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A STUDY ON “THE EFFECTIVENESS OF PERFORMANCE APPRAISAL” WITH SPECIAL REFERENCE TO AMANA TOYOTA, KANNUR.
DHANUSH M C 2014-2015
CHAPTER1 INTRODUCTION TO THE STUDY
PERFORMANCE APPARAISAL INTRODUCTION The study is to find out the EFFECTIVENSS OF PERFPRMANCE APPRAISAL SYSTEM AT “AMANA TOYOTA”.To find out this, I have done the survey.
Employee Survey: For this survey, I have prepared a questionnaire; through this I collected data from Employees. Sample Size of survey is 100 employees. By analyzing these questionnaires, I find out the effectiveness of the performance appraisal system and job satisfaction. In this report, I explained the analysis of questionnaire through graphs and tables.
Scope of study The Sample Size is Limited, So as to give the accurate information. The scope is very limited, because attitude & expectations of the people change According to the time & situation. Consistency was lacking with regard to the information given by few employees.
Objective of the study The board objective is to study the “PERFORMANCE APPRAISAL SYSTEM REFERANCE TO AMANA TOYOTA”.
Other objective are; To analyze the effectiveness of performance appraisal system. To provide suggestion, this may be beneficial to the company in improving the performance of employee sand to increase their future potential and value to the company. To find out the satisfaction level of employees in Amana Toyota.
Research and Methodology
WITH
Research methodology is away to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. It means that the way one researcher select him sample size, methods of data collection, various tools used for studying the problem with certain objectives. Research Design Research design is a comprehensive plan of the series of operation that research intends to carry out to accomplish the research objectives. Source of data Main source of data are primary data and secondary data; Primary Source Data come from primary source is called primary data. Primary data from the respondents that is from employees were collected with the help of structured questionnaire. Secondary Source Secondary data refers to the information of facts, which are already available. The source of secondary data mainly includes company website, employee handbook, journals, magazines etc. And the data provided from the AMANA TOYOTA is also a source of secondary data. Area of study The study has been conducted at AMANA TOYOTA, KANNUR. Duration of study The study was carried out on 20-04-2015 to 20-06-2015. Sample Selection and Size Samples were collected from employees from different departments from AMANA TOYOTA, KANNUR. The respondents were met in person and information for the study was collected. A total of 50 respondents were selected for the study. These person were personally interviewed and questionnaire given to them.
CHAPTER 2 INDUSTRY PROFILE
AUTOMATIVE INDUSTRY IN INDIA The automotive industry in India is one of the largest automotive markets in the world. It had previously been one of the fastest growing markets globally, but is currently experiencing flat or negative growth rates. India's passenger car and commercial vehicle manufacturing industry is the sixth largest in the world, with an annual production of more than 3.9 million units in 2011.[3] According to recent reports, India overtook Brazil to become the sixth largest passenger vehicle producer in the world (beating such old and new auto makers as Belgium, United Kingdom, Italy, Canada, Mexico, Russia, Spain, France, and Brazil). Throughout the course of 2011 and 2012, the industry grew 16-18%, selling around three million units, in 2009; India emerged as Asia's fourth largest exporter of passenger cars, behind Japan, South Korea, and Thailand. In 2010, India beat Thailand to become Asia's third largest exporter of passenger cars. The majority of India's car manufacturing industry is based around three clusters in the south, west and north. The southern cluster consisting of Chennai is as of 2010, India is home to 40 million passenger vehicles. More than 3.7 million automotive vehicles were produced in India in 2010 (an increase of 33.9%), making the country the second (after China) fastest growing automobile market in the world in that year. According to the Society of Indian Automobile Manufacturers, annual vehicle sales are projected to increase to 4 million by 2015, no longer 5 million as previously projected the biggest with 35% of the revenue share. The western hub near Mumbai and Pune contributes to 33% of the market and the northern cluster around the National Capital Region contributes 32%.
Chennai, houses the India operations of Ford, Hyundai,
Renault, Mitsubishi, Nissan, BMW, Hindustan Motors, Daimler, Capron, Mini, and Datsun. Chennai accounts for 60% of the country's automotive exports. Gurgaon and Manesar in Haryana form the northern cluster where the country's largest car manufacturer, Maruti Suzuki, is based. The Chakan corridor near Pune, Maharashtra is the western cluster with companies like General Motors, Volkswagen, Skoda, Mahindra and Mahindra, Tata Motors, Mercedes Benz, Land Rover, Jaguar Cars, Fiat and Force Motors having assembly plants in the area. Nasik has a major base of Mahindra and Mahindra with a SUV assembly unit and an Engine assembly unit. Aurangabad with Audi, Skoda and Volkswagen also forms part of the western cluster. Another emerging cluster is in the state of Gujarat with manufacturing facility of General Motors in Halol
and further planned for Tata Nano at their plant in Sanand. Ford, Maruti Suzuki and PeugeotCitroen plants are also set to come up in Gujarat. Kolkata with Hindustan Motors, Noida with Honda and Bangalore with Toyota are some of the other automotive manufacturing regions around the country. In 2011, there were 3,695 factories producing automotive parts in all of India. The average firm made US6 million in annual revenue with profits close to US$400 thousand. First car on India's roads in 1897. Until the 1930s, cars were imported directly, but in very small numbers.
The first car showroom in secundarbad An embryonic automotive industry emerged in India in the 1940s. Hindustan was launched in 1942, long time competitor Premier in 1944. They built GM and Fiat products respectively. Mahindra & Mahindra was established by two brothers in 1945, and began assembly of Jeep CJ-3A utility vehicles. Following the independence, in 1947, the Government of India and the private sector launched efforts to create an automotive component manufacturing industry to supply to the automobile industry. In 1953 an import substitution programmed was launched and the import of fully built-up cars began to be impeded.
The Hindustan Ambassador dominated India's automotive market from the 1960s until the mid80s However , the growth was relatively slow in the 1950s and 1960s due to nationalization and the license raj which hampered the Indian private sector. Total restrictions for import of vehicles were set and after 1970 the automotive industry started to grow, but the growth was mainly driven by tractors, commercial vehicles and scooters. Cars were still a major luxury item. In the 1970s price controls were finally lifted, inserting a competitive element into the automobile market. By the 1980s, the automobile market was still dominated by Hindustan and Premier, who sold superannuated products in fairly limited numbers. During the eighties, a few competitors began to arrive on the scene. To promote the auto industry the government started the Delhi Auto Expo which was had its debut showcasing in 1986. The Auto Expo of 1986 was a window for technology transfers showing how the Indian Automotive Industry was absorbing new technologies and promoting indigenous research and development for adapting these technologies for the rugged Indian conditions. The 9 day show was marked by then Prime Minister Gandhi However.
