NAME – JANHAVI VIJAY KOLHE

CLASS – TYBMS HR

DIVISION – “ C ”

ROLL NO – 8615

SUBJECT –PERFORMANCE APPRAISAL

TOPIC- REPORT ON PERFORMANCE MANAGEMENT OF TATA MOTORS

TATA MOTORS

About the company

 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 is an Indian multinational automotive manufacturing company,

headquartered in Mumbai, Maharashtra which is part of Tata Group. The company produces
passenger cars, trucks, vans, coaches, buses, sports cars, construction equipment and military
vehicles.

Formerly known as Tata Engineering and Locomotive Company (TELCO), the company was
founded in 1945 as a manufacturer of locomotives. The company manufactured its first
commercial vehicle in 1954 in 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. In 1998, Tata launched the
first fully indigenous Indian passenger car, the Indica, and in 2008 launched the Tata Nano, the
world's affordable 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' principal subsidiaries include 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.

Tata Motors Limited formerly is an Indian multinational automotive manufacturing company

headquartered in Mumbai, India and a subsidiary of the Tata Group. Its products include
passenger cars, trucks, vans and coaches. It is the world's eighteenth largest motor vehicle
manufacturing company, fourth largest truck manufacturer and second-largest bus manufacturer
by volume. Tata Motors has auto manufacturing and assembly plants in-

1) Jamshedpur 2) Pantnagar 3) Lucknow 4) Sanand 5) Dharwad 6) Pune.

India, as well as in Argentina, South Africa, Thailand and the United Kingdom.

Tata Motors has produced and sold over 6.5 million vehicles in India since 1954. Originally a
manufacturer of locomotives, the company manufactured its first commercial vehicle in 1954 in
a collaboration with Daimler-Benz AG, which ended in 1969. In 2010, Tata Motors surpassed
Reliance to win the coveted title of 'India's most valuable brand' in an annual survey conducted
by Brand Finance and The Economic Times. Tata Motors was ranked as India's 3rd Most
Reputed Car manufacturer in the Reputation Benchmark Study - Auto (Cars) Sector, launched in
April 2012. Tata Motors has been ranked 314th in the Fortune Global 500 rankings of the world's
biggest corporations for the year 2012. Tata Motors is a cross listed company; Its stock trades on
the Bombay Stock Exchange and the New York Stock Exchange as TTM. Tata entered the
commercial vehicle sector in 1954 after forming a joint venture with Daimler-Benz 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 multi utility vehicle

After the launch of three more vehicles, Tata Estate (1992, a stationwagon design based on the
earlier 'TataMobile' (1989), a light commercial vehicle), Tata Sumo (LCV, 1994) and Tata Safari
(1998, India's first sports utility vehicle). Tata launched the Indica in 1998, the first fully
indigenous Indian passenger car. 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 industry. A newer version of the car, named Indica
V2, was a major improvement over the previous version and quickly became a mass-favorite
Tata Motors also successfully exported large quantities of the car to South Africa. The success of
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.

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 & 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 Marco polo, Tata Marco polo Bus, to
manufacture fully built buses and coaches. In 2008, Tata Motors acquired the British car maker
Jaguar Land Rover, manufacturer of the Jaguar, Land Rover and Daimler luxury car brands,
from Ford Motor Company. In May 2009 Tata unveiled the Tata World Truck range jointly
developed with Tata Daewoo. Debuting in South Korea, South Africa, the SAARC countries and
the Middle-East by the end of 2009. Tata acquired full ownership of Hispano Carrocera in 2009.

In 2010, Tata Motors acquired an 80% stake in the Italy-based design and engineering company
Trilix for a consideration of €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 will invest around
Rs 600 crore on developing Futuristic Infantry Combat Vehicles in collaboration with DRDO.
Tata Motors has vehicle assembly operations in India, the United Kingdom, South Korea,
Thailand, Spain and South Africa. It plans to establish plants in Turkey, Indonesia and Eastern
Europe.Tata Motors' principal subsidiaries include Jaguar Land Rover, Tata Daewoo and Tata
Hispano. Tata Motors is among the top three in passenger vehicles in India with products in the
compact, midsize car and utility vehicle segments.

The company‟s manufacturing base in India is spread across

Jamshedpur (Jharkhand)  Pune (Maharashtra)  Lucknow (Uttar Pradesh)  Pantnagar

(Uttarakhand) Dharwad (Karnataka).

