SUMMER TRAINING PROJECT How Performance Appraisal helps in Job Satisfaction" Undertaken at Usha Lexus.

Ltd Submitted in the partial fulfillment for the award of the degree of BACHELOR OF BUSINESS ADMINISTRATION Under the Supervision and Guidance of Mrs. Shalini Sahni Faculty, TIPS Submitted by: SHIKHA SHARMA 07020601809 BBA (B&I) Vth SEM

Session: 2009-2012 TRINITY INSTITUTE OF PROFESSIONAL STUDIES (Affiliated to Guru Gobind Singh Indraprastha University, Delhi) Sector 9, Dwarka Institutional Area, Dwarka, New Delhi 110075

CERTIFICATE

This is to certify that the project work done on "How Performance Appraisal Helps in Job Satisfaction submitted to Guru Gobind Singh Indraprastha University, Delhi by SHIKHA SHARMA in partial fulfillment of the requirement for the award of degree of Bachelor of Business Administration, is a bonafide work carried out by him under my supervision and guidance. The work was carried during the period from 20th June, 2010 to 6th August, 2011 in Usha Lexus Limited. During the training period her behavior & performance was satisfactory.

Date: Name of the Guide: Mrs. Shalini Sahni

ACKNOWLEDGEMENT

I would like to thank Usha Lexus Ltd. & Mr. Vijay Sharma Human Resourse Manager for providing me with this unique opportunity to explore my academic interests in the field of Marketing & Sales and extending all support to me during my internship. With his persistent guidance, motivation and encouragement in all my ventures I could successfully complete my project. It has been a highly enriching experience to do my Internship at Usha LexusLtd., during the summers of 2011. It has been possible to achieve the perfect blend of valuable experience gained from the work place and the indispensable knowledge gathered from there. My initial days at Usha LexusLtd. have given me a new experience in life. The corporate culture was all new to me.

I would like to express my sincere gratitude towards my faculty guide Mrs. Shalini Sahni for guiding me throughout the project and providing me constant moral support & invaluable feedback.

I would also like to thank entire team of Usha Lexus Ltd. who has been a pillar of support for me.

(Signature of the student) SHIKHA SHARMA

Scope of the study: The scope of the study is very vital. Not only the Human Resource department can use the facts and figures of the study but also the marketing and sales department can take benefits from the findings of the study.

Scope for the sales department The sales department can have fairly good idea about their employees, tat they are satisfied or not.

Scope for the marketing department

The marketing department can use the figures indicating that they are putting their efforts to plan their marketing strategies to achieve their targets or not

Scope for personnel department

Some customers have the complaints or facing problems regarding the job. So the personnel department can use the information to make efforts to avoid such complaints.

CHAPTER 1

COMPANY PROFILE

INDUSTRY PROFILE

My project report revolves around consumer goods industry. Retailing, distribution, manufacturing and the supply chain that links them together have seen recent significant change. New sales channels, particularly web-based e-tailing, and the continuing drive for globalization have placed increasing pressure on the consumer goods industry. Consequently there has been a continuing drive to re-engineer consumer goods supply chains with the aim of establishing major efficiencies. This investment has affected strategies, structures, operations, and systems throughout retailing. However, whether supply chains are responsive enough to handle the continuing changes in markets and consumer demand is still questioned. Our consultants help clients achieve closer end-to-end integration of their supply chains. The indications are that there will be even tighter linkages between suppliers, distributors and resellers and we have developed specialized services to achieve this, including:

Competitive supply chain resilience (CSCR) We identify key supply chain (and wider supply network) processes and classify them using a method that links with business strategy so that their vulnerability can be effectively identified and prioritized. Improvement projects and potential scenarios are established and an effective business case produced.

Health check/review of IT processes and systems Our consultants conduct an objective review of I.T. strategy, architecture and alignment to business efficiency and effectiveness including benchmarking against recognized standards of best practice.

Delivering value from ERP This service allows organizations to achieve the greatest return from their investment in ERP systems. Cornwell consultants help effect benefits at the adoption, realization and optimization phases leading to the identification and delivery of advantages beyond the original business case, achieving true ERP.

Packaged software evaluation and selection Cornwell is totally independent from all software and hardware vendors so our consultants are able to provide objective advice in the process of evaluating and selecting software packages for financials, purchasing and supply chain, and CRM.

Enterprise content management Emails, word documents and other unstructured information within organizations are increasingly used to communicate with suppliers and customers. Our enterprise service is designed to help organizations identify and implement solutions that let them improve productivity, support their staff and customers and risks associated with incomplete or inconsistent information.

Business/IT function outsourcing advice We assess the business function outsourcing opportunity and examine the viability of forming an outsourcing relationship. Our consultants assist with the selection and implementation, including the structure of service level agreements, and provide help in subsequent management of the outsourcing arrangement. We also offer health checks and reviews of existing arrangements.

Consumer Products

The consumer products industry is comprised of a variety of products, such as toiletries and cosmetics, small appliances, consumer durables, consumer electronics, and other household items. This industry has seen steady growth since the Industrial Revolution, and with the rising markets of Russia, China, and India starting to demand more commodities, this growth is expected to continue into the future.

There are 685 members in the E- Network for this industry.

Highly Fragmented

Highly Concentrated

The Consumer Products industry is concentrated. The production in this industry is dominated by a many large firms that are capable of shaping the industrys direction and price levels.

