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INTRODUCTION











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INTRODUCTION
HR guides the organization in the acquisition, maintenance, development, supervision and
measurement of the human assets and the results of their work (quality, productivity and service)
measurement. It manages the central and the most vital component of an organization i.e.
employees and supports ongoing communication, feedback and dialogue about organizational
goals between them and the supervisors. Thus, is easy to see why HR is one of the most vital
functions in an organization.
Performance can be defined as the extent to which individuals, groups or functional units are
striving to meet company commitments, goals and other requirements.
Management is an ongoing process involving: planning, communication, goal and objective
setting, monitoring, modifying, evaluating, training, disciplining, measuring and learning from
the lessons learned in the past.
Performance Management is a systematic process that includes:
1. Planning
2. Monitoring
3. Rating
4. Rewarding
Honda is a firm believer in using its Performance Management System as a business tool to gain
a distinct competitive advantage with the ability to improve employee satisfaction and take
organizational performance to new heights. Gone is the conventional once-a-year performance
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review, today it´s all about coaching, mentoring, competency frameworks, 360-degree
evaluation, self-assessments, continuous learning and a variety of other popular practices.
To carry out these activities, individual performances have to be measured. Measurement must
be based on a combination of strategic and operational measures.
MEASUREMENT FRAMEWORK
1. Reflect the strategic goals.
2. Balanced in terms of financial, customer satisfaction, process effectiveness and
workforce capacity measures.
3. Explicitly state / imply the strategic HR objectives.

PRINCIPLES OF PERFORMANCE MEASUREMENT
1. The productivity and effectiveness of any function can be measured by some combination
of cost, time, quality, quantity or human relation indices.
2. A measurement system promotes productivity by focusing attention on issues
important to the organization.
3. Performance should be measured a both individual and group levels.
4. The ultimate measurement is not efficiency, but effectiveness.




4






INTRODUCTION
OF
ORGANIZATION








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HISTORY OF THE ORGANIZATION
Japan-based Honda Motor Company was founded in 1948 by Soichiro Honda and since its
establishment; Honda has remained on the leading edge by creating new value and providing
products of the highest quality at a reasonable price, for worldwide customer satisfaction. The
Company has grown to become the world's largest motorcycle manufacturer and one of the
leading automakers; models like the Civic and the Accord are considered benchmarks in their
respective classes. In addition, the Company has conducted its activities with a commitment to
protecting the environment and enhancing safety in a mobile society. Honda develops,
manufactures and markets a wide variety of products, ranging from small general-purpose
engines and scooters to specialty sports cars, from fuel-sipping hybrids, spacious minivans,
reliable family sedans, rugged SUVs to even a pickup; Honda's lineup runs the gamut.
HONDA NETWORK IN INDIA:

HONDA NETWORK
Honda Motorcycle & Scooter India (Private) Ltd
Honda Siel Cars India Ltd
Honda Siel Power Products Ltd.
Honda R&D (India) Private Limited
Hero Honda Motors Ltd.
TATA Yutaka Autocomp Pvt. Ltd
Goshi India Auto Parts Private Limited
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Joint venture between Honda and Siel Ltd– Honda Siel Cars India Ltd (HSCI), was established
in December 1995, to manufacture its passenger cars in India. The company is ISO 9002 & ISO
14001 certified and a top player in luxury car segment. The initial installed capacity of the plant
was 30,000 cars per annum which has recently been increased to 100,000 cars. Currently, the
plant is being run on two shifts. HSCI is now setting up its second manufacturing plant in
Bhiwadi, Rajasthan.
The company invested 7.8 billion in Bhiwadi for its second production plant with an annual
production capacity of 50,000 units.

It operates under the ISO 9001 standard for quality
management and ISO 14001 for environment management.
HCIL has 152 dealerships across 98 cities in 20 states and 3 Union Territories of India. It sold
55,884 units during the period April '09 - February '10 as against 45,052 units during the same
period a year ago, recording an increase of over 24%. Honda jazz is known as Honda fit in other
countries.







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Name of the Company Honda Siel Cars India Ltd
CEO & President Mr. M Takedagawa
Established on 5
th
December 1995
Location of Unit
Plot No. A-1, Sector 40/41
Surajpur-Kasna Road
Greater Noida Industrial Development Area
Capital – Paid Up Rs. 3600 Million
Equity Share Capital
Honda Motors, Japan: 99%
Siel Ltd: 1% (Current)
Investment Rs. 16200 Million
Installed Capacity 100,000 Units per Annum (2 shift basis)
Production Commencement 15
th
December, 1997
Indigenization %
Dec ’97 - 57% (Startup)
July ’05 – 82 %
No. of Associates 3500+
Total Land Area 150 Acres (Approx.)
Product Range
Honda City- EXi, GXi, CVT and VTEC
Civic- 1.8S & 1.8V (A/T & M/T)
Accord- 2.0L 2 WD and 2.4L 4WD
CR-V- 2.0L 2 WD and 2.4L 4WD



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HONDA PHILOSOPHY
The driving force behind Honda’s growth was the leadership of its founders-Mr.Soichiro
Honda and Mr. Takeo Fujisawa. The most valuable legacy which they gave to their company is
the Honda philosophy. This Honda philosophy continues to serve as the basis of its daily
business actions and judgment for all companies and associates within the Honda Group.
Structure of Honda Philosophy
The Honda Company Principle
Our
Fundamental
Beliefs
Honda
Management
Policies
The purpose and reason
for existence of the Honda group
The center of the
philosophy for the
Honda group
Guideline for associate
in the performance
of their daily responsibilities
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THE HONDA COMPANY PRINCIPLE
The Honda Company Principle states the ultimate goal of Honda’s global activities – the reason
why Honda conducts its business.
―Maintaining a global viewpoint, we are dedicated to supplying products of highest quality yet at
a reasonable price for World-wide customer satisfaction.‖
FUNDAMENTAL BELIEFS
The center of Honda’s corporate philosophy is the Company Principle which was written in
1956. Underlying the company principle are two fundamental beliefs:
1. THE THREE JOYS: Each person coming in touch with Honda should share a sense of
joy through that experience. This feeling is expressed well in what is called in Honda as
―The Three Joys‖. The goal is to provide joy through business for those who buy, sell or
are involved in the creation of its products.
A) JOY OF BUYING:
 Achieved by providing products and services that exceed the needs and
expectations of each customer.
 It is essentially establishment of relationship with customers initiated
through sales and service experience.
B) JOY OF CREATING:
 Occurs when Honda associates involved in the creation of products
recognize a sense of joy in customers and dealers
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 By creating quality products which exceed expectations.
 All associates experience pride in a job well done.
C) JOY OF SELLING:
 Occurs when sales and service associates develop relationships with
customers based on mutual trust.
 Associates and dealers experience pride in associating with Honda and
representing Honda Products to customers.

2. RESPECT FOR ALL INDIVIDUAL: Each individual is unique and has the capacity to
think reason and create, and the ability to dream. It recognizes the following core
concepts:
A. INITIATIVE
 Not to be bound by preconceived notions.
 Think creatively and act on your initiative and judgment.
 Take responsibility for the results of your action.
B. EQUALITY
 Recognize and respect individual differences.
 Treat each other fairly.
 Create equal opportunities for each individual.
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 An individual’s race, age, sex, religion, national origin, educational
background, socio-economic status should not determine his
opportunities.

C. TRUST
 Relationship among Honda associates should be based on mutual trust.
 Trust is created by recognizing each other as individuals, helping
others, accepting help from others and sharing our knowledge and
making sincere efforts to fulfill our responsibilities.
3. HONDA MANAGEMENT POLICIES
1. Proceed always with Ambition and Youthfulness.
2. Respect Sound Theories, Develop Fresh Ideas and make the Most Effective Use of Time.
3. Enjoy Your Work and Encourage Open Communication.
4. Strive Constantly For A Harmonious Flow Of Work.
5. Be Ever Mindful Of the Value of Research and Endeavor.






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ORGANISATION
STRUCTURE











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ORGANISATION STRUCTURE

1. BOARD OF DIRECTORS

HONDA (6 MEMBERS):
- President and CEO
- VP and Director (Works)
- Director (Finance and Accounts)
- Director (Materials)
- Director (Marketing)
- Director

SIEL LTD. (2 MEMBERS):
- Chairman
- VP and Director (Admin.)






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2. ORGANIZATION STRUCTURE OF HR DEPARTMENT








OPERATING HEAD
DIVISION HEAD
DEPARTMENT HEAD
SECTION HEAD
SR. EXECUTIVES
/ EXECUTIVES
Rajdeep
Tripathy
Sr. Exec
Smeeksha
Chadha
Sr. Exec
Vineet
Beniwal
Sr. Exec
Payal Guha
Thakurta
Exec
Misha
Sharma
Exec
Saadi Alvi
Exec
Shailja
Arya
ET
Raman Kr Sharma
VP & Director
Sunil Ranjhan
DGM
Anu Mehta
M II
Jitender
Teckchandani
DM
Priya Singh
AM
Sonam
Bhalla
ET
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3. HSCI LAYOUT
DIVISIONS
MANUFACTURING:




















DEPARTMENTS
PPC: Production Planning and Control.
Imports: Logistics Planning and clearance of
imports.
Material Service: Receipt of parts on line.
Weld Shop: Welding of parts onto the white body.
Paint Shop: Surface treatment and painting of white
body and bumpers.
Engine Assembly: Assembly and testing of engines
manufactured.
Final Assembly: Manufacture of complete car unit
with all assemblies and subassemblies after receiving
painted body from Paint Shop.
Vehicle Quality: Finished product checked for
quality.
Parts Quality: To ensure quality of local parts.
Material Quality: Material testing and calibration of
equipments.
Production Administration: Training, Safety,
Administration activities of manufacturing division.
Utility: Operation and Maintenance of utilities and
civil structure
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QUALITY:


FINANCE & ACCOUNTS:







INFORMATION TECHNOLOGY

AFTER SALES








Quality Engineering: Study / Control of drawings /
specifications, Product development and
Homologation.
Finance: Financial planning, arrangement and
monitoring of funds, day to day banking etc
Accounts: Maintaining the books of accounts,
finalization of Balance sheet.
Costing: Maintenance of cost records, budget
variances etc.
Excise & Tax: Filing & filling of returns and
assessment of cases.
Information Technology: Maintenance and updation
of website / webmail etc., software development,
Service & CRM: Provides service to customers so as
to maintain the reliability of product and build long
term relationship with customer.
Parts: Strategic planning of spare partsSales: Monitor
the daily sales volume, targets set & achieved, etc.
Dealer Development: Infrastructure development
and maintenance, dealer audit etc.
Commercial: Deals with vehicle dispatch and
activities thereon

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MARKETING




ADMINISTRATION
















Marketing: Consists of activities like advertising,
sales promotion, event management, merchandising,
market research, product planning and public
relations.
.
Administration: Provides administrative support to
the organization which includes transportation,
uniform, security, canteen etc.
HR: Performs activities like manpower planning,
recruitment and selection, performance management,
training and development etc.
AR: Personnel functions for line associates,
attendance, payroll management and compliance to
labour laws.
CS & Legal: Looks after compliance with legal and
company laws.
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PRODUCT
PERFORMANCE