The company is establishing a new plant at Sanand (Gujarat). Tata's dealership, sales, service
and spare parts network comprises over 3500 touch points. Tata also has franchisee/joint venture
assembly operations in Kenya, Bangladesh, Ukraine, Russia and Senegal .Tata has dealerships in
26 countries across 4 continents. Though Tata is present in many countries it has only managed
to create a large consumer base in the Indian Subcontinent, namely India, Bangladesh, Bhutan,
Sri Lanka and Nepal. Tata has a growing consumer base in Italy, Spain and South Africa. Tata
Motors has more than 250 dealerships in more than 195 cities across 27 states and 4 Union
Territories of India. It has the 3rd largest Sales and Service Network after Maruti Suzuki and
Hyundai. Tata Daewoo . In 2004, Tata Motors acquired Daewoo Commercial Vehicle Company
of South Korea. :
To expand the product portfolio Tata Motors recently introduced the 25MT GVW Tata Novus
from Daewoo‟s (South Korea) (TDCV) platform. Tata plans to leverage on the strong presence
of TDCV in the heavy-tonnage range and introduce products in India at an appropriate time. This
was mainly to cater to the international market and also to cater to the domestic market where a
major improvement in the Road infrastructure was done through the National Highway
Development Project. Tata Daewoo is the second-largest heavy commercial vehicle
manufacturer in South Korea. Tata Motors has jointly worked with Tata Daewoo to develop
trucks such as Novus and World Truck and buses including GloBus and StarBus. In 2012, Tata
will start developing a new line to manufacture competitive and fuel efficient commercial
vehicles to face the competition posed by the entry of international brands like Mercedes-Benz,
Volvo and Navistar into the Indian market
PERFORMANCE APPRAISAL METHOD

The performance appraisal system followed in Tata motors. The appraisal 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 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.

APPRAISAL & REWARDAPPRAISAL

New Appraisal System based on KRAS & Targets.

Review of Targets at regular Intervals.

People Development an important KRA

CAREER DESIGN

• Performance & Potential based Appraisals

• Fast Track Option for High-performers

• Promotions after Managers Vacancy based

• Interviews for promotions above Managers

• Selection of Supervisors:- Performance / Attendance / Discipline record- Written Test &

Interview

• Job Rotation - including Inter-functional

EMPLOYEE MOTIVATION

They encourage their employees to work with twin agendas of pursuing growth and
achieving common goals.

They also believe that happy and healthy employees make the happy and healthy workplace.
Their offerings to employees go beyond the monetary benefits.
Their Legacy gives our employees the ROOTS to stay firm with integrity and focus while
our perpetually evolving cultural scenarios provide WINGS to the employees to achieve bold
targets.

Tata Motors has given many firsts to the world of mobility in India as well as globally and
we firmly believe that our robust work culture has been a driving force behind our
achievements so far and it will continue to be so as we steer ahead in our journey to innovate.

They also believe that happy and healthy employees make the happy and healthy workplace.
Therefore their offerings to employees go beyond the monetary and bonus benefits. Tata
Motors contribute to its employees' life and career growth in more than one way.

REWARD

Promotions based on Performance.

Productivity & Profit-linked Incentive Schemes.

Training including Long-term Term

RETENTION & EMPLOYEE WELFARE

Residential Colonies for Employees

Hospitalization Reimbursement on actual without Ceiling

Vehicle Loans

Household Equipment loans

House Building Advance

Annual Advance.

PF Trust - for better Mgt., Service & speedy redress

Proposed MUL Pension Scheme.

Conclusion:

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.

Performance appraisals in Tata Motors is satisfactory for its effective management and
evaluation of staff. Appraisals here are helping. individuals to develop, mprove organizational
performance, and feed into business planning. Performance appraisals enable management in
monitoring of standards, agreeing expectations and objectives, and delegation of responsibilities
and tasks. Staff performance appraisals also. establish individual training needs and enable
organizational training needs analysis and planning. 90degrees appraisal system or review is
being followed in Tata Motors i.e feedback that comes from members of an employee's
immediate work circle most often, 360-degree feedback will include direct feedback from an
employee's subordinates, peers, and supervisor(s). as well as a self-evaluation.

SUGGESTIONS
1. Training Appraisers: Training appraisers are essential for achieving better results with
performance appraisal. The training should be designed to improve appraiser’s capabilities to:
observe, conduct constructive feedback, listen, support, counsel, set objectives and ask appropriate
questions. Some benefits that can be achieved by using appraiser training are as:
• Improve understanding of the system, the forms and terminology to be applied.
•Increase accuracy and reduce common judgment errors.
• Enhance appraiser’s self confidence about his rating skills and improve the skill level through
practice and feedback.

2. Developing a positive culture: Changing culture requires leaders to understand the learning
process dynamics and how the learning and unlearning of assumptions and beliefs can be
manipulated to modify behavior. Cultural aspects could be one of the areas of training.
An organization’s leadership has the responsibility to develop a positive culture to facilitate the
acceptance of performance appraisal among managers and their employees.

3. Providing performance feedback: Employees naturally like to know how they are performing
relative to what is expected from them. Performance feedback lets employees know how well they
have performed in comparison with the performance standards. Having day-to-day employee-
manager interaction, through which the appraise is provided with constructive feedback.

4. Avoiding unequal performance standards: Effective performance appraisal requires equal

standards against which employees are assessed. In the absence of equal standards, employees are
assessed with subjectivity, which may destroy the process of appraisal and leave it as a body without
soul.
Therefore, the problem of unequal standards can be minimized by ensuring that the appraisal criteria
are job-oriented, communicating performance expectations to the employees before the appraisal
review.

5. Avoiding multi-purpose programme: One performance appraisal programme should not be

designed to serve a myriad of purposes, administrative and developmental, as it can be vague and is
difficult & results into failure. The solution is to separate assessment from development in appraising
employees.