A Project Report On

“PERFORMANCE MANAGEMENT”

IN PARTIAL FULFILLMENT OF PAPER NO. 5.2 OF BA (VS)

HUMAN RESOURCE MANAGEMENT
COLLEGE OF VOCATIONAL STUDIES (2019-202O)

SUMITTED TO: - SUBMITTED BY: -

Dr. NEETI HOODA SOMYA SHARMA

BA(VS) HRM 5th Semester

Roll No- 2K19/HRM/67

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 CERTIFICATION
This is to certify that SOMYA SHARMA student of BA(VS) HRM 5th Semester has prepared her
project report under my guidance for the fulfillment of degree of BA(VS) Human Resource
Management from College of Vocational Studies.

Signature
Dr. NEETI HOODA

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 ACKNOWLEDGEMENT
I acknowledge with gratitude and appreciation, my indebtedness to my mentor & guide, Ms.
Neeti hooda for allowing me to work on a very intrinsic topic, “Performance Management”. I
also thank her for the ideas and basic concepts she delivered and shared with me, as she helped
me a lot in accomplishing this project of mine.

(somya Sharma )

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 Preface
―The future of Performance Management lies in placing ownership in the hands of employees
and teaching the managers to coach rather than police‖. Among all human resource management
functions, today, performance management is considered the most crucial, as only through this
developmental function, an organization can sustain in the long run. Moreover, performance
management systems provide essential inputs to organizations to take crucial Human Resource
decisions, and also help organizations to align their business goals with the performance of the
employees in order to attain increased efficiency, productivity and profitability.
In India, performance management is an area of immense personal interest, it has recently gained
prominence as a topic of discussion, with many companies initiating big as well as small changes
to the way they approach the measurement and management of performance.

It was with this background that I undertook this study, to better explore, understand and analyse
the evolving contours of performance management in India. I hope that this report, which
summarises my findings from an industry survey and multiple researches of industry leaders,
will allow you to explore the following:
➢ In detail study of concept and process performance management
➢ Performance management as carried out at ‗Tata Motors‘ with emphasis on the case of
Tata Nano
➢ Research study of procured data and analysis of the same
➢ Conclusion, suggestions and feedback on my findings

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5
 TABLE OF CONTENTS

[Link] TOPIC PAGE. NO.

CHAPTER – 1: INTRODUCTION 6-49

1.1 Concept of Performance Management 7-25

1.2 Company Profile 26-46
1.3 Product Profile 47-49

CHAPTER – 2: DEVELOPMENT OF MAIN THEME 50-58

2.1 Need of the study 51

2.2 Objectives of the study 52
2.3 Scope of the study 53
2.4 Limitations of the study 54-55
2.5 Literature Review 56-58

CHAPTER – 3: ANALYSIS & INTERPRETATION 59-92

3.1 Research Methodology 60-62

3.2 Analysis & Interpretation 63-88
3.3 Findings 89-90
3.4 Suggestions 91
3.5 Conclusion 92

APPENDIX 93-97

Bibliography 93
Questionnaire 94-97

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5

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Chapter-1

Introduction

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 1.1 CONCEPT OF PERFORMANCE MANAGEMENT

OVERVIEW OF PERFORMANCE MANAGEMENT

1. WHAT IS PERFORMANCE MANAGEMENT?

Performance Management is a process of determining, assessing, and sustaining the

performance of all the aspects of an organization such as processes, departments, and human
resource. In other words, performance management is the systematic analysis and measurement of
overall performance of an organization.
The main aim of this process is to improve organizational performance over time. Employees
are valuable assets of an organization. This is because the success of organisations largely depends
on the performance of their employees; poor performance is detrimental to the growth of the
organisations. Thus, it is important for organisations to manage the performance of their
employees and take continuous measures to improve their performance in order to attain sustained
growth. Performance management is of utmost importance for an organisation in order to assess
its progress. Thus, it is essential for the organisation to measure its performance periodically.
Measuring performance management requires careful supervision and thoughtful consideration.
Any accuracy in performance management may result in the failure of implementation of
improvement efforts.

In order to improve overall organizational capability, the performance management approach

should also focus on improving individual capabilities. In the context of Human Resource
Management, performance management aims at improving, developing and managing employees‘
performance and aligning them with organizational objectives. By managing employee
performance, an organisation can maintain a pool of efficient employees. In a nutshell, as a
forward-looking approach, performance management is primarily concerned with developing
people in such a way that sustained growth of an organisation can be ensured.

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 2. OBJECTIVES OF PERFORMANCE MANAGEMENT

➢ To emphasise on career planning and future growth opportunities for employees.

➢ It is ensure to raise the efficiency and productivity of employees;

➢ To encourage belongingness, team spirit and devotions among employees with the job.

➢ To provide feedback about HR planning and potentialities to implement the planning facts.

➢ To identify systematically the need and requirements of some learning and training
aspects.

➢ To promote better and high work culture in the organisation.

➢ To focus more on systems approach to perform appraisals rather than to make any
formalities.

➢ To foster a positive relationship between managers and employees through a two way
communication process.

➢ To appreciate, recognise and to give reward and compensate employees for achievement
of performance objectives successfully in a more objective, transparent and justified way.

3. AIMS OF PERFORMANCE MANAGEMENT

The overall aim of performance management is to establish a high performance culture in which
individuals and teams take responsibility for the continuous improvement of business processes
and for their own skills and contributions within a framework provided by effective leadership.

Its key purpose is to focus people on doing the right things by achieving goal clarity.

The various other aims of performance management are as follows:

➢ Empowering, motivating and rewarding employees to ensure their best efforts and
performance.

➢ Ensuring that the employees emphasize on doing the right tasks at the right time.
➢ Ensuring effective alignment of individual goals along with those of the organization.

➢ Ensuring proactive resourcing and management of employee performance against agreed

performance objectives and accountabilities.
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 ➢ Facilitating the linking of job performance to the achievement of the organization‘s
corporate strategy and service plans.

➢ Facilitating the alignment of individual goals and objectives with those of the tam,
departments/divisional and corporate plans.

➢ Ensuring a systematic process and behaviours by which managers manage the performance
of their people so as to deliver a high-performance organization.

➢ Ensuring maximization of the employee potential and capabilities.

4. HISTORY OF PERFORMANCE MANAGEMENT

Performance management became critical during the expansion of business and industry in the
1920s. With companies' goals to maximize mass production, operational efficiency became the
focal point. Employee development and engagement were considered less important at this point.

In the 1950s, personality-based performance management systems started gaining adoption.

Employees would be rated on traits such as job knowledge, sincerity, and loyalty; however, it was
soon realized that measuring the performance of workers based on inherited traits had nothing to
do with their productivity in the workplace. As a result, companies began to look for better ways
to assess their employees.

In the 1960s, annual formal appraisals began to focus on what an individual might be able to
achieve in the future. In addition, there was more focus on goals and objectives, and the term
‗management by objectives‘ became popularized.

The 1970s was fraught with court cases due to the subjectivity and biases with performance
appraisals, which led to the introduction of psychometrics and rating scales in performance
management. In the 1980-1990s, the multi-rater feedback system (also termed 360-degree
feedback) became popularized, although it‘s worth noting that multi-rater feedback was used prior
to the 1980s by a few companies, including Esso Research and Engineering Company which was
one of the first organizations to use multi-rater feedback in the 1950s.

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The 1990s and early 2000s saw a shift of focus to employee motivation and engagement. In this
modern day, companies are now ditching the annual performance reviews and choosing more
continuous feedback-driven practices. While the importance of feedback cannot be understated, is
it simply enough to implement more frequent feedback and expect immediate changes in employee
productivity and retention? In short, the answer is no - but it's definitely a good start.

5. IMPORTANCE OF PERFORMANCE MANAGEMENT

➢ It Provides a Look into the Future: By consistently monitoring and managing workplace
performance, leaders can see potential future problems. Like with any type of issue, early
detection is key. The earlier problems are confronted the less effect that they will likely
have. By acting before the potential problem becomes an actual problem, the organization
can prevent unnecessary trouble.
➢ Helps Create Development and Training Strategies: The earlier a problem is detected,
the better. One of these problems could be that employees do not know how to perform
certain processes correctly. If this continues, the organization might fall apart due to
oversight. However, with performance management, this would probably be detected. The
organization could then create training programs to change the issue into an opportunity
for improvement.
➢ Provides Clarity in the Organization: It is a common problem that many employees are
unsure of what exactly their role entails, what is expected of them, and who they are to
report to. Through performance management, the company can make all of this very clear.
A lack of understanding often leads to a lack of productivity. Therefore, by providing
clarity for employees, the result will often be increased productivity and confidence.
➢ Provides the Opportunity for Exchanging Feedback: A lack of communication in a
relationship is grounds for trouble, and this includes working relationships. Quite often,
management speaks to employees about their performance, but employees do not very
often get a chance to voice concerns or frustrations. Effective performance management
provides an avenue through which both the employer and the employee exchange feedback.

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 In addition to gaining insight, employees often feel much more valued when they can voice
their thoughts.
➢ Increases Employee Retention: Performance management also encourages organizations
to reward and recognize their employees. Lack of recognition is a big reason some
employees leave a job and look for another. They want to be appreciated for their hard
work. In addition to the clarity, the ability to share feedback, and the additional training
when needed, rewards and recognition can play an important role in employee retention.
➢ Boosts Employee Engagement: Performance management, when it truly involves
employees, will boost employee engagement. When there is a disconnect between
management and employees, it is almost as though employees are just going through the
motions of the day. Their position becomes merely a job as opposed to a rewarding career.
However, performance management has the capability of engaging employees fully and
making them feel invested in the company. This leads to job satisfaction and employee
loyalty, all of which increases productivity.

6. PERFORMANCE MANAGEMENT PROCESS

Performance management is a communication process by which managers and employees

work together to plan, monitor and review an employee‘s work objectives and overall
contribution to the organization. More than just an annual performance review,
performance management is the continuous process of setting objectives, assessing
progress and providing ongoing coaching and feedback to ensure that employees are
meeting their objectives and career goals. There is much more to performance management
than the annual performance review meeting. Performance management is a continuous
process of planning, coaching and reviewing employee performance.

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 PLAN COACH

REVIEW

❖ STEP 1: PLANNING PHASE

The planning phase is a collaborative effort involving both managers and employees during
which they will:-

➢ Review the employee‘s job description to determine if it reflects the work that the
employee is currently doing.
➢ Identify and review the links between the employee‘s job description, his or her
work plan, and the organization‘s goals, objectives and strategic plan.
➢ Develop a work plan that outlines the tasks or deliverables to be completed, the
expected results and the measures or standards that will be used to evaluate
performance.
➢ Identify critical areas that will be key performance objectives for the year. The
choice of areas may be determined by the organization‘s strategic plan, by the
employee‘s desire to improve outcomes in a certain part of his or her job or by a
need to emphasize a particular aspect of the job.
➢ Identify training objectives that will help the employee grow his or her skills,
knowledge and competencies related to the work.
➢ Identify career development objectives that can be part of longer-term career
planning.

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(a) Write S.M.A.R.T. Goals: Often, the most difficult part of the planning phase is
developing clear and appropriate language to describe performance objectives and
measures or indicators of success. Supervisors need to ensure that the performance
objectives are a good representation of the full range of duties carried out by the
employee, especially everyday tasks that take time, but are often not identified as
significant accomplishments. The objectives and indicators need to be S.M.A.R.T.

(b) Set Performance Standards: While goals tell employees what they have to do,
performance standards tell them how well they have to do it. Listed below are some
principles of writing good standards that can be used effectively to evaluate employee
performance:-
Quality: addresses how well the work is performed and/or how accurate or how
effective the final product is. Quality refers to accuracy, appearance, usefulness or
effectiveness.
Quantity: addresses how much work is produced. A quantity measure can be
expressed as an error rate, such as number or percentage of errors allowed per unit of
work or as a general result to be achieved. When a quality or quantity standard is set,

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 the criteria for Exceeds Standards should be high enough to be challenging, but not so
high that it is unattainable.
Timeliness: addresses how quickly, when or by what date the work must be produced.
Timeliness standards should be set realistically.
Cost-effectiveness: addresses dollar savings to the organization or working within a
budget. Cost-effectiveness standards may include such aspects of performance as
maintaining or reducing unit costs, reducing the time it takes to produce a product or
service or reducing waste.
Manner: addresses the way or style in which a task is performed or produced.

