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A Study on Performance Appraisal of Employees atHOTHUR HYUNDAI MOTORS Pvt. Ltd., Bellary

ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT, BELLARY| 1

A

PROJECT REPORT

ON

A STUDY ON PERFORMANCE APPRAISAL OF EMPLOYEES

AT HOTHUR HYUNDAI MOTORS PVT .LTD., BELLARY

Submitted

In Partial fulfillment of the Requirement for the Award of Degree of

MASTER OF BUSINESS ADMINISTRATION

VIJAYANAGARA SRI KRISHNADEVARAYA UNIVERSITY, BELLARY

Report Submitted By

Mr: SUNDEEP TAPAL

Reg No.MB120231

Under the Guidance of

Ms. DEVIKA RANI. P MBA

Faculty of AKIM

ALLUM KARIBASAPPA INSTITUTE OF MANAGEMENT

Bellary 583104.

2012-2014


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ACKNOWLEDGEMENT

Experience is the best teacher. The knowledge is one of the most important tools.

But practical knowledge is must in each and every field of life from this point of dissertation

report is important and necessary for a management student. Theoretically knowledge is

proved right only when it is applicable on practical base.

The successful completion of any task would be incomplete without the mention of the people

who have made it possible, and whose constant guidance and encouragement served as a

beacon and crowned our effort with success.Firstly, I avail this opportunity with deep sense of

gratitude to my Director Dr. K.Tejas Murthy, Director, AKIM, Bellaryfor giving me an

opportunity and support to conduct the study.

Secondly, I wish to express my profound gratitude to my Guide MsDEVIKA RANI. P

(Internal Guide)for her valuable guidance was the essential ingredient for the successful

completion of the project.I extend my gratitude to all our Lecturers in Department of

Management studies, AKIM, Bellary whose invaluable due guidance for the successful

completion of the project.

As far as my report is concerned, I am very much grateful to Mr. ISHAQ (External

Guide), for his guidance and moral support and also a Special word of gratitude for his

continuous help, encouragement and who spent their precious time and help rendered during

my study. I am grateful to him for his advice and support throughout my study which has

enabled me to complete my project successfully. I am highly grateful to my parents for their

great help in the completion of this study.

And also I extend my deep sense of gratitude to Librarians, Friends, Relatives and

those who helped me directly and indirectly for completion of my study. Finally, I thank all

the Employees who co-operated and helped me for successful completion of my survey. And

my sincere gratitude for their pursuit to make me perfect for my role ahead, an invaluable

imprint in my mind, without whose kind help this project would not have been possible.

Mr. Sundeep Tapal

Reg.No.MB120231


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TABLE OF CONTENTS

CHAPTER 1

Introduction

Statement of the problem

Need for the study

Objective of the study

Scope of the study

Methodology adopted

Limitations of the study

Problem statement

Chapter scheme

CHAPTER 2Industry Profile

Company Profile

History of the company

Milestones, Awards

Details of promoters

Vision, mission & quality policy

Products and services profile

Areas of operation -Global/ National/ Regional

Competitors information

SWOT analysis

Future growth and prospects

CHAPTER 3:

Theoretical Background and Empirical framework

CHAPTER 4:

Data analysis and Interpretation

CHAPTER 5:Findings, Suggestions, Conclusion and Companys feedback.

ANNEXURE

Questionnaire

Bibliography


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INTRODUCTION

Today competition world performance makes a good attitude good change and quickresponse to click in the market. Since the last decade the Indian market for products

and services as a fundamental change, performance of market is changing from the

seller market to the buyer market. Due to the start of liberalization this process has

been accelerated. More and more suppliers are trying to persuade the customers for

similar products and services. Hence, the consumers have variety of choices.

Compressive the knowledge about the company and employees Environment,

structure, models of cars, performance and attitude. In this project we have mainly

concentrated on performance of vehicles, employees, marketing customers, HOTHUR

HYUNDAI Bellary.

Topic chosen for Study:

A Study on Performance Appraisal of Employees at HOTHUR

HYUNDAI MOTORS Pvt. Ltd., Bellary

Statement of the problem:

Whatever may be the behavior of man, there is some stimulus behind it

.Stimulus is dependent upon the motive of the person concerned. Motive can be

known by studying his needs and desires. There is no universal theory that can

explain the factors influencing motives which control mans behavior at any

particular point of time. In general, the different motives operate at different

times among different people and influence their behaviors.

The process of motivation studies the motives of individuals which cause

different type of behavior. The problem of the study is associated with the

motivation of employees of HOTHUR HYUNDAI, Bellary. There are a variety

of factors that can influence a persons level of motivation; some of these factors

include pay and benefits, carrier development, job security etc. Hence this study

is focusing on the employee motivation in the organization.


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Objectives of the Study:

To study the important factors among the various motivational

factors in the company which motivate employees

To study the effect of monetary and non-monetary benefits provided

by the organization on the employees performance.

To study the effect of job promotions on employees.

To learn the employees satisfaction on the interpersonal relationship

exists in the organization.

Scope of the study:

Hyundai Motor India Limited (HMIL) is a wholly owned subsidiary of Hyundai

Motor Company (HMC). HMIL is the largest passenger car exporter and the second

largest car manufacturer in India.

It currently markets ten car models across segments - in the A2 segment it has the

Eon, Santro, i10, Grand, Xcent and the i20, in the A3 segment the Verna, in the A4segment the Elantra, in the A5 segment Sonata and in the SUV segment the Santa Fe.

HMILs fully integrated state-of-the-art manufacturing plant near Chennai boasts

advanced production, quality and testing capabilities. HMIL forms a critical part of

HMCs global export hub. It currently exports to around 120 countries across EU,

Africa, Middle East, Latin America, Australia and the Asia Pacific. HMIL has been

Indias number one exporter for the past eight years consecutively. To support its

growth and expansion plans, HMIL currently has 388 dealers and more than 1000

service points across India.

In its commitment to provide customers with cutting-edge global technology, HMIL

set up a modern multi-million dollar R&D facility in Hyderabad. The R&D center

endeavors to be a center of excellence in automobile engineering


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Research Methodology:

Since the topic of the research project is study the motivational factors that

would be followed is Exploratory Research. This helps to obtain an in-depth

understanding of the problem stated above.

