An Analytical Study on Performance Appraisal SystemWith Particular Reference to

LARSEN & TOUBRO

PREFACE

It was my extreme pleasure to do my Research project on an esteemed organization like Larsen & Toubro Ltd. Not only did I become aware of the industry customs and culture, but it also helped me to acclimatize in the new industry work environment. I have made an effort through this research study to make a report which proves beneficial to both the company and the industry. I have made my report on various aspects related to the performance appraisal methods currently implemented at Larsen & Toubro Ltd, and have also made suggestions for its improvement. I made a survey of facts by raising a questionnaire related to my topic at Larsen & Toubro Ltd. The response received through the questionnaire was then summarized and analyzed graphically to reach certain conclusions and suggest the practices which will prove beneficial to the company and the industry as a whole.

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ACKNOWLEDGEMENT

The present work is an effort to throw some light on An Analytical Study on Performance Appraisal System With Particular Reference to Larsen & Toubro Ltd The work would not have been possible to come to the present shape without the able guidance, supervision and help to me by number of people. With deep sense of gratitude I acknowledge the encouragement and guidance received by xxxxxxxxxxx, New Delhi. I also convey my heartfelt affection to Mr. XXXXXX who helped and supported me during the course, for completion of my thesis.

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TABLE OF CONTENTS1. Introduction2. Review of Literature

3. Objectives and rationale of the project 4. Research Methodology Research Design Sample Size Research tools and questionnaire Action plan for data collection Data plan for data collection Data analysis and report preparation

5. Data Analysis 6. Summary and Conclusion 7. Appendices 8. Bibliography

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INTRODUCTIONCompany profile

Larsen & Toubro Limited (L&T) is a technology, engineering, construction and manufacturing company. It is one of the largest and most respected companies in India's private sector. Seven decades of a strong, customer-focused approach and the continuous quest for world-class quality have enabled it to attain and sustain leadership in all its major lines of business. L&T has an international presence, with a global spread of offices. A thrust on international business has seen overseas earnings grow significantly. It continues to grow its overseas manufacturing footprint, with facilities in China and the Gulf region. The company's businesses are supported by a wide marketing and distribution network, and have established a reputation for strong customer support. L&T believes that progress must be achieved in harmony with the environment. A commitment to community welfare and environmental protection are an integral part of the corporate vision.

Operating Divisions: Engineering & Construction Projects (E&C) Heavy Engineering (HED) Construction Electrical & Electronics (EBG) Machinery & Industrial Products (MIPD) IT & Technology Services

The evolution of L&T into the country's largest engineering and construction organization is among the most remarkable success stories in Indian industry. L&T was founded in Bombay (Mumbai) in 1938 by two Danish engineers, Henning Holck-Larsen and Soren Kristian Toubro. Both of them were strongly committed to developing India's engineering capabilities to meet the demands of industry.

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Soren Henning Holck-Larsen (4.7.1907 - 27.7.2003) Toubro

Kristian

(27.02.1906

-

4.3.1982) Beginning with the import of machinery from Europe, L&T rapidly took on engineering and construction assignments of increasing sophistication. Today, the company sets global engineering benchmarks in terms of scale and complexity. Early Days

Henning Holck-Larsen and Soren Kristian Toubro, school-mates in Denmark, would not have dreamt, as they were learning about India in history classes that they would, one day, create history in that land. In 1938, the two friends decided to forgo the comforts of working in Europe, and started their own operation in India. All they had was a dream. And the courage to dare. Their first office in Mumbai (Bombay) was so small that only one of the partners could use the office at a time! In the early years, they represented Danish manufacturers of dairy equipment for a modest retainer. But with the start of the Second World War in 1939, imports were restricted, compelling them to start a small work-shop to undertake jobs and provide service facilities. Germany's invasion of Denmark in 1940 stopped supplies of Danish products. This crisis forced the partners to stand on their own feet and innovate. They started manufacturing dairy equipment indigenously. These products proved to be a success, and L&T came to be recognised as a reliable fabricator with high standards. The war-time need to repair and refit ships offered L&T an opportunity, and led to the formation of a new company, Hilda Ltd., to handle these operations. L&T also started two repair and fabrication shops - the Company had begun to expand. Again, the sudden internment of German engineers (because of the War) who were to put up a soda ash plant for the Tatas, gave L&T a chance to enter the field of installation - an area where their capability became well respected.

The Journey7

In 1944, ECC was incorporated. Around then, L&T decided to build a portfolio of foreign collaborations. By 1945, the Company represented British manufacturers of equipment used to manufacture products such as hydrogenated oils, biscuits, soaps and glass. In 1945, L&T signed an agreement with Caterpillar Tractor Company, USA, for marketing earthmoving equipment. At the end of the war, large numbers of war-surplus Caterpillar equipment were available at attractive prices, but the finances required were beyond the capacity of the partners. This prompted them to raise additional equity capital, and on 7th February 1946, Larsen & Toubro Private Limited was born. Independence and the subsequent demand for technology and expertise offered L&T the opportunity to consolidate and expand. Offices were set up in Kolkata (Calcutta), Chennai (Madras) and New Delhi. In 1948, fifty-five acres of undeveloped marsh and jungle was acquired in Powai. Today, Powai stands as a tribute to the vision of the men who transformed this uninhabitable swamp into a manufacturing landmark.

Public Limited CompanyIn December 1950, L&T became a Public Company with a paid-up capital of Rs.2 million. The sales turnover in that year was Rs.10.9 million. Prestigious orders executed by the Company during this period included the Amul Dairy at Anand and Blast Furnaces at Rourkela Steel Plant. With the successful completion of these jobs, L&T emerged as the largest erection contractor in the country. In 1956, a major part of the company's Bombay office moved to ICI House in Ballard Estate. A decade later this imposing grey-stone building was purchased by L&T, and renamed as L&T House - its Corporate Office. The sixties saw a significant change at L&T - S. K. Toubro retired from active management in 1962. The sixties were also a decade of rapid growth for the company, and witnessed the formation of many new ventures: UTMAL (set up in 1960), Audco India Limited (1961), Eutectic Welding Alloys (1962) and TENGL (1963).

Expanding HorizonsBy 1964, L&T had widened its capabilities to include some of the best technologies in the world. In the decade that followed, the company grew rapidly, and by 1973 had become one of the Top-25 Indian companies.

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In 1976, Holck-Larsen was awarded the Magsaysay Award for International Understanding in recognition of his contribution to India's industrial development. He retired as Chairman in 1978. In the decades that followed, the company grew into an engineering major under the guidance of leaders like N. M. Desai, U. V. Rao, S. D. Kulkarni and A. M. Naik. Today, L&T is one of India's biggest and best known industrial organisations with a reputation for technological excellence, high quality of products and services, and strong customer orientation. It is also taking steps to grow its international presence. For an institution that has grown to legendary proportions, there cannot and must not be an 'end'. Unlike other stories, the L&T saga continues... Visions The L&T vision reflects the collective goal of the company. It was drafted through a large scale interactive process which engaged employees at every level, worldwide.

Global Presence L&T has a global presence. A thrust on international business over the years has seen overseas revenues growing steadily. The company has manufacturing facilities in India, China, Oman and Saudi Arabia. It has a global supply network with offices in 10 locations worldwide, including Houston, London, Milan, Shanghai, Seoul. Customers include global majors in over 30 countries. Awards & Recognitions

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Major Awards Received by L&T in 2006 IMC Ramkrishna Bajaj National Quality Award

Amity Corporate Excellence Award 2006

National Top Exporters Trophy ICAI Award

Emerging Global Company Award

Major Awards Received by L&T in 2005 (April-December 2005) National Energy Conservation Awards-2005 Gold awards Economic Times-Indira Group of Institutes Award Outstanding Chief Executive Award Golden Peacock National Award L&T's Corporate Communications Department won nine awards Environment Excellence Gold Award 2004-05

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Subsidiaries & Associates

The L&T Group has a number of subsidiaries & associates worldwide. Engineering & Construction

L&T-Valdel Engineering Pvt. Limited A joint venture with Bangalore based Valdel Engineers & Constructors Pvt. Ltd. It offers upstream engineering services to the oil & gas sector. L&T-Chiyoda Limited A joint venture with Chiyoda Corporation of Japan, it offers international-grade engineering services to the hydrocarbon processing industries that include refineries, petrochemicals, oil & gas processing, LPG and LNG terminals, fertilisers, chemicals, etc. L&T-Sargent & Lundy Limited A joint venture with Sargent & Lundy (USA), it offers a complete range of engineering and design services for the power sector. HPL Cogeneration Limited

