Harsha Moolani BBA 3rd Year

A
Project report on
PERFORMANCE APPRAISAL
Field of management
Submitted To
DEZYNE E’COLE COLLEGE
By
HARSHA MOOLANI
Towards the partial fulfillment of 3rd
year in Bachelors
of Business Management
Dezyne E’cole College
106/10 civil lines, Ajmer
0145-2624679
www.dezyneecole.com
2016-2017

Performance Appraisal
Harsha Moolani

Acknowledgement
I would to like to express my gratitude to words
Hindustan Machine Tools (HMT) for giving me
an opportunity to work as a summer intern for
the duration of one and half month as a part of
training of our course. I express my gratitude to
all those who initiated and help me in the
successful completion of this report.
I express my sincere gratitude to Mr. Sameer
Khan, (Human Resource section) and our
faculty guide Miss. Neha Bagga for supporting
us during the project work.
I also take this opportunity to express my
indepthness to Mrs. Vinita Mathur, Principle
“Dezyne E’cole College, Ajmer” for her
corporation and affectionate encouragement. I
also Thank to my all faculty members for their
suggestions and advices.
Also I am thankful to my Parents and Family
members, who the constant source of inspiration
during the internship period and also, help me to
complete this project.
Harsha Moolani

GRADE SHEET
DEZYNE E’COLE COLLEGE
106/10 civil lines
AJMER- 305001(Raj)
Tel:- 0145-2624679
This project of MISS HARSHA MOOLANI of
BACHELOR OF BUSINESS
ADMINISTRATION of 3rd
year program of BBA
has been graded as
Thanking you
Principal
(Seal and signature)

Executive Summary
Performance Appraisal, also known as Employee Appraisal,
is a method by which the job performance of an employee is
evaluated (generally in terms of quality, quantity, cost, time).
Performance Appraisal is a part of Career Development.
Performance Appraisals are regular reviews of employees’
performance within organization. A Performance Appraisal
System evaluates the performance of employees on the
basis of factors such as, change in quantitative production,
cost, time control, managerial abilities, communications and
technological skills. After the performance evaluation, the
contributions of the employees are recognized and the
deserving employees are promoted accordingly.
Suggestions for counseling sessions are also given by the
reporting and/ or Reviewing Officers, if required.
The objective of the project was to gain an insight into the
existing System of Performance Appraisal in H.M.T. Machine
Tools Ltd. and to determine the effectiveness of the same.
The secondary source of data included- the H.R. polices &
Procedures Manual, Polices Implementation guide and the
course material provided by the H.R. and Training
Department of H.M.T. Machine Tools Ltd.
The study revealed that the Performance Appraisal System
in the company was very well structured. Different
Performance Appraisal formats were designed and
implemented keeping in mind the various level in which the
employees work in the company. The formats were based
on the Key Performance Areas (KPA’s) underlined in the job
description.

SYNOPSIS
This project was undertaken as my summer
internship at HMT machine tools, Ajmer During
the internship period of 45 days, I worked on the
topic Performance Appraisal.
The project actually focusing on
appraising the performance of employees,
identifying employee’s ability, knowledge
about managerial abilities and I have tried
explaining the things through charts, diagrams.
I reached at a conclusion that this project
is a study procedure of all activities, I undertook
to deal with the project performance appraisal
and I hope I have attendant it well as per the
knowledge and process.

RESUME
HARSHA MOOLANI
 Good command on Managerial skills,
Organizational behavior, Business law,
Management Accounting, Business
Research, Quality Management, Micro and
Macro Economics, Industry Relation and
Law.
 Good knowledge of basic computer skills like
MS power Point, MS Word, MS Excel.
 Interest in dancing and music.
 Like to interact with new persons.
 English
 Hindi
Email id:
Dezyneecole@gmail.com
Website:
www.dezyneecole.com
Phone No.: 0145-2624679
Education:
Bachelor’s of Business
Administration (BBA)
Dezyne E’ Cole College,
Ajmer (2014-2017)
12th
from DAV centenary se.
sec.school, Ajmer. (2013-
2014)
10th
from DAV centenary Se.
sec.school, Ajmer. (2011-
2012)
 Internship at HMT tools limited, India
 Doing project, presentation at college
To be a successful manager we need to focus on
the way of communication and all aspects of human
behavior. I thank Dezyne E’cole College to make
me a skilled person and make me ready for the
industry.
Management Student
Profile

CONTENT
CHAPTER – 1
 Introduction of Management.
 Introduction of the Company.
 Introduction of HMT Tools.
CHAPTER – 2
 Project of study.
 What is Performance Appraisal?
 Methods of HMT.
 Performance System of HMT.
CHAPTER – 3
 Objectives of the study.
 Stages of Performance appraisal.
 Standardized Performa and Format.
 Rating system of HMT.
CHAPTER – 4
 SWOT analysis of HMT.
 Limitations.
 Conclusion.
 Bibliography

CHAPTER – 1
 INTRODUCTION OF
MANAGEMENT.
 INTRODUCTION OF COMPANY.
 INTRODUCTION OF HMT
TOOLS.

INTRODUCTION OF MANAGEMENT
As per the studying criteria of three years of bachelors
degree of management field every student has to undergo a
practical training of45 days. According to the interest of the
student the training is a vocational training in the organization
to learn more about the working scenario of an organization
and a project by the person whom one is posted during the
training period. I had undergo a practical from HMT Machine
Tools Limited
In the present scenario the practical training is an
essential part of management stream. It helps an individual to
visualize the management practices in the theoretical aspects
in which we have taught Quality Management, Business
Research, principles of management, organization
behavior, business laws, company laws, industrial
relation, cost accounting etc.
After the completion of training period every student
have to make a training report to showcase my work, which I
had done in an organization in my training period. The project
report contain the chapters likewise, Company profile, HMT
tools, methods etc.
This project work is based on the above subjects
whom we learn in our three year degree program.
A project report is divided into two major parts the first
is Primary parts which gives a brief study about Company
profile, Product Classification etc.
The second part is Secondary Part which gives a brief
study about Research Tools, Market Study, Objectives of
Study, and Introduction of management etc.

