DEDICATION

We are dedicating our work to our parents and respected teacher Mr. Naveed
Ahmed Bhutta, who have played a vital role in our studies and have guided
us at every step with their precious ideas. No doubt this dedication is
insufficient and we can never repay for the role they have played in our
studies but we are sure that their work will prove itself an asset in our life
 ACKNOWLEDEGMENT

We are very thankful to human resource department of Honda atlas car,

which gave us valuable information. We pay gratitude to Honda atlas H R
manager giving valuable information.
We are also very thankful to Mr. Imran Farooq (human resource
manager of Honda atlas car) who helped a lot us by giving up to date
information.
We are very proud of our teacher Mr. Imran Ahmed Buhta, whose help
and instructions enable us to bind papers into project manner. We are very
thankful to him.
 PREFACE
“ The most beautiful things we can experience are the mysterious .It is
source of all true art and science ”
(Albert Einstein, 1930)

This project is based on the topic, which is assigned to us by our respected

teacher Mr. Naveed Ahmed buhta, the organization that we took for research
is:

“ Performance appraisal system of Honda atlas car ’’

In the project, we have tried to cover all the topics, which were assigned by
our teacher. Mr. Naveed Ahmed buhta have studied related to management
and how Honda atlas car applies these all methods in their organization for
the achievement of their goals and how he motivate their management staff
and the non-management staff and what are they getting improvements in
performance appraisal system.
 Table of contents page no

1- INTRODUCTION …………………………………………………………………………06
i. History……………………………………………………………………………………………..06-07
ii. Honda in Pakistan …………………………………………………………………………..08-10
iii. Vision………………………………………………………………………………………………..13
iv. Mission………………………………………………………………………………………………13
v. Environment statement……………………………………………………………………14
vi. Environment policy…………………………………………………………………………..15
vii. Departmentalization…………………………………………………………………………16
viii. Organization hirachercy……………………………………………………………………17-20
ix. Products…………………………………………………………………………………………….21-25
x. Financial and human resource information……………………………………..26-27

2- PERFORMANCE MANAGEMENT SYSTEM………………………….…28

1-Understanding performance …………………………………………………………………29
i. Determination of performance…………………………………………………………29
ii. Environmental factor as performance obstacles……………………………..29
iii. Responsibilities of human resource department
in performance management ………………………………………………………….29

3- PERFORMANCE APPRAISAL
1- what is performance appraisal?……………………………………………………….30
i. Definition & uses………………………………………………………………………30
2- performance appraisal method ……………………………………………………..30
ii. Management by objectives……………………………………………………..31
iii. Multi rater assessment (360 degree feed back)…………………….32
iv. Critical incidental methods………………………………………………………32
v. Work standards ……………………………………………………………………….32
vi. Essay appraisal ……………………………………………………………………….33
 4- techniques for good appraisal systems…………………………………………….33
5- motivation………………………………………………………………………………………….34
i. Maslow’s Hierarchy of Needs………………………………………………….34
ii. Herzberg’s Motivation…………………………………………………………….35
iii. Equity theory for motivation……………………………………………..35
Expectancy Theory…………………………………………………………….35-37

6- developing performance Improvement plan……………………………….37-38

7- conclusion………………………………………………………………………………………39
8- recommendation…………………………………………………………………………..40
9- references ………………………………………………………………………………………41
 Introduction

Honda, one of the world’s leading automobile-manufacturing companies,

began its operations in Tokyo in 1958. As time passed, Honda, together with
Atlas Group of Companies, stepped into Pakistani vehicle-manufacturing
industry, and became one of the favorite suppliers of cars, motorcycles and
power products (generators, water pumps, and many more) in Pakistan.
Given in the following is detailed information of the history of this company
both worldwide and in Pakistan:

a) History:

Company Name
Honda Motor Co., Ltd.

Head Office
2-1-1 Minami Aoyama, Minato-ku
Tokyo 107-8556, Japan
Tel: +81-(0) 3-3423-1111

Established
September 24, 1948

President & CEO

Takeo Fukui
The Ayomah Building
Base Capital
¥86,067 million (as of March 31, 2005)
Sales (Results of fiscal 2005)
Consolidated: ¥8,650,105 million

Unconsolidated: ¥3,489,106 million

Total number of employees

Consolidated: 137,827 (as of March 31, 2005)
Unconsolidated: 27,045 (as of March 31, 2005)

Consolidated subsidiaries
319 subsidiaries (as of March 31, 2005)

Chief Products
Motorcycles, automobiles, power products

CORPORATE PROFILE

Since its establishment in 1948, Honda Motor Co., Ltd., has remained on the
leading edge by providing products of the highest quality that create new
values, at a reasonable price, for worldwide customer

Satisfaction. In addition, the Company has conducted its activities with a

commitment to environmental protection and enhancing safety in a mobile
society.