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PRODUCT PERFORMANCE
The first generation Today was introduced in September 1985 as a three-door hatchback, on
a wheelbase of 2,330 mm (91.7 in). The Today was initially launched with three different model
specifications, with the entry model being model 'F', followed by a model 'M' and the top of the
range 'G'. The Today was only intended for the Japanese domestic market. It was introduced at
newly established Japanese dealerships called Honda Primo locations alongside
the Primo "headliner" sedan, the Honda Civic. The flat roof hatchback design appearance was
shared with the incrementally larger supermini Honda City, the subcompact Honda Civic, and
the compact Honda Accord AeroDeck. Originally available with either a four-speed manual or a
three-speed automatic, it was powered by a water-cooled two-cylinder Honda EH series OHC
545 cc engine - the same as used in the Acty kei truck.In a market where three-cylinder engines
were the norm, this unit was outdated and was replaced by a three-cylinder four-valve 547 cc by
February 1988. The rear axle was a torsion beam with coil springs. Together with the new
regulations in March, 1990 the bumpers were enlarged to give the car a length of 3,295 mm
(129.7 in), and the engine was enlarged to 656 cc. By April 1990, came a permanent four-wheel
drive version with an independent rear axle.
In January 1993, a redesigned Honda Today was announced. The car did not have ahatchback; in
its place was a trunk lid that opened downwards to form a tailgate, like the 1991 Civic three-door
(the Today's rear window does not open). The interior is not symmetrical: the driver's seat is
slightly larger than the front passenger seat. These features were decided on after research
indicated that the car's target audience were mostly single young women who often drove alone,
with little need for cargo space. Initially only available as a two-door, in May 1993 a four-door
version was added, named the Today Associe.
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The 1993 Today was available with two engines, a standard 656 cc three-cylinder fuel engine,
and a high output version of the same engine with MTREC technology, borrowed from
the Honda Beat. Both engines were available with either a five-speed manual or a three-
speed automatic gearbox. All wheel drive (using realtime 4WD technology) was available with
the Q trim level.
For the Today's early-1996 facelift, Honda eliminated the tailgate rear door, and replaced it with
a traditional hatchback door. This necessitated some redesign in the rear end, because the rear
window had originally wrapped around to the sides. One characteristic shared with both
generations was the use of only one windshield wiper arm for the front windshield due to the
vehicles small dimensions.
In light of the Suzuki Wagon R's success, Honda decided to introduce a modern version of its
1970s Honda Life "Step Van" micro van, and reintroduced the Honda Life model name in 1997.
When the kei car regulations changed in October 1998, necessitating a redesign, the Life
received a redesign, while the Today, which was a modern interpretation of the first Honda Life
three-door hatchback, was discontinued.
The Honda Today featured frequently in Kōsuke Fujishima's anime and manga "You're Under
Arrest!" as the main transport for the lead characters. The vehicle featured was a highly
personalized minipato (police mini patrol car) with modifications such as nitrous oxide, turbo
and others, and with a Motocompo folding bike stowed in the back compartment.The Honda
Today is also featured in Gran Turismo 4.

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Honda of the UK Manufacturing Ltd. (informally HUM) is a United Kingdom-based
manufacturing subsidiary of the multinational automotive company Honda. HUM operates a
number of manufacturing plants at a site in Swindon, which include casting, engine assembly,
pressing, welding, painting and car assembly activities.[1] HUM employs around 3,400 people at
the plants, which occupy a site covering around 370 acres.[2] Honda has made a total investment
of £1.38 billion in the Swindon plants.[2] In 2008 the Swindon site produced 230,423 cars.
Honda's decision to invest in production facilities in Swindon came as a result of Honda's
collaboration with Rover Group, which started in 1979. HUM was established in 1985 and
production at the engine plant began in 1989. In 1992 production of the Honda Accord began in
Swindon, and a second engine line was installed.[1] In 1994 production of the Honda
Civic began in Swindon. In August 2000 it was revealed that UK-manufactured Honda cars
would be exported to Japan for the first time.
HUM opened a second car assembly plant in Swindon in September 2001, creating an additional
200 jobs at the site. In December 2001 workers at the Swindon plants voted to form a union and
be represented by the Amalgamated Engineering and Electrical Union.

In 2002 production of the
Honda Accord ended at Swindon, and in October of that year Ken Keir, the then managing
director of HUM, stated that Honda would maintain vehicle production in the UK irrespective of
whether or not it joined the Eurozone.
In September 2006, it was announced that Honda would be recruiting an additional 700 workers
for the Swindon plants, and raising production of vehicles at the site by 32% to 250,000.

In
February 2008 it was announced that Honda would be making an £80 million investment in new
production facilities at the Swindon site for the manufacture of plastic car parts and metal
castings for engines
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On 30 January 2009, it was announced that workers at the Swindon site would be laid off for
four months until 1 June, with full-pay for the first two months of the period and about half-pay
for the remainder. In October 2009 HUM began production of the Honda Jazz.
In September 2012, Honda announced a £267 million investment programme the Swindon site,
to support the introduction of new models of the Civic and CR-V and a new 1.6-litre diesel
engine.The investment will take total investment at the site to around £1.5 billion and will
increase the workforce to 3,500
HCIL produces the following vehicles in India for local and export markets
1. Honda City (Launched 1998)
2. Honda Accord (Launched 2001)
3. Honda Civic (Launched 2006, Production discontinued in 2012
4. Honda Jazz (Launched 2009, Production temporarily discontinued in early 2013 in
anticipation of all-new model)
5. Honda Brio (Launched 2011)
6. Honda CR-V (Imported since 2003; 2013 model locally assembled)
7. Honda amaze <family sedan> (launched April 2013)




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1. HONDA CITY
The first generation Honda City was a subcompact car manufactured by the Japanese
manufacturer Honda from 1981. Originally made for the Japanese, European and Australasian
markets, the City was retired in 1994 after the second generation.

The nameplate was revived in 1996 for use on a series of compact four-door sedans aimed
primarily at developing markets, first mainly sold in Asia outside of Japan but later also in Latin
America and Australia. From 2002 to 2008, the City was also sold as the Honda Fit Aria in
Japan. It is a subcompact sedan built on Honda's Global Small Car platform, which it shares with
the Fit/Jazz (a five-door hatchback), the Airwave/Partner (a wagon/panel van version of the Fit
Aria/City), the Mobilio, and the Mobilio Spike—all of which share the location of the fuel tank
under the front seats rather than rear seats. By mid-2009, cumulative sales of the City has
exceeded 1.2 million units in 45 countries around the world since the nameplate was revived in
1996

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2. HONDA ACCORD
The Honda Accord /əˈkɔrd/ is a series of automobiles manufactured by Honda since 1976, best
known for its four-door sedan variant which has been one of the best-selling cars in the United
States since 1989. The Accord nameplate has been applied to a variety of vehicles worldwide,
including coupes, wagons, hatchbacks and a crossover.

In 1982, the Accord became the first car from a Japanese manufacturer to be produced in the
United States when production commenced in Marysville, Ohio at Honda's Marysville Auto
Plant. The Accord has achieved considerable success, especially in the United States, where it
was the best-selling Japanese car for fifteen years (1982–97), topping its class in sales in 1991
and 2001, with around ten million vehicles sold.
[1]
Numerous road tests, past and present, rate the
Accord as one of the world's most reliable vehicles. The Accord has been on the Car and Driver
10Best list over 26 times.
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Since initiation, Honda has offered several different car body styles and versions of the Accord,
and often vehicles marketed under the Accord nameplate concurrently in different regions differ
quite substantially. It debuted in 1976 as a compact hatchback, though this style only lasted
through 1981, as the line-up was expanded to include a sedan, coupé, and wagon. By the
Accord's sixth generation in the 1990s, it evolved into an intermediate vehicle, with one basic
platform but with different bodies and proportions to increase its competitiveness against its
rivals in different international markets. For the eighth generation of the Accord released for the
North America market in 2008, Honda had again chosen to move the model further up-scale and
increase its size.

This pushed the Accord sedan from the upper limit of what the U.S.
Environmental Protection Agency (EPA) defines as a mid-size car to just above the lower limit
of a full-size car,[4] with the coupe still rated as a mid-size car. The current ninth generation
Accord for the North America market is again classified as a mid-size car, falls just short of full-
size car classification with the combined interior space of 119 square feet (11.1 m
2
)









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3. HONDA CIVIC

The Honda Civic is a line of subcompact and subsequently compact cars made and
manufactured by Honda. The Civic, along with the Accord and Prelude, comprised Honda's
vehicles sold in North America until the 1990s, when the model lineup was expanded. Having
gone through several generational changes, the Civic has become larger and more up market, and
it currently slots between the Fit and Accord.
It was introduced in July 1972 as a two-door model, followed by a three-door hatchback that
September. With the transverse engine mounting of its 1169 cc engine and front-wheel drive like
the British Mini, the car provided good interior space despite overall small dimensions. Early
models of the Civic typically included a basic AM radio, heater, foam-cushioned plastic trim,
two-speed wipers, and painted steel rims with a chromed wheel nut cap. As the years went by, it
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has become much more upscale with options such as air conditioning, power locks, power
windows, leather upholstery, satellite-linked navigation, and a six-speed manual transmission.
Initially gaining a reputation for being fuel-efficient, reliable, and environmentally friendly, later
iterations have become known for performance and sportiness, especially the Civic Type-R,
Civic VTi, Civic GTi and Civic SiR.
The Civic has been rebadged for international markets with such models as the Honda
Ballade which became the British Leyland-produced Triumph Acclaim in Britain and Honda
Domani/Acura EL. The Civic platform also served as the basis for the Honda, the Honda CR-X
del Sol, the Honda Concerto, the first generation Honda Prelude, the Honda Civic Shuttle (later
to become the Honda Orthia), and the Honda CR-V. Starting in 1985 until 2006, the Civic was
dedicated to Japanese dealership Honda Primo, with Civic variants sold at Honda Clio,
and Honda Verno locations.
As of 2006, a total of 16.5 million Civics had been sold worldwide, with 7.3 million of them in
the United States.

By 2012, Civic has been the top-selling car in Canada for 14 years. With high
gas prices and a weak economy in June 2008, the Civic supplanted the Ford F-Series to become
the top-selling vehicle in the United States for that month.
In Japan, production of non-hybrid Civic for domestic market ended in August 2010 and
production of Civic hybrid for home market ended in December 2010. In recent years, customers
shifted to minivans and compact cars like Honda Fit. Honda launched Fit hybrid in October in
Japan. However, production of Civic and Civic hybrid for export markets will continue.


23

4. HONDA JAZZ
The Honda Fit, also known as the Honda Jazz, is a subcompact car produced by the Japanese
manufacturer Honda from 2001 to present. It was first introduced in June 2001 and is now in its
second generation. The name "Jazz" is used in Europe, Oceania, the Middle East, Africa,
Australia and most parts of Asia, while the name "Fit" is used in Japan, China and the Americas.
Marketed worldwide and manufactured at ten plants in eight countries,
[1]
its sales exceeded 3.5
million by July 2010. It shares Honda's global small car platform with several other models of
the manufacturer: City, Airwave, Mobilio, Mobilio Spike,Freed and Freed Spike.
Honda released hybrid gasoline-electric versions of the Fit in Japan in October 2010 and in
Europe in early 2011. The Honda Fit EV, a limited production all-electric version, was released
in the United States in July 2012.