This process of Exploratory Research would be carried out in the following

steps:

Selection of a sample

Formulation of questionnaire

Collection of data using questionnaire and interview method

Analysis of the data obtained.

Methods of Data Collection:

The datas are collected through Primary and secondary sources

Primary Sources:

Primary data are in the form of raw material to which statistical methods are

applied for the purpose of analysis and interpretations. The primary sources are

discussion with employees, datas collected through questionnaire.

Secondary Sources

Secondary datas are in the form of finished products as they have already been

treated statistically in some form or other.

The secondary data mainly consists of data and information collected from

records, company websites and also discussion with the management of the

organization. Secondary data is also collected from journals, magazines and

books.

Secondary data

It has been collected from the text books, company website and some past project

reports and from search engines, www.huthur hyundai.com.


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Limitations of the Study:

This study was limited to the city of Bellary

The study mainly depended on the primary data collected from the

customers

The time period was limited & the study was carried out within the given

time period.

Assumptions were made that all potential employees have given correct

information.

Chapter Scheme:

Chapter-1: The first chapter Introduction provides a general view of the contents of

the study under the major headings-Topic chosen for the study, Need for the study,

Objectives of the study, Scope of the study, Methodology adopted, Limitations of the

study and Chapter scheme.

Chapter-2: The second chapter deals with Industry Profile and Company Profile

reviews the History of the company, milestones, details of promoters, vision, mission

& quality policy, products/services profile, areas of operation, infrastructure facilities,

competitors information, SWOT analysis, future growth & prospects.

Chapter-3: The third chapter covers Theoretical background of the study, literature

review, elaborative information on the subject chosen for better understanding and

usage in the analysis.

Chapter-4: The fourth chapter entitled with Data analysis and interpretation

describes Hothur Hyundai Motor companys analysis and interpretation of the data

collected with relevant tables and graphs and the results obtained by using statistical

tools.

Chapter-5: The sixth chapter entitled with Conclusion consists of the Summary of

fact findings and concludes with a set of appropriate and possible suggestions and

recommendations.


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INDUSTRY PROFILE

Introduction to Automobiles-History:

The automobile as we know it was not invented in a single day by a single

inventor. The history of the automobile reflects an evolution that took place

worldwide. It is estimated that over 100,000 patents created the modern

automobile. However, we can point to the many firsts that occurred along the

way. Starting with the first theoretical plans for a motor vehicle that had been

drawn up by both Leonardo da Vinci and Isaac Newton.

The first successful self-propelled road vehicle was a steam automobile

invented in 1770 by the French engineer Nicolas Joseph Cugnot. Later Nicolas

August Otto invented a 4 stroke gas motor engine in 1876.This engine operation

formed the basis of the future of the internal combustion engine. In 1855,

Gottlieb Daimler invented a gas engine that allowed for a revolution in car

design as it achieved speeds many more times than previous engine


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In the same year Karl Benz the German mechanical engineer designed and built

the worlds first practical automobile to be powered by an internal Combustion

Engine based on Ottos design. It was a three wheeled machine. In 1886,

Daimler took a stage coach and adapted it to hold his engine, there by designed

the worlds first four-wheeled automobile.

Sometime later Daimler & Benz merged together to form a company Daimler Benz.

Cugnots Steam Wagon 1870 Vienna Austria

The Second (1771) Version Worlds Gasoline-run Vehicle

The Firs Marcus Car:

Second Marcus Car of 1888 Geelong Lib At its launch in Australia in 1915

With the increasing competitiveness of the auto market and rising costs many

companies have joined the forces, been brought out or many new been

created. The Estimated global passenger car production in 2005 was 66

million units.
http://en.wikipedia.org/wiki/File:MW2_05_02_24_klein.jpghttp://upload.wikimedia.org/wikipedia/commons/5/56/FardierdeCugnot20050111.jpg


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Major Manufacturers:

General Motors Daimler Chrysler HYUNDAI Honda

Fiat Volkswagen Skoda Toyota

TATA CHEVROLET MITUBISHI FORD


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Car Segmentation

With the expansion of Indian Automotive Market the car models have been

grouped into following segment based on price & size of cars and are

accordingly referred to industry communication

Here is a brief profile of major Automobile Associations active in India. In simple

terms, Automobile Association is an organization of people, in possession ofautomobiles of any kind. In fact, automobile manufacturing companies also have

automobile associations. These associations act as solution providers to many

companies under one roof. Seeing as the entire automobile industry is extensive, it has

numerous issues to be dealt with.

Some associations deal with the manufacturers of auto parts, while others work to

resolve areas like car or truck dealing. These Automobile Associations have various

functions, which are stated below.

The Automobile Associations provide breakdown services and towing services.

These associations also assist their members on tax-related issues.

They also assist members and their family members for the application and

renewal of driving license.

They help their members in matters of insurance as well as its renewal. They

also assist in providing insurance discounts.


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Most of the automobile associations have reciprocal memberships with other

associations; it is beneficial to the members.

These associations also provide distance certificates for very nominal charges.

Automobile Associations also circulate magazines among members so as to

provide them useful and latest information about vehicles and other related

matters.

They also provide legal help to their members and assist to deal with several

crucial auto related issues.

Automobile Associations also voluntarily provide various useful services to the

various government departments, such as, police, customs, transportdepartments, etc.

ACMA: The Automotive Component Manufacturers Association of India (ACMA) is

the nodal agency for the Indian Auto Component Industry. The Association is

enthusiastically involved in trade promotion, technology up-gradation, quality

enhancement and collection and dissemination of information.

FADA: The Federation of Automobile Dealers Associations (FADA) is the major

national body representing Automobile Dealers of India. In 1964, FADA was founded

by four regional Auto Trade Associations, namely, The Automobile Dealers

Association of Maharashtra (Mumbai), The Motor Industries Association (Kolkata).

The Automobile Industry Association (Delhi).

SIAM:Society of Indian Automobile Manufacturers (SIAM) is the major Industry

body which represents 44 leading vehicle and vehicular engine manufacturers in

India. SIAM acts as an important channel of communication for the Automobile

Industry with the Government, National and International organizations.

