Human Resource Management Analysis: Hrm in Tata Essay Example

has auto manufacturing and assembly plants in:

• Jamshedpur
• Pantnagar
• Lucknow
• Sanand
• Dharwad
• 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. The second-generation Tata Indica; one of the best selling cars in the history of the Indian automobile industry Tata Nano, the world's cheapest car

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 A newer version of the car, named Indica V2, was a major improvement over the previous version and quickly became a mass-favorite.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 ;amp; Globus, jointly developed with subsidiary Hispano Carrocera) and trucks (Novus, jointly developed with subsidiary Tata Daewoo). In 2006, Tata formed a joint venture with the Brazil-based Marcopolo, Tata Marcopolo Bus, to manufacture fully built buses and coaches.

In 2008, Tata Motors acquired the 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 colloboration with DRDO.

Operations

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.

Products

• Tata Starbus Low Floor 1610
•  Tata Marcopolo buses in the Delhi BRT
•  Commercial vehicles
• Military vehicles
• Electric vehicles Performance Appraisal

Introduction To Human Resource Management

Human Resource (or personnel) management, in the sense of getting things done through people, is an essential part of every manager’s responsibility, but many organizations find it advantageous to establish a specialist division to provide an expert service dedicated to ensuring that the human resource function is performed efficiently. “People are our most valuable asset” is a cliche, which no member of any senior management team would disagree with.

Yet, the reality for many organizations is that their people remain undervalued, under trained and underutilized. The market place for talented, skilled people is competitive and expensive. Taking on new staff can be disruptive to existing employees. Also, it takes time to develop ‘cultural awareness’, product / process / organization knowledge

and experience for new staff members.

Functions Of Human Resource Management

Following are the various functions of Human Resource Management that are essential for the effective functioning of the organization:

• Recruitment
• Selection
• Induction
• Performance Appraisal
• Training & Development Recruitment

The process of recruitment begins after manpower requirements are determined in terms of quality through job analysis and quantity through forecasting and planning. Selection The selection is the process of ascertaining whether or not candidates possess the requisite qualifications, training and experience required. Induction Induction is the technique by which a new employee is rehabilitated into the changed surroundings and introduced to the practices, policies and purposes of the organization.

What Is Performance Appraisal

Performance Appraisal is defined as the process of 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 consists of all formal procedures used in working organizations and potential of employees. According to Flippo, “Performance Appraisal is the systematic, periodic and an important rating of an employee’s excellence in matters pertaining to his present job and his potential for a better job. ”

Characteristics

Performance Appraisal is a process.

• It is the systematic examination of the strengths and weakness of an employee in terms of his job.
• It is scientific and objective study. Formal procedures are used in the study.
• It is an ongoing and continuous process wherein the evaluations are arranged periodically according to a definite plan.
• The main purpose
  

of Performance Appraisal is to secure information necessary for making objective and correct decision an employee.

Process

• The process of performance appraisal:
• Establishing performance standards
• Communicating the Standards
• Measuring Performance
• Comparing the actual with the standards
• Discussing the appraisal
• Taking Corrective Action

Limitations

• Errors in Rating
• Lack of reliability
• Negative approach
• Multiple objectives
• Lack of knowledge

Methods Of Performance Appraisal

The foregoing list of major program pitfalls represents a formidable challenge, even considering the available battery of appraisal techniques. But attempting to avoid these pitfalls by doing away with appraisals themselves is like trying to solve the problems of life by committing suicide.

The more logical task is to identify those appraisal practices that are (a) most likely to achieve a particular objective and (b) least vulnerable to the obstacles already discussed. Before relating the specific techniques to the goals of performance appraisal stated at the outset of the article, We shall briefly review each, taking them more or less in an order of increasing complexity. The best-known techniques will be treated most briefly. Essay appraisal In its simplest form, this technique asks the rater to write a paragraph or more covering an individual's strengths, weaknesses, potential, and so on.

In most selection situations, particularly those involving professional, sales, or managerial positions, essay appraisals from former employers, teachers, or associates carry significant weight.

Graphic Rating Scale

This technique may not yield the depth of an essay appraisal, but it is more consistent and

reliable. Typically, a graphic scale assesses a person on the quality and quantity of his work (is he outstanding, above average, average, or unsatisfactory and on a variety of other factors that vary with the job but usually include personal traits like reliability and cooperation.