(c) The feedback stage: Once management has completed the defining stage, employees
should have the opportunity to give input on this material. They are the one doing their
job and will have a key insight into what skills, competencies and goals will best assist
the company to achieve organisational goals.
(d) The approval stage: Management and employees both agree to the definition of the role,
goals and objectives. By making this first step of the performance management process
collaborative, management sets the stage for the process as a whole to be collaborative,
and the employee feels that they are involved in goal setting - an important thing.

❖ STEP 2: COACHING PHASE

(a) Organize meetings on a timely, regular basis: Once the parameters of the job and
objectives for the future have been set, the next step of the performance management process
begins. The coaching process is extremely important and must be done on a regular basis.
Meetings should be at least quarterly, although monthly meetings are the ideal.

(b) Provide necessary training, coaching and solutions: These meetings should focus on
solutions and coaching opportunities, rather than punitive measures for lackluster performance.
If accountability is made into a negative, then employees will avoid it rather than being honest
about where they are struggling. In some cases, management training in this area can be very
helpful to an organisation.
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(c) Solicit feedback on both sides: Management should be able to give and receive honest
feedback and work with employees rather than adopting a combative stance. The ability to
give actionable feedback is important here.

(d) Revisit objectives as necessary: As the performance management process continues,

management should revisit objectives to see if adjustments should be made, as well as pay
attention to career development opportunities for their employees. This step involves
reviewing the overall performance of the employee, how well the process itself worked, and it
also includes the reward which is an extremely important part of the overall process.

❖ STEP 3: THE REVIEWING PHASE

(a) Reviewing employee performance: At the end of the yearly performance

management cycle, there should be an employee review, which is sometimes also
called a performance appraisal. Typically, these are held once a year, to look at how
well the employee performed over that span of time. There should be a clear record
from previous check-ins to show the employee‘s progress throughout the year. The
monthly check-ins are to help the employee with problem-solving, adjusting goals and
other future-looking tasks. This performance review is the only step that looks
backward, to assess the behavior of the past year.

(b) Reviewing the performance management process: At this stage, it is important for
both management and employees to look over the previous year and see how well the
performance management process worked. Questions that can be asked are: Were
personal and organizational objectives met? If not, why? What challenges did the
employee face? What training would help the employee perform better? How did
management feedback help? If not, why? How could the process be made better?
Was the time spent on this process effectively?

(c) Reviewing overall goal completion: Of course, one of the main questions to answer
is ‗did the employee reach their goals?‘ How well did the employee succeed at the
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 tasks given to them throughout the year? It is important to look at both smaller and
larger goals, as this can give an indication to problem areas where training or
interventions can be applied.

(d) Giving actionable feedback: A key part of the review is to give and receive feedback.
Management should give actionable feedback for the employee so that they know areas
where they can improve future performance. The employee should also be invited to
give feedback on the process, and how management can do better on their end.
7. DISADVANTAGES OF PERFORMANCE MANAGEMENT

(a) Time Consuming: It is recommended that managers spend about an hour per employee
writing performance appraisals. And, depending on the number of people being
evaluated, the process can take hours to write the department‘s performance appraisals
but also hours meeting with staff to review the written material. A very time consuming,
and tedious task.

(b) Discouragement: The performance appraisal process needs to be one of

encouragement, positive reinforcement, and a celebration of a year‘s worth of
accomplishments. If the performance appraisal process is not a pleasant experience, it
has the potential to discourage staff. It is critical that managers document not only
issues that need to be corrected, but also the positive things an employee does
throughout the course of a year, and both good and bad should be discussed. For
instance, encourage employees by sharing observations of successful project
completion, positive teamwork, or professional developmental milestones.

(c) Inconsistent Message: We all struggle to remember things when we get busy. It is
those times when we remember the bad and forget to acknowledge the great things
employees do every day that sends an inconsistent message to employees.

(d) Biases: It is difficult to keep biases out of the performance appraisal process. It requires
a very structured, objective process, as well as a mature manager to remain unbiased.
Be aware of this and take the time to learn about common rater (bias) errors.
Performance appraisal rater errors are common for managers who assess performance.

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8. KEY TOOLS AND TECHNIQUES FOR PERFORMANCE MANAGEMENT

Performance management helps organisations become more successful and stay ahead of
the competition. It essentially involves measuring, reporting and managing progress in
order to improve performance, both at an individual level, and at a corporate level. There
are many, many performance management tools designed to make the process easier and
more effective. The common tools are as follows:-
(a) Key performance indicators (KPIs) and metrics: KPIs and metrics provide a way to
measure how well companies, business units, projects or individuals are performing in
relation to their strategic goals and objectives. But the primary value of KPIs is not in
measurement per se, but in enabling rich data-driven performance conversations and
better decision making. Measuring everything that moves provides little more than an
illusion that performance is being managed. Instead, it‘s important to ask, ―What goal
will this KPI help my organisation achieve,or what problem will it resolve?‖ and
―What decisions will the KPI help drive?‖ Well-designed KPIs should be vital
navigational instruments, giving a clear picture of current levels of performance and
whether the business is where it needs to be.
(b) Performance appraisals: Alongside KPIs, performance appraisals are probably the
most commonly used performance management tool. When used properly,
performance appraisals are incredibly powerful for aligning the goals of individuals
with the strategic aims of the organisation. To get the most out of this tool, however,
employees must feel that the appraisal process is a regular, honest, fair and constructive
two-way conversation. If not, appraisals can be a powerful de-motivator, leading to a
decline in performance.
(c) 360 degree feedback: This tool is all about answering the question, ―How well are
our people performing in the eyes of those who have a stake in their performance?‖ It
provides individuals with a broad assessment of their performance based on the views
of those around them, including their supervisor or manager, direct reports, peers,
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 customers, suppliers, and so on. Results are confidentially tallied and presented to the
employee, usually by a manager. The insights from 360 degree feedback are typically
used in employee training and development. Done well, 360 degree feedback helps to
democratise the review process, by weighing the opinions of many people, instead of
just the individual‘s line manager.
(d) Management by objectives (MBO): MBO is the process of defining specific
objectives and then setting out how to achieve each individual objective. It‘s
particularly powerful for specific work that needs to be done one step at a time, and is
a great way to create a culture of working towards common goals. The idea is that, as
each objective is achieved, those within the organisation are aware of their
achievements, which, in turn, boosts morale and motivation. MBO involves measuring
individual performance and comparing it with standards that have been set.
(e) Performance management frameworks: Without a doubt, one of the most popular
and best-known management frameworks is the Balanced Scorecard (BSC). Voted one
of the most influential business ideas ever presented in the Harvard Business Review,
the BSC has been massively popular over the last 20 years. The BSC is a strategy
execution tool that helps companies to: 1) clarify their strategy and communicate their
business priorities and objectives; 2) monitor progress by measuring to what extent
priorities and objectives are being delivered; and 3) define and manage action plans to
ensure initiatives are in place to deliver the business‘s priorities and strategic objectives.
(f) Reward and recognition programmes: When employees feel that good performance
goes unrecognised and unrewarded, motivation plummets, and people disengage from
the company‘s overall mission. Reward and recognition programmes are therefore an
important part of any thorough performance management system, creating a method
for celebrating those who are high performers. For many companies, this means dishing
out financial rewards, such as bonuses, but simple praise and recognition of a job
well done is just as important for maintaining morale and continued high
performance.
(g) Personal development plans (PDP): A PDP is effectively a tailored action plan
that is based on reflection and awareness of an individual‘s performance and needs,
setting out goals for future performance and actions that will support personal
development. PDPs are often used to identify specific training and development needs
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 and create an action plan for meeting those needs (for example, through specific
courses or shadowing other employees). It helps individuals set out how they want
to grow, and what actions they can take to achieve that growth. This not only helps the
individual feel more invested in the company, and the role they play in its success, it
also identifies concrete steps that can help drive individual performance in the future.

(h) Key result Areas (KRAs): They are the identified areas of performance that
support organisation‘s goals which are to be accomplished during the performance year.
They should be ideally aligned to function and should be cascaded from the function
scorecard. KRAs denote to the tasks and duties, assigned to an employee. Every
employee in an organisation has specific KRAs for which he/she is exclusively
responsible.

Thus, Investing in or developing performance management tools, techniques and processes like
these, is an important part of creating a culture of high performance. And that‘s exactly what every
business, regardless of size, in every industry, should be aiming for – strong performance at every
single level of the organisation.

9. PERFORMANCE APPRAISAL IS A PART OF PERFORMANCE

MANAGEMENT?

It is true that Performance appraisal is a part of Performance Management. Performance

Management is a wider concept of management of human resources than the concept of
performance appraisal. Performance appraisals are probably the most commonly used
performance management tool. When used properly, performance appraisals are incredibly
powerful for aligning the goals of individuals with the strategic aims of the organisation.
To get the most out of this tool, however, employees must feel that the appraisal process is
a regular, honest, fair and constructive two-way conversation. If not, appraisals can be a
powerful de-motivator, leading to a decline in performance. Often in an organization, we
see that the concepts of performance management and performance appraisal are used
interchangeably. But little do we realize that both the concepts are very different from each
other. The reason for this confusion is that both the concepts deal with evaluating

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performance and both come under the same umbrella term of the performance management
system. Let us start by defining both the concepts first.

Performance management refers to the set of activities and tasks that make sure that the
employees meet their goals on time. The goals need to be aligned with the objectives of
the organization. Performance management ensures the efficiency and effectiveness of the
performance of the employees when the goals are reached. Performance management has
a holistic approach in the sense, it analyzes employee performance keeping in mind the
development needs of the employee & organization. Performance appraisal, on the other
hand, is nothing but the evaluation of an employee‘s performance. Feedback forms are
given to the employee. After the employee has given self-feedback, the manager gives a
final review. Performance appraisal also deals with the evaluation of an employee‘s
competencies such as commitment to the organization‘s core values, ability to take
initiatives, responsibility for tasks, strengths, and weaknesses, skill set and training, etc.
Hence, Performance Appraisal is a part of Performance Management however the
two have some differences if compared.

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10. DIFFERENCE BETWEEN PERFORMANCE MANAGEMENT AND
PERFORMANCE APPRAISAL

PERFORMANCE MANAGEMENT PERFORMANCE APPRAISAL

Performance management is about Performance appraisal evaluates the

actually helping an employee to develop actual performance of the employee, but
and increase his performance and it does not focus on the employee‟s
productivity. performance productivity.

Performance management looks at an Performance appraisal evaluates the

employee‟s performance keeping in employee‟s performance based on how
mind the present and the future. he has performed in the immediate past.

Performance management proactively Performance appraisal only looks at the

manages an employee‟s performance employee‟s performance objectively for
and ensures that the employee has the year and give a final feedback to the
accomplished all the goals, vision, employee.
mission and the core values of the
organisation.

Performance management has a holistic Performance appraisal is individualistic

approach that evaluates the relationship in nature and pertains to the employee
between the employee and the and his past performance.
organization and examine ways in which
employee engagement can be fostered.

Performance management is very Performance appraisals are very linear

dynamic because it involves a lot of in terms of the communication because
dialog between the employee and the it has a very top down approach towards
senior managers. There is more room employee performance. There is a
for discussion in performance discussion that takes place only after the
management. performance appraisal process.

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 PERFORMANCE MANAGEMENT PERFORMANCE APPRAISAL

Performance management is future Performance appraisal is very

oriented keeping in mind the strategies retrospective in the sense that it looks
required for maintaining the employee back on past events and situations. It
performance for the next year. looks at an employee‟s performance over
Performance management finds ways to a period. Performance appraisal is very
improve employee performance. past oriented.