Primary Demand Drivers:

Profitability Drivers:

Consumer income and spending Home sales Domestic economic activity

Effective marketing Efficient operations Increasing store traffic Efficient inventory management Adequate order fulfillment operations

Company Profile

VISION The Companys vision is to set a benchmark in the hospitality industry by providing high standards of comfort and luxury for the discerning business and leisure travelers. Mission To be recognized as household and trusted Brand of home furnishings that brings total satisfaction to the customers through its quality, utility and affordability. Its specialties are providing international quality consumer electronics products at Indian prize. The LEXUS brand name is known around the country and is reputed to provide latest life style products of international quality. The Siddharth Shriram Group The Siddharth Shriram Group is the company behind one of India's best loved brand, Usha.Today, the group is poised to build on its heritage and deliver on the Usha promise of trust and durability.The Usha Team Bringing in
expertise from diverse backgrounds, Usha's team of directors contribute in focusing the company's potential along the right direction

Board of Directors

Mr. Krishna Shriram (Executive Chairman) Mr. Siddharth Shriram (Co Chairman) Ms. Chhaya Shriram (Whole Time Director) Mr. Pramod Kumar Bhalla Mr. Anil Kumar Jain Mr. Vinod K. Wazir Mr. Anand Kumar Chowdhury Mr. Nandan Kumar Goila

Usha Lexus Electronics is a division of General Sales Limited , a company established in 1965, and a part of the Usha Shriram Group. The company introduced its range of LEXUS mobile phones in the Indian market in 2003 with the objective of providing affordable and reliable Mobile Handsets to the Indian consumer, backed up with a reliable and efficient after sales service network.

Usha Lexus Electronics (Usha Sriram Group) is a Private Sector Organization that offers services in Telecommunication/ Mobile with Annual Total Turnover of 100-250 Crs and with Employee Strength of 501-1000.

Usha Lexus Electronics is one of the leading electronics companies in the industry, established in 1965, and has a diverse industry portfolio. It is a branch of Usha Shriram Group and a division of General Sales Limited. In 2003, the company introduced their mobile phones to the Indian market with the idea of providing inexpensive and superior quality handsets.

Usha Lexus Electronics (Usha Sriram Group) Head Office Address : Block A DDA Commercial Complex Naraina Ring Road New delhi : 110028 Delhi ,India . Usha Lexus Electronics (Usha Sriram Group) Phone Number : (11) 25770990 25770991 Usha Lexus Electronics (Usha Sriram Group) Website : www.ushalexus.com Usha Lexus Electronics (Usha Sriram Group) Financial Details : No of Employees 501-1000 Turnover in Crs 100-250 Crs. Sector- Private Sector.

USHA LEXUS FURNITURE The very principle of Usha Lexus furniture is based on customer satisfaction. They are utilitycentric, fine looking and the easiest to live with. We at Usha Lexus, feel that furniture should not overpower the room it is in, would much rather enhance the space quietly To achieve this proposition we keep our designs sophistically straight and simple. Usha Lexus carries forward its tradition with its unwavering focus on consumer satisfaction and total value for money they pay for.

USHA LEXUS HOTELS & RESORTS

Since 1992, the Usha-Lexus Hotels and Resorts has been delighting guests with the legacy of legendary Indian hospitality. Usha-Lexus Hotels and Resorts epitomize the philosophy of this hospitality and provide impeccable service and best in class facilities to guests. Usha-Lexus Hotels and Resorts are recognized as one of India's premier hospitality providers with properties across India, providing a unique opportunity for travelers to enjoy important cities, historical centers and leisure destinations.

Usha-Lexus Hotels and Resorts are part of India's reputed "The Usha-Lexus Group." Over the years, the company has won acclaim for offering excellence in hospitality, business and leisure services. Usha-Lexus Hotels and Resorts operate seven well located boutique hotels across India at Mysore, Bangalore, Goa, Hassan, Khajuraho, Manali and Shimla.

Designed to accommodate both business and leisure travelers alike, the hotels boast of modern facilities, elegant dcor, warm service and discreet luxury. Usha-Lexus Hotels and Resorts offer best in class conference & banquet facilities and have hosted some of the most important social events and business meetings. The courteous and personalized service ensures the success of any event. In addition, there are tea lounges and magnificent poolside locations to complement the magical events. Usha-Lexus Hotels and Resorts also house celebrated restaurants. At our hotels the connoisseurs of dining can savour a culinary palette that includes regional delicacies from India and across the continents.

The Companys mission is to perfect the fine art of hospitality. By providing our guests with state-of-the-art facilities and impeccable service we aim to make every stay a memorable one.

INTRODUCTION

INTRODUCTION TO THE TOPIC- How Performance Appraisal Helps In Job Satisfaction

PERFORMANCE APPRAISAL The whole essence of the management activities of an organization culminates in the system of performance appraisal adopted in that organization. This, in turn, reflects the extent of the individual contributions and commitment of the employees in different hierarchical levels toward the achievement of organizational objectives/goals. It goes without saying that an effective performance appraisal system can lead an organization to take strides towards success and growth by leaps and bounds. Conversely, an ineffective performance appraisal system can seal the fate of an organization by creating chaos and confusion from top to bottom in the administrative hierarchy. As a consequence the chances of success and growth of that organization are doomed.

Performance Appraisal Defined: Performance appraisal is the periodic evaluation of an employees performance measured against the jobs stated or presumed requirements. One way to review the performance and potential of staff is through a system of performance appraisal. It is important that members of the organization know exactly what is expected of them, and the yardsticks by which their performance and results will be measured. Laurie J. Mullins substantiate the necessity of an effective appraisal scheme by saying that it can identify an individuals strengths and weaknesses and indicate how such strengths may best be utilized and weaknesses overcome.

