company accounted for a sales turnover of Rs 150.66 crore in 2010.
Some of the important cars and multi utility vehicles manufactured by Hindustan Motors Limited
include; Mitsubishi Lancer, Trekker, Contessa, Ambassador, Porter, Pushpak and the Mitsubishi.
Ashok Leyland
Ashok Leyland is a leading commercial vehicle manufacturer in India. It was established in
1948. The company over the years has become synonymous with the production of trucks,
passenger buses and emergency military vehicles. It happens to be the second largest commercial
vehicle producer in India holding a market share of almost 30 percent. The company holds a
record for selling almost 60, 000 vehicles and almost 7000 engines per years. Ashok Leyland
accounted for consolidated revenues of US$ 1.4 billion in 2009. Some of the popular products by
this company are; Panther BS-II Muti-axle Vehicles, Cheetah Bus-III, Tractors and Ecomet,
Lynx BS-II, Diesel and Natural Gas gensets from 15KVA to 250KVA.
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Maruti Suzuki India Limited
Maruti Suzuki India Limited was established in 1981. A part of this company is owned by
Suzuki Motor Corporation of Japan. It is the country's largest passenger car manufacturing
company. Credited for having brought in the automobile revolution in the country Maruti Suzuki
India Limited was known as Maruti Udyog Limited till 2007. With its headquarters in Delhi this
automobile company in India happens to be the largest producer and market share holder of cars.
The company accounted for consolidated revenues of US$4.8 billion in 2010. Maruti Suzuki
India Limited is credited for manufactures a variety of passenger cars SUVs, and Sedans. Some
of Maruti's most popular cars are: Alto, Gypsy, Omni, Wagon R, Maruti 800, Versa, Zen,
Esteem, Baleno and Swift.
Hyundai Motor India Limited
Hyundai Motor India Limited (HMIL) is owned entirely by Hyundai Motors of South Korea.
Hyundai Motors happens to be the largest car manufacturer in South Korea and the sixth largest
in the world. This automobile company in India is also the largest passenger cars exporter in
India. Established on May 6 1996 this company in a short span of time has taken the Indian
automobile industry by storm. Some of the popular cars manufactured by this company are;
Santro, Getz Prime, Hyundai i10, Hyundai i20 Accent and the Verna and Sonata
Bajaj Auto
Bajaj Auto is another important automobile manufacturing company in India. It is one of the
India's most trusted car manufacturers. It is an operative subsidy of the Bajaj Group. Bajaj Auto
happens to be the largest two and three wheeler manufacturer in India and also ranks in this field
across the globe. This automobile company was established on 2 November 1945. The company
was then known as M/s Bachraj Trading Corporation Private Limited. The company made a
modest beginning by importing and then selling two and three wheelers in India. Today Bajaj
Auto has become synonymous with two and three wheelers in the country. Some of its popular
two wheelers are; Pulsar 220DTS and Kawasaki Ninja 250R.

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Indian Automobile Industry SWOT Analysis

Strengths
 Domestic Market is large
 Government provides monetary assistance for manufacturing units
 Reduced Labor cost
Weaknesses
 Infrastructural setbacks
 Low productivity
 Too many taxes levied by government increase the cost of production
 Low investments in Research and Development
Opportunities
 Reduction in Excise duty
 Rural demand is rising
 Income level is at a constant increase
Threats
 Increasing rates of interest
 Too much competition
 Rising cost of raw materials





Airtech Private Limited

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History of the Company
AIR TECH story began in the year 1980 when a team qualified engineers comes together with a
vision of a company that would serve the technical needs of the market. Hence they established a
manufacturing unit at Dharwad that begins its manufacturing with Concentric Conventry Chucks
as its first product.
The Airtech is a private company that involved in the production of power chucks, rotary
cylinders, custom built chucks, torrent lath tooling.
The Company is registered under the company's Act 1956 as Airtech Private Ltd, with the initial
investment of just Rs. 5, 00,000. Nature of the company is machine tool manufacturing.
At the beginning Airtech registered as small concern at Dharwad for manufacturing of
Concentric Conventry Chucks as its first product. The dynamism of the promoters and their
desire to prove superior work holding tool saw new chucks and tools for work holding being
added regularly to the range.
Beginning in 1980 with the manufacturing of Concentric Conventry Chucks, they have grown as
one of the leading manufacturer of the chucks. In fact, they provide the complete work holding
solutions.
Constant interaction with the customers and continuous product innovation spanning two
decades, have helped them to add to their range of standard product. The technical competence
gained has also helped them to provide the cost effective customized solutions to some of the
most complex work holding requirements. They have also developed a range of the matching
cylinders.
To ensure a consistently superior product, Airtech adopts a system of continuous checks and
inspections right from raw material to finished products. The Company's trained workforce also
keeps an eagle eye during the production, as they are proud of Airtech's reputation for the
quality.


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Research and Development has been yet another area of focus by APL (Airtech Private Ltd.) a
modem CAD (Computer Aided Design) Centre manned by qualified personnel has not only seen
the introduction of new products but improvements on existing range, based on the continuous
feedback from the customer. The dedication has ensured that APIL always stays a step ahead.
Founders of the Company
1) Mr. Lajpath Rai Sukhija
2) Mr. D.Dhumbe
3) Mr.M.B Sudhindra Rao
4) Mr.P.G K. Murthy
5) Late N.Sukravalas
Nature of the Business Carried
Manufacturing of chucks and cylinders according to the diagram of specification prescribed by
the customers in order to meet the customers satisfaction and requirements.
Vision
 To design, develop and manufacture high precision work holding that are second to none.
 To create quality standards that will be pinch in work holdings
 To build the brand image that would be preferred by choice not by perfusion
Mission
 Build an organization that installs in every employee a sense of dedication, true
camaraderie and a feeling of one family.
 Make working in Airtech a passion rather than a duty
 To be a social responsible, environment friendly organization that cares for the society
and environment it belongs to.

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Quality Policy
 To meet the quality and requirements of our customers at all stages of manicure and to
continually strive to improve upon these requirements by adopting the latest technology
while ensuring the practices of safety.
 The quality of Airtech shall be to design, manufacture and market at competitive prices,
products, of such quality, which results in customer satisfaction, quality reparation and
market leadership
o Dynamic Leadership
o Expert engineers for expert work
o Customer's contributions and care
o Provision of work holding solution
o Continuous interaction with customers
Product Profile
APL manufactures three kinds of machine products they are
1) Chucks
2) Cylinders
3) Chuck Jaws
Chucks
In Simple words Chuck is defined as rotating work holding device. It is one of the important
accessory components in lathe, grinding, milling machines etc. the wedge design of the chuck
has a self locking features that prevent the accidents and it does not lose its gripping power even
at cutting loads with high repeatedly. It is fitted to the spindle for holding the jobs of different
shapes and sizes.

