Summer Training Report On Performance Appraisal Completed in NEC India private ltd.

Delhi Submitted In Partial Fulfillment of the Requirement of Bachelor of Business Administration

Training supervisor: Mrs. Ina Arora (Manager, HR Dept.)

SUBMITTED BY: Dharna Sachdeva 03061201711 Batch- 2011-14

SUBMITTED TO: Banarasidas Chandiwala Institute of Professional Studies, Dwarka, New Delhi (Affiliated to Guru Gobind Singh Indraprastha University)

DECLARATION

I hereby declare that this Project Report titled Performance appraisal in NEC India private ltd. Delhi submitted by me to Banarasidas Chandiwala Institute of Professional Studies, is a Bonafide work undertaken during the period from 26th June 2013 to 1st August 2013 by me and has not been submitted to any other University or Institution for the award of any degree diploma / certificate or published any time before

Dharna Sachdeva

Date:

04061201711

BONAFIDE CERTIFICATE

This is to certify that as per best of my belief the project entitled Performance appraisal in NEC India Private Ltd. Delhi is the bonafide research work carried out by Dharna Sachdeva, student of BBA, BCIPS, DWARKA, New Delhi during 26th June1st August 2013, in partial fulfillment of the requirements for the Summer Training Project of the Degree of Bachelor of Business Administration. He has worked under my guidance

Mr. Naveen Sirohi Project Guide (Internal) Date:

Counter signed by

Dr. SATISH TANEJA Director Date:

ACKNOWLEDGEMENT

First of all I will thank to our director sir Dr. SATISH TANEJA, who give me the valuable suggestion for my major project. The success of this final report is the outcome of Guidance and Valuable suggestions provided by the all concerned without which the report could not fide on the right back. I express my sense of deep gratitude to Faculty Coordinator Mr. Naveen Sirohi for inclusions and timely suggestions in the preparation of this final report. Finally, I will be failing in my duty, if I do not thank my parents, brother, friends and well-wishers for their enthusiastic support and who have directly or indirectly helped me.

Name: Dharna Sachdeva BBA 04061201711

TABLE OF CONTENTS

S.NO 1 2 3 4 4 5 6 7 8 9 10 Executive Summary Introduction of the topic Objective and limitations Literature Review Company profile Research methodology Findings Suggestions Conclusion Annexure Bibliography

TOPIC

Page No. 7-8 9-29 30 31-32 33-51 52-74 75 76 77 81 82-84

Chapter- 1 Executive Summary

EXECUTIVE SUMMARY
Performance Appraisal is a tool for development of an employee. The purpose of Performance Appraisal to assess a persons performance against set goals and targets, identifying his strengths and areas requiring improvement. Performance appraisal is one of the most important processes of personnel management. It helps in appraising and judging the performance of the workers. The purpose of performance appraisal is to improve the organizations performance through the enhanced performance of the individuals. It is a process of management not merely a small function. The process of performance appraisal comprises of four steps. The objectives of performance appraisal comprises of operational and development objectives. It also highlights the benefits of performance appraisal from the point of view of organization as well as of employee also. Performance appraisal also has some barriers which act as a hindrance for the employee as well as for the organization. The employees lose its confidence level and gets demotivated and consequently, it decreases his productivity and it affects performance of the employee and it has negative impact for the organization also. There are various types of appraisal systems and rating errors.

The research methodology used in the project is descriptive. In research methodology, the sample size is 100 employees and the universe is a private sector company NEC India Pvt Ltd, Delhi. Primary data is used for data collection and the method of data collection is questionnaire. The scope of the study is very wide as it studies the performance appraisal system of the organization and development of the employees and it includes training also.

In data analysis, different techniques are adopted to analyze the data. 15 questions were asked from the employees about the performance appraisal system in the organization and interpretation of data has been done by making pie charts and charts of the given data.

The findings of the project is the staff, which calculates or measures the performance, is capable of keeping the records. The performance of the workers and the staff is calculated

twice in a year. The company maintains the records of the workers and staff members separately. They follow different method, grading level and different criteria to evaluate the performance of workers and staff members. Earlier the company was having the same from for the performance appraisal of the workers and the employees but from last two years they have made few changes and made two different forms for the workers and the staff members. Forty points are being considered as the maximum points for the best performance in the Performance Appraisal System, below forty points is considered to be low.There are no fixed standards fixed for the calculation of the Performance Appraisal System. Many suggestions are given in this project report like this organization is in growth phase hence systems do exist but needs a lot of improvement. Performance management system needs to be linked to training and development and promotion, career progression, companys objectives etc. It is suggested that the involvement of appraisal in performance management activities is increased. The various goals should be set at the individual level. The employees should be encouraged that if they perform their work very well then they must be awarded. Thus, we conclude that NEC India Private Limited, Delhi is a fast growing company in the terms of profitability, market share and value. In just some years of its presence in market it has had the distinction of being one of the fast growing companies. The relationship between the management and the employees in this organization are very amity and good. Employees do not want to leave the company and want to work here. This shows the job satisfaction and that why there is very low rate of labour turnover and absenteeism. Performance appraisal of the employees done twice in a year in this organization. Employees are conscious about their training need assessment, promotion and monetary reward. Performance appraisal put greater impact on these three factors.

Chapter 2 INTRODUCTION

PERFORMANCE MANAGEMENT SYSTEM

This system lays down a target setting process where by the organization/ Business goals are cascaded down to unit/ function/ department and individuals to Organizational/ functional goals. Achievements of individual targets would lead to attainment of Organizational/ functional goals, which is the driving force behind the Performance Management System. The frequency of appraisal system may be quarterly, half yearly or annually. Coaching and counseling given to the employees after report given by the assessor. The system will help individual establish their targets. Processes are laid down for assessors to provide integral and important part of system. The system also provides for targets realignment during mid-year.

In order to attain objectivity in the appraisal process, individuals would have six to ten targets in their broad areas with clear measurement indicators agreed in the beginning of the year would lead to creditability of this process.

This system is an ongoing interactive process, which uses the multiple sources of feedback from the supervisors, colleagues and sometimes-self appraisal. Sometimes there is direct involvement of the customer. It is of flexible format and not static like performance appraisal. The team participation of the entire employee is necessary everybody should take active participation in performance management system to make it a success. It is linked to strategic priorities. After the performance management system has taken place the results are being measured following different methods. It is a process, which is retrospective and prospective in nature. Performance appraisal is an annual event, which is done annually. It is done according to hierarchy of the organization and that to from top to bottom. There is no involvement of the customer for the appraisal. The most static format is being followed in the performance appraisal. It is individual oriented and doesnt involve all the employees of the organization. It is fully based on the activities, which only focus on the job description. Only results are achieved without any qualitative and quantitative analysis. It is retrospective in nature.

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PERIODICITY OF THE PERFORMANCE MANGEMENT SYSTEM

The maximum period for the measurement of the Performance Appraisal is one year. It depends on the organization when it wants to calculate the performance of the company, it may differ from company to company. The company chooses the period on the benefits of the organizations system.

DIFFERENCE BETWEEN PERFORMANCE APPRAISAL AND PERFORMANCE MANAGEMENT SYSTEM

Performance Appraisal No customer involvement Static format Activities Based Results Only Job Description Focus Annual Event Top Down Evaluation Retrospective Evaluation

Performance management Direct customer involvement Flexible Format Objective/ Competencies Based Result/ process Measurement Linked To Strategic Priorities Team Participation On Going Interaction Multiple Resources of feedback Retrospective and Prospective

Performance Appraisal is related to the targets assigned to the employee. Performance Management is related to development of the employees.

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PERFORMANCE APPRAISAL
Performance appraisal is a tool for development of an employee. The purpose of Performance Appraisal to assess a persons performance against set goals and targets, Identifying his strengths and areas requiring improvement. Data generated through Performance Appraisal may be sued to: Determine increments Reward a manager , it may be monetary or non monetary reward Identify training need assessment and development requirements Career progression Promotion

Performance appraisal is one of the most important processes of personnel management. It helps in appraising and judging the performance of the workers. The purpose of performance appraisal is to improve the organizations performance through the enhanced performance of the individuals. It is a process of management not merely a small function. It is not a Scheme devised by the personal department for managers to use in accordance with the directives of that department and generating completed forms, which are stowed away in employees dossiers and then forgotten. Acc to Dale Yoder, Performance Appraisal refers to all format procedures used in a work organization to evaluate personalities and contribution and potential of group members. Acc to Flippo, Performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in matters pertaining to his present job and his potential for a better job.