Evolution of Performance Appraisal

The evolution of performance Appraisal can be traced back to the reign of second caliph of Islam, Hazrat Umar (634- 644 A.D /13-23 AH). Hazrat Umar laid the foundations of many State institutions and enunciated several administrative laws that are being followed and adopted by many nations of the world till today as a role model of true administration. Hazrat Umar, before appointing an officer for any duty, would thoroughly investigate his potentials and capabilities for the assignment. Prime importance would be given to the honesty and integrity of the officer/ official. But, when an officer of any status, was found to have demonstrated any kind of negligence or dereliction from his duty, or if his unsuitability for the job in question would come to light, no expediency could forestall / prevent his removal from the post assigned to him. Ammar bin Yasir was a pious companion of the Holy Prophet (PBUH). His general popularity in public convinced Umar to appoint him as Governor of Kofah, but taking into account his weakness in political affairs, Umar removed him from his position, after a few days of his appointment.

The Governor of a province was a representative of the caliph in the province. He was bound to perform all those functions in his areas the caliph did in Medina, (capital City). However, apart from several other government functionaries, each District had a district Officer, called Aamil. His domain of activities was mainly concerned with collection of land-tax, Zakat or poor tax, sadaqat or voluntary arms. Significance of Performance Appraisal. The fundamental objective of performance appraisal is to facilitate management in carrying out administrative decisions relating to promotions, firings, layoffs and pay increases. For example, the present job performance of an employee is often the most significant consideration for determining whether or not to promote the person. Managers must recognize that an employees development is a continuous cycle of setting performance goals, providing training necessary to achieve the goals, assessing performance as to the accomplishment of the goals and then setting new and higher goals.

A performance improvement plan consists of the following components:

a) Where are we now? The answer to this question is found in the performance appraisal process.

b) Where do we want to be? This requires the evaluator and the person being evaluated to mutually agree on the areas that can and should be improved.

c) How does the employee get from where he or she is now to he or she wants to be? This step is critical to the performance improvement plan. The appraiser and appraisee must have mutual consensus on the specific steps to be taken. These steps may include training the employee so as to improve his or her performance. It should also contain the mechanism adopted by the appraiser/ evaluator to assist employee in the achievement of performance goals.

Potential Rating Scale Appraisal Errors/ Problems

A brief description of appraisal errors is given in the following In most of the organizations/ departments rating scales are predominantly used for conducting performance appraisal of their employees. It is essential that human observer is free from the element of subjectivity and he should be reasonably objective and accurate in his assessment. Research shows that raters memories are quite fallible and in most of the cases they resort to their own sets of liking and disliking, and expectations about people, expectations that may or may not be reasonable and tenable. These biases breed rating errors, or deviation between the true rating an employee deserves and the actual rating assigned.

Central Tendency Central tendency takes place when appraisal statistics show that most employees are appraised as being near the middle of the performance scale.

Unclear Standards Different appraisers would probably derive different meanings from the phrases, good performance, fair performance and so on. Similarly, traits such as quality of work, creativity, or integrity may carry different meanings for different appraisers

Hallo Effect A hallo effect is a process in which a general impression which is favorable or unfavorable is used by judges to evaluate several specific traits.

The Rusty Hallo Effect

This is where general judgments about a person are formulated from the perception of a negative characteristic.

Personal Biases Racial, sexual, religious and other biases result in unfavorable considerations for promotions and pay.

Lack of Feedback The extent to which an individual receives direct and clear information about how effectively he or she is performing on the job is termed feedback.

Internal rewards are obtained by individuals when they learn (knowledge of results) that they personally (experienced responsibility) have performed well on task that they care about (experience meaningfulness). The more that these three psychological states are present, the greater will be employees motivation, performance, and job satisfaction, and the lower their absenteeism and likelihood of leaving the organization. Productivity and total quality experts have reached at the conclusion that the need of the hour is to work smarter, not harder. No doubt sound education and appropriate skill training are needed if one is to work smarter, but the not end there. Employees of present era need instructive and supportive feedback and designed rewards if they are to translate their knowledge into improved productivity and superior quality.

The importance of Feedback can better be understood by carefully examining the following diagram. Unfortunately, in most of the public sector organizations no positive feedback is given to the employees to improve their performance. Mostly negative feedback is given to harass or punish the employees. Negative feedback is typically misperceived or rejected. Feedback needs to be tailored to the recipient.

Modern Methods of Performance Appraisal

ASSESSMENT CENTRES -

An assessment center typically involves the use of methods like social/informal events, tests and exercises, assignments being given to a group of employees to assess their competencies to take higher responsibilities in the future. Generally, employees are given an assignment similar to the job they would be expected to perform if promoted. The trained evaluators observe and evaluate employees as they perform the assigned jobs and are evaluated on job related characteristics. The major competencies that are judged in assessment centers are interpersonal skills, intellectual capability, planning and organizing capabilities, motivation, career orientation etc. assessment centers are also an effective way to determine the training and development needs of the targeted employees.

BEHAVIORALLY ANCHORED RATING SCALES

Behavioural Anchored Rating Scales is a relatively new technique which combines the graphic rating scale and critical incidents method. It consists of predetermined critical areas of job

performance or sets of behavioral statements describing important job performance qualities as good or bad (for e.g. the qualities like inter personal relationships, adaptability and reliability, job knowledge etc). These statements are developed from critical incidents. In this method, an employees actual job behaviour is judged against the desired behaviour by recording and comparing the behaviour with BARS. Developing and practicing BARS requires expert knowledge.