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Chucks are specified by:
 Type of chucks: APL manufacturer manual and power chucks.
 Number of Jaws: APL manufacturers 2 and 3 jaws chucks.
 Maximum diameter it can hold: APL manufactures chucks with diameter ranging from
130 mm to 1000 mm.
 Open centre diameter
 Maximum gripping force
 Maximum speed
APL has designed chucks operating at 6000 rpm.APL produces standard as well as specialized
chucks. Standard chucks are maintained to hold the standard jobs. Specialized chucks are
manufactured according to the specification of customers.













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Some of the chucks manufactured by Airtech






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Customers
APL has sufficient customers those can be broadly classified into 4 groups? they are OEM
(Original Equipment Manufacturers)
1. Laxmi Machine works, Coimbatore
2. ACE Designers? Bangalore
3. Jyoti Machine, Rajkot
4. HHT? Bangalore

Public and Private Companies
1. Bajaj Auto, Aurangabad
2. Telco, Dharwad and Pune
3. BHEL, Bangalore.
4. HAL, Bangalore

Government Organizations
1. Railways
2. Defense
3. Power supply plants
Other Users
Small Scale industries in and around the Hubli-Dharwad


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Competitors Information
APL is one of the major work holding companies in India. Even though it faces huge
competition from various companies, such as
1. GMT (Guindy Machine Tools), Chennai
2. Scientific Engineering Corporation(SECO), Guaragaon, Punjab
3. Chennai Clamping Devices
4. Jaws manufacturing, Pune
APL offers not only standard work holding but also total solutions in work holding. In fact this
why the APL's customers are spanning various sectors like Auto components manufactures,
ordinance factories, railways and machine tool manufacturers.
These are competitive in cost margin. This can be manageable by the APL through its quality
and the service it is eligible to compare with other companies.
They even faces the competition from various international companies, hence competitors can be
classified as Indian and foreign competitors. Details of them are as follows:







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Indian Competitors
1. Guindy Machine Tools Ltd, Chennai (GMT)
GMT was the first company, which started its manufacturing power chucks in India in the year
1950 with technical knowhow from BERG-Gennany.
They are still leading the market with 44% market share. OEM prefers their chucks because of
a. Superior quality product.
b. Marketing set up is sound
c. They have various sales and service staff / office in Delhi, Mumbai, Chennai, Bangalore
and many more tire one cities.

Their prices are 10-15% more than APL but 20-30% than imported chucks. Their production
capacity is high hence it helps them to meet the market demand.

2. Scientific Engineering Corporation (SECO) - Punjab
This company is manufacturer of scroll operated manual chucks since 1950. It started
manufacturing power chucks and cylinders since 1995-1998.
Quality is inferior but price and presence wise, it is making dent into end user sector.
OEMs are not giving the preference to its products. It has dealers and stockiest in almost all the
industrial towns.
It is coming up very fast and may be an eye sore for GMT and APL in very near future.



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3. Chennai Clamping Devices- (CCD), Chennai
This company is in a way off shoot of GMT, They were dealers for GMT for quite a long time.
Somewhere in 2002, some design and shop floor personnel of GMT resigned and joined this
company and starts manufacturing power chucks and cylinders.
They do not have good manufacturing set up. They are strong in marketing specially in Chennai
and Pune. In their anxiety to come up fast and secure second place, they are picking up design,
shop floor and sales and service people from APL and GMT. Their quality is not up to the mark
but yet is able to sell and recondition good numbers of chucks.
APL has to be very vigilant and have to keep watch on their activities.

4. Jaws Manufacturing, Pune
This company is basically chuck spare part manufacturers. Started reconditioning GMT, APL
and imported chucks. Now they are manufacturing jaws brand power chucks and cylinders. It
also manufactures precise manual chucks. They sell most of their products through dealers. But it
is very famous in pune and surrounding area.
Foreign Competitors
1. ROHM, Germany
2. SMW-Auto block
3. Kitagawa-Japan
4. ITW USA & India (Hyderabad)

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The following table shows the product profile
Product Model Dimensions
Hollow Chuck
WH 130, 165, 200, 250, 380, 450,
530, 610
Closed Centre Power Chuck WC 110, 125, 160, 200, 250, 305,
400, 530, 610
Ultra high speed power operated
hollow chuck
WHCB 165, 200, 250, 315, 400
Eccentric compensating power
chuck
QCJ 160, 200, 250, 315, 400, 500
Ball fulcrum power chuck BFC 160, 200, 250, 300, 380, 450,
500
Power operated collect chuck PCC 25, 40, 60, 80
Front operated power collect chuck FOCC 40, 60
Stationary power chuck PSC 165, 200, 250, 315
Diaphragm chuck SD / SCD 160, 200, 250
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Organization Structure

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Departmental Study
1. Purchase and Planning Department
2. Design and Development Department
3. Production Department
4. Quality Control Department
5. Finance Department
6. Administration and HR Department
7. Marketing Department
8. Customer Care Department

1. Purchase and Planning Department
The planning and purchase department (P&P) is lead by Mr. Rajendra Prasad. He manages all
the activities of planning and purchase department.

Planning Department
The company gets the orders from various suppliers as well as from perspective customers, after
seeing to its terms and cost aspects planning department issues acceptance order. But for certain
specialized tool some parts of product that cannot be carried out in the company then planning
department will out source such activity. After it comes from outsourced agency department is
responsible for the proper execution of purchase orders once accepted.




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Planning Process:
Planning process is done with the help of following diagram










Raw material is classified into 4 categories at APL, they are:
1) Raw Material:
This consists of the basic material which is raw in stake like carbon steel and alloy steel
etc.
2) Components:
These are the sub parts which are required as a part in the final product like screw, nuts
bolts etc. also comes carbon steel and alloy steel screw.
3) Consumables:
This are the inputs consumed while carrying out production such as oil, Lubricants etc.

Customer Requirements
Product Specification
Status of Raw Materials
Outsourcing
Procurement
Production
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4) Packing Material
These are the materials used for the fmal packing of products. Purchase Department
procures the raw material for standard products one month before but for special products it
follows just in time technique.
Suppliers
APL gets raw material from the following suppliers. They are
 Hi tech Forge, Bangalore
 Rukmini Forge, Bangalore
 Sona Steels, Mumbai

2. Design and Development Department
Objective
To design the products (chucks, work holding solution) as per the specification provided by the
customers.
Scope
Since APL manufacturing concern of industrial products hence its operations are concerned
regarding design of products with the help of CAD (Computer Aided Design). After the purchase
order acceptance the product specification is send to this department to design the required
product.



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Procedure
 After receiving the purchase orders from customers marketing department will send these
orders to purchase and planning department they check out whether raw material is
available with them or not if not accordingly they orders for material. Once it passed this
stage it will go to design and development department.
 Design department with its well skilled engineers starts designing the products. Once the
design gets completed it will be sent to the production department, and chucks are
manufactured.

3. Production Department
This department is headed by Mr. M. A. Dixit. There are two supervisors working on design-
oriented products. Goods are produced in batch production process is as follows: Production
plant is quite big and clean in which workers can work without any problem of dust and foul and
production process will be conducted in shift basis. There are two shifts for workers in
production plant each shift of 8 hours.
First shift starts from 8:30 to 5:00 PM.

