SUMMER TRAINING REPORT ON EFFECTIVENESS OF PERFORMANCE APPRAISAL SYSTEM IN ESCORTS AGRI-POWERTRAC LTD, FARIDABAD SUBMITTED IN THE PARTIAL FULFILLMENT OF THE DEGREE OF BACHELOR OF BUSINESS ADMINISTRATION (2006-2009). SUBMITTED TO : SUBMITTED BY: CONTROLLER OF EXAMINATION Nupur Singh
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SUMMER TRAINING REPORT
ON
EFFECTIVENESS OF
PERFORMANCE APPRAISAL
SYSTEM IN ESCORTS AGRI-
POWERTRAC LTD,
FARIDABAD
SUBMITTED IN THE PARTIAL FULFILLMENT OF THE DEGREE
OF BACHELOR OF BUSINESS ADMINISTRATION (2006-2009).
SUBMITTED TO: SUBMITTED
BY:
CONTROLLER OF EXAMINATION Nupur Singh
M.D. UNIVERSITY, 2405
ROHTAK BBA 5TH
SEMESTER
D.A.V INSTITUTE OF MANAGEMENT
INDEX
Sr. No. ParticularsChapter -1 INTRODUCTION OF THE
TOPICMan power planningObjectives of HRMScope of HRMRole of HRMManagerial function of HRMTeam EffectivenessObjectives of the study
Chapter-2 COMPANY PROFILEHistory of InsuranceInsurance sector in IndiaImportant MilestoneHistory of ICICI InsuranceDifferent Plans of ICICIVision and missionResearch methodologyMethods of data collectionPrimary data Secondary data
Chapter-3 ANALYSIS AND INTERPRETATIONSurveys of customers Limitations of the study
Chapter-4 CONCLUSIONS AND RECOMMENDATIONAnnexureBibliography
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ACKNOWLEDGEMENT
This project report prepared by me is a result of the joint effort of several
helping hands of the Personnel Department of Escorts Ltd., Farmtrac Division,
Faridabad. The knowledge of our theoretical studies is absolutely incomplete without
its proper implementation and application in the diversified corporate world of today.
I have been really opportunistic to be a part of the Escort Group during my summer
training, which is one of the leading business houses in today’s scenario.
An undertaking of study like this is never an outcome of efforts put in by a
single person, rather it bears imprint of number of persons who directly or indirectly
helped me in completing the study.
At the outset I would like to extend my sincere gratitude to Mr. K. S. Yadav,
(Head of Personnel Department, Farmtrac Division) for providing the opportunity to
carry out the research & for providing guidance during the preparation of the report
whenever needed.
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I would like to thank Mr. VISHAL SINGH Personnel Manager-I.R. for
providing the basic knowledge on personnel management, project topic & the
methodology to be used for preparing the report. I am also thankful to Mr. S.P
Tyagi, (HR Manager), for sharing his knowledge.
Last but not the least, I am thankful to the MS. SURBHI KAPOORlecturer
who has provided me the necessary guidance and shared her experiences without
which it was not possible for me to complete this project.
I am once again, thankful to members of ESCORTS Group for their co-operation.
(NUPUR SINGH)
PREFACE
The study conducted in Farmtrac division of Escorts was aimed at finding out the effectiveness of performance appraisal system and to give suggestions to improve the system.
For the purpose of collection of the information the mode of communication of survey adopted was the collection of primary data through questionnaire with personal interview of the junior managers.
I have measured the effectiveness of performance appraisal system on the basis of certain aspects. These are:-
How regularly appraisal is done.
Is appraisal system has the scope for communicating top management objectives.
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Is appraisal system also helpful in explaining what is expected from the employee?
Is appraisal system focuses on individual development for better results.
To what extent appraiser helps appraisee to plan performance in advance.
Are appraisal system helps employees to plan their performance well in advance?
Is counseling helps in communicating the support needed by the employees from their superiors.
