Roopa Chalkageri Performance Appraisal System

Bharati vidyapeeth University, Pune.

“A STUDY OF

PERFORMANCE APPRAISAL SYSTEM”

IN

KIRLOSKAR FERROUS INDUSTRIES PVT LTD, SOLAPUR

SUBMITTED IN PARTIAL FULFILLMENT OF THE CURRICULAM REQUIREMENTS

OF

MASTER OF BUSINESS ADMINISTRATION

BHARTI VIYAPEETH UNIVERSITY, PUNE

SUBMITTED BY

ROOPA.SIDDHARAM.CHALAGERI

UNDER THE GUIDENCE OF

Prof. Mr. AVINASH DHAVAN (Faculty Guide)

Mr. HRUSHIKESH KULKARNI (Industry Guide)

DEPARTMENT OF MBA

THROUGH

THE DIRECTOR

BHARATI VIDYAPEETH

ABHIJIT KADAM

INSTITUTE OF MANAGEMENT AND SOCIAL SCIENCES,

2009-2010

CERTIFICATE

AKIMSS, SOLAPUR. 1


This is to certify that the project report entitled “A STUDY OF PERFORMANCE

APPRAISAL SYSTEM” BY ROOPA CHALAGERI.

In partial fulfillment of submission work for the post graduation course leading to Master

Degree in Business Administration is carried out under the supervision and guidance of MR.

AVINASH DHAVAN sir and the same is forwarded to the university.

I also wish her all the best for her career & success to every step she moves in life.

Place: Solapur.

Date:

Prof. Sorab Sadri (PhD. London)

Director

Abhijit Kadam Institute of Management

Social Science, Solapur

AKIMSS, SOLAPUR. 2


CERTIFICATE

This is to certify that the project report entitled “A STUDY OF PERFORMANCE

APPRAISAL SYSTEM” is a bonafide report of project work done by Mrs. ROOPA

SIDDHARAM CHALAGERI in partial fulfillment of the requirement for the Trimester-IV of

MBA (HR) under my guidance and direction.

To the best of knowledge and belief the matter presented in this report has not been

submitted earlier.

PLACE: SOLAPUR

DATE:

Prof. Mr. Avinash Dhavan

(B.Sc, MBA, M.Phil)

AKIMSS, SOLAPUR. 3


ACKNOWLEDGEMENT

The project Title “A study of performance appraisal system” has been conducted

by Roopa Chalageri for 45 days at KFIL, SOLAPUR. I have completed this project, under the

guidance of Mr. Hrushikesh M. Kulkarni (Industry Guide) and Mr. Avinash Dhavan (Faculty

Guide).

I owe the enormous intellectual debt towards my guides Mr.Hrushikesh M.

Kulkarni and Prof. Mr. Avinash Dhavan, who have augmented my knowledge in the field of

Insurance & Finance. They have helped me learn about the process and giving me valuable

insight into the Project time to time.

I would like to thank Prof. Mr. Avinash Dhavan for his guidance and enriching my

thoughts in this field from different perspectives.

I wish to express my gratitude to Kirloskar Management for giving me the

opportunity to be a part of the esteem organization and enhance my knowledge by granting

permission to do my winter training project under their guidance.

Once again, I feel indebted to all those persons and organization that have helped

directly or indirectly in the successful completion of this study.

Date:

Mrs. Roopa Chalageri

DECLARATIONAKIMSS, SOLAPUR. 4


I have undersigned here by declare that this Project report is genuine and

benefited work prepared by me and submitted to “BHARATI VIDYAPEETH

UNIVERSITY, SOLAPUR” as the partial fulfillment of the award of MBA.

This Project work is original and conclusion drawn in this are based on

the data and information collected by myself.

The best of my knowledge and belief, the Matter which is present in

this project report has not been submitted for the award of any degree either to

BHARATI VIDYAPEETH UNIVERSITY, SOLAPUR.

Place: Solapur

DATE:

Mrs. Roopa Chalageri

MBA (HR)-II

INDEX

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TOPIC

PAGE

NO.

INTRODUTION OF THE STUDY &

RESEARCH METHODOLOGY

8-10

COMPANY PROFILE 12-41

TIME OFFICE FUNCTIONS 43-44

THEROTICAL BACKGROUND 46-56

DATA PRESENTATION AND ANALYSIS 58-70

FINDINGS, CONCLUSION & SUGGESTIONS 72-75

BIBLIOGRAPHY 77

CHAPTER 1

INTRODUCTION TO STUDY & RESEARCH AKIMSS, SOLAPUR. 6


METHODOLOGY

INTRODUCTION:

This project report is an attempt made to study “the performance appraisal

system” of a particular organization in detail.

Now- a -days the work performance is very important for employees & organizations

also. An organization’s goals can be achieved only when people put in their best efforts.

Employee assessment is one of the fundamental jobs of HRM.

AKIMSS, SOLAPUR. 7


Performance appraisal is essential to understand and improve the employee’s performance

through HRD. Performance appraisal was useful to decide upon employee promotion/transfer,

salary determination and the like. The recent developments in HRM indicate that performance

appraisal the basis for employee development. Performance appraisal indicates the level of

desired performance level, level of actual performance.

performance appraisal is a formal, structured system of measuring and evaluating an

employee’s job related behaviors and outcomes to discover how and why the employee is

presently performing on the job and how the employee can perform more effectively in the

future so that the employee, organization, and society all benefit.

Performance appraisal is a continuous process in every large scale organization.

SCOPE:

This study is to know about the performance of the employee’s procedure of the HRD

department. In KFIL for performance appraisal to know which method is practicing.

OBJECTIVES OF THE STUDY:

Main objective is to study performance appraisal in Kirloskar Ferrous Industries Ltd,

Solapur.

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To study the actual procedure in regarding the performance appraisal system.

To study the method which they had adopted for performance appraisal.

LIMITATIONS:

This study is limited to the performance appraisal system of KFIL.

The data collected consists of all the general information, which is available freely.

Conclusion and generalization drawn may be applicable only to a particular area of the

organization and may not be true for the whole organization.

The suggestion and conclusions obtained from the studies are not binding upon the

organization.

The study was conducted in a limit period.

Research Methodology

Definition of research methodology

According to Thomas Kinnear “A research design is the basis plan which guides the

data collection, analysis & place of the provide it is a frame work which specifies the types of

the information to be collected the sources of data & the data collection produces ’’.

The study is empirical in nature as it is based on data personally observed & collected.

AKIMSS, SOLAPUR. 9


The data is collected through primary & secondary method.

METHODS:-

Primary data

Secondary data

1. Primary data : It is the collection of data collected by the first hand i.e. discussion

with the relating officers and then getting the information required for project.

2. Secondary Data : The data was collected by going through files and records of

the company. Some information was collected from the records HR department like

performance appraisal process, appraisal sheets, incentive schemes & rewards for the

employees form the manual books of the company.

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CHAPTER 2

COMPANY PROFILE

Kirloskar Ferrous Industries Limited

GOALS OF THE COMPANY

Safety in working areas.

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No metallurgical complaints throughout the year.

5S implementations as per defined plans.

Kaizen activities – Kaizen/month/employee.

ISO documentation.

Status report on monthly basis for customer satisfaction.

Strengthening of in process activities on audits findings.

Review of above points planned at the end of each quarter.

GLANCE AT:

Foundation: Established at 1900

Employee: 520 persons

Turnover: 2006-07: 702.08 Million 2007-08: 863.74 Million

Production: As cast, machined and Assembled Grey Iron Alloyed Grey iron, S.G. Iron castings and

Certification: ISO 9001: 2000, Recommendation of TS 16949: 2002 & EMS 14000: 2004 in August 2008.