These are the aspects which I have discussed in my
internship project work at HMT machine tools, Ajmer for 45
days.
This is the annual report which presents the aspects of
the practical training taken by me. The criteria on which I had
undertaken my training and present my project work is
“Performance Appraisal” for understanding the efficient
and better functioning of the organizations and for taking an
practical knowledge about the effective working of the
organization to enhance and BOOST up my skill set.

COMPANY PROFILE
Type – Public Sector Undertaking (PSU)
Industry- Engineering
Founded- 1953
Headquarter – Bangalore, India.
Key People- Girish Kumar (Chairman and managing director)
Products- Machine Tools, Printing Machine Tools, Tractors,
watches.
Hindustan machine tool was incorporated in 1953 by the
government of India as a machine tool manufacturing company.
Over the years diversified into watches, tractors, Printing
machine tool, metal farming process and plastic processing
machinery, CNC systems and bearings. HMT is head quartered
at Bangalore.
When India achieved independence in 1947 there was hardly
any industrial base in the country. Right from the prior HMT has
played and an important role in providing the much needed
industrial base has well as a platform for the growth and
development of the country.
CORPORATE VISION:
To be a leading global engineering conglomerate focused on
customer delight in our field of endeavor.

CORPORATE MISSION:
 To establish ourselves as one of the world’s premier
companies in the engineering field having strong
international competitiveness.
 To achieve market leadership in India through ensuring
customer satisfaction by supplying internationally
competitive product and services.
 To achieve sustained growth in the earning of the group
on behalf of shareholders.
OBJECTIVES AND GOALS
 To encourage the modernization of Indian Industry
through the supply of engineering goods and services of
world class excellence.
 To maintain technological leadership through continuous
affords to update product technology and manufacturing
methods.
 To globalize our operations by developing a mix of
international markets and businesses.
 To ensure a satisfactory return on capital employed, to
meet the growth needs and the aspirations of our
stakeholders.

 To present an active, pleasant and productive working
environment.

Introduction of HMT
HMT (International) Limited is a wholly owned subsidiary of
HMT limited, Govt. of India undertaking. HMT (1) was setup in
1974 to handle international projects and export of its parent
company and other Indian manufactures.
In 1960s the success achieved
in initial years in absorbing the
technology and in attaining
production competence far
ahead of the original plans, the
company launched a bold plan
of diversification and expansion
which resulted in the duplication
of the Bangalore unit and the
setting up of new units at HMT in Hyderabad, pinjori and
kalamassery
In 1967 recession struck the Indian engineering industry and
the consumption of machine tools dipped drastically. The
traumatic years of recession did indeed serve to bring to the
fore two latent strengths of HMT, namely, the urge to survive
and the confidence to
innovate.
The Company emerged
from the recession with
the world’s a widest range
of machine tools and
associated services under
a single corporate entity.

Actions plans firmly launched for diversification into presses
and press brakes, Printing machines, die- casting and plastic
injection molding machines that were considered to have
economic cycles that are different from those of machine tools.
In 1970s, the fructification
of all the diversification
plans as envisaged and
HMT International limited
as a subsidiary company to
channel HMTs products
and technical services
abroad and it took over machine tool Corporation at Ajmer as
its sixth machine tool unit.
In 1980s, HMT as a part of vertical integration efforts, launched
units to manufacture like CNC systems in Bangalore and Ball
Screws.
In 1990s, the formation of machine tools business group as part
of business reorganization and formation of central
reconditioning division at Bangalore.
The New Millennium (a period of thousand years) HMT formed
Machine Tools Limited as a wholly- owned subsidiary of HMT
Limited and also make the strategic plans of the subsidiary for
coordinating the holding company HMT Limited. It navigate
through the challenges of the New Millennium, HMT Machine
Tools Limited seeks strategic alliances from global leaders to
synergize its own strengths with symbiotic inputs from the
partners.
HMT pioneering spirit and cutting-edge marketing abilities
enables it to a worldwide clientele. The establishment of HMT
Limited leveraged the company’s international trading

experience. HMT markets the products through global network
that extent over 40 countries to service its customer worldwide.
HMT has a diverse clientele with more than 18000 machines in
over 70 countries including the developed ones.
The corporate strength of HMT are, It have well established
manufacturing based, strong brand equity with highly qualified
and skilled workforce and strong technology based with
extensive marketing network.
HMTs commitment to the development of the machine tools
technology is clearly reflected in the fact that HMT as many as
seven exclusive machine tool units, spread across the country.
Each super ply equipped to meet most challenging demand for
machine tools. These units are in Bangalore, Pinjore,
Hyderabad and Ajmer are all ISO 9000 certified.
HMT limited is public limited commercial organization involved
in the manufacture and sales of engineering goods as well as
project consultancy. HMT limited comprises six subsidiaries
under the ambit of holding company.
The Technology of HMT has a wide range of technologies as a
result of its diversification strategies, to be a truly multi-
technological company. R&D efforts in the technology area are
a continuous and ongoing process at the design and
development centers of HMT’s manufacturing units. In each
area of HMT’s business domain, well-established research and
testing facilities with experienced engineers to meet them are in
positions.