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5. HONDA BRIO

The Brio prototype was first shown at 2010 Thailand International Motor Show. The car is
developed to position in a class below Honda for emerging markets. The initial markets were
Thailand and India. The Brio's market expanded when it was launched in South Africa in
December 2012.
[5]
The car is designed as a commuter with Honda's "man maximum, machine
minimum" principle. Unique versions are developed for the Thai and Indian markets
respectively.




25

6. HONDA CR-V
The Honda CR-V is a compact SUV (now called crossover in North America), manufactured
since 1995 by Honda. It was loosely derived from the Honda Civic. There are discrepancies as to
what "CR-V" stands for, Honda sales literature in UK reportedly made references to "Compact
Recreational Vehicle", other Honda references (including the official Honda Japan CR-V Fact
Book

and Honda Worldwide
)
cite "Comfortable Runabout Vehicle". It is produced in both four-
wheel drive and front-wheel drive, with availability differing by market.

Honda began producing the CR-V in Sayama, Japan, and Swindon, UK, for worldwide markets,
adding North American manufacturing sites in East Liberty, Ohio, in 2007; El Salto, Jalisco,
Mexico, in late 2007; and Alliston, Ontario, Canada, in 2012. The CR-V also is produced
26

in Wuhan (Hubei province) for the Chinese market by the Dongfeng Honda Automobile
Company, a joint venture with Dongfeng Motor Corporation.
The CR-V is Honda's smallest SUV other than the related Element sold in Canada and the
United States, and the HR-V sold in Europe. In size, the CR-V slots between
the Element and Pilot, but due to the Element's discontinuation during the 2011 model year, the
CR-V has regained its status as Honda's entry-level SUV.














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7. HONDA AMAZE
The Honda Amaze is a four-door subcompact sedan produced by Honda. The Amaze is the
sedan version of the Brio. Honda launched the Amaze in India on April 11, 2013 which has been
developed at Honda R&D Asia Pacific Co., Ltd. located in Bangkok, Thailand. The Amaze is
available in petrol and diesel engine.

The Amaze is being manufactured at the company’s facility in Greater Noida, with a localization
level of more than 90%.
The Amaze will be a significant step for the company in India as it will be its first diesel car in
India. The car will also be available with the 1.2 L (73 cu in) L12B i-VTEC petrol engine that is
used in the Jazz and Brio hatchbacks.
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Apart from being the company’s first diesel car in India, the Amaze will also be slotted in that
lucrative sub 4-meter entry-level sedan segment, where it will compete against the Maruti Suzuki
Swift DZire and the Tata Indigo eCS.
Honda has put a new India specific 1.3 L (79 cu in) oil burner on the Amaze. This engine gets
the i-DTEC moniker and it is a derivative of the new 1.6 L (98 cu in) Civic diesel engine that just
got launched in Europe recently. This India specific derivate was created to get around
excise/taxation rules which offer a favorable tax regime for cars of sub 4-meter cars with engines
of less than 1.5 L (92 cu in) capacity. This is an all-aluminum engine and Honda also claims it to
be the lightest.










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AWARDS WON BY HONDA
 Best Indian Company (unlisted) by Business Standard Group
 Manufacturer of the Year by NDTV Profit-Car India
 Manufacturer of the Year by CNBC-TV 18 Autocar India
 No 1 Mid Size Car (Honda City); No 1 Entry Luxury Car (Honda Accord) and No 1
Premium SUV (Honda CR-V) by TNS
 Best Mid-size Car in Initial Quality (Honda City) and Most Appealing Mid-size car (Honda
City) by JD Power
 CNBC Autocar CAR of the year 2004 - Honda City
 ICICI Overdrive SUV of the Year 2004 - Honda CR-V
 ICICI Overdrive Car of the Year 2004 - Honda City
 Business Standard Motoring Car of the Year 2004 - Honda City










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RESEARCH
METHODOLOGY









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RESEARCH METHODOLOGY
Proper research is essential to carry out any project, but selecting the right methodology for the
particular project is absolutely indispensable.
My project report is based on how communication can be used as an effective tool in
performance appraisal process. For doing my research, I interviewed various employees of
HSCI. I asked them about their understanding, their satisfaction levels and familiarity with the
current appraisal process. I have also done the SWOT analysis of the HSCI's performance
appraisal process. On the basis of my study and analysis I have also given some
recommendations towards the improvement of performance appraisal process followed in HSCI.
TITLE OF THE PROJECT
Communication in Performance Management System
OBJECTIVE OF THE PROJECT
The primary objective of my project report is
1. To study performance management at HSCI.
2. To identify the main problem areas from the point of view of its employees.
3. To analyze if effective use of communication can help in enhancing employee
satisfaction and hence in better talent management and also curb problems like high
attrition.



32

The step-wise break down of the project is:
STEP 1: Examine the performance management system in HCII.
STEP 2: Scrutinize it to assess where the probable snag(s) could lie.
STEP 3: Frame a list of unambiguous questions to be put to the employees. This is necessary so
as to enable the employees to answer the questions without any uncertainty. The responses thus
collected from the employees would be relevant and would help in churning out the right
analysis.
STEP 4: Analysis based on the collated replies of the employees.
STEP 5: Findings based on the analysis done
STEP 6: Conclusion on the basis of the findings








33

PERFORMANCE MANAGEMENT AT HCIL
Performance management (PM) includes activities which ensure that goals are consistently
being met in an effective and efficient manner. Performance management can focus on the
performance of an organization, a department, employee, or even the processes to build a
product of service, as well as many other areas.
PM is also known as a process by which organizations align their resources, systems and
employees to strategic objectives and priorities.
Performance management as referenced on this page in a broad term coined by Dr. Aubrey
Daniels in the late 1970s to describe a technology (i.e. science imbedded in applications
methods) for managing both behavior and results, two critical elements of what is known as
performance.
This is used most often in the workplace, can apply wherever people interact — schools,
churches, community meetings, sports teams, health setting, governmental agencies, social
events and even political settings - anywhere in the world people interact with their environments
to produce desired effects. Armstrong and Baron (1998) defined it as a ―strategic and integrated
approach to increase the effectiveness of companies by improving the performance of the people
who work in them and by developing the capabilities of teams and individual contributors.‖
It may be possible to get all employees to reconcile personal goals with organizational goals and
increase productivity and profitability of an organization using this process. It can be applied by
organizations or a single department or section inside an organization, as well as an individual
person. The performance process is appropriately named the self-propelled performance process
(SPPP).
34

First, a commitment analysis must be done where a job mission statement is drawn up for each
job. The job mission statement is a job definition in terms of purpose, customers, product and
scope. The aim with this analysis is to determine the continuous key objectives and performance
standards for each job position.
Following the commitment analysis is the work analysis of a particular job in terms of the
reporting structure and job description. If a job description is not available, then a systems
analysis can be done to draw up a job description. The aim with this analysis is to determine the
continuous critical objectives and performance standards for each job.
Managing employee or system performance and aligning their objectives facilitates the effective
delivery of strategic and operational goals. Some proponents argue that there is a clear and
immediate correlation between using performance management programs or software and
improved business and organizational results. In the public sector, the effects of performance
management systems have differed from positive to negative, suggesting that differences in the
characteristics of performance management systems and the contexts into which they are
implemented play an important role to the success or failure of performance management. For
employee performance management, using integrated software, rather than a spreadsheet based
recording system, may deliver a significant return on investment through a range of direct and
indirect sales benefits, operational efficiency benefits and by unlocking the latent potential in
every employees work day (i.e. the time they spend not actually doing their job).
In organizational development (OD), performance can be thought of as Actual Results vs
Desired Results. Any discrepancy, where Actual is less than Desired, could constitute the
performance improvement zone. Performance management and improvement can be thought of
as a cycle:
35

1. Performance planning where goals and objectives are established
2. Performance coaching where a manager intervenes to give feedback and adjust
performance
3. Performance appraisal where individual performance is formally documented and
feedback delivered
A performance problem is any gap between Desired Results and Actual Results. Performance
improvement is any effort targeted at closing the gap between Actual Results and Desired
Results.
Other organizational development definitions are slightly different. The U.S. Office of Personnel
Management (OPM) indicates that Performance Management consists of a system or process
whereby:
1. Work is planned and expectations are set
2. Performance of work is monitored
3. Staff ability to perform is developed and enhanced
4. Performance is rated or measured and the ratings summarized
5. Top performance is rewarded
Erica Olsen notes that "Many businesses, even those with well-made plans, fail to
implement their strategy. Their problem lies in ineffectively managing their employees
once their plan is in place. Sure, they've conducted surveys, collected data, gone on
management retreats to decide on their organization's direction-- even purchased
expensive software to manage their process-- but somewhere their plan fails.
36

Performance management and performance appraisals have a significant overlap. In general,
there are three type of performance management: long-cycle, short-cycle, and micro.
LONG-CYCLE PERFORMANCE MANAGEMENT:
Long-cycle Performance Management is usually done on an annual, every 6 months, or quarterly
basis. From implementations standpoint, this area is the one that has traditionally received the
most attention. This is so for historical reasons, as most performance management
techniques/styles predate use of computers.
SHORT-CYCLE PERFORMANCE MANAGEMENT:
Short-cycle Performance Management (which overlaps with principles of [Agile Software
Development]) is usually done on a weekly, by-weekly, or monthly basis.
]
From the
implementation standpoint, this sort of management is industry-specific.
MICRO PERFORMANCE MANAGEMENT:
Micro Performance management is generally done on a by-minute/hour/day basis.
In light of social and economic changes, the current workforce has undergone a major shift in
values, expectations, and tolerance. The employee of just 5 years ago is very different than the
employee of today. This new breed - the Emergent Employee - crosses all ages, races, genders,
and geographies, is quickly changing the way organizations attracts, develops, manages, and
retains top talent. Thus it becomes mandatory for an organization to monitor the entire life
cycle of an employee. An employee life cycle is what the employees go through from the time
they enter an organization till they leave.
Yearly, the employee is rewarded with a performance appraisal for his honest, efficient,
consistent and conscientious working and is also promoted to the next position so that he feels
37

more responsible, his morale increases and he strives to work harder. At various occasions, the
employees’ skills are developed through extensive training and workshops. It can also be used
as a tool to increase employee engagement.
Employee engagement is the level of commitment and involvement an employee has towards
the organization and its values. It is a positive attitude held by the employees towards the
organization. An engaged employee will always try to improve his performance for the benefit
of the organization. Organizations carry out yearly surveys to know and to measure the level of
employee engagement within the organization.
A high level of employee engagement within an organization would mean that the employees
are not only satisfied with their jobs but also are dedicatedly and faithfully working for the
organization, towards achieving the organization goals. Such an employee would not leave the
organization just because he is getting a better package in some other organization. He would
not part his way with the organization except if in case there are some circumstances which
could lead to such a situation. Thus employee engagement is also one of ways for employee
retention. Flexible scheduling, job sharing, telecommuting and compressed work hours etc are
few of the other techniques that companies follow to curb attrition.
Performance Management activities start right from the time a person is Recruited in an
organization in terms of target setting through unambiguously designed Job Descriptions, then
is the yearly performance review done via the Performance Appraisal activity. This review
must be fair, just and accurate so as to build employees’ trust in the system and to avoid any
sort of negative feelings in the minds of the employees. This will help increase employee
satisfaction and may also increase levels of Employee Engagement thus helping in Retention.
38