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Performance appraisal is a natural process of management, it basically comprises of three functions:1. 2. 3. Measuring Performance Improving Performance Exercising Leadership

Measuring Performance:- Measuring performance is in accordance with the edge if you cant measure it you cant manage it. The purpose of measuring performance is to indicate not only where things are not going acc to plan but also to identify where things are going well so that steps can be taken to built on success. Performance is a means for creating and maintaining a : Climate and success in the organization. Improving Performance:- Building a climate of success involves taking specific steps to improve the performance of individuals or teams. Because managers depend on the performance, they have a major and continuing responsibility to take whatever action is necessary to improve it. This is entirely a natural process of management and whenever any one completes a task or project good managers will consciously or unconsciously ask themselves. How well was that done? Could it have been done better? Did I pick the right person? Did I brief that person properly? In what ways, if any, does this person need to improve? What guidance or help can I provide this person to ensure that better results are achieved next time? Performance appraisal aims to provide for more systematic and thought through conclusion by reference to specific facts and behaviors, which have produced identifiable results.

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Exercising Leadership:- Leadership is about encouraging and inspiring individuals and teams to give their best to achieve a desired result. Managers as leaders have to achieve the task. Achieving the task involves leaders tin getting answers to the following questions: What needs to be done and why? What results have to be achieved? What problems have to be overcome? Is the solution to these problems straightforward or is there a measure of ambiguity? Is this a crisis solution? What is the time-scale for completing the task?

These functions have their specific importance in process of performance

appraisal. The

essential feature of performance appraisal is to provide a flexible mean for managers, and those whom they manage, to operate a partners but within a framework that describes how they can best work together.

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Contents of Performance Appraisal

The contents of Performance appraisal needs to be examine under four main headings: What is to be appraised-the factors to be taken into account by appraisers and appraises. How appraisal will take place- the methods to be used. When formal appraisal will be carried out-at yearly, half yearly or even quarterly. What needs to be done to ensure the appraisal is continuing process, to use counseling and coaching skills to improve skills and performance.

What is to be appraised?
It is very important for a manager to know what all things are to be appraised; he should be very clear about the things to appraise. In effect there are four things managers need to look at when he is appraising performance. Inputs What the job holders bring to the job in the shape of their knowledge and skills i.e. attributes which are defined as what people need to know and be able to do to perform their job effectively. Process: The behaviors of jobholders in applying their knowledge and skills to the delivery of results. These are sometimes referred to as competencies. These described the behavior required of people to carry out their job effectively. Outputs: The measurable or at least observable results of the behavior exhibited by jobholders. Outcomes: The ultimate impact of the jobholders on the result of their teams or departments and their overall contribution to achieving the objectives of the organization.

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 How should appraisal take place? The foundation of performance appraisal is provided by what the jobholder is expected to do in a job description and by reference to agreed objectives the performance appraisal process built on this foundation can be described as a cycle consisting of 1. 2. 3. Preparation for the appraisal discussion The formal appraisal discussion Informal reviews.

Discussion

Preparation

Informal Review

THE PERFORMANCE APPRAISAL CYCLE

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The preparation section of the cycle covers the pre-meeting work of the appraiser and the appraise who both review results in the light of previously agreed objectives and decide on any matters they want to raise at the appraisal discussion.

The formal appraisal section of the cycle is concerned with

Conducting the appraisal discussion

Overcoming any problem emerging during the appraisal.

Concluding the appraisal by recording the results, agreeing action plans and, as necessary, obtaining another view from the appraisers manager to ensure that a fair and thorough appraisal has taken place.

The information review section of the cycle consists of: Information discussions that take place as and when required and may involve updating objectives or performance plans; The process of coaching and counseling, which help to implement the development and performance improvement programme. When appraisal should take place? Formal appraisal discussions are often held annually but some fast moving organizations prefer to have them twice a year or even more frequently, say at quarterly intervals. When employees are working on some projects, as in a consultancy firm, there may be an appraisal after every assignment. Ensuring that appraisal is a continuing process To ensure that appraisal is not just seen as a one- a-year event to be got over as quickly as possible it is necessary to emphasize the continuing nature of the process in briefing and training. Appraiser & appraiser should understand that feedback & appraisal are in effect everyday occurrences.

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PROCESS OF PERFORAMNCE APPRAISAL

Performance Planning Managing Performances Reviewing Performances Rewarding Performances The process can be shown through a figure, which would make the process more clear; Strategic Planning

Performance Planning

Rewarding Performance

Managing Performance

Reviewing Performance

Process of Performance Appraisal

Performance Planning: - A performance standard setting is the key task. These should have been defined in outcome terms in the why part of the accountability/ task definition. Standards should preferably be quantified in terms, of level of service or speed of response. A performance standard should take the form of a statement that performance will be up to standard if a desirable, specified and observable result happens. Measuring Performance: Measurement is the key aspect of performance appraisal on the ground that If you cant measure it you cant improve it. It is pointless to define objectives or performance standards unless there is agreement and understanding on how performance in achieving these objectives or standards will be measured.

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Reviewing Performance: Reviewing the performance means comprising the actual performance with the target settings or performance standards as set up by the organization policies. It is very important part of performance appraisal process as it also forms the basis for rewarding the performance.

Rewarding Performance: Rewarding the performance is the last step by giving the employees incentives according to the work done by them. The incentives may be monetary or non-monetary. Monetary incentives are in form of increments in wages, bonus and many others. Non-monetary incentives provided are appreciation of work, level of trust and faith of employees.

Objectives of Performance appraisal

Objectives mean something which has to be accomplished a point to be aimed at. There are two main types of objectives of performance appraisal. (1) (2) Work/ Operational Objectives Development/ Personal or Learning Objectives.

Operational Objectives: Consistency: with the values of the organization and departmental and organizational objectives. Precise: clear and well defined, using positive words. Challenging: to stimulate high standards of performance and to encourage progress. Measurable: they can be related to quantified or qualitative performance measures. Achievable: within the capabilities of the individual- account should be taken of any constraints which might affect the individuals capacity to achieve the objectives. Agreed: by the manager and the individual concerned- the aim is to provide for the ownership, not the imposition, of objectives, although there may be situations where individuals have to be persuaded to accept a higher standard than they believe themselves to be capable of attaining. Time related: achievable within a defined time scale. Teamwork oriented emphasizes team work as well as individuals achievement.

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Some personal objectives of performance appraisal are: To review past performances. To assess training needs. To help develop individuals. To audit the skills within an organization. To set targets for future performance. To identify potential for promotion.

Acc to Alan Fowler in P.M. Flur Staff works best when they know what they have to do, how well they have to do it, and how ell are thought to have done, so they need to talk to their managers at least once a year about this and their managers need to take their staffs views into account when setting work goals and deciding who needs what training. All types of objectives are equally important for the organization, if the objectives set are inappropriate all the organizational work would be mislead.

Aims & Principals of Performance Appraisal

Aims: To increase mutual understanding of preferential requirements. To note and recognize achievements. To note and analyze any problem in meeting requirements. To provide the opportunity to discuss aspirations and concern about career prospects and present job. To definite and redefine future objectives. To agree action plans. To agree self-development and training needs.

Principles: Concentrating on developing strengths as well as addressing performance problems. Based on open and constructive discussions.

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 An everyday and natural management process, not just one a year event and not just a form filling exercise.

Benefits of Performance appraisal

For the organization: The organization comes to know the true position of the employees working capacities and the problems they face while working in the organization. This performance appraisal system also acts as a motivating factor for the employees, which helps the organization to get better results.

For the appraise: The appraise fells themselves an important part of the organization, they get a chance to express their views in front of their superiors; they get a platform to express their ideas. The employee comes to know the truth about: To what extent they have achieved their objectives. In what respect their work has been most successful. Are their any aspects of their work, which they have not completed? Are many other question, which make them assess rightly.

Performance Barriers
There are many barriers in performance these may differ from individual to individual; these are: Lack of applause Unfinished business Lack of environment Envy Lack of applause: Applause means appreciation, it is very important for the effective performance expected from the employees, if they doesnt exist a proper level of applause this hinders the performance of the employees.

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Unfinished Business: Unfinished business is also barrier in the performance of the employees; they do not get all the necessary requirements that they need to work up to their optimum capacity.

Lack of environment:

Environment is the most important factor for the

performance. If there doesnt exist the healthy work environment in the organization if directly hinders the performances of the employees in the Organization Environment is one of the most effective barriers in the path of performance.

Envy:

Envy in the most critical barrier regarding performance, it occurs when

anybody gives high performance. This is just because due to the capacity to work or the speed of doing the work but still is very critical barrier in the path of performance.

DIFFERENT TYPES OF APPRAISAL SYTEMS

Feedback system is designed to build up confidence to reinforce desired behavior, clarify problems, improve self-awareness and give recognition and ultimately to improve performance. Different types of feedback or appraisal system are as follows:

In these areas their actual performances are compared with their actual performance acc to the above mentioned scales 90-degree appraisal system 180-degree appraisal system 360-degree appraisal system Self Appraisal

90-degree appraisal system:

This is the appraisal system in which the superiors of an employee appraise the performance. The superiors are the persons who inspect their work and know how well are they fulfilling your responsibilities. In simple words it is a systematic evaluation of the individual with respect to his performance on the job and his potential for

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development. This system is concerned with determine the differences of the performance among the individuals working in the organization.