The Company has grown to become the world's largest motorcycle

manufacturer and one of the leading automakers. With a global network of
437* subsidiaries and equity-method affiliates, Honda develops,
manufactures, and markets a wide variety of products ranging from small
general-purpose engines and scooters to specialty sports cars, to earn the
Company an outstanding reputation from customers worldwide.
Maintaining its commitment to achieving the visions of "Value Creation,"
"Globalization" and "Commitment for the Future," Honda aims to share joy
with its customers worldwide, thus becoming "a company that society wants
to exist."

Honda in Pakistan

Honda Atlas Cars Pakistan Limited is a joint venture between Honda

Motor Company Limited Japan, and the Atlas Group of Companies,
Pakistan.

Honda Motors Company was established on September 24, 1948 under

leadership of the then C.E.O. Tako Fukui. Its head office is in Tokyo. It
started operations in Pakistan as Honda Atlas Company, a joint venture
between Honda Motors Company and Atlas Group of Companies on
November 1992. It supports more than 137,827 employees world over.

The company was incorporated on

November --, 1992 and joint venture
agreement was signed on
August1993.
The ground breaking ceremony was
held on April 17, 1993 and within a
record time of 11 months,
construction
and erection of machinery was
completed.
The first car rolled off the assembly line
on May 26, 1994. Official inauguration
was done by President of Pakistan, Sardar Farooq Ahmad Khan Leghari.
Mr.Kawamoto, President of Honda Motor Company Limited Japan was

also present to grace the occasion. The company is listed on Karachi, Lahore
and Islamabad Stock Exchanges.

On July 14, 1994, car bookings started at six dealerships in Karachi, Lahore,
and Islamabad. Since then the Dealerships Network has

expanded and now the company has sixteen 3S (Sales, Service and Spare
Parts) and thirty 2S (Service and Spare Parts) Pitstops network in all major
cities of Pakistan.

Since the commencement of production in 1994 till March31, 2005, the

company has produced and sold over 77,500 cars.

All dealerships are constructed in accordance with the standards defined by

Honda World over.
Percentage of local parts conforms to the government's policy. Local vendors
are continuously patronized to develop parts locally. The quality of local
parts is thoroughly checked to meet stringent international standards.

We always strive to give outstanding service to our valued customers. In

addition to providing regular service to customers, the company also
regularly conducts Service Campaigns, to facilitate customer's need for
service. This has given our customers absolute confidence in our cars, clearly
evident from the ever-increasing sale volumes.
It is the constant endeavor of Honda Atlas Cars (Pakistan) Limited to achieve
No .1 Customer satisfaction. Honda Atlas Cars (Pakistan) Limited is
committed to meet customer expectations, and to provide good value for
money. Currently we are offering 8 different models of Honda CIVIC and
CITY cars in wide range of colors with unique technological and other
features

Honda Philosophy:
Basic Principles
Respect for the Individual
The Three Joys (the joy of buying, the joy of selling, and the joy of creating)
Company Principle
Maintaining a global viewpoint, we are dedicated to supplying products of the
highest quality yet at a reasonable price for worldwide customer satisfaction.

Management Policies
Proceed always with ambition and youthfulness;
Respect sound theory, develop fresh ideas, and make the most effective use
of time;
Enjoy your work, and encourage open communication;
Strive constantly for a harmonious flow of work;
Be ever mindful of the value of research and endeavor.