EMPLOYEE LIFE CYCLE
JOB DESCRIPTION
PERFORMANCE
APPRAISAL
EMPLOYEE
ENGAGEMENT
RETENTION
RECRUITMENT
39

RECRUITMENT IN HSCI
PROCESS FLOW DIAGRAM OF RECRUITMENT
FROM
 DATABASE
 JOB PORTAL
 CONSULTANTS
 REFERRALS
FROM
 HR
 DEPTT. HEAD
 DIVISIONAL HEAD
 VP / HOD ADMIN
CONDUCT IQ TEST
IF SELECTED
INTERVIEWS

SCHEDULING PRE-EMPLOYMENT MEDICAL EXAMINATION
IF SELECTED
IF SELECTED
DECIDING THE SALARY AND DESIGNATION

IF ACCEPTED
SEND LOI

JOINING
FORWARD CVs TO HOD


SHORTLISTED CVs BACK TO HR
SHORT LISTING

SEARCH CVs
RECEIPT OF MPR BY HR

40

Recruitment is a continuous process of searching the candidates for employment and stimulating
them to apply for jobs in the organization. It is the activity that links the employers to capable
candidates for employment. The process starts when new employees are requested for and the
end result is the selection in adequate numbers of an efficient working force. It also helps in
developing a database to meet the future human resource needs. It has to be done according to
the manpower budget, in the within the planned time interval. Recruitment needs can be of three
types: planned-those that we know of raising due to changes in policies etc, anticipated- those
that can be studied and analyzed according to trends and unexpected- arising out of death,
illness, unexpected resignation etc.
The recruitment process starts when a Man Power Requisition (MPR) is received by the
recruitment team in the HR department. A MPR is originally raised by the Head of the
Department for position that is vacant or soon will be. The raised MPR can be three types:
1. Budgeted: A budgeted MPR request signifies that the manpower requested for was
foreseen while making the present year’s manpower budget right in the beginning of the
year.
2. Additional: An additional MPR indicates that this manpower request has not been
included in the manpower budget, i.e. it is over and above the budget. It can be classified
as under unexpected need.
3. Replacement: A replacement MPR raised means that an existing employee has
unexpectedly resigned or due to some other reason is not working with the organization
and thus a substitute has to be found for the position lying vacant. Since the position is
generally critical, the time given to fill this requirement is very less.
41

After the MPR has been raised by the departmental HOD, it goes to the divisional head. The
Divisional Head approves of it if only he thinks that manpower is actually required at that
time. After getting approval from the Divisional Head, it goes to the HR Head for the next
level of approval. Once it gets approved from the HR Head, it gets allocated to the concerned
executive looking after recruitment for that division.
Next starts the search of finding the right candidate for the desired position. The CVs can be
sourced from various resources like databases, job portals, consultants, referrals or even
candidates who come in contact directly may be considered. From the sea of resumes, the ones
that fit our requirements are selected. They would be sent further up the level for further short
listing.
In the next step, the suitable CVs are sent to the departmental HOD for short listing. The
shortlisted CVs are then sent back the HR executive. The HR personnel then coordinates their
interview on the suitable date specified by the HOD. The day of the interview, the candidates
are given an IQ test. If only they pass the IQ test, their next round of interview with the
department head are conducted. On their selection their third round of interview with the
Divisional Head is coordinated. If he passes the third round, his fourth and final round of
interview with the HOD-HR or HR Divisional Head or VP & Director- Admin is coordinated.
The next day a pre-employment medical test is scheduled. Passing the pre-employment
medical test is a pre-requisite of employment in HSCI i.e. employment in the organization is
subject to the candidate’s passing the test. After clearing the test, next comes deciding the
salary and designation. The designation is decided purely on his qualifying educational
qualification and the number of years of experience he has had after completing his qualifying
42

education. There are age designed bands for every designation so as to maintain parity in the
organization.
Salary is also decided so as to not disturb the parity in the organization as Honda is a big
believer in equality. There are fixed salary bands pre-decided for each designation. Based on
their age, qualification, experience and current salary, the salary at HSCI is offered to the
candidate. The salary is non-negotiable as it has to lie between the specific salary band without
disturbing parity. The salary structure is based on the one in Honda, Japan offering Total Fixed
Increment as the salary to the candidate. It is not based on the concept of TCC currently
prevalent in the Indian market.
If the offered salary and designation are accepted by the candidate, his joining date is decided
upon and reference check done. Next, the Letter Of Intent is sent to the candidate to make the
offer formal and legal. The candidate has to send back an acceptance copy of the same to
confirm his employment. Finally on the decided date, his joining formalities are done.
43

JOB DESCRIPTION IN HSCI

PROCESS FLOW DIAGRAM OF JOB DESCRIPTION

COLLECT FORMS
STUDY THE FILLED IN JD FORMS

COMPARE WITH EXISTING
PUT FORWARD THE NEW JD STRUCTURE TO TOP MANAGEMENT

FORWARD RESPECTIVE FORMS TO ALL


CONDUCT THE JD EXERCISE
EXPLAIN THE PROCESS TO ALL EMPLOYEES TO AVOID AMBIGUITY

DECIDE ON THE PROCEDURE TO BE FOLLOWED
PREPARE A LIST OF ALL ASSOCIATES

COMMUNICATE THE REVISED JDs TO ALL
IF APPROVED
44

Job Description (JD) for a particular job is a written list of all the requirements that are
associated with the job. It specifies:
1. General tasks
2. Duties
3. Required qualifications of candidates
4. Functions
5. Responsibilities of a position
6. Whom the position reports to
7. Relationship with coworkers and with other positions
8. Salary range for the position
9. Conditions
10. Tools
11. Equipment used, etc
A job analysis exercise is carried out, which involves examining the sequence and the
importance of the tasks required to carry out a job. It is then analyzed to find out the
competencies and skills needed for that job. The result of this exercise helps in writing the job
description. Writing job descriptions is one of the most tedious but also one of the important
processes in the organization if equality and consistency in the organization are to be achieved
and maintained. Job descriptions must be updated as and when responsibilities and skills
45

necessary to perform the job change. JDs are very useful in recruitment, performance appraisals
and compensation management.
Before starting with the JD exercise, an updated list of all associates has to be prepared. Next the
procedure to be followed for carrying on the exercise has to be decided upon i.e. the procedure
that was followed last year can be used in the current year or a new methodology can be adopted.
Once that is done, finalized JD forms are forwarded to all employees. The process, procedure,
guidelines etc, all have to be explained to them so that they are able to fill out the Job
Description forms without any ambiguity and to the best of their knowledge. The form is divided
into columns each having a different head of so as to enable easy classification of their duties
and also to make the form more objective and self-explanatory.
The filled out forms are then collected and reviewed by the divisional head before forwarding the
same to the HR department for final analysis. After all forms have been collected, then starts the
real analysis of the filled in forms. They are compared with the existing job description of the
position and up gradations are made if they are relevant and necessary.
The new revised JD templates are then shown and discussed with the top management. If they
get approved, JDs are then formally revised and the same gets communicated to all the
employees.
46

EMPLOYEE ENGAGEMENT IN HSCI
PROCESS FLOW DIAGRAM OF EMPLOYEE ENGAGEMENT
W.R.T
 NEW JOINEES
 SALARY DETAILS
 EXPERIENCE
 AGE ETC.
COLLECT THE QUESTIONNAIRE
COMPILE RESULTS

ANALYSIS OF THE COMPILED RESULTS
RECOMMENDATION

EVALUATE THE RECOMMENDATIONS

IMPLEMENT RECOMMENDATIONS
EXPLAIN THE PROCEDURE TO FILL THE QUESTIONNAIRE
DISTRIBUTE THE QUESTIONNAIRE TO ALL

DESIGN THE QUESTIONNAIRE

PREPARE SURVEY METHODOLOGY
UPDATE THE LIST OF ALL EMPLOYEES IN DATABASSE

ON THE BASIS OF
 FEASIBILITY
 IMPORTANCE
 EXECUTABILIY
47

Employee engagement is the level of commitment and involvement an employee has towards
their organization and its values it is when the employee is physically, emotionally and
intellectually attached to their work and organization. An engaged employee is someone who is
committed, hard-working and passionate about what they do. While an organization would
always want to be associated with engaged employees and would try to create an environment
encouraging this, there are three factors that determine the employee’s level of engagement with
the organization.
1. The unique psychological makeup of each employee.
2. The organization’s ability to create an environment which promotes employee
engagement.
3. The level and the kind of interaction that exists between employees at all levels.
The employees can be classified on the basis of their levels of engagement as:
1. Engaged--Engaged employees want to know the expectations for their role so they can
meet and exceed them. They're curious about their company and their place in it. They
perform consistently at high levels. They use their talents and strengths at work every
day. They work with passion and they drive innovation and move their organization
forward.
2. Not Engaged---Not-engaged employees tend to concentrate on tasks rather than the goals
that they are expected to accomplish. They have to be told what to do just so they can do
it and say that they have finished it. Employees who are not-engaged end up feeling that
their contributions are being overlooked, and their potential is not being tapped. They
48

often feel this way because they don't have productive relationships at the workplace with
their managers or even with their co-workers.
3. Actively Disengaged--- An actively disengaged employee will be consistently against
everything. They're unhappy at work and are busy acting out their unhappiness. They
spread feeling of negativity at every opportunity. The problems and tensions that are
fostered by actively disengaged workers can cause great damage to an organization's
functioning.
To estimate the level of employee engagement in the organization, a survey is carried out
annually. This survey can be done in- house or a consultant can be hired to do the same. No
matter who does the survey, an updated list of all employees to be surveyed is prepared. The
next step is to decide the methodology to be adopted to conduct the survey. The methodology
can be on the bases of the survey conducted in the previous years, or a modified version of
that or if a consultant his doing the survey, the methodology suggested by the consultant will
have to be reviewed before its approval.
Next comes designing the questionnaire. The questionnaire should be such that the analysis of
the responses should not pose any kind of problem. It should be short, crisp, to the point,
objective, self - explanatory, clear, quantifiable and measurable. It should not in any case be
time consuming.
Once the questionnaire is designed, it is distributed to all employees but not before explaining
the steps and the procedure to everyone. A fixed time is given to all for returning the filled in
copies of the questionnaire. Once all the questionnaires are collected and the responses are
compiled, next step is the analysis.
49

If the survey is done in house, then it is the duty of the HR department to do the analysis. If not
then the consultant collects the complied results and puts across its analysis regarding the level
of employee engagement in the organization. On the basis of the analysis, recommendations to
improve employee engagement in the organization are made. The recommendations are then
evaluated on the basis of feasibility, importance and excitability of the recommendation.


