4. Quality Control Department
The Quality control department is lead by Mr. Maqabool. Main function of this department is to
check the design / drawings. This is very important department from quality point of view
because quality and reliability are the hallmark of APL products.
PL adopts a system of continuous check and inspection right from raw material to, finished
product stage.
In case of outsourced product the department checks the product if the quality is not up to the
mark then it's rejected.
Quality control process is done by the following authority.
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5. Finance Department
Under this department the personnel should have enough qualification and skills regarding the
maintenance of project, transaction of the firm and to prepare, maintain and balance sheet and
annual report by the year end superior through their orientation give training for new personnel.
APL is maintaining separate department for the purpose of accounting "Tally software package
is used for accounting". General banking transactions are carried out through SBI.
Responsibilities of accounts department
1. Preparation of cash transaction, vouchers, day book, checking cash disbursement etc.
2. Distribution of salary and wages.
3. Maintaining cash book, collection book and data entry in computer.
4. Preparing monthly operational data which includes the production, sales, raw material
and income expenditure.

6. Administration and DR Department
Objective:
To objective the training needs of employees and organizational needs of human resource.
Responsibility:
HOD of Administration and HR Department Mr. Purohit is over all responsible for identifying
the needs for identifying the needs for the personnel working in their department and
Coordinating with training.
Procedure
The forms of recording the training needs is forwarded to respective HOD's by training
department, the HOD of respective section decides regarding the person to be trained and type of
training required after getting the forms back this department process the forms and training plan
is worked out.
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There are all types of workers employed in this APL like skilled, unskilled, semi-skilled
employees.
Recruitment and selection
In APL there is scope for internal source of recruitment like present permanent employees,
present temporary employees, so as to motivate them and also gain the advantage of minimum
cost of selection. For external source management will go for district employment exchange
where job profile of the required employees will be handed over to the employment exchange.
According to the needs of the company the district employment exchange will send the
candidates whose profile matches the company's requirements.
There are different types of training they are:
 In - house training program
 External departments
 Off the job training
 On the job training
 Induction training to new entries

7. Marketing Department
Marketing department plays an important role in every Organization.
The functions of marketing department are as follows:
 Controlling information flow between head office and dealers / representatives.
 Sales reports are sent every week by individual area representative to the main office.
 To satisfy the customers.
 Orders from and sales form is issued and sent to the office and factory in time.
 Conducting marketing development activity.
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Today in Airtech the changes are occurring at accelerating rate, the situation will not remain
same always to cope with, today the APL in not only introducing new products but also
improvement on the existing range based on the continuous feedback from the customers.

8. Customer Care Department
Objective
To solve the customers grievances and complaints in order to satisfy and to maintain a long term
relationship with the customers.
Scope
Scope of this department is vast since it concerned about handling the customers problems before
and after the sales.
Procedure
After getting the feedback forms from customers, marketing department send those customers
from which are ranked low / not satisfied. These forms are collected by customer support
department and contact them and provide assistance, also try to reduce their dissatisfaction.
Customers support department has well and efficient service engineers and representatives, they
manages these complaints very effectively.

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SWOT Analysis
Strengths
1. Airtech Pvt Ltd. has a very good image in the eyes of their customers since they produce
the chucks as per the prescribed specification by customers.
2. Even the prompt payments to their vendors/suppliers make them different from others.
3. The company has a good will in the domestic market.
4. To quote about their quality consciousness, their products are one of the true strengths of
the organization because even in the absence of ISO certification they have achieved the
sense of reliability in industry.
5. They have a strong benefit of their location since, it is situated besides NH-4, a Pune-
Bangalore highway, which is just 6 km away from the Railway Station.
6. They are highly concerned about their Research and Development activity which plays a
vital role in new product development and design.
7. The management is happy and feels strong because they have not faced any problem
regarding strikes and lockouts, which indicates the cordial relationship between
management and workers.
Weakness
1. The major problem with Airtech is that the Labor turnover rate is high.
2. They are paying very less salary to operational level of employees; another reason is that
they themselves don't want to continue with the old temporary operational level of
employees.
3. Even Airtech is unable to attract the foreign demand due to not bearing ISO certificate.
They are facing problems in areas such as distribution and logistics and thus it is in turn
affecting the customer relationship also.
4. When the Administration is critically observed, it is clear that there is much confusion
regarding delegation of authority between different departments.
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Opportunities
1. The Airtech Company can extend its business to large extent since they are unable to
meet the market demand as expected, reliable quality, and good customer relationship.
2. Then can get benefitted by the availability of labor in Dharwad since, there are many ITI,
Diploma colleges. As the company is situated besides highway they can also solve the
distribution problem facing by Airtech.
3. Even the company is going for ISO certification in the days to come thus, it will help
them to enter into a global market.

Threats
1. There are more than 300 chuck manufacturing companies are present in industry that
creates stiff competition.
2. Recession is also one of the major threat to the company.










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Introduction
Management Development is a key function in most organizations, The term performance
appraisal has been called by many names, including performance review, performance
evaluation, personnel rating, merit rating, employee appraisal or employee evaluation, A
performance appraisal has been defined as any personnel decision that affects the status of
employee regarding their retention, termination, promotion, transfer, salary increase or decrease,
or admission into a training program,
• The history of performance appraisal is quite brief. Its roots in the early 20th century can
be traced to Taylor's pioneering Time and Motion studies.
• Performance appraisal systems began as simple methods of income justification. That is,
appraisal was used to decide whether or not the salary or wage of an individual employee
was justified.
• The process was firmly linked to material outcomes. If an employee's performance was
found to be less than ideal, a cut in pay would follow. On the other hand, if their
performance was better than the supervisor expected, a pay rise was in order.
• Little consideration, if any, was given to the developmental possibilities of appraisal.
Need
• Sometimes this basic system succeeded in getting the results that were intended; but more
often than not, it failed.
• The human inclination to judge can create serious motivational, ethical and legal
problems in the workplace.
• Without a structured appraisal system, there is little chance of ensuring that the
judgments made will be lawful, fair, defensible and accurate.


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Meaning
• Performance appraisal-employee appraisal- performance review, or (career)
development discussion:
• It is a method by which the job performance of an employee is evaluated (generally in
terms of quality, quantity, cost, and time) typically by the corresponding manager or
supervisor.
• A performance appraisal is a part of guiding and managing career development.
• It is the process of obtaining, analyzing, and recording information about the relative
worth of an employee to the organization.
• Performance appraisal is an analysis of an employee's recent successes and failures,
personal strengths and weaknesses, and suitability for promotion or further training.

Modern Appraisal
Performance appraisal may be defined as a structured and formal interaction between a
subordinate supervisor, that usually takes the form of a periodic interview (annual or semi-
annual), in which the work performance of the subordinate is examined and discussed, with a
view to identifying weaknesses and strengths as well as opportunities for improvement and skills
development.