When HMT was founded, it dedicated itself to clear objectives:
Empowering the emergence of Indian Industry with the virtue of
being founded on a strong technical base, HMT done the role
of a one of its kind precession engineering company. HMT
leveraged its technical known how, acquired from world leaders
in machine tools, to arm a wide spectrum of industries with vital
manufacturing machinery and solutions. Strongly supported by
excellent R&D powers, a highly skilled workforce and as many
as nine exclusive machine tools units across the country.
HMT machine tool, enterprise in machine tools has been honed
to a point that it can design and develop any kind of machine.
HMT Machine Tools Limited, Ajmer.
Launching of CNC HCG 55x3000 Machines at HMT Ajmer Premises.
In the premises of HMT Machine Tools Ltd., Ajmer, on 20.12.2014 our
Chief Guest Shri B. M. Shivashankar, Managing Director, HMT Machine
Tools Limited Corporate Head Office, Bangalore Launched the Product
i.e., CNC Heavy Duty Cylindrical Grinding Machine Model HCG 55x3000
valuing Rs. 3.50 Crores and Shri K. Ravindran, General Manager
Corporate
Strengh
of HMT
Well
estalbished
manufacturing
base
Strong Brand
Equity
Units
Accredited
with ISO 9000

Marketing, HMT Machine Tools Limited, Bangalore presided over the
Ceremony. In the Launching Ceremony number of dignitaries, Guests,
Customers and Suppliers were present.
Shri B. M. Shivashankar, Managing Director in his inaugural speech
felicitated and appreciated the efforts of all the Engineers and Employees
who were associated in the development and production of this unique
Machine.
On this occasion, Shri Naveen Gokhroo, General Manager, HMT Ajmer
apprised that HMT Ajmer from ab-initio has been a “Pioneer” for
manufacturing and providing new products. This Machine is an Import
Substitution. This machine will have extensive use in Indian Railways,
Steel Industries, Printing Industries and Power Sector Industries.
Shri K. Ravindran General Manager Marketing, HMT Machine Tools Ltd.,
Bangalore, having seen the specification and features of the Machine
applauded the the efforts of MTA employees and expressed that ample
opportunity exists in the market for such a unique product.
Shri P. K. Saxena,Joint General Manager (Design) expressed that this CNC
Machine is controlled with Computerised System and is equipped with AC
Digital Drive and all other components used in the machine are the best
available in the world.

H.M.T Machine Tools Milestones
Years Unit
Division
Location State
1953 Machine Tools
I
Bangalore Karnataka
1961 Machine Tools
II
Bangalore Karnataka
1963 Machine Tools
III
Pinjore Haryana
1965 Machine Tools
IV
Kalamassery Kerala
1967 Machine Tools
V
Hyderabad Andhra
Pradesh
1969 Press Division Hyderabad Andhra
Pradesh
1971 Die Casting
Machines
Bangalore Karnataka
1972 Printing
Machinery
Division
Kalamassery Karnataka
1973 Precision
Machinery
Division
Bangalore Karnataka
1975 Machine Tools
VI
Ajmer Rajasthan
1975 H.M.T
(International)
Ltd.
Bangalore Karnataka
1985 Ball Screw
division
Bangalore Bangalore
1986 CNC Systems Bangalore Karnataka

division
1991 Central
Reconditioning
Division
Bangalore Karnataka
1999 Formation of
the Subsidiary
HMT Machine
Tools Ltd.
Bangalore Karnataka
2006 Formation of
the Bangalore
Complex
Bangalore Karnataka
2008 Merger of
Praga Tools
Ltd &
Formation Of
Praga
Hyderabad Andhra
Pradesh

HUMAN RESOURCE DEPARTMENT:
HRM is planning, organizing, directing and controlling of the
procurement. Development, compensation, integration and
maintenance of people for people the purpose of contribution to
organization, individual, social goals.
HR needs to be given a strong emphasis, as it is the quality of
human factor in his organization, which determines its
effectiveness.
The HRM department of HMT is headed by AGM(HRM). There
are 20 employees working in this department. Human
resources management strives to ensure continuous
organizational growth by nurturing the strength of employees
an providing the environment and opportunity for every
individual to raise to his/her highest potential.
HMT limited has around 11,000 employees in the corporate
level. They are divided into two groups, PS grade and WG
grade employees in the shop floor and in various office the
employees include trainees recruited into various grades. In
addition, there are directors, a chairman and MD appointed by
the govt. of India.
OBJECTIVES OF HUMAN RESOURCE IN HMT:
 To attract and retain best available young talent in the
country in engineering and other areas like finance,
marketing and personal.
 To maintain effective coordination between HRM and
other departments.
 HRM department helps in motivating the employees in
attaining individual goals and in retune will lead to attain
the organizational goals.

 A qualified applicant for specific type of job.
 To ensure the above objectives by eras of a systematic
scheme of centralized recruitment this will be regular and
effective.
SCOPE OF HRM IN HMT:
The recruitment of professional trainees in engineering and
other professional areas like finance, marketing, HR etc.
induction level of executives is at grade 3rd
(PS) for centrally
pooled requirement of units. Recruitment of senior executive at
level of corporate cadre like general manager will be as per
need of unit.

AGM (HRM)
Transport Civil &
estate
Medical
Senior engineer &
training
Deputy engineer
training
Engineer (DY.E) training
Welfare Industrial
Contract labour HRM function
HRM DEPARTMENTS
T&D
DGM (HR)

Quality
Customer
services
Technology
And R&D
Products and Outlets

Market
growth
Infrastructure
QUALITY POLICY
 To maintain QUALITY LEADERSHIP in all our
PRODUCTS & SERVICES.
 TOTAL CUSTOMER SATISFACTION through Quality
Goods and Services.
 COMMITMENT of management to Quality.
 To create a CULTURE amongst all employees towards
TOTAL QUALITY CONCEPT.
 TOTAK QUALITY through PERFORAMNCE
LEADERSHIP.
BCG MATRIX
STARS
HMT were start during
their maturity stage
1980's
???
introductory period
1960's
CASH COW
during 1990's started
declining
DOGS
started incurring
heavy loses after
2000, declining stage
Market share

CUSTOMER SERVICES
In Machines Tools:
1. Wide marketing network manned by qualified & trained
sales & services engineers.
2. Service outlets at customer doorstep in major industrial
locations.
3. Critical spare parts available at Field Offices.
4. Customer training programs on mechatronics in addition to
normal machine oriented training for machine tools.
5. Manufacturing Units supplement customer support for
tooled-up and high technology machine tools.
6. Customer Component manufacture to suit customers’
needs.
In Watches
1. Sales & Services network
manned by trained personnel
spread across the country.
2. Retail outlets even in rural areas
for customers’ convenience.
3. Company Showrooms located all
over India cater to needs of
spares.
In Tractors
1. Countrywide Sales & Services
network manned by qualified &
trained personnel.
2. Service Camps organized
frequently for the benefits of
customers.