Performance management is a Performance appraisal system facilitates

continuous ongoing process by giving real performance appraisals only once or
time instant performance reviews. twice a year. There is a performance
Luckily, with the advent of an employee management tool for appraisals,
performance management software, feedback happens in a periodic manner
there is a performance management tool during appraisals, but the feedback may
that has a continuous feedback not focus on development. Typically, the
mechanism for effective performance discussion during appraisals revolves
management. around justifying the rating and
feedback.

Performance management has a Performance appraisal on the other

qualitative and quantitative approach in hand, has a quantitative approach
the sense it has ratings and more towards an employee‟s performance. In
continuous feedback. If an organization an employee performance management
has an employee performance software, performance appraisals use
management software, then performance rating scales to evaluate employee
management is usually in the form of performance. There is minimal scope for
comprehensive feedback given to the constant feedback. The ratings are the
employees and their performance. only final measurement that is used for
performance appraisal.

Performance management is flexible in Performance appraisal is usually rigid

terms of keeping in mind the growth of because it is only confined to an
the organization. Compensation and employee‟s past performance. It has little
salary revisionsare a part of PMS, but to do with his growth.
performance management comes up with
developmental plans for more
improvement

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11. IMPLEMENTATION OF AN EFFECTIVE PERFORMANCE MANAGEMENT
SYSTEM

BEST SYSTEMS GO BEYOND FORMAL RATINGS AND FOCUS ON FOUR KEY

ASPECTS:-

ENABLE EMPLOYEES TO GROW AND DEVELOP THEIR

TALENTS

IMPROVE COMMUNICATION BETWEEN EMPLOYEES

AND MANAGERS

ALIGN INDIVIDUAL WORK TO ACHIEVE

ORGANISATIONAL GOALS

ENABLE INDIVIDUALS AND TEAMS TO PERFORM AT

THEIR HIGHEST POTENTIAL

RECOMMENDATIONS:-

Set goals that have Develop manager

frequent short-term coaching skills so that
objectives that are feedback is accepted by
challenging and have employees and improves
meaning. performance.
In monitoring performance,
Eliminate self-assessments
educate management on how
to provide employee and reduce paperwork.
performance feedback that is However, it is probably best
to still include self-
ongoing in the context of work,
assessment as this allows
rather than outside of the
work. employees to have voice.

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 12. PERFORMANCE MANAGEMENT IN INDIA

Global businesses are operating in the midst of challenging times. An organisation

today, in order to be profitable and ahead of its peers, needs to compete in more markets, operate
across more platforms and manage more stakeholders than ever before. The complexity of the
current business landscape is further accentuated by the rise of additional challenges such as the
ever-changing talent, technology and economic landscape.

India occupies a pivotal position within this canvas of change. India is arguably one of the
most complex and dynamic work habitats in the globe. Its workplaces demand engaged,
multiskilled and flexible employees who can thrive in a furiously fast-paced and highly
competitive market.

Leaders will opine that it is the ability to deliver ‗more for less over a longer period of time‘,
which is to say that companies want to remain competitive in the long term and retain their options
of future expansion, while simultaneously delivering current or short-term objectives and meeting
cash flow goals with the leanest resources possible.

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 1.2 COMPANY PROFILE

Tata Motors was founded in 1945, as a locomotive manufacturer. Tata Group

entered the commercial vehicle sector in 1954 after forming a joint venture with DaimlerBenz of
Germany. After years of dominating the commercial vehicle market in India, Tata Motors entered
the passenger vehicle market in 1991 by launching the Tata Sierra, a sport utility vehicle based on
the Tata Mobile platform. Tata subsequently launched the Tata Estate (1992; a station wagon
design based on the earlier Tata Mobile), the Tata Sumo (1994, a 5-door SUV) and the Tata Safari
(1998).

1. WHAT IS „TATA GROUP‟?

Tata Group is an Indian multinational conglomerate headquartered in
Mumbai, Maharashtra, India. Founded in 1868 by Jamsetji Tata, the company gained international
recognition after purchasing several global companies. It is one of the biggest and oldest industrial
groups in India. Each Tata company operates independently under the guidance and supervision
of its own board of directors and shareholders. It is one of the biggest and oldest industrial groups
in India. Each Tata company operates independently under the guidance and supervision of its
own board of directors and shareholders. Tata Group which is privately owned conglomerate of
nearly 100 companies encompasses several primary business sectors: chemicals, consumer
products, energy, engineering, information systems, materials, and services. Indian business
mogul Ratan Tata, succeeded J.R.D Tata as the chairman of the Tata Group. Upon assuming
leadership of the conglomerate, Ratan aggressively sought to expand it, and increasingly he
focused on globalizing its businesses. In 2000 the group acquired London-based Tetley Tea, and
in 2004 it purchased the truck-manufacturing operations of South Korea‘s Daewoo Motors. In
2001 Tata Group partnered with American International Group, Inc.
(AIG) to create the insurance company Tata-AIG.

2. STRUCTURE OF „TATA GROUP‟

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 Tata Chemicals

Tata FMCG

Tata Retail and E-commerce

Tata Energy

Tata Engineering

Tata Info systems and communications

Tata Airlines

Tata Services

Tata Hotels

Tata Catering

Tata Iron and steel

Tata Financial services

3. PURPOSE AND CORE VALUES OF TATA GROUP

29
 ➢ Integrity
We will be fair, honest, transparent and ethical in our conduct; everything we do must stand
the test of public scrutiny.

➢ Responsibility
We will integrate environmental and social principles in our businesses, ensuring that what
comes from the people goes back to the people many times over.

➢ Excellence
We will be passionate about achieving the highest standards of quality, always promoting
meritocracy.

➢ Pioneering
We will be bold and agile, courageously taking on challenges, using deep customer insight
to develop innovative solutions.

➢ Unity
We will invest in our people and partners, enable continuous learning, and build caring and
collaborative relationships based on trust and mutual respect.

4. TATA MOTORS

Tata Motors Group (Tata Motors) is a $35 billion organisation. It is a leading global
automobile manufacturing company. Its diverse portfolio includes an extensive range of cars,
sports utility vehicles, trucks, buses and defence vehicles. Tata Motors is one of
India's largest OEMs offering an extensive range of integrated, smart and e-mobility solutions
Tata Motors Limited, formerly Tata Engineering and Locomotive Company (TELCO), is an
Indian multinational automotive manufacturing company headquartered in Mumbai,
Maharashtra, India. It is a part of Tata Group, an Indian conglomerate. Its products include
passenger cars, trucks, vans, coaches, buses, sports cars, construction equipment and military
vehicles. Tata Motors has auto manufacturing and assembly plants in Jamshedpur, Pantnagar,
30
 Lucknow, Sanand, Dharwad, and Pune in India, as well as in Argentina, South Africa, Great
Britain, and Thailand. It has research and development centres in Pune, Jamshedpur, Lucknow,
and Dharwad, India and South Korea, Great Britain, and Spain. Tata Motors‘ principal
subsidiaries purchased the English premium car maker Jaguar Land Rover (the maker of Jaguar
and Land Rover cars) and the South Korean commercial vehicle manufacturer Tata Daewoo.
Tata Motors has a bus-manufacturing joint venture with Marcopolo S.A. (Tata Marcopolo), a
construction-equipment manufacturing joint venture with Hitachi (Tata Hitachi Construction
Machinery), and a joint venture with Fiat Chrysler which manufactures automotive
components and Fiat Chrysler and Tata branded vehicles.

Founded in 1945 as a manufacturer of locomotives, the company manufactured its first

commercial vehicle in 1954 in a collaboration with Daimler-Benz AG, which ended in 1969.
Tata Motors entered the passenger vehicle market in 1988 with the launch of the Tata Mobile
followed by the Tata Sierra in 1991, becoming the first Indian manufacturer to achieve the
capability of developing a competitive indigenous automobile.[4] In 1998, Tata launched the
first fully indigenous Indian passenger car, the Indica, and in 2008 launched the Tata Nano, the
world's cheapest car. Tata Motors acquired the South Korean truck manufacturer Daewoo
Commercial Vehicles Company in 2004 and purchased Jaguar Land Rover from Ford in 2008.

Tata Motors is listed on the BSE (Bombay Stock Exchange), where it is a constituent of the
BSE SENSEX index, the National Stock Exchange of India, and the New York Stock
Exchange. The company is ranked 265th on the Fortune Global 500 list of the world's biggest
corporations as of 2019. On 17 January 2017, Natarajan Chandrasekaran was appointed
chairman of the company Tata Group. Tata Motors increases its UV market share to over 8%
in FY2019.

5. HISTORY OF TATA MOTORS

Tata Motors was founded in 1945, as a locomotive manufacturer. Tata Group

entered the commercial vehicle sector in 1954 after forming a joint venture with DaimlerBenz of
Germany. After years of dominating the commercial vehicle market in India, Tata Motors entered
31
the passenger vehicle market in 1991 by launching the Tata Sierra, a sport utility vehicle based on
the Tata Mobile platform. Tata subsequently launched the Tata Estate (1992; a station wagon
design based on the earlier Tata Mobile), the Tata Sumo (1994, a 5-door SUV) and the Tata Safari
(1998). Tata launched the Indica in 1998, a fully indigenous Indian passenger car tailor-made to
suit Indian consumer needs though styled by I.D.E.A, Italy. Although initially criticised by auto
analysts, its excellent fuel economy, powerful engine, and an aggressive marketing strategy made
it one of the best-selling cars in the history of the Indian automobile industries. A newer version
of the car, named Indica V2, was a major improvement over the previous version and quickly
became a mass favourite. Tata Motors also successfully exported large numbers of the car to South
Africa. The success of the Indica played a key role in the growth of Tata Motors.

In 2004, Tata Motors acquired Daewoo's South Korea-based truck manufacturing unit,
Daewoo Commercial Vehicles Company, later renamed Tata Daewoo. On 27 September
2004, Ratan Tata, the Chairman of Tata Motors, rang the opening bell at the New York Stock
Exchange to mark the listing of Tata Motors.

In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and coach
manufacturer Hispano Carrocera. Tata Motors continued its market area expansion through the
introduction of new products such as buses (Starbus and Globus, jointly developed with subsidiary
Hispano Carrocera) and trucks (Novus, jointly developed with subsidiary Tata Daewoo).
In 2006, Tata formed a joint venture with the Brazil-based Marcopolo, Tata Marcopolo
Bus, to manufacture fully built buses and coaches.

In 2008, Tata Motors acquired the English car maker Jaguar Land Rover, manufacturer
of the Jaguar and Land Rover from Ford Motor Company.

In May 2009, Tata unveiled the Tata World Truck range jointly developed with Tata
Daewoo; the range went on sale in South Korea, South Africa, the SAARC countries, and the
Middle East at the end of 2009. Tata acquired full ownership of Hispano Carrocera in 2009. In
2009, its Lucknow plant was awarded the "Best of All" Rajiv Gandhi National Quality Award.

In 2010, Tata Motors acquired an 80% stake in the Italian design and engineering company
Trilix for €1.85 million. The acquisition formed part of the company's plan to enhance its styling
and design capabilities.

In 2012, Tata Motors announced it would invest around ₹6 billion in the development of
Futuristic Infantry Combat Vehicles in collaboration with DRDO.
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 In 2013, Tata Motors announced it will sell in India, the first vehicle in the world to run on
compressed air (engines designed by the French company MDI) and dubbed "Mini CAT".

In 2014, Tata Motors introduced first Truck Racing championship in India "T1 Prima
Truck Racing Championship". On 26 January 2014, the Managing Director Karl Slym was found
dead. He fell from the 22nd floor to the fourth floor of the Shangri-La Hotel in Bangkok, where
he was to attend a meeting of Tata Motors Thailand.

On 2 November 2015, Tata Motors announced Lionel Messi as global brand ambassador
at New Delhi, to promote and endorse passenger vehicles globally.

On 27 December 2016, Tata Motors announced the Bollywood actor Akshay Kumar as
brand ambassador for its commercial vehicles range.

On 8 March 2017, Tata Motors announced that it has signed a memorandum of

understanding with Volkswagen to develop vehicles for India's domestic market.