AKIMSS, SOLAPUR. 12


Organisation Profile

The Kirloskar story, It has now been more than a century since the kirloskar story started. They started with

an aim of becoming the pioneers in field in which our country needed innovation. In the

100years & more that they have been in existence as a family & as an organization, They have

been seminal to India agricultural & industrial development. They gave to India its first iron,

plough, pump & engine; inventions that were devised from the need of the hour & went on to

become signs of the time which is why their group history in many ways can be considered a

history of the economic & industrial revolution in India.

Kirloskar Ferrous Industries Limited, Solapur Plant (KFIL-S) Shivashahi, Solapur,

formerly known as Kirloskar Oil Engines Ltd., Casting Division (KCD) erstwhile Shivaji

Works Ltd. (SWL), was founded in 1900 by Dr. Vasudeorao Kirloskar. During the initial

years, SWL was engaged in the manufacture of Iron Ploughs, Vices and other Agricultural

implements. From 1934, SWL started manufacturing of Grey Iron castings.SWL became a part

AKIMSS, SOLAPUR. 13


of “Kirloskar Group” in 1959, to expand its foundry activities for manufacturing of self

priming pumps and Vices. SWL modernized its foundry facilities in 1969 with a semi

mechanized mould handling line and electrical induction furnaces. In 1979 SWL collaborated

with M/s Hitchiner Mfg. Co. Inc.USA to add Investment Casting facility in the plant. SWL

was severely affected during past decade due to unprecedented slowdown in the Indian

economy and went into heavy losses. It had to restructure and downsize its operations and

workforce in 1997. It was then amalgamated with KOEL, Pune in 2000 and was operating as

its ‘Castings Division’ i.e. - KCD. In the recent past KCD has been making consistent progress

in stabilizing its operations. Looking at the excellent growth potentials in the foundry industry

due to growth of automobile and tractor industry in India, the group Chairman Mr.Atul

Kirloskar, in Jan 2005, envisioned Kirloskar Group to become one of the leading foundry

group in India and accordingly planned the synergy of the two big foundries in K-Group, KFIL

and KCD. The two entities merged into one company in January 2007, with KFIL – Hospet

acquiring the interests of KCD and designating it as KFIL – Solapur Plant. (KFIL-S)

Kirloskar ferrous industries limited (KFIL), was born with the unique advantage of having

bnn been conceived with ideas accumulated through experience & expertise of the kirloskar group

in the field of foundry business at a time when the de-licensing & liberalization polices of the

G Government come forth in the year 1992 resulting in rapid growth in Automotive & farm

mechanization sectors.

KFIL’s state of the art foundry was the answer to the high volume demands of these

sectors which require thin walled casting with very small machining allowance & above all

accurate dimensional accuracies absolutely essential for matching centers in a single pass.

KFIL’s simultaneously went in for a pig Iron Plant started commercial production in

1994. KFIL operates at location. One at Bevinahlls in koppal district near Hospet, on the

banks of the Tungabhadra reservoir in Karnataka, which is near to the Iron ore belt, another

one at Solapur in maharashtra come into the fold of KFIL on 1st January, 2007, KFIL, the only

foundry in asia with backward integration to liquid metal, has global capacities to meet high

volumes at consistent quality.

KFIL, Solapur Plant on ISO9002 Company since 2007, which operated for 100 years, as

Shivaji works Ltd is well known for its quality casting for automobile industries. Factory is

built over a sprawling area of 77 hectors of land near Aerodrome at Solapur.

AKIMSS, SOLAPUR. 14


KFIL-S has three manufacturing plants (Grey Iron foundry, Investment Casting Plant &

Assembly Dept.), a Pattern Shop, and a well equipped metallurgical & physical testing lab. To cater to

the expanding requirements of the castings and ever increasing demand on the Quality, Cost and

Delivery elements of the business KFIL – S decided to put up a high pressure moulding line in 2008-09

with the latest technologies available in the industry. This facility is now ready and in the process of

stabilization. Ideally located in Maharashtra, KFIL- S is well connected to the industrial areas by road

and rail. Today, it is one of the leading jobbing foundries in the country, manufacturing intricate Grey

Iron, S.G.Iron castings and near net shape steel castings through Investment Casting Process.

We are a 1.20 billion us dollars engineering conglomerate driving critical industries. We

are century old pioneers in our areas of specialization like power construction & transport, oil

& gas & environment protection with a range of world-class industrial products & turnkey

services.

We are made up of 8 major group companies, each led by the best engineering &

managerial talent in India. In addition to civic utility systems & in information technology &

communication.

Our multi-unit, multi-product, multi-location conglomerate is built on the plinths of

experience, expertise, Quality, Innovation & values in the business. Our best play in successful

work & creation of a new industrial order where we can provide tailor made solutions to the

customers.

PRODUCTS AND SERVICES:

The product mix has been changed to manufacture intricate value added castings like Cylinder

Heads, Crank Cases and Housings for automobile, tractor, diesel engines and other general engineering

industry in as cast as well as in machined condition. KFIL–S also exports castings to South Africa and

USA for rail components like Brake housings and Loco heads amounting to about 5% of the sales.

Some of the components are partially and fully machined at our machine shop.

At Kirloskar, listening to the customer& his needs is a tradition as old as the gr. itself

for it is they who drive us further, making us reach higher & engineer better solution. In the

customers often unspoken with for better implements lies the need for new inventions, a path

breaking industrial concept.

Today the KFIL Solapur plant is one of most experienced foundry in the country,

AKIMSS, SOLAPUR. 15


Grey Iron & pig Iron foundry, Investment castings plant, a well equipped pattern & lies

Manufacturing shop with well equipped laboratory & testing facilities also the company is

having a machining line for cylinder Heads & cylinder liners.

We are made up of gr. companies who are players in major sectors like manufacturing , oil

& gas, power, construction & mining ,agriculture, industry & transport each led by the best

engineering & managerial talent in India .In addition to engineering , we also have interests in

civil utility system & in IT & communication. These form a companies the core & kirloskar gr.

Each company is a renowned name in its own area of operation & is respected world wide for

its services & products. For us manufacturing is just not limited to our factors premises & our

products. It is also about world-class service

ORGANISATIONAL CULTURE:

Keeping in line with the needs of the customers and the stake holders, KFIL-S has set up its Vision,

Mission and values.

The vision, mission and the values are translated into individual department goals and the same culture

percolated down the organization.

These are communicated in the vernacular language Marathi to all concerned.

COMPETITIVE ENVIRONMENT:

Competition for both Grey iron and Investment castings is high in domestic and international

market. Domestic competitors are M/s. DCM Ltd., Ennore Ltd., Nelcast Ltd; Bhagwati Auto

cast Ltd, Ashok Iron Works, Menon & Menon Ltd, GPI Ltd, etc. for Grey Iron castings.

KFIL-S is an established major player in the market segments it services and also has achieved

self-certification status and good quality rating from some of its present customers. KFIL-S has

an advantage due to diversified products like, Grey Iron and Investment castings, and its

synergy with KFIL-H plays a major role in balancing the cash flow requirements. It also has an

edge over competitors in its ability to produce quality castings in bulk when required.

STRATEGIC CHALLENGES:

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One of the key strategic challenge to KFIL-S foundry is the fast productionisation of the new

moulding line where substantial investment has been made and there are recessionary trends in

the market economy. This is being done through aggressive marketing strategy and efficiency

of operations even at lower volumes. New items are being developed to expand the customer

and items base, to retain the market share. Raising the competencies of the people through

training and strengthening the critical areas of operation with adequate resources is being done.