It may also include specific performance items like oral and written communication.

Field Review

The field review is one of several techniques for doing this. A member of the personnel or central administrative staff meets with small groups of raters from each supervisory unit and goes over each employee's rating with them to (a) identify areas of inter-rater disagreement, (b) help the group arrive at a consensus, and (c) determine that each rater conceives the standards similarly.

Forced-choice Rating

Like the field review, this technique was developed to reduce bias and establish objective standards of comparison between individuals, but it does not involve the intervention of a third party.

Management By Objectives

To avoid, or to deal with, the feeling that they are being judged by unfairly high standards, employees in some organizations are being asked to set - or help set - their own performance goals. Within the past five or six years, MBO has become something of a fad and is so familiar to most managers that I will not dwell on it here.

Ranking Methods

For comparative purposes, particularly when it is necessary to compare people who work for different supervisors, individual statements, ratings, or appraisal forms are not particularly useful. Instead, it is necessary to recognize that comparisons involve an overall subjective judgment to which a host

of additional facts and impressions must somehow be added. There is no single form or way to do this. The best approach appears to be a ranking technique involving pooled judgment. The two most effective methods are alternation ranking and paired comparison ranking.

1. “Alternation ranking”: Ranking of employees from best to worst on a trait or traits is another method for evaluating employees. Since it is usually easier to distinguish between the worst and the best employees than to rank them, an alternation ranking method is most popular. Here subordinates to be rated are listed and the names of those not well enough to rank are crossed. Then on a form as shown below, the employee who is highest on the characteristic being measured and the one who is the lowest are indicated. Then chose the next highest and the next lowest, alternating between highest and lowest until all the employees to be rated have been ranked.
2.  “Paired-comparison ranking”: This technique is probably just as accurate as alternation ranking and might be more so. But with large numbers of employees it becomes extremely time consuming and cumbersome. Both ranking techniques, particularly when combined with multiple rankings (i. e. , when two or more people are asked to make independent rankings of the same work group and their lists are averaged), are among the best available for generating valid order-of-merit rankings for salary administration purposes.

Assessment Centers

So far, we have been talking about assessing past performance. What about the assessment of future performance or potential? In any placement decision and even more so in promotion decisions, some prediction of

future performance is necessary. How can this kind of prediction be made most validly and most fairly? 360

Degree Feedback

Many firms have expanded the idea of upward feedback into what the call 360-degree feedback. The feedback is generally used for training and development, rather than for pay increases. Most 360 Degree Feedback system contains several common features.

Appropriate parties – peers, supervisors, subordinates and customers, for instance – complete survey, questionnaires on an individual. 360 degree feedback is also known as the multi-rater feedback, whereby ratings are not given just by the next manager up in the organizational hierarchy, but also by peers and subordinates. Appropriates customer ratings are also included, along with the element of self appraisal. Once gathered in, the assessment from the various quarters are compared with one another and the results communicated to the manager concerned.

Another technique that is useful for coaching purposes is, of course, MBO. Like the critical incident method, it focuses on actual behavior and actual results, which can be discussed objectively and constructively, with little or no need for a supervisor to "play God. " Advantages Instead of assuming traits, the MBO method concentrates on actual outcomes. If the employee meets or exceeds the set objectives, then he or she has demonstrated an acceptable level of job performance. Employees are judged according to real outcomes, and not on their potential for success, or on someone's subjective opinion of their abilities.

The guiding principle of the MBO approach is that direct results can be observed easily. The MBO method recognizes the fact that it is difficult to neatly dissect all the

complex and varied elements that go to make up employee performance. MBO advocates claim that the performance of employees cannot be broken up into so many constituent parts, but to put all the parts together and the performance may be directly observed and measured. Disadvantages This approach can lead to unrealistic expectations about what can and cannot be reasonably accomplished.

Supervisors and subordinates must have very good "reality checking" skills to use MBO appraisal methods. They will need these skills during the initial stage of objective setting, and for the purposes of self-auditing and self-monitoring. Variable objectives may cause employee confusion. It is also possible that fluid objectives may be distorted to disguise or justify failures in performance.

