EFFECTIVNESS OF PERFORMANCE APPRAISAL IN

SWARAJ ENGINES LTD., MOHALI (PUNJAB)

A SUMMER TRAINING REPORT

Submitted to

PANJAB UNIVERSITY, CHANDIGARH

FOR THE DEGREE

OF
MASTER OF BUSINESS ADMINISTRATION

PANJAB UNIVERSITY, CHANDIGARH

(Session 2020-22)

UNDER THE SUPERVISION & SUBMITTED BY:

GUIDANCE OF

Dr. RAJESH SHARMA Sachi Gupta

[Ph.D. (Marketing), MBA (marketing)]
ASSISTANT PROFESSOR ROLL NO.:- 32758
DAV Institute of Management, PU PIN NO.:- 18215000960
SECTOR-10, CHANDIGARH-160011 (UT) India.

DAV INSTITUTE OF MANAGEMENT

SECTOR-10, CHANDIGARH-160011 (UT) INDIA.

i
 DECLARATION BY STUDENT

This is to certify that the Summer Training Report Titled

‘Effectiveness of Performance Appraisal System in Swaraj’ which was

submitted by MS. SACHI GUPTA student at DAV Institute of Management

studying in MBA-III Semester under Roll No.-32758 & PU PIN NO.

18215000960 declare that the Project titled is a result of my own work and

my indebtedness to other work publications, references, if any, have been

duly acknowledged. If I am found guilty of copying any other report or

published information and showing it as my original work, I understand I

will be liable and punishable by the Institute or the University as the case

maybe.

Place: Name of the Student:

Date: Roll No.:

ii
AUTHORIZED TRAINING COMPLETION CERTIFICATE

(Origional on Company Letter Head Duly Signed&

Stamped)

iii
 CONTENTS
DESCRIPTION PAGE NO.

FRONT PAGE i–i

DECLARATION BY THE STUDENT ii - ii

AUTHORIZED TRAINING COMPLETION LETTER iii - iii

LIST OF CONTENTS iv –iv

LIST OF CONTENTS IN MAIN STUDY v –v

LIST OF TABLES vi - vii

LIST OF CHARTS viii - ix

ACKNOWLEDGEMENT x-x

EXECUTIVE SUMMARY xi _ xi

ACRONYMS xii - xii

CHAPTER – 1 INTRODUCTION 01 – 65

CHAPTER – 2 REVIEW OF THE LITERATURE 66 – 67

iv
CHAPTER – 3 RESEARCH METHODOLOGY 68 – 71

CHAPTER – 4 DATA ANALYSIS & INTERPRETATIONS 72 - 87

CHAPTER – 5 MAJOR FINDINGS, SUGGESTIONS 88 - 90

& RECOMMENDATIONS

APPENDIX: 91-94

QUESTIONNAIRE 91- 92
BIBLIOGRAPHY 93 - 94

TABLE OF CONTENTS IN MAIN STUDY

DESCRIPTION PAGE NO.

CHAPTER-1 INTRODUCTION 01-65
A. Industry Profile 01-08
B. Company Profile 09-15
C. Background and Inception of the Company 16-19
D. Nature and Business Carried 20-21
E. Vision, Mission & Quality Policy 22-24
F. Product Profile 25-27
G. Area of Operation 27- 27
H. Ownership Pattern 28- 28
I. Competitors Information 29-31
J. SWOT Analysis 32-36
K. Infrastructure Facilities 37-37
L. Achievements/ Awards 37-38
M. Future Growth Prospects 39-39
N. About Performance Appraisal 39-65
CHAPTER-2 LITERATURE REVIEW 66-67
CHAPTER- 3 RESEARCH METHODOLOGY 68-71
A. Need of the study 68-68
B. Objectives of the study 68-68
C. Sources of Data 68-68

v
 D. Statistical Tools Used 69-69
E. Sample Size 70-71
F. Limitations of the Study 71-71
CHAPTER- 4 DATA ANALYSIS & INTERPRETATION 72-87
CHAPTER - 5 FINDINGS, SUGGESTIONS & RECOMMENDATIONS 88-90
A. Summary 88-90
B. Findings 88-88
C. Conclusions 89-89
D. Recommendations 90-90
APPENDIX: 91-94

QUESTIONNAIRE 91-92
93-94
BIBLIOGRAPHY

LIST OF TABLES

Chapters Table No. Title Page No.

Chapter- 1 Table 1.1 Departments in the Organization 13
Table 1.2 Market share of PTL after 19
acquisition by M&M
Table 1.3 Turnover of the company 20
Table 1.4 Specifications of 24HP engine 25
Table 1.5 Specifications of 25HP engine 25
Table 1.6 Specifications of 31HP engine 25
Table 1.7 Specifications of 35HP engine 26
Table 1.8 Specifications of 38HP engine 26
Table 1.9 Specifications of 45HP engine 26
Table 1.10 Specifications of 50HP engine 27
Table 1.11 Specifications of 54HP engine 27
Table 1.12 Summary of ownership 28
Table 1.13 Achievement details 37-38
Chapter - 2 Table 2.1 Goals of Performance Appraisal 41
Table 2.2 Methods of Performance 47
Table 2.3 Appraisal 63
Ranks in Performance Appraisal
system of SEL
Chapter - 4 Table 4.1 Gender Statistics 72
Table 4.2 Age Statistics 73
Table 4.3 Work Experience Statistics 74
vi
Table 4.4 Awareness Statistics 75
Table 4.5 Response for understanding of 76
performance appraisal
Table 4.6 Opinion on performance 77
Table 4.7 appraisal 78
Table 4.8 Effectiveness of self- appraisal 79
Table 4.9 Response to question 6 80
Table 4.10 Response on goal setting 81
Table 4.11 difficulties 82
Table 4.12 Fairness of appraisal system 83
Response to question 9
Table 4.13 Response on Importance of 84
Table 4.14 Feedback 85
Table 4.15 Response to question 11 86
Response to question 12
Satisfaction on current
performance appraisal system