50

RETENTION IN HSCI
PROCESS FLOW DIAGRAM OF EXIT
COUNTERMEASURE PLANNING BY HR

FORM PROPERLY SIGNED BY HOD RETURNED TO HR DEPARTMENT


DEPARTMENTAL ANALYSIS OF EXITS BY HRD DONE ON A QUARTERLY BASIS
FEEDBACK ON THE EMPLOYEE BY CONCERNED HOD
ANALYSIS OF EXIT INTERVIEW COMMENTS BY HR AND HOD
HR CONDUCTS EXIT INTERVIEW

EMPLOYEE FILLS IN THE EXIT FORM

51

Employee retention can be defined as a process in which the employees are encouraged to
remain with the organization for the maximum period of time or until the completion of the
project. Employee retention is beneficial for the organization as well as the employee. The
retention of employees is one of the biggest challenges being faced by organizations in India
today. This threat has been posed by the opening of the economy, which is providing tremendous
opportunities for employment to the deserving candidates. Organizations are devising various
strategies to attract and retain competent and valuable employees.
While an attrition rate of 10 ~ 12 % is acceptable as it allows fresh ideas to enter in the
organization, but for long term success, an organization needs more than half of its employees to
stay for a relatively long period of time.
Employees here go through a strict selection process which ensures good quality of workforce.
The training provided here along with Honda’s brand name, makes the employees very attractive
prospective candidates to other organizations. Due to this curbing the growing attrition rate by
retaining the key employees has become a very important task in HSCI. Retention basically
depends on five things
1. Compensation
2. Relationship
3. Growth
4. Environment
5. Performance evaluation
52

Also every time an employee gives his resignation, he undergoes an exit interview. The main
purpose of conducting an exit interview is to know the main reason behind the employee’s
decision to quit. Along with the interview he also has to fill in an exit interview form. The form
is designed so as to understand his point of view and his understanding of the organization. This
also serves as a written record at the time of exit analysis which is done frequently.
Thus, the HR coordinates and conducts the exit interview of the employee with the Head of the
Department. The interview is then analyzed by both the parties and relevant feedback is given to
the employee by the concerned HOD. The employee then goes on to fill the exit interview form
and submits it to the HR duly signed by the HOD. All the exits in one particular department are
compiled together and then their analysis is done. Based on the analysis, new retention strategies
and countermeasures to curb attrition can be formalized.
53

PERFORMANCE APPRAISAL IN HSCI
A performance appraisal (PA), performance review, performance evaluation,

(career)
development discussion,

or employee appraisal is a method by which the job performance of
an employee is evaluated. Performance appraisals are a part of development and consist of
regular reviews of employee performance within organizations.
A performance appraisal is a systematic and periodic process that assesses an individual
employee’s job performance and productivity in relation to certain pre-established criteria and
organizational objectives. Other aspects of individual employees are considered as well, such
as organizational citizenship behavior, accomplishments, potential for future improvement,
strengths and weaknesses, etc. To collect PA data, there are three main methods: objective
production, personnel, and judgmental evaluation. Judgmental evaluations are the most
commonly used with a large variety of evaluation methods.Historically, PA has been conducted
annually (long-cycle appraisals), however many companies are moving towards shorter cycles
(every six months, every quarter), and some have been moving into short-cycle (weekly, bi-
weekly) PA .

The interview could function as ―providing feedback to employees, counseling and
developing employees, and conveying and discussing compensation, job status, or disciplinary
decisions‖. PA is often included in performance management systems. PA helps the subordinate
answer two key questions; first, "What are your expectations of me?" second, "How am I doing
to meet your expectations?" Performance management systems are employed ―to manage and
align" all of an organization's resources in order to achieve highest possible performance. ―How
performance is managed in an organization determines to a large extent the success or failure of
the organization. Therefore, improving PA for everyone should be among the highest priorities
of contemporary‖ organizations.
54

Some applications of PA are compensation, performance improvement, promotions, termination,
test validation, and more. While there are many potential benefits of PA, there are also some
potential drawbacks. For example, PA can help facilitate management-employee
communication; however, PA may result in legal issues if not executed appropriately

as many
employees tend to be unsatisfied with the PA process.

PAs created in and determined as useful in
the United States are not necessarily able to be transferable cross-culturally.
A central reason for the utilization of performance appraisals (PAs) is performance improvement
(―initially at the level of the individual employee, and ultimately at the level of the
organization‖). Other fundamental reasons include ―as a basis for employment decisions (e.g.
promotions, terminations, transfers), as criteria in research (e.g. test validation), to aid with
communication (e.g. allowing employees to know how they are doing and organizational
expectations), to establish personal objectives for training‖ programs, for transmission of
objective feedback for personal development, ―as a means of documentation to aid in keeping
track of decisions and legal requirements‖

and in wage and salary administration. Additionally,
PAs can aid in the formulation of job criteria and selection of individuals ―who are best suited to
perform the required organizational tasks‖.

A PA can be part of guiding and monitoring
employee career development. PAs can also be used to aid in work motivation through the use
of reward systems.
Here are a number of potential benefits of organizational performance management conducting
formal performance appraisals (PAs). There has been a general consensus in the belief that PAs
lead to positive implications of organizations. Furthermore, PAs can benefit an organization’s
effectiveness. One way is PAs can often lead to giving individual workers feedback about their
55

job performance. From this may spawn several potential benefits such as the individual workers
becoming more productive.
Other potential benefits include:
 Facilitation of communication: communication in organizations is considered an essential
function of worker motivation. It has been proposed that feedback from PAs aid in
minimizing employees’ perceptions of uncertainty. Fundamentally, feedback and
management-employee communication can serve as a guide in job performance.
 Enhancement of employee focus through promoting trust: behaviors, thoughts, and/or
issues may distract employees from their work, and trust issues may be among these
distracting factors. Such factors that consume psychological energy can lower job
performance and cause workers to lose sight of organizational goals. Properly constructed
and utilized PAs have the ability to lower distracting factors and encourage trust within
the organization.
 Goal setting and desired performance reinforcement: organizations find it efficient to
match individual worker’s goals and performance with organizational goals. PAs provide
room for discussion in the collaboration of these individual and organizational goals.

Collaboration can also be advantageous by resulting in employee acceptance and
satisfaction of appraisal results.
 Performance improvement: well constructed PAs can be valuable tools for
communication with employees as pertaining to how their job performance stands with
organizational expectations. ―At the organizational level, numerous studies have reported
positive relationships between human resource management (HRM) practices"

and
performance improvement at both the individual and organizational levels.
56

 Determination of training needs: ―Employee training and development are crucial
components in helping an organization achieve strategic initiatives‖.

It has been argued
that for PAs to truly be effective, post-appraisal opportunities for training and
development in problem areas, as determined by the appraisal, must be offered.

PAs can
especially be instrumental for identifying training needs of new employees. Finally, PAs
can help in the establishment and supervision of employees’ career goals
Despite all the potential advantages of formal performance appraisals (PAs), there are also
potential drawbacks. It has been noted that determining the relationship between individual
job performance and organizational performance can be a difficult task.

Generally, there are
two overarching problems from which several complications spawn. One of the problems
with formal PAs is there can be detrimental effects to the organization(s) involved if the
appraisals are not used appropriately. The second problem with formal PAs is they can be
ineffective if the PA system does not correspond with the organizational culture and system.
Complications stemming from these issues are:
 Detrimental to quality improvement: it has been proposed that the use of PA systems
in organizations adversely affect organizations’ pursuits of quality performance. It is
believed by some scholars and practitioners that the use of PAs is more than
unnecessary if there is total quality management.
 Negative perceptions: ―Quite often, individuals have negative perceptions of PAs‖.

Receiving and/or the anticipation of receiving a PA can be uncomfortable and
distressful

and potentially cause ―tension between supervisors and subordinates‖ If
57

the person being appraised does not trust their employer, appraiser or believe that
they will benefit from the process it may become a "tick box" exercise.
 Errors: Performance appraisals should provide accurate and relevant ratings of an
employee’s performance as compared to pre-established criteria/goals (i.e.
organizational expectations).

Nevertheless, supervisors will sometimes rate
employees more favorably than that of their true performance in order to please the
employees and avoid conflict.

―Inflated ratings are a common malady associated
with formal" PA.
 Legal issues: when PAs are not carried out appropriately, legal issues could result
that place the organization at risk. PAs are used in organizational disciplinary
programs

as well as for promotional decisions within the organization. The improper
application and utilization of PAs can affect employees negatively and lead to legal
action against the organization.
 Performance goals: performance goals and PA systems are often used in association.
Negative outcomes concerning the organizations can result when goals are overly
challenging or overemphasized to the extent of affecting ethics, legal requirements,
or quality.

Moreover, challenging performance goals can impede on employees’
abilities to acquire necessary knowledge and skills.

Especially in the early stages of
training, it would be more beneficial to instruct employees on outcome goals than on
performance goals.
 Derail merit pay or performance-based pay: some researchers contend that the deficit
in merit pay and performance-based pay is linked to the fundamental issues stemming
from PA systems.
58

IMPROVING PERFORMANCE APPRAISALS
Although performance appraisals can be so easily biased, there are certain steps that can be
taken to improve the evaluations and reduce the margin of errors through the following:
 Training - Creating an awareness and acceptance in the people conducting the
appraisals that within a group of workers, they will find a wide range in difference of
skills and abilities.
 Providing Feedback to Raters - Trained raters provide managers who evaluated their
subordinates with feedback, including information on ratings from other managers.
This reduces leniency errors.
 Subordinate Participation - By allowing employee participation in the evaluation
process, there is employee-supervisor reciprocity in the discussion for any
discrepancies between self ratings and supervisor ratings, thus, increasing job
satisfaction and motivation






59

OPPOSITION TO PERFORMANCE APPRAISALS
Not everyone is in favor of formal performance appraisal systems. Many employees,
especially those most affected by such ratings are not very enthusiastic about them. There
are many critics of these appraisals including labor unions and managers.
LABOR UNIONS:
Labor unions represent nearly 14% of the U.S. workforce They require that seniority
rather than assessment of employee merit be taken as the basis for promotion. However,
length of job experience alone is no indication of the ability to perform a higher level
job. That is why senior people should be given the first opportunity for promotion, but
they must qualify for that promotion because of their abilities, not solely because of
length of service. Performance appraisals can provide a reliable basis for these decisions.
MANAGERS:
Managers who have had unsatisfactory experiences with inadequate or poorly designed
appraisal programs may be skeptical about their usefulness.
 Many managers do not like to play the role of a judge and be responsible for the
future of their subordinates.
 They are often uncomfortable about providing negative feedbacks to the
employees.
 This tendency can lead them to inflate their assessments of the workers’ job
performance, giving higher ratings than deserved.
 Performance appraisal is a formal, structured system of measuring and
evaluating an employee's job related behaviors and outcomes to discover how
60

and why the employee is presently performing on the job and how the
performance be improved. It is an organization wide management program that
provides a structured approach to communicate business strategy, establish a
shared understanding of what is to be achieved and how it is to be achieved,
facilitate management of self and others, measure and motivate performance,
both organizational and individual.
Measuring job performance is important because if you cannot measure it, then you cannot
improve it and no improvement translates to no growth for both the organization and the
individual. Also by measuring performance it becomes easy to differentiate between good
performers, average performers, and non performers. This differentiation help in rewarding
employees based on their performance.
Over the years, performance appraisal concept has become a mandatory practice in all
organizations. Performance appraisal system had begun as simple methods of income
justification. It was used to decide whether or not the salary of an individual employee was
justified or not. If an employee's performance was found to be less than the benchmark, a
pay cut would follow. On the other hand if their performance was better a pay rise was
given.
Traditionally, employees were compared against one another or one against many to rank
their performance. The employees were given some number that supposedly indicates
whether they are better than, about same, or less effective than their colleagues. This ranking
was often used to determine who will receive pay raises from a limited pool of money rather
than using it for people development. With the Ranking System it wasn't possible for
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everyone to be ranked as excellent or many employees to get the same rank even if their
performance were at the same level.
