Technology and R&D
HMT has imbibed a wide range of technologies as a result of its
diversification strategies, to be a truly multi-technology company.
The list includes, though not limited to, the following technologies:
 High speed machining
 Precision machining
 Computer Numeric Controls
 Computer Integrated Manufacture
 Flexible Manufacturing Systems/Modules/cells
 Metal Forming Including Die casting & Plastic processing
 Horology
 Farm Mechanization (Tractors & Implements)
R&D efforts in the above technology areas are a continuous and
ongoing process at the Design & Development Centers of all HMT’s
manufacturing units. In each area of HMT’s business domain, well –
established research & testing facilities with experienced engineers
to man them are in position. Extensive use is made of in house
CAD facilities for designing products.
 Over a 100 new types/Variants of machine tools
 Over a 1000 new watches models
 Several variants of tractors to suit farmer’s needs
HMT’s R&D is committed to provide the best to the customer in
terms of contemporary technology and contemporary designs at
competitive prices.
 CNC machines for Metal Cutting & metal forming
 CNC coordinates measuring machines
 Heat Treatment facilities
 Precision measuring & inspection facilities

Chapter – 2
PROJECT STUDY
 Project study.
 What is performance appraisal?
 Methods of HMT.
 Performance system in HMT.

PROJECT STUDY
“As an intern, I had done my internship from HMT
machine tools limited, Ajmer. The internship was of 45days
in which I had worked on the performance appraisal of the
organization. The internship period was started from 03-06-
2016 to 17-07-2016. I had worked under the guidance of
#name. The study has been conducted for gaining
particular knowledge about the performance appraisal
system of HMT, that how the organization works on
performance appraisal for the betterment of their
employees. During this period I had learned many things
regarding performance appraisal. The study helped me to
know the need and importance of performance appraisal
and why it is necessary for the organization. Under this
internship I had also learned some different kinds of tools
and techniques of performance appraisal. As an intern it
was great experience and a great opportunity as well,
because this helped me to develop my knowledge and
skills and make me future ready. In the beginning I had
faced some difficulties for understanding the working
criteria of the company but after understanding the
working criteria of the organization it was not that much
tough. The study also helped me to understand the
working environment of the organization”.

WHAT IS PERFORMANCE APPRAISAL?
Performance Appraisal, also known as Employee Appraisal, is
a method by which the performance of an employee is
evaluated (generally in terms of quantity, quality, cost, and
time). The roots of Performance Appraisal can be found in
Frederick Winslow Taylor’s time and motion study.
Performance Appraisal is part of career Development.
Performance Appraisal is a regular review of employee’s
performance within organizations.
Aims of Performance Appraisal
 Give feedback on performance to employees.
 Identify employee training needs.
 Document Criteria used to allocate organizational rewards.
 Form a basis for personnel decisions: salary increases,
promotions, disciplinary actions, etc.
 Provide the opportunity for organizational diagnosis and
development.
Performance
• The action or Process of performing a task
or function.
Appraisal
• A Formal assessment, typically in an
interview, of the performance of an
employee over a particular period.
• Evalution,rating, judgement etc.

 Facilitates communication between employee and
administration
PERFORMANCE APPRAISAL METHODS
Performance Appraisals take many forms. Written essays, the
simplest essay method, is a narrative assessing an employee’s
strengths, weaknesses, past performance, potential and
provides recommendations for improvement.
Each method of performance appraisal has its strengths and
weakness may be suitable for one organization and non-
suitable for another one. As such, there is no single appraisal
method accepted and used by all organizations to measure
their employees’ performance.
•Ranking Method
•Graphic Rating Scale
•Forced choice Methods
•checklist Methods
•Essay Method
Traditional
Method
•Management by Objectives(MBO)
•AssessmentCentres
•360- degreeappraisal
•Human ResourceAccounting
Method
Modern
Method

Types of Performance Appraisal Methods include:
1. Methods based on Traditional Standards:
 Ranking Method: It is the oldest and simplest formal
systematic method of performance appraisal in which
employee is compared with all others for the purpose of
placing order of worth. The employees are ranked from
the highest to the lowest or from the best to the worst. In
doing this the employee who is the highest on the
characteristic being measured and also the one who is
lowest, are indicated. Then, the next lowest between next
highest and until all the employees to be rated have been
ranked. Thus, if there are ten employees to be appraised,
there will be ten ranks from 1 to 10.
Graphic Rating Scale:The Graphic rating scale is one of
the most popular and simplest techniques for appraising
performance. It is also known as linear rating scale. In this
method, the printed appraisal from is used to appraise each
employee.
 Forced Choice Method: Under this method, the rater is
forced to answer the ready-made statements as given in
the blocks of two or more, about the employees in terms in
terms of true or false. Once he is done with the list, it is
forwarded to the HR department for the final assessment
of the employees.
 Checklist Method: A checklist of employees traits in the
form of statement is prepared where the rater put a tick
mark in “yes” or “no” column against the trait checked for
each employee. Once the checklist gets completed the
rater forwards to the HR department for the final
evaluation of the employees.