WIAA: Founded in 15 Oct' 1919, The Western India Automobile Association

(WIAA) is the premier and the largest motoring organizations in South Asia with over

48,000 members on its roll.
http://www.iloveindia.com/cars/automobile-associations/fada.htmlhttp://www.iloveindia.com/cars/automobile-associations/siam.htmlhttp://www.iloveindia.com/cars/automobile-associations/wiaa.htmlhttp://www.iloveindia.com/cars/automobile-associations/wiaa.htmlhttp://www.iloveindia.com/cars/automobile-associations/siam.htmlhttp://www.iloveindia.com/cars/automobile-associations/fada.html


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The head office of Western India Automobile Association is located in Bombay with

branches in Ahmadabad, Pune, Nagpur, Jaipur and Goa CO. HOTHUR HYUNDAI

India Limitedfor Bellary, Koppal and Raichur Districts. It also provides after sales-

service for its esteemed customers. is having its Pre Owned Cars Division, which

has activated from Aug 07. The dealership has an outlet in Raichur which was

activated in the month of July 08 formed being got the dealership of cars of M/s.

HOTHUR HYUNDAI India Limitedfor Bellary, Koppal and Raichur Districts.

We have bagged the best infrastructure award for whole of south of India by

HOTHUR HYUNDAI India Limited declared in Athens, Greece during the Annualmeeting. Within a span of six months, we could manage to sell about 335 vehicles

though it is in infancy period which is an achievement we have got the state of the Art

service division to cater to the needs of our valued customers.


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COMPANY PROFILE

HOTHUR HYUNDAI Pvt. Ltd:

HOTHUR HYUNDAI Private Limitedstarted its operation in the year 2005 Aprilas an Authorized Services satisfier to the needs of the citizen of Bellary, Hospet,

Raichur, Koppal and other nearby areas. The founder of HOTHUR HYUNDAI was

Mr. Noor Ahmed basically a reputed Businessman in Bellary carrying on many

business activities like mining, sponge and iron factory and steel plants from the past

many years. It was his objective to have a four-wheelers automobile dealership in

Bellary so he worked out and established showroom and the workshop with all the

facilities under one roof.

The showroom, which is situated at Allipur (about 8kms from the city), has got all the

facilities, which HYUNDAI once dreamt of having a showroom with facilities like

this. The facilities that are available at the showroom are centralized air cooled

showroom, Emergency road service customers lounge, Children Park with a

fountain, and cafeteria.


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Hyundai Motor India is the wholly-owned subsidiary of Hyundai Motor Company,

Korea. The Korean company set up its subsidiary in India in 1996 with a state-of-the-

art plant in Irrungattukottai, near Chennai, constructed at a total cost of $614 million.

The company's debut car in India, the Hyundai Santro, was designed and developed

keeping Indian road conditions in mind, and the company's factory at Irrungattukottai

is planned to be the only global manufacturing base.

The factory has an installed capacity to manufacture 1, 20,000 cars per annum. In

order to make India the global manufacturing hub of the Santro, Hyundai Motor plans

to shift the production base of the car from South Korea to India in the last quarter of

2003 and base the Hyundai Motor group's exports from India. Between 2003 and

2006 the company will invest $300 million in its Indian operations.

It will increase the assembly line as well as the capacity from the present level of 1.2

lakh to 1.5 lakh units in the next fiscal and to 2 lakh units between mid-2003 and

2006. Hyundai is looking at exports of 40,000 units, mostly to Europe, from India.


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Hyundai Motors is also planning to shift certain research and development (R&D)

facilities from Korea and while basic R& D functions will remain in Korea, India will

become the R&D hub in specific areas such as engine, body design or transmission,

taking advantage of the available technology skill in India. The planned capital

infusion will also be used to expand capacities and fund product launches, including

the premium hatchback Getz and the multi-purpose vehicle Carens.

While the Getz is likely to price between Rs 4.5-5.5 lakh, the Carens is expected to be

introduced with a price tag of about Rs 10 lakh. The firm is also exploring the

feasibility of rolling out another sports utility vehicle Santa-Fe. The company

recorded combined sales of 93,244 units during the financial year 2001-02. For 2002-

2003 the company has set itself a target of selling 1.03 lakh cars. The company's

newest launch in India is the Accent Viva and the company proposes to increase the

manufacturing capacity of the Accent from the present.

Hyundai Motor India has targeted to achieve revenues of $1.2 billion by 2004-05, and

also become the production hub for small cars. It has attained the distinction of being

the second largest and fastest growing car manufacturer in India, having more than

260 service outlets across the country.

Hyundai Motor Company has a presence in 168 nations with a combined sale of close

to 3 million units. The company is likely to emerge as one of the top five auto giants

in the world in the future. Hyundai motor company has broken all records by

achieving the highest ever monthly sales. Hyundai motor company has broken all

records by achieving the highest ever monthly sales.

Hyundai motor company has broken all records by achieving the highest ever monthly

sales. Since our debut in the Indian market with the launch of santro in September

1998, Hyundai has seen cumulative sales peak at a record 53804 units in September

2009. Buoyed by the strong demand in the festive season, Hyundai recorded a high

growth rate of 25% in the domestic market.


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Company Vision:

We must be an internationally competitive company in terms of our products and

services. We must retain our leadership in India and should also aspire to be among

the global players.

Company Mission:

To provide a wide range of modern, high quality fuel efficient vehicles in order to

meet the need of different customers, both in domestic and export markets.

Location:

HOTHUR MOTORS Pvt, ltd.,

#811/12 NH 63, Hospet Road Allipur, Bellary 583105

Tel: 08392-244435 241336.

Email:[email protected]

Place and Customers:

Place represents the location where a product can be purchased. It is often referred to

as the distribution channel. It can include any physical store as well as virtual stores

on the Internet. Marketing includes all resources and set of activities necessary to

direct and facilitate the flow of goods and services from producer to consumer in the

process of distribution. Therefore, it is necessary to make arrangements. For smoothflow of goods and services from the producer to the consumers.

It includes the channels of distribution including transportation, warehousing and

storage, financing and handling of products. The products of Hothur Hyundai are

manufactured at Chennai, Tamilnadu. And are transported only through road.
mailto:[email protected]:[email protected]


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1.

We Delay-We Pay:- Workshop has adopted a system of paying customers back,

if the vehicle is not delivered on time, they have put up a board at the front office

saying; We Delay-We Pay.Rs. 100/- shall be credited in customers final bill

for any of the following instance:

If the vehicle was not delivered at promised deliver time.

More than 10% variance from the estimated bill amount.

Improper explanation of work done & charges.