HUMAN RESOURCE ACCOUNTING METHOD

Human resources are valuable assets for every organization. Human resource accounting method tries to find the relative worth of these assets in the terms of money. In this method the Performance of the employees is judged in terms of cost and contribution of the employees. The cost of employees include all the expenses incurred on them like their compensation, recruitment and selection costs, induction and training costs etc whereas their contribution includes the total value added (in monetary terms). The difference between the cost and the contribution will be the performance of the employees. Ideally, the contribution of the employees should be greater than the cost incurred on them.

360 Degree Performance Appraisals 360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees performance comes from all the sources that come in contact with the employee on his job. 360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors anyone who comes into

contact with the employee and can provide valuable insights and information or feedback regarding the "on-the-job" performance of the employee.

360 degree appraisal has four integral components: 1. Self appraisal 2. Superiors appraisal 3. Subordinates appraisal 4. Peer appraisal

Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superiors appraisal forms the traditional part of the 360 degree performance appraisal where the employees responsibilities and actual performance is rated by the superior.

Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superiors ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees abilities to work in a team, co-operation and sensitivity towards others.

Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance Appraisal have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees performance and is considered to be one of the most credible performance appraisal methods.

360 degree performance appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles. This technique is being effectively used across the globe for performance appraisals. Some of the organizations following it are Wipro, Infosys, and Reliance Industries etc. MANAGEMENT BY OBJECTIVES The concept of Management by Objectives (MBO) was first given by Peter Drucker in 1954. It can be defined as a process whereby the employees and the superiors come together to identify common goals, the employees set their goals to be achieved, the standards to be taken as the criteria for measurement of their performance and contribution and deciding the course of action to be followed. The essence of MBO is participative goal setting, choosing course of actions and decision making. An important part of the MBO is the measurement and the comparison of the employees actual performance with the standards set. Ideally, when employees themselves have been involved with the goal setting and the choosing the course of action to be followed by them, they are more likely to fulfill their responsibilities.

THE THE

MBO
PROCESS

MBO

PROCSES

UNIQUE FEATURES AND ADVANTAGES OF MBO The principle behind Management by Objectives (MBO) is to create empowered employees who have clarity of the roles and responsibilities expected from them, understand their objectives to be achieved and thus help in the achievement of organizational as well as personal goals.

Some of the important features and advantages of MBO are: Clarity of goals With MBO, came the concept of SMART goals i.e. goals that are:

Specific Measurable Achievable Realistic, and Time bound.

The goals thus set are clear, motivating and there is a linkage between organizational goals and performance targets of the employees.

The focus is on future rather than on past. Goals and standards are set for the performance for the future with periodic reviews and feedback. Motivation Involving employees in the whole process of goal setting and increasing employee empowerment increases employee job satisfaction and commitment. Better communication and Coordination Frequent reviews and interactions between superiors and subordinates helps to maintain harmonious relationships within the enterprise and also solve many problems faced during the period.

Traditional Methods of Performance Appraisal

1. ESSAY APPRAISAL METHOD This traditional form of appraisal, also known as "Free Form method" involves a description of the performance of an employee by his superior. The description is an evaluation of the performance of any individual based on the facts and often includes examples and evidences to support the information. A major drawback of the method is the inseparability of the bias of the evaluator. 2. STRAIGHT RANKING METHOD This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation.

3. PAIRED COMPARISON A better technique of comparison than the straight ranking method, this method compares each employee with all others in the group, one at a time. After all the comparisons on the basis of the overall comparisons, the employees are given the final rankings.

4. CRITICAL INCIDENTS METHODS In this method of Performance Appraisal, the evaluator rates the employee on the basis of critical events and how the employee behaved during those incidents. It includes both negative and positive points. The drawback of this method is that the supervisor has to note down the critical incidents and the employee behaviour as and when they occur.

5. FIELD REVIEW In this method, a senior member of the HR department or a training officer discusses and interviews the supervisors to evaluate and rate their respective subordinates. A major drawback of this method is that it is a very time consuming method. But this method helps to reduce the superiors personal bias.

6. CHECKLIST METHOD The rater is given a checklist of the descriptions of the behaviour of the employees on job. The checklist contains a list of statements on the basis of which the rater describes the on the job performance of the employees.

7. GRAPHIC RATING SCALE In this method, an employees quality and quantity of work is assessed in a graphic scale indicating different degrees of a particular trait. The factors taken into consideration include both the personal characteristics and characteristics related to the on the job performance of the employees. For example a trait like Job Knowledge may be judged on the range of average, above average, outstanding or unsatisfactory.

8. FORCED DISTRIBUTION To eliminate the element of bias from the raters ratings, the evaluator is asked to distribute the

employees in some fixed categories of ratings like on a normal distribution curve. The rater chooses the appropriate fit for the categories on his own discretion.

METHOD OF PERFORMANCE APPRAISAL USED IN USHA LEXUS

STRAIGHT RANKING METHOD This is one of the oldest and simplest techniques of performance appraisal. In this method, the appraiser ranks the employees from the best to the poorest on the basis of their overall performance. It is quite useful for a comparative evaluation

Performance Appraisal Process

The performance appraisal process is a process that evaluates employee performance. Normally it compares quality, quantity, cost, and time. Some of the things that performance appraisal are used to do would be.

Give something tangible to the employee regarding their work performance. Shows what training employees need. Determines what the employees raise might be.

There are some other things that performance appraisals do, these are just some of them. There are some procedures that you should put in work at your work place. This will help the employees know what you are expecting of them, and also establish a standard within your work that everyone will be able to understand and follow. Some of these things would be listed here.