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PROCESS OF APPRAISAL









Performance appraisal these days is future oriented with organizations using methods like
Management by Objectives (MBO), 360 degree appraisal, Psychological appraisal, Behaviorally
Anchored Rating Scales (BARS) and Assessment centers for appraisal. In HSCI, techniques like
Key Result Area (KRA), 360 degree feedback techniques are used. Methods like coaching and
mentoring are also used to improve employee performance. Also proposal for twice a year
review is also being implemented. By performing elaborate job description and KRA activities,
employees are made aware about the goals they have to achieve. At the time of performance
appraisals, employees fill up the self appraisal form which record what has been achieved in
terms of quality, quantity, cost, delivery and execution. Apart from this, the Head of
Department also gives his inputs about the employees’ performance.


USING APPRAISAL DATA FOR APPROPRIATE PURPOSES
PERFORMANCE APPRAISAL


PERFORMANCE COMMUNICATION
DESIGNING AN APPRAISAL PROGRAM

ESTABLISHING JOB EXPECTATIONS
DEFINE THE OBJECTIVES OF APPRAISAL

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PROCESS FLOW DIAGRAM OF PERFORMANCE APPRAISAL
COLLECT FORMS
COMPILE RESULTS

DECIDE INCREMENTS BASED ON GRADES
PREPARE APPRAISAL LETTER FOR EVERY INDIVIUAL

DISTRIBUTE LETTERS TO DIVISIONAL HEADS

COLLECT SIGNED COPIES OF APPRAISAL LETTERS
FORWARD RESPECTIVE FORMS TO ALL


ELUCIDATE THE PROCEDURE TO THEM
DESIGN THE APPRAISAL FORM

DECIDE ON THE APPRAISAL METHOD
MAKE A LIST OF ALL EMPLOYEES

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LEVEL BAND DESIGNATION

1. Senior General Manager D
2. General Manager C Level -I
3. Deputy General Manager B
4. Assistant General Manager A
5. Senior Manager
6. Manager - I Level -II
7. Manager - II
8. Deputy Manager Level -III
9. Assistant Manager
10. Senior Executive Level - IV
11. Executive
12. Junior Executive Staff
13. Staff
65

All associates joining HSCI on or before 31
st
December of the year of Performance
Appraisal are eligible for evaluation. Rating is done on a scale of 1-10. Total marks are
100

Following table shows the marks and grades given as per the performance:
MARKS GRADES
> 90 S
75 ~ 90 A +
60 ~ 75 A
45 ~ 60 B+
30 ~ 45 B
< 30 C
CRITERIA OF PROMOTION ACCORDING TO GRADES

Years in present designation Minimum grade required for promotion
1 year S
2 YRS. A A+
3 YRS. A A A
4 YRS. B+ B+ A A
5 YRS. B+ B+ B+ B+ A

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For new joinees
 With 6 or less months at HSCI : not more than B+
 With m ore than6 months at HSCI : regular first appraisal
Appraisal grade for A’s promoted last year
 Max. B+ on Level change (V, IV, III, II) and from A, B, C, D in Level I.
 Exceptional cases of higher grade can be there.
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COMMUNICATION IN PMS
The single biggest problem in communication is the illusion that it has taken place.”
- George Bernard Shaw

Communication is the activity of conveying information through the exchange of thoughts,
messages, or information, as by speech, visuals, signals, writing, or behavior. It is the meaningful
exchange of information between two or more living creatures.
One definition of communication is ―any act by which one person gives to or receives from
another person information about that person's needs, desires, perceptions, knowledge, or
affective states. Communication may be intentional or unintentional, may involve conventional
or unconventional signals, may take linguistic or non-linguistic forms, and may occur through
spoken or other modes.‖
Communication requires a sender, a message, and a recipient, although the receiver doesn't have
to be present or aware of the sender's intent to communicate at the time of communication; thus
communication can occur across vast distances in time and space. Communication requires that
the communicating parties share an area of communicative commonality. The communication
process is complete once the receiver understands the sender's message.
Communicating with others involves three primary steps: ◦Thought: First, information exists in
the mind of the sender. This can be a concept, idea, information, or feelings. ◦Encoding: Next, a
message is sent to a receiver in words or other symbols. ◦Decoding: Lastly, the receiver
translates the words or symbols into a concept or information that a person can understand.
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VERBAL COMMUNICATION
Human spoken and pictorial languages can be described as a system of symbols (sometimes
known as lexemes) and the grammars (rules) by which the symbols are manipulated. The word
"language" also refers to common properties of languages. Language learning normally occurs
most intensively during human childhood. Most of the thousands of human languages use
patterns of sound or gesture for symbols which enable communication with others around them.
Languages seem to share certain properties although many of these include exceptions. There
is no defined line between a language and a dialect. Constructed languages such
as Esperanto, programming languages, and various mathematical formalisms are not necessarily
restricted to the properties shared by human languages. Communication is the flow or exchange
of information within people or a group of people.
There are a variety of verbal and non-verbal forms of communication. These include body
language, eye contact, sign language, haptic communication,and chronemics. Other examples
are media content such as pictures, graphics, sound, and writing.
The Convention on the Rights of Persons with Disabilities also defines the communication to
include the display of text, Braille, tactile communication, large print, accessiblemultimedia, as
well as written and plain language, human-reader, augmentative and alternative modes, means
and formats of communication, including accessible information and communication
technology Feedback is a critical component of effective communication.



69

NONVERBAL COMMUNICATION
Nonverbal communication describes the process of conveying meaning in the form of non-word
messages. Some forms of non verbal communication include chronemics, haptics,gesture, body
language or posture, facial expression and eye contact, object communication such
as clothing, hairstyles, architecture, symbols, infographics, and tone of voice, as well as through
an aggregate of the above. Speech also contains nonverbal elements known as paralanguage.
These include voice lesson quality, emotion and speaking style as well as prosodic features such
as rhythm, intonation and stress. Research has shown that up to 55% of spoken communication
may occur through non verbal facial expressions, and a further 38% through
paralanguage. Likewise, written texts include nonverbal elements such as handwriting style,
spatial arrangement of words and the use of emoticons to convey emotional expressions in
pictorial form.

ORAL COMMUNICATION
Oral communication, while primarily referring to spoken verbal communication, can also
employ visual aids and non-verbal elements to support the conveyance of meaning. Oral
communication includes speeches, presentations, discussions, and aspects of interpersonal
communication. As a type of face-to-face communication, body language and choice tonality
play a significant role, and may have a greater impact upon the listener than informational
content. This type of communication also garners immediate feedback.


70

BUSINESS COMMUNICATION
A business can flourish only when all objectives of the organization are achieved effectively. For
efficiency in an organization, all the people of the organization must be able to convey their
message properly.
Over time the forms of and ideas about communication have evolved through the continuing
progression of technology. Advances include communications psychology and media
psychology, an emerging field of study.
The progression of written communication can be divided into three revolutionary stages called
"Information Communication Revolutions".

During the first stage, written communication first
emerged through the use of pictographs. The pictograms were made in stone; hence written
communication was not yet mobile. During the second stage, writing began to appear on paper,
papyrus, clay, wax, etc. with common alphabets. The third stage is characterized by the transfer
of information through controlled waves of electromagnetic (i.e., radio, microwave, infrared) and
other electronic signals.
Communication is thus a process by which meaning is assigned and conveyed in an attempt to
create shared understanding. This process, which requires a vast repertoire of skills
in interpersonal processing, listening, observing, speaking, questioning, analyzing, gestures, and
evaluating enables collaboration and cooperation.
Misunderstandings can be anticipated and solved through formulations, questions and answers,
paraphrasing, examples, and stories of strategic talk. Written communication can be clarified by
planning follow-up talks on critical written communication as part of the every-day way of doing
business. A few minutes spent talking in the present will save valuable time later by avoiding
71

misunderstandings in advance. A frequent method for this purpose is reiterating what one heard
in one's own words and asking the other person if that really was what was meant.
Effective communication occurs when a desired effect is the result of intentional or unintentional
information sharing, which is interpreted between multiple entities and acted on in a desired way.
This effect also ensures the messages are not distorted during the communication process.
EFFECTIVE COMMUNICATION
Effective communication should generate the desired effect and maintain the effect, with the
potential to increase the effect of the message. Therefore, effective communication serves the
purpose for which it was planned or designed. Possible purposes might be to elicit change,
generate action, create understanding, inform or communicate a certain idea or point of view.
When the desired effect is not achieved, factors such as barriers to communication are explored,
with the intention being to discover how the communication has been ineffective.
BARRIERS TO EFFECTIVE COMMUNICATION
Barriers to effective communication can retard or distort the message and intention of the
message being conveyed which may result in failure of the communication process or an effect
that is undesirable. These include filtering, selective perception, information overload, emotions,
language, silence, communication apprehension, gender differences and political correctness
[8]

This also includes a lack of expressing "knowledge-appropriate" communication, which occurs
when a person uses ambiguous or complex legal words, medical jargon, or descriptions of a
situation or environment that is not understood by the recipient.
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PHYSICAL BARRIERS
Physical barriers are often due to the nature of the environment. An example of this is the natural
barrier which exists if staff are located in different buildings or on different sites. Likewise, poor
or outdated equipment, particularly the failure of management to introduce new technology, may
also cause problems. Staff shortages are another factor which frequently causes communication
difficulties for an organization. While distractions like background noise, poor lighting or an
environment which is too hot or cold can all affect people's morale and concentration, which in
turn interfere with effective communication.
SYSTEM DESIGN
System design faults refer to problems with the structures or systems in place in an organization.
Examples might include an organizational structure which is unclear and therefore makes it
confusing to know whom to communicate with. Other examples could be inefficient or
inappropriate information systems, a lack of supervision or training, and a lack of clarity in roles
and responsibilities which can lead to staff being uncertain about what is expected of them.
ATTITUDINAL BARRIERS
Attitudinal barriers come about as a result of problems with staff in an organization. These may
be brought about, for example, by such factors as poor management, lack of consultation with
employees, personality conflicts which can result in people delaying or refusing to communicate,
the personal attitudes of individual employees which may be due to lack of motivation or
dissatisfaction at work, brought about by insufficient training to enable them to carry out
particular tasks, or just resistance to change due to entrenched attitudes and ideas, it may be as a
result delay in payment at the end of the month.
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AMBIGUITY OF WORDS/PHRASES
Words sounding the same but having different meaning can convey a different meaning
altogether. Hence the communicator must ensure that the receiver receives the same meaning. It
is better if such words are avoided by using alternatives whenever possible.
INDIVIDUAL LINGUISTIC ABILITY
The use of jargon, difficult or inappropriate words in communication can prevent the recipients
from understanding the message. Poorly explained or misunderstood messages can also result in
confusion. However, research in communication has shown that confusion can lend legitimacy to
research when persuasion fails.
PHYSIOLOGICAL BARRIERS
These may result from individuals' personal discomfort, caused—for example—by ill health,
poor eyesight or hearing difficulties.
PRESENTATION OF INFORMATION
Presentation of information is important to aid understanding. Simply put, the communicator
must consider the audience before making the presentation itself and in cases where it is not
possible the presenter can at least try to simplify his/her vocabulary so that the majority can
understand.
Media channels for business communication include the Internet, print
media, radio, television, ambient media, and word of mouth.
Business communication can also refer to internal communication. A communications
director will typically manage internal communication and craft messages sent to employees. It
74

is vital that internal communications are managed properly because a poorly crafted or managed
message could foster distrust or hostility from employees.
Business communication is a common topic included in the curricula of Masters of Business
Administration (MBA) programs of many universities. AS well, many community colleges and
universities offer degrees in Communications.
There are several methods of business communication, including:
 Web-based communication - for better and improved communication, anytime anywhere
 video conferencing which allow people in different locations to hold interactive
meetings;
 e-mails, which provide an instantaneous medium of written communication worldwide;
 Reports - important in documenting the activities of any department;
 Presentations - very popular method of communication in all types of organizations,
usually involving audiovisual material, like copies of reports, or material prepared
in Microsoft PowerPoint or Adobe Flash;
 telephoned meetings, which allow for long distance speech;
 forum boards, which allow people to instantly post information at a centralized location;
and
 Face-to-face meetings, which are personal and should be succeeded by a written follow-
up.
 suggestion box,it is mainly for upward communication as because some people may
hesitate to communicate to the to management directly so they can give suggestion by
drafting suggestion in suggestion box.
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EFFECTIVE BUSINESS COMMUNICATION
Communication is the top quality that employers look for.