True feedback is there or not. And if it is there then whether it helps in getting insights into employees’ weaknesses and strengths.
Whether management is serious for the appraisal outcomes and follow-up with the training needs identifies during performance appraisal.
CHAPTER-1
INTRODUCTION TO THE
“ESCORTS LIMITED
(FARMTRAC)”
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THE ESCORTS SYMBOL
The Escorts symbol means more than a seen by the eye. It has been prepared
with certain objective in mind and is symbolic in more then one way.
The philosophy behind Escorts and the ‘E’ in the Escorts is “Enterprise”. The
Hexagon is a symbol of productivity, precision when interposed as a nut. It
symbolizes a craftsmanship, and mending productivity. The sprains superimposed on
the Hexagon represent the workers and the people of the Escorts. This forms the letter
‘E’ the first of Escorts a company even on the more changing unveiling the future.
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ESCORTS AGRI MACHINERY GROUP
The Vision
We shall strive to be the Numero Uno in the Indian
tractor industry and top five tractor manufacturers
in the world.
We shall continuously strive to meet the ever rising
expectations of our valued customers at the
lowest internal cost.
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We shall aim to offer the farming community a
range of innovative products and services, which
shall enable them to improve their productivity
and
competitiveness.
We shall achieve a turnover of RS. 20 Billion And
profit of RS. 2 Billion By the year 2000.
Transcending national boundaries, we shall strive
to attain exports of one tenth of our total tractor
production by the year 2000.
MISSION
We will achieve leadership in market share & profitability in the domestic
tractor market by the year 2004-2005 and shall be the world's largest supplier of
sub 100 HP tractors. We shall proactively contribute to the prosperity of the rural
economy by defining a larger role for ourselves in the Food and Agriculture sector.
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COMPANY PROFILE
ESCORTS LIMITED are the holding company of Escorts groups. Post restructuring,
Agri Machinery or tractors has become the focus area of operations. Other businesses
like I.T., construction equipment are controlled through subsidiaries and joint
ventures.
HISTORICAL BACKGROUND
Escorts came into being with a vision and a mission. A vision that led two
brothers YUDI NANDA and HARI NANDA to branch out from their family’s
prospering transport business and institute ventures that were to become the
foundation of ESCORTS Ltd. Escorts agents limited was born at Lahore on 17th Oct,
1944 with YUDI NANDA as managing director and HARI NANDA as the chairman.
After that owning to the opportunities lying in the Indian villages Escorts
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(Agricultural Machines) Ltd., was launched in 1948 with YUDI NANDA as the
director. Tragically, he died in an accident in 1952. Then Escorts Agents Ltd. And
Escorts (Agricultural Machines) Ltd. Was merged in 1953 to create a single entity
Escorts Agents Pvt. Ltd. The company’s incorporation in its present name, Escorts
Ltd. was effected on 18th January 1960.
Having initially started with a franchise for vesting house domestic
appliances, Escorts has come a long way in manufacturing and marketing a large
range of products. It has pioneered farm mechanization in India through import and
distribution of agricultural tractors.
The manufacturing operations commenced in 1954, and since then the
following range of products have been introduced in the country:-
1954: Piston rings and Cylinder liners
1960: Pistons
1961: Assembly of tractors
1962: Motorcycles and railway couplers
1963: Automotive shock absorbers
1965: Agricultural tractors under Escorts brand name
1969: Agricultural tractors under Ford brand name
1971: Industrial and construction equipment
1979: Excavator loaders
1981: 100cc motorcycles
1985: Electronic PABXs
1991: Harvester combines
1992: VSAT Satellite Communication System
1993: Mobile communications
1995: Fork lift trucks
1996: Disengagement of joint venture collaboration with New Holland and launch of
FARMTRAC Tractor.
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The single word completely described the character philosophy and success
of the company, which grew from a small beginning to one of the ever-changing
dimensions. For five decades Escorts has been in the core sectors like Agriculture,
Transportation, Construction & Resources for Engineering change through optimum
product performance.