 Essay Method: Under this method, the detailed
description of the employee performance is written by the
rater. The performance of an employee, his relations with
other co-workers, requirements of training and
development programs, strengths and weakness of the
employee, etc. are some of the points that are included in
the essay. The efficiency of this traditional method of
performance appraisal depends on the writing skills of the
rater.
2. Method based on Modern Method:
 Management by Objectives: This concept was
introduced by Peter Drucker in 1954 who named MBO
and self-control. It is an effective way it is also known as
goal setting approach to appraisal. In this process the
supervisor and subordinate members jointly identify the
common goals of the organization and set the areas of
the responsibility of each individual in terms of results
expected from that person. These measures are used
for operating the unit as well as for appraising the
performance of the employees.
 Assessment Centre Method: This Method was used
for the time in 1930 by the German army. This method
tests a candidate in different social situations using a
number of assessor and procedures. The performance
of an employee an also his potential for a new job is
evaluated in this method by assessing his performance
on job related simulations.
 The 360 degree Appraisal: The 360 degree method of
performance appraisal is used to make the appraisal
process more transparent, objective and participate. It

introduced the concept of self-appraisal subordinate’s
appraisal, peer appraisal and appraisal by customers. It
is called a 360 degree method because it involves the
evaluation of an employee by persons above him,
below him and alongside him
Benefits of Performance Appraisal
Perhaps the most significant benefit of appraisal is that, in the
rush and bustle of daily working life, it offers a rare chance for a
supervisor and subordinate to have “time out” for a one-on-one
discussion of important work issues that might not otherwise be
addressed. Almost universally, where performance appraisal is
conducted properly, supervisors and subordinates have
reported the experience as beneficial and positive.
Appraisal offers a valuable opportunity to focus on work
activities and goals, to identify and existing problems, and to
encourage better future performance. Thus, the performance of
the whole organization.
For many employees, “Official” appraisal interview may be the
only time they get to have exclusive, uninterrupted access to
their supervisor, said one employee of a large organization
after his first performance appraisal,” In twenty years of work,
that’s the first time anyone has ever bothered to sit down and
tell me how I’m doing.”
The value of this intense and purposeful interaction between a
supervisors and subordinate should not understand.

Motivation and Satisfaction
Performance appraisal can have a profound effect on levels of
employee motivation and satisfaction – better as well as for
worse.
Performance appraisal provides employees with recognition for
their work efforts. The power of social recognition as an
incentive has been long noted. In fact, there is evidence that
human beings will even prefer negative recognition in
preference to no recognition at all.
If nothing else, the existence of an appraisal program indicates
to an employee that the organization is genuinely interested in
their individual performance and development. This alone can
have a positive influence on the individual’s sense of worth,
commitment and belonging.
The strength and prevalence of this natural human desire for
individual recognition should not be overlooked. Absenteeism
and turnover rates in some organization might be greatly
reduced if more attention were paid to it. Regular performance
appraisal, at least, is a good start.
Training and Development
Performance appraisal offers an excellent opportunity –
perhaps the best that will ever occur – for a supervisor and
subordinate to recognize and agree upon individual training and
development needs.
During the discussion of an employee’s work performance, the
presence or absence of work skills can become very obvious –
even to those who habitually reject the idea of training for them!

Performance appraisal can make the need for training more
pressing and relevant by liking it clearly to performance
outcomes and future career aspiration.
From the point of view of the organization as a whole,
consolidation appraisal data can from a picture of the overall
demand for training. This data may be analyzed by variables
such as sex, department, etc. In this respect, performance
appraisal can provide a regular and efficient training needs
audit for the entire organization.
Recruitment and Induction
Appraisal data can be used to monitor the success of the
organization’s recruitment and induction practices. For
example, how well are the employees performing who were
hired in the past two years?
Appraisal data can also be used to monitor the effectiveness of
changes in recruitment strategies. By following the yearly data
related to new hires (and given sufficient numbers on which to
base the analysis)it is possible to assess whether the general
quality of the work force is improving staying steady ,or
declining.
Employee Evaluation
Thought often understated or even denied evaluation is
legitimate and major objective of performance appraisal.
But the need to evaluate (i.e., to judge) is also an ongoing
source of tension, since evaluative and developmental priorities
appear to frequently clash. Yet at its most basic level,
performance appraisal is the process of examining and
evaluating the performance of an individual.

Though organizations have a clear- some would say a duty- to
conduct such evaluations of performance, many still recoil from
the idea. To them, the explicit process of judgment can be
dehumanizing and demoralizing and a source of anxiety and
distress to employees.
It is been said by some that appraisal cannot serve the needs
of evaluation and development at the same time; it must be one
or the other.
But there may be an acceptable middle ground, where the need
to evaluate employees objectively, and the need to encourage
and develop them, can be balanced.
Performance Appraisal System in
H.M.T Machine Tools Ltd.
Introduction
An accepted system of Performance Appraisal is a great asset in the
development of the human resources in an organization. It helps assess
its managerial strengths and weaknesses. Such a system should also
work as an effective tool of growth for the individual as well as contribute
to an increasing recognition of identify between the organization and the
people in it. The Performance Appraisal System in H.M.T. Machine
Tools Ltd. has been evolved with this in view.
Objectives
a) To make known the performance- base of the company to the
employees to ensure an objective assessment of employee’s
performance and potential on this performance appraisal.
b) To establish an objective basis for the differing levels of
performance and to identify executives with potential to grow in the
organization.

c) To counsel the employees appropriately regarding their strengths
and weakness and assist in developing them to realize their full
potential in line with the Company’s objectives and goals.
Employees Classification
The Employees in H.M.T. Machine Tools Ltd.Have been classified under
to categories.
Workmen
The workmen in H.M.T. Machine Tools Ltd. (Factory) have been further
categorized into,
 Direct workmen
 Indirect workmen
Direct Workmen
The direct workmen are the ones who work directly on the machines and
produce standard hours. Standard hour, as the name suggest is the
fixed time required to produce a job in hand and that too efficiently.
Workmens Officers

Every month a direct workman is required to produce a minimum of 85
Standard Hours with efficiency.The direct workmen get direct incentives
besides other benefits.
Indirect Workmen
The indirect workmen work in association with the direct workmen. They
operate in indirect areas in the company premises like offices,
commercial departments.
The indirect workmen are further classified into,
 Ministerial Staff
They are the ones working in the offices/ departments.
 Shop floor Indirect Workmen
The shop floor indirect workmen work in the factory at the shop floor
level.
NOTE: The Direct as well the Indirect Workmen belong to the “WG
Grade”.
Workmen’s Grading System at H.M.T. Machine Tools Ltd.
Level Grade
1 WG-I(Lowest)
2 WG-IA
3 WG-II
4 WG-IIA
5 WG-III
6 WG-IIIA
7 WG-IV
8 WG-IVA
9 WG-V
10 WG-VA
11 WG-VI
12 WS-I
13 WS-II(Highest)
In The above Table,