Right people at right job and right sizing of the organization have been done to minimize the

overheads. Upgrading systems with adequate technology base will ensure required quality

level.

Turnaround Management

In 1995 the Kirloskar ferrous industries limited planted in Solapur that was gone in loss

since the organization try to manage the turnaround condition these are as following:-

They are using VRS Scheme. (means voluntary retirement scheme)

In 1995 on that time the 3000 workers were working minimizes the workers

number in the man power planning.

To minimizes the payment from the employees’ salary at 10% each.

To using the developed the machinery.

There is no change in the any management system.

Now the industry is on growth stage, but profit is marginal.

For this coverage to industry there are seven (7) years are required..AKIMSS, SOLAPUR. 17


About Company:

S.B. Unit: - Kirloskar FIL, Solapur Plant.

Address: – Shivshashi, Solapur - 413224. (India)

Registered office: - 13, Laxmanrao kirloskar

Road, Khadki, Pune-411003.

Telephone No.: 91202581, 5341, 2581

Fax no:- 91202581,3208 2581 0209.

Type of company: - Public Limited Company.

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Email:- [email protected]

Website:- http://www.kirloskar industriesltd.com.

No. of directors: – 13

No. of shareholder: – 12,000

Capital of the company:- 250 cr.

Administration office at: Administration office & works

Shivshahi, Solapur.

413224.

Tel. STD Code: - 0217

Telephone no.:- 2600211(5lines).

Fax no:- 91217 2600220

HISTORY

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http://www.kirloskar/

mailto:[email protected]


Land marks of kirloskar Group

Year Achievement

1888 Kirloskar brothers established.

1901 India’s first fodder cutter made.

AKIMSS, SOLAPUR.

1900 : Manufacturing of household utensil and brassware

1934: Grey Iron foundry started1941: Manufacturing of vices, export to USA ,Australia , Canada

1951: Manufacturing self-priming pumps1980: Investment casting plant in collaboration with Hitcher Inc.USA

1993: ISO 9002 certification trough BVQI1993: Started ceramic moulding technology at IC plant

1997: Restructuring / downsizing was effected to become competitive in the changed circumstance

2000: Merged with KOEL, Pune2001: ISO 9001 Certification trough BVQI

2003: ISO 9001 Re- Certification through BVQI and Implementation of Oracle 11 i

2005: Synergy with KFIL and restructuring2007: Merger with KFIL and ISO 9001 Certification through IRQS , Formation of Parivartan team

2008: Certified for TS & EMS trough IRQS , High Pressure moulding project line , completed Oracle 11 I implementation along with Hexaware

20


1924 Export ploughs to Britain begins.

1927 Kirloskar becomes the first manufacturer of India’s first HP

electric motor.

1940 India’s first vertical diesel engine manufactured.

1953 Kirloskar manufactures India’s first transformer.

1962 Hotel blue diamond started, Diversification in Hospitality

industry.

1964 First DC motor made.

1973 First over seas office established in Malaysia.

1976 Kirloskar Kenya set up in Nairobi.

1988 Kirloskar group completes a 100 years in operation the centenary

year.

1992 Kirloskar ferrous industries Ltd established.

1999 Hotel blue diamond, Pune & Hotel City Inn, Baramati,

undertakings of Poona Industrial Hotel Ltd were sold to Taj group

of Hotels.

Shivaji works Ltd merged with kirloskar oil engines limited.

All India trophy of largest exporter of pumps for 11 th successive

year.

2001 Toyota corporate Japan forms a joint venture with Kirloskar to

manufacture multi-utility vehicle QUALIS.

2002 Toyota Kirloskar introduces its latest offering in India the luxury

Sedan CAMRY.

PRODUCTS OF THE COMPANY:

PRODUCTS USED IN

TKAPBRG. CAP

INNOVA CAR

SGIBODY BRAKE CYL.

INNOVA CAR

TKAPDIFFERENCE CASE

INNOVA CAR

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TKAPSTIFFNER

TRUCK/TEMPOENGINE

KOEL3R1040 CYL.HEAD

INNOVA CAR

KOEL4R1040CYL.HEAD

TRUCKS, TEMPO ENGINE

SGINP HEAD

TRUCKS, TEMPO ENGINE

DVHSG TOYOTO CARDLW251 ULTRA PLUS CYL.HEAD

MOTOR PUMP

PTL(KOEL)F/W HSG

MOTOR PUMP

KAMCOCYL. FRAME

TRACTOR

KAMCOM.G.CASE

TRACTOR

KOEL6R1040 CR.CASE

TRACTOR / TEMPO

KOEL4R1040 CR CASE

TRACTOR / TEMPO

KOEL3R1040 CR CASE

TRACTOR / TEMPO

KOELHA2 CR. CASE

MARINE ENGINE

DLWFP. SUPPORT

RLY ENGINE

DLWCYL. LINER & CYL.HEAD

RLY ENGINE

KFIL-S CUSTOMERS:

Sr.No Name of the Customer Product supplied

1 K.O.E.L (Kirloskar Oil Engines Ltd.) Oil Engine parts

2 TATA Motors Cylinder Heads, Liners

3 Indian Railways Flywheel Casing DLW, Cylinder head

4 L & T Cylinder Heads, Liners

5 Mahindra & Mahindra Cylinder Heads, Crank case, Cylinder

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Lines

6 Bajaj Force Motors DLW Cylinder Liners

7 Ministry of Defense, India Revolver casting

8 Medical Services Joints of artificial Body Organs

9

10 TKAP (Toyota Kirloskar Auto Parts) Double Decker break drum, 4R 1040

cylinder Head, Differential case,

Transmission plate, Stiffness etc.

Vision

To be a world class product leader through the state-of –art manufacturing technologies &

processes.

Mission:

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Cost reduction by Innovating without compromising on quality policies & values

Introduce high values business by new product development

Increases productivity by implementing TRM in critical areas

Create a team culture for improvement action & build teams across it.

Have a growth of foundry from 15330 M.T.in years 2006-2007 to 50000 M.T by 2011-

12.

Supply minimum40% of the casting produced from foundry in machined condition by

20M.

Top the opportunity of global business M C.I, S.G., &investment casting Achieve

growth in exports every year.

Continually up date the technologies & adopt state-of-art manufacturing technologies &

processes.

Values of KFIL’s

Customer orientation

Vendor Development

(Critical link in the business)

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Development of HR (Trust, positive attitudes Integrity Team work , respect

of

Industrial, concern for quality, cost, 5s safety, a personal habit, Being

proactive, solving problem MS Networking, working for win –win

agreement continuous improvement & result oriented.)

Process& producer excellent

Responsible corporate neighbour.

Quality policy

Quality policy of the company is to make continues improvement in all the process

by implementing , Appropriation technology to whenever the specialized & implied product

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quality in most cost effective manner , coupled with consistent & timely supplies, as per agreed

terms to the satisfaction of the customers.

Quality &Environment objectives

1. Enhance customer satisfaction

2. Reduce process & customer end Rejection

3. Conservation of Energy

4. Re use Recycle Natural resources like unit sand casting runner risers, boring , water ,

paper etc.

5. Implement efficient pollution control equipment for dust funs noise control.

.

Environmental &Safety policy

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In according with our vision, “To be a world class product leader through the state-of –art

manufacturing technologies & processes.”