Liberalization Eventually multinational automakers, such as, though not limited to, Suzuki and Toyota of Japan and Hyundai of South Korea, were allowed to invest in the Indian market ultimately leading to the establishment of an automotive industry in India. Maruti Suzuki was the first, and the most successful of these new entries, and in part the result of government policies to promote the automotive industry beginning in the 1980s. As India began to liberalize their automobile market in 1991, a number of foreign firms also initiated joint ventures with existing Indian companies. The variety of options available to the consumer began to multiply in the nineties, whereas before there had usually only been one option in each price class. By 2000, there were 12 large automotive companies in the Indian market, most of them offshoots of global companies Exports were slow to grow. Sales of small numbers of vehicles to tertiary markets and neighboring countries began early, and in 1987 Maruti Suzuki shipped 480 cars to Europe (Hungary). After some growth in the mid-nineties, exports once again began to drop as the outmoded platforms handed down to Indian manufacturers by multinationals were not competitive. This was not to last and today India manufactures low-priced cars for markets across the globe. As of 18 March 2013 global brands such as Proton Holdings, PSA Group, Kia, Mazda, Chrysler, Dodge and Geely Holding Group are shelving plans for India due to the global economic crisis. Emission norms In tune with international standards to reduce vehicular pollution, the central government unveiled the standards titled 'India 2000' in 2000 with later upgraded guidelines as 'Bharat Stage'. These standards are quite similar to the more stringent European standards and have been traditionally implemented in a phased manner, with the latest upgrade getting implemented in 13 cities and later, in the rest of the nation. Delhi(NCR), Mumbai, Kolkata, Chennai, Bangalore, Hyderabad, Ahmadabad, Pune, Surat, Kanpur, Luck now, Sholapur, and Agra are the 13 cities where Bharat Stage IV has been imposed while the rest of the nation is still under Bharat Stage
2015 auto industry trends The worldwide automotive industry has been enjoying a period of relatively strong growth and profitability, and the annual sales have reached prerecession levels in some regions. Yet considerable uncertainty about the future remains. The most immediate challenge is the unevenness of global markets .auto industry executives and experts tend to be optimistic about the us market, forecasting annualized sales in north America in the near term of a relatively robust 16 million cars , up from only 13 million in 2008. However , the outlook in Europe is much weaker as the region is emerging fitfully from a six year sales slump. And sales have plunged in Russia and south America – they were down by about 25 percent and 15 percent respectively n august 2014 year –over-year .meanwhile, the
Indian
market’s performance has been inconsistent. And growth in china –the world’s largest vehicle market –has slowed, even though investments by most original equipment manufacturers (OEMS), which are betting big of future demand ,continue to ramp up reacting strategically to these demand shifts will be an absolute priority for industry leaders in 2015. Against this backdrop of macroeconomic uncertainty , we believe major transitions are under way that will transform auto manufacturing over the next 10 years .0Ems, suppliers , and the dealers not only must navigate through these changes in the short-term to build market share and profitability –they also should take steps now to position themselves for success in the next decades .
Driving change From the ground level, three powerful forces are rolling the auto industry, shifts n consumer demand , expanded regulatory requirements for safety and fuel economy , and the increased availability of data and information,
Shift in consumer demand Consumers appears to be rethinking their long love affair with the individual automobile brands and viewing Cars more as transportation machines. although this is not likely to have a major impact on sales volume , it is affecting how much people are willing to pay for automobiles .that willingness is also affected by the waning of the product differentiation , due partly to a general increase in vehicle quality throughout the industry.Major transitions are under way that will transform auto manufacturing over the next 10 years . Expanded regulatory requirements Tighter cooperate average fuel economy (CAFÉ), regulations in the united staes as well as the rest to the world are more expensive for OEMs to comply with ,requiring high volume to amortize increasing cost. Regulators are also mandating that more safety related features , such as backup cameras , be included as standard equipment on new models , adding further to cost .
Increasing availability of data and information Information about vehicle usage and driver behavior usage is proliferating as sensors and telemetric systems
become more common. All players across the automotive value chain are
interested in collection more customer and car data, but uncertainty about how to use it is still widespread. Meanwhile consumers are awash in easily accessible information about automobile specifications, prices, discounts quality, and performance, giving buyers greater bargaining power.
CHAPTER 2 COMPANY PROFILE
HISTORY OF TOYOTA
Toyota- History
Toyota founder Kiichiro Toyoda
Replica of the Toyota Model A the first production model of Toyota in 1936
The history of Toyota started in 1933 with the company being a division of Toyoda Automatic Loom Works devoted to the production of automobiles under the direction of the founder's son;
Kiichiro Toyoda had traveled to Europe and the United States in 1929 to
investigate automobile production and had begun researching gasoline-powered engines in 1930. Toyoda Automatic Loom Works was encouraged to develop automobile production by the Japanese government, which needed domestic vehicle production, due to the war with China In 1934, the division produced its first, which was used in the first Model A1 passenger car in May 1935 and the G1 truck in August 1935. Production of the Model AA passenger car started in 1936. Early vehicles bear a striking resemblance to the Dodge power and Chevrolet, with some parts actually interchanging with their American originals. Although the Toyota Group is best known today for its cars, it is still in the textile business and still makes automatic looms, which are now computerized and electric Sewing machine which are available worldwide. Toyota Motor Co. was established as an independent and separate company in 1937. Although the founding family's name was written in the Kanji (rendered as "Toyoda"), the company name was changed to a similar word in Katakana (rendered as "Toyota") because the latter has 8 Stocks which is regarded as a lucky number in East Asian Culture Since Kanji are essentially Chinese Character , in Chinese speaking markets, the company and its vehicles are still referred to by the original Kanji name , but with Chinese pronunciation. During the Pacific war (World War II) the company was dedicated to truck production for the Imperial Japanese army. Because of severe shortages in Japan , military trucks were kept as simple as possible. For example, the trucks had only one headlight in the center of the hood. The war ended shortly before a scheduled Allied bombing run on the Toyota factories in Aichi. Postwar growth After World War II, Japan experienced extreme economic difficulty. Commercial passenger car production started in 1947 with the model SA. The company was on the brink of bankruptcy by the end of 1949, but the company eventually obtained a loan from a consortium of banks which stipulated an independent sales operation and elimination of "excess manpower".