vii
 LIST OF FIGURES

Chapter Fig No. Title Page No.

Chapter - 1 Fig. 1.1 Process of Manufacturing 21
Chapter - 2 Fig. 2.1 Process of Performance Appraisal 45
Fig. 2.2 Types of Methods of Performance 47
Appraisal
Fig. 2.3 Step 1 of performance appraisal 61
process of SEL
Fig. 2.4 Step 2 of performance appraisal 61
process of SEL
Fig. 2.5 Step 3 of performance appraisal 62
process of SEL
Chapter - 4 Fig 4.1 Graph representing Gender Statistics 73
Fig 4.2 Graph representing Age Statistics 74
Fig 4.3 Graph representing Experience 75
Statistics
Fig 4.4 Graph representing response on 76
awareness
Fig 4.5 Graph representing understanding of 77
performance appraisal
Fig 4.6 Graph representing opinion on 78
performance appraisal
Fig 4.7 Graph representing Effectiveness of 79
self- appraisal
Fig 4.8 Response to question 6 80
Fig 4.9 Graph representing Response on 81
viii
 difficulties in goal setting
Fig 4.10 Graph representing response on 82
fairness of appraisal system
Fig 4.11 Graph representing Response on 83
feedback from appraiser
Fig 4.12 Graph representing response on 84
importance of feedback
Fig 4.13 Graph representing response for 85
achievements of performance
appraisal
Fig 4.14 Graph representing response on 86
development of employee by
performance appraisal
Fig 4.15 Graph representing response on 87
satisfaction on current performance
appraisal system

ix
 ACKNOWLEDGEMENT

“It is not possible to prepare a project report without the assistance and
encouragement of other people. This one is certainly no exception.”

On the very outset of this report, I would like to extend my sincere & heartfelt
obligation towards the personages who have helped me in the endeavor. Without
their active guidance, help, cooperation & encouragement, I would not have made
headway in the project.

I am ineffably indebted to Mrs. Neetu Prabhakar for conscientious guidance

and encouragement to accomplish this assignment.

I am extremely thankful and pay my gratitude to my faculty Prof. Rajesh

Sharma for his valuable guidance and support on completion of this project in it
presently.

I extend my gratitude to Institute of Management for giving me this

opportunity.

I also acknowledge with a deep sense of reverence, my gratitude towards my

parents and member of my family, who has always supported me morally as well
as economically.

At last but not least gratitude goes to all of my friends who directly or indirectly
helped me to complete this project report.

Thanking You

x
 SACHI GUPTA

EXECUTIVE SUMMARY

Performance appraisal is an essential management technique. The study

aims to gather knowledge and measure knowledge of managerial employees on
the performance appraisal system in Swaraj Engines Limited, Mohali. The
questionnaire survey method is adopted for the project. Swaraj is a leading engine
manufacturing factory having world-wide presence.

Performance appraisal is an important management tool to audit human

capital. In many organizations, appraisal results are used as a tool to fix the
reward. The appraisal results are used to identify better performing employees for
promotion in the hierarchy of organizational structure. The satisfaction of
employees towards appraisal system of company depends on communication,
measurement policies and post review policies. The total output of organization
depends on satisfaction level of employees. The performance appraisal is an
important tool to many human resource functions.

The questionnaire method is used for collection of data. The sample has been
drawn from the population on the basis of judgement method. The duly filled
questionnaires are collected from the respondents. The frequency and descriptive
statistical analysis of responses are carried out. The influence of age, education
and company experience is studied.

A fair performance appraisal process helps to improve the satisfaction among

employees. The willingness to invest additional effort towards enhancing
production and there by market and financial position increases with employee
satisfaction. The performance appraisal accounting for the individual and team
performance of the members will help to increase plant output. Based on
questionnaire survey conducted, it can be concluded that employees at Swaraj
Engines Limited are satisfied with the performance appraisal process. Company
xi
have to look into the balanced blend of important aspects like communication,
measurement policies and post review decisions.

ACRONYMS
 SEL- Swaraj Engines Limited
 NBFC- Non Banking Financial Corporation
 NPA- Non Performing asset
 NREGA- National Rural Employment Guarantee Act
 HP- Horse Power
 HMT- Hindustan Machine Tools
 TAFE- Tractors & Farm Equipments Ltd.
 M&M- Mahindra & Mahindra
 PTL- Punjab Tractors Limited
 KVA- kilo Volt Ampere
 ER- Employee Relation

xii
xiii