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Provides power to Haldia Petrochemicals Limited. L&T International FZE A wholly owned subsidiary of L&T, incorporated in 2001 at The Hamriyah Free Zone, Sharjah, United Arab Emirates. It is the investment arm of L&T for all international joint ventures and provides resource for international projects. Larsen & Toubro (Oman) LLC A joint venture between L&T International FZE and The Muscat Trading Co. LLC. This ISO 9001 company offers quality products and services in the construction field, with specialisation in turnkey projects. Larsen & Toubro Electromech LLC (formerly Zubair Kilpatrick LLC) A joint venture company of Larsen & Toubro International FZE and The Zubair Corporation in the Sultanate of Oman. LTEM is engaged in construction and service sector through four business units, viz: MEP works (Building Services), Electrical & Instrumentation works for Oil and Gas sector, Maintenance and Construction works in E&I sector and Facility Management for large assets. L&T and Eastern Contracting LLC Joint Venture Building a prestigious residential property (295 grandeur villas of Ground + 1 configuration, conforming to 11 different types of Mediterranean, Spanish and European styles of architecture) in Dubai Sports City for Victory Heights Golf Residential and Development LLC Larsen & Toubro Readymix Concrete Industries LLC A JV between L&T International FZE and Mr.Shukri Saleh Yahya Al Braik, an UAE National. Incorporated in 2006, the plant in Dubai offers complete design solutions for

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all the grades of concrete including specialized concrete such as HPC, SCC and colored concrete. Larsen & Toubro Saudi Arabia LLC A JV between L&T International FZE and Engineer Khaled Hizam Al-Nabet, a Saudi National. It offers turnkey solutions in specialised fields of oil and gas, petrochemicals, fertilisers and chemicals, infrastructure, buildings, factories, power transmission & distribution and telecommunication projects. Larsen & Toubro Qatar LLC A JV between L&T International FZE and AL Jazeera International Trading WLL. It offers turnkey solutions in specialised fields of buildings & factories, roads, bridges, airports, transmission lines, industrial electrification, petroleum & petrochemical projects, fertiliser plants, pipelines, water, sewerage and drainage system. Larsen & Toubro Kuwait Construction WLL A new venture of L&T and Kuwait-based Bader Al Mulla group focusing on construction projects in oil & gas, power and infrastructure, with primary focus on electro-mechanical construction. L&T-ECC Construction (M) SND. BHD A company incorporated in Malaysia by L&T with three Malaysians, Syed Mohsen Alhabshi, Datuk M Rajasingam and Sivajothi Rajendram, to undertake engineering and construction for all types of industrial and infrastructure projects in Malaysia. L&T-RAMBOLL Consulting Engineers Limited A joint venture of L&T and Ramboll A/S of Denmark that offers international quality

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design, project engineering and consultancy services for infrastructure projects. Voith Paper Technology (India) Limited A JV Voith Paper GmbH & Co. KG, Germany and L&T. It offers a range of solutions for fiber systems, paper and board industry. NAC Infrastructure Equipment Limited Accepts deposits and rents out high-value, multi-purpose, specialised and general purpose infrastructure equipment with value-added services. L&T-HCC JV Jharkhand Road Project A JV of L&T and HCC for constructing an 80km four-lane concrete road with rigid pavement in Jharkhand. L&T-KBL JV A JV of L&T and Kirloskar Brothers Limited, for executing Engineer-ProcureConstruct (EPC) lift irrigation project, which involves lifting 7.80 TMC water from Goddamvaripalli village to Goddumarri Anicut in the Cuddappah district of Andhra Pradesh HCC-L&T Purulia JV A JV of L&T and HCC, for implementing the Purulia Pumped Storage Project with an installed capacity of 900 MW (4x225 MW each) for West Bengal State Electricity Board (WBSEB) and NHPC. L&T-AM JV A JV between L&T and Alpine Mayeder Bau GmbH, Austria is constructing 11.3 km long, 5.6 m finished diameter, concrete lined Head Race Tunnel for NTPCs 4x130

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MW Tapovan Vishnugad hydropower project in Uttaranchal PATEL-L&T Consortium A consortium of L&T and Patel Engineering Limited is constructing Diversion cum Spillway Tunnels (43 m High, 186 m Long), Spillway, Intake Structures and part of Head Race Tunnel (7.25 m dia hose shoe shaped, 5.9 km long) for NHPCs 4 x 130 MW Parbati Hydro Electric Project Stage III at Himachal Pradesh. International Seaports Dredging Limited (ISDL) A JV between Dredging International N.V, Belgium formed to exploit dredging market in all SAARC countries , Myanmar, Thailand and Indonesia. It is presently executing maintenance and capital dredging works in India with major jobs in Dharmra Port, Orissa and Gangavaram Port, Andhra Pradesh. Metro Tunneling Group (MTG) A JV of DYWIDAG International, (Germany), L&T (India), IRCON International Ltd. (India), Samsung Engineering & Construction (South Korea) and Shimizu Corporation (Japan). It is constructing an underground metro rail corridor in Delhi for the Delhi Metro Rail Corporation (DMRC). It is currently executing 3.10 km tunnel project by cut and cover method, using Tunnel Boring Machines (Package BC 18) L&T Infrastructure Development Projects Limited A subsidiary company of L&T, implements various infrastructure projects through Public-Private partnerships. It executes projects on Build-Operate-Transfer (BOT), Build-Own-Operate-Transfer (BOOT), Build-Own-Lease-and-Transfer (BOLT), BuildOwn-Operate-Share-and-Transfer (BOOST) basis and other variants including the annuity approach. A number of developmental projects are executed by L&T under various sectors on EPC basis through special purpose vehicles (SPVs) promoted by a consortia of private and public players.

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L&T Transportation Infrastructure Limited It was formed to design and construct Tamil Nadu's first private BOT road project - the 28km Coimbatore bypass and a two-lane bridge across river Noyyal at Athupalam. L&T Western Andhra Tollways Limited (L&T WATL) Executing the project for four-laning the road from Jadcherla to Kothakota section of NH-7 in Andhra Pradesh, on BOT basis. L&T Vadodara Bharuch Tollway Limited (L&T VBTL) It has been formed for the development of the six-laning of NH-8 from Vadodara to Bharuch in Gujarat on BOT basis. L&T Inter State Road Corridor Limited (L&T IRCL) It is executing the four-laning of the 76-km highway between Palanpur and Swaroopgunj on the East West Corridor (NH-14), on BOT (annuity) basis. Narmada Infrastructure Construction Enterprise Limited (NICE) An SPV formed for design, construction, maintenance and operation of the 1.4-km second Narmada bridge, including 4.6km of approach roads, on BOT basis on NH-8 at Zadeshwar, Gujarat. L&T Western India Tollbridge Limited (L&TWIT) An SPV, constructed the 335m two-lane bridge across river Watrak on NH8 at Kheda, Ahmedabad-Vadodara section of NH8, on BOT basis, including 9.2km of approach roads and strengthening of 10km of the existing road.

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Second Vivekananda Bridge Tollway Company Limited (SVBTC) An SPV formed to finance, design, build, operate and maintain the 6.1 km six-lane bridge across the Hooghly on NH-2 near Kolkata on BOT basis. L&T Panipat Elevated Corridor Limited An SPV formed to construct 3.4 km six lane elevated flyover on NH 1 in Haryana. L&T Uttaranchal Hydro Power Limited An SPV, is formed for the implementation of the Singoli Bhatwari Hydro-Electric Project, a run-of-the-river scheme on river Mandakini in Rudraprayag district of Uttaranchal, on BOOT Basis. International Seaports (Haldia) Pvt. Limited. (ISPHL) An SPV, formed to execute the Project for the construction and operation of Berth No 4A in Haldia Dock Complex, on BOOT basis. Kakinada Seaports limited (KSPL) An SPV formed to operate the existing facilities on a 610m long terminal and for developing an additional berth at Kakinada Deep Water Port in Andhra Pradesh. The Dhamra Port Company Limited (DPCL) An SPV formed for developing and operating the Port of Dhamra in the state of Orissa.