Establishing performance standards Communicate standards and expectations Set up a system that measures actual performance Compare employee with the standards implemented Discuss results with employee Make a decision on what you are going to do, or take corrective action.

JOB SATISFACTION

Job satisfaction is associated with how well our personal expectations at work are in line with outcomes. The idea of organization as a social system requires that some benefits are received by its participants as well as by its customers and clients. Satisfaction and morale are similar terms referring to the extent to which the organization meets the needs of employees. Measures of satisfaction include employee attitudes, turnover, absenteeism and grievances. A lack of personal satisfaction is a frequent reason many people speak of when quitting a job. What is personal satisfaction? What can a manager do to develop levels of satisfaction in people on jobs? Fortunately, there are many things that can be done to provide working conditions where satisfaction can develop. There are no assurances that it will develop but at least conditions encouraging the development of satisfaction can be maintained in the work place. Employees should be able to understand where they fit into the business. They should know the importance of what they do, how it affects other people, parts of the business and the consequences on other people of both good and bad performances of their duties. This can be accomplished by requesting them to work a day or more at a variety of tasks as part of an orientation process. Some production units require a person to work one day each month in some other part of the business other than their normal duties.

Encourage regular contacts with other employees suppliers and customers. As people become aware of their needs in a position, they should also understand the needs, pressures and concerns of the people they work with, buy from and sell to. The learning possibilities from this type of situation are endless and the opportunities for the development of ideas, people and methods are much greater where communication is open and encouraged. Do everything possible to develop a persons skills. While someone may have been hired for a particular position or task, they may have especially good skills or abilities to do other things. Allowing the full range of skills to develop and encouraging a person to change can lead to increased job performance and personal satisfaction. Initiative and independence must be developed as well. People need to be allowed to choose how their work should be organized and done. The concept of "we do it this way here", does not lead to job or personal satisfaction. For instance, if a person is left-handed, they are far better off doing things in a method that suits their abilities rather than trying to convert to the prescribed way of carrying out procedures. Similarly, if a person wishes to do the scheduling or book work entries at the start of the day rather than at the end of the day, management should try to make the arrangements necessary to make this happen. The opportunity for the individual to manage their own time and work is a large part of job satisfaction. There must be standards of comparison. People need to know how well they are doing at their jobs and where they could improve. This is usually the reason for a performance appraisal, but it is important to keep in mind that appraisals do not equate to criticism. It may be necessary to explain the importance of completing tasks within timelines or changing the technique of doing a task. Unfortunately, many performance appraisals only frustrate the employee by adding more tasks to what appears to be an already overloaded agenda. Job satisfaction needs to include an opportunity for growth and development. As people develop new attitudes and skills, their wants, needs and performance will change. An astute manager will be aware of these changes occurring and will be willing to provide training, job reclassification or a totally new position to take full advantage of the development of the employee. We watch our kids go through school and are amazed at their changes and development, but rarely do we ever look at an employee in the same light.

THE RELATIONSHIP BETWEEN PERFORMANCE AND JOB SATISFACTION This relationship may be explained in terms of the operation of two factors: Effect of job performance on satisfaction and organizational expectations from individuals for job performance. 1. Job performance leads to job satisfaction and not the other way round. The basic factor for this phenomenon is the rewards (a source of satisfaction) attached with performance. There are two types of rewards intrinsic and extrinsic. 2. The intrinsic reward stems from the job itself which may be in the form of growth potential, challenging job, etc. The satisfaction on such a type of reward may help to increase productivity. The extrinsic reward is subject to control by management such as salary, bonus, etc. Any increase in these factors does not help to increase productivity though these factors increase job satisfaction. 3. A happy worker does not necessarily contribute to higher productivity because he has to operate under certain technological constraints and, therefore, he cannot go beyond certain output. Further, this constraint affects the managements expectations from the individual in the form of lower output. Thus, the work situation is pegged to minimally acceptable level of performance. However, it does not mean that the job satisfaction has no impact o productivity. A satisfied worker may not necessarily lead to increased productivity but a dissatisfied worker leads to lower productivity.

CHAPTER 2 RESEARCH OBJECTIVE And RESEARCH METHODOLOGY

RESEARCH 0BJECTIVE OF THE STUDY

OBJECTIVES The objective of the study is to find out the satisfaction level of e mployee in USHA LEXUS. To find that whether the employees are satisfied or not To check the Degree of satisfaction of employees. To find that they are satisfied with their job profile or not.

PRIMARY OBJECTIVES

How can company use performance appraisal technique to promote and give rewards to its employees. To provide a feedback to employees regarding their performance and related status.

SECONDARY OBJECTIVES To include myself in the corporate world. To observe work environment in the organization. To enhance communication and confidence.

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the problem. It may be understood has a science of studying how research is done scientifically. In it we study the various steps that all generally adopted by a researcher in studying his research problem along with the logic behind them. The scope of research methodology is wider than that of research method.

Meaning of Research Research is defined as a scientific & systematic search for pertinent i is an art of scientific investigation. Research is a systemized effort to gain new knowledge. It is a careful inquiry

especially through search for new facts in any branch of knowledge. The search for knowledge through objective and systematic method of finding solution to a problem is a research.

RESEARCH DESIGN A research is the arrangement of the conditions for the collections and analysis of the data in a manner that aims to combine relevance to the research purpose with economy in procedure.

Research Design Can Be Categorized As-:

The present study is exploratory in nature, as it seeks to discover ideas and insight to bring out new relationship. Research design is flexible enough to provide opportunity for considering different aspects of problem under study. It helps in bringing into focus some inherent weakness in enterprise regarding which in depth study can be conducted by management.