WG stands for: Worker Scale
A person gets promoted from WG to WS grade when,
i. She/he has spent 7 years in the WG grade.
ii. She/he has decided to stay back in the worker grade instead of
being promoted to the PS (Pay Scale) grade.
It is important to note that the WG category follows the Promotion Policy
norms irrespective of the vacancy will be a constraint. Only 20% of the
eligible employees during the year are considered for promotion every
year from WG to the PS category.
Officers
The officers in H.M.T. Machine Tool Ltd. Are the employees who lie in
the grades PS-II to PS-X.?
Officer’s Grading System at H.M.T. Machine Tools Ltd.
Level Grade Designation
1 PS-I(Lowest) Junior Supervisor
2 PS-II Supervisor
3 PS-III Senior Supervisor
4 PS-IV Deputy Manager
5 PS-V Manager
6 PS-VI Assistant General
Manager
7 PS-VII Deputy General
Manager
8 PS-VIII Joint General
Manager
9 PS-IX General Manager
10 PS-X(Highest) Chairman &
Managing Director
Note: The DirectWorkmen are paid based on the STANDARD
HOURS produced.
For IndirectWorkmen the appraisal system based on MERIT
RATINGS.

Chapter – 3
 Objectives of the study.
 Stages of performance
appraisal.
 Standardized Performa and
format.
 Ratings of HMT.

OBJECTIVES OF THE STUDY
 To study the overall working of the organization and to
study the performance appraisal structure.
 To study the efficiency of the working management of the
company for appraising their performance.
 To study the need and importance of performance
appraisal in organization.
 To study the tools and techniques which are used for the
performance appraisal?
 To analyze the working efficiency of the company.
 To study the process of performing a task and functions.
 To identify executives with potential to grow in the
organization.

STAGESOF PERFORMANCE APPRAISAL
The Performance Appraisal, in general, consists of the following
stages-
1. Appraisal Ratings
Individual job performance factors including separate weightages for
Supervisory and Executive group is given below:
A. Job Performance Factors
S.NO. Job
Performance
Factor
Supervisory Executive
1 Job Knowledge 6 4
2 Quality of work 6 4
3 Target
Fulfillment
6 4
4 Cost/Time
control
6 4
5 Safety
Consciousness
6 4
TOTAL 30 20
B. ManagerialAbility Factors
S.NO. Managerial
Ability Factor
Supervisory Executive
1 Planning & org. 2 2
2 Problem
Analysis &
Decision Making
2 4
3 Inter-personal
skills
2 4
4 Communication
skills
2 3
5 Self-Motivation 2 2
6 Commitment 2 3
7 Responsiveness
to change
2 3
8 Developing 2 3

subordinates
9 Managementof
Human
Resources
2 4
10 Positive
Discipline
2 2
TOTAL 20 30
Factor Score
S.no Factor Supervisor Executive
1 Job
performance
factors (A)
30 20
2 Managerial
ability factors
(B)
20 30
Total(A+B) 50 50
Each of these factors has to be assessed on a 5- point scale and
multiplied by the specific weightage from each factor. Assessment of
each factor will be done separately by the Reporting Officer and the
Reviewing Officer.
Reporting and Reviewing Officers
The Reporting Officer shall normally be the immediate superior of the
assessed. The Reviewing Officer should be one step above the
Reporting and the reviewing officers are in the same group.
The Appraisal forms should be filled in by the Reporting Officers
themselves and they should not take any assistance for getting the
forms filled in as alleged in certain cases.
When the appraisals concern the level of A.G.M. and the below,
Executive Director (E.D.) may complete the review and send to the
authorities concerned for record.Where the appraisals concern the level
of D.G.M., review should be managing director (C & MD) for information.

Where the appraisal concern the level of J.G.M. and above, they should
be sent to the C & MD for review.
Total Appraisal Score
In arriving at the total score, the following weightages are given to the
assessment of the Reporting/ Reviewing Officers:
Reporting Officer: 60%
Reviewing Officer: 40%
The total appraisal score for each of the Appraises is arrived at by
applying the weightages as given in the following example:
Officer TotalFactor
score
Weightage Weighted
Score
Reporting
Officer
200 60% 120
Reviewing
Officer
150 40% 60
TOTAL
APPRAISAL
SCORE
180
For the purpose of consideration for promotion, the Total Appraisal
Score will be divided by 5 and entered in the Assessment sheet for
promotion purpose. In the instant example provided above, this will be
36. The total Appraisal Score will range between 50 and 250, since a
total number of 50 weightages is being adored on a 5- point scale.
2. General comments and overall assessment
A general descriptive assessment is provided for along with a
Development Plan. In this, the reporting as well as Reviewing Officer will
mention the contribution/ achievements, strengths and weakness of
appraise, the areas in which he/she needs improvement and the plan of
action thereon. A final overall assessment should be arrived at as under.

Totalappraisalscore Rating
200 and above Outstanding
180 and above Very good
150 and above Good
120 and above Marginal
Below 120 Poor
3. Review Discussion
A review discussion between the appraise and the Reporting
Officer shall take place after the appraisal of the employee is
completed both by the Reporting and Reviewing Officers.
During the review discussion, the appraiser should give a gist
of the appraises and counsel him appropriately on his areas of
strengths and weaknesses. He should specifically indicate the
lines on which the appraise should make improvements and
give him the proper guidelines. The response of the appraise
should be recorded thereafter. If the Reporting Officer the
committees shall also review the ratings of low performers, with
special reference to the constraints, if any, faced by the
appraisee(s). The committee(s) may also recommend
developmental training and/or change of job to enable such low
performers to improve their performance.
4. Follow up action & Interpretation
The Personnel Department in consultation with the Head of the
Department concerned shall take the necessary follow-up
action.
The Interpretation of the Personnel Directorate shall be final in
report of the system of Performance Appraisal.