We at Kirloskar ferrous Industries Limited ,Solapur plant (KFIC-S), Manufacturing &

Supplies of cast & machined Grey Iron , Alloyed Grey Iron, S.G. Iron castings, are committed

to protect &upgrade our Environment &safety of Humane lives through :

1. Systematic & cost effective methods for waste management.

2. Providing safe environment to prevent accidents.

3. Optical utilization & conservation of resources through effective recycling & are use

practices.

4. Prevention of pollution covering all environment aspects & continues improvement in

Environment management system performance.

5. Complying with all applicable legal & other requirements of Environment & safety

concerns.

6. Improving Environment & safety awareness to all employees through Training.

7. For this awareness on 5th June they are environment day celebrating.

This policy shall be communicated to all Date -05-04-2008 interested parties on regulation.

DEPARTMENT IN COMPANY

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DEPARTMENT

ADMINISTRATION MANUFACTURING DEPARTMENT DEPARTMENT

PERSONNEL R& D DEPARTMENT DEPARTMENT

FINANCE PRODUCTION

DEPARMENT DEPARTMENT

PURCHASE QUILITYASSURNANCE

DEPARTMENT DEPARTMENT

MARKETING MAINTENANCE

DEPARTMENT DEPARTMENT

SECURITY

DEPARTMENT

PERSONNEL DEPARTMENT:

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In this department the 5s technique is adopted which is given as follows:

Leader

FUNCTIONS:

Selection & recruitment procedure.

Maintenance of labour supply.

Education training.

To maintenance of friendly relationship between the employees & to keep in touch

with them.

Provision of welfare facilities.

Provision of safety measures.

AKIMSS, SOLAPUR.

Deputy Leader

Member Member Member Member Member

29


FINANCE DEPARTMENT:

This department is one of the most important departments in the industries maintaining

expenses for capital, advertising and manufacturing.

FUNCTIONS:

To prepare the balance sheet, maintain the profit & loss account of the industry.

To prepare the annual report for the company for distribution among the management

people, shareholders and wherever related to the industry.

To invest the part of capital to gain profit fort the industry

To decide the cost of the products considering all the expenses made for manufacturing.

To decide the wages or pay structure of employees, raise funds & use price of profit to

pay them and audit it.

PNL balance sheet monthly preparing.

New productivity cost analysis making.

Internal check on the all activities.

Goods Reporting Rating (GRR).

Viable to integrate recommend.

Fix asset capitalization.

To make collect the payment from the customer by forcing the market department.

To make the all payment maintaining cash flow on daily basis.

AKIMSS, SOLAPUR. 30


PURCHASING DEPARMENT: Purchasing is a function of procuring goods and services from sources external to the

organization. In the words of Alford and Beaty, “Purchasing is the procuring of materials

supplies, machine tools and service required for the equipment, maintenance and operation if a

manufacturing plant.

Purchase is one of the major task during the commencement of business, industrial

working or manufacturing, generally industry has to purchase almost every thing from the

market such as raw materials, tools, machinery & some times technology too. An activity

performed by the department basically depends on 5 R’S principles.

5 R Principles of purchasing:-

i. Right Quality

ii. Right Quantity

iii. Right Time

iv. .Right price & from

v. RightSupplier

Process of Purchasing

Need Identification

Order Requisition

Supplier Identification

Invite Quotations

Filling Tender

Order Receiving

Follow up

AKIMSS, SOLAPUR. 31


MARKETING DEPARTMENT:

The term market represents mechanism of exchange of a product which may be homogeneous

or differentiated. It does not suggest & specific place or locality where goods are exchange.

Rather it refers to exchange of a particular commodity between buyers and sellers agreed to

price.

FUNCTIONS:

Selling the finished products.

Buying raw material & other equipments.

Transportation.

Market research and analysis.

Advertisement.

SECURITY DEPARTMENT:

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It is one of the important departments in the industry; this department ensures security of

available facility as well of the goods in the industry. A special team of guards is hired by the

industry, employed for security purpose.

FUNCTIONS:

Checking & maintaining the record visitors and employees entering or leave the

industry.

Checking & maintaining the record of the vehicle of carrying the goods and empty

vehicles entering or leaving the industry.

Keeping the records of visitors and ensuring that they have got the permission for visit

by querying to the respective concern.

RESEARCH & DEVELOPMENT DEPARTMENT:

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Advance countries spend considerable amount on research and development for

further advancement of technology. Germany spends 50% of its R & D budget on product

innovation and the remaining 50% on process innovation. Japan spends only 30% on product

innovation and the remaining 70% on process innovation. In contrast, USA spends 70% on

product innovation and only 30% on process innovation. Japanese companies introduce the

products in three year whereas US firms need five years for the same job.

FUNCTION:- Casting division has its own pattern shop to cater to the needs of the foundry and offer services like

In house, core box & tool manufacturing. Manufacturing of aluminum, cast iron & polyurethane patterns. Foundry engineering with latest techniques. Complete development of the jobs from processing of the enquiry to approval of

the trial production at the customer.

Casting division efforts to weave the quality in its products A well equipped metallurgical & chemical lab. A vacuum emission spectrometer. A standard room in the machine shop to ensure the process quality. Various non destructive testing equipments to ensure quality.

Operation plan:1. Focus on cost reduction activities.2. New pattern manufacturing.3. New casting development.4. Re –conditioning of patterns.5. Yield improvement plans.6. Process improvement plans.7. Kaizens.8. Expectations & expenses.

PRODUCTION DEPARTMENT:

This is one of the most important functions in the industries. To getting the raw material and make the finished goods.There are three production plants:

Investment casting plant. Assembly plant.

AKIMSS, SOLAPUR. 34


Foundry plant.

Process Flow Chart for casting Production:

Process Owner: In charge Foundry Operations

QUALITY ASSURANCE DEPARTMENT:

Quality assurance refers to the assurance to customers that the products, parts, components,

tools, raw materials and equipment, production process etc. are also determined in advance so

as to manufacture quality products as per the predetermined standard.

AKIMSS, SOLAPUR. 35

Receive part drg.from

customer

Study by MDT

Make Pattern Equipments

Inspect

Shift to core & mould shops

Receive core raw materials

Receive mould raw materials

Receive melt raw materials

Inspect

Inspect

Inspect

Make Cores(Sub-Process)

Make Moulds(Sub-Process)

Prepare Metal(Sub-Process)

Inspect

Inspect

Inspect

Washing, Drying & core

Assembly

Assemble Moulds & Cores

Pour Metal into moulds

Cooling for 1 hour.

Knock-out

Shot-blasting, Fettling, Painting &

averaging(Sub-Process)

Inspect

Dispatch to customer


FUNCTIONS:

Quality specifications.

Quality standards.

Inspection and testing.

Periodical evaluation.

Introduce the modern slab-casting technology.

Reduce the cost of construction by reducing the total time period.

Quality assurance means assurance of the existence of physical and chemical properties in a

product as prescribed in advance, assurance of the fitness of a product for intended use and

assurance of the rated performance by a product as claimed

MAINTENANCE DEPARTMENT:

Maintenance is so important in the industries for maintaining the all machinery& equipments,

due to then frequency of use & strategic position in the entire production function “prevention

is the butter then cure maintenance extends a use full life of assets by reducing wear & tear.

AKIMSS, SOLAPUR. 36


FUNCTIONS:

To maintaining the all machineries and equipments according to planning and schedule.

Preventive maintenance. (Repair maintenance.)

Breakdown maintenance.

Mechanical maintenance.

Electric maintenance.

Foundry maintenance.

Manufacturing division maintenance.

It prevents wastage of spares, tools & materials.

More automation calls for sophisticated maintenance.

Maintenance keeps up operational readiness of all equipments required for

emergencies.

Maintenance in modern plans requires a multi-dimensional approach in these days

of computer controls.