180-degree appraisal system:

This is the appraisal system in which the peers or the people working at same level appraisal the performance of the employee. This system is not practiced much in the organization, as the people working at same level dont want others to rise so they do not appraise the performances of other truly. They discard the performance of each other and appraise themselves. Due to all these reasons this in not an effective system of appraisal.

360-degree appraisal system:

This is a multirater feedback process; it is one of the most modern and powerful appraisal systems. It is sued by a number of organizations worldwide. Mutlirater appraisal or 360-degree-performane appraisal is a powerful method to identify the employees strengths and weaknesses from the feedback of an individual.

This system is called mutlirater as the feedback is taken from multiple individual who interact with the appraised in the terms of work and hierarchy. The people who work with the appraised are requested to provide a feedback and this is then evaluated. It involves not only the superior but also the peer and subordinate also, not to forget self-appraisal as well. This is thus a more complete and accurate appraisal system.

Multi rating involves the following steps: 1. Questionnaire Building is the first carried out to create the questionnaire that will be used to accurately measure various competencies. 2. Collecting of feedback from the relevant quarters i.e. superior, peers, self, subordinates is carried out next. 3. Normalization of values is then carried out to remove the anomalies introduced by lenient or stringent appraisers. 4. Number Crunching is done once the responses are received so as to extract reports based on the weights given to the responses of the employee.

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5.

Report Analysis is them done to analyze the implication of the contents of each report.

Self Appraisal
Self-appraisal means getting individuals to analyze and assess their own performance as a basis for discussion. This appraisal process is likely to generate less inhabited and more positive discussion to provide a better climate for identifying problems, that are mostly considering solutions and helping individuals to realize their potential and develop their career prospects. Self appraisal can reduce defensiveness by encouraging appraises to take the lead in reviewing their own performance, rather than having an assessment imposed on them, and it focuses their attention on the key performance and development issues with which they should be concerned.

This is an effective system of appraisal and is followed in large number of organization worldwide. Some of the advantages of Self appraisal can be summed as follows : It overcomes many of the traditional problems of performance appraisal by improving the flow of relevant accurate information to appraisers. It assists in resolving uncertainties about criteria for job success. It is likely to reduce defensive behavior. It can have a positive effect on employee motivation by involving employees in an active way in the appraisal process. It encourages better preparation for appraisal interviews. It helps to develop more positive attitudes to performance appraisal. It generates a proactive approach to development

90-degree Vs Multirater System

90-degree system depends on the feedback of one person, the superior. This often leads to employee complaints about bias and nepotism. Also feedback from only one

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person is rarely comprehensive, since it gives only one view of the whole picture. Also, comments fly one way, with employees never having an opportunity to comment on or compliment their superiors. All this leads to low employee motivation.

On the other hand. Multi rater system, if carried out intelligently, can handle these issues. Due to the number of people who give feedback, most bias issues are averaged out. Feedback thus gathered would give a more complete picture sine it includes all views. Employees can also motivate since each one feels that their views are considered and respected.

TYPICAL RATER ERRORS

RATING BIASES
First Impression Stereotyping Halo Effect Horn Effect Central Tendency Strict Or Lenient Rating Latest Behavior
Spillover Effect

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COMPANYS ACTUAL PRACTICE

In NEC India Private Limited, Delhi, Performance Appraisal of employees is calculated twice in a year.

In NEC India Private Limited, Delhi new and traditional method of appraisal system is used. The new management system was started by the initiative and involvement of the top management with a drive to excel and to counter competition with domestic as well as foreign suppliers of equipment.

M.B.O. (management by objectives) & Critical Incidents Method both methods are used by the organization. Post Appraisal Interview is also taken from the employees. When the increments of the employees are due they are appraised by the head of the department of the concerned head and their self appraise is also considered to reach the appropriate measurement. The incensement of the employees is calculated on the basis of their performance towards their work, conduct and discipline etc. for the good result of the performance the employee should be regular towards the job assigned to him. Absenteeism also counts. If the remain absent from the work, disobeys his Superiors colleagues and other staff members then he will not be able to reach the standard fixed by the company.

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For the good results of the Performance Appraisal System the employee must be: His punctuality toward the work. His responsibilities towards the job should be followed appropriately. His intention towards the work should be for the benefit of the company. His activeness and alertness plays the major role to reach the standard. Experience of the person also affects the Performance appraisal System.

Standards fixed by the company for the system:

QUALITY QUANTITY RESPONSIBILITY INTENTION COST CONSCIOUSNESS TARGETS TIME FACTOR

Factor by which the performance appraisal of the employees is affected:

Absenteeism:
The performance appraisal is recorded annually both for the workers as well as staff members. But the increment has been fixed depending upon the grades of the employees. The increment for the staffs is not fixed. The increment to the staff members is given according to the grades assigned to them. The grading level of the staff members from S1 to S5 and for the managers from M1 to M7 depends upon the individuals performance. It is increased depending upon performance of each employee. The increment should be of that much amount, which is fruitful in increasing the performance of the employees in future.

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Performance appraisal of the: JUNIOR MANAGER AND LOWER LEVEL EMPLOYEES

The NEC India Private Limited, Delhi is flowing a different way for the measurement of performance appraisal of the junior manager and lower level employees from workers. The company will first of all measure the key performance of the junior manager and lower level employees.

IT INCLUDES The main tasks, done by the person for the benefit of the company. What comments he has received from the Head of the Department? What is the behavior of the employee on the job? What are the career objectives of the employee? What is the experience of the employee?

There are lots of factors that will also help him to improve his overall performance and the factors are as follows: The working environment of the company should be friendly so, that the people working there are able to work coolly. Is the behavior of the staff members polite towards the other staff members and their subordinates and the Head of the Department? There should be proper training programs for the upliftment of the staff members threw which they can improve and do the job appropriately. The staff members should be provided with best materials for the best production. If the staff members are being provided with the facilities, which are helpful for the family, also the staff members will be more divorced towards the company. There should be active participation of the members in the cultural activities.

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 There should be no distinction in the salary given to the male and female staff members.

The staff members should choose the appropriate area for their development: That area should be selected first which is of the most priority rest should be taken aft wards. The training and the development programs should be identified properly and then the concerned person should be given training. There should be no distinction in the salary given to the male and female staff members. The staff members should choose the appropriate area for their development: That area should be selected first which is of the most priority rest should be taken aft wards. The training and the development programs should be identified properly and then the concerned person should be given training.

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Objective of the study

Main objective
1. To study the effectiveness of appraisal system on training need assessment, promotion, monetary reward in the organization

Sub objective
1. To analyze the techniques used for appraisal system in the organization 2. To study the impact of appraisal on efficiency, skills, confidence and morale of the employees. 3. To study the benefits realized as a result of performance appraisal. 4. To study the attitude of employees towards appraisal system.

Limitations of the study

Except the supreme power, the Almighty, no one is impeccable and prowess enough to accomplish anything without any faults and limitations. A research is no exception. No study is devoid of certain shortcomings. Some problems encountered in this study are under mentioned:

Some officers were too busy to give a sincere response to investigators & hence their response may not relate to real picture.

Manager some time denied disclosing some important financial matters, which can be helpful in this study.

Due to paucity of time, it could not possible to reach the entire executive to collect their opinion.

The study is confined to a select group of executives in a particular manufacturing industry and it may not equally apply to the general executives class of country.

Findings of study are based on the assumptions that respondents have divulged the correct information.

Persuading the respondents to answer the questionnaire was not an easy task.

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Literature Review
When monitoring about performance appraisal it is necessary to define it Performance appraisals are one of the most important requirements for successful business and human resource policy (Kressler, 2003). Rewarding and promoting effective performance in organizations, as well as identifying ineffective performers for developmental programs or other personnel actions are essential to effective to human resource management (Pulakos, 2003). The ability to conduct performance appraisals relies on the ability to assess an employees performance in a fair and accurate manner. Evaluating employee performance is a difficult task.

1. Rao (2005) opines that performance appraisal is a method of evaluating the behavior of employees in the work spot, normally including both the quantitative and qualitative aspects of job performance

2. Dessler (2008) views performance appraisal as any procedure that entails setting work standards, assessing employees actual performance relative to those standards, and providing feedback to the employees with the aim of motivating him/her to eliminate performance deficiencies or to continue to perform above para

3. The aims of appraisal according to Fajana (2002) are three folds: appraisal entails historical review of employees performance; it is a means for distributing rewards as well as a means for determining training and development needs

4. Manoharan, Muralidharan and Deshmukh (2009) posit that performance appraisal (PA) is an important management tool to assess employees efficiency in the workplace, and may be defined as a structured formal interaction between a subordinate and supervisor that usually takes the form of a periodic review which could be annual or semiannual to evaluate work performance. Performance appraisal is intended to engage, align, and coalesce individual

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5. (McKirchy,1998) said that Performance appraisals should focus on three objectives: performance, not personalities; valid, concrete, relevant issues, rather than subjective emotions and feelings; reaching agreement on what the employee is going to improve in his performance and what you are going to do .