2. Customer awareness card:

Customer awareness card is printed by workshop indicating the shuttle service

schedule and customer lounge facilities. This card is given to customers at the time of

job card opening. Increase in customer awareness on workshop facilities & enhanced

customer confidence towards the workshop.

3. Free vehicle pick-up & drop service for lady customers:-

Lady customers are being provided free vehicle pick-up & drop facility by the

workshop. Prior appointed with the customer is taken by the workshop and the vehicle

is picked-up for service from the customers place and dropped back after repairs.

A customer awareness board announcing this facility is displayed at the front office

area of the workshop & the customer lounge. Daily appointment, vehicle pick-up &

drop status are being monitored at the workshop

4.

Doorstep service through Mobile Service Van:

Customers vehicle is washed at his/her premises. A mobile Service van is equipped

with car washer, vacuum cleaner and washing material like shampoo, polishes etc.,

and is being used. One supervisor and one washing staff cum driver go along with the

vehicle. Customers dissatisfied with washing quality are attended to with prior

appointment. Faster closure of washing complaints. Workshop washing facility is

generally used for regular customers, as dissatisfied customers get attended at their

premises.


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SWOT ANALYSIS:

Strengths:

Security through advance technology.

Spacious showroom.

Single integrated unit.

Proximity to surrounding market.

Advanced washing bay.

Separate accident repair section.

Weaknesses:

Few skilled techniques.

Less experience sales executive.

Non availability of all spare parts.

Far off from city.

No refreshment facility.

No proper convenience.

Opportunities:

Upcoming Hospet city.

35-40 sponge iron plants.

Managerial level employees of JSW.

Threats:

Good maintained used cars/second hand cars.

Local service stations.


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HYUNDAIs Advantage:

Division of pre-owned Cars- Three years back Hyundai stepped into the used carbusiness. Hyundai started its certified used car program under the brand name

ADVANTAGE to give good quality used cars to Indian car consumers.

It was initially launched by two dealers- Advaith Hyundai and Trident Hyundai- in

Bangalore. The idea behind launching Hyundai Advantage was to increase the

volume of new car sale through exchange offers, increase the margin of dealers

profit, thus making purchase of a car a reality for those who cannot afford a brand

new car.

Price:

The price is the amount a customer pays for the product. It is determined by a number

of factors including market share, competition, material costs, product identity and the

customer's perceived value of the product. The business may increase or decrease the

price of product if other stores have the same product

Here, pricing is done on basis of raw materials used for manufacturing of a product.

Pricing is done by the main Industry; it is followed by HOTHUR HYUNDAI.

According to the changeover of per capita income and also according to consumers

interest pricing is done. Products are sold more only when the price is reasonable to

the customers.

Employees Activity:


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The company plans to showcase the entire product range under one roof. These

showrooms will not be actually retail outlets but brand promotion counters that will

familiarize customers with the models and features of various cars. This idea of

opening brand showrooms is in line with companys plans to invest in marketing

infrastructure and brand building initiatives that aim at improvising customer

experience.

Customers can test drive the cars, familiarize themselves with various features and

then purchase them from dealer outlets, says company official. Products of Hyundai

are brought out to the customer knowledge through the following ways:

1. Advertising:-

Banners.

Posters.

Leaflets.

Pamphlets.

Posters.

Press clippings.

News releases.

Newsletters.

Pictures.

2. Sales Promotion:-

Sales incentives are given to the sales executive. E.g.: If there are nocustomers to the new product, the executive are offered some percentage or

amount of incentives to get the customers for the new product and sell it.

Test drives, handouts and after sale services are other two ways through which

customers are brought to the products.

A poster on introduction of express service facility is put up at the workshop.

Customized Omni van deployed for service marketing in rural areas with

loudspeakers & LCD.


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Customers owning multiple Hyundai vehicles are provided special services to

ensure future business.

3.

Manufacturing facilities:

Their manufacturing facility comprises three integrated plants with flexible assembly

lines located at Chennai in the southern country.

Their facility has advanced engineering capability and each plant is upgraded on an

ongoing basis to improve productivity and quality.They have an installed capacity of

250,000 vehicles per year, which is the highest among passenger car manufacturers in

India. They have consistently produced in excess of their installed capacity in the five

fiscal years.

4.

Customer friendly service facilities:

As the name suggests, these are the steps taken towards providing a better

&comfortable service experience for the customers. These activities provide service

comfort and educate the customer on various service related activities, creating

confidence and loyalty among the customers.

5. Online appointment system:

A website has been launched for online booking of the vehicles for servicing. It

becomes very convenient for the customers to book the vehicle for the service.

6. Display of customer lounge facilities:

A customer awareness board is displayed at the job card opening area, showing

various facilities and amenities available at the customer lounge. Showing such a

picture board coveys to the customer. WITH U ALL THE WAY attitude of the

workshop and the facilities which result in more Wait & Take deliveries

7.

Entertainment facilities:

Customer lounge is equipped with activities like; chess and go-cart to help customers

spend quality times as their vehicles are being serviced.


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Customers prefer to wait and take their vehicle after service/repair. This improves

customer satisfaction and workshop productivity.

8.

Free customer portrait:

Workshop lady attendant has been appointed to make portrait of the customer, who

are waiting in the customer lounge.

The portrait is handed over to the customer at the time of delivery of the vehicle.

Customers revisit the workshop with their families for the next service, especially for

getting portrait for their families.

Future growth and prospects:

Hyundai will continue to enter new product segments, including upscale niches, while

keeping lower-priced models fresh over the next three years. The Veloster sporty

coupe will join the lineup this fall, and a turbocharged version comes next summer. A

redesignedAzera sedan debuts in the final weeks of this year, and a two-doorElantra

will go on sale next spring.

Short- and long-wheelbase versions of the Santa Fe crossover will be offered when

the vehicle is redesigned next year. Further down the road, Hyundai will launch a

more luxurious SUV, a dedicated plug-in hybrid sedan and a sport sedan to compete

with theBMW 3-series.

Accent:TheAccent which has been on sale since July, was redesigned for the

2012 model year. A new 1.6-liter gasoline direct injection four-cylinder from

Hyundai's Gamma engine family replaces the old four-banger.