In June 1950, the company produced only 300 trucks and was on the verge of going out of business. The management announced layoffs and wage reductions, and in response the union went on a strike that lasted two months. The strike was resolved by an agreement that included layoffs and pay reductions but also the resignation of the president at the time.KiichiroToyoda was succeeded by Fazio Ishida, who was the chief executive of the Toyoda Automatic Loom Company.] The first few months of the Korean war resulted in an order of over 5,000 vehicles from the US military, and the company was revived. Ishida was credited for his focus on investment in equipment. One example was the construction of the Motomachi Plant in 1959, which gave Toyota a decisive lead over Nissan during the 1960s. Global presence Toyota began to expand in the 1960s with a new research and development facility, a presence in Thailand was established, the 10 millionth models was produced, a Prize, and partnerships with Hino Motors and Daihatsu were also established. The first Toyota built outside Japan was in April 1963, at Melbourne, Australia .From 1963 until 1965, Australia was Toyota's biggest export market. By the end of the decade, Toyota had established a worldwide presence, as the company had exported its one-millionth unit. The first Japanese vehicles to arrive in North America were five Land Cruisers in El Salvador in May 1953. The first Toyotas sent to Europe were two Toys pet Tiaras sent to Finland for evaluation in June 1962, but no sales followed. The first European importer was Erla Auto Import A/S of Denmark, who brought in 190 Crowns following a May 1963 agreement to become the distributor for Denmark, Norway, and Sweden. The Netherlands followed in May 1964, and after having established toeholds in countries with little or no indigenous automobile production other markets followed in 1966. In 1968 Toyota established its first European CKD assembler, Salvador Caetano I.M.V.T. of Portugal. With high fuel prices and a weak US economy in mid 2008, Toyota reported a double-digit decline in sales for the month of June, similar to figures reported by the Detroit Big Three. For Toyota, these were attributed mainly to slow sales of its Tundra pickup, as well as shortages of its fuel-efficient vehicles such as the Prius, Corolla and Yaris. In response, the company has announced plans to idle its truck plants, while shifting production at other facilities to manufacture in-demand vehicles.
In January 2010, Toyota suspended sales of eight recalled vehicle models to fix accelerator pedals with mechanical problems that could cause them to become stuck.
In
December 2012, Toyota announced an agreement worth more than US$1,000 million to settle a lawsuit involving unintended acceleration in some of its vehicles. Toyota Motor Corporation
is a Japanese automotive manufacturer headquartered in Toyota,
Aichi, Japan. In 2013 the multinational corporation consisted of 333,498 employees worldwide and, as of November 2014, is the twelfth-largest company in the world by revenue. Toyota was the largest automobile manufacturer in 2012 (by production). In July of that year, the company reported the production of its 200-millionth vehicle. Toyota is the world's first automobile manufacturer to produce more than 10 million vehicles per year. It did so in 2012 according to OICA, and in 2013 according to company data. As of July 2014, Toyota was the largest listed company in Japan by market capitalization Softbank and by revenue. The company was founded by Kiichiro Toyoda in 1937 as a spinoff from his father's company Toyota Industries to create automobiles. Three years earlier, in 1934, while still a department of Toyota Industries, it created its first product, the Type A engine, and, in 1936, its first passenger car, the Toyota AA. Toyota Motor Corporation produces vehicles under 5 brands, including the Toyota brand, Hino, Lexus, Ranz, and Scion. It also holds a 51.2% stake in Daihatsu, a 16.66% stake in Fuji Heavy Industries, a 5.9% stake in Isuzu, and a 0.27% stake in Tesla, as well as jointventures with two in China (GAC Toyota and Sichuan FAW Toyota Motor), one in India (Toyota Kirloskar), one in the Czech Republic (TPCA), along with several "nonautomotive" companies. TMC is part of the Toyota Group, one of the largest conglomerates in the world . Corporate governance
Principal headquarters building of Toyota
Toyota is headquartered in Toyota City, Aichi. The main headquarters of Toyota is located in a three story building in Toyota. As of 2006 the head office has the "Toy pet" Toyota logo and the words "Toyota Motor". The Toyota Technical Center, a 14-story building, and the Honsha plant, Toyota's second plant engaging in mass production and formerly named the Koromo plant, are adjacent to one another in a location near the headquarters. Vinod Jacob from The Hindu described the main headquarters building as "modest". In 2013 company head Akio Toyoda reported that it had difficulties retaining foreign employees at the headquarters due to the lack of amenities in the city. Its Tokyo office is located in Bunkyo, Tokyo. Its Nagoya office is located in Nakamuraku, Nagoya. In addition to manufacturing automobiles, Toyota provides financial services through its Toyota Financial Services division, and also builds robots.
Toyota's global network: Red - Japan Green - Official dealership(s) present. Blue - Localized manufacturing plant(s) Light Blue - Regional headquarters (HQ) Dark Blue - Regional headquarters (HQ) and localized manufacturing plants Financial results In 2011, the Toyota Group (including Daihatsu, Hino and Chinese joint ventures) fell to place three with 8,050,181 units produced globally. According to an unofficial count, based on unit production reported by major automakers, Toyota regained its top rank with 9,909,440 units produced globally in calendar year 2012. On May 8, 2013, Toyota announced plans to produce 10.1 million units in fiscal year 2013, which, if achieved, would make it the first auto manufacturer to cross the 10-million-unit threshold. On May 8, 2009, Toyota reported a record
annual net loss of US$4.2 billion making it the latest automobile maker to be severely affected by the global financial crisis that started in 2007. Toyota's financial unit had asked for an emergency loan from a state-backed lender on March 16, 2009, with reports putting the figure at more than A$3 billion. It said the international financial situation was squeezing its business, forcing it to ask for an emergency loan from the Japan Bank for International Cooperation. This was the first time the state-backed bank has been asked to lend to a Japanese car manufacturer. On May 8, 2013, Toyota Motor Corporation announced its financial results for the fiscal year ended March 31, 2013. Net revenues totaled ¥22.0 trillion (+18.7%). Operating income was ¥1.32 trillion (+371%), net income ¥962.1 billion (+239%). 1930s Toyota was started in 1933 as a division of Toyoda Automatic Loom Works devoted to the production of automobiles under the direction of the founder's son, Kiichiro Toyoda. Its first vehicles were the A1 passenger car and the G1 in 1935. The Toyota Motor Co. was established as an independent company in 1937. In 2008, Toyota's sales surpassed General Motors, making Toyota number one in the world.