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Chapter 2 Company Profile

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INTRODUCTION AND OBJECTIVES

INTRODUCTION:
NEC Corporation is one of the worlds leaders in the integration of IT and network technologies dedicated to meeting the specialized needs of its diverse and global base of customers. It is a publically traded information technology solutions company. It is engaged in providing internet, broadband network and enterprise business. The company offers tailored solutions in the areas of computer, networking and electronic devices through its five business segments namely IT services business, IT Products Business, Network Systems Business, Social Infrastructure Business and Electronic Devices Business. Its operations are spread across the world. It operates through 310 subsidiaries worldwide.

OBJECTIVES:

To understand the business and competitive environment in which the organization is operating. To study the electronics and it industry at a whole and its economy and to analyse the working of NEC INDIA PRIVATE LTD and its competitors. To calculate the financial statements of the company as its shows profitability, solvency, liquidity and stability and also help investors to make their decisions. To analyse and understand the financial position of the organization. To study the way of approach adapted by NEC India Private Ltd. to various dealers. To study the designations of the employees in the organization. To know the various departments within the organization. Interacting with various employees within each department. To study the Job Descriptions-Roles And Responsibilities of the employees

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COMPANYS PROFILE

ORIGIN AND EVOLUTION OF NEC:

NEC Corporation was founded in 1899 and is one of the worlds leaders in the integration of IT and network technologies dedicated to meeting the specialized needs of its diverse and global base of customers. By providing a combination of IT and networking products and solutions that cross utilize the companys experience and global resources, NEC delivers tailored solutions that cross utilize the in the key fields of computers, networking and electronic devices. Today, NEC is a company with over 3,583.1 billion sales revenue (Fiscal year ended Mar.31 2010), and has more than 140000 employees worldwide.

NEC India Pvt Ltd, a wholly-owned subsidiary of NEC Asia Pacific Pvt Ltd (NEC APAC) (HQ: Singapore) and NEC Corporation (HQ: Japan) was established in New Delhi, India, in August 2006. To strengthen NECS business capabilities in India and also to expand its IT and networking businesses in the rapidly expanding Indian market, NEC India works with its customers to introduce new solutions and services for a ubiquitous networking society. Leveraging on NECs unique capabilities in integrating IT and networking technologies for a diverse customer base across governments, businesses, individuals and societies worldwide, NEC India customizes solutions to construct largescale, highly reliable, scalable and flexible IT and network systems, such as Security and Surveillance Systems, Carrier Network, IP Telephony Solutions, Retail solutions (Hardware and Software), Private Network Solutions (Enterprise and Exchange wide EPABX, IP Telephony, KTS), High Performance Computing (Super Computers), IT Products such as servers, storage and Thin Clients, as well as Multimedia Products such as Projectors and Commercial Display Products and Solutions for the Indian market.

Today, NEC India is one of the leading brands in the Projectors market and the company has clearly defined plans to expand and further strengthen its footprint for all its product and solution offerings throughout India.

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Mission

Our mission is to fulfill our customer needs through NEC's technologies and innovations. Striving to find solutions to the various challenges faced by enterprises, NEC upholds that working and thinking together with the customer is the key to success. Through this continuous process, NEC strengthens its own technology and know-how, resulting in customized solutions that achieve greater levels of customer satisfaction. Hence, our global slogan: "Empowered by Innovation" - expresses our commitment to empowering people and society through continuous innovation in every area of our businesses, fueled by our infinite passion for innovation and our customer-focused spirit of collaboration. NEC Group Vision 2017 "To be a leading global company leveraging the power of innovation to realize an information society friendly to humans and the earth."

BOARD OF DIRECTORS
Name Kaoru Yano Nobuhiro Endo* Post Chairman of the Board President (Representative Director) Takashi Niino* Senior Executive Vice President, CSO (Chief Strategy Officer), CIO (Chief Information Officer) and Member of the Board (Representative Director) Junji Yasui* Senior Executive Vice President, CSCO (Chief Supply Chain Officer) and Member of the Board (Representative Director) Toshiyuki Mineno* Isamu Kawashima* Kenji Miyahara** Executive Vice President, CMO (Chief Marketing Officer) and Member of the Board Associate Senior Vice President, CFO (Chief Financial Officer) and Member of the Board Member of the Board (Honorary Adviser, Sumitomo Corporation) Hideaki Takahashi** Member of the Board (Professor, Keio University Graduate School of Media and Governance)

36

Takeshi Kunibe**

Member of the Board (President and Chief Executive Officer, Sumitomo Mitsui Banking Corporation)

Hitoshi Ogita**

Member of the Board (Chairman of the Board and Representative Director, Asahi Group Holdings, Ltd.)

Kaori Sasaki**

Member of the Board (President and CEO, ewoman, Inc.)

COMPANYS (NEC) PRODUCT AND SOLUTIONS:

Multimedia Projectors Professional Displays Video Wall Solutions Digital Signage Solutions Private Network Solutions Products Solutions and Applications Unified Communications Retail Solutions Engineering Services IT Platform Server Storage Express Cluster Thin Client System(Virtual PC Center) Public Safety & Security Government Commercial By technology By product Carrier Solutions Radio Transmission/ Paso link Optical Professional support

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SWOT ANALYSIS

STRENGTHS Huge product and service base Strong R&D Operations

WEAKNESSES Legal Proceedings

OPPORTUNITIES Positive Outlook For Semiconductor Market Growth In Cloud Services

THREATS
Rapid Technological Changes Huge Competition

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Industry Overview

Historical Developments
The Electronic Industry in India took off around 1965 with an orientation towards space and defense technologies. This was rigidly controlled and initiated by the government. This was followed by developments in consumer electronics mainly with transistor radios, Black and White TV, Calculators and other audio products. Colour Televisions soon followed. In 1982 a significant year in history of television in India the government allowed thousands of colour TV sets to be imported into the country to coincide with the broadcast of Asian Games in New Delhi. 1985 saw the advent of Computers and Telephone exchanges, which were succeeded by digital exchanges in 1988. The period between 1984 and 1990 was the golden period for electronic during which the industry witnessed continuous and rapid growth. From 1991 onwards, there was a first n economic crisis triggered by the Gulf War which was followed by political and economic uncertainties within the country. Pressure on the electronics industry remained though growth and developments have continued with digitalization in all sectors, more recently the trend towards convergence of technologies. After the software boom in mid 1990s Indias focus shifted to software. While the hardware sector was treated with indifference by successive governments. Moreover the steep fall in custom tariffs made the hardware sector suddenly vulnerable to international competition. In 1997 the ITA agreement was signed at the WTO where India committed itself to total eliminations of all customs duties on IT hardware by 2005. In the subsequent years, a number of companies turned sick and had to be closed down. At the same time companies like Moser Baer, Samtel Colour, Celetronix etc. have made a mark globally.

Current Scenario
In recent years the electronic industry is growing at a brisk pace. It is currently worth US $ 32 Billion and according to industry estimates it has the potential to reach US$ 150 billion by 2010. The largest segment is the consumer electronics segment. While is largest export segment is of components.

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The electronic industry in India constitutes just 0.7 percent of the global electronic industry. Hence it is miniscule by international comparison. However the demand in the Indian market is growing rapidly and in investments are flowing in to augment manufacturing capacity. The output of the Electronic Hardware Industry in India is worth US$ 11.6 billion at present. India is also an exporter of a vast range of electronic components and products for the following segments. Display technologies Entertainment electronics Optical Storage devices Passive components Electromechanical components Telecom equipment Transmission & Signaling equipment Semiconductor designing Electronic Manufacturing Services (EMS)

The growth has attracted global prayers to India and leaders like Solectron, Flextronics, Jabil, Nokia, Elcoteq and many more have made large investments to access the Indian market. In consumer electronics Korean companies such as LG and Samsung have made the commitments by establishing large manufacturing facilities and now enjoy a significant share in the growing market for products such as Television, CD/DVD Players, Audio equipment and other entertainment products.

The growth in telecom products demand have been breathtaking and India is adding 2 million mobile phones users every month. With telecom penetration of around 10 percent, this growth is expected to continue at least over the next decade. Penetration levels in other high products are usually high and growth in demand for Computer/IT products, auto electronics, medical, industrial as well as consumer electronics is equally brisk. Combined with low penetrations levels and the Indian economy growing at an impressive 7 percent annum, the projection of a US$ 150 billion+ market is quite realistic and offers an excellent opportunity to electronic players worldwide.