Effective business communication
starts by asking the right questions to understand the customer’s needs and wants to be able to
recommend a product or service customized to the customer. One good tip would be to speak,
pause, and listen.

Communicate what you need and then pause to let the recipient process and
respond to the information. With an average of 1800 messages being sent by workers through
memos, telephone, email, faxes, and face to face, it is important to listen and pay attention to the
recipient and send your information clearly. All in all, to be effective in business communication
you need to be clear, brief, focused, and committed You make an impression on everyone with
the way you handle your communication skills from your voice to your body language.
FACE-TO-FACE COMMUNICATION:
Face-to-face communication helps to establish a personal connection and will help sell the
product or service to the customer. These interactions can portray a whole different message than
written communication as tone, pitch, and body language is observed.

Information is easier to
access and delivered immediately with these interactions rather than waiting for an email or
phone call. Conflicts are also easily resolved this way as verbal and non-verbal cues are observed
and acted upon. Communicating professional is very important as you are representing the
company. Speak clearly and ask questions to understand the needs and wants, let the recipient
respond as you resolve the issue. Decisions are made more confidently during a face-to-face
interaction as the recipient asks questions to understand and move forward with their decision.


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EMAIL COMMUNICATION:
When using email to communicate in the business world it is important to be careful how things
are worded. Miscommunication is very frequent as the reader doesn’t know what non-verbal
cues you are giving off, such as the pitch, tone, or expressions. Before beginning an email make
sure the email address you are using is appropriate and professional as well as the message you
are going to send. Again, make sure the information is clear and to the point so the recipient isn’t
confused. Make sure you include your signature, title, and other contact information at the end.
TELEPHONE COMMUNICATION:

When making a business call make it clear who you are and where you are from as well as your
message when on the phone. Smile and have a positive attitude as the recipient will be able to
read you and that will effect how they react. When leaving a message, make sure you are clear
and brief. State your name and who you are and why you are calling them as well as contact
information. If replying to a voicemail try to respond as soon as possible and take into
consideration the time of day. Don’t call to early or too late, as it is important to respect other’s
time. Also be mindful of where you are and the noise level as well as the people you are around
when trying to reach someone by phone.
MEMORANDUM COMMUNICATION:
Memorandums are straight to the point and used within a company to communicate information
to individuals or departments. Make sure the memo includes a subject and stays brief but to the
point. Include what the recipient needs to do after reading the memo and a signature or initials of
whom it is from. Business memos should have a center title in uppercase and to, from, and date
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aligned to the left. To begin, state the problem, and then discuss the causes of the problem and
why it exists, and end with what to do to solve the problem while offering assistance.
ORGANIZATION:
Founded in 1936 by Shankar with the Association for Business Communication (ABC),

originally called the Association of College Teachers of Business Writing, is ―an international
organization committed to fostering excellence in business communication scholarship, research,
education, and practice.‖
The IEEE Professional Communication Society (PCS) is dedicated to understanding and
promoting effective communication in engineering, scientific, and other environments,
including business environments. PCS's academic journal is one of the premier journals in
Europe communication. The journal’s readers are engineers, writers, information designers,
managers, and others working as scholars, educators, and practitioners who share an interest in
the effective communication of technical and business information.
Communication is one of the basic functions of management in any organization and its
importance can hardly be overemphasized. It is a process of transmitting information, ideas,
thoughts, opinions and plans between various parts of an organization. You cannot have human
relations without communication. However, good and effective communication is required not
only for human relations but also for successful business.
Effective two–way communication of information and decision between the employee and
manager is an essential component for management-employee relations. The manager cannot get
the work done from employees unless they are communicated effectively of what needs to be
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done. He should also be sure of some basic facts such as how to communicate and what results
can be expected from that communication.
Performance Management System should aim at encouraging communication so as to enable the
employees to understand what is expected of them and how do they go about achieving it. Better
communication leads to better understanding, more effective management and stronger
performance.
BENEFITS FOR EMPLOYEES
1. Facilitates better understanding of duties, roles, responsibilities and priorities.
2. Lets employees know and understand where they stand.
3. Builds a better relation with the supervisor.
4. Helps realize need for good performance.
5. Increases self-esteem.
BENEFITS FOR SUPERVISORS
1. Helps institute a good working relationship with employees.
2. Enables them to give clear guidelines to employees on their responsibilities and
expectations.
3. Maintains and clarifies employee priorities.
4. Gives them an opportunity to motivate employees.
5. Quick and effective dealing with problems in a opportune manner.
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6. Allows fearless communication of thoughts, ideas, and issues of employees.
BENEFITS FOR THE ORGANIZATION
1. Improved performance throughout the organization due to:
2. Effective communication of organization’s objectives and values.
3. Increased sense of cohesiveness and loyalty.
4. Managers are better equipped to use their leadership skills and to develop their staff.
5. Improved overview of tasks performed by each member of a group.
6. Identification of ideas for improvement.
7. Creation and maintenance of a culture of continuous improvement.
8. Communication to people that they are valued.








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PURPOSE
The main purpose of the summer internship project is to familiarize us to real-life work
situations that would require us to take decisions in unclear situations, involve analytical thinking
and force us to process our thoughts which cannot be done so in the classroom.
The primary objective of my project report is:
1. To study performance management at HSCI.
2. To identify the main problem areas from the point of view of its employees.
3. To analyze if effective use of communication can help in enhancing employee
satisfaction and hence in better talent management and also curb problems like high
attrition.












81

SCOPE
The scope of the project is widespread as it covers all activities of human resource that I’ve had a
chance to gain practical experience in HSCI.
The scope of my project is cited below:
1. Studying Performance Management System.
2. Understanding Job Descriptions and KRAs.
3. Gaining competency of recruitment, starting from short listing the CVs to their joining
the organization.
4. Working on the manpower data for recruitment, attrition and retention.

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LIMITATIONS
While pursuing my project I encountered the following limitations:
1. Time was a main restricting factor while working the project.
2. Employees are sometimes hesitant to provide complete and full information.
3. Often due to pressure of meeting goals and achieving targets and day to day work,
employees were not able to put in the picture all that they wanted to.
4. A group discussion could also have helped in the research, but could not be held due to
various factors.


83






ANALYSIS
AND
DISCRIPTION








84

ANALYSIS AND DISCRIPTION
During my 7 weeks stay at HSCI, I have learnt, studied and understood much about the
Performance Management System of Honda Siel Cars India Ltd. Also talking to the employees
here helped me in examining the PMS in a greater detail. Based on it, I present my analysis as
follows:
1. HSCI has employed very efficient and effective Performance Management System which
was designed in-house.
2. It is up-to-date with all the techniques and method to evaluate employee performance, by
using KRAs and 360 degree appraisal.
3. Honda is a believer in parity and its Performance Management system is based on the
framework of fairness, equality and impartiality.
4. It has bought another big improvement in its Performance Management System by
making the performance review a bi-annual event.
5. The Performance Management System is lacking though on the communication side.
6. Employees are not very clear about concepts like variable pay and grades which are
directly linked with performance.
7. There is no formal, well structured model for improving employee performance which is
being currently followed.
8. Performance communication is not frequent enough.
9. No documentation is done of the communication i.e. the feedback given.
85

10. No follow-ups are done to keep a track of what was suggested to the employee, was he
able to implement the suggestion, if yes then what was the result, if it was helpful, if not
then what else can be done etc.
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SWOT ANALYSIS
Every coin has to phases, in the same way there are various good and bad aspects of any process.
These can be explained well with the help of SWOT Analysis
SWOT analysis (alternatively SWOT Matrix) is a structured planning method used to evaluate
the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in
a business venture. A SWOT analysis can be carried out for a product, place, industry or person.
It involves specifying the objective of the business venture or project and identifying the internal
and external factors that are favorable and unfavorable to achieving that objective. The technique
is credited to Albert Humphrey, who led a convention at the Stanford Research Institute
(now SRI International) in the 1960s and 1970s using data from Fortune 500 companies. The
degree to which the internal environment of the firm matches with the external environment is
expressed by the concept of strategic fit.
Setting the objective should be done after the SWOT analysis has been performed. This would
allow achievable goals or objectives to be set for the organization
 Strengths: characteristics of the business or project that give it an advantage over
others.
 Weaknesses: characteristics that place the team at a disadvantage relative to others
 Opportunities: elements that the project could exploit to its advantage
 Threats: elements in the environment that could cause trouble for the business or
project

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Identification of SWOTs is important because they can inform later steps in planning to
achieve the objective.
First, the decision makers should consider whether the objective is attainable, given the
SWOTs. If the objective is not attainable a different objective must be selected and the
process repeated.
Users of SWOT analysis need to ask and answer questions that generate meaningful
information for each category (strengths, weaknesses, opportunities, and threats) to make the
analysis useful and find their competitive advantage.

88

SWOT analysis aims to identify the key internal and external factors seen as important to
achieving an objective. The factors come from within a company's unique value chain. SWOT
analysis groups key pieces of information into two main categories:
1. INTERNAL FACTORS – the strengths and weaknesses internal to the
organization
2. EXTERNAL FACTORS – the opportunities and threats presented by the
environment external to the organization
Analysis may view the internal factors as strengths or as weaknesses depending upon their
effect on the organization's objectives. What may represent strengths with respect to one
objective may be weaknesses (distractions, competition) for another objective. The factors
may include all of the 4Ps; as well as personnel, finance, manufacturing capabilities, and so
on.
The external factors may include macroeconomic matters, technological change, legislation,
and sociocultural changes, as well as changes in the marketplace or in competitive position.
The results are often presented in the form of a matrix.
SWOT analysis is just one method of categorization and has its own weaknesses. For
example, it may tend to persuade its users to compile lists rather than to think about actual
important factors in achieving objectives. It also presents the resulting lists uncritically and
without clear prioritization so that, for example, weak opportunities may appear to balance
strong threats.
It is prudent not to eliminate any candidate SWOT entry too quickly. The importance of
ind1ividual SWOTs will be revealed by the value of the strategies they generate. A SWOT
89

item that produces valuable strategies is important. A SWOT item that generates no
strategies is not important.
The usefulness of SWOT analysis is not limited to profit-seeking organizations. SWOT
analysis may be used in any decision-making situation when a desired end-state (objective)
has been defined. Examples include: non-profit organizations, governmental units, and
individuals. SWOT analysis may also be used in pre-crisis planning and preventive crisis
management. SWOT analysis may also be used in creating a recommendation during
a viability study/survey.
As part of the development of strategies and plans to enable the organization to achieve its
objectives, that organization will use a systematic/rigorous process known as corporate
planning. SWOT alongside PEST/PESTLE can be used as a basis for the analysis of
business and environmental factors.
 SET OBJECTIVES – defining what the organization is going to do
 ENVIRONMENTAL SCANNING:
Internal appraisals of the organization's SWOT, this needs to include an
assessment of the present situation as well as a portfolio of products/services and
an analysis of the product/service life cycle
 ANALYSIS OF EXISTING STRATEGIES: This should determine relevance from
the results of an internal/external appraisal. This may include gap analysis which will
look at environmental factors
90