In 1924, Saki chi Toyoda invented the Toyoda Model G Automatic Loom. The principle of judoka, which means the machine stops itself when a problem occurs, became later a part of the Toyota Production System. Looms were built on a small production line. In 1929, the patent for the automatic loom was sold to a British company, generating the starting capital for the automobile development.
1940s-1950s From September 1947, Toyota's small-sized vehicles were sold under the name "Toyopet". The first vehicle sold under this name was the Toyopet SA, but it also included vehicles such as the Toyopet SB light truck, Toyopet Stout light truck, Toyopet Crown, Toyopet Master, and the Toyopet Corona. The word "Toyopet (Japanese article)" was a nickname given to the Toyota SA due to its small size, as the result of a naming contest the Toyota Company organized in 1947. However, when Toyota eventually entered the American market in 1957 with the Crown, the name was not well received due to connotations of toys and pets. The name was soon dropped for the American market, but continued in other markets until the mid-1960s. 1960s-1970s By the early 1960s, the US had begun placing stiff import tariffs on certain vehicles. The so-called "chicken tax" of 1964 placed a 25% tax on imported light trucks. In response to the tariff, Toyota, Nissan Motor Co. and Honda Motor Co. began building plants in the US by the early 1980s. 1980s
With over 40 million sold, the Corolla is one of the most popular and best selling cars in the world.Toyota received its first Japanese Quality Control Award at the start of the 1980s and began participating in a wide variety of motorsports. Due to the 1973 oil crisis, consumers in the lucrative US market began turning to small cars with better fuel economy. American car manufacturers had considered small economy cars to be an entry-level product, and their small vehicles employed a low level of quality to keep the price low. In 1982, the Toyota Motor Company and Toyota Motor Sales merged into one company, the Toyota Motor Corporation. Two years later, Toyota entered into a joint venture with General
Motors called the New United Motor Manufacturing, Inc, NUMMI, operating an automobilemanufacturing plant in Fremont, California. The factory was an old General Motors plant that had been closed for two years. Toyota then started to establish new brands at the end of the 1980s, with the launch of their luxury division Lexus in 1989. 1990s In the 1990s, Toyota began to branch out from producing mostly compact cars by adding many larger and more luxurious vehicles to its lineup, including a full-sized pickup, the T100 (and later the Tundra); several lines of SUVs; a sport version of the Camry, known as the Camry Solara; and the Scion brand, a group of several affordable, yet sporty, automobiles targeted specifically to young adults. Toyota also began production of the world's best-selling hybrid car, the Prius, in 1997. With a major presence in Europe, due to the success of Toyota Team Europe, the corporation decided to set up Toyota Motor Europe Marketing and Engineering, TMME, to help market vehicles in the continent. Two years later, Toyota set up a base in the United Kingdom, TMUK, as the company's cars had become very popular among British drivers. Bases in Indiana, Virginia, and Tianjin were also set up. In 1999, the company decided to list itself on the New York and London Stock Exchanges. 2000s In 2001, Toyota's Toyo Trust and Banking merged with two other banks to form UFJ Bank, which was accused of corruption by Japan's government for making bad loans to alleged Yakuza crime syndicates with executives accused of blocking Financial Service Agency inspections.[35] The UFJ was listed among Fortune Magazine's largest money-losing corporations in the world, with Toyota's chairman serving as a director. At the time, the UFJ was one of the largest shareholders of Toyota. As a result of Japan's banking crisis, UFJ merged with the Bank of Tokyo-Mitsubishi to become the Mitsubishi UFJ Financial Group. In 2002, Toyota managed to enter a Formula One works team and establish joint ventures with French motoring companies Citroën and Peugeot a year after Toyota started producing cars in
France.Toyota ranked eighth on Forbes 2000 list of the world's leading companies for the year 2005but slid to 55 for 2011. The company was number one in global automobile sales for the first quarter of 2008. In 2007, Toyota released an update of its full-sized truck, the Tundra, produced in two American factories, one in Texas and one in Indiana. Motor Trend named the Tundra "Truck of the Year", and the 2007 Toyota Camry "Car of the Year" for 2007. It also began the construction of two new factories, one to build the RAV4 in Woodstock, Ontario, Canada, and the other to build the Toyota Prius in Blue Springs, Mississippi, USA. This plant was originally intended to build the Toyota Highlander, but Toyota decided to use the plant in Princeton, Indiana, USA, instead. The company has also found recent success with its smaller models—the Corolla and Yaris—as gasoline prices have risen rapidly in the last few years. 2010s In 2011, Toyota, along with large parts of the Japanese automotive industry, suffered from a series of natural disasters. The 2011 Tahoku earthquake and tsunami led to a severe disruption of the supplier base and a drop in production and exports. Severe flooding during the 2011 monsoon season in Thailand affected Japanese automakers that had chosen Thailand as a production base. Toyota is estimated to have lost production of 150,000 units to the tsunami and production of 240,000 units to the floods. The automaker narrowly topped global sales for the first half of 2014, selling 5.1 million vehicles in the six months ending June 30, 2014, and an increase of 3.8% on the same period the previous year. Volkswagen AG, which recorded sales of 5.07 million vehicles, was close behind. In August 2014, Toyota announced it would be cutting its spare-parts prices in China by up to 35%. The company admitted the move was in response to a probe foreshadowed earlier in the month by China's National Development and Reform Commission of Toyota's Lexus spare-par policies, as part of an industry-wide investigation into what the Chinese regulator considers exorbitantly high prices being charged by automakers for spare parts and after-sales servicing.