STANDARDIZED PERFORMA AND FORMAT
USED TO MEASURE THE PERFORMANCE BY
HMT
Name of the PSU
Name of the employee
Designation
Ticket No./Department
Division/Unit
Scale of pay
Qualification
Academic
Professional
Date of Birth
Date of Joining H.M.T.
Date of retirement
Present unit/location
(With date)
Positions Held
(To be filled by the Appraisee)
From To Unit/Location Position
Held
Key
Responsibilities

PART: PERFORMANCE
A.PERFORMANCE PLAN AND MID YEAR
REVIEW
Key performance Areas (KPA’s) together with measures/indicators and
maximum marks are to be jointly agreed upon between the Appraiser
and the Appraiser at the beginning of the review period and then filled
ion the format given below:
Key
Performanc
e Areas
Measures/Indicator
s
Maximu
m marks
Actual
Achievement
s (Given by
Appraisal)
Review
(By
Appraiser
)
Signature of the Appraisee Signature of the
Appraiser

B. Year- End Performance Review
The KPA’s and measures,after incorporating changes, if required, will
be recast from the Previous Page after the mid-year review and the
year- end review will be carried out by the Appraiser.
Key
Performa
nce Areas
Measures/Indic
ators
Maxim
um
marks
Actual
achieveme
nts
(By
Appraisee)
Review
(Apprais
er)
Marks
Awarded
(By
Appraiser)
….
Total Performance marks for the year= total marks obtained*50=
__________
Total maximum marks
Signature of appraise Signature of the
Appraiser

Performance Review Sheet
Comments on Performance and Review discussions if any, At the time
of mid- year review, By Appraiser
Signatureof the Appraiser

Competencies
This Section consists of Functional/Technical and Managerial
competenciesrequired for successfulperformance inon the jobs.
S.No. Competencies Ratings(1-5)
1 Business environment knowledge:
Knowledge and understanding of
economic,legal, socio-politicaltrends.
2 Professionspecific knowledge:
Knowledge related to professionas a
whole. Knowledge which is determined by
authority and responsibilityof other
positions,knowledge of mission, value
and standard operating policies.
3 Making business decision:Use business
related data to supporteffective and
timely business decisions.
4 Vision: Develop a vision for the future of
the organization.
5 Systematic thinking: Identifying
connections between situations that are
not obviously related.
6 Networking: To cultivate an informal
network this may help to get things done.
7 Organizing resources:Ensure that all the
financial, personal and/or other resources
are in place to meetthe needs.
8 Inspire people:To generate a sense of
purpose for the work done by the
organization through instilling enthusiasm,
loyalty and commitmentamong team
members at all levels of the organizations.
9 Team Player: To contribute to group
objectives in a team environment through
co-operating and interacting well with
others.
Total performance marks for the year= total of all the ratings*20=
__________
(Prorated to 20 marks)
45

Values
This section consists of values which are to be demonstrated in day to
day activities.
S.NO. Competencies Ratings (1-5)
1 Fairness: Decisions are made objectively, free
from patronage and reflectthe just treatment of
employees and applicants.
2 Transparency: There is open communication
about every aspectof managerial decisions
which concern people.
3 Trust: Trustworthiness leading to confidence.
4 Candor: Give and receive constructive
criticism/suggestions
5 Collaboration: Be open in sharing information
and in seeking suggestions/opinions.
6 Involvement: Be dedicated and committed to
work.
7 Flexibility: Ability to participate and adapt to
changing circumstances using sound judgment.
8 Willingness to accept challenge: Be willing to
experiment.
9 Discipline:Adherence to accepted norms.
10 Ethical behavior: Demonstrate honesty and
sincerity in every action.
Rating on values======Total of all the ratings*15=____________
25
(Prorated to 15marks)
Signature of the Appraiser

Performance & Potential Profile
(Final marks scored)
Part Component Total marks Marks scored
1 Performance 50
2 Competencies 20
3 Values 15
4 Potential 15
Total 100
Name of the Appraiser
Signature:
Designation:Date
Commentsof ReviewingOfficer:
Signature:
Name:
Designation:Date
Commentsof AcceptingAuthority:
Signature:
Name:
Designation
Date

Potential Appraisal
This section consists of Attributes which are to be demonstrated in day
to day activities.
S.NO Generic Attributes Ratings(1-5)
1 Leadership abilities: demonstrate ability for guiding
collective decisionmaking, for succession
planning, crisis management and ability to take
risks.
2 Team building: demonstrate effectiveness in re-
organizing his/her own department.
3 Ability to build a strategic vision: demonstrate
ability to manage changes.
4 Business sense: Commitmentto bottom-line
results by enhancing revenue generation by
addressing interest of customers and
stakeholders.
5 Communication skills: Communicate ideas and
information effectivelyand market key points
effectivelythrough public speaking and
presentations.
Rating of potential=======Total of all the ratings*15=
25
(Prorated to 15 marks)
Signature of the Appraiser

Assessment of Training & Competence
Development Needs
This sheet should be sent to Head of the HR Departmentby the
Accepting Officerfornecessary action at their end.
1. Name of the Appraisee:
2. Designations:
3. Department:
4. Ticket No. /Section No.
Please indicate the training and competence developmentneeds of the
appraisee and his/her potential. Specifythe areas in which the person
needs counseling.
Name of Appraiser:
Signature:
Designation:
Date
By the Reviewing Authority:
Signature:
Designation:
Date
By the Accepting Authority (if considered necessary):
Signature:
Designation:

H.M.T. Limited
PERFORMANCE APPRAISAL FOR
EXECUTIVES
_________________________________________________________
_______
Units Period of Appraisal: 1 April xxxx to 31
march xxxx
1. Name:
2. Ticket No:
3. Date of Birth:
4. Qualifications:
5. Department:
6. Date of Joining:
7. Grade on joining:
8. Present Grade: PS:
9. Designation:
10. Date of last
promotions:
11. SC/ST:
JOB DESCRIPTION:
_________________________________________________________
_______

APPRAISAL RATING
A. JOB PERFORMANCE FACTORS
JOB KNOWLEDGE:Thorough knowledgeof his and related jobs
regardless ofcomplexities
Weightage:4
Scale Points Factor Score=Scale
Point * Weightage
1 2 3 4 5
Reporting officer
Reviewing Officer