 STRATEGIC ISSUES DEFINED – key factors in the development of a corporate
plan which needs to be addressed by the organization
 DEVELOP new/revised strategies – revised analysis of strategic issues may mean
the objectives need to change
 ESTABLISH critical success factors – the achievement of objectives and strategy
implementation
 PREPARATION of operational, resource, projects plans for strategy
implementation
 MONITORING results – mapping against plans, taking corrective action which may
mean amending objectives/strategies.
In many competitor analyses, marketers build detailed profiles of each competitor in the
market, focusing especially on their relative competitive strengths and weaknesses using
SWOT analysis. Marketing managers will examine each competitor's cost structure, sources
of profits, resources and competencies, competitive positioning and product differentiation,
degree of vertical integration, historical responses to industry developments, and other
factors.
Marketing management often finds it necessary to invest in research to collect the data
required to perform accurate marketing analysis. Accordingly, management often conducts
market research (alternately marketing research) to obtain this information. Marketers
employ a variety of techniques to conduct market research, but some of the more common
include:
 Qualitative marketing research, such as focus groups
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 Quantitative marketing research, such as statistical surveys
 Experimental techniques such as test markets
 Observational techniques such as ethnographic (on-site) observation
 Marketing managers may also design and oversee various environmental scanning
and competitive intelligence processes to help identify trends and inform the
company's marketing analysis.
Below is an example SWOT analysis of a market position of a small management consultancy
with specialism in HRM.
STRENGTHS WEAKNESSES OPPORTUNITIES THREATS
Reputation in
marketplace
Shortage of consultants
at operating level
rather than partner
level
Well established
position with a well
defined market niche
Large consultancies
operating at a minor
level
Expertise at partner
level in HRM
consultancy
Unable to deal with
multi-disciplinary
assignments because of
size or lack of ability
Identified market for
consultancy in areas
other than HRM
Other small
consultancies looking
to invade the
marketplace


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STRENGTHS :
 Performance Appraisal in HSCI is done in well planned and systematic way.
 Properly designed and framed forms are used for proper evaluation of the employees.
 HODs and seniors do the fair evaluation of the employees.
 Systematic promotion and increment criteria are followed.
 Various aspects like performance/result, capability, behavior are considered for
appraising the employees.
 Performance appraisal reviewed twice in a year.
WEAKNESSES :
 Various departments take long time in submitting the forms and details about
employees, and due to some other reasons performance appraisal process takes long
time.
 Lack communication is an obvious weakness.
OPPORTUNITIES:
 There are various new and effective techniques of performance appraisal which may
be opted for.
 Goal setting should be done considering the opinions and views of subordinates also.

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THREATS:
 The various improved and advance techniques of performance appraisal followed by
other automobile companies.
 Goals which are unattainable by the employees may be set.
RECOMMENDATIONS
After analyzing the PMS of HSCI, I would suggest a well structured and a well documented
Communication Improvement Plan (CIP) for HSCI with the focus on improving performance
through communication.
STEP 1: Feedback is a process by which effective performance is reinforced and non-
desirable performance is corrected. Feedback should be based on what is
expected and what has been accomplished after the work is performed.
Feedback should be made a continuous feature in the organization as giving
feedback only once or twice a year will not be of much use. Employees need
to be given feedback at regular intervals so that they are aware of where they
are going wrong and what are they doing right. This would help them to plan
accordingly. Feedback can be given as praise in the form of reward and
recognition, or it can be corrective in the form of disciplinary or corrective
action.
Also important is to keep a proper documentation of all the communication
that is taking place. Though this would mean filling up of another form and
would take time and effort, but this will definitely help in tracking the
improvement of the employees. The form should include:
94

 Date
 Time
 Place
 Remarks: Remarks should include:
a. Description of the employee’s performance.
b. What is expected in the future.
c. Time frame for improvement.
d. Suggestions,
if any. Example of a communication record keeping document










95


Conversation No. #


The following table identifies performance measures and major job responsibilities for
_______________________________ as of ______________ at____________
(employee name) (date) (place)

1.
2.
3.
4.

Evaluation of Current Performance:



Suggested to Achieve Best Results
1.
2.
3.


96

Employee Comments
1.
2.
3.
Other Remarks:

Allotted Time: _________ days



_______________________________ __________________________
(employee signature) (supervisor signature)
The discussion should focus primarily on performance and should be kept
separate from the mention of salary issues. The performance discussion
should concentrate on the development, or clarification of clear performance
criteria.
When giving feedback, it is useful to focus first on the positive aspects of the
employee's performance. To reinforce the two-way communication process of
successful evaluations, the employees should be encouraged to identify their
most important achievements over the evaluation period.
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But an employee must also be informed of any incidents of unsatisfactory
performance and what to do about it. When addressing these, efforts should be
made to make the employee himself indentify his shortcomings. If the
employee does not have a clear understanding of where his performance falls
short, or how he can correct any poor behavior, the employee will be
frustrated, unproductive, and will almost certainly fail to improve.
STEP 2: The second vital step to insure an increased communication between the
supervisor and the employee would be scheduling meetings and interviews
with the employee at regular time intervals, for e.g.:
 At the start of each performance evaluation period to discuss the performance plans
for the year. In this way, the employee will become more aware of his job duties and
expectations. When employees understand what their expectations are, it helps them
to determine their own work progress, to develop self-confidence, and to improve
overall job performance.
 At points throughout the year give coaching and feedback about their performance.
These meetings will also provide them the opportunity to discuss any concerns or
problems that they may be having.
 At the end of the performance period to discuss the performance evaluation.
STEP 3: After the performance evaluation has taken place, a few things should be taken
care of
98

 The outcome should be noted down; follow-up agreements and
commitments should be tracked.
 Focus equal attention on all employees; show adequate concern for
all, be it average and better employees or marginal or problem
employees.
 Follow up on training and development.
 Before the beginning of the next discussion, review progress made
toward improvement and how effective the employee's efforts have
been.
Apart from the communication point of view, these meeting are work in favor
of employees because
 Employees would want to know from their supervisors where they
stand. Honest and consistent feedback about individual job
performance helps the employee know the performance that is
being done well, what needs to be changed or corrected, and
results or consequences of his performance.
 Employees who are self-motivated and consistent performers will
give end up feeling frustrated and disappointed if there is no
distinction between their performance and the performance of the
mediocre or poor performer.
99

 Performance evaluation meeting provides the employee and the
supervisor with an opportunity to have a conversation about
performance goals and objectives.
 Honest and accurate performance feedback provides managers,
supervisors and employees with an opportunity to set performance
goals for individual employees and the team.
Diverting from the Communication Improvement Plan, I also strongly feel that the employees
should be made more aware about the Performance Management System in their organization.
They should be made more aware about concepts like
 Grades: Employees come to know of their grades in the appraisal letter that they receive
from their divisional head and perceive grades in terms of excellent, very good, good,
average, etc. They are generally not aware about what each grade signifies in terms of
performance evaluation i.e. when does one get any specified grade, on what basis is the
grading done, what parameters are considered for grading, etc. Two employees achieving
100% targets may get different grade as only work performance is not measured but there
are other things as well. Since all these are not fully understood by the employee, they
really do not know how to improve their grade. This leads to frustration, dissatisfaction
and irritation on the job, leading to attrition as the employee dissatisfied with job would
ultimately leave the job.
 Variable Pay: Again, like in the case of grades, employees really do not know or
understand the variable pay structure. All they are aware of is that this component of their
salary is linked to performance i.e. better the performance, better the variable pay. The
100

employees are not aware about the slabs being used i.e. what grade translated to how
much percentage increase in variable pay. Though, being unaware about his does not
pose any serious problem directly but, if the employees are made more aware about the
same it would definitely help in uplifting the performance of the organization as a whole.
Coming to the performance evaluation aspect of Performance Management System from
the communication aspect, there is not much scope for improvement because the present
one is already very well structured and serves it purpose well. They can probably opt for
more future-oriented techniques for evaluating performance. The techniques could be:
1. Management By Objectives [MBO]: In this system, once a year, the management decides
upon the objective which the company as a whole will try to attain. The problems which
may hinder the accomplishment of these objectives and how to know when the objectives
are being met are also decided. A regular series of review meetings are held at each level,
for checking progress and making suitable adjustments where necessary.
The appraisal system looks very much like MBO as both involve reviewing of past
progress and setting of future targets. But they are in fact quite different.
a. Performance appraisal is not dependent upon the downward systematic flow of
information from top management.
b. Performance appraisal interviews can happen at any time, without waiting for the
management to begin the process.
c. The objective in performance appraisal can may be individual and personal,
without may reference to the objectives of the appraising manager whereas in
MBO, a manager must not set objectives until his own have been set.
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At the end of the appraisal period, performance is measured against these clearly stated
objectives and to what extent they have been achieved. Subjectivity in ratings by
superiors is reduced to a great extent because performance is judged on objectives-based
criteria. The entire cyclic process then begins again with agreement and setting of goals
for the next year. Thus, it can be seen that the whole purpose of the appraisal shifts from
being a one-sided subjective judgment of performance to an interactive tool for individual
growth and development.
















102






SUMMARY
OF
FINDINGS AND
SUGGESTIONS







103

SUMMARY OF FINDINGS AND SUGGESTIONS
For doing my research, I interviewed various employees of HSCI. I asked them about their
understanding, their satisfaction levels and familiarity with the current appraisal process. I have
also done the SWOT analysis of the HSCI's performance appraisal process. On the basis of my
study and analysis I have also given some recommendations towards the improvement of
performance appraisal process followed in HSCI.

1. Employees are not very clear about concepts like variable pay and grades which are
directly linked with performance.
2. There is no formal, well structured model for improving employee performance which is
being currently followed.
3. Performance communication is not frequent enough.
4. No documentation is done of the communication i.e. the feedback given.
5. No follow-ups are done to keep a track of what was suggested to the employee, was he
able to implement the suggestion, if yes then what was the result, if it was helpful, if not
then what else can be done etc.
Hence there is a need for a well structured communication mode




104

ANNEXURE
QUESTIONNIRE FOR HONDA CAR USER
The purpose that I am doing that this questionnaire is to complete my findings for my report. All
this information is just for academic use only.
a) Are you a Honda car user?
o Yes
o No (Thank you for for your time)
b) Gender
o Male
o Female
c) Age
o 20to30
o 31to40
o 41to50
o 51to60
d) How did you become aware of Honda?


105

e) How satisfied are you with Honda car?
o Not satisfied
o Satisfied
o Very satisfied
f) What motivates you to buy Honda car?

g) How long you have been using Honda car?

h) Will you take a chance to buy others brand car apart from Honda?
o Yes
o No
I) What combination of factor influence that make you buy Honda car?


j) Are you likely to recommend Honda to a friend or colleague?
o Yes
o No
If no, why?

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