Genesis:The high-performanceGenesis R-Spec sedan was added for the 2012

model year as the top trim level of Hyundai's mid-sized luxury car. The R-

Spec gets 429 hp and 376 pounds-feet of torque from a new 5.0-liter gasoline

direct injection V8 engine teamed with a new eight-speed automatic

transmission. An updated 3.8-liter V6 engine powering the base Genesis adds

gasoline direct injection technology for 2012, helping to boost output by 15

percent to 333 hp and torque by 10 percent to 291 pounds-feet.
http://www.autoweek.com/section/hyundai&template=newcarshttp://www.autoweek.com/section/veloster&template=newcar&make=Hyundaihttp://www.autoweek.com/section/Azera&template=newcar&make=Hyundaihttp://www.autoweek.com/section/Elantra&template=newcar&make=Hyundaihttp://www.autoweek.com/section/Santa%20Fe&template=newcar&make=Hyundaihttp://www.autoweek.com/section/3_series&template=newcar&make=BMWhttp://www.autoweek.com/section/accent&template=newcar&make=Hyundaihttp://www.autoweek.com/section/genesis&template=newcar&make=Hyundaihttp://www.autoweek.com/section/genesis&template=newcar&make=Hyundaihttp://www.autoweek.com/section/accent&template=newcar&make=Hyundaihttp://www.autoweek.com/section/3_series&template=newcar&make=BMWhttp://www.autoweek.com/section/Santa%20Fe&template=newcar&make=Hyundaihttp://www.autoweek.com/section/Elantra&template=newcar&make=Hyundaihttp://www.autoweek.com/section/Azera&template=newcar&make=Hyundaihttp://www.autoweek.com/section/veloster&template=newcar&make=Hyundaihttp://www.autoweek.com/section/hyundai&template=newcars


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In 2013 the Genesis will get new sheet metal and a new interior, as well as a re-

engineered platform with major improvements, including all-wheel-drive.

Veloster:Hyundai's sporty coupe will arrive in showrooms in September. The

Veloster features a hatchback roofline and third door on the passenger-side

rear. Powering the Veloster at launch will be a 1.6-liter gasoline direct

injection four-cylinder engine and Hyundai's first dual clutch transmission.

ORGANISATIONAL STRUCTURE:

CEO

Chief Operating Officer (COO)

Deputy General Manager (DGM)

Human

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Access

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New Car

Sales

True

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New Car

SalesManager

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EndSupport

Team

Acc

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HRE`S CCE`S Adviso

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Team

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DESIGNATION NAME

General manager Mr.Wilson.Y.G

HR Manager Mrs.Suguna

Deputy General Manager Mr.Afzal Shariff.R.S.

Works Manager Mr. Mallikarjan

Supervisor (service) Mr. Srishail &Mr.Basavaraj

Sales manager Mr. Sunil Patil


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THEORETICAL BACKGROUND

Performance appraisal

The performance appraisal is the process of assessing employee performance by way

of comparing present performance with already established standards which have

been already communicated to employees, subsequently providing feedback to

employees about their performance level for the purpose of improving their

performance as needed by the organisation.

As said above the very purpose of performance uprising is to know performance of

employee, subsequently to decide whether training is needed to particular employee

or to give promotion with additional pay hike. performance appraisal is the tool for

determining whether employee is to be promoted, demoted or sacked ( remove ) in

case of very poor performance and no scope for improvement.

Every corporate sector uses performance appraisal as a tool for knowing about the

employee and take decisions about particular employee. for the purpose of

performance appraisal of employees there are different methods under the category of

traditional methods and modern methods which are discussed in following chapters.

What is Performance?

What does the term performance actually mean? Employees are performing well

when they are productive. Productivity implies both concern for effectiveness and

efficiency, effectiveness refers to goal accomplishment. However it does not speak ofthe costs incurred in reaching the goal. That is where efficiency comes in. Efficiency

evaluates the ratio of inputs consumed to outputs achieved.

The greater the output for a given input, the greater the efficiency. It is not desirable

to have objective measures of productivity such as hard data on effectiveness, number

of units produced, or percent of crimes solved etc and hard data on efficiency

(average cost per unit or ratio of sales volume to number of calls made etc.).


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In addition to productivity as measured in terms of effectiveness and efficiency,

performance also includes personnel data such as measures of accidents, turnover,

absences, and tardiness. That is a good employee is one who not only performs well

in terms of productivity but also minimizes problems for the organisation by being to

work on time, by not missing days, and by minimizing the number of work-related

accidents.

What is Appraisal?

Appraisals are judgments of the characteristics, traits and performance of others. On

the basis of these judgments we assess the worth or value of others and identify whatis good or bad. In industry performance appraisal is a systematic evaluation of

employees by supervisors. Employees also wish to know their position in the

organization. Appraisals are essential for making many administrative decisions:

selection, training,promotion, transfer, wage and salary administration etc. Besides

they aid in personnel research.

Performance Appraisal thus is a systematic and objective way of judging the relativeworth of ability of an employee in performing his task. Performance appraisal helps to

identify those who are performing their assigned tasks well and those who are not and

the reasons for such performance.

Definitions:

Performance appraisal has been defined by different scholars in various ways. Some

of the important definitions are as follows:

Dale S. Beach, "Performance appraisal is systematic evaluation of the individual with

respect to his or her performance on the job and his or her potential for development".

Randall S. Schuler, "Performance appraisal is a formal, structured system of

measuring and evaluating an employees job, related behaviour and outcomes to

discover how and why the employee is presently perfuming on the job and how the

employee can perform more effectively in the future so that the employee,

organisation, and society all benefit."
http://www.whatishumanresource.com/pre-employment-testshttp://www.whatishumanresource.com/Employee-Training-Introductionhttp://www.whatishumanresource.com/promotions-of-employeehttp://www.whatishumanresource.com/employee-transfershttp://www.whatishumanresource.com/employee-transfershttp://www.whatishumanresource.com/promotions-of-employeehttp://www.whatishumanresource.com/Employee-Training-Introductionhttp://www.whatishumanresource.com/pre-employment-tests


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Heyel, "It is the process of evaluating the performance and qualifications of the

employees in terms of the requirements of the job for which he is employed, for

purposes of administration including placement, selection for promotions, providing

financial rewards and other actions which require differential treatment among the

members of a group as distinguished from actions affecting all members equally."

Dale Yoder, ''Performance appraisal includes all formal procedures used to evaluated

personalities and contributions and potentials of group members in a working

organisation. It is a continuous process to secure information necessary for making

correct and objective decisions on employees."