Benefits of Performance Appraisals

• Measures an employee’s performance.
• Helps in clarifying, defining, redefining priorities and objectives. Motivates the employee through achievement and feedback.
• Facilitates assessment and agreement of training needs.
• Helps in identification of personal strengths and weaknesses.
• Plays an important role in Personal career and succession planning.
• Clarifies team roles and facilitates team building.
• Plays major role in organizational training needs assessment and analysis.
• Improves understanding and relationship between the employee and the reporting manager and also helps in resolving confusions and misunderstandings. Plays an important tool for communicating the organization’s philosophies, values, aims, strategies, priorities, etc among its employees.
• Helps in counseling and feedback.

Rating Errors in Performance Appraisals

Performance appraisals are subject to a wide variety of inaccuracies and biases referred to as 'rating errors'. These errors can seriously affect assessment results.

Some of the most common rating errors are: Leniency or severity: Leniency or severity on the part of the rater makes the assessment subjective. Subjective assessment defeats the very purpose of performance appraisal.

Ratings are lenient for the following reasons:

• The rater may feel that anyone under his or her jurisdiction who is rated unfavorably will reflect poorly on his or her own worthiness.
•  He/She may feel that a derogatory rating will be revealed to the rate to detriment the relations between the rater and the ratee.
•  He/She may rate leniently in order to win promotions for the subordinates and therefore, indirectly increase his/her hold over him.

Central tendency: This occurs when employees are incorrectly rated near the average or middle of the scale.

The attitude of the rater is to play safe. This safe playing attitude stems from certain doubts and anxieties, which the raters have been assessing the rates. Halo error: A halo error takes place when one aspect of an individual's performance influences the evaluation of the entire performance of the individual. The halo error occurs when an employee who works late constantly might be rated high on productivity and quality of output as well ax on motivation. Similarly, an attractive or popular personality might be given a high overall rating. Rating employees separately on each of the performance measures and encouraging raters to guard against the halo effect are the two ways to reduce the halo effect.

Rater effect: This includes favoritism, stereotyping, and hostility. Extensively high or low score are given only to certain individuals or groups based on the

rater's attitude towards them and not on actual outcomes or behaviors; sex, age, race and friendship biases are examples of this type of error. Primacy and

• Regency effects: The rater's rating is heavily influenced either by behavior exhibited by the ratee during his early stage f the review period (primacy) or by the outcomes, or behavior exhibited by the ratee near the end of the review period (regency). For example, if a salesperson captures an important contract/sale just before the completion of the appraisal, the timing of the incident may inflate his or her standing, even though the overall performance of the sales person may not have been encouraging. One way of guarding against such an error is to ask the rater to consider the composite performance of the rate and not to be influenced by one incident or an achievement.
• Performance dimension order: Two or more dimensions on a performance instrument follow each other and both describe or rotate to a similar quality. The rater rates the first dimensions accurately and then rates the second dimension to the first because of the proximity. If the dimensions had been arranged in a significantly different order, the ratings might have been different.
• Spillover effect: This refers lo allowing past performance appraisal rating lo unjustifiably influence current ratings.

Past ratings, good or bad, result in similar rating for current period although the demonstrated behavior docs not deserve the rating, good or bad.

Key Concepts In Performance Management System

In order to understand the Performance Management System at Tata Motors , some concepts need to be explained which play a

very important role in using the PMS successfully. They are:

Kra’s (Key Result Areas)

The performance of an employee is largely dependent on the KRA score achieved by the employee during that particular year. Thus, it is necessary to answer a few basic questions i. e. What are the guidelines for setting the KRA’s for an employee? How does an employee write down his KRA’s for a particular financial year?

KRA’s: The Four Perspectives

How is the KRA score calculated for an employee on the basis of the targets sets and targets achieved?

Behavioral Traits

Some of the qualitative aspects of an employees’ performance combined with the general behavioral traits displayed by the employee during a year constitutes his behavior traits. An employee is assigned the rating on the basis of the intensity of the behavior displayed by him.

They play a very important role in the deciding the final performance rating for an employee as is even capable of shifting the rating one level upwards/downwards.

Bharti 2010 Leadership Competency Framework

This competency framework is a simple and structured way to describe the elements of behaviors required to perform a role effectively. This framework also tries to assess the performance of an employee objectively.

The Performance Rating Process

The rating process tries to explain the four different types of rating that an employee can achieve i. e. EC, SC, C and PC.