Recalls From November 2009 through 2010, Toyota recalled more than 9 million cars and trucks window switches, the largest recall since that of Ford Motor Company in 1996. The move came after a series of recalls between 2009 and 2011 in which it pulled back around 10 million cars amidst claims of faulty mechanics. In March 2014, Toyota agreed to pay a fine of US$1.2 billion for concealing information and misleading the public about the safety issues behind the recalls on Toyota and Lexus vehicles affected by unintended worldwide in several recall campaigns, and briefly halted production and sales . Toyota initiated the recalls, the first two with the assistance of the U.S. National Highway Traffic Safety Administration (NHTSA), after reports that several vehicles experienced unintended acceleration. 2012 In October 2012, Toyota announced a recall of 7.43 million vehicles worldwide to fix malfunctioning power acceleration. 2014 In early November of 2014, Toyota USA enlisted a recall involving defective inflaters and propellant devices that may deploy improperly in the event of a crash, shooting metal fragments into vehicle occupants. More than 7 million vehicles are potentially affected in the United States. This recall only effects vehicles equipped with Takata airbags released after the year 2000 in North America. The airbags were manufactured by Takata automotive manufacturing. Toyota is offering a free repair to all effected vehicles worldwide. The fault in the Takata air bags also affected other North American automobile manufacturers.
TOYOTA COMPANY IN INDIA Toyota company in India is relatively a newcomer and started its venture in Indian markets in 1997, when it started
a joint venture with kirlosakar group. this joint venture was
named as Toyota kirloskar motor private ltd and has in fact led to the establishment of a manufacturing plant in Ramanagra district of Karnataka state. It was further strengthened with establishment of Toyota kirloskar auto parts private ltd in 2002.currently,nine models of Toyota belonging to various segments are under production. Toyota company is involved in various social initiatives and has established centers for technical education in India.
Toyota manufacturing facilities Toyota kirloskar motor private limited has established its manufacturing plant in bidadi, which is very near to capital of the state of Karnataka ,Bangalore. As per Toyota company profile, the facility is spread over an area of 432 acres and employees more than 4900 workers till date . some of the cars like camry and prius are imported as completely built units , while others are manufactured completely at plant .with the launch of new vehicles like etios and etios liva Toyota company has experienced a steep rise in demand is expected to boost up production, which currently stands at 80000units per year. Toyota vehicle models As per Toyota profile , company currently brings Land Cruiser , Prius, Camry,and Pradp as completely built units from its overseas plants , while other models like Fortuner , Etios liva, Etios , Corolla Altis and Innova are manufactured in India.
COMPANY PROFILE
AMANA TOYOTA – COMPANY PROFILE
Brief history of Amana Toyota Amana Toyota, VPK Motors (P) Ltd, exclusive dealership globally renowed.Toyota was started on 11th May 2006 under the dynamic leadership of Mr.V.P.K Abdullah at Thottada Kannur. It was the vision of management and the relentless efforts put in by the committed employees that enable in the organization to distinguish itself in the region. The management has plans to strengthen the operations and magnify the customer service goals in order to ensure that each customer’s unique needs are addressed to their utmost satisfaction. The head quarter of Amana Toyota, located at Calicut includes top management and other professionals from various functions such as sale. Customer service, finance, general administration, etc. Amana Toyota employees, partners in its success, vigorously uphold its mission statement for every assignment. Its customers have responded tremendously to its commitment and their support has enabled Amana Toyota offer unmatched service in six major districts across Kerala with the entire staff of Amana sharing the version of distinctive quality and unparallel service, undoubtedly, they are surging ahead of greater success.
2 Mission of Amana Toyota "Setting New Standards in Customer Service" This is the mission statement set by Amana Toyota placing customer satisfaction first, Integrating sales with service and service parts in a single convenient location; we contribute to speedy and efficient service, allowing customers to experience the convinces and pleasure of owning Toyota automobile.
GOALS, VALUE AND HISTORY OF AMANA TOYOTA The Goal of Amana Toyota is simple to provide extra ordinary customer service. They accomplish this by taking the task and responsibities wholeheartedly. The dedicated and competent personnel of the organization with their proven expertise are bent on delivering the finest quality of customer service. Truly, the organization goals are accomplished through the commitment of every employee, irrespective of the nature of the work he is entrusted to fulfill. The management treats employee with respect and gives them an opportunity for input on how to continually improve the sale/service goals. It is the duty and responsibility of the organization to treat each employee fairly with mutual respect. The company does not to tolerate discrimination of any kind are encourage all managers and supervisors to involve employee in problems arise, the fact should be analyzed to determine ways to avoid similar problems in future.Provide the most effective and efficient corrective action, to resolve customer service issue, to customer satisfaction and that the problem not to be repeated future.Foster an open door policy, which encourages interaction, discussion and ideas to improve the environment, thus increase the productivity.Deliver competitive, impeccable service to customers and ensure acceptance of its mission.Make “Do It Right the First Time” as a slogan of its commitment and way of doing business. This commitment will ensure continued growth and prosperity. The strive and maintain its leadership position in the industry through continuous efforts and unflinching dedication.
Different operation sections of Amana Toyota
General administration department Sales department Customer service department EDP department Maintenance department Customer relation department
ORGANIZATIONAL CHART CHAIRMAN
MANAGING DIRECTOR
DIRECTOR
CUSTOMER SERVICE DEPARTMENT
SALES DEPARTMENT
HR &GENERAL ADMINISTRATION DEPARTMENT
SERVICE MANAGER
SALES MANAGER
HR MANAGER
SPARES SECTION MANGER
SALES EXECUTIVE
FINANCE DEPARTMENT
FINANCE MANAGER
HR EXEXUTIVES
SHOP FOREMAN & TECHNICIAN
Details of Amana Toyota –VPK Motors PVT Ltd TECHNICIANS
ACCOUNTANT
Name of the organization
:
Amana Toyota – VPK Motors (p) Ltd
Location
:
Thottada. P. O Kannur-670007
Telephone
:
0497 3000333 0497 2835577
Fax
:
0495 3000399
E-Mail
:
[email protected]
Visit us
:
www.amana Toyota.com
Inauguration
:
21st May 2006
Products
:
Toyota Camry, Corolla, Innova, LC Prado, Spare parts And Services.