Today Company is running with nearly 10,000 employees, 19 modern
manufacturing plants and a turnover exceeding Rs. 400 crores. The Escorts group
ranks among India’s leading Engineering Conglomerates.
From its inception Escorts has firmly believed that success inspiring on being
close to the customer thus every corporate endeavor addresses it to end used,
adjusting to ever changing markets.
At every step of the way, Escorts had inducted the latest technology by
forming alliances with the world’s most advanced Engineering and Electronic
companies, constantly adopting their technology according to India’s need and
situation.
To make sure the finished product delivers on its promise the company had
created an extra-ordinary distribution and service network that stays with the
customer.
Escorts came into its own with a far reaching vision for the future to stay over
close to the customers with products made in India to international standards. The
source of Escorts consistent growth is commitment and contribution to the core needs
of the country. Escorts have firmly believed that success depends on being close to
the customers. As early as in 1944 while others were concentrating on selling their
goods. Escorts sought to “Escorts” its merchandise right up to the customer’s
doorstep. This meant staying close to the customer, understanding their needs, giving
them a product that met these needs ensuring that it worked smoothly thereafter.
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Today with Mr. Rajan Nanda as a Chairman and Mr. Anil Nanda as a Vice-
Chairman the ideals have not changed. Thus, every corporate endeavor addresses to
the end users and the ever-changing market, substantial man-hours are being devoted
to planning a new range with the objective of consistently offering greater value to
the customer.
“In every area we touch our task has always remained one of engineering
change” Rajan Nanda. In every step, Escorts has induced the latest technology to
make products that are not merely “better” but those meet international standard. For
Escorts, these are two benchmarks of industrial achievements, the distinct, undisputed
edge of technology and the internationalization of business.
In five decades Escorts has grown to become one of the top industrial
conglomerates in the country.
FIVE DECADES OF ENGINEERING CHANGE
THE DECADE OF CREATION: 1944-1954
The launch of Escorts Agents Pvt. In Lahore and setting it all up again in
Delhi after the country’s partition. The beginning of an industry legend, with a tractor
franchise, followed by India’s first institute of farm mechanization and the
company’s first industrial venture, Goetze (India) Ltd., at Patiala, in equity
collaboration with Goetze of Germany.
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THE DECADE OF AUTOMATION: 1955-1964
Escorts goes public. A full-fledged manufacturing orientation takes roots with
the commencement of Escorts’ own brand of tractors and next major field of
operation: motorcycles. The company joins hands with Mahle to produce India’s
most advanced pistons.
THE DECADE OF CONSOLIDATION: 1965-1974
The foundation of the Ford-Escorts alliance for India’s finest tractors, soon to
make the group the largest selling tractor manufacturing. Escorts Employees
Ancillaries Ltd., a unique venture in industrial democracy, comes into being.
Escorts receives FICCI Award for outstanding contribution to Indian
agriculture. The company crossed national boundaries with its first export of 400
tractors to Afghanistan, won in a global tender. A triumph of Escorts quality and
competitiveness, this was perhaps the world’s largest ever commercial airlift of its
kind.
THE DECADE OF DIVERSIFICATION: 1975-1984
One with Knorr Bremse follows an epoch-making alliance with JBC for
India’s first Excavator-loaders for railway breaks. With the Yamaha collaboration,
Escorts become the country’s largest motorcycle manufacturer. Acknowledged
leadership in automotive ancillaries- Mahle pistons and Goetze rings.
THE DECADE OF GLOBALISATION: 1985-1995
Escorts enters into joint venture with buy back arrangement with Class
(Harvester Combines) and Herion (Hydraulic valves) providing an entry to world
markets. A tie-up with Faun, powers the company to supremacy in hydraulic mobile
cranes. Escorts fights an epic battle against a corporate raid, the ultimate victory
providing the unshakable confidence of the company’s small shareholders
countrywide. Escorts Heart Institute commissioned, hailed as among Asia’s most
advanced. Escorts turnover crosses Rs. 15 billion. In the sunrise telecom sector,
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alliances with JS telecom, a Bosch company, and Hughes Network systems, world
leaders in VSAT networks.