Performance appraisal from employee point of view -"A performance appraisal is

meant to help employees realise their strengths and shortcomings and receive a

compensation accordingly."

How often should appraisals take place?

Performance appraisal in any organisation will be done at a specific period, like

annually or half yearly or quarterly or maybe regularly. It all depends upon the nature

or size of the organisation, and sometimes necessity of the managers decide the period

of performance appraisal of their employees. Most of organisations are insisting

employee appraisal should be a continuous process and should not be limited to a

formal review once a year.

The frequency of formal appraisals will depend on the nature of the organization and

on the objectives of the system. For example, in a high technology organisation

objectives may be changing quickly so that formal appraisals may need to be carried

out more than once a year. In an environment which is less subject to change, annual

appraisals may be sufficient. Most employees receive a formal appraisal annually,

although more frequent appraisals are often needed for new employees, for longer

serving staff who have moved to new posts or for those who are below acceptable

performance standards.


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Adobe Systems, U.S based software company has abolished annual performance

appraisal system of its employees. Instead company management has introduced

regular feedback method for reviewing regular performance of its employees rather

than waiting till year ending for performance review. Company managers feel regular

feedback will improve the performance of employees as they come to know their

regular performance, further managers are considering these regular feedback in the

matter of salary hikes and promotions.

Mid-year appraisals good for staff motivation

Appraisals may no longer exist as once-a-year phenomena. A growing number of

companies are opting for mid-year - and even quarterly - reviews. The main argument

in favour of this trend is that it may not be wise for a company to wait as long as one

year to assess employee performances.Whether it is to reward employees for

something they did two quarters back or bringing them back on the path of growth, in

case they have strayed, companies have realized the earlier they do so, the better.

Organizations like Deutsche Bank and Akzo Nobel India have been following mid-

term performance reviews for a few years now, while the list of other companies

following this model appears to be growing. Nivea India is among those which have

recently adopted the practice.

According to Makarand Khatavkar, MD and head, HR (Dt. 2012) at Deutsche Bank,

the bank is trying to make its mid-term reviews more robust. The move is aimed at

making managers and employees more accountable. Bank is currently conducting a

communication and education exercise to train and convey to all our employees about

the new performance system.At Deutsche Bank, performance standards are being

made more objective so that they are easy to understand and implement.

During annual appraisals, mostly recent accomplishments and disappointments may

get noticed as these are fresh in the memory while the events which date back a few

quarters could go unnoticed. At global paints and coatings major, Akzo Nobel India,

appraisals are a continuous process.


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"The HR team conducts workshops with managers before the mid-year and year-end

cycle based on the performance and development dialogue process. The mid-year

review is not about ratings but is geared at reviewing and providing guidance to the

employees. The year-end process, on the other hand, focuses more on self assessment

and involves feedback by both primary and secondary reviewer," said Sangeeta

Pandey, director, HR (Dt. 2012), Akzo Nobel India.

HCL Technologies is looking at a unique experiment this year - whether appraisals

could be based on feedback from peers and subordinates and if the same practice

could be extended to rewards and recognitions as well. The company is looking at

piloting this experiment with a small group. The company, however, didn't elaborate

on details as the process is in early stages.

Performance Management:

Definition: Employee performance management is the process of involving

employees in accomplishing your agencys mission and goals. Employee performance

management includes: planning work and setting goals, monitoring performance,

developing capacity, reviewing performance, and rewarding good work. In the first

four steps we discuss about understanding customers, create customer value, built

strong customer relationship. The fifth step captures value from customers in the form

of sales, profits & long term customer equity.

Performance Management Cycle:


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.

Performance management(PM) includes activities which ensure that goals are

consistently being met in an effective and efficient manner. Performance management

can focus on the performance of an organization, a department, employee, or even the

processes to build a product of service, as well as many other areas.PM is also known

as a process by which organizations align their resources, systems and employees to

strategic objectives and priorities. Performance management originated as a broad

term coined by Dr. Aubrey Daniels in the late 1970s to describe a technology (i.e.

science imbedded in applications methods) for managing both behavior and results,

two critical elements of what is known as performance. A formal definition of

performance management, according to Daniels' is "a scientifically based, data-

oriented management system. It consists of three primary elements-measurement,

feedback and positive reinforcement.

Behavior - Oriented Systems:

Ranking Methods

Strait Ranking

High-Low (Alternate Ranking)

Paired Comparison

Forced Distribution (similar to ranking)

Graphic Rating Scales
http://en.wikipedia.org/wiki/Aubrey_Danielshttp://en.wikipedia.org/wiki/Aubrey_Daniels


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Appraisal Interviews

Give Feedback daily

Encourage participation

Judge performance not personality

Be specific - provide critical incidents

Set mutual goals

Problems with Appraisals:

Survey by Ernst & Young showed that 38% of employees say they are rated

unfairly or not at all

Deming argues that Performance Appraisal is A Deadly Disease in

Organizations

Disregards existence of system

Erroneously attributes variation in performance to individuals (85-15 rule)

Undermine teamwork, improvement

Focuses on short-term, end product

Progressive Disciplinary Systems

Reasons to Avoid Discharge

Unfair Labor Practice (Legal & Contractual Restrictions)

Company Payments Toward Unemployment & Severance Pay

Strikes

Investment in Human Resources


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Performance Measures

Subjective Measures - Performance Measures

Who Rates? Supervisors, Peers, Subordinates, Self

Errors & Biases

Halo Error

Central Tendency

Leniency (Positive & Negative)

Goal is to Accurately Appraise Performance

Methods:

Ranking - Rank order rates from highest to lowest

Behavioral Checklist - Series of Descriptive Statements of Job-Related

Behavior

Sample schedule for the performance management cycle

Complete operating plan

Update quarterly performance plan form with major agency objectives

Conduct training for supervisors (and employees)

Communication before, during, after

Timeframe for completion of appraisal

Timeframes for quarterly performance plans

Interface with compensation schedule


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Rewards, recognition, and compensation

Recognizing employees for performance

Non-monetary rewards

Informal and ongoing acknowledgements of good work

Compensation

Merit increases?

Pay to market?

Increases added to base pay or lump sum?