ORGANISATION CHART

AKIMSS, SOLAPUR. 37

Chairman and Managing Director (CMD)

Managing Director (MD)

Vice President, Finance & MIS & IT Vice President, Marketing

Vice President (SBU Head)

General Manager, Commercial *Senior Manager, Finance *

Directors

CorporateMgmt.

Senior General Manager, R&D & Q.A, *


HOD

KFIL-S ORGANISATIONAL PROFILE

ORGANIZATIONAL CHART AND EMPLOYEES BASE

Kirloskar ferrous industries limited is run by professionals with AOP targets (Annual operating plan) which are reviewed on a monthly basis by top management as well as the directors of kirloskar group.

THE WORKFORCE OF KFIL-S IS AS FOLLOWS

Top management ( D.G.M. and above) Managerial staff,

AKIMSS, SOLAPUR. 38

General Manager, HR *

General Manager, Assembly Dept., and I.C.Plant *

General Manager, HPML and Plant ‘B’

Deputy Manager, MIS & IT Senior General Manager, HPML, Plant ‘B’ & Plant Engineering. *


Supervisors, Operators, Contract operators.

The key positions of KFIL-S are managed by the professionals in the field and are ably supported by a group of well motivated young and energetic managers with good academic background. KFIL-S has a total workforce of 507 employees, divided in to 3 categories viz-daily rated, monthly rated and managerial. KFIL-S used contract labour for activities like canteen, security, gardening cleaning and , material handling. The workers have a recognized union, which not only taken care of their welfare but also motivates them to achieve the targets of the company. The contractual employees wherever deployed are again due importance in safety, health and other essential welfare aspects.

COMPANY ADOPTED MODERN TECHNOLOGY:

KFIL-S has been always on the lookout for improvement in the technologies consistent with

the latest state-of-art in the field. It had modernized the foundry with ‘A Plant’ in 1964, with

‘B Plant’ in 1974 and as per the vision of the company and is once again modernizing the

facilities with a new green field foundry with latest technologies available in the Foundry field.

Some of the modern machinery and the technologies are listed below. These are already

operational from August 2008 and are in the process of stabilization.

Other Important Equipments are: Spectrometer, Photomicroscope, Video- endoscope,

Universal testing machine and a well equipped sand testing laboratory.

AKIMSS, SOLAPUR. 39


Synergy with KFIL Hospet ensures the availability of good quality Pig Iron, the main raw

material at all times. Other raw materials are procured from reputed suppliers. The strategic

location of the plant at Solapur facilitates raw material availability as required.

TECHNOLOGY AND RAW MATERIAL :

KFIL-S has been always on the lookout for improvement in the technologies consistent with the

latest state-of-art in the field. It had modernized the foundry with ‘A Plant’ in 1964, with ‘B

Plant’ in 1974 and as per the vision of the company and is once again modernizing the facilities

with a new green field foundry with latest technologies available in the Foundry field. Some of the

modern machinery and the technologies are listed below. These are already operational from

August 2008 and are in the process of stabilization.

Modern Machineries

Sand cooler with conditioning plant – Kunkel Wagner-Germany

High Pressure Moulding Machine – Kunkel Wagner-Germany

High Productive Core shooters – Fritz Hans berg – Italy, Susha-India

Core packaging and washing Robots – ABB, Sweden

Vision Pour – Automatic press pour, Induclothem,India

Casting Manipulator – Andromet – Germany

Casting cooling Conveyors – vinar systems, India

Machining centers

Other Important Equipments are: Spectrometer, Photomicroscope, Video- endoscope, Universal testing

machine and a well equipped sand testing laboratory.

Synergy with KFIL Hospet ensures the availability of good quality Pig Iron, the main raw material at

all times. Other raw materials are procured from reputed suppliers. The strategic location of the plant at

Solapur facilitates raw material availability as required.

Modern technologies and processes

Sand temperature control for consistent moulds.

High pressure moulding – Shoot squeeze process

AKIMSS, SOLAPUR. 40


Making, Packaging of all cores of a component from a single

machine and handling them.

3Conversion of all jacket and port cores of the blocks and

heads from shell to Cold box process.

Assembly and wash method for all heads and blocks.

Defined pouring time and improved yield.

Handling of the castings after shake out to avoid damages and

mixing up of the core sand with green sand.

Improved handling of the hot castings to minimize the

damages.

Machining set up for Cylinder Heads.

AKIMSS, SOLAPUR. 41


CHAPTER 3

TIME OFFICE FUNCTIONS

Time office working:-

1. Maintaining Attendance Register /Muster.

2. Entry of leave / Absenteeism

Muster Roll

Computer Entry

3. Absenteeism Report -

Correction In punching

In punching

Out punching AKIMSS, SOLAPUR. 42


4. Daily Attendance Report Consolidated’s

for nightly Shift Change

Muster Entry

Computer Entry

1. Salary Days

To be prepared, checked & sent to Finance for process.

Entry Trance Manually Attendance

Computer Entry

Once in a month for payment

Heal Allowance

Night shift Allowance

Recording of hours of work.

Calculation of working hours / working days with taking into consideration the

half days & leave.

2. Monthly Holiday – Notice

3. Monthly Report

Mandays worked

Dept. Wise

Shift wise

Leave Availed.

4. Updating of Attendance information in respective of absent employees in department.

5. Issuing Gate pass for ping outside.

Office work

Personal work

6. Annually preparation of Bonus

7. Preparation of privilege leave information /collation

8. Leave balance information at year end for carry forward- P.L.encastiment of CL, SL PL.

9. Issue of warning/ Samaj for Absenteeism.

10. The reporting of joining & living.

AKIMSS, SOLAPUR. 43


AKIMSS, SOLAPUR. 44


CHAPTER 4

THEOROTICAL BACKGROUND

PERFORMANCE APPRAISAL

DEFINATIONS:

1. The process of performance appraisal help the employee and the management to

know the level of employeee’s performance compared to the standard/ pre-

determined level.

.

2. It is the systematic evalution of the individual with respect to his or her

performance on the job and his or her potential for development

AKIMSS, SOLAPUR. 45


Need for Performance Appraisal

Performance appraisal is needed in order to:

Provide information about the performance ranks. Decisions regarding salary fixation,

confirmation, promotion, transfer and demotion are taken based on performance.

Provide feedback information about the level of achievement and behavior of the

subordinate. This information helps to review the performance of the subordinate,

rectifying performance deficiencies and to set new standards of work.

Provide information which helps to counsel the subordinate.

Provide information to diagnose deficiency in the employee regarding skill, knowledge,

determine training and developmental needs and to prescribe the means for employee

growth provides information for correcting placement.

To prevent grievances and in disciplinary activities.

Purposes/Objectives

Performance appraisal aims at attaining the different purposes. They are:

To create and maintain a satisfactory level of performance.

To contribute to the employee growth and development through training, self and

management development programmes.

To help the superiors to have a proper understanding about their subordinates.

To guide the job changes with the help to continuous ranking.

To facilitate fair and equitable compensation based on performance.

To facilitate for testing and validating selection tests, interview techniques through

comparing their scores with performance appraisal ranks.

To facilitate for making decisions regarding lay-off, retrenchment etc.