THE DECADE AHEAD: 1996-
The Mission is Globalization and the emphasis will be on core sector
investments. Escorts is going in for a global network and for mega projects in the
21st century.
ESCORTS: RESTRUCTURING
Escorts Limited is all set to meet the future by drawing on its 50-year equity gained
from its inherent strengths, a strong presence in the Core Sector providing
complementary product lines and a vast marketing network; combining them with
India’s intrinsic cost advantages to become a global source point for high value
engineering products.
In order to meet the challenge of the future and to leave an indelible mark on
industrial scenario, Escorts has restructured the group along 4 business lines, each
headed by an independent CEO. The business groups are as follows:-
1) Agri Machinery Group
2) Construction Equipments
3) Automotive Ancillaries
4) Financial Services
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ESCORTS – THE GROUP INFRASTRUCTURE
The flagship of the Escorts group is Escorts Ltd. in the words of Mr. Rajan
Nanda. Chairman Escorts Limited., “in the last 50 years Escorts has been more than
merely one of India’s largest Engineering Companies. It has been a prime mover on
the industrial front; at every stage introducing products and technologies that helped
take the country forward in key areas. Today as the nation engages in its most
momentous economic transformation ever, we are once again adapting ourselves
towards being catalysts for qualitative growth by Engineering Change with a global
perspective.”
The group infrastructure comprises:-
23 main associates/subsidiary companies
12 manufacturing locations
A full-fledged R&D facility
Nearly 10,000 employees
24 regional marketing offices
Nearly 500 ancillaries forming the vendor base
4 financial services companies
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Asia’s best training institute of Farm Mechanization with 100 acre
demonstration farm.
EDDAL
Escorts Dealer Development Association providing management and
financial support to dealers.
THE ESCORTS GROUP
THE FLAGSHIP COMPANY
Escorts Limited
OPERATING DIVISIONS
o Agri machinery division
o Engineering division
o International business division
SUBSIDARY COMPANIES
o Escorts construction equipment Ltd.
(Cranes, excavators, truck loaders)
o Esconet services
o Escorts Automotives
(Investment)
o Escosoft technologies
o Escortal tele communication ltd.
o Cellnext solutions
o Automatrix India
o Escorts heart institute & research center
o Escorts hospital & research center
Medical care (erstwhile division of Escorts lived off 100% subsidy
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ASSOCIATE COMPANIES
o India Ltd. GOETZE (India) Ltd.
o GOETZE TP (India) Ltd.
o GOETZE (India) assets management Ltd.
o Escorts securities ltd.
o Escorts Mahle Ltd.
o Escorts Employees Ancillaries Ltd.
o Escorts Finance Ltd.
o IFS India Escorts
o Hughes Escorts communication ltd.
o Carraro (India) ltd.
ESCORTS GROUP CORE BUSINESSES
BUSINESS GROUPS PRODUCTS
Agri-Machnary Tractors
Construction equipment Earth moving Machines
Vibratory Rollers
Material Handling Equipments
Automotives Pistons, Piston Rings
Aluminum Cylinders
Shock Absorbers
Carburetors
Magnetos
Clutches
Railways Air Brakes
Couplers
Electro-Pneumatic Brakes
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Shock Absorbers
Telecom Cellular Telephone services
VSAT Services (satellite
communication system)
Financial Services Automobile Financing
Consumer Finance
Mutual Funds
Fixed Deposits
Manufacturing Facilities Machining
Painting
Assembly
Product Units(Pus) Engine PU
Transmission PU
Rear Axle PU
Assembly/tractor PU
Departments Personnel & HRD
Finance
Manufacturing Engineering
Plant Engineering & Machine
Maintenance
Information Systems
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THE BIRTH OF FARMTRAC
The Escorts Tractors Ltd, (ETL) came in existence as a separate company in
1969, after a collaboration of Escorts Ltd. with R.J.Hampson, executive vice
president, Ford Motor Company, USA and Mr. H.P.Nanda, President ETL. The
company entered to a capital market with a public-cum-right issue of partly
convertible debentures of 40.89 crores.