Sampling
An integral component of a research design is the sampling plan. Specifically, it addresses three questions whom to survey (The Sample Unit). How many to Survey (The Sample Size) & How to select them (The Sampling Procedure). Making a census study of the whole universe will be

impossible on the account of limitations of time. Hence sampling becomes inevitable. A sample is only a portion of the total employee strength. According to Yule, a famous statistician, the object of sampling is to get maximum information about the parent population with minimum effort.

Methods of Sampling
Probability Sampling: is also known as random sampling or chance sampling. Under this sampling design every individual in the organization has an equal chance, or probability, of being chosen as a sample. This implies that the section of sample items is independent of he persons making the study that is, the sampling operation is controlled objectively so that the items will be chosen strictly at random.

Non Probability Sampling: is also known as deliberate sampling, purposeful and judgmental sampling. Non-Probability Sampling is that which does not provide every individual in the Organization with a known chance of being included in the sample.

DATA COLLECTION Data collection is an instrument for analysis and interpretation which can be collected through primary and secondary source, Primary Data: during the course of the study or research can be through observations or through direct communication with respondents on one form or another or through personal interviews. I have collected primary data by the means of a Questionnaire. The Questionnaire was formulated keeping in mind the objectives of the research study.

Personal Investigation

Observation Method

Information from correspondents

Information from superiors of the organization

Secondary Data: means data that is already available i.e., they refer to data, which has already been collected and analyzed by someone else. When a secondary data is used, the researcher has to look into various sources from where he can obtain data. This includes information from various books, periodicals, magazines etc

Published Sources such as Journals, Government Reports, Newspapers andMagazines etc.

Unpublished Sources such as Company Internal reports prepare by them given totheir analyst & trainees for investigation.

Websites like USHA LEXUS official site, some other sites are also searched to find data.

Research Methodology Adopted

Research Design: Descriptive research

Research Instrument: Structured Questionnaire

Sampling Plan:

i) Sample Method: Non-Probability Sampling (Convenience Sampling) ii) Sample Size: 50

iii) Sample Unit: Employees who do not hold a supervisory position

Sampling Design
Convenience Sampling, as the name implies, is based on the convenience of the researcher who is to select a sample. Respondents in the sample are included in it merely on account of their being available on the spot where the survey was in progress.

Source of Data
a) Primary Data: Structured Questionnaire

b) Secondary Data: Journals, Booklets, Company Data, etc

CHAPTER 3 SWOT ANALYSIS

SWOT ANALYSIS

S- Strength W- Weakness O- Opportunities T- Threats

SWOT is the tool to see that where organization stands, which areas required improvement, which areas require serious consideration, which would be the source of growth, which things need avoidance and so on. The SWOT of USHA LEXUS will help to understand the position of Usha lexus in the market.

Strengths
o Usha Lexus is a multinational company and a recognized brand around the world. It has successfully established not only in developed countries but also in developing countries. o Usha products are reliable, easy to use, and have simple designs which satisfy customers thats why Usha have the advantage of having loyal customers. o In Usha Lexus the research and development has given greater importance because to satisfy the customers and provide the customers what they want the research and development is required. o Usha tries to keep products innovative to attract the customers and to capture more market share. o Usha is at its growing stage and its growing quickly. It is producing solid products which rapidly satisfying the customers.

Weaknesses

o The biggest weakness of Usha is that it has very few competent employees mostly are not skilled o There is no training and development concern for employees. o Lack of Quick Availability of Raw Materials at the workplace. o High Sensitivity of some products (like insulators) o Inherent weakness of public sector undertakings. o Political interference. o Remote Locations . o Limited Capacity of Plants

Opportunities
o The electronic market is expanding rapidly which is a great opportunity for Usha to expand itself in new market and to capture more market share. o It also can expand its target market geographically and socially both by introducing new products in existing market and existing products in new markets. o Through the innovation in existing products it can attract more customers because at present it is behind the market leadership so to become a leader it has to make innovations to attract potential buyers and retain existing customers. o Managing Working Capital and Financial Sources. o Managing Human Resource (Main Power). o Expansion of Plant. o Increasing Workers Participation in Management.

o Compete to Private Sector Firms. o Provide better Quality Products to the Industry

Threats
o As the competitors of Usha are more dominant in the market and continuously improving their products so they can take away the existing customers of Usha, so it has to work very hard to retain and attract customers. o The condition of economy all around the world is not good and it is affecting the purchasing power and priorities of the customers, people are facing difficulties in satisfying basic needs so how they can spend on electronics which is considered as luxury items. This situation can affect the sales of the company. o Increasing labour cost.

CHAPTER 4

FINDINGS And ANALYSIS

DATA ANALYSIS
Q1. Is performance appraisal done without any bias behavior on part of appraiser?

Options

Respondents

Percentage

Yes No Total

30 20 50

60 40 100

Respondents

40% YES NO

60%

DATA- 60%-YES

40%-NO

ANALYSIS-This graph shows that 60% of employees said yes performance appraisal can done without any bias behavior on part of appraiser, and 40% said no performance appraisal cannot be done without any bias behavior on part of appraiser.

Q2. Are you satisfied a nature of the present job?

Options

Respondents

Percentage

Yes No Total

25 25 50

50 50 100

Respondents

50%

50%

YES NO

DATA- 50%-YES

50%-NO

ANALYSIS-This graph shows that 50%of employees are satisfied with their job and 50% Are not satisfied.