L&T Urban Infrastructure Limited

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L&T-UIL is a subsidiary company of L&T IDPL, formed to develop and promote residential and commercial complexes in all the leading cities and metros. Bangalore International Airport Limited (BIAL) A JV of Karnataka State Industrial & Investment Development Corporation (KSIIDC), Airports Authority of India (AAI), Siemens, L&T and Unique (Zurich Airport) of Switzerland, to develop an airport at Devanahalli, Bangalore on BOOT basis. (www.bialairport.com) L&T Infocity Limited (LTIL) A JV of L&T and Andhra Pradesh Industrial Infrastructure Corporation Limited (APIIC) for developing HITEC City (Hyderabad Information Technology Engineering Consultancy City). LTIL also operates and maintains all services in HITEC City and provides engineering and design consultancy, marketing and O&M consultancy. (www.ltinfocity.com) L&T Infocity Lanka Private Limited (LTILPL) An SPV has conceptualised and rendered project management services and promoted the IT facility for HSBC in Colombo. L&T Infocity Infrastructure Limited (L&T IIL) A subsidiary of LTIL and has developed an exclusive built-to-suit IT Park in Salt Lake, Kolkata. Vizag IT Park Limited (VIPL) It has developed an exclusive built-to-suit IT Park project for HSBC Electronic Data Processing India Private Limited (HDPI) at Siripuram, Visakhapatnam.

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L&T Tech Park Limited A subsidiary of L&T IDPL, formed to promote a state-of-the-art IT Park in Kakkanad, Kochi. (www.lnttechpark.com) L&T Phoenix Infoparks Limited A subsidiary of L&T-UIL, is developing HITEC City II at Gachibowli and Intellicity at Nanakramguda in Hyderabad. Cyber Park Development & Construction Limited An SPV with Software Technology Parks of India (STPI), has developed a state-of-theart Cyber Park in Electronics City, Bangalore. (www.cyberpark.co.in) L&T Arun Excello Realty Private Limited A JV with Arun Excello, formed to promote an integrated township Estancia on GST Road, Chennai. L&T South City Projects Limited A JV between L&T, Dinesh Ranka Associates and Pragnya Trustee and Investment Management Company, to develop an integrated township at Siruseri on the Old Mahabalipuram Road, Chennai L&T Vision Ventures Limited An SPV promoted along with Vizag Urban Development Authority, to develop a township in Vizag on a 55 acre land (2.5 mi sft., 250 villas and 900 apartments, topclass club house and a school)

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CSJ Infrastructure Private Limited An SPV of L&T-UIL promoted to develop an integrated commercial complex in Chandigarh. It will come up on a 20.16 Acres (97607.76 sq. yd) land parcel in the Industrial Area Phase-I of Chandigarh. This Integrated Commercial Complex will have a Shopping Mall of 11.15 lakh sq.ft, an upscale Hotel of 250 rooms and a high end office space of 3.75 lakh sq.ft. L&T Crossroads Limited A JV between L&T and Piramal Holdings Limited, has developed a covered car parking spaces (7 levels) and air-conditioned commercial area in Nariman Point, Mumbai. Hyderabad International Trade Expositions Limited (HITEX) Promoted by L&T Infocity Limited (LTIL), National Academy of Construction (NAC), Hyderabad Urban Development Authority (HUDA), Andhra Pradesh Tourism Development Corporation (APTDC) and Municipal Corporation of Hyderabad (MCH). This state-of-the-art modern air-cooled trade exposition centre has been developed for high-profile international trade fairs and exhibitions. (www.hitex.co.in) Andhra Pradesh Expositions Private Limited Orgniases exhibition / trade fairs and events at the exposition centre in collaboration with national, international event management companies

Machinery & Industrial Products

L&T-Case Equipment Private Limited A joint venture of L&T and CNH America LLC (CNH America LLC is a wholly owned subsidiary of CNH Global N.V., USA, which has manufacturing and marketing facilities worldwide. It is the world's largest manufacturer of loader backhoes). 21

L&T-Case manufactures, markets and provides service and parts support for loader backhoes and vibratory compactors. It also markets a range of utility construction equipment such as skid steers and wheel loaders from CNH Global. L&T Komatsu Limited (LTK) A joint venture of L&T and Komatsu Asia Pacific Pte Ltd., Singapore, a wholly owned subsidiary of Komatsu Ltd., Japan. LTK manufactures hydraulic excavators and high pressure hydraulic equipment, such as cylinders, turning joints, radial flow pumps, axial piston pumps, Cam-lobe radial piston motors, axial piston motors, gear boxes / drives and systems. Komatsu is the world's largest manufacturer of hydraulic excavators, with manufacturing and marketing facilities worldwide. Tractor Engineers Limited (TENGL) A wholly-owned subsidiary of L&T. It designs and manufactures crawler undercarriage systems for excavators, blast-hole drills, bulldozers, amphibious dredgers, mobile crushers, etc. Apron feeders, chain conveyors, scraper conveyors, track modules, and crawler lowers are tailor- made by TENGL for material handling, and mining applications. TENGL manufactures centrifugal slurry pumps, which have found wide acceptance in industrial application and oilfield exploration. Audco India Limited (AIL) A joint venture company with equal equity holding by L&T and Flowserve Corporation, USA It is a leading manufacturer of industrial valves, with four independent and specialised manufacturing facilities. L&T-Demag Plastics Machinery Limited A 50:50 joint venture of L&T and Demag Plastics Group, Germany, it is the market leader in India, involved in the manufacturing of a range of injection moulding machines for processing of thermoplastics and thermosets. The joint venture partner, Demag Plastics Group, Germany is a world leader in the field.

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EWAC Alloys Limited A joint venture of L&T and Messer Eutectic Castolin Holding GmbH, Germany. It manufactures special purpose welding electrodes, brazing rods, welding and soldering fluxes, powder alloys and delivery systems, flux-cored welding wires, cold repair compounds and wear plates.

Information Technology

Larsen & Toubro Infotech Limited (L&T Infotech) Offers comprehensive, end-to-end software solutions and services. Leveraging the domain expertise of the parent company to cater to leading multinational companies, its services encompass a broad technology spectrum.

Financial Services

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ABOUT 360* FEEDBACK360 degree feedback can be used as a tool for assessment in the companies appraisal methodology. 360 degree feedback is a feedback mechanism where a person is provided feedback from all the people he interacts at work, i.e. his/her boss, peers, subordinates and external customers. Feedback can be sought on various managerial and behavioral dimensions. Such multi-rated feedback can then be compiled to prepare a profile of the employee. Such a profile high-lights the following: How well the employee is performing various managerial roles; Employees other strengths and areas needing improvement; as perceived by him/her; and as perceived by others. On the basis of the above feedback, the employee can then prepare action plans to improve his/her managerial effectiveness and have positive impact at the work place. The various benefits of using 360 degree feedback are: It is more objective and not so much affected due to individual biases; It is very involving and participative; It enables better planning of performance; It provides opportunity to improve quality of inputs and service to internal customers; It can be used as a developmental tool: helps discover unknown and blind spots.

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INDUSTRY OVERVIEWCompanies in the Manufacturing & Engineering sector in India

Aarvi Encon Pvt. Ltd.

Aarvi Encon is an ISO 9001:2000 detailed engineering and project management consultancy company providing service to chemical, Petrochemical, power, fertilizer, oil & Gas companies.

Active Controls

Active Controls are one of India's leading companies offering solutions to your liquid level control requirements. Active Controls are manufacturing Liquid level Control Systems since 1993.

Admir Ovens

Today Admir Ovens is the biggest quality industrial oven manufacturer in India manufacturing all types and all sizes industrial plant, Fully Automatic Diesel or Gas Fired (Indirect) Travelling Ovens for all varieties of quality biscuits/bread/rusk (Toast) baking according to International standards to produce both hard and soft dough variety biscuits to any capacity for a varied variety like sweet, salty, Marie, thin arrow root, cream crackers, Enzyme crackers and all sorts of cookies etc.

Advancetek India

Advancetek India is manufacturers and designers of all kind of Sheet Metal Components, Circlips, Press Tools, Jigs, Fixtures, Gauges, Moulds, Prototype Components and Job Works.

Aero Engineers

Aero Engineers is a company Promoted by highly experienced technical personnel who are in the field of design and manufacturing of process equipments for last more than 25 years. They are manufacturing Heat Exchangers, Pressure Vessels, Compressor Accessories, Loading Arms etc.

AMAR Equipments

AMAR Equipments is the largest manufacturer of High pressure Lab. Autoclaves, Glass Autoclaves, Rocker / Shaker Hydrogenator & Magnetic Drive Coupling in India.

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Apex Alloy Steel Pvt. Ltd.

Apex Alloy Steel Pvt. Ltd. - Manufacturers of valve castings such as gate, globe, check, ball and also provide casting for fertilizer, refineries and chemical plants.