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Electronic Manufacturing Services

Obvious allure of locating electronics production in India is the nations low labour costs. Labour costs for conducting electronics manufacturing in India are between 30 to 40 percent less than in the United States or in Western Europe. Other equally important benefits from operating in India include a fast growing domestic market, an excellent education system, the nations technology parks and the recent improvements in the countrys transit and utility infrastructure. However, the Indian contract manufacturing industry is not expected to pose a significant threat to Chinas position as the epicenter of electronics manufacturing in the short term. Indias contract manufacturing activities primarily serve the nations demand. OEMs primarily outsource manufacturing to cater to the Indian domestic market, although export of Indian- assembled electronic goods does occur. In the longer term, i.e. 2009 onward, it is predicted that India may compete with the Chinese providers in select products a the nations share of the global electronics market increases. For OEMs using contract manufacturing services in India can help them penetrate the local market. However, OEMs face specific risks associated with using the contract manufactures in India. Fluid exchange rates combined with volatile oil and component prices lead to unpredictable costs. Changing governments policies along with shifting government regimes also contribute to an unpredictable political environment. Doing business in India is often disjointed, with an inefficient bureaucratic system that causes frequent delays. However, for OEMs able to manage these risks, the opportunity in India is significant. The semiconductor fabrication segment has a small existing base in India with only two fabrication units, which both are developing chips for the defense and strategic sectors. However, semiconductor suppliers are expanding their manufacturing activities in India to serve the growing contract- manufacturing industry in the nation. As evidence of this trend, groundbreaking commenced on a 200 mm fabrication unit in Hyderabad operated by NanoTech Silicon India Ltd. Recent trends show that an increasing number of engineering and design activities are also being outsourced to EMS companies and they are becoming ODMs ( Original Design manufacturers) and also provide final system and logistic support.

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The recent acceleration in EMS activity is mainly due to rapid growth in the electronic hardware market in all segments particularly rapid growth has taken place in Telecom infrastructure, equipments, computers, consumers and hand held devices.

The Growth Drivers

Behind the impressive growth of the electronics industry is the robust and consistent growth in Electronic Hardware market in approximately 25 percent due to a stable economy and large middle class of 350 million people. The fastest growing segments are demand for telecom services particularly cell phones, internet subscribers and growth in demand for its products with increasing penetration of computers, falling prices and government support to rapidly encourage usage of IT in all sectors. Penetration of all telephone users ( both landline and mobiles) is projected to increase exponentially. Some of the other factors are

Highly talented workforce, especially for design and engineering services with good communication skills. Rising labor costs in China. Presence of global Electronics Manufacturing Services (EMS) majors in India and their plans for increased investments in India. More outsourcing of manufacturing by both Indian and global Original Equipment Manufacturers.

Production Trend of Different Segment

Consumer Electronics

Consumer electronics ( durables) sector continue to be the main stay of the Indian electronic industry contributing 32 percent of the total electronic hardware production. The market is expected to grow at 10 to 12 percent annually. The urban consumer durable market is growing at an annual rate of 7 to 10 percent, the rural durables market is growing at 25 percent annually. Some high-growth categories within the segment includes mobile phones, TVs and music systems.

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Computer Industry The high growth in PC sales is attributed to increased consumption by Indian verticles such as telecom, banking and financial service, manufacturing, education, retail and BPO/ IT enabled services as well as major e- governance initiatives of the central and state governments. Significant consumption in the small and medium enterprises and increased PC purchase in smaller towns and cities are witnessed during the year. It is expected that increased government pan- India deployment of broadband at one of the lowest cost in the world will soon accelerated PC consumption in the home market. The growing domestic IT market has now given impetus to manufacturing in India. This year witnessed not only capacity expansion by the existing players, but also newer investment in hardware manufacturing. India is also highest on the agenda of the electronics manufacturing service companies.

Control, Instrumentation and Industrial Sector This is now a matured liquidity sector in the country at least as far as various application segments is concerned. State of art reliable SCADA, PLC/ Data Acquisitions systems are being applied across various sections of the process industry. Latest AC drive systems from smaller to very high power levels also find applications in large engineering industries like steel plants and/ or metal industries. World class UPS systems being manufactured in the country to cater to the need of the emerging digital economy. However, it appears there is really no manufacturing base in the country for the whole range of the latest test and measuring instruments which are invariably procured from outside. A good number of Indian companies in the control and instrumentation sector are able to acquire orders for export systems through international competitive bidding. However the creation of knowledge base in the country through industrial R&D in this critical sector has not been improving as desired. There is still lack of needed R&D activities by the industry looking at the global market. On the part of Department Of Information Technology some of the latest technology development and applications in this area include Intelligent SCADA Systems for monitoring and control of Mini Hyde plants, Advanced Traffic Control System for urban transportation, Intelligence Power Controllers for improvement of quality of electric power etc. These systems have been successfully developed and applied in real field conditions.

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Communication & Broadcasting Sector

The telecommunication industry has gained tremendous recognition as the key driver for all round development and growth. India has emerged as one of the largest in the world and second largest in Asia. Broadband connectivity is holding tremendous potential in the country. India has emerged as the second largest market for mobile handsets. Following the unprecedented growth in the mobile market, a number of companies are planning to set up production base for mobile handsets in the country for meeting local as well as export markets. Direct to home (DTH) broadcast service has gained more and more popularity. Better quality digital broadcast reception is now available almost everywhere in the country to the common people on their TV sets through the use of small dish antenna and a Set Top Box (STB).

Strategic Electronics
Though the government has started the process of getting private sector involved in the production of strategic electronics equipments, the private involvement is at nascent stage.

Electronic Components
The components with major share in the export are CD-R, CPTs, PCBs, DVD-R, connectors, and semiconductors devices, ferrites, resistors etc. Significant developments took place during the year in the area of colour picture tubes and colour glass parts. Another CPT manufacturer successfully launched manufacture of pure flat tubes, leading to availability of flat tubes from three indigenous sources. The CPT units continued expansion of capacities to improve further their global competitiveness. Two more lines were commissioned during the year, one for manufacture of large size flat colour Picture tubes and the second for small size. Two more lines are likely to come up next year. Keeping pace with the downward trend in prices of color TVs, the prices of CPTs also fell. One of the CPT manufacturers successfully developed a prototype of the 42 Plasma Display Panel. This marked a major achievement of a milestone in the area of developing from green field a Technology development initiative in a Hi Tech area. The focus of development was in optimizing the Plasma Display Cell design to achieve the desired parameters of Contrast and Brightness, achieving high speed response times and parallely designing the Scan and sustain driver boards to match the Panel parameters. A fully

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functional video Controller was also designed and developed to match the Logic Circuits of the PDP Panel. The color glass parts manufacturer implemented major expansion of its capacity to meet increased local requirement due to substantial growth in CPT production. The unit also started manufacture of glass parts for pure flat tubes as the demand for such tubes increased as one more unit launching production during the year. Both the existing manufacturers of B/W glass parts continued the production of colour funnels in their existing lines. They were also planning to make large investment to set up manufacturing facilities for colour panels in near future. A number of existing units imported capital goods under various schemes for expansion of their capacities in PCBs, connectors, cable assemblies, colour picture tubes, compact disc, glass parts for colour picture tubes, etc. The serviceable market for professional grade components such as PCBs, semiconductor devices, connectors, wound components, antennas, etc., is likely to go up due to launch of manufacture of mobile handsets in the country.

MAJOR PLAYERS 1 Solectron

Centum Electronics limited is the leading India Company offering state of art solution for Frequency Control Products (FCP), Electronic Manufacturing Service (EMS) and Hybrid Micro Circuits (HMC). Solectron has a manufacturing unit and design center in Bangalore and post manufacturing center in Mumbai. The EMS operation focuses primarily on the domestic market.

2 Flextronics
Flextronics entered India in 2001 when it purchased Motorola facility. Flextronics maintained Bangalore facility with 18000 sq ft and 297 employees. The products manufactured are engine control CCRD, TV tuners, set top box, energy meters, networking cards and WLL wall sets.

3 Jabil Circuits
Jabil Circuit operates 51000 sq ft plant in Pimpri which the provider took over from Philips in 2002. The Pimpri plant manufacturers TV analog cards and certain audio products for Philips. All production today is for Indian market.

4 Samtel Group

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The Samtel group is the largest Indian integrated manufacturer of a wide range of a wide range of display devices like Colour and B&W TV picture tubes, tubes for avionics, medical and industrial applications, CRT glass, electron guns, heaters and cathodes and deflection yokes and engineering services. Samel has registered many patents for developments in video display technology. It is an ISO 9000, UL and ISO 14000 certified company. Samtel has acquired a facility in Germany to manufacture high tech, high resolution CRTs for demanding applications for aviation avionics, medical monitors and variety of industrial applications through continuous focus on R&D. Another major player and exporter in this segment is Hotline Group which manufacturers B/W and Colour Picture Tubes.

5 Moser Baer India Ltd.

In the Optical device storage device segment, Moser Baer India Ltd, is today worlds third largest optical CD maker in the industry dominated by Japan and Taiwan. MBIL supplies to number of branded players like Sony, Verbatim, TDX, Maxwell, Imation, Samsung etc and collaborative R&D as well as reciprocal training programs with these world class companies.

6 Hical Magnetics
India has several world class companies manufacturing electromechnical and wound components. These includes MNCs as well as Indian companies such as Hical Magnetics, a QS9000 company which designs and manufacturers professional grade transformers. Hical also offers world class design services for state of the art power convertors and qualification services for both power convertors and magnetics. Hical has also established a subsidiary in USA with focus on giving design, engineering & sales support to their North American customers.