On 3 May 2018, Tata Motors announced that it sold its aerospace and defence business to
another Tata Group Entity, Tata Advanced Systems, to unlock their full potential.
On 29 April 2019, Tata Motors announced a partnership
with Nirma University in Ahmedabad to provide a [Link]. degree programme for employees of
its Sanand plant

6. COMPANIES UNDER TATA MOTORS

33
 TATA MOTORS CARS

TATA DAEWOO

TATA HISPANO

TATA JAGUAR LAND

MOTORS ROVER

TML DRIVELINES

TATA
TECHNOLOGIES

TATA MOTORS
EUROPEAN TECHNICAL
CENTRE

➢ Tata Daewoo: Tata Daewoo (officially Tata Daewoo Commercial Vehicle Company and
formerly Daewoo Commercial Vehicle Company) is a commercial vehicle manufacturer
headquartered in Gunsan, Jeollabuk-do South Korea, and a wholly owned subsidiary of
Tata Motors. It is the second-largest heavy commercial vehicle manufacturer in South
Korea and was acquired by Tata Motors in 2004. The principal reasons behind the
acquisition were to reduce Tata's dependence on the Indian commercial vehicle market
(which was responsible for around 94% of its sales in the MHCV segment and around 84%
in the light commercial vehicle segment) and expand its product portfolio by leveraging on
Daewoo's strengths in the heavy-tonnage sector. Tata Motors has jointly worked with Tata
34
 Daewoo to develop trucks such as Novus and World Truck and buses including GloBus
and StarBus. In 2012, Tata began developing a new line to manufacture competitive and
fuel-efficient commercial vehicles to face the competition posed by the entry of
international brands such as Mercedes-Benz, Volvo, and Navistar into the Indian market.

➢ Tata Hispano: Tata Hispano Motors Carrocera, S.A. was a bus and coach manufacturer
based in Zaragoza, Aragon, Spain, and a wholly owned subsidiary of Tata Motors. Tata
Hispano has plants in Zaragoza, Spain, and Casablanca, Morocco. Tata Motors first
acquired a 21% stake in Hispano Carrocera SA in 2005, and purchased the remaining 79%
for an undisclosed sum in 2009, making it a fully owned subsidiary, subsequently renamed
Tata Hispano. In 2013, Tata Hispano ceased production at its Zaragoza plant.

➢ Jaguar Land Rover: Jaguar Land Rover PLC is a British premium automaker
headquartered in Whitley, Coventry, United Kingdom, and has been a wholly owned
subsidiary of Tata Motors since June 2008, when it was acquired from Ford Motor
Company of USA. Its principal activity is the development, manufacture and sale of Jaguar
luxury and sports cars and Land Rover premium four-wheel-drive vehicles. Jaguar Land
Rover has two design centres and three assembly plants in the United Kingdom. Under
Tata ownership, Jaguar Land Rover has launched new vehicles including the Range Rover
Evoque, Jaguar F-Type, the Jaguar XE, the Jaguar XJ (X351), the second-generation Range
Rover Sport, and Jaguar XF, the fourth-generation Land Rover Discovery, Range Rover
Velar and the Range Rover (L405). JD Power, of the US, rates Land Rover and Jaguar as
the two worse brands for initial quality. The Jaguar FPace made Consumer Reports
February 2019 list of the 10 Least Reliable Cars. The editors cited "electronics, drive
system, power equipment, noises and leaks" as problematic aspects. The Jaguar Land Rover
subsidiary was struggling by 2019 and Tata Motors wrote down its investment in JLR by
$3.9 billion. Much of the financial problem was due to a 50% drop in sales in China during
2019, although the situation was improving. Still, Tata was open to considering a
partnership with another company according to a statement in mid-October, as long as the
partnership agreement would allow Tata to maintain control of the business. The company
ruled out the possibility of a sale of JLR to another entity.

➢ TML Drivelines: TML Drivelines Ltd. is a wholly owned subsidiary of Tata Motors
engaged in the manufacture of gearboxes and axles for heavy and medium commercial

35
 vehicles. It has production facilities at Jamshedpur and Lucknow. TML Forge division is
also a recent acquisition of TML Drivelines. TML Drivelines was formed through the
merger of HV Transmission and HV Axles .

➢ Tata Technologies: Tata Technologies Limited (TTL) is a 43%-owned subsidiary of Tata

Motors which provides design, engineering, and business process outsourcing services to
the automotive industry. It is headquartered in Pune's Hinjewadi business district and also
has operations in London, Detroit and Thailand. Its clients include Ford, General Motors,
Honda, and Toyota. The British engineering and design services company Incat
International, which specialises in engineering and design services and product lifecycle
management in the automotive, aerospace, and engineering sectors, is a wholly owned
subsidiary of TTL. It was acquired by TTL in August 2005 for ₹4 billion. In 2017, TAL, a
subsidiary of Tata Motors, manufactured India‘s first industrial articulated robot for micro,
small, and medium enterprises.

➢ European Technical Centre: The Tata Motors European Technical Centre (TMETC) is
an automotive design, engineering, and research company based at Warwick
Manufacturing Group (WMG) on the campus of the University of Warwick in Great
Britain. It was established in 2005 and is a wholly owned subsidiary of Tata Motors. It was
the joint developer of the World Truck. In September 2013, it was announced that a new
National Automotive Innovation Campus would be built at WMG at Warwick's main
campus at a cost of £100 million. The initiative will be a partnership between Tata Motors,
the university, and Jaguar Land Rover, with £30 million in funding coming from Tata
Motors.

7. OBJECTIVE OF TATA MOTORS

Our focus on connecting aspirations and our pipeline of tech-enabled products keeps us at the
forefront of the market. We have identified six key mobility drivers that will lead us into the
future – modular architecture, complexity reduction in manufacturing, connected &
autonomous vehicles, clean drivelines, shared mobility, and low total cost of ownership. Our
sub-brand TAMO is an incubating centre of innovation that will spark new mobility solutions
through new technologies, business models and partnerships.

36
8. MISSION, VISION AND VALUES OF TATA MOTORS

➢ Mission: Our mission- across our globally dispersed organisation – is to be passionate

in anticipating and providing the best vehicles and experiences that excite our global
customers. We innovate mobility solutions with passion to enhance the quality of life.
➢ Vision: By FY 2024, we will become the most aspirational Indian auto brand,
consistently winning, by:-
• Delivering superior financial returns
• Driving sustainable mobility solutions
Exceeding customer expectations, and
• Creating a highly engaged work force ➢
Values:
Integrity
Teamwork
Accountability
Customer focus
Excellence
Speed

9. CORPORATE SOCIAL RESPONSIBILITY(CSR) AT TATA MOTORS

At Tata Motors, all our Corporate Social Responsibility initiatives focus on improving the
quality of life of underprivileged communities, neighbouring our business operations. Keeping
up with the Sustainability Development Goals (SDGs), our interventions focus on health,
education, employability and environment, with a special focus on the historically and socially
deprived Scheduled Caste and Scheduled Tribe communities. In the year 2019-20, our CSR
interventions have touched over 8.3 lakh lives in India. Global automobile manufacturer Tata
Motors Limited acknowledges its roots and tirelessly works to address the needs and
aspirations of the community, pushing others onwards to development. We have a six-pronged

37
CSR strategy that attends to the societal needs starting from pre-natal care to education, and
serves across the spectrum – helping with high-school level courses to professional ones,
leading to employability and employment.

TATA MOTORS CORPORATE SOCIAL RESPONSIBILITY (CSR) POLICY

FY2019-20

As an integral part of our commitment to Good Corporate Citizenship, we at TATA

Motors believe in actively assisting in the improvement of the quality of life of the people in
the communities, giving preference to local areas around our business operations. We shall
continue to relentlessly strive in our endeavor of nation-building, sustainable development,
accelerated inclusive growth and social equity.
The Tata group constitutes a global force not only for doing good business, but being
in the business of doing good for society. We shall strategically integrate the shouldering of
our Social Responsibility with our pursuit of Business Excellence. Towards achieving
longterm stakeholder value creation, TATA Motors shall always continue to respect the
interests of and be responsive towards its key stakeholders - the communities, especially
those from socially and economically backward groups, the underprivileged and
marginalized; focused on inter alia the Scheduled Castes and Scheduled Tribes, and the
society at large.
In our CSR journey towards achieving human development and excellence, we shall
endeavor to deploy TATA Group CSR Programs and drive Affirmative Action (AA) agenda
and other international development goals like Sustainable Development Goals (SDGs), in line
with Schedule VII of The Companies Act, 2013 as recommended by the CSR Committee of
the Board and approved by the Board from time to time.
In order to leverage the demographic dividend of our country, Company‘s CSR efforts
shall focus on Health, Education, Employability and Environment interventions for relevant
target groups, ensuring diversity and giving preference to needy and deserving communities
inhabiting urban and semi urban India.
The corpus to be spent by TATA Motors on CSR shall include at least 2% of the average
net profits of its India Operations for preceding three financial years. Any surplus arising out

38
 of the CSR projects or programs or activities shall not form part of business profits of the
Company.
CSR Policy implementation shall be periodically reviewed and monitored by a two
tiered Governance Structure comprising of Tier I – Board and CSR Committee of the Board,
and Tier II - CSR Team comprising of Corporate Office, Manufacturing Plants and
Commercial Offices. CSR at Tata Motors shall be underpinned by ‗More from Less for More‘
philosophy which implies striving to achieve greater impacts, outcomes and outputs from our
CSR projects and programmes by judicious investment and utilization of financial and human
resources, engaging in like-minded stakeholder partnerships for higher outreach benefitting
more lives.
We shall continue to nurture a vibrant culture of volunteering in our aspiration to
leverage our core competencies and managerial, technological capabilities for CSR. We shall
strive to bring innovation to our CSR initiatives and optimize their effectiveness while seeking
to create a measurable impact of our CSR activities.

10. SIX TENETS OF TATA MOTORS‟ CORPORATE SOCIAL RESPONSIBILITY

➢ Adopting Human Life Cycle Approach

➢ Leveraging all Stakeholders
➢ Upstream and Downstream Linkages
➢ Measuring Social Capital
➢ Philosophy of More from Less or More
➢ Leveraging Technology

11. PROGRAMMES OF TATA MOTORS FULFILLING CSR

➢ AAROGYA- Health
Addressing malnutrition, spreading awareness and delivering preventative healthcare –
Impacted 3,99,619 lives.

39
 ➢ VIDYADHANAM- Education
Holistic educational initiatives and financial support –
Touched lives of 1,52,558 students.

➢ KAUSHALYA- Employability or Skilling

Improving employability through skill development, vocational training, assistance for
supplementing income, women empowerment – Skilled 1,17,474 people.

➢ VASUNDHARA- Environment
Planted 1,17,464 saplings, and reached out to create awareness in 91,025 people.

➢ AMRUTDHARA- Drinking Water

Offering water relief measures – Impacted 21,666 lives.

➢ AADHAAR- Affirmative Action

Rural focused programs for integrated development approach – Committed to better lives
of 3000 tribal communities.

➢ SEVA- Volunteering
Tata Motors‘ family volunteered – 1,11,960 hours for social upliftment.