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Process of Performance Appraisal







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Uses of Performance Appraisal
• Performance Improvement.
• Compensation Adjustments.
• Placement decisions.
• Training and development needs.
• Career planning and development.
• Deficiencies in staffing process.
• Informational inaccuracies.
• Job design error.
• Avoidance of discrimination.
• External challenges.

Rater Biases
• The halo effect
The halo effect is a cognitive bias whereby the perception of one trait (i.e. a characteristic
of a person or object) is influenced by the perception of another trait (or several traits) of
that person or object. An example would be judging a good-looking person as more
intelligent.
• The error of central tendency
In performance appraisals or recruitment interviews, tendency of managers and
interviewers to rate all or most of the employees or interviewees as average.

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• The leniency and strictness biases
Giving everyone high ratings regardless of actual performance, in an attempt to avoid
conflict or to make yourself look good.
• Personal prejudice
Allowing personal feelings toward employee to influence rating.
• The regency effect
Failing to take into account the entire evaluation period and focusing on a recent
performance episode, positively or negatively. Base your evaluation on representative
information from the whole evaluation period to avoid this error.
• The Horns Effect Error
Allowing one disfavored trait or work factor to overwhelm other, more positive
performance elements, resulting in an unfairly low overall performance rating.
• Contrast Error
Evaluating an employee in relation to another. Evaluations should be based on how well
the employee performed in relation to his/her duties, goals and stated performance
standards – actual performance compared to expected performance.
• Past Performance Error
Rating on past performance rather than present performance.
• Past Performance Error
Rating on past performance rather than present performance
• High Potential Error
Confusing potential with performance
• Guilt by Association Error
Evaluation influenced by employee's associations rather than performance.

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Performance Appraisal System:
• Performance Appraisal system is a part of ongoing management process, the purposes of
which are to:
• Provide for systematic planning by allowing the manager to identify critical job elements
& objectives.
• Conduct a systematic review of employees overall performance & provide constructive
feedback.
• Provide objective information to guide management decisions on promotions etc.
• Establish an objective basis for determining annual performance.

Process:
 Establishing Performance Standards
 Communicating Performance Standards to employees
 Measuring Actual Performance
 Comparing Actual Performance with Standards
 Discussing appraisal with the employees
 Taking Corrective Action

The following criteria should be followed to make the performance appraisal more effective:
 Make performance appraisal part of an ongoing process
 Look at all aspects of an employee’s performance
 Make specific and constructive judgments
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 Criticize work habits & behavior, not the person
 Don’t let marginal employees slide
 Keep complete written records for all performance appraisals.

Steps for effective Performance Management:
 Developing Business Plans
 Establishing aspects of performance that need to be measured
 Setting up Systems to Monitor & Evaluate
 Defining the General Performance Expectations of Employees
 Agreements on Specific Performance Objectives
 Developing an Internal Communications System
 Ensuring that the performance Appraisal System is well understood & is working
effectively
 Supporting employees to help them perform well
 Seeking Performance improvement
 Recognizing & Rewarding good performance





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Line managers Character:
 Eagerly pursues new knowledge, skills,
and methods
 Knows own strengths and limitations
 Personally committed to the strategy
 Makes decisions based on business
needs rather than personal agenda
 Self confident
 Open to feedback and criticism
 Avoids negative politicking and hidden
agendas
 Willing to take a courageous stand
 Trusts others appropriately
 Respected by others
 Sincere and straightforward
 Serves others; avoids selfishness
 Accepts responsibility for own
mistakes
 Can be trusted with sensitive
information
 Patient when necessary
 Avoids bias in attitude or treatment of
people
Interpersonal Skills
 Resolves conflicts among team
members
 Brings conflicts into the open for
resolution
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 Listens effectively
 Encourages open dialog
 Gives personal attention; is accessible
 Adjusts to changes without frustration
 Preserves others’ self esteem
 Earns respect without being
overbearing
 Recognizes the value of people with
different talents and skills
Building Talent
 Gives me enough feedback
 Gives feedback accurately and fairly
 Makes performance review a
meaningful experience
 Develops a talented team
 Judges the capabilities of people
accurately
 Keeps talented people challenged
 Develops bench strength for the future
 Develops career paths for talented
employees
 Knows employee needs for
development
 Provides cross-training and job
rotations




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Leadership/Motivation
 Makes a compelling case for his/her
point of view
 Effectively persuades others in order to
build commitment for ideas
 Communicates an inspiring vision
 Helps people develop passion for their
work
 Recognizes employee contributions and
ideas
 Sensitive to satisfaction and morale in
the group
 Generates urgency in others
 Recognizes and rewards high
performers
 Provides a positive example; "walks the
talk"
 Creates an atmosphere that inspires
others to achieve at a higher level
 Helps staff define clear objectives
 Regularly reviews objectives with staff
 Involves employees in decisions
 Delegates enough work
 Delegates authority; encourages
independence
 Sets clear deadlines
 Facilitates rather than dominates
 Manages costs without alienating work
force
 Communicates reasons for changes and
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decisions
 Conducts effective meetings
 Manages people according to their
unique needs
 Tolerates honest mistakes as learning
experiences
 Articulates the strategy in plain
language
360 Degree Assessment Design
If you have never administered 360 degree feedback assessments in an organization, there are
some important things to think about before you begin. Conducting a successful feedback
program requires careful consideration and planning every step of the way, including survey
design, deployment, and data-delivery. The tips and suggestions listed below will help you
avoid some common embarrassing and painful mistakes.
Design your 360 Assessment Carefully
Define Superior Performance - Identify Competencies and Expectations for your
Organization: Work with the leaders of your organization to identify competencies which are
expected of all employees. These competencies should be tied to your organization's core values,
mission, and strategy. Work with the senior person or group in each department - not only will
their input be valuable, but you will also get their buy-in which will be important to the success
of your 360 feedback program.
Define Superior Performance - Differences by Level: If you are conducting 360 feedback at
different levels in your organization, consider how the specific behaviors and requirements
differ, depending on what level a person is at within the organization.

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Define Superior Performance - Identify Position-Specific Competencies: We don't
recommend creating a different 360 survey form for every position, but for a small number of
key positions or functions, you might consider adding specific competencies that are required for
successful job performance.
Compose Questions for each Competency: Start by working from our standard list of 360
survey items. If there are specific behaviors or skills that you want to measure that are not
covered by one of our items, take time to compose effective questions for the competencies that
you have identified. If you have never written survey questions before, consider doing some
research on how to write effective questions or hire a consultant to help you. If your questions
are not well written, the data you receive will not be as useful.
Quantitative versus Qualitative Data: It is important to collect both quantitative (numeric) and
qualitative (comments) data. Numeric data will give you hard numbers that you can use to
identify strengths and weaknesses. Comments will offer insights into specific issues that are
often missed by quantitative data alone. Comments are often the most valuable part of the
feedback process.
Pilot your Survey: Once you have written the questions/competencies for your survey, try
filling out the survey as if you were rating a coworker that you know well. This is your chance to
identify redundancy, confusing items, and missing competencies. You should also ask a small
group of people to help you by doing the same exercise. You can include some extra items on the
survey for the pilot respondents that ask them to comment on the survey itself. You should also
include instructions that ask them to comment specifically on items that they find redundant or
confusing and ask them if they think anything is missing from the survey.
Ready to Launch? Once you have gone through the above process, you are just about ready to
launch your survey.