7 Tyco Electronics
Tyco Electronics, an MNC with a modern facility in Bangalore specializes in high grade connectors such as fiber optic interconnectors system and smart card connectors.

8 Midas Communications

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Another example is the development of CORDECT technology, Indias own very Wireless Local Loop Technology, jointly developed by Midas Communication Technologies, TENET group, IIT Madras and US based Analog Devices Inc. Based on Digital Enhanced Cordless Telecommunication standard specified by European Telecommunication Standard Institute (ETSI), CORDECT provides cost- effective, simultaneous high- quality voice, data connectivity in rural and urban areas.

9 Elin Electronics Ltd

A major player and pioneer in the entertainment electronic segment is Elin Electronics Ltd, manufacturing Tap Desk and CD mechanisms. The company also manufactures AC & DC Micro motors for OEMs provide contract manufacturing services.

10 Cadence Design
Electronic Chip Design is another area growth for the electronics industry, which can provide support for growth for manufacturing as well as greater value addition. World leaders such as Cadence have set up shop in India, and more and more companies are relocating designs centers due to technical skills available here.

REGULATORY ENVIRONMENT
Implementation of ITA-I under WTO India have been successfully promoting reforms in all the constituents of the internet, communication and entertainment sector. Being a signatory to the Information Technology Agreement (ITA-I) of the world trade organization and with effect from March 1, 2005 the customs duty on all the specified 217 items have been eliminated. Technology sector except for manufacturing electronic aerospace and defense equipment. Industrial Licensing has been virtually abolished in the Electronics and Information. There is no reservation for public enterprises in the Electronics and Information Technology industry and private investment sector is welcome in every area.

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Electronics and Information Technology industry can be set up anywhere in the country subject to clearance from the authorities responsible for control of environmental pollution, local zoning and land use regulations.

Foreign Investment Policy A foreign company can start operations in India by registration of its company under the Companies Act 1956. Foreign equity in such Indian companies can be up to 100 percent. At the time of registration it is necessary to have project details, local partner (if any), structure of the company, its management structure and shareholding pattern. Registration is a kind of formality and it takes about two weeks. It can forge the strategic tie up with an Indian partner. A joint venture entails the advantages of established contracts, financial support and distribution- marketing network of the Indian partner. Approval of foreign investment is through either automatic route or government approval. Foreign technology induction is encouraged both through FDI and through foreign technology collaboration agreement. Foreign direct investment and foreign technology collaboration agreement can be approved through automatic route under powers delegated to the Reserve Bank of India (RBI) or otherwise by the Government.

Foreign Trade Policy In general, all electronics and IT products are freely importable , with the exception of some defense related items. All electronic and IT products, in general are freely exportable, with an exception of a small negative list which include items such as high power microwave tubes, high end super end computer and data processing security equipment. Export Promotion Capital Goods (EPCG) allows import on capital goods on Payment of 5 percent custom duty. The export obligation on EPCG scheme can also be fulfilled by the supply of Information Technology agreement (ITA-1) to the DTA provided the realization is in free foreign exchange. The import of second hand computers including personal computers and laptops are restricted for imports.

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SEZ Scheme Special Economic Zones (SEZ) is a specifically delineated duty free enclave and shall be deemed to be foreign territory for the purpose of trade operations and duties and tariffs. SEZ unit may import/ procure from the DTA without payment of duty all types of goods and services including capital goods whether new or second hand, required by it for its activities or in connection therewith, provided they are not prohibited items of imports. The units shall also be permitted to import goods required for the approved activity including capital goods, free of cost or on loan from clients. SEZ may, on the basis of a firm contract between the parties, source the capital goods from a domestic/ foreign leasing company. SEZ unit shall be positive net foreign exchange earner. Net Foreign Exchange Earning (NFE) shall be calculated cumulatively for a period of 5 years from commencement of production. As per the Special Economic Zones, 2006, notified by the Department Of Commerce, in case of SEZ is proposed to be set up exclusively for electronic hardware and software, including, information technology enabled services, the area shall be ten acres or more with an minimum built up processing area of 1,00,000 square meters.

Export Oriented Units Sector schemes are available for setting up Export Oriented Units for the Electronics/ IT sector. Various incentives and concessions are available under these schemes. The schemes are: Export Oriented Units (EOU) scheme Electronics Hardware Technology Parks (EHTP) scheme Software Technology Parks (STP) scheme EOU/ EHTO/ STP schemes Units undertaking to export their entire production of goods and services, except permissible sales in the Domestic Tariff Area (DTA) may be set up under the EOU, EHTP or STP scheme for manufacture of goods, including repair, remaking, re-conditioning, reengineering and rendering of services. Trading services, however are not covered under these schemes.

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100 percent Foreign Direct Investment is permitted through automatic route for the units set up under these schemes. These units may import and/ or procure from the DTA or bounded warehouses in DTA, without payment of duty, all types of goods, including capital goods, required for its activities, provided they are not prohibited items of imports in the ITC (HS). The units shall also be permitted to import goods including capital goods required for the approved activity, free of cost or on loan/ lease from clients. An unit under any of these schemes may, on the basis of a firm contract between the parties, source the capital goods from a domestic/ foreign leasing company without payment of excise/ custom duty. This unit shall be a positive net foreign exchange earner. Net Foreign Exchange Earnings (NFE) shall be calculated cumulatively in the blocks of 5 years starting from the commencement of production. Supplies of Information Technology Agreement (ITA-1) items and notified zero duty telecom/ electronic items affected from EOU/ EHTP/ STP units to DTA will be counted for the purpose of fulfillment of positive NFE. The Software Technology Parks of India (STPI) scheme has played a pivotal role in catalyzing the growth of this sector and supporting its rapid proliferation across the country. The tax holiday has attracted has helped attract much needed investments (MNC and Indian) in the sector and the virtual world has allowed firms to avail benefits without constraints on their choice of location- encouraging entrepreneurship and integrated growth. Although the existing term of the STPI scheme is nearing its end (in 2009) the government intends to continue the benefits offered, by introducing similar provisions in the Special Economic Zones (SEZ) policy- and further relaxing the minimum area requirements (to qualify for an SEZ status), for IT- BPO sector.

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CHALLENGES AND OPPORTUNITIES

1 Challenges
Major challenges facing the Indian electronic manufacturing market are an infrastructure that needs to be improved at the earliest possibility, easing of foreign investment procedures, which is underway and a restructured government tariff that now makes domestically manufactured goods more expensive than imported goods with zero tariffs. There are also other problems which are hampering the growth of the Indian electronics industry. Some of them are: Lack of world- class infrastructure. Lack of clear cut government policy for the industry. Very little expenditure in research and development area. Power of marketing not harnessed to the maximum. While the Electronics sector in India is currently small, there are several advantages that India offers that can be effectively leveraged to achieve higher growth. These can be categorized under three heads: Manpower Market demand Policy and regulatory support

2 Opportunities

Abundant Availability of Man Power

India produces over 500 PhDs, 200000 engineers, 300000 non- engineering post graduates and 2100000 other graduates each year. The Indian Institutes of Technology (IIT) and Indian Institute of Management (IIM) produce graduates and post graduates with best inclass skills and capabilities in technical and management fields. Indias capabilities in IT and engineering make it an attractive location for sourcing engineering services such as Research & Development (R&D) and design.

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RESEARCH METHODOLOGY

52

Research Process

1 OBSERVATION Broad area of research interest identified

3 PROBLEM DEFINITION Research Problem Delineated

4 THEORETICAL FRAMEWORK

5 GENERATION OF HYPOTHESES 6 SCIENTIFI C RESEARCH DESIGN

7 DATA COLLECTION, ANALYSIS AND INTERPRETATION

Variables clearly identified and labeled

2 PRELIMINARY DATA GATHERING Interviewing Literature Survey

8 DEDUCTION Hypotheses substantiated? Research question answered? NO Yes 11 Manager ial decision making

9 Report writing

10 Report Presentat ion

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RESEARCH METHODOLOGY
The procedure adopted for conducting the research required a lot of attention as it has direct bearing on accuracy, reliability and adequacy of results obtained. It is due to this reason that research methodology, which we used at the time of conducting the research, needs to be elaborated upon. Research Methodology is way to systematically study & solve the research problems. If a researcher wants to claim his study as good study, he must clearly state the methodology adopted in conducting the research so that it may be judged by the reader whether the methodology of work done is sound or not.

The Research Methodology here includes: 1. 2. 3. 4. 5. 6. Meaning of research Research problem Research design Sampling design Data collection method Analysis and Interpretation of Data

Meaning Of Research
Research is defined as a scientific & systematic search for pertinent information on a specific topic. Research is an art of scientific investigation. Research is a systematized effort to gain new knowledge. It is a careful investigation or inquiry especially new facts in any branch of knowledge. through search for

Research Problems
The first step while conducting research is careful definition of Research problem. The present project has been undertaken to do the Study of Performance appraisal system for Training Need Assessment, Promotion and Monetary Rewards for employees of NEC India

Private Limited, Delhi

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Research Design

A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research design is the conceptual structure within which research is conducted. It constitutes the blueprint for the collection measurement and analysis of data.

