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
Bharati vidyapeeth University, Pune.
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
Bharati vidyapeeth University, Pune.
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)
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Bharati vidyapeeth University, Pune.
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
Bharati vidyapeeth University, Pune.
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
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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.
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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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Bharati vidyapeeth University, Pune.
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.
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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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Bharati vidyapeeth University, Pune.
CHAPTER 2
COMPANY PROFILE
Kirloskar Ferrous Industries Limited
GOALS OF THE COMPANY
Safety in working areas.
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Bharati vidyapeeth University, Pune.
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.
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Bharati vidyapeeth University, Pune.
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
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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.
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Bharati vidyapeeth University, Pune.
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,
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Bharati vidyapeeth University, Pune.
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
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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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Bharati vidyapeeth University, Pune.
Land marks of kirloskar Group
Year Achievement
1888 Kirloskar brothers established.
1901 India’s first fodder cutter made.
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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
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Bharati vidyapeeth University, Pune.
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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Bharati vidyapeeth University, Pune.
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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Bharati vidyapeeth University, Pune.
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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Bharati vidyapeeth University, Pune.
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
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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.
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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
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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.
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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.
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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
Bharati vidyapeeth University, Pune.
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.
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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
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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, *
Bharati vidyapeeth University, Pune.
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,
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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. *
Bharati vidyapeeth University, Pune.
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.
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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
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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.
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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
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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.
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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
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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.
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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
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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
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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.
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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.
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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. .
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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.
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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.
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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
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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.
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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.
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CHAPTER 5
DATA PRESENTATION AND ANALYSIS
TABLE: 1
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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% ).
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TABLE: 2
Table showing the satisfaction of the performance appraisal system:
Satisfaction of the performance appraisal system.
No. of Employees Percentage (%)
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% ).
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TABLE: 3
Table showing the performance appraisal is important for organization.
Performance appraisal is the important for organization.
No. of Employees Percentage (%)
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%).
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TABLE: 4
Table showing the performance appraisal is help to improve the performance in the organization.
Performance appraisal is help to improve the performance.
No. of Employees Percentage (%)
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%).
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TABLE: 5
Table showing the performance appraisal done in fair & justifiable manner in the organization
Performance appraisal done in fair & justifiable manner.
No. of Employees Percentage (%)
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%).
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TABLE: 6 Table showing the organization reward for high performance Aware of the performance appraisal
No. of Employees Percentage (%)
A: Yes 50 100%B: No 00 00%Total 50 100%
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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.
No. of Employees Percentage (%)
A: Yes 45 90%B: No 05 10%Total 50 100%
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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.
No. of Employees Percentage (%)
A: Yes 38 76%B: No 12 24%Total 50 100%
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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%
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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,
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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
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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
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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
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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.
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CHAPTER 6
FINDINGS, CONCLUSION, SUGGESTION & BIBLIOGHRAPHY
FINDINGS
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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:
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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
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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
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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
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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
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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
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