Approaches to designing an appraisal form:

Trait based

Behavior based

Competencies (or performance factors)

Behaviors

Results based

Performance outcomes

Objectives

Identifying information

Instructions

Performance outcomes and/or results achieved (or not achieved) on objectives

Performance factors / competencies / work behaviors

Employee signature and approvals


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Evolution of Performance Management:

First Phase:The origin of performance management can be traced in the early 1960swhen the performance appraisal systems were in practice. . During this

period, Annual Confidential Reports (ACRs)was also known as Employee service

Records were maintained for controlling the behaviors of the employees and these

reports provided substantial information on the performance of the employees.

Second Phase:This phase continued from late 1960s till early 1970s, and the key

hallmark of this phase was that whatever adverse remarks were incorporated in the

performance reports were communicated to the employees so that they could take

corrective actions for overcoming such deficiencies

Third Phase: In this phase the term ACR was replaced by performance appraisal.

One of the key changes that were introduced in this stage was that the employees

were permitted to describe their accomplishments in the confidential performance

reports, several new components were considered by many organizations which could

measure the productivity and performance of an employee in quantifiable terms such

as targets achieved, etc.

Fourth Phase: This phase started in mid 1970s and its origin was in India as great

business tycoons like Larsen & Toubro, followed by State Bank of India The system

focused on performance planning, review and development of an employee by

following a methodical approach. In the entire process, the appraise (employee) and

the reporting officer mutually decided upon the key result areas in the beginning of a

year and reviewed it after every six months. In the review period various issues such

as factors affecting the performance, training needs of an employee, newer targets and

also the ratings were discussed with the appraise in a collaborative environment. This

phase was a welcoming change in the area of performance management and many

organizations introduced a new HR department for taking care of the developmental

issues of the organization.

Fifth Phase:This phase was characterized by maturity in approach of handling

peoples issues. It was more performance driven and emphasis on development,

planning and improvement.


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Utmost importance was given to culture building, team appraisals and quality circles

were established for assessing the improvement in the overall employee productivity.

Nature of Personnel Management:

Personnel management includes the function of employment, development

and compensation- These functions are performed primarily by the personnel

management in consultation with other departments.

Personnel management is an extension to general management. It is concerned

with promoting and stimulating competent work force to make their fullest

contribution to the concern.

Personnel management exists to advice and assists the line managers in personnel

matters. Therefore, personnel department is a staff department of an organizationThe

performance management system is still evolving and in the near future one may

expect a far more objective and a transparent system.

Personnel management lays emphasize on action rather than making lengthy

schedules, plans, and work methods.

The problems and grievances of people at work can be solved more effectively

through rationale personnel policies.

It is based on human orientation. It tries to help the workers to develop their

potential fully to the concern.

It also motivates the employees through its effective incentive plans so that the

employees provide fullest co-operation.

To help the employees in identifying the knowledge and skills required for

performing the job efficiently as this would drive their focus towards performing the

right task in the right way

Boosting the performance of the employees by encouraging employee

empowerment, motivation and implementation of an effective reward mechan


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Product:

Hothur Hyundai dealers deals with the as follows Santro xing, i10, Getz prime, i20,Accent, Verna, Sonata, Tucson. The products are manufactured at Chennai. If the

products have to reach the showroom the indent has to be placed to the

manufacturer and then the vehicles are sent. There are no middlemen for the

movement of products. Products are directly sent by the manufacturers to the

showroom and sold to the final consumers. More demanded products are bought by

one month and if they are normal demanded are bought by 7 or 10 days. They have

cars differentiated into Small cars, Middle cars, Long size cars MUV-Multi utility

vehicle and SUV-Sports utility vehicle.


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DATA ANALYSIS AND INTERPRETATION

1.

Are you aware of performance appraisal system functioning in

your company?

Table-1

Category No. of respondents Percentage

Yes 43 86%

No 07 14%

Total 50 100

Interpretation: The above chart shows that 86% of respondents having awareness of

performance appraisal system functioning in Hothur steels. It concludes that all

employees are having awareness of the performance appraisal system.

86%

14%

Aware of performance appraisal

system functioning

Yes

No


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2. Do you know the criteria used for evaluating the performance?

Table-2

Opinion No. of respondents Percentage

Yes 34 68%

No 16 22%

Total 50 100

Interpretation: The above chart clearly describes that, out of 50 respondents 68% of

employees are having awareness about performance evaluation process in their

company.

68%

32%

Criteria used for evaluating theperformance

Yes

No


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3. Who does the appraisal?

Table-3


Immediate superior 0 0

Superiors superior 0 0

Committee of superiors 0 0

Peers 8 16%

Self appraisal by

individual manager

42 84%

Total 50 100%

Interpretation: The above chart shows that 84% of respondents viewed that appraisal

is made by the self-appraisal by individual manager and 16% of the respondents are

peers.

0

00

16%

84%

Percentage

Immediate superior

Superiors superior

Committee of superiors

Peers

Self appraisal by

individual manager


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4. Do you practice M.B.O (Management by Objectives) in your

organization?

Table-4


Yes 04 08%

No 46 92%

Total 50 100

Practice M.B.O (Management by Objectives) in your organization

Interpretation: The above chart shows that 92% of the respondents are viewed that

the organization is not practiced M.B.O method where as 8% of the respondents

answered yes.

92%

8%

Yes

No.

practice M.B.O (Management by Objectives) in your organization


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5. Do you receive any feedback after the performance appraisal?

Table-5


Periodical discussion 03 06%

Written communication 43 86%

Counseling 04 08%

Any other 0 0

Total 50 100

Interpretation: The above chart clears that 86% of the respondents are viewed that

they receive the feedback through written communication, followed by 8% by

counseling and remaining 6% by periodical discussion.

6%

86%

8% 0%

Receiving any feedback after the

performance appraisal

Periodical discussion

Written communication

Counseling

Any other


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6. How are you made aware about your performance and areas to be

improved if any?

Table-6


Periodical discussion 0 0

Written communication 36 72%

Counseling 14 28%

Any other 0 0

Total 50 100

Interpretation: The above chart shows that, 72% of the respondents are made aware

with the written communication and 28% with counseling regarding awareness about

your performance and areas to be improved through these means.

0

72%

28%

0

Aware about your performance and

areas

Periodical discussion

Written communication

Counseling

Any other


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7. Do you ever receive any rewards for good/excellent performance?