12. MANUFACTURING OPERATIONS MARKETS OF TATA MOTORS

INTERNATIONALLY

With over 8.5 million Tata branded vehicles plying globally, Tata Motors is among the
select companies in the world to offer an extensive portfolio to its consumers. We have
expanded our international footprint through exports since 1961. In passenger vehicles, the
company has a strong presence in the hatchback and the sedan segment, going up to SUVs and
MUVs. In commercial vehicles, Tata Motors offers a wide spectrum of vehicles that are
customized for local conditions and meet the highest standards for quality, safety, environment
norms and user comfort. Today, the Tata Motors group is present in over 125 countries, with

40
a worldwide network comprising over 8,400 touch points. Tata Motors has R&D centres in
UK, Italy, India and South Korea. With vast global experience, the company brings deep
understanding of customer expectations from diverse markets, and is well positioned to cater
to ever changing automotive norms and consumer trends across the globe. With
manufacturing operations in the UK, South Korea, Thailand, South Africa, Indonesia, Austria
and Slovakia, the international footprint has expanded through joint ventures like the strategic
alliance with Fiat and Brazil-based Marcopolo.
Africa: In the continent of Africa, Tata Motors has significant presence in South Africa,
Angola, Algeria, Democratic Republic of Congo, Ghana, Kenya, Morocco, Mozambique,
Nigeria, Seychelles, Sudan, Tanzania, Tunisia, Uganda, Zambia and Zimbabwe. Africa has
been a preferred destination for Tata Motors since 1992. The roads of Africa are home to both
left-hand and right-hand drive versions of our cars, buses, SUVs and trucks. We have a
manufacturing base in Rosslyn, South Africa, which produces trucks ranging from 7 to 75
tonnes.
Latin America: Tata Motors has been wooing customers in Latin America since 2009. Our
most popular vehicles here are our compact and mid-sized sedans including the Indigo and the
Manza, our hatchback Vista, and the Tata Xenon, our bestselling pickup. What our vehicles
bring to the market are a winning combination of power-packed performance and lower
lifecycle cost of ownership.
Russia: Russia and the CIS form a large part of our global expansion strategy. Our
manufacturing base in Ukraine gives us access to local geographies and facilitates
customisation and speed of delivery. Our wide range of trucks and buses allows us to provide
customers with the best fit vehicle. Our local tie-ups with dealers and distributors give us the
ability to provide our customers with superior service experience.
APAC: Tata Motors first ventured into other Asia Pacific markets with its foray into Sri Lanka
in 1961. In addition, Tata Motors has a substantial presence in Bangladesh, Nepal,
Myanmar, Bhutan, Afghanistan, Indonesia, Malaysia, Philippines, Thailand and Vietnam.
With an established presence in most geographies, and a dominant share of the commercial
vehicle segment in various markets, Tata Motors is well on its way to realising its global
expansion strategy.
Middle East: Tata Motors has been present in the Middle East geography since 1971 when
our trucks were first sold in Bahrain. Today, our vehicles are sold in the UAE, Oman, Kuwait,

41
 Qatar, Saudi Arabia, Iraq and Turkey. The region accounts for a tenth of our export market.
We offer products with the reliability and ruggedness that are necessary for operating in local
weather conditions and terrains. We have achieved a leadership position in the medium bus
segment, and we are now expanding into the pickup and truck sectors. The Tata Elanza, Xenon
and Prima are our latest launches in this region.

13. FACILITIES AT TATA MOTORS

➢ Manufacturing: World-class manufacturing forms the essence of Tata Motors. In the

manufacturing process, our facilities ensure that every step - from design to production to
assembly - follows the highest standards of quality. Our plants combine modern
manufacturing practices with cutting edge technology. We are home to India‘s biggest
engine development facility and own the country‘s only facility for full climate test and
pedestrian test. Tata Motors' overseas plants too are equipped with state-of-the-art
manufacturing and assembly lines to cater to large numbers and different variants of
vehicles. Our constant focus on automation and technology makes us the leader in India‘s
commercial vehicle market and places us among the top vehicle makers in the world.

➢ Design: Design gives personality to a vehicle. Our expertise in producing private and
commercial vehicles for over seven decades has helped us develop a deep understanding
of customer needs, and this has been translated as our own Impact Design language. Our
designing units in India, UK and Italy specialise in the very latest in designing practices,
such as clay modelling, digital modeling, styling, architecture, packaging, to name a few.
Our latest cars – Tigor and Nexon – are examples of our focus on cutting-edge, global
design. Our Ultra trucks are designed to offer global styling, enhanced driving comfort and
superior performance. While designing commercial vehicles, the designers at Tata Motors
pay emphasis on safety, maintenance, user comfort and life cycle cost, while also
conveying the trendy and trustworthy message that is the heart of Tata Motors‘ design
language.
➢ Engineering: Tata Motors is driven by a passion for excellence, which is reflected across
all our operations. To offer the best vehicle experience to our customers, our passionate

42
 engineering and quality talent ensures production of superior vehicles, which has led to the
rapid growth in global demand for our products. We focus on critical issues such as the
look and feel of a vehicle, safety and efficiency, operations and maintenance, and fuel
efficiency and life-cycle cost. Our world-class engineering and research centres are capable
of carrying out complex vehicle designing through 3D visualisation and the integration of
intelligent electronic vehicular control systems with hybrid technologies. Our recent
offerings, Tigor and Nexon, along with our latest commercial vehicles, Ultra and Signa,
reflect the relentless effort put in at our technical centres. Our unmatched lead in auto
technologies has helped us strengthen our leadership position in the automobile industry.

14. INNOVATION AT TATA MOTORS

The foundation of Tata Motors' growth over the last 75 years is a deep
understanding of economic stimuli and customer needs, and the ability to translate them into
customer-desired offerings through cutting-edge technologies. Innovation is deeply embedded
in our DNA, and is demonstrated through our path-breaking vehicles, ranging from India's first
fully indigenous passenger car, the Indica, to the new generation cars - Harrier, Tiago, Hexa,
Tigor, Nexon and Altroz.
On the cargo transportation side, our vast range of commercial vehicles includes the
recently launched the Tata Intra - India's first compact truck in the SCV segment, globally
benchmarked Prima, Signa and Ultra trucks in the Medium & Heavy Commercial Vehicle
(M&HCV) segment, the Xenon Yodha in the pickup category and the segment-redefining Tata
Ace.
In passenger transportation, Tata Motors has unleashed the future of mass public
transportation by launching the Starbus Electric (9m and 12m) and the Starbus Hybrid 12m
buses. To meet the current and future passenger transportation needs in smart cities, we have
rolled out a range of smart buses which are designed, developed and powered by alternate
fuels. Developed indigenously, these buses are safe and comfortable and are economically
viable ‗Made in India' solutions. The country's first "Fuel Cell Bus" also under development
from the house of TML.
We focus on current and future auto technologies to enhance the look and feel of our
vehicles and to boost the overall driving experience for our customers. Our new age concept

43
 cars and award-winning engines are examples of how far our innovative techniques have
brought us. From frugal engineering to our work on vehicles, powered by alternative fuels, our
innovation thrust forms one of the pillars of a business built on sustainability.
Our state-of-the-art R&D centres and design studios are located at Pune, Jamshedpur
& Lucknow (India), Italy and the UK, and have many firsts to their credit. We boast of housing
an end to end powertrain development facility recently upgraded with countries first multi
storey soak room facility for BS6 development, Asia's first anechoic chamber, India's first full
vehicle crash test facility and India's only full climate test facility. With over 5000 engineers,
designers, scientists and technicians, we are making path-breaking innovations that are driving
the form and performance of future vehicles.
Design is an integral element of innovation. At Tata Motors, design is not just about
developing new surfaces, blending colours, materials and finish, but also about creating
compelling products that offer the latest technology-rich features and deliver high
performance.
Technology, In passenger vehicles, the company's continued efforts have translated into
successful product launches and concept unveils. Earlier launched Tata Nexon is already the
winner of most of the awards and is also the safest compact SUV in its segment.
With quality comes efficiency. At Tata Motors, we ensure focused quality control across
all our processes. We view our processes in the light of how a step might be done faster and
better to improve the overall efficiency. Our quality management system (QMS) uses tools for
continual improvement, defect prevention and reduction of variation and waste in the supply
chain.

15. PERFORMANCE MANAGEMENT AT TATA MOTORS

The Performance Management model which is followed on annual basis starting from the
month of April till March has been extremely effective for the employees of Tata Motors. Half
yearly appraisal system, was started a year ago. This activity was started keeping in mind the
dynamic behavior of the industry. With a half yearly appraisal system, the employee gets
feedback twice a year, which gives him/her a chance to re-look at his/her approach of working.
Necessary steps are also undertaken for employees who deviate from their goals. They have

44
introduced a comprehensive system of quarterly appraisals‟ where an employee selects his/her
own goals or Key Result Area (KRAs) every quarter and him/her self assesses his/her own
performance against these parameters. At Spice jet while formally the process is annual, for
several of the frontline employees, there are performance related quarterly payouts designed
to reward them with incentives for their performance. This has resulted in quarterly
assessments which are aligned overall to annual KRAs. Tata Motors have a midterm review
for all those who have been performers, thereby creating an expectation amongst the employees
of an increase in salary twice a year if they perform well. They used to have annual appraisals
earlier, but then they felt that the incentives are not enough to motivation the sales department,
which generates major revenues or the organization. They do give monetary increments and
designation hikes, according to the performance. If the employee deserves both, they give
him/her both the advantages otherwise at least one of them. Designation hikes are given
annually. These are proportional to effort of the individual, team and the department.
Designation changes are given keeping in mind the immense responsibility one has to shoulder
in a high rank.
Monetary increments are primarily incentives that are given either in cash or kind for
example they give them travel package within India or outside. Also, they have an
accumulating incentive scheme in which employees can accumulate incentives and get them
annually with interest. To meet the new demands of the business and to motivate the employees
for higher performance, they have started linking a part of the salary increase to individual
performance measures as variable pay. At present, between 6 to 8 percent of the compensation
is variable pay, which they are planning to increase over a period of time. Executives are
categorized in levels based on their performances in a relative ranking and based on outcome
performance linked pay is awarded. Goal-Setting Model A goal setting program in an
organization requires careful planning. As shown in the figure, the first three factors in goal
setting process are establishing the goal, achieving goal commitment, and overcoming
resistance to goal acceptance. Goals can be established in a variety of ways. Best way is to set
by joint participation between the employee and the supervisor. This method often leads to
employee commitment, a crucial ingredient in effective goal setting.

45
 Goal Setting S.M.A.R.T. Goals
➢ Specific – precise and detailed
➢ Measurable – with criteria for determining progress and success
➢ Achievable – attainable and action-oriented
➢ Realistic – relevant and aligned
➢ Time-related – grounded within a time-frame For this purpose, an online
template is circulated in the organization.

Measurable – with
Achievable –
Specific – precise and criteria for
attainable and
detailed determining progress
action-oriented
and success
Time-related – grounded
within a time-frame For
Realistic – relevant this purpose, an online
and aligned template is circulated in
the organization.

Superiors fill out that form keeping in view the performance of their subordinate over the year.
This feedback becomes the basis of the promotion of the employees.
Superior is responsible for categorizing the employess in four category, namely – A,B,C,D
This categorization is done both on the basis of performance and the goals they were given.
This whole system is commonly known as 90 degree appraisal system also called 2 tiers.

TATA motors has been implementing Performance Appraisal which helpful in

assessing the performance and progress of an employee or a group of employees on a given
job and his / their potential for future development it applies appraisal & reward appraisal,
reward, carrier design, retention and employee welfare. quality circle in their organisation to
motivate employees.

16. PERFORMANCE IMPROVEMENT PROGRAMME AT TATA MOTORS

46
As part of its endeavour to nurture a culture of performance and accountability, Tata Motors has
announced the introduction of a performance improvement programme (PIP). The PIP is meant
for employees who have received a rating of ‗Not Met‘ in the last performance cycle. Employees
who have received a rating of ‗Partially Met‘ consecutively for the last two performance cycles
will also be covered under this programme. Some employees who have received a rating of

‗Partially Met‘ in the last performance cycle will also be included in the plan based on their
manager‘s discretion.

Traditionally, companies have a performance cycle where feedback is given to employees once a
year. However, nowadays the progressive companies have adopted the practice of quarterly
reviews. The PIP, which will run for 90 days will give clearance to all the employees who are
reviewed as ‗On Track‘. The programme will be conducted by business HRs and other senior
managers. Generally, low-performing employees are put under such a programme so that they can
be trained and guided properly to perform well in the future. However, the employees who fail to
show any progress during the 90- day PIP will be put under an extended PIP for another 45 days
to give them a second chance to prove their ability to perform. The extended programme will be
reviewed by the skip managers or senior managers. The employees who fail to prove their mettle
in the extended PIP will be shown the door. The decision of the managers and the skip managers
will be final and binding. In most companies, the PIP lasts for around three to six months but with
the disruption of technology, digital skills have become very vital and rare in the job market. In
such cases, the PIP can be extended to nine months. It depends on the role or position of the
employee. During a PIP, a low performer is put under training with the supervising manager. The
manager regularly updates the organisation on the progress of the employee. Sometimes, the low
performers are also put to work with some of the best performers to motivate their spirits. Apart
from that, regular coaching and mentoring is done by the managers. A PIP is generally treated as
a filtering mechanism, where the organisation identifies the poor performers, and gives them a
chance to improve over a few months. However, if nothing comes out of the exercise, they are
asked to leave. The most important factor in a PIP is being fair and objective in the whole review
process. It is also important to take regular feedback from the employees. After all, it is essential to
find out the reason why they are not performing and remove the demotivating factors hindering their
productivity. Such activities help organisations identify, train and filter out the low performers.