Aquadra Forspec Pvt. Ltd.

Aquadra Forspec is an Indian firm, manufacturing Cold Welding Compounds, Epoxy and PU formulations; ranging from high strength putties to brushable coatings. Their products are sold under the brand name of FO-POXY and thhy have a wide range of products for different end applications.. viz. Rebuilding, repairing, resurfacing, sealing, fixing, joining, etc

Aswathy Corporation

Today, a multi divisional organization, operating in various fields pertaining to total engineering solution based at India's business capital - Mumbai.

Batli Boi

Batliboi, founded in 1892, has grown to a position of leadership among engineering companies. The Company's beliefs and values have been the corner stones on which it has built a durable edifice.

Bharani Engineering Industries (P) Ltd.

Bharani Engineering Industries (P) Ltd. was promoted by Mr.K.N.Gopalakrishnan in the year 1973 with the objective of manufacturing and supplying high precision sheet metal components to various reputed Automobile Giants in India.

Bharat Wagon & Engineering Company Ltd (BEWL)

Bharat Wagon & Engineering Company Ltd (BEWL) was incorporated on 8th December 1978 as a Public Sector Unit by take over of two historical wagon manufacturing units of Arther Butler & Co and Britannia Engineering Co, both in Bihar at Muzaffarpur and Mokameh.

Braithwaite

Braithwaite was established in 1913 as the Indian Subsidiary of Braithwaite & Co. Engineers Limited (U.K.), for undertaking fabrication of Structural Steel Works. The Clive works in Calcutta commenced manufacture of wagons for Indian Railways from 1934.

CEE DEE Vacuum Equipment Pvt. Ltd

CEE DEE Vacuum Equipment Pvt. Ltd. Incorporated in the year 1988 by a group

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of engineers, highly experienced in design, manufacturing, research and development of different products based on the applications of High Vacuum Technology.

Choksi Group of Industries

Choksi Group of Industries is a voluntary identity of a number of units - Nine at present. It is a sentiment - a pride and above all a culture - nurtured for the last thirty years with devotion, dedication and diligence. As far as the name "Choksi Group" is concerned, there is - as they say "nothing official about it", yet the commitment to this identity, this culture forms the intangible yet all pervading urge, which moves these units forward.

City Cat International Ltd

City Cat International Ltd Is a part of the CITY CAT GROUP of companies, which is as diverse as it is innovative. Above all City Cat International Ltd Is associated with a sister company named as PRECISION AUTO ENGINEERS which is awarded the prestigious ISO 9002 credential certificate.

Composite Technologies

Composite Technologies is the leader in Innovative Product Development. The work force consists of over 120 personnel that include designers, engineers, technicians and skilled workers.

Compressor Parts Company

Compressor Parts Company manufactures spares and accessories for reciprocating compressors, rotary screw compressor, centrifugal compressor etc..

Cottor Plants (India) Pvt. Ltd.

Cottor Plants (India) Pvt. Ltd. started in a modest manner to manufacture and supply of Vegetable Oilseed Processing Plant Equipment for Cottonseed / Sunflower and other such Oilseeds and accessories in India & Abroad.

Dalal Engineering Pvt. Ltd

Dalal Engineering Pvt. Ltd. is a forty-year-old company specializing in the field of stainless steel fabrication.

DCMS Engineering Company

DCMS has proved its expertise by successfully completing a developmental job of fabrication of copper nickel primary cooling water heat exchanger weighing 5

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tonnes & having size of 1.2 meters & 3.5 meters large which is made for the first time in India.

Electro Plasma Equipments Pvt. Ltd.

They are reputed company dealing with manufacturing & servicing of all plasma cutting & welding machines and torches.

Engineers India Limited

Engineers India Limited was established in 1965 to provide engineering and related technical services for petroleum refineries and other industrial projects.

ESAB India Limited

ESAB India Limited started its operations in 1987 by acquiring the welding business of Peico Electronics & Electricals Limited (now Philips India Limited).

ETA Technology (P) Ltd.

ETA Technology (p) Ltd was established in 1991. ETA manufactures Friction Welding Machines, Test Rigs for autocomponents, a wide variety of special purpose machines and assembly machines.

Extrusion Processes Private Limited

A totally self-sufficient organisation in the manufacture of aluminium collapsible tubes, undertaking all processes and activities involved: slug-making, designing, printing, capping and carton / partition-making.

Freemans FMI Ltd.

FMI Limited the manufacturers of FREEMANS products had a modest beginning in 1950 when Mr. Madan Nayar the present Chairman and Managing Director of the company initiated the manufacturer of Metal Wired Tape for the first time in the country. This marked the beginning of the measuring tools industry in India.

Global K Associates

Global K Associates (GKA), manufacturer and exporter, is known for its expertise in manufacturing machines for Packaging Industries. More importantly today, GKA is providing machinery solution for Flexible Packaging Machines and Flexible Packaging Material.

Gopinath Maharshi Group Of Companies

Maharshi group has experienced and well qualified top management in the field of Mechanical Engineering, Finance, Information Technology & manufacturing.

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Greaves Cotton Limited

Greaves Cotton Limited, established in 1859, is one of Indias leading and well-diversified engineering companies. It manufactures a wide range of industrial products to meet the requirement of core sectors in India and abroad.

Griphold Tools Pvt. Ltd.

Griphold Tools Pvt. Ltd. are an Engineering Industry, manufacturing Heavy Duty Industrial and Torque Tools under the brand name

Hytroc

Hytroc is the oldest and largest manufacturer of hydraulic torque wrenches in the world. In the past 25 years HYTORC has invented every major improvement in the hydraulic torque wrench.

Industrial Jewels Pvt. Ltd.

Founded in the year 1966 with a Swiss collaboration, Industrial Jewels started manufacturing of Jewels for Watches and Measuring Instruments from Synthetic Sapphire and Ruby materials in Bhavnagar.

Inox India Limited

Inox India Limited, an ISO 9001 Cryogenic Engineering Company focused on Cryogenic insulation technology equipment and systems. Largest manufacturer of Cryogenic liquid storage and transport tanks in India and reputed supplier to leading international Gas Companies worldwide like Air Liquide, Air Products, BOC, Linde, Messer, Nippon Sanso, Praxair.

Intellect Associates

Intellect established in 1983. They are one of the Leading Manufactures of Industrial Products in India. They are regularly supplying our products to the leading Engg.Industries, Textile Mills, Cement Factory, Sugar Factory and all Big/Small Industries Public/Private Sector undertaking their entire satisfaction.

Jain Hydraulics Pvt. Ltd.

JHPL is well known in the feild of scrap processing machines of ferrous and nonferrous scrap, paper waste, cotton waste or any other waste material, Pressing and Bundling. There is no other parallel in India.

M. S. Industries

Ever since the establishment of M.S. Industries in 1972, it has pioneered and lead

29

the way as manufacturers of central vacuum systems and constituents. From vacuum pump, valves, metalising plants and other components, their product gives optimum reliability.

Mazda Group of Companies

Mazda Group of Companies has originated 4 decades back and is constantly launching and manufacturing innovative products. It is a group of companies which manufactures different products related mainly to Building Industry.

Minerva Engineering Tools Co.

Minerva Engineering is a leading Manufacturer of Aluminium & Zinc Pressure Die-Casting Components as well as Moulds & Precision Turned parts on Automats with experience of 15 years.

Modern Engineering Company

Modern Engineering Company is today one of the largest dealers in Pumps and Motors in India.

MOI Engineering Limited

MOI Engineering Limited is a well known and established name in precision engineering and machine building since 1965 and an ISO 9001 company. They are commited to Quality and Customer satisfaction, which demands constant upgradation of our products to meet international standards.

National Engineering Industries Ltd

National Engineering Industries Ltd., JAIPUR was founded in the year 1946 as a pioneer industry in the field of bearing manufacture by the renowned industrialist, late Shri B.M. Birla, under the name of "National Bearing Company Limited."

Power Packaging Co.

Power Packaging Co. is an engineering Company consisting of a team of Mechanical and Electrical engineers and technocrats with unmatched expertise . The Company is equipped with full fledged design and engineering facilities backed by computer aided design.

Protosystech

Protosys offers Sample before the tool, where rapid prototype is developed from stl data using fdm technology. Few replicas can be produced by casting epoxy,

30

polyurethane, uv resins into rtv silicon molds. CT/MRI scan data is converted to 3D models.

Quality Engineering Co

Quality Engineering Co as the leading reconditioner in Pune area from twelve years. They have completed reconditioning of various types of machines successfully and that too within the scheduled times.