TYPES OF RESEARCH DESIGN

EXPLORATORY RESEARCH DESIGN

DESCRIPTIVE & DIAGNOSTIC RESEARCH DESIGN

EXPERIMENTAL RESEARCH DESIGN

Research Design used: Descriptive Research Design is used. It includes description of Performance Appraisal System used by the company.

Scope of the study:

The scope of the study is very wide because it includes the performance appraisal and development of the employees in which training is also included.

Area of Study:
My area of study for project report is NEC INDIA PRIVATE LIMITED, DELHI

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SAMPLING AND SAMPLE DESIGN SAMPLING:

Sampling can be defined as the selection of some part of an aggregate or totality on the basis of which a judgment or inference about the aggregate or totality is made. In other words it is the process of obtaining information about an entire population by examining only a part of it. The process of sampling is used for various reasons Sampling saves time and money. It is usually less expensive and produces results at faster speed. It provides more accurate information. It enables to estimate the sampling errors and thus assists in obtaining information concerning characteristics of population. It also enables greater speed of collection of data. The ultimate test of sample design is how well it represents the characteristics of the population it purports to represent. In measurement terms the sample must be valid which depends upon Accuracy It is the degree to which biasness is absent from the sample. Precision It represents how well the sample represents the population in all respect.

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SAMPLING AND SAMPLING DESIGN

Sampling can be defined as the selection of some part of an aggregate or totality on the basis of which a judgment or inference about the aggregate or totality is made. In other words it is the process of obtaining information about an entire population by examining only a part of it.

Universe The organization selected for the study is a private sector unit NEC India

Private Limited, Delhi

Sample Units:
The sample size was 100 employees including both male and female.

Sampling Design
The respondents have been selected by using Random Selection among different levels, different authorities and different departments.

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DATA COLLECTION
The best way to record or to measure the performance is to gather the information related to the manpower, training and development programs, performance appraisal techniques, period of the performance management system etc. The present study is based on both secondary as well as primary data. The Head of Departments of the company were interviewed informally to gather the information.

Collection of data:
Primary Sources Secondary Sources

Primary Sources: - The primary data is collected by various approaches so as to

give a precise, accurate, realistic and relevant data. The main tool in gathering primary data was Observation Interview Survey

Secondary Sources: - The secondary data as it has always been important for the
completion of any report provides a reliable, suitable, adequate and specific knowledge. Magazines Text books

Analysis and Interpretation of Data

The data collected in the aforesaid manner have been tabulated in condensed form to draw the meaningful results. The different techniques are adopted to analyze the data. All the data and material is arranged through internal resources and the last part of the project consists of the conclusions drawn from the report, a brief summary and recommendation are giving the final touch to the report by stating a conclusion

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RESULTS AND DISCUSSION

Q.1

Are you aware about the Performance Appraisal System in the Organization?

No. of responses

Yes

No 17

No. of respondents 83

no. of respondants
90 80 70 60 50 40 30 20 10 0 yes no no. of respondants

Interpretation:
o 83% employees were aware about performance appraisal system in the organization. o 17% employees were not aware about performance appraisal system in the organization

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Q.2

Does the appraisal system apply at all levels in the organization ?

Response Respondents

S. Agree 30

Agree 26

Neutral 4

Disagree 24

S. Disagree 16

Respondents

S. Disagree 16%

S. Agree 30%

S. Agree Agree Neutral Disagree S. Disagree

Disagree 24% Neutral 4%

Agree 26%

Interpretation:
o 30% employee are strongly agree and said that appraisal system apply at all level. o 26% employee are agree and said that appraisal system apply at all level. o 4% employee are neutral appraisal system apply at all level. o 24% employee is disagreeing and said that appraisal system is not applied at all level. o 16% employees are strongly disagree and said that appraisal system is not applied at all level.

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Q.3

Do you think Performance Appraisal is continuous process ?

Response Respondents

S. Agree 26

Agree 30

Neutral 4

Disagree 26

S. Disagree 14

Respondents

S. Disagree 14%

S. Agree 26% S. Agree Agree

Disagree 26%

Neutral Disagree S. Disagree Agree 30%

Neutral 4%

Interpretation:
o 26% employees are strongly agree and said that appraisal system is ongoing process. o 30% employees are agree and said that appraisal system is ongoing process. o 4% employees are neutral. o 26% employees are disagree and said that appraisal system is not an ongoing process. o 14% employees are strongly disagree and said that appraisal system is not an ongoing process.

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Q4.

What should be the frequency of Appraisal System in your opinion what should be

the timeing ?

no.of responces ondents

Quarterly Half Yearly Annually After 2 Years After 5 Years

Interpretation:
o 12% employees are in favor of frequency of appraisal system quarterly. o 40% employees are in favor of frequency of appraisal system half yearly. o 20% employees are in favor of frequency of appraisal system yearly. o 10% employees are in favor of frequency of appraisal system two year. o 18% employees are in favor of frequency of appraisal system after five year.

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Q.5

Are you satisfied with the method which is currently used for Performance Appraisal?

Response Respondents

S. Agree 26

Agree 30

Neutral 4

Disagree 26

S. Disagree 14

No,of Respondents (in%)

10%

6%

4%

strongly agree agree 50% undecided disagree strongly disagree

30%

Interpretation:
o 50% employees are strongly agree about performance appraisal system used in the organization. o 30% employees are organization o 10% employees are undecided about performance appraisal system used in the organization o 6% employees are disagree about performance appraisal system used in the organization agree about performance appraisal system used in the

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o 50% employees are strongly disagreeing about performance appraisal system used in the organization.

Q.6

Are you satisfied with the training provided to you in the organization?

Response Respondents

S. Agree 28

Agree 72

Neutral 0

Disagree 0

S. Disagree 0

No,of Respondents (in%)

undecided, 0% disagree, 0% strongly disagree, 0% strongly agree, 28%

strongly agree agree undecided disagree

agree, 72%

strongly disagree

Interpretation:
o 28% employees are strongly agreeing that with the training provided to them in the organization. o 72% employees are agreeing with the training provided to them in the organization.

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Q.7

Are you satisfied with the promotion based on the Performance?

Response Respondents

S. Agree 55

Agree 26

Neutral 10

Disagree 5

S. Disagree 4

no. of respondents

Strongly Agree Agree Neutral Disagree Strongly Disagree

Interpretation:
o 55% employees are strongly agreed that promotion should base on the Performance. o 26% employees are agreeing that promotion should base on the Performance. o 10% employees are neutral about promotion should based on the Performance. o 5% employees are disagreeing that promotion should base on the Performance. o 4% employees are strongly disagreeing that promotion should base on the Performance.

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Q.8

Are you satisfied with promotion which is provided to the employees in the organisation?

Response Respondents

S. Agree 27

Agree 36

Neutral 19

Disagree 18

S. Disagree 0

No.of Respondents

18%

0%

27%

Fully satisfied Satisfied Neutral Dissatisfied

19% 36%

Fully dissatisfied

Interpretation:
o 27% employees are strongly agree that promotion which is provided to them in the organization. o 36% employees are agree that promotion which is provided to them in the organization. o 19% employees are neutral promotion which is provided tothem in the organization. o 18% employees are disagreeing that promotion which is provided tothem in the organization. o 0% employees are strongly disagree that promotion which is provided to them in the organization.

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67

Q.9

Are you agree that company promotion policies are well defined and Shared with all employees?

Response Respondents

S. Agree 36

Agree 30

Neutral 8

Disagree 16

S. Disagree 10

Respondents

S. Disagree 10% Disagree 16% S. Agree 36% S. Agree Agree Neutral Neutral 8% Agree 30% Disagree S. Disagree

Interpretation:
o 36% employees are strongly agreed that company policies are well defined and shared with all employees. o 30% employees are agreeing that company policies are well defined and shared with all employees. o 8% employees are neutral about company policies are well defined and shared with all employees. o 16% employees are disagreeing that company policies are well defined and shared with all employees. o 10% employees are strongly disagreeing that company policies are well defined and shared with all employees.

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Q.10

Are you satisfied with the monetary reward which is provided on the basis of performance?

Response Respondents

S. Agree 20

Agree 30

Neutral 5

Disagree 40

S. Disagree 5

response 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 40% 30% 20% response

percentage

5%

5%

strongly agree

agree

undecided response

disagree

strongly disagree

Interpretation:
o 20% employees are strongly agreed that monetary reward should provided on the basis of performance. o 30% employees are agreeing that monetary reward should provided on the basis of performance. o 5% employees are neutral about monetary reward should provided on the basis of performance. o 40% employees are disagreeing that monetary reward should provided on the basis of performance. o 5% employees are strongly disagreeing that monetary reward should provided on the basis of performance.