47
 1.3 PRODUCT PROFILE

CASE STUDY OF TATA NANO AT TATA MOTORS REGARDING PERFORMANCE

MANAGEMENT

The Tata Nano is a compact city car that was manufactured and marketed by Indian automaker
Tata Motors over a single generation, primarily in India, as an inexpensive rearengined hatchback
intended to appeal to current riders of motorcycles and scooters — with a launch price of one lakh
rupees or US$2500 in the year 2008. Tata Motors projected production figures of 250,000 annually
at launch. This was not achieved, and various factors led to decline in sales volume, including
delays during the factory relocation from Singur to Sanand, early instances of the Nano catching
fire or the perception of the car being unsafe and lacking quality due to cost cutting. Actual sales
reached 7,591 for model year 2016-2017. The project lost money, as confirmed by former Tata
Sons chairman Cyrus Mistry and by 2017 Tata Motors management. In 2017, Tata Motors said
manufacturing would continue due to the company's emotional commitment to the project.
Production was eventually halted in May 2018.

48
1. INSPIRATION BEHIND TATA NANO

India is a country with a population of 1.38 billion and only 1.5% people own a car
and for some it is just a dream to own one someday. People usually own motorcycles
which are used for all purposes of the family. A family of Husband-Wife and their
children travel on one scooter or motorcycle wherein the little child stands in front of
the father due to insufficient space.
The Chairman of Tata Motors and business tycoon, Ratan Tata, got struck with the idea
of creating a car for such families when he noticed them riding on these scooters and
motorcycles with so many difficulties multiple times at traffic signals. He also notices
that these people also travel during monsoon to their work places and also along with
their family. In a documentary regarding the making of Tata Nano, he described an
incident where he saw a family of four people riding a motorcycle during monsoon and
due to slippery roads, the motorcycle slipped and they fell off in the muddy water
puddle on the road.
It was with this incident when Mr. Ratan Tata came to a decision of making a car which
would be easily affordable for such families. At that time during 2003, the cheapest car
in India was for about Rs.2,05,000 which was the Maruti Suzuki 800. So, Mr. Tata
wanted to create a car small like the Maruti 800 but wanted to keep a very minimal
price which the motorcyclists could afford. Hence, he called off the price of the car to
be Rs.1,00,000 and then he started to think of the design which would suit the purpose
of small and compact yet of good performance.
Therefore, after going through a lot of designs for the car, finally, he approved the
design of the Tata Nano which looked like a crooked nose or a bent nose. And hence
the manufacturing started.

49
 2. PERFORMANCE MANAGEMNT DURING THE MAKING OF
THE TATA NANO

➢ Meditation: Tata Motors came up with the meditation programs for the workers to keep
their mind healthy and fresh so that they could focus on their work and can at the same
times remain healthy.

➢ Assembly: Men and Women both were time to time trained to increase their speed onto
the assembly of the engine blocks for greater productivity as the engine blocks could not
be assembled by automatic machines in the factory.

➢ Minimalist Approach: They educated their workers about the plans of being minimalistic
in the making of the tata nano ehich they previously were not used to but tata motors took
up informative workshops to educate about the same as it was going to
be ―THE CHEAPEST CAR‖.

50
 CHAPTER-2

DEVELOPMENT OF MAIN
THEME

2.1 NEED OF THE STUDY

This study helps to identify how Performance Management is carried out by the company (Tata
Motors), the necessary aspects while managing the performance.

This study also helps in knowing the practicality of performance management in different
situations while handling all the conflicts and at the same time meeting organizational goals.

The need for the study also arises to identify and offer additional performance management
schemes and to know the perception of the employees/workers regarding the whole process of
performance management that is being carried out at their company.

51
 2.2 OBJECTIVES OF THE STUDY

PRIMARY OBJECTIVES

➢ To understand the Performance Management function of Human Resource Management

in an organisation

SECONDARY OBJECTIVES

➢ To find out the performance management at Tata motors

➢ To identify the strengths and weaknesses of the company‘s performance management

system

➢ To study the case of Tata Nano with reference to Performance Management

➢ To identify the worker‘s perception about the company and its management and
appraisal system

➢ To know about the various performance management and appraisal techniques adopted
by Tata Motors for its workers

➢ To find out whether gender bias exists at Tata Motors among the workers with reference
to Performance Management

➢ To analyse the awareness of importance of Performance Management system in an

organisation

52
 2.3 SCOPE OF THE STUDY

This study has a wider scope among the corporate sector. This study which focuses on various
aspects such as competitive position of Tata Motors, performance management at
Tata Motors, employee‘s perception, etc also holds good for other companies in the
competitive corporate sector.

The outcome of the study, which is based on the above aspects can be utilized by the human
resource department of other competitive companies.

The result of this research would help the company to have a better understanding about the
employee‘s perception towards the performance management carried out by them.

The study helps the company by creating awareness about the performance management of
employees of different ages and income levels.

The study also enables the company to focus the employee‘s perception and expectations on
the performance rewards they offer.

2.4 LIMITATIONS OF THE STUDY

53
There were certain limitations in undertaking this research work. As it is understood that the
limitations are a part of the project, they have been overshadowed by the benefits of the study. The
limitations are as follows:-

➢ The survey was conducted by sending the Google form due to the existence of the
Coronavirus pandemic so there was no personal interaction so anything could be
misinterpreted.

➢ The survey conducted may not be considered as comprehensive as only limited respondents
could be contacted because of the time constraint.

➢ Objectives and the purposes of the study and the questions had to be explained to the
representative and the responses of the respondents may be biased due to perception
barriers or miscommunication.

➢ As stated by the representative, some of the respondents were reluctant to give their
responses.

➢ Only limited sample size had been considered for the study and therefore, the conclusions
drawn based on this may not be a reflection of the entire organisation. The sample size
chosen for the questionnaire was only 30 and that may not represent the true picture of the
employee perception about the Performance Management carried out at their organisation.

a) Nearly 83.33% of the respondents belonged to the age group of 20-50 years and only
16.67% were above the age of 50 years. So, the responses and the opinions of the
experienced and senior most employees were not available. So, the findings may not
be correct when we think about the opinion of the senior employees about the
performance management carried out at their company.
b) The selection of employees for the questionnaire was done on the basis of convenient
random sampling, so, there were certain cases in which the people selected did not have
any experience of the process of performance management carried out at their

54
 company, so they could not give any positive feedback regarding the important details
regarding the performance management in their organisation.

c) Nearly 1% of the employees were newly appointed in the company so the results may
not be authentic in that case.

2.5 LITERATURE REVIEW

Performance management and assessments have always proved a crucial way to assess employee
productivity and create the right basis for employee promotion and appreciation. A robust
performance management system plays an important role in helping companies determine the
55
efficacy of their workforce while ensuring employees have a clear idea of the important parameters
of assessment. With such an important role, it's of little wonder that 2019 has witnessed many
companies experiment with the right way to undertake performance management and technology
has had a central role in play in many of such changes. For companies, getting performance
management right has become imperative. With external market conditions becoming more
competitive and technology disrupting much of how business once used to happen, having the
right performance management system in place means having a clear idea where and how to make
employees more productive. It also helps companies address inefficiencies in their workforce and
develop the people with the right fit and skills even further.

With this intent in mind, it comes as little surprise how the relevancy of updating the performance
management system has become an important HR priority. A Gartner report notes that a vast
majority of HR leaders (84%) are working to fix their performance management systems. Also, to
making the process more impactful, factors like perception of performance management as
bureaucratic, costly and of the low-value processes make it important for HR professionals to
revamp performance management to make it more robust. The year saw a shift of many companies
moving away from traditional, often annual ways of addressing performance issues and taking up
a rather dynamic approach. The best companies are shifting away from rigid systems toward a
more flexible approach that reinforces the critical behaviors that matter every day and aligned
individual work with organizational goals. Effective performance management includes providing
meaningful, real-time feedback; ensuring that employees have clear expectations; and coaching
employees to achieve their maximum performance levels. The following aspects of performance
management took center stage this year

Compensation models: Today there is a need to measure performance more accurately.

Employees, especially in companies that operate in highly disruptive industries like tech and
finance, often work through different projects and cross-functional teams/ Performance
management as a result too has become more holistic. 360-degree review, for example, is slowly
becoming accepted as a form of performance review and helps make the entire process more
adaptive.

56
Employee experience and development: Employee experience has become an important factor
to influence performance management systems. Much like how other aspects of modern-day HR
take employee experience into account, performance management systems have begun doing the
same. Today employee experience refers to the culture that the employees are a part of through
their entire interaction with the company. The process has been made to feel less transactional and
cumbersome for employees and helps in enabling employees to improve their overall performance.
Managers too are being trained on having performance-based discussions that help address gaps
and make employees more productive.

Role of technology: The growing role of HR tech has enabled performance management to be
more data-driven and take into account a larger set of data to remove bias. The digital technologies
within performance management have made it more real-time and impactful in driving
productivity. But with such a rise, there also is the need to build the right ways to leverage tech.
With the application of AI and automation increasing, HR professionals will aim to create more
robust and meaningful performance reviews, in the coming years.

Succession planning and training gaps: Performance management systems have been tuned to
create ways of assessing competency gaps and developing talent. HR professionals can leverage
such systems to identify high performing talent and plan leadership succession with greater
accuracy. By building systems that are continuous and involve a 360-degree performance review,
HR professionals can contribute more strategically to businesses and channelize efforts to retain
key talent.

The bedrock many such changes in performance management in recent years has been
in the case of improving the effectiveness of such systems in the first place. Usually being a
cumbersome process and one that many dreaded, the aim of performance management to make an
employee more productive has been an important force of change this year. This shift is important
as many companies have begun extending this concept to undertake performance management
more continuously. In an attempt to make change performance management from a periodic,
transactional, and often tick in the box activity, HR professionals are actively trying to use it to
add more value to employee work.

57
 CHAPTER -3

ANALYSIS &
INTERPRETATION
3.1 RESEARCH METHODOLOGY

Methodology is a systematic way of solving a problem. In other words, it includes the

research methods for solving a problem.

58
 Type of research - Descriptive research
Data source -Primary and Secondary data
Data collection method -Survey through Google form
Data collection tools -Questionnaire
Sampling universe - Tata Motors, Gurgaon
Sample size -30

SAMPLE DESIGN
The target respondents of the study consist of various employees of Tata Motors,
Gurgaon. This survey was done by collecting the data from the respondents through Google
form.

SAMPLE SIZE
After due consultation with the company supervisor about the availability of employees,
also keeping in mind the requirements of the aspects for the research, the sample size that was
found to be appropriate for the study was 30.

SAMPLING TECHNIQUE
The sampling technique that adapted to conduct the survey was ‗Convenient Random
Sampling‘ and the area of the research was concentrated at the Tata Motors, Gurgaon branch only.
The survey was conducted by sending the Google from to one of the representative of the company
and requested to send it across to the employees for getting it filled within a stipulated time.
DATA SOURCE
The task of data collection begins after a research problem has been defined. In this study
data was collected through both primary and secondary data source.

A. PRIMARY DATA
A primary data is a data, which is collected for gathering information first time and to
analyze the problem. In this study the primary data was collected among the employees of the
organisation using questionnaire.

59
 B. SECONDARY DATA
Secondary data consist of information that already exists somewhere, having been
collected for some other purpose. In this study secondary data was collected from company
websites, magazines and brochures, articles available online.

STATISTICAL TOOLS
Simple percentage analysis, ranking method and chi square analysis are the main statistical
tool used for the study.