R.S. Engineering Works

R.S. Engineering Works concentrates on the development, manufacture and sale of LEVELTROL liquid level gauges, ARSEN sight flow indicators, FLOCLEAN Strainers, and accessories.

Rachamallu Forgings Pvt. Ltd.

It is a leading manufacturer of Open-Die Forgings located at Hyderabad and well connected with all major industrial cities of India. The company initially catered to the requirements of Machine tool and water well rig industry and gradually entered into critical areas like Defence, Space and Nuclear power sectors.

Ranflex India Pvt. Ltd.

RANFLEX is a certified ISO 9001 / QS 9000 Company which has specialised in the manufacture of Metallic Bellows, Expansion Joints, Annular Corrugated Hoses and Exhaust Manifold Systems.

Richardson & Cruddas Ltd

Established in 1852, Richardson & Cruddas has grown into an engineering establishment catering to varied industrail applications. A Bharat Yantra Nigam Limited subsidiary since 1972, today Richardson & Cruddas has grown into 4 units with each specializing in distinctive services and products.

RJ Associates (Engineers) Pvt. Ltd.

RJ ASSOCIATES is an Indian engineering company with several technology tie ups, undertaking consultancy, engineering and contracting services for projects in Oil & Gas (onshore as well as offshore), Chemical, Petrochemical, and Metallurgical industries, including Refineries.

Rockwin

Since 1976, Rockwin has been producing high performance flowmetering equip-

31

ments and has to its credit several new developments in technology and equipments for process control instrumentation.

Sae India

The Society of Automotive Engineers is your one-stop resource for technical information and expertise used in designing, building, maintaining, and operating selfpropelled vehicles for use on land or sea, in air or space.

Sanmar Group

Sanmar group is one of the largest industrial groups in South India. These include an ability to source, develop and assimilate the best technologies in the world.

SEC Machines

SEC is a team of specialists, engineers and technocrats working together to manufacture and continuously improve welding and cutting support machines.

Sharp Tools

Sharp Tools began operations in 1967 by its managing partner, Mr. K.K. Ramaswamy with just five people and a dream to build a business empire.

Shoghi Communications Pvt. Ltd.

Shoghi Communications Ltd an ISO 9001-2000 accredited enterprise, is an Engineering and System Integration company focused on delivering solutions in the field of Strategic Electronics, developing high grade Encryption Technologies and a leading provider of Analysis and Surveillance solutions.

Siroplast Limited

Siroplast is building excellence through commitment to quality. The mission is to be a leading provider of composite solutions to a wide range of potential end users.

STS Material Testing Systems

STS Material Testing Systems are Innovative in Design, Affordable in Price, Fully Komputerised ( through High Tech STS Tensile Card ), Easy-to-use Startest Tensile Software Program.

Sungov Engineering Pvt. Ltd.

Sungov Engineering established a decade ago is a manufacturer and exporter of Strainers & Filters. The company is professionally managed adopting adequate quality systems / measures for achieving consistent quality of products.

32

Telecommunications Consultants India Ltd.

TCIL is a leading ISO - 9001 certified public sector enterprise under the Ministry of Communications. TCIL is a premier telecommunication consultancy and engineering company with a strong base in information technology (IT).

The Bharat Yantra Nigam Ltd (BYN)

The Bharat Yantra Nigam Ltd (BYN) is a holding company having in its fold six technically competent engineering organisations forming one of the most versatile engineering groups.The Group caters to the core sector industries with over 50 products, most of which are backed by foreign collaboration.

The Braithwaite Burn & Jessop Company Limited (BBJ)

The Braithwaite Burn & Jessop Company Limited BBJ's growth was synonymous with the overall growth of independent India. BBJ's towering achievements are amply evident in India's major Rail Bridges linking East with West and North with South.

The Magum Group

The Magnum Group offers enginnering and architectural servies such as HVAC, structural, plumbing, fire protection, security system, water/sewage treatment design, etc.,

U T Limited

UT Limited has three plants Budge Budge (near Kolkata) in West Bengal, Hosur (near Bangalore) in Tamil Nadu and Sahibabad (near Delhi) in Uttar Pradesh.

Vaishnav Engineering Works

They are the Manufacturers of manufacturer /exporter of all kinds of Scaffolding Products, Hand Tools, Builder Tool and Heavy Tools. They are exporting these products to many countries like USA, UK, Germany, Dubai, Malaysia, Ethiopia, Austria, Australia, Denmark and Italy.

Vedant Equip Sales & Services Pvt. Ltd.

Vedant Equip Sales & Services Pvt. Ltd., a major trading organisation providing total engineering solutions in India and abroad. They offer complete technical guidance for selection of products,suggestion on import substitution and selection of equivalents & servicing of all the products.

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Weldmetals India Private Limited (WIPL)

Weldmetals / WIPL, having commenced operations in 1995 in India in a small manner by manufacturing the Resistance welding products.

Wintech Engineers

Wintech Engineers is an ISO 9001: 2000 Company, manufacturing Top Quality High Pressure Instrumentation Tube Fittings, Pipe Fittings, Valves and Valve Manifolds.

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LITERATURE REVIEWCONDUCTORS/ASSESSORS OF 360* FEED BACK SYSTEMAccording to Edwards The employees assessment/ appraisal staff usually consists of managers who are one to three levels above the position for which people are assessed. Psychologists can also be used but they are generally preferred at high levels in the organization, or when general management dimensions are required for the job. However, it is always better to train the organizations senior managers as assessors for the assessment or appraisal of the employees. The relationship between the assessors and participants also needs to be considered while selecting assessors. If assessors are the line managers of the participant population, care is needed to avoid placing a line manager in the position of directly assessing a member of his/her own staff. This will avoid assessment errors arising from previous knowledge and perceptions of the participant and will probably also alleviate extra pressure for the participant.

ASSESSOR TRAINING FOR 360* FEEDBACKA typical assessor training program focuses on the following: 1. 2. 3. Competency framework familiarization Training on interviewing techniques Group process observation skills training

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COMPETENCY FRAMEWORK FAMILIARISATIONAs the competency framework is used as the basis for selection & development planning, all assessors need to undergo familiarization training. This enables the assessors to understand what competencies are, assign behavior to appropriate competencies and give feedback in behavioral terms.

INTERVIEW TRAINING (ESPECIALLY BEHAVIOUR EVENT INTRVIEW)This is mainly given since many assessment centre methods use such interview to acquire evidence of performance. The training aims at providing assessors with an interview framework to develop the assessors questioning and listening skills and lay the foundation of inter assessor reliability.

GROUP PROCESS OBSERVATION SKILLS TRAININGThe outcome of this process generally improves the Group dynamics and the leadership qualities of the assessors working in groups.

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EFFECTIVENESS OF 360 DEGREE FEEDBACKSThe following changes are most frequently noticed in behavior of the employees after the 360 Degree Feedback: 1. MORE FOCUS ON LEADERSHIP ROLES

ARTICULATING VISIONSpending more time on communicating vision and goal setting. Being more developmental as against benevolent or critical. Putting attention on concern for individual needs rather than preoccupy with own.

2. INTERNAL CUSTOMER ORIENTATION Better interaction with colleagues and subordinates Learning from colleagues and benefiting from their experiences Rapport with seniors

3. INCREASED FOCUS ON FOSTERING A TEAM SPIRIT Setting high goals for team Participative management Conflict management Developing mutuality Sensitivity to others feelings Collaborative culture Cross functional review mechanism

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MARKED INCREASE IN DELEGATION AND SUBORDINATES DEVELOPMENT Empowering subordinates to take higher responsibilities Leaving routine decisions to lower levels Not interfering in matters being handled by subordinates Encouraging subordinates to learn from their mistakes and being very patient with them.

PREDOMINANT BEHAVIOURAL CHANGES Assertive Clear communication Initiative Patient Proactive Time management

According to Robin in terms of the impact on the unit/ department/ organization, the employees world wide generally feel that they benefit from the feedback which has generated increased motivation especially among their subordinates. It also increases sensitivity to the managerial and leadership roles of the employees and results in better working relationships and a more congenial atmosphere. The changes occur not only because the feedback come from people who know them best at the work place but also because they were made aware of the differences between self perceptions and reality. 38

THE FEEDBACK DEFINITELY HAS MARKED POSITIVE EFFECTS SUCH AS: Strengthening of leadership competencies Increased customer orientation Greater sensitivity Increased team orientation.