No. of Employee
:
Total Capitalization
:
Product profile
213 Five Cores
Amana Toyota and esteemed institution in Malabar region deals with luxury motor car of Toyota kirloskar motor Limited such as Toyota, Corolla, Camry, Innova and LC Prado. They also have spare parts of these vehicles and provide quality services. Thus the products of Amana Toyota comprise 3S, that is, Sales, Service and Spare.
SALES The sales of Amana Toyota include the selling of
ETIOS LIVA ETIOS ETIOS CROSS COROLLA ALTIS FORTUNER CAMRY PRIUS LAND CRUSIER PRADO
Brief descriptions of these vehicles are given below ETIOS LIVA Etios Liva is a Q Class Hatch, which was launched in June 2011. This car, which is available in seven dynamic colors and four variants, is powered by a 4 cylinder 16 valve, 1197cc BS-IV compliant engine that provides a mileage of 18.31 kmpl.
The Toyota etios liva is one
of the most spacious and comfortable cars in its segment. The dual tone interior feels bright , but material quality isn’t impressive. the hatchback The Toyota Etios Liva is one of the most spacious and comfortable cars in its segment. The dual tone interior feels bright, but material quality isn’t impressive. The hatchback feels comfortable and convenient from inside, though it lacks some vital features. The engine is frugal, but in terms of power and performance it fails to make an impact. The handling is predictable, and ride quality is decent. The driving dynamics isn’t impressive, especially in city. ETIOS
Launched in December 2010, Ethos is a B segment compact sedan. The car in six vibrant colors and four variants is powered by a 1.5L, 16 valve DOHC BS-IV compliant engine that has fuel economy of 17.6 kmpl of petrol. Toyota Etios is an entry level sedan that is available with diesel and petrol engine options in seven trims. Along with attractive looks, its defining characteristics are excellent fuel economy, class-leading comfort features, smooth handling and great performance, which makes it a high selling model in the B segment. It won Sub-Compact Sedan of the Year (NDTV Car & Bike Awards 2011), Car of the Year and Mid Size Car of the Year (Over Drive CNBC TV 18 Awards 2011) and Saloon Car of the Year (Bloomberg UTV Auto Car Award 2011) awards when it was launched.
ETIOS CROSS The crossover market is new to the Indian consumers and in given time it is expected to gain some pace. The arrival of Toyota Etios Cross will certainly provide a good purchasing option to prospective buyers as well as the company's vast fan following. In the price bracket of Rs. 5.76 lakh – Rs. 7.42 lakh, the car is packed with all the necessary and modern features, which can tempt the customers to a great extent. The diesel engine has the fuel efficiency factor, whereas, the petrol mills also don't lag behind in terms of mileage. The unconventional looks of Toyota Etios Cross might take some time to gain plaudits from all auto connoisseurs but in the given time, the car has the ability to become a decent road performer.
INNOVA Innova with its launch in February 2005 created a new segment in Indian automobile space. The car is claimed to be India's first 3-row seating passenger luxury vehicle and remains one of the highest selling vehicle from the company. This Toyota company car is available in both petrol and diesel engine variants. In 2009, the CNG variants of Innova were also launched. Toyota Innova has been the segment leader and is aiming to continue its joyful ride in the Indian car market. With subtle changes to exterior and interior, the Innova looks attractive. Ease of driving, high end features like reverse parking camera, chrome embellishments across the model
are few of its positive points. Well, it has to be a six-seated MPV, but keeping Indian buyers taste in mind, the company opts for a seven and eight seat options.
COROLA ALTIS An executive class sedan Corolla Altis has gone through minor facelifts since its launch in 2003. A CNG variant of this car was launched in 2010 and latest of these launches occurred in June 2011. This Toyota company car is available in petrol and diesel engine variants Toyota Corolla Altis is an Executive sedan that is available in India in four petrol and three diesel variants. This car is favored by buyers due to classy and elegant looks and a host of luxury features, and is one of the highest selling models in its segment. In the Subros Car & Bike Awards 2011, the diesel motor of Corolla Altis was judged as the Engine of the Year.
FORTUNER Toyota Company in India launched Fortuner in August 2009. This Toyota company car is an ultimate sports utility vehicle equipped with a 3L D-4D diesel engine and intercooler turbocharger. Toyota Fortuner is a premium Sports Utility Vehicle (SUV) that is best known in the country for its aggressive looks, high end luxury amenities, tremendous off-roading capabilities and excellent ride quality. This car is available in the domestic market in 3 variants (4WD manual, 2WD manual, 2WD automatic), with a single diesel engine option.
CAMRY Toyota Camry has been available in India from the very beginning and has gone through subsequent re-launches in 2005 and 2009. The 2.4 Liter 4-Cylinder VVT-I BS-IV compliant engines, introduced for the first time in 2005 version are still continued. This premium segment sedan is available in both manual and automatic five speed transmissions.
Toyota Camry is the luxury sedan from the Japanese auto major Toyota. Brought as a CBU in India, the sedan carries a high price tag. However, its features justify its price to a great extent. The sedan comes in only petrol variant in the country and in both automatic and manual transmission options. Its sophisticated looks and classy interior makes it a premium class sedan. Top gear awarded Toyota Camry as the best designed car of the year. PRIUS Toyota's acclaimed Third Generation Prius was launched in India in January 2010. This hybrid electric car from Toyota Company in India was displayed for the first time at Auto Expo 2010 in New Delhi. Toyota New Prius is the perfect answer to the growing environmental concerns of Indian consumers. Equipped with an electrically controlled continuously variable transmission system, it runs on a motor that is powered by battery as well as petrol. This model won Ista Green Award (NDTV Car & Bike Awards 2011), Green Technology of the Year (Suborns Car & Bike India Awards 2011), Green Award of the Year (Over Drive CNBC TV 18 Awards 2011 and Bloomberg UTV Auto Car Award 2011), The Green Steering Wheel 2010 (Auto Bild), Green Car of the Year (ET Zigwheels Awards 2010).