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Purposes of Performance Appraisals
Performance appraisal for evaluation has served the following purposes:
1. Promotion and transfer decisions
2. Feedback to the employee regarding how the organization viewed the employee's
performance.
3. Evaluations of relative contributions made by individuals and entire departments in
achieving higher level organization goals.
4. Reward decisions, including merit increases, promotions, and other rewards.
5. Ascertaining and diagnosing training and development decisions.
6. Criteria for evaluating the success of training and development decisions.
7. Information upon which work scheduling plans, budgeting, and human resources
planning can be used
Two serious flaws in the traditional approach to performance appraisal exist. The flaws
are:
1. Organizational performance appraisal is typically primarily concerned with the past
rather than being forward looking through the use of setting objectives or goals. Data
about the weaknesses or negative aspects of an individual are captured in the appraisal
format, however it is not seriously used to implement positive changes in the
performance of the individual.
2. The flaws are recorded and forgotten about and the positive traits are not made use of.
3. Performance appraisal is usually tied to the employees' salary review. Linking the
individual development part of the appraisal format with salary generally overwhelmed
and blocked creative, meaningful, or comprehensive consideration of developmental
goals.


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Developmental Performance Appraisal Purposes
The developmental approach to performance appraisal has been related to employees as
individuals. This approach has been concerned with the use of performance appraisal as a
contributor to employee motivation, development, and human resources planning.
The development approach contained all of the traditional overall organizational performance
appraisal purposes and the following additional purposes:
1. Provided employees the opportunity to formally indicate the direction and level of the
employee's ambition.
2. Show organizational interest in employee development, which was cited to help the
enterprise retain ambitious, capable employees instead of losing the employees to
competitors.
3. Provided a structure for communications between employees and management to help
clarify expectations of the employee by management and the employee.
4. Provide satisfaction and encouragement to the employee who has been trying to perform
well.

The following is typically expected from company managers when doing performance
appraisals:
1. Translate organizational goals into individual job objective.
2. Communicate management's expectations regarding employee performance.
3. Provide feedback to the employee about job performance in light of management's
objectives.
4. Coach the employee on how to achieve job objectives/requirements.
5. Diagnose the employee's strengths and weaknesses.
6. Determine what kind of development activities might help the employee better utilize his
or her skills improve performance on the current job.
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The Performance Appraisal Process
The performance appraisal process typically consists of four inter-related steps as follows:
1. Establish a common understanding between the manager (appraiser) and employee
(appraisee) regarding work expectations; mainly, the work to be accomplished and how
that work is to be evaluated.
2. Ongoing assessment of performance and the progress against work expectation.
Provisions should be made for the regular feedback of information to clarify and modify
the goals and expectations, to correct unacceptable performance before it was too late,
and to reward superior performance with proper praise and recognition.
3. Formal documentation of performance through the completion of a performance and
development appraisal form appropriate to the job family.
4. The formal performance and development appraisal discussion, based on the completed
appraisal form and ending in the construction of a Development Plan.
Performance appraisal methods
Performance appraisal methods include 11 appraisal methods / types as follows:
1. Critical incident method
The critical incidents for performance appraisal is a method in which the manager writes down
positive and negative performance behavior of employees throughout the performance period
2. Weighted checklist method
This method describe a performance appraisal method where rater familiar with the jobs being
evaluated prepared a large list of descriptive statements about effective and ineffective behavior
on jobs


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3. Paired comparison analysis
Paired comparison analysis is a good way of weighing up the relative importance of options.
A range of plausible options is listed. Each option is compared against each of the other options.
The results are tallied and the option with the highest score is the preferred option.
4. Graphic rating scales
The Rating Scale is a form on which the manager simply checks off the employee's level of
performance. This is the oldest and most widely method used for performance appraisal.
5. Essay Evaluation method
This method asked managers / supervisors to describe strengths and weaknesses of an
employee's behavior. Essay evaluation is a non-quantitative technique. This method usually use
with the graphic rating scale method.
6. Behaviorally anchored rating scales
This method used to describe a performance rating that focused on specific behaviors or sets as
indicators of effective or ineffective performance. It is a combination of the rating scale and
critical incident techniques of employee performance evaluation.
7. Performance ranking method
Ranking is a performance appraisal method that is used to evaluate employee performance from
best to worst. Manager will compare an employee to another employee, rather than comparing
each one to a standard measurement.
8. Management By Objectives (MBO) method
MBO is a process in which managers / employees set objectives for the employee, periodically
evaluate the performance, and reward according to the result. MBO focuses attention on what
must be accomplished (goals) rather than how it is to be accomplished (methods)


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9. 360 degree performance appraisal
360 Degree Feedback is a system or process in which employees receive confidential,
anonymous feedback from the people who work around them. This post also includes
information related to appraisal methods such as 720, 540, 180.
10. Forced ranking (forced distribution)
Forced ranking is a method of performance appraisal to rank employee but in order of forced
distribution. For example, the distribution requested with 10 or 20 percent in the top category, 70
or 80 percent in the middle, and 10 percent in the bottom.
11. Behavioral Observation Scales
Behavioral Observation Scales is frequency rating of critical incidents that worker has
performed.

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Performance Appraisal System Advantages
The performance Appraisal system provides the following five advantages for the employee,
supervisor and company:
1. Compensation and Rewards: A well-administered program gives credibility to assigning
the proper salary increases and bonuses to employees. It allows the supervisor to reward the
right employees and the company to budget properly.
2. Poor Performers: Just as important as rewarding good work, a platform exists to deal with
employees who need improvement. The documentation sets the stage for performance
improvement plans and any other actions that may follow.
3. Good Morale: If employees can count on the fact they will receive thoughtful, consistent
and ongoing performance evaluations, morale improves; productivity increases.
4. Documentation: These valuable records can be used in any legal proceedings to explain
why certain actions were taken. They're also proof that company policies and employee and
company rights have been adhered to.
5. It's the Right Thing to Do: This may sound trite but companies have an inherent
responsibility to be fair to their employees about their performance. A well constructed
performance evaluation program, administered fairly by trained supervisors and managers,
is the best thing a company can do for itself, and for its entire people.
Performance Appraisal System Disadvantages
1. If not done appropriately, can be a negative experience.
2. Are very time consuming, especially for a manager with many employees.
3. Are based on human assessment and are subject to rater errors and biases.
4. If not done right can be a complete waste of time.
5. Can be stressful for all involved.