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Q.11 Response Respondents

Talents are not just being recognized but reward as well? S. Agree 26 Agree 30 Neutral 4 Disagree 26 S. Disagree 14

Respondents

14%

26%

S. Agree Agree Neutral

26% 4% 30%

Disagree S. Disagree

Interpretation:
o 26% employees are strongly agree that Talents are not just being recognized but reward as well. o 30% employees are agree that Talents are not just being recognized but reward as well. o 4% employees are neutral that Talents are not just being recognized but reward as well. o 26% employees are disagree that Talents are not just being recognized but reward as well. o 14% employees are strongly disagree that Talents are not just being recognized but reward as well.

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Q.12

Do you think rewards are used as a technique for motivating both the Employees and their family?

Response

S. Agree

Agree

Neutral

Disagree

S. Disagree

Respondents

36

30

16

10

Respondents

S. Disagree 10% Disagree 16% S. Agree 36% S. Agree Agree Neutral Neutral 8% Agree 30% Disagree S. Disagree

Interpretation:
o 36% employees are strongly agree that reward is used as a technique for motivating both employee and his/her family o 30% employees are agree that reward is used as a technique for motivating both employee and his/her family o 8% employees are about reward is used as a technique for motivating both employee and his/her family o 16% employees are disagree that reward is used as a technique for motivating both employee and his/her family o 10% employees are strongly disagreeing that reward is used as a technique for motivating both employee and his/her family.

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Q.13

Is counseling helpful in improving the performance of individuals in your Organization?

Response Respondents

S. Agree 34

Agree 30

Neutral 8

Disagree 14

S. Disagree 14

Respondents

S. Disagree 14% Disagree 14% Neutral 8% Agree 30% S. Agree 34% S. Agree Agree Neutral Disagree S. Disagree

Interpretation:
o 34% are strongly agreed and said that counseling is helpful in improving performance of individual. o 30% are agreed and said that counseling is helpful in improving performance of individuals. o 8% are neutral about that counseling is helpful in improving performance of individuals. o 14% are disagree and said that counseling is helpful in improving performance of individuals. o 14% are strongly disagreed and said that counseling is helpful in improving performance of individuals. .

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Q.14

Information obtained from appraisal is being used for development and Advancement purpose?

Response Respondents

S. Agree 20

Agree 40

Neutral 18

Disagree 15

S. Disagree 7

response

Highly satisf ied 7% 15% 20% satisf ied neutral 18% 40% highly dissatisf ied dissatisf ied

Interpretation:
o 20 % employees strongly agreed that Information obtained from appraisal is being used for development and advancement purpose. o 40 % employees agreed that Information obtained from appraisal is being used for development and advancement purpose. o 18 % employees neutral about Information obtained from appraisal is being used for development and advancement purpose. o 15 % employees dis agreed that Information obtained from appraisal is being used for development and advancement purpose. o 7 % employees strongly disagreed that Information obtained from appraisal is being used for development and advancement purpose.

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Q.15 Do you think that Feedback request should be shared with entire company?

Response Respondents

S. Agree 30

Agree 20

Neutral 10

Disagree 20

S. Disagree 20

No.of Respondent

20%

30%

Strongly Agree Agree Undecided Disagree

20% 10% 20%

strongly disagree

Interpretation:
o 30% employees are strongly agreed that feedback result should be shared by the entire company. o 20% employees are agreeing that feedback result should be shared by the entire company. o 10% employees are neutral about feedback result should be shared by the entire company. o 20% employees are disagreeing that feedback result should be shared by the entire company. o 20% employees are strongly disagreeing that feedback result should be shared by the entire company.

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FINDINGS
The findings of the study can be summarized as under: The staff, which calculates or measures the performance, is capable of keeping the records. The performance of the workers and the staff is calculated twice in a year. The NEC India Private Limited, Delhi maintains the records of the workers and staff members separately. They follow different method, grading level and different criteria to evaluate the performance of workers and staff members. Earlier the company was having the same from for the performance appraisal of the workers and the employees but from last two years they have made few changes and made two different forms for the workers and the staff members. Forty points are being considered as the maximum points for the best performance in the Performance Appraisal System below forty points is considered to be low. As such there are no fixed standards fixed for the calculation of the Performance Appraisal System.

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SUGGESTIONS
These are the suggestions which are summarized below: It seems that this organization is in growth phase hence systems do exist but needs a lot of improvement. Performance management system needs to be linked to training and development and promotion, career progression, companys objectives etc. It is suggested that the involvement of appraisal in performance management activities is increased. The various goals should be set at the individual level. The employees should be encouraged that if they perform their work very well then they must be awarded.

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CONCLUSION

NEC India Private Limited, Delhi is a fast growing company in the terms of
profitability, market share and value. The insight is just the small glimpse of how the knowledge books are practically transformed into what you call as a success theory. In just some years of its presence in market it has had the distinction of being one of the fast growing companies. The relationship between the management and the employees in this organization are very amity and good .Employees do not want to leave the company and want to work here. This shows the job satisfaction and that why there is very low rate of Labour turnover and absenteeism. Performance appraisal of the employees done twice in a year in this organization. Employees are conscious about their training need assessment, promotion and monetary reward. Performance appraisal put greater impact on these three factors.

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ANNEXURE
QUESTIONNAIRE Name : Age Sex : : Male . Female. ....

Department : Designation:

Q.1

Are you aware about the Performance Appraisal System in the organisation? Yes [ ] No [ ]

Q.2 Does the appraisal system apply at all levels in the organization? Strongly Agree Neutral Strongly Disagree [ ] [ ] [ ] Agree Disagree [ ] [ ]

Q.3 Do you think Performance Appraisal is a continous process? Strongly Agree Neutral Strongly Disagree [ ] [ ] [ ] Agree Disagree [ ] [ ]

Q.4 What is the frequency of Appraisal System in your opinion what should be the timeing ? Quarterly Annually [ ] [ ] Half Yearly After 2 Years [ ] [ ]

Q.5

Are you satisfied with the method which is currently used for Performance

Appraisal? Strongly Agree [ ] Agree [ ]

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Neutral Strongly Disagree

[ ] [ ]

Disagree

[ ]

Q.6

Are you satisfied with the training provided to you in the organization? Strongly Agree Neutral Strongly Disagree [ ] [ ] [ ] Agree Disagree [ ] [ ]

Q.7

Are you agree with the promotion based on the Performance? Strongly Agree Neutral Strongly Disagree [ ] [ ] [ ] Agree Disagree [ ] [ ]

Q.8

Are you satisfied with promotion which is provided to the employees in the

organization?

Strongly Agree Neutral Strongly Disagree

[ ] [ ] [ ]

Agree Disagree

[ ] [ ]

Q.9

Are you satisfied with the monetary reward which is provided on the basis of

performance? Strongly Agree Neutral Strongly Disagree [ ] [ ] [ ] Agree Disagree [ ] [ ]

Q.10

Talents are not just being recognized but reward as well? Strongly Agree Neutral Strongly Disagree [ ] [ ] [ ] Agree Disagree [ ] [ ]

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Q.11

Do you think rewards are used as a technique for motivating both the employees and

their family? Strongly Agree Neutral Strongly Disagree [ ] [ ] [ ] Agree Disagree [ ] [ ]

Q.12

Do you agree that monetary reward is enough instead of promotion for better

performance? Strongly Agree Neutral Strongly Disagree [ ] [ ] [ ] Agree Disagree [ ] [ ]

Q.13

Is counseling helpful in improving the performance of individuals in your

organisation? Strongly Agree Neutral Strongly Disagree [ ] [ ] [ ] Agree Disagree [ ] [ ]

Q.14

Information obtained from appraisal is being used for development and advancement

purpose? Strongly Agree Neutral Strongly Disagree [ ] [ ] [ ] Agree Disagree [ ] [ ]

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Q.15

Do you think that Feedback request should be shared with entire company? Strongly Agree Neutral Strongly Disagree [ ] [ ] [ ] Agree Disagree [ ] [ ]

81

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Websites

1. http://in.nec.com/en_IN/about/about-nec-india.html Accessed on 30-6-2013 at 11:59pm 2. http://www.naukri.com/gpw/necindia/index.html Accessed on 3-7-2013 at 1:09pm

3. http://www.nec.com/en/global/prod/nw/broadcast/index.html Accessed on 10-7-2013 at 8:05pm 4. http://www.elcina.com/industry.asp Accessed on 10-7-2013 at 10:55pm 5. http://telecommunication.indiabizclub.com/directory/4-in%202out%20remote%20control%20av%20selector_page7 Accessed on 13-7-2013 at 1pm 6. http://smallb.in/sites/default/files/knowledge_base/reports/electronics_industry_i n_india.pdf Accessed on 14-7-2013 at 6:30pm 7. http://www.eetimes.com/document.asp?doc_id=1155093 Accessed on 15-7-2013 at 7:30 am

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