LAND CRUISER PRADO Toyota Land Cruiser Prado is a luxury Sports Utility Vehicle (SUV) that comes with a diesel engine option with 4WD mechanism in India. This model is known for its body-on-frame construction, a host of high end comfort and convenience features and unmatched capability to tackle the roughest of terrains with utmost ease. It was the recipient of the Best Import Car of the Year award by Business Standard Motoring in 2004.Toyota Company in India introduced Land Cruiser Prado in November 2004. It was company's fourth major launch after Corolla, Qualis and Camry. Like the Camry, Land Cruiser Prado was imported in India as a completely built unit. The stylish sports utility vehicle is powered by a giant 2982cc, 16 Valve DOHC, D4-D Diesel Engine with Intercooler Turbocharger. The vehicle has 18 inch tubeless radial tires with all time four wheel drive, 5-speed manual transmission and includes ventilated disc brakes with ABS and EBD. It has an unending list of comfort, security and advanced technical features that make it an ultimate all terrain luxury sports vehicle.
Toyota Land Cruiser Prado is a luxury Sports Utility Vehicle (SUV) that comes with a diesel engine option with 4WD mechanism in India. This model is known for its body-on-frame construction, a host of high end comfort and convenience features and unmatched capability to tackle the roughest of terrains with utmost ease. It was the recipient of the Best Import Car of the Year award by Business Standard Motoring in 2004. TOYOTA LAND CRUISER Toyota Land Cruiser 200 is the top-of-the-line luxury Sports Utility Vehicle offered by the Japanese car maker in India. The unmatched performance of the model is centered on its huge 4.5 L engine, full time 4WD system, TEMS suspension and 6 speed automatic transmission systems. It excellent performance makes it the ideal vehicle to tackle adverse terrains, ranging from forests to mountains, with utmost ease. TOYOTA MATRIX The 2003 Toyota matrix is a street performer that combines versatility and styling in a truly affordable package. MR 2 SPYDER Toyota’s MR 2 Spyder has a mid mounted OOCHC VVT-I engine. The softtop MR 2Spyder delivers genuine wind – in – your hair sport car performance. TOYOTA SEQUOIA Toyota’s full size V8 sequoia seats up to the eight and boasts enough cargo capacity, and cup holders to make all eight happy. Given its size and structure, the sequoia is sure to exceed customer expectations. TOYOTA 4 RUNNER Larger, more powerful and more capable, the completely redesigned 2003 4 Runner is engineered to follow in the footsteps of world’s great adventures.
TUNDRA REGULAR CAB The Toyota Tundra regular Cab offer a powerful double overhead Cam (DOHC) 32 – Valve I –FORCE V8. It is the truck other full size pickups want to be. TUNDRA ACCESS CAB Toyota start with the power of regular cab, add two doors and luxuries like front fabric captain’s chairs. TOYOTA PUIRS The vehicle is powered by the Toyota hybrid system (THS), prius combines a super efficient gasoline engine with a powerful; electronic motor and prius recharges itself while it’s being driven.
REVIEW AND LITERATURE
INTODUCTION TO PERFORMANCE APPRAISAL ABSTRATCT Performance appraisal has been considered as the most significant and indispensable tool for an organization, for the information it provides is highly useful in making decisions regarding various personnel aspects such as promotion and merit increases. Performance measures also link information gathering and decision making process which provide a basis for judging the effectiveness of personnel sub divisions such as recruiting, selection , training and compensation. The major objective of the study is to study the existing performance appraisal system being undertaken in Amana Toyota thottada, and to know the perception of employees& effectiveness of the existing system of performance appraisal and to know the level of satisfaction of employees. Introduction Appraising the performance of the individual, group and organization is a common practice of all societies.while, in some instance these appraisal process are structured and formally sanctioned , in other instances they are integral and informal part of daily activities..The teacher evaluates the performance of student, banker evaluates the performance of creditors , parents evaluate the performance of their children and all f us consciously or unconsciously evaluate our action fro, time to time. In mall interaction performance evaluation is domain a haphazard an often unsystematic way. but in the organization formal programs of evaluating employees and managerial performance conducted in a systematic and planned manner have achieved popularity in recent years . During and after world war 1the systematic performance appraisal was quite prominent. Credit goes to Walter dill Scott for systematic performance appraisal technique of man to man rating system (or merit rating ). It was used for evaluating military officers. Industrial concerns also use this system during 1920s and 1940s for evaluating hourly paid workers . however with the increase of training and management development programmes from 1950s management started adopting performance appraisal for evaluating technical , skilled , professional and managerial personnel as a part of training and managerial development programs . with this evolutionary process , the term merit rating have been changed into employee appraisal or
performance appraisal .this is not mere change in the term but a change I the scope of activity as the emphasis of merit rating was limited to personnel traits , whereas performance appraisal covers result , accomplishment
and performance .therefore performance appraisal enables
employee to get incentive treatment according to their potential , sincerity and capabilities . They get motivated by which , performance appraisal benefits not only employee but also the management in the form of greater productive efficiency . therefore , performance appraisal , employee appraisal , performance review or ( career) development discussion is a method by which the job performance of an employer is evaluated generally in the terms of quality quantity , cost and time typically by the corresponding manager or supervisor . A performance appraisal is a a part of guiding and managing career development.It is the process of obtaining , analyzing
and recording information about the relative worth of
employees to the organization. Performance appraisal is an analysis of an employee’s recent successes and failures, personal strength and weakness, and suitability of promotion or future training. it is also the judgment of employees performance in a job based considerations other than productivity alone . Generally, the aim of the performance appraisal is
Give employees feedback on performance Identify employee training needs Document criteria used to allocate organizational rewards Form a basis for personnel decisions; salary increases promotions, disciplinary actions,
bonus etc. Provide opportunities for organization diagnosis and development Facilitate communication between employee and employer Validate selection techniques and human resource policies to meet federal equal employment opportunity requirements. To improve performance through counseling, coaching ad development.