Q3. Are you satisfied with the way in which grievance are resolved in the organization?

Options

Respondents

Percentage

Yes No Total

35 15 50

70 30 100

Respondents
30%

YES 70% NO

DATA- 70%-YES

30%-NO

ANALYSIS- This graph shows that 70%of employees are satisfied with the way in which conflicts are resolved in the organization and 30% are not satisfied.

Q4. Do you think performance appraisal system forms a basis for job satisfaction?
Options Respondents Percentage

Yes No Total

25 25 50

50 50 100

Respondents

50%

50% YES NO

DATA- 50%-YES

50%-NO

ANALYSIS-This graph shows that 50%of employees think yes, performance appraisal system is preferred for job satisfaction, and 50% of employees think no, performance appraisal system is not preferred for job satisfaction.

Q5. How do you feel about the level of job security in your present job?
Options Respondents Percentage

Excellent Good Satisfactory Total

30 18 2 50

60 36 4 100

Respondents
4% 36% Excellent 60% Good Satisfactory

DATA- EXCELLENT-60%

GOOD-36%

SATISFACTORY-4%

ANALYSIS- This graph shows that 60% of employees feel excellent about the level of job security in their present job, 36% feel good and, 4% feel satisfactory about the level of job security in their present job.

Q6. How do you feel about the appraisal done by your supervisors?
Options Respondents Percentage

Good Very Good Satisfactory Total

32 14 4 50

64 28 8 100

Respondents
8% 28% Good 64% very Good satisfactory

DATA- GOOD-64%

VERY GOOD-28%

SATISFACTORY-8%

ANALYSIS-This graph shows that 64% of employees feel excellent about the supervision used by their supervisors, 28% feel very good and, 8% feel satisfactory about the supervision used by their supervisors.

Q7. ARE transfer, demotion, suspension and dismissal based on performance appraisal?
Options Respondents Percentage

Yes No Total

22 28 50

44 56 100

Respondents

44% 56% Yes No

DATA- 56%-YES ANALYSIS-

44%-NO

This graph shows that 56%of employees said yes, transfer,demotion,suspension and dismissal based on performance appraisal and 44% said no, transfer,demotion,suspension and Dismissals are not based on performance appraisal.

Q8. How long you have been working in thecompany?

Options Less than 3 yrs 3-5 yrs More than 5 yrs Total

Respondents 10 10 30 50

Percentage 20 20 60 100

Respondents
20% Racial discrimination 60% 20% Age discrimination Gender discrimination

DATALESS THAN 3 YEARS-20% 3-5 YEARS-20% MORE THAN 5 YEARS-60% ANALYSIS-This graph shows that 20% of employees have been working in the industry, less than 3 yrs, 20% of employees have been working from 3-5 yrs, and 60% of employees have been working from more than 5 yrs

Q9. Have you ever observed or experience any of the following forms of discrimination in the company?
Options Respondents 0 Racial discrimination 25 Age discrimination 20 Gender discrimination 5 None of the above 50 Total 100 10 40 50 Percentage 0

0 10% 50% 40% Racial discrimination Age discrimination Gender discrimination None of the above

DATA- RACIAL DISCRIMINATION-0% GENDER DISCRIMINATION-40%

AGE DISCRIMINATION-50% NONE OF THE ABOVE-10%

ANALYSIS-This graph show that 0%of employees have observed or experience racial discrimination in the company, 50% observed age discrimination, 40% observed gender discrimination, and 10% of the employees observed none of the above forms.

Q10.

Are you satisfied with the appreciation or reward system provided by your

management?
Options Respondents Percentage

Highly Satisfied 20 40

Satisfied Needs Improvement

15

30

15

30

Total

50

100

Respondents

30%

40% Highly Satisfied Satisfied 30% Needs Improvement

DATA- HIGHLY SATISFIED-40%

SATISFIED-30%

NEEDS IMPROVEMENT-30% DATA ANALYSIS-This graph shows that 40%of employees are highly satisfied with the appreciation or reward system provided by the management, 30% are satisfied and, 30% of employees needs improvement.

Q11. Is promotion purely based on performance appraisal?

Options Respondents Percentage

Yes

30

60

No

20

40

Total

50

100

Respondents

40%

60%

Yes No

DATA- YES-90%

NO-10%

ANALYSIS- This graph shows that 90%of employees said yes, promotion is purely based on performance appraisal and 10% said No, promotion is not purely based on performance appraisal.

Q12. Doess your motivation increases by performance appraisal?

Options

Respondents

Percentage

Yes

49

98

No

Total

50

100

Respondents
2%

Yes No 98%

DATA-

YES-98%

N0-2%

ANALYSIS-This graph shows that 98%of employees said yes, motivation increases by performance appraisal and 2% said No, motivation does not increases by performance appraisal.

Q13. Do you find your job repetitive and boring?

Options Respondents Percentage

Strongly agree 35 Agree 10 Neither agree or nor disagree 3 Disagree 2 Total 50 100 4 6 20 70

Respondents
4% 6% 20% strongly agree agree 70% neither agree nor disagree disagree

DATA- STRONGLY AGREE-70% NEITHER AGREE NOR DISAGREE-6%

AGREE-20% DISAGREE-4%

ANALYSIS-This graph shows that 70% of employees are strongly agree about the point, 20% of employees are agree on the point, 6% are neither agree nor disagree, and rest 4% are disagree.

Q14. According to you how often should the performance review takes place.