AKIMSS, SOLAPUR. 46


Methods of Performance Appraisal

With the evolution and development of the appraisal system, a number of methods or

technique performance appraisal has been developed. The important among them are presented

of

Methods of Performance Appraisal

Traditional Methods Modern Methods

Graphic Rating Scale Behaviourally Anchored Rating Scales

Ranking Method

AKIMSS, SOLAPUR. 47


Paired Comparison Method

Forced Distribution Method

Checklist Methods Assessment Centre

i. Simple Checklist

ii. Weighted Checklist Human Resources Accounting

iii. Critical Incident Method Management by Objectives

Essay or Free Form Appraisal Psychological Appraisals

Group Appraisal

Confidential Reports

Traditional Methods 11.Graphic Rating Scale :

i. Graphic rating scales compare individual performance to an absolute standard.

ii. Judgments about performance are recorded on a scale.

iii. The appraisers are supplied a forms one for each employee contain a number of

objectives, behavior & trail based qualities & character to be rated like quality &

volume of work, job knowledge, dependability, initiative attitude etc. in the case of

workers

iv. And analytical ability, creative ability, initiative, leadership qualities emotional stability

in the case of managerial personnel.

v. These forms contain rating of scales.

vi. Rating scales are of two types

AKIMSS, SOLAPUR. 48


i. Continuous rating scale 0, 1, 2, 3, 4& 5.

ii. In discontinuous rating scale the appraiser assigns the points to each degree.

12.Raking Method:-

i. The employees are ranked from best to worst on some characteristics.

ii. The rater first finds the employee with the highest performance & the employees with the

lowest performance in that particular job category & rates the former as the best & the

flatter as the poorest

iii. The same producer is continued in that group

iv. Ranking can be relatively easy & inexpensive, but its reliability & validity may be open to

doubt

v. One important limitation of the ranking method that the size of the different between

individuals is not well defined.

Paired comparison Method:-

The appraiser ranks the employees by comparing one employee with all other employees in the

group, one at a time. For example, there are employees named A, B, C, D and E. The

performance of A is first compared with the performance is better. Then A is compared with C,

D and E in that order. The same procedure is repeated for other employees. The number of

comparisons may be calculated with the help of a formula which reads thus.

N (N -1) where N stands for the number of employees to be compared. If there are 10

2 employees, the number of comparisons will be 10(10-1) =45.

4. Forced Distribution Method:-

Forced distribution method is developed to prevent the raters from rating too high or too low.

Under this method, the rater after assigning the points to the performance of each employee has

to distribution his ratings in a pattern to conform to normal frequency distribution.

Thus, similar to the ranking technique, forced distribution requires the raters (supervisors)

to spread their employee evaluations in a prescribed distribution. This methods eliminates

central tendency and leniency biases.

AKIMSS, SOLAPUR. 49


Checklist Methods :

The checklist is a simple rating technique in which the supervisor is given a list of

statement or words and asked to check statements representing the characteristics and

performance of each employee. There are three types of checklist methods,

1. Simple Checklist Method: The checklist consists of a large number of statements

concerning an employee behavior.

The rater checks to indicate if the behavior of an employee is positive or

negative to each statement.

Employee performance is rated on the basis of the number of positive checks.

The negative checks are not considered in this method.

2. Weighted Checklist Method: The weighted checklist method involves weighting

different items in the checklist, having a series of statements about an individual, to

indicate that some are more important than others

The rater is expected to look into the questions relating to the employee’s behavior, the

attached rating scale (or simply positive/negative statements where such a scale is not

provided) and tick those traits that closely describe the employee behaviour. Often, the

weighted are not given to the supervisors who complete the appraisal process, but are

computed and tabulated by someone else, such as a member of the personnel unit. The

performance ratings of the employee are multiplied by the weights of the statements and the

coefficient are added up.

3. Forced Choice Method:

This method was developed at the close of World War II. Under this method, a large number

of statements in groups are prepared. Each group consists of four descriptive statements

(tetrad) concerning employee behavior. Two statements are most descriptive (favorable) and

two are least descriptive (un-favorable) of each tetrad. The appraiser is asked to select one

statement that mostly describes employee’s behavior out of the two favorable statements and

one statement from the two unfavorable statements. The items are usually a mixture of positive

and negative statements.

AKIMSS, SOLAPUR. 50


It is difficult to construct and validate the statements under the forced-choice method,

especially for relatively small organizations. Further, it may be time consuming to prepare

statements that suit the demands of a particular job or company.

Critical Incident method :

Employees are rated discontinuously, i.e. once in a year or six months under the earlier

methods. Under this method, the supervisor continuously records the critical incidents of the

employee performance or behavior relating to all characteristics (both positive and negative) in

a specially designed note book. The supervisor rates the performance of his subordinates on the

basis of notes taken by him.

The critical incident method has the advantage of being objective because the rater considers

the records of performance rather than the subjective points of opinion, for example, mood,

emotional balance, relationship between superior and subordinate. Recording events (critical)

continually over a period of time may be presented by the raters. The question of discounting

precious time of the executive is also involved here. Because of the time required to write

complete profiles of critical incidents, managers can be asked instead to record sketchy notes

of their observations nothing the date and some other reminder of the event. More often than

not the employee might have done something ‘critically good and excellent’ but the supervisor

concerned may not have been present and hence the concern was not recorded.

Essay or Free Form Appraisal:

This method requires the manager to write a short essay describing each employee’s

performance during the rating period. This format emphasizes evaluation of overall

performance, based on strengths/weaknesses of employee performance rather than specific job

dimensions. By asking supervisors to enumerate specific example of employee behavior, the

essay technique minimizes supervisory bias and the halo effect.

Essays are not amenable for evaluation and analysis; fifty essays describing different

employee’s performance cannot be tied to merit increases and promotion possibilities because

there is no common standard. Another inherent limitation of this method is that the evaluators

may have unequal skills in writing the essays. A skilful writer can present a more dramatic

case about an employee than an awkward writing by the supervisor. Thus, the quality of the

ratings depends, not actually on employee performance, but on the writing ability of the rater. .

AKIMSS, SOLAPUR. 51


Group Appraisal:

This group consists of the immediate supervisor of the employee to other supervisors who

have close contact with the employee’s work, manager or head of the department and

consultants. The head of the department or manager may be the Chairman of the group and the

immediate supervisor may act as the Coordinator for the group activities. This group uses any

one or multiple techniques discussed earlier. The immediate supervisor enlightens other

members about the job characters, compares the actual performance with standards, finds out

the deviations, discusses the reasons therefore, suggests ways for improvement of performance,

prepares action plans, studies the need for change in the job analysis and standards and

recommends change, if necessary. This method is widely used for purposes of promotion,

demotion and retrenchment appraisal. Confidential Reports: Assessing the employees’

performance confidentially is a traditional method of performance appraisal. The superior

appraises the performance of his subordinates based on his observations, judgment and

intuitions. The superior keeps his judgment and report confidentially. The superior writes the

report about his subordinates’ strengths, weaknesses, intelligence, attitude to work, sincerity,

commitment, punctuality, attendance, conduct, character, friendliness etc.

MODERN METHODS

Behaviourally Anchored Rating Scales (BARS)

The Behaviourally Anchored Rating Scales (BARS) method combines elements of the

traditional rating scales and critical incident methods. Using BARS, job behaviours from

critical incidents –effective and ineffective behaviours are described more objectively. The

method employs individuals who are familiar with a particular job to identify its major

components. They then rank and validate specific behaviours for each of the components.

How to Construct BARS?

Step I: Collect Critical Incidents.

Step II: Identify Performance Dimensions.

Step III: Reclassification of Incidents.

Step IV: Assigning Scale Values to the Incidents.AKIMSS, SOLAPUR. 52


Step V: Producing the Final Instrument.

Assessment Centre

This method of appraising was first applied in the German Army in 1930. Later, business and

industrial houses started using this method. This is not a technique of performance appraisal by

itself. In fact, it is a system or organization, where assessment of several individuals is done by

various experts by using various techniques.