1. SIMPLE PERCENTAGE ANALYSIS

Percentage refers a special kind of ratio in making comparison between two or more data
and to describe relationships. Percentage can also be used to compare the relation between two or
more sources of data.

Percentage of respondents = Number of respondents * 100

Total respondents

2. MEAN (ARITHEMETIC MEAN)

Arithemetic Mean is the sum of a collection of numbers divided by the count of numbers
in the collection. The collection is often a set of results of an experiment or an observational
study, or frequently a set of results from a survey.
Mean Formula used:

60
REPRESENTATION OF DATA

1. PIE CHARTS: A pie chart (or a circle chart) is a circular statistical graphic, which
is divided into slices to illustrate numerical proportion.

Formula to calculate degree = x 360◦

2. BAR GRAPHS: A bar chart or bar graph is a chart or graph that presents
categorical data with rectangular bars with heights or lengths proportional to the values that they
represent.

3. SIMPLE TABULAR REPRESENTATION: A Simple Tabular representation of

data was used for the collected results of the survey to represent and group them in categories for
simpler interpretation.

4. LINE GRAPHS: Line graph depicts a line joining points to show variation or
changes in something. Here it was used to show changes in ranking.

3.2 ANALYSIS AND INETERPRETATION

SEGMENTATION OF THE RESPONDENTS ON THE BASIS OF CERTAIN IMPORTANT

CRITERIA
Now, let us turn our attention towards the respondent who were covered under this study. These
respondents can be categorized on the basis of certain important criteria like age group, annual
income, gender, no. of years working with Tata Motors.

61
1. SEGMENTATION ON THE BASIS OF AGE GROUP

AGE GROUP [Link] RESPONDENTS PERCENTAGE

(in years) (employees)

Below 30 years 4 13.33%

30-40 9 30%
40-50 12 40%
50-60 3 10%
Above 60 years 2 6.67%

TOTAL 30 100

INTERPRETATION: From the above table, we can see that 13.33% of the employees
(respondents) belong to the age group below 30 years, 30% of the employees (respondents) belong
to the age group of 30-40 years, 40% of the employees (respondents) belong to the age group of
40-50 years, 10% of the employees (respondents) belong to the age group of 50-60 years and about
6.67% of the employees (respondents) are above the age of 60 years.

The no. of respondents is shown on the y-axis and the age groups are shown on the x-axis.

62
 Age Groups
45
40
35
30
25
20
Percentage
15
10
5
0
Below 30 30-40 years 40-50 years 50-60 years Above 60
years years

2. SEGMENTATION ON THE BASIS OF GENDER

Gender No. of Respondents Percentage

Male 21 70%
Female 9 30%
Other 0 0%

Total 30 100

INTERPRETATION: In the above table, we can see that 70% of the respondents i.e employees
are males and 30% of the respondents i.e employees are female and there are 0% respondents i.e
employees from the other gender.

The no. of respondents is shown on the y-axis and the gender is shown on the x-axis.

63
 Segmentation of the respondents
(employees) on the basis of gender
80
70
60
50
Percentage of the [Link]
40
employees
30
(respondents)
20
10
0
Male Female Other

3. EXPERIENCE OF WORKING AT TATA MOTORS ([Link] YEARS worked with Tata

Motors)

[Link] Years of Experience [Link] Respondents Percentage

Less than 1 year 3 10%
2-5 years 6 20%
5-7 years 12 40%
More than 7 years 9 30%

Total 30 100

INTERPRETATION: As seen in the above table, 10% of employees (respondents) have an

experience of working with Tata Motors for less than a year, 20% have worked with the company
for about 2 to 5 years, 40% have a working experience of about 5 to 7 years and only 30% have
an experience of more than 7 years working with Tata Motors.

The no. of respondents are shown on the y-axis and the [Link] years are shown on the x-axis.

64
 SEGMENTATION ON THE BASIS OF [Link]
YEARS OF WORKING WITH TATA MOTORS
45
40
35
30
25
20
[Link] Respondents
15
10
5
0
Less than 1 2-5 years 5-7 years More than 7
year years

4. SEGMENTATION ON THE BASIS OF ANNUAL INCOME

Table 4.1
ANNUAL INCOME (in No. of Respondents Percentage
rupees)

2-4 Lakhs 6 20%

4-6 Lakhs 5 16.67%
6-8 Lakhs 9 30%
8-10 Lakhs 10 33.33%

Total 30 100

Mean Income:-
Table 4.2

65
 Annual Income No. of employees Class Mark (X) fX
(Class Interval) (frequency)
2-4 Lakhs 6 3 18
4-6 Lakhs 5 5 25
6-8 Lakhs 9 7 63
8-10 Lakhs 10 9 90
Total ∑f = 30 ∑fx = 196

Mean Lakhs

INTERPRETATION: As seen in Table 4.1, 20% respondents (employees) fall in the category
of annual income of rupees 2 to 4 Lakhs, 16.67% have an annual income of about rupees 4 to 6
Lakhs, 30% have an annual income between rupees 6 to 8 Lakhs and about 33.33% respondents
(employees) have an annual income ranging between rupees 8 to 10 Lakhs. Also, as seen in Table
4.2, the mean annual income of the employees (respondents) is Rs. 6.53 Lakhs.

The no. of respondents is shown on the y-axis and the annual income is shown on the x-axis.

66
 Annual Income
35

30

25

20

15 Percentage

10

0
2-4 Lakhs 4-6 Lakhs 6-8 Lakhs 8-10 Lakhs

ANALYSIS AND REPRESENTATION OF THE DATA ACQUIRED FROM THE

RESPONDENTS (THROUGH SURVEY i.e via Google form)

67
1. TRAINING FOR JOB AT WORKPLACE

Response No. of Respondents Degree

Yes 18
360◦ = 216◦
No 3
× 360◦ = 36◦
Kind of 9
108◦

Total 30

INTERPRETATION: From the above table, we can comprehend that 18 respondents feel that
they were provided with complete training for their job at the workplace, 3 employees feel that
they were not provided training at their workplace and 9 feel that they were kind of provided
with training, meaning that they feel it‘s in between yes and no.

REPRESENTATION OF RESPONSE ABOUT

TRAINING AT WORKPLACE

Yes
No
Kind of

68
2. FORMAL PERFORMANCE MANAGEMENT SYSTEM

Response No. of Respondents Degree

Yes 27
× 360◦ = 324◦
No 3
× 360◦ = 36◦

INTERPRETATION: Through the survey, in this question, the respondent was asked whether
he/she feels that their organisation (Tata Motors) is carrying out a formal performance
management system and as we can see in the results, 27 employees feel that Tata Motors carries
out a formal performance management system whereas only 3 feel that they do not.

RESPONSE ON THE FORMAL PERFORMANCE

MANAGEMENT SYSTEM

Yes
No

69
3. PERSON WHO SETS UP GOALS FOR INDIVIDUALS

Person No. of Respondents Degree

Senior Manager 6 × 360◦ = 72◦

Line Manager/Team Leader 5

× 360◦ = 59.9◦ OR 60◦
HR Professionals 19
× 360◦ = 227.9◦ OR 228◦

INTERPRETATION: From the acquired data, we can understand from the above tabular
representation that Senior Manager sets up performance goals/ requirements of 6 employees,
Team Leaders in accordance with other seniors sets up for 5 employees and HR professionals set
up for 19 employees.

RESPRESENTATION OF THE ABOVE TABLE

Senior Manager

Line Manager/
Team Leader
HR Professional

4. PERSON WHO CARRIES OUT PROCESS OF PERFORMANCE MANAGEMENT

70
INTERPRETATION: Clearly, the response denoted 30 responses on the Professionals and
hence it was interpreted that the HR Professionals take up the Performance Management system
process at Tata Motors. The other options included Senior Managers, Team leaders and Blue
collar persons but all the 30 respondents (employees) responded that the HR Professional take up
this job of the process of Performance management at their organisation (Tata Motors).

5. TECHNIQUES FOR ASSESSING PERFFORMANCE

Techniques No. of Respondents Degree

Observation 14
× 360◦ = 167.9
Assessment & Development 6
Centers × 360◦ = 72◦
Checklists 10
× 360◦ = 119.9◦

INTERPRETATION: From the above tabular representation of the collected data we can see
that 14 employees feel that the technique that is used for assessing performance at their
organisation is through observation, 6 employees feel that the technique is by assessment and
development centers and 10 employees feel that it is done by checklisting.

71
 TECHNIQUES OF ASSESSING PERFORMANCE

observation

Assessment &
Development
Centers

6. MOST USED METHODS OF PERFORMANCE MANAGEMENT

Methods of No. of Respondents by way of ranking

Performance ( 1 being highest [Link] times and 5 being lowest [Link] times)
Management

RANK 1 RANK 2 RANK 3 RANK 4 RANK 5

Key 11 8 6 3 2
Performance
Indicators &
KRAs
360 Degree 4 5 7 8 6
Feedback
Management by 9 7 6 3 5
Objectives
Reward & 10 11 5 2 2
Recognition
Programs

72
 Personal 6 7 5 6 6
Development
Plans

INTERPRETATION: From the above data, we can see that the most used method of
performance management is Key Performance Indicators & KRAs according to 11 people and
the least used method is 360 Degree Feedback and the second most used method is Reward &
Recognition Programs according to 10 people and the second least used method is Personal
development plans.

The Ranks are shown on the x- axis and the methods are shown on the y-axis.

73
74
7. FREE OF COST MEDITATION PROGRAMS AT TATA MOTORS

Options No. of Respondents Degree

Once in a year 6
× 360◦ = 72◦
Once in 2 years 1
× 360◦ = 12◦
Twice a year 23
× 360◦ = 276◦
Once in 5 years 0 0◦

INTERPRETATION: From the above collected data, we can comprehend that according to 6
respondents (employees), Tata Motors provides their employees with free of cost meditation
programs once in a year to inculcate peace of mind for greater productivity, only 1 person they
provide it once in 2 year, 23 respondents (employees) have experienced it twice in a year and 0
people said that the program takes place once in 5 years. Hence, it was observed that Tata
Motors conducts the program twice in a year.

75
 FREE OF COST MEDITATION

Once in a year

Once in 2 years

Twice a year

8. RELATIONSHIP OF EMPLOYEES WITH THEIR SUPERVISOR/MANAGER

Relationship No. of Respondents Percentage

Healthy 13 43.33%
Professional only 5 16.67%
Over-friendly 4 13.33%
Very negative 0 0%
Neutral 8 26.67%

Total 30 100

INTERPRETATION: As seen in the above table, it can be understood that 43.33% employees
have a healthy relationship with their manager/supervisor, 16.67% employees have only a
professional relationship with their manager/supervisor, 13.33% employees have an over friendly
relationship with their supervisor and only 26.67% employees have a neutral relationship with
their managers.

The percentage of no. of respondents is shown on the y-axis and the relationship is shown
on the x-axis.

76
 Relationship of employees with their
managers/ supervisor
14

12

10

6 Percentage

0
Healthy Professional only Over-friendly Neutral

9. TWO WAY COMMUNICATION BETWEEN MANAGER AND EMPLOYEE

Options No. of Respondents Percentage

Very often 5 16.67%
Often 23 76.67%
Rarely 2 6.67%
Very rarely 0 0%
Never 0 0%

Total 30 100

INTERPRETATION: From the above table of the collected data, we can clearly see that all the
employees have a two way communication with their supervisors and 16.67% employees have
the communication very often, 76.67% have it often and only 6.67% people have it rarely. Also,
0% people have it very rarely and never.

The percentage of no. of respondents is shown on the y-axis and the [Link] times is shown on
the x-axis.

77
 Percentage
90
80
70
60
50
40
30
Percentage
20
10
0
Very often Often Rarely

10. WORDS OF AFFIRMATION BY THE MANAGERS

No. of times No. of Respondents Percentage

Always 13 43.33%
Sometimes 8 26.67%
Depends 9 30%
Never 0 0%

Total 30 100

INTERPRETATION: From the above table, we can see that the managers praise their juniors
with words of affirmation when they complete their tasks and for good performance. 43.33%
employees feel that their managers always praise them, 26.67% feel that their managers praise
them sometimes and 30% people feel that it depends from time to time on the situation.
Moreover, nobody feels that their managers never praise them.