Options

Respondents

Percentage

Quaterly 35 Yearly 15 Total 50 100 30 70

Respondents

30%

Quaterly 70% Yearly

DATA- QUATERLY-70%

YEARLY-30%

ANALYSIS- This graph shows that 70% of employees performance review should quarterly takes place And 30% of employees performance review yearly takes place.

Q15.

In your opinion does performance appraisal give a proper assessment of your

contribution to the organization?

Option

Respondents

Percentage

YES 25 NO 25 Total 50 100 50 50

Respondents

50%

50% YES NO

DATA- YES-50%

NO-50%

ANALYSIS-This graph shows that 50%of employees said yes, performance appraisal give a proper assessment of your contribution to the organization and 50% said no, performance appraisal does not give a proper assessment of your contribution to the organization.

CHAPTE 5 CONCLUSION, LIMITATION And SUGGESTION

CONCLUSION
o Employees are not completely satisfied with their job. o Employees are not getting value to their work. o Most of the employees think that the organization havent fulfill their o Promises, what they do in beginning especially regarding Promotion. o They often feel overworked. o Mostly respondent say that method used in USHA LEXUS to appraise their performance is GOOD. o Mostly respondent say that performance appraisal done without any bias behavior on part of appraiser. o 50%respondent is satisfied with nature of the present job. o Mostly respondent are satisfied with the way in which conflicts are resolved in the organization. o 50% respondent say performance appraisal system is preferred for job satisfaction. o Mostly respondent feel Excellent about the level of job security in their present job. o Mostly respondent feel Good about the supervision used by their supervisor. o Mostly people say that transfer, demotion, suspension and dismissal are not based on performance appraisal. o Mostly people say that their superior always helps them to achieve their action plan. o 60% people have been working in the industry for more than 5 years. o Mostly people say that they are always able to transfer their learning to others. o Mostly people have experience the various forms of discrimination in the company. o Mostly people say that all suggested points for the improvement of feedback form should be added in feedback form. o Mostly people are highly satisfied with the appreciation or reward system provided by the management. o 90% respondent says that promotion is purely based on performance appraisal. o Mostly people say that motivation increases by performance appraisal. o Mostly people find their job repetitive and boring. o Mostly people say that performance review should Quarterly takes place

LIMITATIONS OF STUDY
However I shall try my best in collecting the relevant information for my research report, Yet there are always some problems faced by the researcher. The prime difficulties which I face in collection of information are discussed below:-

1. Short time period: The time period for carrying out the research was short as a result of which many facts have been left unexplored. 2. Lack of resources: Lack of time and other resources as it was not possible to conduct survey at large level. 3. Unwillingness of respondents: While collection of the data many consumers were unwilling to fill the questionnaire. Respondents were having a feeling of Wastage of time for them. 4. Sensitive company information cannot be displayed in the project report. 5. Most respondents might be influenced by their peers in answering the questions. 6. Due to the fact that most of the respondents were young, the questions might not have been answered with due sincerity.

SUGGESTIONS

To increase the job satisfaction level of the employees the company should concentrate mainly on the incentive and reward structure rather than the motivational session. o Ideal employees should concentrate on their job. o Educational qualification can be the factor of not an effective job. o Company should give promotion to those employees who deserve it.

BIBLIOGRAPHY
Google
o http://www.google.co.in/#sclient=psyab&hl=en&source=hp&q=usha+lexus&pbx=1&oq=usha&aq=1&aqi=g4&aql=1&gs_sm= c&gs_upl=3200l3860l0l6324l4l4l0l0l0l0l919l2272l31.1.1.1l4l0&bav=on.2,or.r_gc.r_pw.,cf.osb&fp=4af2d9e6c889c72a&biw=1366&bih=667

Usha o o o http://www.ushainternational.com/Company/6/#!/page24 http://www.ushalexushotels.com/profile.html http://www.ushafurniture.com/about.asp

ANNEXURE QUESTIONNAIRE
NAME OF RESPONDENT: GENDER:.. ADDRESS: CONTACT NUMBER:. RESERCHER NAME: Shikha Sharma

Q1. Age -21-25

25-30

30-35

35+

Q2.Yrs of experience in this Organization Less than a Year 1 yr 2 yrs 3 yrs 5yrs+

Q3. Is performance appraisal done without any bias behavior on part of appraiser? YES NO

Q4. Are you satisfied with nature of the present job? YES NO

Q5.Are you satisfied with the way in which conflicts are resolved in the organization? YES NO

Q6.Do you think performance appraisal system is preferred for job satisfaction? YES NO

Q7. How do you feel about the level of job security in your present job? EXCELLENT Q8. ARE transfer, demotion, suspension and dismissal based on performance appraisal? YES NO GOOD SATISFACTORY

Q9. How long you have been working in the industry? LESS THAN 3 YEARS 3-5 YEARS MORE THAN 5 YEARS

Q10. Have you ever observed or experience any of the following forms of discrimination in the company? RACIAL DISCRIMINATION GENDERDISCRIMINATION AGE DISCRIMINATION NONE OF THE ABOVE

Q11. Are you satisfied with the appreciation or reward system provided by your management? HIGHLY SATISFIED Q12. Is promotion purely based on performance appraisal? YES NO SATISFIED NEEDS IMPROVEMENT

Q13. Is your motivation increases by performance appraisal? YES NO

Q14. Do you find your job repetitive and boring? STRONGLY AGREE AGREE DISAGREE

NEITHER AGREE NOR DISAGREE

Q15. According to you how often should the performance review takes place. QUATERLY YEARLY

Q16. In your opinion does performance appraisal give a proper assessment of your contribution to the organization? YES NO

Remarks . .

Date-

__________________ Respondent signature