It also explains the criteria, which is considered for awarding any of these ratings to the employee.

Promotion And Rating Disrtribution Guidelines

The promotion and normal distribution guidelines provide

the framework within which the performance appraisal process has to work. It is very important that the HR department pays due attention to these guidelines while preparing the bell curves for various functions and the consolidated bell curve for all the functions. These guidelines also help in deciding upon the promotion cases in a year.

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.. Goal-Setting Model A goal setting program in an organization requires careful planning. As shown in the figure, the first three factors in goal setting process are establishing the goal, achieving goal commitment, and overcoming resistance to goal acceptance. Goals can be established in a variety of ways. Best way is to set by joint participation between the employee and the supervisor. This method often leads to employee commitment, a crucial ingredient in effective goal setting. Goal Setting S. M. A. R. T.

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

the organization. Superiors fill out that form keeping in view the performance of their subordinate over the year.

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

Research

Abstract

Tata Motors is India’s One of the most successful automobile company. It currently Employees 59,759 (2012) personnel , who are constantly evaluated and appraised. This Gives us the opportunity to study the performance appraisal method by the company and it’s efficiency towards employees as well as Organization. Objective of the Study: To carry out the study at Tata Motors, we framed the following objectives

1. Identification of the technique of performance appraisal followed in Tata Motors.
2.  Employee attitude towards the present appraisal system.
3. Review of the current appraisal system in order to Enhance productivity, Attain global standards
4. To provide suggestions & recommendations from the study conducted.

Hypotheses of the Study

• Performance Appraisal is not having positive effect on Tata motors employee on Lucknow Branch. ( Ho)
• Performance Appraisal Is having positive effect on Tata Motors Employees of Lucknow branch.

The Study is Primarily Based on the Primary data Collected through Questionnaire from Tata Motors Employees.

Suggestions And Conclusion

After having analyzed the data, it was observed that there was appraisal in the organization. It is an effective tool, since it is on continuous basis.

Performance appraisals in Tata Motors is satisfactory for its effective management and evaluation of staff. Appraisals here are helping individuals to develop, improve organizational performance, and feed into business planning. Performance appraisals enable management in monitoring of tandards, 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. It can also include, in some cases, feedback from external sources, such as customers and suppliers or other interested stakeholders.

The appraisal process is continuous here and encourages employee productivity with positive feedbacks.

Findings

The very concept of performance appraisal is marketed throughout the organization, people have accepted it and understood its importance to the organization. To market such a concept, it should not start at bottom, instead it should be started by the initiative of the top management. This would help in percolating down the concept to the advantage of all, which includes the top management as well as those below them. This means that the top management has to take a welcoming and positive approach towards the change that is intended to be brought.

Further, at the time of confirmation also, the appraisal form should not lead to duplication of any information. Instead, detailed appraisal of the employee’s work must be done – which must incorporates both the work related as

well as the other personal attributes that are important for work performance. It should be noted that the appraisal form for each job position should be different as each job has different knowledge and skill requirements. There should not be a common appraisal form for every job position in the organization.

The job and role expected from the employees should be decided well in advance and that too with the consensus with them. A neutral panel of people should do the appraisal and to avoid subjectivity to a marked extent, objective methods should be employed having quantifiable data. The time period for conducting the appraisal should be revised, so that the exercise becomes a continuous phenomenon. Transparency into the system should be ensured through the discussion about the employee’s performance with the employee concerned and trying to find out the grey areas so that training can be implemented to improve on that.

The feedback doesn’t Come from multiple source. It should to increase the efficiency. Lack of Truth about Organization culture is conveyed through 90 degree of appraisal system. it should be overcome. Superiors response tend to be bias, which make employees unsatisfied. Thus, a better system can be installed. Linking, Findings to the rewards can prove to be unfair. Transparency should be bought in appraisal system.

Assesses denies the truth of negative feedback, as it’s done by one person. More parties should be involved. System can be used to humiliate people, if Employer and employee relations are not good. Ignores performance in terms of reaching goals, which can be disastrous for the organization. Ideally in the present day scenario, appraisal should

be done, taking the views of all the concerned parties who have some bearing on the employee. But, since a change in the system is required, it cannot be a drastic one. It ought to be gradual and a change in the mindset of both the employees and the head is required.