Conduct Guideline:

Guided by Honda Philosophy, Honda has expanded its business globally

based on the pursuit of new dreams and the determination to make them
come true. Through these efforts, Honda have shared a “joy” and established
a trust with customers and society around the world. In order to further
advance our global business in each region, every Honda associate in various
countries around the world needs to share a common value at Honda and
become even more self-reliant. The “Honda Conduct Guideline” represents
the important values that have guided our actions to date. With each one of
us sharing these values, we will be

Able to further gain the trust of our customers and society, helping Honda
strengthen our position as “A company that society will want to exist.”
 Major Business Interests
The Honda Atlas Company carries three major business interests in
Pakistan. They are:
1. To prove it’s Excellence in car manufacturing in
Pakistan.
2. To be a market leader in motorcycle-manufacturing
industry in Pakistan.
3. To pioneer it’s status as a power-products
manufacturing industry in Pakistan.
 Vision Statement of organization

“ Focusing on “satisfaction”(customers ’Associates’

and Shareholders’ ) with Challenging spirit and
flexibility, we are Dedicated to supplying latest
generation cars with advanced technology,
greater fuel efficiency and competitive prices,
along with friendly and efficient after sales
backup, maintaining “quality” as core of all
activities.”

Mission Statement Of Organization

“To be a dynamic, profitable and growth oriented

company through market leadership, excellence
in quality and service adding value to the shares
and maximizing exports. To give attractive
return to business associates, share-holders
as per their expectations and market value
and employees according to their abilities
and performance, and to be good corporate
citizen to fulfill its social responsibilities.”
 Honda's Environment Statement

As a responsible member of society whose task lies in the preservation of the

global environment, company will make every effort to contribute to human
health and the preservation of the global environment in each phase of its
corporate activity.
Only in this way will we be able to count on a successful future not only for
our company, but for the entire world.

We should pursue our daily business interest under the following principles:

• We will make efforts to recycle materials and conserve resources and

energy at every stage of our products’ life cycle from research, design,
production and sales, to services and disposal.

• We will make every effort to minimize and find appropriate methods to

dispose of waste and contaminants that are produced through the use
of our products, and in every stage of life cycle of these products.

• As both a member of the company and of society, each employee will

focus on the importance of making efforts to preserve human health
and the global environment, and will do his or her part to ensure that
the company as a whole acts responsibly.

• We will consider the influence that our corporate activities have on the
regional environment and society, and endeavor to improve the social
standing of the company.
 ENVIRONMENTAL POLICY

Honda Atlas Cars (Pakistan) Limited, being responsible

member of society considers the preservation of the global environment as a
crucial concern.

Our environmental philosophy is firmly based on the following

guidelines.

• Recognize the impact of our activities, products and services on

environment

• Formulate objectives and targets for pollution prevention,

environmental impacts mitigation and resource conservation as far as
technically feasible
• Operate in compliance with relevant environmental laws, regulations
and other requirements that apply to our activities.
Create awareness and understanding about environment issues among
our associates.

• Commitment to continual improvement of the environmental

performance and review of the environmental management system to
ensure its suitability, adequacy and effectiveness.
Keep public and others interested parties inform on our environment
performance, if deemed necessary.
Description of Organizational Structure:

The President & C.E.O. of Honda Atlas Company in Pakistan, Mr. Mamoru
Suwama, looks over the company’s affairs as the most senior representative
of the company in this country. The company follows the same organizational
structure as shown above. Due to the nature of the operations performed in
the Honda Atlas Company daily, the departments of this company have been
split up into two categories or sections:
1. The Official Section
2. The Products or Manufacturing Section.

The Official Section:

The official section deals with the routine operations that are organizational
by nature. All these operations are performed under the leader ship of Mr.
Narita, who is a manager by position. The official section consists of
departments such as Marketing, Administration, Logistics, Engineering and
Development of Products (E.D.P.), finance and services. The details and
descriptions of these departments has been provided in the following:

A. Marketing:

This department has to cover all activities of the company that

are related to advertising and publicizing of the company’s products in the
country. Mr. Ayyaz Hafeez, who is a General Manager by position, is the
head of all marketing operations and activities in this country.

B. Administration:

This department has to deal with the management of Honda

Atlas Company as an organization. In other words, major operations of this
department include making policies such as the conduct outline and policies
of the organization. Mr. Riffat Iqbal, Vice President, heads this department of
the official section. Human resource management is also a responsibility of
this department.

C. Logistics:

All the operations that are related to the movement of

supplies as well as the products come under this department. Mostly, this
department manages and ensures the delivery of vehicles at the right place
on the right time. Mr. Abid Ali Khan, the Senior General Manager, overlooks
all operations that come under this department.

D. Engineering and Development of Products:

The responsibility for researching and discovering processes

that can help in producing the vehicles not only effectively and efficiently but
also economically heavily lies on the shoulders of this department. The E.D.P.
department carries out its operations in the guidance of Mr. Hamid Asghar,
Manager and Head of the E.D.P. department.