Popular methods used in performance appraisal Self appraisal Merit rate appraisal system Management by objectives
360 degree appraisal. Behavioral observation scale Behaviorally anchored rating scale
Trait based system which rely on factors such as integrity and consciousness are also used by businesses but have replaced primarily by more objective and result oriented methods .the scientific literature of the subject provides evidence that accessing employees on factors such
as these should be avoided. Performance appraisal continues to be subject matter of interest and importance to human
resource specialists. for decades ,performance appraisal has received considerable attention in the literature ,from both researchers and practitioners alike .many others (Bernardin &klatt,1985 Posner Hardener 1989;maroney and Buckley 1992;Thomas &Bretz 1994)maintain that there is a considerable gap between theory and practice , and that human resource specialists are not making full use of the psychometric tools available . to support their claim these authors cite surveys of practitioners concerning current performance appraisal method and use . Nearly 2 decades ago , Taylor and Zawacki (1976)published the first of two articles that documented trends in performance appraisal usage among us organization . when comparing the results of two surveys taken 5 years apart , the authors noted a remarkable shift away from what they called collaborative approaches (e.g. MBO. BARS ) and toward the more traditional performance
appraisal techniques (graphic rating scales )Taylor and Zawacki (1984)
hypothesized that managers , responding to tne legal constraints prevalent in 1980s preferred techniques that were defensible in court .accordingly managers tended to be more satisfied with the objective traditional approaches ,whereas their subordinates seemed to prefer the developmental collaborative methods thought the 1980s , researchers continued to document performance appraisal practice . Bernadin and Klatt (1985)noted that the small firms tended to rely heavily on trait based approaches ,while larger firms relied on a combination of trait , behavioral and results based technique . they noted
that one in five organizations did not
give employees the opportunity to review the performance appraisal results . In other study , Locher and Leel (1988) identified graphic rating scales(57.1%), open ended essay (21.3%) and management by objectives (18.1%) as the most popular performance appraisal techniques .unlike Taylor and Zawacki(1984)before them Locher and Teel identified a trend towards the use of MBO as a popular technique . besides recording current trends in
methods used, only a few researchers have clarified how performance appraisal data is used. they identifies the main developmental uses as improving work performance ,communicating expectations, determining employee potential and aiding employee counseling. “Performance appraisal is the systematic evaluation of the individual with regard to his or her performance on the job and their potential for development”. BEACH According to DALE YODGER “performance appraisal to all formal procedures aimed working organization to evaluate personalities and contribution of one potential group members.” EDWIN B FLIPPO, defined the term performance appraisal as “ a systematic , periodic and so far homely possible , an impartial rating of an employees excellence in matters pertaining to his present to his present job and his personalities for a better job”. According to JOHN A SHUBIN defined as “merit rating is a systematic appraisal of the employees’ personality and performance on the job and is designed to determine his contribution and relative worth to the firm”. In the words of L A LARKIN, “performance appraisal is the systematic assessment by merit factors of the behavior and/or ability of workers in their work and a means whereby each worker may be rewarded a percentage in addition to his wage according to his assessed merit value .” ALFORD AND BEATTY, says “it is the evaluation or appraisal of the relative worth to the company of am man’s service on job .”
FLIPPER says , “ performance appraisal is a systematic , periodic and so far as humanly possible and impartial rating of employees excellence of matters pertaining to his potentialities for a better job .” Performance appraisal has been defined in many ways .the simplest way to understand the meaning the meaning of performance appraisal is as follows ;“ a regular and continuous evaluation of quality , quantity and style of the performance along with the assessment of the
factors influencing the performance and behavior of an individual’s called performance appraisal”. Cleveland, Murphy and Williams (1989) argued that there is relation between organizational characteristics and the uses of a performance appraisal system stonich (1984) also argued that performance measurement in an organization should be in tune with its structure and culture . since the nature of the enterprise in which each industry is engaged varies , its organizational type business policy internal and external environment are also usually different . Apart from organizational control .ilgen ,barnes Farrell,and mc kellin (1993) concluded , from their extensive review of literature since 1980s about performance appraisal , that there are four aspects that need to be considered . in practice performance appraisal systems covers a wide range of these aspects and seldom have exactly the same nature and functions . in order to integrate findings in the area . chu (2002) proposed a comprehensive framework including 6 categories namely appraisal purposes , appraisal personnel, appraisal criteria , appraisal methods , appraisal timings and appraisal feedback . Performance appraisal and job satisfaction Different theories may help to understand the relation between performance appraisal and job satisfaction..Research in cognitive psychology shows that measurable and challenging goals help to align individuals and companies goals leading to higher levels of motivation and hence,employees’s work effort .furthermore ,goal setting theory implies that the level of goal achievement is closely related to employee satisfaction . frequently organizations link goal achievement to remuneration system such as performance related pay .studies have shown that performance related pay is associated with high levels of overall job satisfaction (Heywood &wei,2006),( Green &Heywood 2008) in a recent paper Bryson (2012)empirically investigate the relation between piece rate , team incentive and or profit sharing schemes and job satisfaction and show that workers under PRP scheme are more satisfied with their job , controlling for wage levels as well as individual ,business and country fixed affects . Research has broadly analyzed the impact thof the social context of performance appraisals or employee reaction to these appraisals (Levy &William (2004) (Pichler 2012)
One dimension focuses on the rate relationship comprising topics such as supervisors support ,
trust , rating accuracy ,and reliability as a precondition for the acceptance and
usefulness of formal appraisal systems . Rating situations, which are very prominent in the organization (Kane, 1995) , lead to less acceptance among employees
and decrease the
economic incentives to provide effort (Prendergast & Topel, 1996). These rating distortions may have any different reasons including strategic incentives of the raters such as favoritisms or punishment, (Poon , 2004) or interpersonal motives . Furthermore, it has been shown that rater’s personality traits influence overall rating decisions (Kryzystofiak , 1988). Other contextual factors include instance , employees satisfaction with the PA process as a whole , the performance appraisal feedback or employee evaluation of the perceived quality , justice , fairness of the performance appraisal regime ( Green berg 1996). Furthermore employee participation in PA process is positively related to the satisfaction with the PA system, perceived fairness and acceptance of such a practice
USES OF PERFORMANCE APRAISAL SYSTEM
Performance improvement. Performance feedback allows the employee, managers, personal specialists to intervene with appropriate action to improve performance .
Compensation adjustment: performance evaluation help the decision makers determine
who should receive pay raises. Placement decisions: promotion, transfers
anticipated uses. Career planning and development. Staffing process deficiencies. Informational in accuracies. Job design and error s- poor performance may be a symptom of ill- conceived job design. Equal employment opportunity. External challenges. Feedback to human resources.
and demotions are usually based on part or
PROBLEMS OF PERFORMANCE APPRAISAL
Rating bias Failures of superior in conducting performance appraisal interview . Most part of the performance is based on the subjectivity. Less reliability and validity of the performance appraisal techniques.
ERRORS IN PERFORMANCE APPRAISAL
The halo effect or event . Leniency or constant errors. The centre tendency problem. Similarity error . Miscellaneous biases.