QUALITY OF WORK: Generalexcellenceof output,method and
systems
Weightage:4
Point * Weightage
1 2 3 4 5
Reporting officer
Reviewing Officer
TARGET FULLFILLMENT:Achievementof targets and assigned
jobs
Weightage:4
Point * Weightage
1 2 3 4 5
Reporting officer
Reviewing Officer

COST/TIME CONTROL: Optimum utilization of available
resource/time
Weightage:4
Point * Weightage
1 2 3 4 5
Reporting officer
Reviewing Officer
SAFETY CONSCIOUSNESS:Contributingto safety in work
environment;Safety guidance and counseling to subordinates
Weightage:4
Point * Weightage
1 2 3 4 5
Reporting officer
Reviewing Officer

B: MANAGERIAL ABILITY FACTORS
B1
PLANNING & ORGAINZING: Ability to anticipate work need and
match them with plans of action
Weightage:2
Point * Weightage
1 2 3 4 5
Reporting officer
Reviewing Officer
B2
PROBLEM ANALYSIS & DECISIONMAKING: Ability to identify
problemsand take consistently sound,timely & optimaldecisions.
Weightage:4
Point * Weightage
1 2 3 4 5
Reporting officer
Reviewing Officer

B3
INTER-PERSONAL SKILLS: Ability for effective lateral co-ordination
and verticalrelationship and promoteco-operation understanding.
Weightage:4
Point * Weightage
1 2 3 4 5
Reporting officer
Reviewing Officer
B4
COMMUNICATIONSKILLS: Quick grasp & clarity of thoughtat all
times; sharing relevantinformation with all concerned
Weightage:3
Point * Weightage
1 2 3 4 5
Reporting officer
Reviewing Officer

B5
POSITIVEDISCIPLINE: Effective leadership in contributing to
positive discipline in the company
Weightage:2
Point * Weightage
1 2 3 4 5
Reporting officer
Reviewing Officer
C.FINAL OVERALL ASSESSMENT
Total
Factor
Score
Weights Weighted Score
Reporting Officer 60%
Reviewing Officer 40%
TOTAL APPRAISAL SCORE
D. FINAL APPRAISAL RATING
Poor
(Below 120)
Marginal
(120 &
above)
Good
(150 &
above)
Very Good
(180 &
above)
Outstanding
(200 &
above)

E. INTEGRITY
Above Board Open to doubt Supporting
evidence,if
open a doubt
Reporting
Officer
Reviewing
Officer
Reporting Officer
Signature:
Name:
Designation:
Reviewing Officer
Signature,Name, Designation
F. GENERAL COMMENTS (Please be descriptive)
What are the strengths and weaknessof the Appraise?
Reporting Officer Reviewing Officer

G. CONTRIBUTION
G1
Please list out contributionsand achievements,if any, of the
Appraise duringthe year.
G2
Instances,if any, of poor performance,negative behavior.

Chapter – 4
 SWOT analysis of HMT.
 Limitations.
 Suggestions.
 Conclusion.

SWOT ANALYSIS OF HMT
STRENGTH:
 It is well established manufacturing base.
 HMT Strong Brand Equity
 High Qualified and skilled workforce
 Strong Technology base
 Extensive Marketing network
WEAKNESS:
 Weak Financial Risk profile with continue losses
 Products are not updated according to market scenario
 Large working capital requirements and liquidity position
 Stressed debt coverage indicators
OPPORTUNITIES:
 The demand for its product is growing rapidly both in domestic
and international market.
 Capitalize on attractive segments.
 Leveraging brand equity of HMT to products such as sports
gear, personal accessories.
TREATS:
 Worldwide declining in the production.
 Significant competition.
 Competition successfully exploited the lifestyle segmentation.
Which HMT failed too?
 It’s started incurring losses since the year 2000.

LIMITATION
It is my 1st Internship Project so due to curiosity, I put my
whole effort in this project. But still is certain Limitation while
doing the work some of the limitations:
1. The major limitationof this Project work is less time for
internship. In this minimum time period of 45 days, or
cannot analyze the organizationhuman resources
management.
2. The Project has been working upon the existing
framework. The company has alreadydecided upon the
target thus limitingof the area of study.
3. In some, cases the trainee are not giving us a proper
reply of questionnairebecause the informationare
confidentialfor them.
4. For HMT MachineTool ltd. Ajmer Products total market
consists of IndianIndustrial as well as customers. So due
to time & financiallimitationswas not possible to
control with them.
5. HMT being a Public Sector enterprise has obligations
towards other government enterprise so some of the
recommendationsto increase profitabilitycannotbe
implemented.

CONCLUSION
An effective and efficient system of performance appraisal is
the one which is completed in all respects well and that too
within the stipulated time frame. It is equally important that the
appraisal is carried out judiciously and objectively.
The major strength of the performance appraisal lies in the
“review discussion”. Therefore, the reporting officer should be
fully aware of its importance and must carry out the discussion
with utmost honesty and sincerity.
Efforts must be made to conduct workshops on the
performance appraisal system and promotion policy of the
organization; with a view to clarify doubts and also to create a
general awareness, backed up by sound and clearly
understood conceptual values.
Finally, positive cooperation and well – knit responses are
required for effective implementation and gainful utilization of
the performance appraisal system.

Bibliography
1. H.M.T. Machine Tools Ltd.,”Human resource Department-
Policies and procedures manual”.
2. Dr. k. Jayakumar and Prof. Nandagopal V.B. (2008),
“Performance Management and Appraisal” , Study
material- PGDHRM- Sikkim Manipal University.
3. U.S. Department of the Interior, “Performance Appraisal
Handbook”.
4. www.hmtindia.com
5. www.hmtmachinetools.com
6. www.wikipedia.com/performance appraisal
7. www.performance –appraisal.com/intro.hmt

Harsha Moolani BBA 3rd Year

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Harsha Moolani BBA 3rd Year