The Escorts group initiated the business reconstruction exercises in order to
strengthen its business in the face of reemerging challenges. New Holland the
international partner too was looking for ways to independently pursue its business
goals in this country. This lead to an amiable agreement between escorts and Ford
Motors to end their joint venture association. Escorts acquired the entire equity stack
of its international partner whereby the company is now the subsidiary of Escorts Ltd.
This acquisition has taken its logical conclusion on 1st April 1996 with the
emergence of Farmtrac division, which produces Farmtrac tractors with Escorts Ltd.
This led to the emergence of Escorts Agri-Machinery Group.
The parting of ways with New Holland also meant saying goodbye to Ford, a
brand name that has stood the company in excellent stead over two decades and half.
The brand name has also been changed from Ford to Farmtrac and the name of the
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Md. models Ford 3600, 3610 and 3620 has been changed to Farmtac 50 and Farmtrac
60.
A TRADITION OF TRUST
Economy range 27 - 35 HP
The very first range of tractors introduced by Escorts range of tractors has a
tradition of service and trust behind them. They are farmer year round dependable
friends.
MODELS
Escorts 325
Escorts 335
THE SUPER DIESEL SAVER
Value range 30- 47HP
The Powertrac range of tractor is designed to give spectacular diesel
economy. They act as ambrosia during there trying times of rising diesel costs.
MODELS
Escorts 430 powertrac- 30 HP
Escorts 435 powertrac- 35 HP
Escorts 440 powertrac- 40 HP
Escorts 450 powertrac- 47 HP
THE WORLD CHAMPIONS
Premium range 30- 75HP
Exported to the most advanced markets in the world, they are sophisticated
machines designed for the world demanding requirements of the progressive farmers.
This range is accepted very well in abroad. The farmtrac range is the ultimate icon in
the tractor technology with the advanced features for scientific farming and other
applications.
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MODELS
Farmtrac30- 30HP
Farmtrac35- 35HP
Farmtrac45- 42HP
Farmtrac50- 45HP
Farmtrac60- 50HP
Farmtrac70- 60HP
Farmtrac80- 75H
FARMTRAC DIVISION – A PROFILE
1) MANPOWER : 1659
MANAGERS : 162
SUPERVISORS : 156
TEAM MEMBERS : 1341
2) PRODUCTION CAPACITY
120 Tractors per day
3) CURRENT PRODUCT RANGE
FT 30
FT 35
FT 45
FT 50
FT 55
FT 60
FT 70
FT 80
4) TURNOVER
Rs. 400 CRORES
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5) EXPORTS
EXPORTED TO USA, TURKEY
TRACTORS EXPORTED IN 2001-02:
PLANNED FOR 2002-03 :
6) ISO 9000 CERTIFIED
ISO 9001 CERTIFIED
THE PLANT
The plant is equivalent with the following units:-
Engine Productive Unit (EPU)
Transmission Productive Unit (TPU)
Rear Axle Productive Unit (RAPU)
Tractor Productive Unit (TPU)
Paint Shop
Now transmission productive unit and rear axle productive unit have been
merged and now it is one productive unit known as transmission and rear axle
productive unit.
The plant is equipped with the following facilities:-
MACHINE SHOP: EPU, RAPU AND TPU have separate machine shops equipped
with several purpose machine (SPM) as well as Computerized Numerically
Controlled (CNC machine).
The different components machine in these shops with their