360 degree feedback does have its share of negative impact. Once main reason is that people providing the feedback seem to feel that once the individual is made aware of his/her weaknesses, there will be dramatic improvements almost immediately. Automatically others expectations rise with respect to the individuals behavior and increased sensitivity of the participant may also get exploited. According to Ramaswamy Action plans are most effective when shared with the other organizational members. This is mainly because changes desired in the individual undergoing 360 degree feedback require considerable organizational support. It would be useful for the organization to look at how it can support the individual in terms of his/her action plans to improve. Some useful observations on organizations planning to use 360 degree feedback could go about the intervention. Some useful lessons that can be drawn are: 360 degree feedback should be projected as a developmental tool before using it for appraisal. The most important aid in making it successful is to provide organizational support for planning and managing it as a change program. Initially it should be used for top management and then gradually at all managerial levels.

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The system should be communicated across the organization. The objectives should be well defined. The HRD department can perform a significant role in this. Unless all apprehensions are cleared, such a program cannot be implemented successfully. Effectiveness would be maximized by continual organizational monitoring. Quarterly review programs of improvements post workshop would be a good idea. Moreover, those who have undergone the feedback could meet formally to discuss action plans, experiences, etc. Organizational support should be provided to aid individual development. This could be in the form of appointing seniors of participants as mentors to continuously counsel and encourage them. A good way of integrating the system would be to add the change plan as a Key Result Area in their performance appraisal; action plans will be reviewed like any other tasks and targets along with your regular performance appraisal. This is a good practice to follow. Convert it into 360 degree appraisal. This is the most logical step to follow. This is especially applicable for those organizations that are looking for a 360 degree appraisal system. They may have some hesitation to start an appraisal program and they may use the feedback as a starting point only. In such cases after the participants have experienced feedback once their inhibitions and apprehensions may become less. They get well prepared to receive feedback from others. In fact some of the participants may develop even a thirst from feedback. Therefore a logical extension of the program is to design a 360 degree appraisal program and make it a part of the appraisal process

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annually. The team that went through the program with the help of the in-house HR team or a 360-degree expert could design a simple format.

Conduct re-assessments on a periodic basis. Some of the participants undertake resurveys using the same questionnaires after six months to a year. The RSDQ questionnaire is long and may face problems for an organization-wide re-assess on a continuous basis. The candidate to re-assess to examine the changes could use a shorter version of it. Reward change with the help of reviewing officer. Another way of reinforcing the change process is to notice changes and reward the same. This could be done in a systematic way by instituting change awards or integrating into the reward or recognition system some element for changes due to 360 degree feedback. Spread success stories, document and reward successes. Collect the trends in relation to commonly shared weaknesses and initiate training and other organizational actions. When a candidate goes through a 360 degree feedback program on RSDQ model, data about him is generated on nearly 165 dimensions. Benchmarking data is also provided which gives company-wide trends. Common observations form such extensive data can be traced to certain organizational factors. This can help the organization to develop an agenda for its training and other organization development activities. Use data for potential appraisal, career planning and development. This is a most common use in the fortune 500 companies. In such a case it should be announced in the

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beginning and the data are made available to the organization. The data could be used for placement and promotion decisions. This is only an additional data and should not be the sole input. The data could also be used for career counseling purposes. 360 Degree has a lot of potential as a change management program. LARSEN & TOUBRO LTD experience shows the same. It is hoped that many corporations will exploit the potential of the same.

Figure 1 shows employee receiving feedback from the persons he is in contact with.

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360 DEGREE FEEDBACK PROCESS AT LARSEN & TOUBRO LTDLARSEN & TOUBRO LTD introduced the formal 360 degree feedback system in 1995. The primary objectives were to: Provide multiple-source feedback as input to enhance inter-personal competence. Promote core LARSEN & TOUBRO LTD Values and attributes among all staff. Foster a non-hierarchical culture through multiple role sensitivity. Use the formal opportunity of Performance Review to build developmental / coaching relationship between the Reviewer and the Reviewee. The system, known as Individual Effectiveness Feedback (IEF), has been carefully administered over the last 10 years, refining it each year based on the learning from the previous year.

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FEATURES OF IEFIEF-Larsen & Toubro Ltds own method of 360 degree survey is used by all the 3800 staff of the company across all levels and positions. It is based on a questionnaire which has 5 key Values and 25 key behavioral attributes on which every LARSEN & TOUBRO LTD employee gives and receives feedback on a scale of 4. A feedback team is formed around each LARSEN & TOUBRO LTD employee comprising of his/her Peers, Team Members (LARSEN & TOUBRO LTD parlance for subordinates) and the supervisor. Only in a few cases the external customer is included. The questionnaire is administered once a year worldwide a little ahead of the formal annual appraisal discussion. All the filled in survey instruments are collected centrally and analyzed and a consolidated score card is produced for each individual and given to him/ her well in time for a discussion with the supervisor along with the annual appraisal. The output the individual receives shows the trends of scores he/she has received over years on each key parameter in a graphical form and also his/ her own self-assessment on these parameters. The results are kept anonymous and it can not be known who has given what rating to whom. The whole process is web-enabled and LARSEN & TOUBRO LTD employees can access the form as well as participate in the process through the HR web-site on the companys intranet.

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IMPLEMENTATION

The system is administered by the HR function. Elaborate planning is done based on a review of how it was used the previous year. User feedback is invited though focused survey on e-mail and the same is factored in to refine the tool for the next year. Detailed education is carried out both through refresher session for the old users and detailed training for the first time new users.

ISSUES AND LESSONSThe success of the 360 degrees feedback at LARSEN & TOUBRO LTD can be attributed to the following key factors: Absolute top management commitment. User-friendly design, simple form and easy workflow. Linkages with performance management system in that the supervisor is required to enquire about the IEF report of the reviewee and give advice on how the individual might improve on the core values and key attributes. Use of the tool purely as a developmental input and disassociation from the reward system. Effective education, communication and training in support of the system.

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SWOT ANALYSIS

Strengths

Weakness 1. No rural penetration

1. Great infrastructural support 2. Decent & Growing market share. 3. Efficient service 4. Good brand image and awareness

2. International quality standards are not followed 3. Saturation of urban market

Opportunity

Threats

1. Rural sector 2. International sector 3. Market of urban poor

1. New entrants such as Reliance, OM KOTAK 2.Government policies could be a threat

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RATIONALE OF THE STUDYThe human inclination to judge can create serious motivational, ethical and legal problems in the workplace. Without a structured appraisal system, there is little chance of ensuring that the judgments made will be lawful, fair, defensible and accurate. Performance appraisal systems began as simple methods of income justification. That is, appraisal was used to decide whether or not the salary or wage of an individual employee was justified. The process was firmly linked to material outcomes. If an employee's performance was found to be less than ideal, a cut in pay would follow. On the other hand, if their performance was better than the supervisor expected, a pay rise was in order. Little consideration, if any, was given to the developmental possibilities of appraisal. If was felt that a cut in pay, or a rise, should provide the only required impetus for an employee to either improve or continue to perform well.

Since performance appraisal is going a generic change and moving beyond a mere input for compensation management and more towards personal growth and enhancement of skills I have chosen this topic for my research .

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OBJECTIVE OF THE STUDYLARSEN & TOUBRO LTD introduced the formal 360 degree feedback system in 1995. The primary objectives were to: Provide multiple-source feedback as input to enhance inter-personal competence. Promote core LARSEN & TOUBRO LTD Values and attributes among all staff. Foster a non-hierarchical culture through multiple role sensitivity. Use the formal opportunity of Performance Review to build developmental / coaching relationship between the Reviewer and the Reviewee.

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RESEARCH METHODOLOGY

METHODOLOGY[

A Research Methodology defines the purpose of the research, how it proceeds, how to measure progress and what constitute success with respect to the objectives determined for carrying out the research study. The appropriate research design formulated is detailed below. Exploratory research: this kind of research has the primary objective of development of insights into the problem. It studies the main area where the problem lies and also tries to evaluate some appropriate courses of action. The research methodology for the present study has been adopted to reflect these realties and help reach the logical conclusion in an objective and scientific manner. The present study contemplated an exploratory research. I have carried out a research which is both qualitative and quantitative in its support. The qualitative approach applies to both, descriptive and inductive forms of research. While as in case of quantitative approach, an extensive use has been made of the literature available to carry out a detail research on the nature of the problem. I have chosen Larsen & Toubro Ltd as the target company for my research study.

NATURE OF DATA:I have made use of the primary sources of data in eliciting information.