Table-7


Yes 30 60%

No 20 40%

Total 50 100

Interpretation: The above chart shows that 60% of the respondents are viewed that

they received towards for good/excellent performance and 40% of the respondents are

viewed that they are not receiving.

60%

40%

Receiving any rewards forgood/excellent performance

Yes

No


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8. Does it affect relationships between you and your appraiser?

Table-8


Yes, positively 6 12%

Yes, negatively 0 0

No it does not effect 44 88%

Total 50 100

Interpretation: The above chart shows that, 88% of the respondents are viewed that

relationship will not be affect with the appraiser and 12% of the respondents are

viewed that there will be positive relationship.

12%

0

88%

Percentage

Yes, positively

Yes, negatively

No it does not effect


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9. Do you feel the supervisor is fair in evaluating your performance?

Table-9


Yes 47 94%

No 03 06%

Total 50 100

Interpretation:The above chart clearly shows that 94% of the respondents are

viewed that supervisor is fair in evaluating your performance and 6% of the

respondents are not viewed.

94%

6%

Supervisor is fair in evaluating yourperformance

No. of respondents

Percentage


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10. Do you suggest any improvement in the performance appraisal system?

Table-10


Yes 05 10%

No 45 90%

Total 50 100

Interpretation: The above chart shows that 90% of respondents have not

suggested to any improvements in performance appraisal system and only 10%

of employees have suggested their ideas.

90%

10%

Suggesting any improvement in

the performance appraisal system

No

Yes


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FINDINGS

Out of 50 respondents 86% of respondents having awareness of performance

appraisal system functioning in Hothur steels. It concludes that all employees

are having awareness of the performance appraisal system.

68% of employees are having awareness about performance evaluation

process in their company.

84% of respondents viewed that appraisal is made by the self-appraisal by

individual manager and 16% of the respondents are peers.

92% of the respondents are viewed that the organization is not practiced

M.B.O method where as 8% of the respondents answered yes.

86% of the respondents are viewed that they receive the feedback through

written communication, followed by 8% by counseling and remaining 6% by

periodical discussion.

72% of the respondents are made aware with the written communication and

28% with counseling regarding awareness about your performance and areas

to be improved through these means.

70% of the respondents are viewed that they received towards for

good/excellent performance and 30% of the respondents are viewed that they

are not receiving.

88% of the respondents are viewed that relationship will not be affect with the

appraiser and 12% of the respondents are viewed that there will be positive

relationship.

94% of the respondents are viewed that supervisor is fair in evaluating

your performance and 6% of the respondents are not viewed.

90% of respondents have not suggested to any improvements in

performance appraisal system and only 10% of employees have

suggested their ideas.


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SUGGESTION

The company should cover the remaining respondents regarding

awareness of performance appraisal system and performance

evaluation process.

Reduce the self-appraisal system in the organization.

Organization must practice M.B.O method for employee welfare.

Company should cover the awareness to the employees who are

un-aware about the performance appraisal.

Performance should be reviewed quarterly and statistically.

Personnel counseling should be organized in special cases.

Post appraisal feedback should be introduced

Rewards should be introduced for good performance.


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CONCLUSION

It has been observed that most customers are satisfied with pre sales services

Similarly most of these customers are dissatisfied with the post sales service

which is the matter of concern for the company. HOTHUR HYUNDAI needs

to improve some parts of products specifically the interiors. High customer

satisfaction level helps the company to retain its existing customer as well as

generate new customer through word to mouth publicity. Customer satisfaction

index is a good tool to make improvements in the products and services of the

company.

And therefore should utilize carefully & kept as confidential as possible As

there is a bottle neck competition between TATA,TOYOTA and HOTHUR,

Hyundai it is Necessary to take measure steps to overcome the area of downfall in

HOTHUR with respect to Hyundai. The company should look into the matter of

person hiring for in Showroom demonstration. A big showroom should have at least

5 such kind talent of persons. So company should always improve services and

update their technology.


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BIBILOGRAPHY

BOOKS:Performance Management- Dr.Aubrey Daniels

Human resource and Personnel Management-K.Ashwatappa

WEBSITE

WWW.Hothur Hyundai.Com

www.cardeko.com
http://en.wikipedia.org/wiki/Aubrey_Danielshttp://www.hothur/http://www.cardeko.com/http://www.cardeko.com/http://www.cardeko.com/http://www.hothur/http://en.wikipedia.org/wiki/Aubrey_Daniels


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ANNEXURE

QUESTIONNARIE

Respected Sir/Madam,

Iam Sundeep Tapal studying in second year MBA at Allum Karibasappa Institute of

Management, Bellary. In the partial fulfillment of MBA degree conducting study on

"A study on Performance Appraisal of Employees at Hothur Hyundai Motors. Pvt.

Ltd., Bellary", I request you to please fill up this questionnaire and it will be kept

confidential.

1)Personal Data:

1 .Name :

2. Age :

3. Sex :

4. Marital status :

5. Educational qualification:

2) Data-Employment:

1. Department :

2. Designation :

3) The Criteria of Performance Appraisal:

1. Are you aware of performance appraisal system functioning in your company?

a) Yes [ ]

b) No [ ]


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2. Do you know the criteria used for evaluating the performance?

a) Yes [ ]

b) No [ ]

3. Who does the appraisal?

a) Immediate superior [ ]

b) Superior's superior [ ]

c) Committee of superiors [ ]

d) Peers [ ]

e) Self-appraisal by individual manager [ ]

4. Do you practice M.B.O (Management by Objectives) in your organization?

a) Yes [ ]

b) No [ ]

5. Do you receive any feedback after the performance appraisal?

a) Periodical discussion [ ]

b) Written communication [ ]

c) Counseling [ ]

d) Any other [ ]


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6. How are you made aware about your performance and areas to be improved if any?

a) Periodical discussion [ ]

b) Written communication [ ]

c) Counseling [ ]

d) Any other [ ]

7. Do you ever receive any rewards for good/excellent performance?

a) Yes [ ]

b) No [ ]

8. Does it affect relationships between you and your appraiser?

a) Yes, positively [ ]

b) Yes, negatively [ ]

c) No, it does not affect [ ]

9. Do you feel the supervisor is fair in evaluating your performance?

a) Yes [ ]

b) No [ ]

10. Do you suggest any improvement in the performance appraisal system?

a) Yes [ ]

b) No [ ]

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