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Scope of the study
To review the performance of team leaders over a given period of time, to judge the gap between
the actual and desired performance. And also diagnose the training and development needs of
future. Also to assist in the human resource decisions like recruitment and selection, promotions,
transfers, terminations and career planning etc.
This study also aims at developing a communication system to deliver job expectations and
specific goals and also a performance appraisal system to measure and improve the performance
of team leaders at Airtech Private Ltd.

Objectives
 To study and understand the present system of measuring performance.
 To study the existing communication system of job expectations and specific goals.
 To understand the existing system of training and development needs.
 To develop a performance appraisal system to measure, evaluate, improve and monitor
the performance of team leaders at Airtech Private Ltd.

Research Methodology
Data collection method:
3) Primary Data:
It is been collected from HR managers, line managers, workers and other stakeholders by
adopting Interview method, observation and through Questionnaire.
4) Secondary Data:
It is been collected with the study of HR text books, company website, company records and also
the internet.
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Sampling Method
Here convenience sampling method will be adopted by considering random sample unit.

Tools and Techniques of data Collection
The tools and techniques used will be Questionnaire method for a larger and similar kind of
sample and personal interview method where ever necessary.

Benefits of the Study
 This study helps the company to improve the performance of line managers.
 It also indicates the training and development needs of the company.
 The study helps to find out the strengths and weakness of the HR department’s staffing
procedure.
 Helps the company to gain an idea about the performance appraisal system by the format
developed.
 The company can continuously review and implement the performance appraisal system
and make it a continuous process.
 It gives the researcher an opportunity to develop a performance appraisal system.
 It provides scope to understand and interact with the employees and their working style.

Limitations of the study
1. Time constraint is the main limitation for the study because the time given to complete
the project was about 2 months, which was concurrent with the regular classes and
academic studies.
2. Confidential nature of certain aspects that would not be divulged for the study.
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Analysis
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Performance Appraisal System at Airtech Private Ltd
The most important asset from which Airtech derived its true competitive strength is its
committed and talented workforce. The Management's belief in creating a working environment
where ability is the sole arbiter has paid rich dividends. The typical Airtech employee is a
talented professional, highly motivated and capable of working in a team to deliver results even
under the most challenging circumstances. This chapter deals with the process of the appraisal
system for the employees followed at Airtech Pvt Ltd.
At Airtech, the main objective of carrying out the appraisal was to enable systematic
identification of job-related strengths and weaknesses among individual employees and at the
same time to enable quick identification of process loopholes, if any, and also to help in evolving
precise benchmarks for employee evaluation. The appraisal was carried out in order to gain
insight into the employees' understanding of expectations and standards and also to help achieve
fair, decent and consistent reward outcomes.

Process involved
The following steps were involved in the process that was carried out in Airtech Pvt Ltd
1. Firstly, the organization chart was prepared in order to have an understanding of the various
departments of the organization, the team leaders of those departments and the members
who constitute each team/department.
2. Once the chart was prepared, the assignment of the task of reviewing each employee was
chalked out so as to know who is responsible for reviewing a particular employee and from
whom to obtain the feedback for review.
3. The Performance Appraisal forms already designed as per the organization's specifications
will be informed to the team leads and they were asked to review their team members based
on the feedback from respective managers.
4. The team leads then monitored each employee's job related performance, rated their
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members on a scale of 1 to 5 for each criteria, each rating a representative as follows:
1. "Needs Improvement"
2. "Below Expectations
3. "Meets Expectations"
4. "Exceeds Expectations"
5. "Exceptional"
The criteria and performance elements for the purpose of appraisal were
as follows:
 Quality of wok Productivity
 Technical Knowledge
 Communication & Teamwork
 Leadership & Project Management Skills
 General Policies & Standards

5. The duly filled in appraisal forms signed by the supervisor/team lead, were received after
which an overall performance rating was given to each employee based on the ratings under each
criteria.
6. The review and award of ratings for the team leaders of all the departments was done by the
Managing Director of the Company.
7. The appraisal forms thus received from the team leaders were arranged department wise and
handed over to the Managing Director.
a. The Managing Director, on plodding through the appraisal forms arranged for a meeting with
each employee individually to discuss the evaluation and to understand the gap (if any)
between the objectives set forth by the employee for the year and his/her accomplishments
towards those objectives during the year.
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Procedure for Performance Appraisal practiced in Airtech:
The workers are appraised by the following procedure:
1. The workers are first assessed by the immediate in charge i.e. section in charge.
2. The workers are assessed based on their performance whole year, their behavior, their
behavior with the co-workers & their superiors & super supervisors.
3. Assistance is provided by the personnel department by providing the section in charge
with employee details like attendance record, punctuality, etc.
4. Recommendation for each appraisee's increment is mentioned by the section in charge.
5. After the assessment of the worker, the in charge discusses with the concerned HOD &
rate each worker based on the performance.
6. The performance of each worker is measured by the higher authorities & decision is
taken about how much increment the worker should get.
7. The appraisal data is kept confidential. The workers are not given feed back by the
appraiser directly.
8. The worker is given the appraise letter or memo through personnel department, in which
the areas where they have to improve is mentioned & are advised to improve further.
9. The workers who have worked hard are given increment & the one who has to improve
are trained & directed to work in effective manner.
10. The needs aroused by this system are transformed into a training programme.

In this organization, the workers are hardly given any opportunity to assess themselves. The
workers who work harder & give more than what the management expects are given more
increments & their work is appreciated. This motivates them to work still harder & give the
management the best. In turn it motivates other workers who lag behind, to work & improve to
receive more increments in future.
The workers are given increments for their performance i.e, monetary terms are given as
rewards.
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Appraising Officers:
 The pattern for the appraisal of officers or Managerial/Supervisory staff is same as that of
the workers. Here assessment of the officers is done by the HOD's of the concerned
department.
 The managers or officers are allowed for the self assessment at the end of review period.
 The self assessment includes the factors like tasks completed / achievement, self rating,
reporting officers rating.
 The officers are appraised based on the following dimensions like technical ability,
quality of work, interpersonal skills, approach to work, supervisory skills / Leadership
skills and also strengths and development areas are also highlighted and also
performance, self development, initiative, commitment, judgment, team work are also
considered while assessing.
 After the assessment of officers and supervisors, the Works Manager held a discussion
with the Senior General Manager and decides the increments of each officer.
 As officers and above employees are considered as the non-bargainable employees,
Officers are also given increments at the end of the year,

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The below given are some of the formats used by the Airtech Pvt Ltd. These are different
formats for managerial staff and trainees / Learners.
All the formats are as follows:
Points considered by the management before conduction of Performance
Appraisal System:
1. The management sees that the impartial appraisal is carried out in the organization by the
appraisers.
2. There should be clarity of roles and responsibilities of each employee working in the
organization to the appraisers.
3. The performance Appraisal system should be Activity Oriented and also the process of
doing work should be considered as important.
4. Performance Appraisal should interlink with Career plan.
5. Performance Appraisal should help in recognition and appreciation.
6. Performance Appraisal should not entertain the people who do politics.
7. The feedback of each employee should only consist of the areas where the improvement
is required.








Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 60

Benefits to the Company by conducting this system
1. The employees get motivated to work harder for the organization.
2. By conducting this system, the employees set personnel goals for themselves and also for
others i.e., it helps for self development.
3. To overcome the weaknesses, management can arrange training programme. This help to
improve the performance of the individual.
4. The performance reviews helps to take managerial decisions like promotions, transfers,
etc.
5. To judge effectiveness of the other human resource functions of the organization such as
recruitment, selection, training and development.
6. Helps to strengthen the relationship and communication between superior subordinate
and management of employees.
7. To judge the gap between the actual and desired performance.













Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 61











Interpretation






Airtech Private Limited

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1. When is the performance appraisal conducted in the
organization?

Performance Appraisal
Particulars
Frequency Percent
Valid
Percent
Cumulative
Percent
Once in a
year
11 100.0 100.0 100.0









0
2
4
6
8
10
12
1
Performance Appraisal Conducted
once in a year
Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 63

2. Which method is adopted in measuring the performance?

Methods For Measuring
Particulars
Frequency Percent
Valid
Percent
Cumulative
Percent
180 degree
appraisal
2 18.2 18.2 18.2
360 degree
appraisal
1 9.1 9.1 27.3
self
appraisal
5 45.5 45.5 72.7
others 3 27.3 27.3 100.0
Total 11 100.0 100.0








0
2
4
6
8
10
12
180 degree
appraisal
360 degree
appraisal
self
appraisal
others Total
R
a
t
i
n
g

Methods for Measuring
Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 64

3. Had the company objectives been clearly communicated
at the beginning?

Communication
Particulars
Frequency Percent
Valid
Percent
Cumulative
Percent
Yes 9 81.8 81.8 81.8
No 1 9.1 9.1 90.9
Not clearly
Communicated
1 9.1 9.1 100.0
Total 11 100.0 100.0









0
2
4
6
8
10
12
yes NO Not clearly
Communicated
Total
R
a
t
i
n
g

Communication
Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 65

4. According to you, on which all criteria’s the performance
appraisal system was conducted?

Criteria
Particulars
Frequency Percent
Valid
Percent
Cumulative
Percent
Quality of work 2 18.2 18.2 18.2
Productivity 2 18.2 18.2 36.4
Technical
Knowledge
4 36.4 36.4 72.7
Communication
& Team Work
1 9.1 9.1 81.8
General
policies &
Standards
2 18.2 18.2 100.0
Total 11 100.0 100.0






0
2
4
6
8
10
12
R
a
t
i
n
g

Criteria
Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 66

5. What was the Appraiser’s feedback about your
performance?

Feedback
Particulars
Frequency Percent
Valid
Percent
Cumulative
Percent
Meet
expectation
8 72.7 72.7 72.7
Exceptionally
Well
2 18.2 18.2 90.9
no
communication

1 9.1 9.1 100.0
Total 11 100.0 100.0








0
2
4
6
8
10
12
Meet
expectation
Exceptionally
Well
no commu Total
R
a
t
i
n
g

Feedback
Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 67

6. In which area did the appraiser feel the need for
improvement in you?

Appraiser Improvement
Particulars
Frequency Percent
Valid
Percent
Cumulative
Percent
quality of work 1 9.1 9.1 9.1
productivity 1 9.1 9.1 18.2
technical
knowledge
4 36.4 36.4 54.5
Communication
& team work
1 9.1 9.1 63.6
leadership &
project
management
skills
1 9.1 9.1 72.7
General
policies &
standards
3 27.3 27.3 100.0
Total 11 100.0 100.0



0
2
4
6
8
10
12
Appraiser's Criteria
Frequency
Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 68

7. According to you, which were the areas you felt that you
should improve?

Your Improvement

Particulars
Frequency Percent
Valid
Percent
Cumulative
Percent
quality of work 1 9.1 9.1 9.1
Technical
Knowledge
4 36.4 36.4 45.5
communication
& team work
2 18.2 18.2 63.6
leadership &
project
management
skills
2 18.2 18.2 81.8
general polices
& Standards
2 18.2 18.2 100.0
Total 11 100.0 100.0





0
2
4
6
8
10
12
R
a
t
i
n
g

Individual Improvement
Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 69

8. Was there a two way communication in the appraisal
process, in interview?

Two Way Communication
Particulars
Frequency Percent
Valid
Percent
Cumulative
Percent
yes 3 27.3 27.3 27.3
no 5 45.5 45.5 72.7
partially 3 27.3 27.3 100.0
Total 11 100.0 100.0










0
2
4
6
8
10
12
yes no partially Total
R
a
t
i
n
g

Two Way Communication
Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 70

9. After appraisal, when there was felt a need for
improvement, which method was undertaken to improve
your performance?

Need For Improvement
Particulars
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid 1 9.1 9.1 9.1
counseling 1 9.1 9.1 18.2
training &
Department
4 36.4 36.4 54.5
monetary
increment
2 18.2 18.2 72.7
promotion 3 27.3 27.3 100.0
Total 11 100.0 100.0







0
2
4
6
8
10
12
R
a
t
i
n
g

Need For Improvement
Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 71

10. Is transparency maintained in appraisal process?

Transparency
Particulars
Frequency Percent
Valid
Percent
Cumulative
Percent
yes 5 45.5 45.5 45.5
no 4 36.4 36.4 81.8
partially 2 18.2 18.2 100.0
Total 11 100.0 100.0











0
2
4
6
8
10
12
yes no partially Total
R
a
t
i
n
g

Transparency
Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 72

11. After appraisal, did you feel any kind of improvement in
your performance?

Latter Improvement
Particulars
Frequency Percent
Valid
Percent
Cumulative
Percent
valid 1 9.1 9.1 9.1
yes 9 81.8 81.8 90.9
no 1 9.1 9.1 100.0
Total 11 100.0 100.0











0
2
4
6
8
10
12
yes no Total
R
a
t
i
n
g

Latter Improvement
Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 73

12. Are you satisfied by the method in which you underwent
improvement?

Satisfaction
Particulars
Frequency Percent
Valid
Percent
Cumulative
Percent
yes 10 90.9 90.9 90.9
no 1 9.1 9.1 100.0
Total 11 100.0 100.0












0
2
4
6
8
10
12
yes no Total
R
a
t
i
n
g

Satisfaction
Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 74










Findings







Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 75

Following are the findings ascertained from the interpretation of the
study of Performance Appraisal System
 Performance Appraisal System at Airtech is conducted once in a year.
 As per the interpretation, self appraisal is carried along with 90
0
and 180
0