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PRIMARY DATA:

The primary source of data involves oral interviews and questionnaires. These sources are inadvertently expected to yield more qualitative data and results.

SAMPLE SIZE

:

226 Employees of Larsen & Toubro Ltd NCR DELHI

SAMPLE UNIT : SURVEY AREA :

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SCOPE OF THE STUDYThe scope of my study ranges from understanding the very concept of 360 degree feedback theory, the method of implementation, its benefits and its limitations in regard to Larsen & Toubro Ltd.

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HYPOTHESIS

1.To study the 360 degree feedback system of the sales

department at Larsen & Toubro Ltd.2.To describe the method of implementation of 360 degree

feedback for DSR and Assistant manager at Larsen & Toubro Ltd. .

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DATA ANALYSIS

The data, after collection, has to be processed and analyzed in accordance with the outline laid down for the purpose at the time of developing the research plan. This is essential for a scientific study and for ensuring that we have all relevant data for making contemplated comparisons and analysis. I have conducted a graphical analysis based on the responses received from the persons questioned and interviewed. Once the interview was over, the responses received were being grouped together, and a graphical presentation and analysis has been made for every set of questions.

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PART AI AM SATISFIED WITH MY CURRENT JOB PROFILE Strongly agree Agree Disagree Strongly disagree

40% 35% 30% 25% 20% 15% 10% 5% 0% strongly agree agree disagree strongly disagree

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MY

JOB

PROVIDES

AMPLE

OPPORTUNITY

TO

DISPLAY

MY

KNOWLEDGE AND SKILL SET. Strongly agree Agree Disagree Strongly disagree

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MY

SALARY

AND

BENEFITS,

IN

COMPARISON

OF

THAT

OF

EMPLOYEES OF MY LEVEL AT OTHER SIMILAR COMPANIES IN MY REGION, ARE SUFFICIENT. Strongly agree Agree Disagree Strongly disagree

30% 25% 20% 15% 10% 5% 0%strongly agree agree disagree strongly disagree

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I FIND MY SALARY AND BENEFITS ARE SUFFICIENT FOR THE AMOUNT OF RESPONSIBILITY I HOLD IN MY JOB. Strongly agree Agree Disagree Strongly disagree

35% 30% 25% 20% 15% 10% 5% 0% strongly agree agree disagree strongly disagree

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MY SUPERVISOR PROVIDES REGULAR FEEDBACK AND ENCOURAGES IN MY INITIATIVE& Strongly agree Agree Disagree Strongly disagree

35% 30% 25% 20% 15% 10% 5% 0% strongly agree agree disagree strongly disagree

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I AM RECOGNIZED FOR MY GOOD / HARD WORK Strongly agree Agree Disagree Strongly disagree

35% 30% 25% 20% 15% 10% 5% 0% strongly agree agree disagree strongly disagree

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I AM SATISFIED WITH THE WAY I AM RECOGNIZED IN THE ORGANIZATION. Strongly agree Agree Disagree Strongly disagree

30% 25% 20% 15% 10% 5% 0% strongly agree agree disagree strongly disagree

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PART-B1. Do you want something extra from your current job profile? YES, Then what______________________ NO, Then why ______________________

80% 70% 60% 50% 40% 30% 20% 10% 0% yes no

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2.

Are you satisfied with the Reimbursement Scheme of Larsen & Toubro Ltd regarding: a. Mobile a. Conveyance YES YES NO NO ______________________________

Any other, please specify

40% 35% 30% 25% 20% 15% 10% 5% 0% mobile conveyance other

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3. Are you satisfied with the Incentive Structure at LARSEN & TOUBRO LTD? YES NO,WHY

60% 50% 40% 30% 20% 10% 0% yes no

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4.

Is the Performance Appraisal System at LARSEN & TOUBRO LTD taking care of both qualitative and quantitative aspect of your job? YES NO

30% 25% 20% 15% 10% 5% 0% strongly agree agree disagree strongly disagree

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5. YES NO

Do you find any value addition in the knowledge and skill you possess?

80% 70% 60% 50% 40% 30% 20% 10% 0%

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6. YES NO

Do you get Need - Based training and coaching?

70% 60% 50% 40% 30% 20% 10% 0% yes no

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7.

Are you aware of the various Growth Paths available to you at LARSEN & TOUBRO LTD? YES NO

90% 80% 70% 60% 50% 40% 30% 20% 10% 0% yes no

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8.

Do you get ample support from your supervisor to resolve: Customer related query Product related query Process related query YES NO YES ` NO YES NO

80% 70% 60% 50% 40% 30% 20% 10% 0% yes no customer related query product related query process related query

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9. Do you feel that the way you are recognized in the organization needs any kind of improvement? YES , then specify______________ _____________________ NO

80% 70% 60% 50% 40% 30% 20% 10% 0% yes no

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10. Have you been ever abused / reprimanded / humiliated in front of your team members? YES NO

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% yes no

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TABULAR REPRESENTATION:

STRONGLY JOB PROFILE SALARY INCENTIVE RECOGNITION CAREER GROWTH SUPERVISOR WORK CULTURE PERSONAL AGREE 42.69911504 13.05309735 52.35988201 43.28908555 79.49852507 7.17699115 51.99115044 22.56637168 AGREE 43.03097 48.89381 0 35.84071 DISAGREE 6.305309735 28.98230088 0 9.808259587

STRONGLY DISAGREE 5.64159292 6.415929204 34.07079646 13.27433628

0.294985 4.572271386 16.51917404 9.026549 5.663716814 12.12389381 0 1.548672566 40.7079646 50.44248 20.3539823 8.259587021

The above table represents the responses of approx. 226 employees (DSRS) on the basis of eight parameters depicted percentage-wise. The employees are highly satisfied with the fact that they have the scope for career advancement in Larsen & Toubro Ltd as it has a brand-name in the market. The following is the graphical representation of the above facts in which it is clearly visible that the work culture is the prominent cause for employee dissatisfaction in LARSEN & TOUBRO LTD. But the point of satisfaction for the organization that the employees strongly agree that they have a fair career growth path while being in LARSEN & TOUBRO LTD.

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GRAPHICAL REPRESENTATION:C O N S O L ID A T E D A N A L Y S IS41.7% 79.4%S TRO NG LY A G R EE A G R EE D IS A G R E E S TRO NG LY D IS A G R E EIV E Y SU PE RV IS OR WO RK CU LT UR E GN IT IO N GR OW TH SO NA L PE R E PR OF IL AR SA L

90 80 70 60 50 40 30 20 10 0

IN PERCENT

IN C

EN T

RE CO

JO B

1. Job Fitment: There is no greater tragedy in business than putting competent employees into jobs in which they are destined to fail. When good people are put into jobs to which they do not fit, their potential is wasted. Job Match or Job Fit is the single most important factor in job success. Yet, many employers overlook job match when allocating human capital 2. Salary: Of the various hierarchical needs described by Maslow, only some have a direct link to compensation. Clearly, money is a primary factor enabling the individual to meet physical needs. Money also is key in achieving safety and security, primarily in the form of adequate insurance and retirement savings. Even the need for prestige and status, as satisfied by a new BMW or a spacious beach house, requires substantial funding.

CA RE ER

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3.

Incentives: More companies are using incentives to motivate employees to

stay fit and healthy. The result? Theyre saving money and reducing absenteeism. Remunerative incentives (or financial incentives) are said to exist where an agent can expect some form of material reward especially money in exchange for acting in a particular way. Incentive structures, however, are notoriously more tricky than they might appear to people who set them up. Human beings are both finite and creative; that means that the people offering incentives are often unable to predict all of the ways that people will respond to them. Thus, imperfect knowledge and unintended consequences can often make incentives much more complex than the people offering them originally expected, and can lead either to unexpected windfalls or to disasters produced by unintentionally perverse incentives.

4. Rewards and Recognition: The main objective of various rewards and recognition system should be to recognize individuals and teams, in a timely and effective way, for their exceptional contributions to their office, their department, or to the organization as a whole. This helps to provide a continuum of opportunities to acknowledge and recognize members of LARSEN & TOUBRO LTD.It helps LARSEN & TOUBRO LTD to foster an environment of shared success and commitment. Such programs must understand that each individual can make a difference. It will also help LARSEN & TOUBRO LTD in highlighting behaviors and activities that have benefited LARSEN & TOUBRO LTD and showcase employees as role models. Therefore it must be a fair and flexible practice that is woven into the fabric of the LARSEN & TOUBRO LTD culture.