Human Resources Accounting

Human Resources Accounting deals with cost of and contribution of human resources to the

organization. Cost of the employee includes cost of manpower planning, recruitment, selection,

induction, placement, training, development, wages and benefits etc. Employee contribution is

the money value of employee service which can be measured by labour productivity or value

added by human resources.

Cost of human resources may be taken as standard. Employee performance can be measured

in terms of employee contribution to the organization. Employee performance can be taken as

positive when contribution is more than the cost and performance can be viewed as negative if

cost is more than contribution. Positive performance can be measured in terms of percentage of

excess of employee contribution over the cost of employee.

Management By Objectives : This method is adopted by the KFIL.

Management by objectives (MBO) is a ‘process whereby the superior and subordinate

managers of an organization jointly identify its common goals, define each individual’s major

areas of responsibility in terms of results expected of him and use these measures of guides for

operating the unit and assessing the contribution of its members. MBO focuses attention on

participative set goals that are tangible, verifiable and measurable. The MBO process is

undertaken along the following lines:

- The subordinate and superior jointly determine goals to be accomplished during the appraisal

period and what level of performance is necessary for the subordinate to satisfactorily achieve

specific goals.

- During the appraisal period, the superior and subordinate update and alter goals as necessary

due to changes in the business environment.

AKIMSS, SOLAPUR. 53


Both superior and subordinate jointly discuss whether the subordinate achieved the goals or

not. If not, they should identify the reasons for deviation like strike/ lock-out, market change.

Psychological Appraisal

Psychological appraisals are conducted to assess the employee’s potential. Psychological

appraisals consist of:-

In depth interviews, Psychological tests, Consultations and discussions with the employee,

Discussions with the superiors, sub-ordinates and peers and Reviews of other evaluations.

Evaluation is conducted in the areas of

i. Employee’s intellectual abilities,

ii. Emotional stability,

iii. Motivational responses.

iv. Reasoning and analytical abilities,

v. Interpretation and judgment skills,

vi. Sociability,

vii. Employee’s ability to comprehend the vents and

viii. Ability to foresee the future.

The psychological appraisal results are useful for decision-making about

i. Employee placement,

ii. Career-planning and development and

iii. Training and development.

APPRAISAL PROCESS:

Each step in the process is crucial and is arranged logically. The process as shown in the figure some what idealized. Many organizations make every effort to approximate the ideal process , resulting in first –rate appraisal systems. unfortunately, many others fail to consider one or more of the steps and , therefore, have less – effective appraisal system. Objectives of performance appraisal

Establish job expectations

AKIMSS, SOLAPUR. 54


Design an appraisal programme

Appraise Performance

Performance Interview

Use appraisal data for appropriate purpose

The performance appraisal process.

USES OF PERFORMANCE APPRAISAL

ii. The use of performance appraisal is that it enables the management to make effective

decisions and/or correct or modify their earlier decision relating to the following issues

of HRM:

Organisation planning based on potentialities of its human resources.

Human Resources planning based on weakness, strengths and potentialities of human

resources.

Organisation effectiveness through performance improvement.

Fixation and refixation of salary, allowances, incentives and benefits.

Original placement or placement adjustment decisions.

AKIMSS, SOLAPUR. 55


Identifying training and development needs and to evaluate effectiveness of training

and development programme.

Career planning and development and movement of employees.

iii. Another use of performance appraisal is that it helps to evaluate the existing plans,

information system, and job analysis, internal and external environmental factors

influencing employee performance like relations with supervisors, working conditions,

personal problems of the worker like family, financial problems and health. This

evaluation suggests and results in improvement in plans, information system, and job

analysis, creating the conductive work environment and controlling the controllable

environmental variables.

iv. It helps the employee to improve his performance and for his self-development.

v. Further, it improves superior-subordinate relations through close interaction and proper

understanding.

AKIMSS, SOLAPUR. 56


CHAPTER 5

DATA PRESENTATION AND ANALYSIS

TABLE: 1

AKIMSS, SOLAPUR. 57


Table is showing the awareness of performance appraisal in the industry. Aware of the performance appraisal

No. of Employees Percentage (%)

A: Yes 45 90%B: No 05 10%Total 50 100%

The above table shows that out of the 50 employee, 45 are aware about performance appraisal (i.e.90% ) & only 5 employees is not aware about the performance appraisal (i.e. 10% ).

AKIMSS, SOLAPUR. 58


TABLE: 2

Table showing the satisfaction of the performance appraisal system:

Satisfaction of the performance appraisal system.


A: Yes 45 90%B: No 05 10%Total 50 100%

The above table shows that out of the 50 employees, 45 employees are satisfied with the performance appraisal system in the organization (i.e.90%) & only 5 employees is not satisfied with the performance appraisal system in the organization (i.e.10% ).

AKIMSS, SOLAPUR. 59


AKIMSS, SOLAPUR. 60


TABLE: 3

Table showing the performance appraisal is important for organization.

Performance appraisal is the important for organization.


A: Yes 50 100%B: No 00 00%Total 50 100%

The above table shows that out of the 50 employees, totally 50 employees are agreed with the performance appraisal is important to the organization (i.e. 100%).

AKIMSS, SOLAPUR. 61


TABLE: 4

Table showing the performance appraisal is help to improve the performance in the organization.

Performance appraisal is help to improve the performance.


A: Yes 43 86%B: No 07 14%Total 50 100%

The above table shows that out of the 50 employee, 43 are agreed with the performance appraisal is help to improve their performance (i.e. 86%) & only 7 employees are not agreed with the performance appraisal is help to improve their performance (i.e. 14%).

AKIMSS, SOLAPUR. 62


TABLE: 5

Table showing the performance appraisal done in fair & justifiable manner in the organization

Performance appraisal done in fair & justifiable manner.


A: Yes 42 84%B: No 08 16%Total 50 100%

. The above table shows that out of the 50 employee, 42 are agreed with the performance

appraisal is done in fair & justifiable manner (i.e. 84%) & only 8 employees are not agreed with the performance appraisal is done in fair & justifiable manner(i.e.16%).

AKIMSS, SOLAPUR. 63


TABLE: 6 Table showing the organization reward for high performance Aware of the performance appraisal


A: Yes 50 100%B: No 00 00%Total 50 100%

AKIMSS, SOLAPUR. 64


The above table shows that out of the 50 employees, totally 50 employees are agreed

with the organization rewards for high performance (i.e. 100%).

TABLE: 7 Table showing the satisfaction with the rewards given by the organization

The satisfaction with the rewards.


A: Yes 45 90%B: No 05 10%Total 50 100%

AKIMSS, SOLAPUR. 65


The above table shows that out of the 50 employee, 45 are satisfied the rewards which given by the organization (i.e. 90%). & only 5 employees are not satisfied with the rewards in the performance appraisal (i.e. 10%).

TABLE: 8 Table showing the performance appraisal is in transferancy. The performance appraisal is in transferancy.


A: Yes 38 76%B: No 12 24%Total 50 100%

AKIMSS, SOLAPUR. 66


The above table shows that out of the 50 employee, 38 are agreed with the performance appraisal is in transferency (i.e. 76%) & only 12 employees are not agreed with the performance appraisal is in transferency.

Table :

The table is showing the result of survey about performance appraisal in KFIL.For performance appraisal in KFIL the modern Management By Objective method is using.

Serial no.