Appraisal system. Majority of the people are not clear about which system is
followed to appraise them.
 Around 80% of the appraisee’s are clear about the objectives they have to
achieve. That is out of 11, 9 appraisee are clear about the objectives.
 It was found that approximately 35% of the appraisee felt that technical
knowledge was the criteria for performance appraisal to be conducted and the rest
felt it was quality of work, general standards & policies, on leadership and project
management skills, Productivity communication and team work.
 The employees feel they need to focus only on those criteria’s which is needed by
their job, but in actual they have to be well known about all the criteria.
 Out of all, 72% of the people met the expectations of the appraiser, and 18% did
exceptionally well.
 The appraiser felt that the employees have to know more about General policies
and Standards and also about some technical aspects.
 Out of 11, 36% of them felt that they have to improve their technical knowledge,
and the rest felt they need to work on leadership and project management skills,
quality of work, general standards & policies.
 Many appraisee lack the knowledge on General policies and standards.
Airtech Private Limited

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 Of 11, 5 felt there was no two way communication system in the appraisal
process, 3 felt there was a two way communication system and the rest 3 had a
partial opinion.
 For improvement in the present skill set, 4 appraisee underwent training, 3 got
promotion, 2 got a monetary increment and 1 underwent counseling.
 In the matter of transparency, 5 of them felt the system was transparent, 4 of them
felt it was not transparent, and one was partial about the transparency.
 After performance appraisal system was complete, 80% of them felt an
improvement in their performance.
 Out of 11, 10 are positive towards the system and are satisfied with the appraisal
system carried out in the organization.
 One of the appraisee suggested more transparency in the Performance Appraisal
System of the firm.
 From the study of the performance appraisal system of the company, as described
by the HR Manager, the company follows 180
0
appraisal system.
 There is also Self Appraisal carried out in the process.






Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 77









Recommendations








Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 78

On the basis of the study conducted, by the input of some recommendations the performance
appraisal system can be even more effective. Some of the recommendations are:
 The employees at Airtech are not aware of the existing Performance Appraisal System. It
creates an ambiguity in employees about the basis on which they are judged. Knowing
the Appraisal system would help them know about the right criteria of appraisal, makes
their work more focused and helps them to connect their individual goals to the
organization goals.

 The company can communicate the importance and process of Appraisal by conducting a
meeting. And once the objectives are communicated, there must be periodic review
sessions so that it keeps the employees focused and also gives a chance for improvement.

 Most of the employees have felt the need of technical training and knowledge updating
on General policies and standards. Providing them the above mentioned requirements
will increase their productivity and the employees will be motivated to work more.

 Technical training can be provided by organizing training programs where the experts
address and educate the employees.

 There is also a need of knowledge updating on General policies and standards. A start can
be made by hanging the frames of company’s vision, mission, policies and objectives, so
that the employees read it daily and be motivated to work. It also creates a connection
between the company’s and individual goals.

 The performance appraisal is conducted once in a year. As it is found that the employees
lack clearance of objectives, and in mean time they lose focus, hence to educate and
review them, there has to be a check on the progress of the employees, until everyone is
clear about the connectivity between their personal and organization goals.


Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 79

 Though self appraisal is conducted, the self appraisal form has to be designed more
specific and in more detail so that it takes out the maximum info from the appraisee and it
results in clear recognition of needs, provides details about their achievements and their
requirements. There has to be a right tool of measuring the self appraisal method.

 The present system of appraisal followed is 180
0
appraisal system; the company would be
beneficial if it adopts 360
0
appraisal system, as it considers everyone including peers, and
colleagues.

 360
0
appraisal also helps to evaluate subjective areas like Team work, Leadership etc. it
provides with more information as the subordinates and superiors as well as the people
working under them contribute to the process. It gives a better dimension of study.















Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 80






Conclusion






Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 81

 Performance appraisal can be viewed as a process of assessing staff performance for the
purpose of making judgment about staff that leads to decisions about hiring, firing,
training, counseling, promotion etc.
 Performance appraisal should also be viewed as a system of highly interactive process
which involves determining job expectations, preparing job descriptions, selecting
appraisal criteria, developing tools and procedures, collecting and interpreting the results.
 The appraisal system needs up gradation and also the employees have to be more serious
about the appraisal process as it decides the training and development needs, promotions
and also helps to recognize the potential of employees.
 A well prepared and well conducted performance appraisal process results in unbiased
results and also provides the Managers with specific and detailed information. It also
helps in improvement and increases the overall efficiency and productivity of the
employees and hence results in the growth of the company.











Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 82











Annexure







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KLE’s Institute of Management Studies and Research Page 83

Questionnaire
Dear Sir/Mam,
The data provided by you will help me to assess the current and potential
performance programs. Your individual response will be used to identify the
performance appraisal system at Airtech Private Ltd, Dharwad. Your responses
will be kept confidential.
Name: __________________________________________
Designation: _____________________________________
Department: _____________________________________
Working since: ___________________________________

When is the performance appraisal conducted in the organization?
a) Quarterly ( )
b) Once in 6 months ( )
c) Once in a year ( )
d) Once in 2 years ( )

Which method is adopted in measuring the performance?
a) 180 degree appraisal ( )
b) 360 degree appraisal ( )
c) Self appraisal ( )
d) Others ( )
If others then please specify: _________________________




Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 84

Had the company objectives been clearly communicated at the beginning?
Yes ( )
No ( )
Not clearly communicated ( )

According to you, on which all criteria’s the performance appraisal system was
conducted?
a) Quality of work ( )
b) Productivity ( )
c) Technical knowledge ( )
d) Communication and team work ( )
e) Leadership and project management skills ( )
f) General policies and standards ( )
If others, please specify: _____________________________

What was the Appraiser’s feedback about your performance?
a) Below expectations
b) Meet expectations
c) Exceptionally well
Others: _____________________

In which area did the appraiser feel the need for improvement in you?
a) Quality of work ( )
b) Productivity ( )
c) Technical knowledge ( )
d) Communication and team work ( )
e) Leadership and project management skills ( )
f) General policies and standards ( )
If others, please specify: ____________________________
Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 85

According to you, which were the areas you felt that you should improve?
a) Quality of work ( )
b) Productivity ( )
c) Technical knowledge ( )
d) Communication and team work ( )
e) Leadership and project management skills ( )
f) General policies and standards ( )
If others, please specify: ____________________________

Was there a two way communication in the appraisal process, in interview?
Yes ( )
No ( )
Partially ( )

After appraisal, when there was felt a need for improvement, which method was
undertaken to improve your performance?
a) Counseling
b) Training & Development
c) Monetary increment
d) Promotion
Others, please specify: ___________________________

Is transparency maintained in appraisal process?
Yes ( )
No ( )
Partially ( )


Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 86

After appraisal, did you feel any kind of improvement in your performance?
Yes ( )
No ( )

Are you satisfied by the method in which you underwent improvement?
Yes ( )
No ( )

Any suggestions for the improvement of the present appraisal system?

__________________________________________________________________
__________________________________________________________________
__________________________________________________________________











Airtech Private Limited

KLE’s Institute of Management Studies and Research Page 87

Bibliography

Websites:
http://www.airtechindia.com/main.html
http://www.businessballs.com/performanceappraisals.htm
http://en.wikipedia.org/wiki/Performance_appraisal

Books:
Essentials of Human Resource Management, by P Subba Rao, Himalaya
Publications
Human Resource Management, by Gessler Varkkey, Pearson Publications