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5. Career Enhancement: The Career Enhancement Program should be designed to encourage eligible classified employees who are paid from the salary schedule to enter a self-development program which may help them achieve improved success in their current job, upgrade their employment skills, provide them an incentive to move up within their own career ladder, or move into an alternative career ladder. 6. Supervisors Interaction: Supervisors interaction with its employees is a very important aspect in any organization as they are the people who drive the Direct Sales Representatives to work hard and get business for the organization.

7. WORK CULTURE:A young, vibrant work culture greets each employee at Fortune. Every individual in the organization is a vital cog that keeps the Fortune wheel turning. This spirit of teamwork and camaraderie is imbibed into all employees regardless of their stature or position. 8. Personal Reasons: It is also very important for an employee to have a close fit between the personal and professional life.

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RESULTS/FINDINGS

There is a clear awareness of the term 360* feedback system among the employees of Larsen & Toubro Ltd, i.e. employees are aware as to what is 360* feed back system and the aspects related to it. It has been found that among the employees of different departments at Larsen & Toubro Ltd, the appraising authority is generally the head of that particular department, i.e. the performance of the employee is being judged, monitored, appraised by the head of the department in which the employee works. It has been found that the appraisal activity is conducted level wise at Larsen & Toubro Ltd, i.e. different appraisal activities for the different levels of the employees. It is a very important aspect of clear communication between two same or different levels of employees, that their stays a free flow of communication between the subordinates and the superiors. This free flow of communication ensures that there is no confusion or misunderstanding between the employees and it becomes easier to fix the job targets. Eventually it creates a healthy work environment which in turn ensures the benefits to the overall organization. It is very necessary for the management to convey the standards on which the performance of the employee will be appraised. The employee should know very clearly as to what enhances or reduces his performance in the company.

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The employees of the Larsen & Toubro Ltd completely agree that the standards of 360* Feedback System are very clearly documented and communicated to them. The response of the employees is somewhat undeceive when it comes to adjudging the transparency of the 360* Feedback system at Larsen & Toubro Ltd.

An employee should always know as to who is observing his performance in the company, i.e. Larsen & Toubro Ltd. There is general consent among the employees regarding this aspect. The employees at Larsen & Toubro Ltd are being promoted on the basis of an appropriate methodology, i.e. there is a general consensus among the employees regarding the promotion methods in the company. There is good communication and consultancy between the employees and their bosses regarding the decision of training areas, which is a healthy sign for the organization. It reflects the free communication among the employees in the organization. Discipline, motivation level, fulfilling deadlines, punctuality, achieving targets is the attributes which should be primarily looked into for measuring the performance of the employee in the organization. Professional ability and job responsibility are the two characteristics which should be given the top most priority for evaluating and appraising the performance of an employee.

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Feeding and development has been considered the most important aspects which is identified during the appraisal of an employee. Expectation set and the performance standards for jobs are the two factors with which the actual performance of the appraisee should be compared for determining the appraisal ratings. The post appraisal session is one of the most important aspects of an appraisal system. It gives a chance to the employee to make amendments and improvements in their performance through the training and development programmes. The employees at Larsen & Toubro Ltd are divided about the issue of deriving maximum benefits from the appraisal process. More than half of the employees are of the view that the Larsen & Toubro Ltd does not maximize the due benefits from the appraisal process.

LIMITATIONS

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The only limitation in this survey was that I could not conduct a survey on a big scale, due to the time constraint.

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SUGGESTIONSThe following are the points of suggestions towards the effective implementation and practices of 360* feedback system at LARSEN & TOUBRO LTD

ENCOURAGE DISCUSSION Research studies show that employees are likely to feel more satisfied with their appraisal result if they have the chance to talk freely and discuss their performance. It is also more likely that such employees will be better able to meet future performance goals. Employees are also more likely to feel that the appraisal process is fair if they are given a chance to talk about their performance. This especially so when they are permitted to challenge and appeal against their evaluation.

CONSTRUCTIVE INTENTION

It is very important that employees recognize that

negative appraisal feedback is provided with a constructive intention, i.e., to help them overcome present difficulties and to improve their future performance. Employees will be less anxious about criticism, and more likely to find it useful, when the believe that the appraiser's intentions are helpful and constructive

In contrast, other studies have reported that "destructive criticism" - which is vague, ill-informed, unfair or harshly presented - will lead to problems such as anger, resentment, tension and workplace conflict, as well as

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increased resistance to improvement, denial of problems, and poorer performance.

SET PERFORMANCE GOALS

It has been shown in numerous studies that goal-setting

is an important element in employee motivation. Goals can stimulate employee effort, focus attention, increase persistence, and encourage employees to find new and better ways to work.

The useful of goals as a stimulus to human motivation is

one of the best supported theories in management. It is also quite clear that goals which are "...specific, difficult and accepted by employees will lead to higher levels of performance than easy, vague goals (such as do your best) or no goals at all."

APPRAISER CREDIBILITY It is important that the appraiser (usually the employee's supervisor) be wellinformed and credible. Appraisers should feel comfortable with the techniques of appraisal, and should be knowledgeable about the employee's job and performance. When these conditions exist, employees are more likely to view the appraisal process as accurate and fair. They also express more acceptances of the appraiser's feedback and a greater willingness to change.

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BIBIOGRAPHY

1. Edwards, Mark R. and Ewen, Ann J. 360 Degree Feedback: The powerful new model for employee assessment and performance improvement. AMACOMAmerican Management Association, 1996. 2. Novack, Kenneth, M. 360 Degree Feedback: The whole Story. Training and Development, January 1993, pp. 69-72.

3. Rao, T.V. and Rao, Raju. 360 Degree Feedback and performance management systems, volume, New Delhi: Excel Publications, 2006, revised edition, 2007.

4. Rao, T.V., Mahapatra, Gopal, Rao, Raju and Chawla, Nandini, 360 Degree Feedback and performance management systems, volume, New Delhi: Excel Publications, 2007. 5. Rao, T.V. Making 360 Degree Feedback work, Human Capital, August 1999.

6. Sharma, Radha. 360 Degree Feedback: Competency Mapping and Assessment Centers, New Delhi: Tata McGraw Hill, 2007.

7. Tornow, Walter W. Manuel London and CCI Associates. Maximising the value of 360 Degree Feedback, Jossy-Bass Inc., Publishers, 1998.

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ANNEXURESQUESTIONNAIREIn order to maintain a positive working environment at L & T , we request your cooperation in providing suggestions and comments to assist us in accomplishing this goal. You are a valuable source of Information regarding working conditions. Please be candid with your answers so we may gain from your experience. THANK YOU

INSTRUCTIONS:1.) Please read the questions carefully before answering them. 2.) The questionnaire is divided into 2 segments- PART A & B. 3.) Kindly tick your choice from the options given-agai4Isttlie questions. 4.) All the information acquired is highly confidential and shall be kept secret. (So please dont write your name, pan Id, team leader name anywhere)

DESIGNATION _____________

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PART A

1 2 Strongly Agree agree I find that the nature of my work is well defined to me. I am satisfied with my current job profile. My job provides ample opportunity to display my knowledge and skill set. My salary and benefits, in comparison of that of employees of my level at other similar companies in my region, are sufficient. I find my salary and benefits are sufficient for the amount of responsibility I hold in my job. My supervisor provides regular feedback and encourages in my initiative& I am recognized for my good / hard work I am satisfied with the way I am recognized in the organization. Disagree 3

4 Strongly disagree

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PART-B11. Do you want something extra from your current job profile? YES, Then what______________________ NO, Then why ______________________ 12. Are you satisfied with the Reimbursement Scheme of Larsen & Toubro Ltd regarding: a. Mobile a. Conveyance YES YES NO NO

Any other, please speci1 ______________________________ 13. Are you satisfied with the Incentive Structure at LARSEN & TOUBRO LTD?

YES NO,WHY 14. Is the Performance Appraisal System at LARSEN & TOUBRO LTD taking care of both qualitative and quantitative aspect of your job? YES NQ 15. Do you find any value addition in the knowledge and skill you possess? YES NO

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16. Do you get Need - Based training and coaching? YES NO 17. Are you aware of the various Growth Paths available to you at LARSEN & TOUBRO LTD? YES NO 18. Do you get ample support from your supervisor to resolve: Customer related query Product related query Process related query YES YES YES NO ` NO NO

19. Do you feel that the way you are recognized in the organization needs any kind of improvement? YES , then speci1______________ _____________________ NO Have you been ever abused / reprimanded / humiliated in front of your team members?

YES NO Thanks for taking out sometime of yours for filling up this questionnaire

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