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The percentage of no. of respondents is shown on the y-axis and the [Link] times is shown on
the x-axis.

EMPLOYEES' RESPONSE TO THE DATA

50
45
40
35
30
25
Percentage of Responses
20
15
10
5
0
Always Sometimes Depends

11. LINK BETWEEN PERFORMANCE PAY AND PERFORMANCE MANAGEMENT

Relation No. of Respondents Percentage

Performance linked incentives 18 60%
Promotions along with salary 6 20%
increase

Provision of Fringe benefits 6 20%

Total 30 100

INTERPRETATION: According to the employees, 60% employees feel that Performance

linked is related to incentives of performance management, 20% feel that it is linked with
promotions along with salary increase and the remaining 20% feel that it is linked with provision
of fringe benefits.

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The percentage of no. of respondents is shown on the y-axis and the percentage of responses
is shown on the x-axis.

70

60

50

40

30 Percentage of
responses
20

10

0
Performance linked Promotions along Provision of Fringe
incentives with salary benefits
increase

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12. RANKING OF THE PROCESSES OF THE PERFORMANCE MANAGEMENT
SYSTEM

Processes of No. of Respondents by way of ranking (

Performance 1 being highest and 5 being lowest)
Management

RANK 1 RANK 2 RANK 3 RANK 4 RANK 5

Coaching 10 6 8 3 2
Training & 9 7 7 2 2
Development

Career 6 3 10 6 8
management &
development
plans

Succession plans 3 10 3 13 8

Meditation 2 4 2 6 10
programs

INTERPRETATION: From the above acquired data, we can see that ‗Coaching‘ is the most
implemented process of performance management i.e according to 10 employees (33.33%) and
‗meditation programs‘ are the least implemented process of performance management i.e
according to only 10 employees (33.33%) it is the least implied process.
Furthermore, according to 2 employees i.e 6.67% employees, ‗coaching‘ is the least implied
process and according to 2 employees i.e 6.67% employees, ‗meditation programs is the most
implied process at Tata motors.

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82
13. REASONS FOR PERFORMANCE MANAGEMENT- Point of view of employees

Reasons No. of Respondents Degree

Retention Strategy 6 × 360◦ = 72◦

Reward Allocation 4
× 360◦ = 48◦

Identification of Training & 4 ×360◦ = 48◦

Development needs

Facilitates promotions & 3 × 360◦ = 36◦

Transfers & Termination
decisions

To clarify an employee‘s job 3 ×360◦ = 36◦

requirements

To identify barriers to 4
performance × 360◦ = 48◦

Motivational strategy 6
× 360◦ = 72◦

Total 30 360◦

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INTERPRETATION: From the above table we can see that, the most opted reason for
performance management according to the employees are ‗Retention strategy‘ and ‗motivational
strategy‘ i.e according to 6 employees each. Moreover, the least opted reason for the performance
management are ‗facilitates promotion & Transfers & Termination decisions‘ and
‗To clarify an employee‘s job requirements‘ i.e according to 3 employees each.

Responses
Retention Strategy

Reward Allocation

Identification of Training &

Development needs

Facilitates promotions &

Transfers & Termination
decisions
To clarify an employee’s job
requirements

To identify barriers to
performance

Motivational strategy

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14. STAGES IN WHICH THE SUPERIOR COMMUNICATION THE MOST

Stages No. of Respondents Degree

Goal setting stage 15
× 360◦ = 180◦
Data gathering stage 6
× 360◦ = 72◦
Mid-term requirements 7
× 360◦ = 84◦
Annual Reviews 2
× 360◦ = 24◦
Total 30 360

INTERPRETATION: As we can see in the above table, according to 15 employees ‗goal

setting stage‘ is the reason why the superiors communicate the most with their team members, 6
employees believe that ‗data gathering stage‘ is the reason for the most communication, 7
employees feel ‗mid-term requirements‘ is the reason and ‗annual reviews‘ is the main reason
according to 2 employees.

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 Goal setting stage

Data gathering stage

Mid-term
requirements
Annual Reviews

15. CONSEQUENCES OF POOR PERFORMANCE

Consequence No. of Respondents Degree

Training 8 96◦
Improvement (Coaching) 17 204◦
Relocation 3 36◦
Dismissal/Discharge 2 24◦
Total 30 360

INTERPRETATION: From the above table, we can see that at Tata Motors, according to the
employees, the consequence of poor performance is ‗Improvement‘ according to 17 employees,
‗training‘ is the consequence according to 8 employees, ‗relocation‘ is the consequence according
to 3 employees, ‗Dismissal/Discharge‘ is the consequence according to 2 employees.

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 Training

Improvement
(Coaching)
Relocation

Dismissal/Discharge

16. OPINION ON CHANGE OF SYSTEM OF PERFORMANCE MANAGEMENT

Option No. of Respondents Degree

Yes 3 36◦
No 27 324◦
Total 30 360◦

INTERPRETATION: From the above collected data, we can see that 90% employees feel that
there is no need for the change in the current system of performance management at Tata Motors
whereas on the other hand, 10% employees feel that there is a need for the change in the
performance management system at Tata Motors.

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 Yes
No

17. STRATEGIES LINKED FOR INCREASED EFFECIENCY

Strategies No. of Respondents Degree

Reward Strategy 19 228◦
Team work strategy 2 24◦
Culture strategy 3 36◦
Leadership strategy 6 72◦
Total 30 360◦

INTERPRETATION: From the above collected data from the questionnaire, we can understand
that ‗Reward strategy‘ is the most linked strategy to performance management according to 19
employees, ‗team work strategy‘ is the least linked according to 2 employees, ‗culture strategy is
the second least linked according to 3 employees and lastly ‗leadership strategy‘ is the second
most linked strategy according to 6 employees.

88
 Reward Strategy
Team work strategy
Culture strategy
Leadership strategy

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 3.3 FINDINGS

The findings that can be drawn from the survey conducted can be summarized in the following
way:-
1. Tata Motors provides all the training for the work to be done at the workplace according to
60% of the employees.
2. A very formal and systematized conduct of Performance Management takes place at the
organisation.
3. All the setting up of goals and objectives for the employees of the organisation is done by
HR Professionals instead of Senior Managers or Team Leaders in most cases.
4. The process of Performance Management is also carried out by the HR Professionals.
5. At Tata Motors, the assessment of performance is done by Observation, via Assessment
and development centers and by Checklisting but the most preferred technique is by
Observation.
6. Although Tata Motors provides free of cost meditation programs to its workers and
employees in order to keep the mind in peace and good health to increase and make the
performance efficient but the program usually takes place twice in a year.
7. At Tata Motors, almost 50% of the employees have a healthy relationship with their heads
and about 30% have a neutral relationship i.e work related positive relationship.
8. The managers/heads at Tata Motors are very professional and hence follow all the
motivational strategies to enhance performance as well as growth by communicating and
maintaining a two way communication and also praising and recognizing the efforts and
good performance when the employees complete targets and enhance their performance by
words of affirmation like good, keep it up. This professionalism of the heads is one of the
reasons why Tata Motors is at such position as it is today.
9. Performances are directly linked with incentives which work as a motivation for the
employees in the organisation.
10. The most implemented process of performance management is ‗Coaching‘ at Tata motors
and the least is ‗meditation programs‘.

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11. According to the employees of the organisation, Retention Strategy is the main and
foremost reason as to why performance management is carried out along with Motivational
Strategy.
12. The Managers interact/communicate with the employees the most on matter relating to goal
setting stage of performance management process and whenever it is required during the
functioning of the process and ordinary functioning of the organisation.
13. Also, when the employees‘ performance is poor in comparison to others or accordinbg to
the set targets then the employee is provided with improvement coaching on matters how
to enhance the performance and cope up in the current situation.
14. The employees of Tata Motors are very happy and satisfied with the process of
Performance Management that is carried out at their organisation and do not feel that there
is a need for a change in the performance management system.

91
 3.4 SUGGESTIONS

1. Tata Motors should focus a little more on developing a good relationship with their
employees as it is directly related to the performance enhancement.
2. They should try out other methods of performance management like Managemnt by
objectives, 360 Degree Feedback in order to know if it enhances their employees‘
performance.
3. Some of the employees have a neutral relationship with other employees and hence they
should conduct some off the job activities to inculcate a sense of belongingness as it will
create good team work characteristics.
4. This study can be of great use to Tata Motors as they can use it to look out onto the
shortcomings which their employees feel are lacking in their performance management
system so that they can improve and find solutions for the same.

92
 3.5 CONCLUSION

Performance Management is an integral part of the process and functions of Human Resource
Management as without it the company cannot assess its outcomes and performance efficiencies.

Hence, a company like Tata Motors values their employees and treats them like assets and not like
an expenditure which is why their employee retention is so strong and even after the employees
have so much work stress, still they are very peaceful in their mind due to the healthy and positive
environment that exists at their organisation along with the best of the supervisors to motivate and
find out the loopholes and correct them.
Tata Motors is one of the best examples to study the performance management system and
understand the benefits and outcomes it gets to the companies.

93
 3.6 BIBLIOGRAPHY

WEBSITES:-

➢ [Link]
➢ [Link]
➢ [Link]
➢ [Link]
➢ [Link]
➢ [Link]
➢ [Link]
➢ [Link]
➢ [Link]
➢ [Link]
➢ [Link]
➢ [Link]

BOOKS:-

➢ Pearson‘s Performance Management by Herman Aguinis

➢ Next Generation Performance Management; The Triumph of Science Over Myth and
Superstition by Alan L. Colquitt
➢ Performance Management System by R.K Sahu
➢ Performance Management: Toward Organisational Excellence by T.V Rao

94
 3.7 APPENDIX

A Study of Employee‟s Perception Towards the Performance Management system at Tata

Motors

Questionnaire

Dear respondent,
This questionnaire is aimed at understanding your perception about you organisation. Your
response will be dealt with strict confidentiality and it will be used only for academic purpose.
Thank you for spending your valuable time to fill this questionnaire.

1. Name: Gender: Male Female

Contact No:

2. Age Group:
20-30 years 30-40 years 50-60 years
Above 60 40-50 years

3. Educational Qualification:

Under Graduate Post Graduate Diploma

Others (Specify)……………

4. Annual Income Level:

2-4 Lakhs 4-6 Lakhs 6-8 Lakhs

8-10 Lakhs

5. [Link] years you have been working with Tata Motors:

Less than 1 year 2-4 years 5-7 years

More than 7 years

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6. Were you given complete training for the job at your workplace?

Yes No Kind of

7. Does your organisation perform a formal performance management system?

Yes No

8. Who sets the performance goals/requirements for individuals?

Senior Managers Line Managers/ HR Professionals

Team Leaders

9. Who carries out the performance management system process in your organisation?

Senior Managers Team Leaders Blue Collar

HR Professionals

10. What are the techniques that are used in your organisation for assessing performance?

Observation Assessment and Checklists

development centers

11. Which of the following methods of performance management are used? Rank them from
1-5, 1 being the highest [Link] times and 5 being the lowest [Link] times.

Key Performance Indicator and KRAs

360 Degree Feedback
Management by Objectives
Reward & Recognition Programs
Personal Development Plans

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97
 18. According to you what is the reason you feel personally that performance management is
carried out at your organisation?

Retention Strategy
Reward Allocation
To identify barriers to performance
Motivational Strategy
Identification of Training & development needs
Facilitates promotions & transfers & termination decisions
To clarify an employees‘ job requirements

19. What are the stages in which your supervisor/manager communicates the most with you?

Goal-setting stage Data gathering stage

Mid-term requirements Annual reviews

20. What happens with employers who have poor performance after the review session?

Training Relocation
Improvement Coaching Dismissal/Discharge

21. Do you think there is a need of change of the whole performance management system and
process in your organisation in the next 12 months?

Yes No

22. What strategies of your organisation have been linked to the performance management
systems to make it more effective?
Team work Strategy
Culture Strategy Leadership Strategy
Reward Strategy

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23. Suggestion:

__________________________________________________________________________

99