Questions No. of employees

Yes No

In percentage (%)

Yes No1 Employee

awareness of the performance

appraisal

19 1 95% 5%

2 Satisfaction with organizational

appraisal

19 1 95% 5%

3 For development performance appraisal is important

20 00 100% 00%

4 Performance appraisal is help

18 2 90% 10%

AKIMSS, SOLAPUR. 67


to improve a performance

5 Performance appraisal done in fair & justifiable

17 3 85% 15%

6 Reward for high performance

20 00 100% 00%

7

Satisfied with the rewards

19 1 95% 5%

8 Performance appraisal is in transferancy.

15 5 75% 25%

According to the survey the performance appraisal is so very well maintained. Because the result shows above 75% employees are satisfied with the organizational facilities which are providing by them the higher percent of employees are experienced in between 5 to 20 years. In this organization the attrition rate is very less.

KFIL ADOPTEDMANAGEMENT BY OBJECTIVE METHOD:

At Kirloskar Company for performance appraisal modern method that is

Management by objectives (MBO) is being practiced.

First of all they prepare appraisal sheets consisting targets of each department

separately per quarterly then the targets have been achieved by the employees then the review

of performance is been held yearly 4 times. And the final review will be held only once in a

year and ranking will be given to employees and rewards, promotions and bonus are given on

the basis of performance appraisal made at the end of the year.

Four steps in the MBO process

The first step is to establish the goals each subordinate is to attain. In some

organizations there is a superiors and subordinates work together to establish goals. In others,

AKIMSS, SOLAPUR. 68


superiors establish goals for subordinates. The goals typically refer to the desired outcome to

be achieved. These goals can then by used to evaluate employee performance.

The second step involves setting the performance standard for the subordinates in a

previously arranged time period. As subordinates perform, they know fairly well what there is

to do, what has been done, and what remains to be done.

In the third step, the actual level of goal attainment is compared with the goals agreed

upon. The evaluator explores reasons for the goals that were not met and for the goals that

were exceeded. This step helps determine possible training needs. It also alerts the superior to

conditions in the organization that may affect a subordinate but over which the subordinate has

no control.

The final step involves establishing new goals and, possibly, new strategies for goals not

previously attained. At this point, subordinate and superior involvement in goal-setting may

change. Subordinates who successfully reach the established goals may be allowed to

participate more in the goal-setting process the next time. The process is repeated.

PROCESS OF EVALUATING THE PERFORMANCE APPRAISAL IN KFIL

PERFORMANCE APPRAISAL

AKIMSS, SOLAPUR. 69


AKIMSS, SOLAPUR.

Sending Blank Appraisal toConcerned SBU/Dept

Writing down parameters byEmployees LRPAOP

AQIP

PersonalDevelopment

Submission of Appraisal Form to HRM by respective employees

Sending the Appraisal back to the concernedemployee at the end of the each quarter for quarterly

assessment

Self Appraisal by Employee/Appraisee

Assessment by Appraiser

Review by Reviewer

Customer Assessment

70

Continue

Continue


AKIMSS, SOLAPUR.

Annual Assessment

Assessment of Critical Role attributes

Appraiser’s assessment of Performance parameters

Customer’s assessment of Performance parameters

Overall Assessment by Appraiser

Review by Reviewer

Rating the performance

Increment Promotion

Rating the Performance

71

Continue


PERFORMANCE IMPROVEMENT SYSTEMS:

KFIL–S is an ISO 9000 certified company since 1993, in its quest to continuously upgrade its

quality system. To be able to face challenges that the future holds for KFIL-S, it is imperative

that it improves the quality culture and work culture of its employees. The strategic challenges

before KFIL-S, emerge from its intention of becoming export worthy and becoming a major

supplier of quality castings and cylinder assemblies in domestic as well as global market.

In consideration of the market competition and with a view to control internal and external

losses, reduction of process variations, elimination of wastages and enhancement of customer

satisfaction, the existing Quality Management System is upgraded to be upgraded to meet the

requirements of TS16949: 2002 in the month of October 2008. This system lays emphasis on

the key processes monitoring, control and continual improvements. All the process measurable

is analyzed each month by the respective departmental heads and the SBU Head and corrective

measures are taken. CFT meeting forums enable collective decision making and learning’s.

Meetings are called after important visits to customer’s, seminars, competitors etc. along with

tour reports where the knowledge is shared with the rest of the staff. Networking has also been

expanded so that the information dissemination is fast and effective. Oracle ERP has been

implemented in the manufacturing to sales, procurement, and finance

Project Parivartan has been implemented to systematically drive performance through systems

and controls. Management Action Teams have been formed to carry the initiatives by

identifying the key performance indicators and continuously monitoring them. Weekly SCG

meetings are chaired by MD / SBU head to review the progress. Training programmes are

conducted to improve the attitudinal and technical skills and this has improved the competency

levels of the people which are evidenced by the improved parameters.

The company is certified for ISO 14001: 2004 certification in the month of September 2008,

for setting up a system to continuously protect & upgrade the environmental infrastructure at

KFIL-S.

AKIMSS, SOLAPUR. 72


CHAPTER 6

FINDINGS, CONCLUSION, SUGGESTION & BIBLIOGHRAPHY

FINDINGS

AKIMSS, SOLAPUR. 73


Based on the data collection following observations are received in generally:

Almost all employees are aware of performance appraisal methods.

Employees are fully satisfied with these facilities which company is providing them.

Almost all employees feel performance appraisal is essential for an organization.

Almost all employees agree performance appraisal will improve their performance.

Almost all employees agree that performance appraisal is done in fair and justifiable

manner.

Almost all employees agree that they are satisfied with rewards given by the

organization.

Almost all employees agree that performance appraisal is in transferancy.

CONCLUSION:

AKIMSS, SOLAPUR. 74


1. It is concluded that the employees were satisfied with the present performance appraisal

system.

2. It is concluded that the employees attrition rate were very less.

3. It is concluded that ‘workers were getting medical facilities ESI & privilege leaves

properly.

4. It is concluded that according to the ‘Factories act 1948’ all facilities were providing

like safety & health provisions.

5. It is concluded that there were good relation in between employee & workers to each

other.

SUGGESTION

AKIMSS, SOLAPUR. 75


On the basis of findings observations and conclusion researcher has made following suggestions

The organization may arrange some lecture and seminar on HR audit for employees’ knowledge.

The organization may arrange some social and cultural programme for maintain the relationship with employees.

The organization may keep regular follow up about the employees’ performance.

SURVEY FOR PERFORMANCE APPRAISAL!!!!S

AKIMSS, SOLAPUR. 76


Name:-

Department:-

Experience:-

1. Are you aware of the performance appraisal?

Yes No

2. Who conducts the performance appraisal?

3. Are you satisfied with your organization performance appraisal?

Yes No

4. Do you feel Performance appraisal is important for the organization?

Yes No

5. Does performance appraisal help to improve your performance? Yes No

6. Is performance appraisal done in fair & justifiable manner?

Yes No

AKIMSS, SOLAPUR. 77


7. Does the organization reward for high performance?

Yes No

8. The organization rewards in which manner?

9. Are you satisfied with the rewards given by the organization?

Yes No

10. Is performance appraisal made in your presence?

Yes No

AKIMSS, SOLAPUR. 78


BIBLIOGRAPHY:

Sr.no Title Author publisher Year1 Human Resources &

Personnel Management Author

K. Ashwathppa T.M.H. 1998-1999

2 Essential of Human Resources & personnel Management

P. Subba Rao H.P.H. 1999-2000

3 Guideline on project report manager of KFIL

KFIL

4 Website:www.kirloskar.com

KFIL

AKIMSS, SOLAPUR. 79

http://www.kirloskar.com/

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Roopa Chalkageri Performance Appraisal System

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