E. Finance:

This department covers the activities that carry the purpose of

assessing and managing the financial resources and conditions of the
company. Mr. Asad Murad, Senior Manager is the head of this department.

F. Services:

The services department interacts with customers, provides

the existing ones with after-sales services and with dealership utilities. It
also interacts with potential customers to provide them with information and
products they are looking for. This department operates under Mr. Arif Hamid
Dar, the General Manager.
 The products Manufacturing Section:

This section of the Honda Atlas Company deals with the production and
manufacture of vehicles and power products. It includes department like
Production Control, Welding, Painting, Engine assembly, Final Assembly,
Quality Control and Vendor Development. Senior Technical Advisors Mr.
Naguchi and Mr. Nishimura supervise all the operations. Where as Mr.
Keizaburo Otaki is the vice president and deals with the leading and guidance
of all the departments in the production section. The details of all these
departments have been provided in the following:

A. Production Control Department:

The production control department has to under take the

control and manufacturing of daily production and manufacturing of vehicles
and also controls the process of production of the products.

B. Welding:

Welding portion of the production section deals with the

welding and putting together of frames and countless parts that are to be
welded in order to make a car.

C. Paint:
The paint portion, as the name reveals, performs the paint
job of the chassis of the vehicles.

D. Quality Control:

Quality control department tests if the vehicles and the

products that are being assembled in the Honda Atlas Company are up to the
standards and code of conducts of the company.
E. Engine Assembly:

The engine assembly is the portion of the production section,

which is responsible for the fitting together of the engine of the vehicles.
Since this is an exceptionally complex operation, there is a separate
department of the production section.

E. Final Assembly:

The final assembly is the section in which parts that require fitting and not
welding are placed into the chassis of the vehicle.

F. Vendor Development:

The vendor development department has to deal with all the

transactions between a customer and the companies that have to be dealt
with until the vehicle or the product have finally reached the customer.
Products
a) The Honda Accord

A look at the New Honda Accord

The Accord embraces an array of technological advantages. With I-VTEC, the

most intelligent version of the innovative VTEC technology, it impacts a
range of benefits that could only otherwise be achieved by using two engines
at once. And through attention to aspects ranging from suspension to
acoustic measures, it adds a quality feel to truly superior handling.

Honda sought to offer the benefits of VTEC, while augmenting them with
balance of consistent torque, fine-tuned power delivery, greater fuel
efficiency, and further reduced emissions. To do this, Honda combined VTEC
and VTC (Variable Timing Control) - an advance with continuously varies the
phasing of the intake camshaft. Together these elements are known as
I-VTEC (intelligent VTEC)- a technology that that provided multifaceted
performance yet cares for the environments.

Factory price: RS. 2399000.00

The Honda City:

I-dsi
Intelligence
Dual &
Sequential ignition

Dramatically efficient fuel economy. Greater driving range on the same

amount of fuel.
Plus plenty of torque whenever you need it. The
Honda City
Honda's unique new I-DSI engine uses two spark plugs
Per cylinder for maximum fuel efficiency. Leading friction reducing
technology used in I-DSI engine provides ample power for
enhanced Driving Pleasure.

Honda City's novel transmission "Vario" allows smooth steeples power

transfer from the engine to the wheels to match the mood.
Prices for the Honda City are as follows:

Models Available Factory Price

Exi-s Manual Transmission RS. 829000.00
Vario Automatic Transmission RS. 879000.00
The Honda Civic:

The Honda Civic

Civic model features Honda's VTEC technology for greatly reduced emissions
and higher fuel economy. Employing many refinements in the interest of
cleaner combustion, VTEC technology is based on Honda's VTEC variable
valve-timing system, which promotes efficient, lean combustion at mid- and
high rpm. Prices of the Honda civic are listed on the next page:
 Models Available Price (in Pak. RS.)

EXI- Manual Transmission 996000.00

EXI- Promatec Transmission 1036000.00
VTI- Manual Transmission 1141000.00
VTI- Manual Transmission with 1181000.00
Leather Seats
VTI- Prosmatec Transmission 1231000.00
VTI- Prosmatec Transmission with 1271000.00
Leather Seats
VTI Oriel- Manual Transmission 1191000.00
VTI Oriel- Manual 1231000.00
Transmission with Leather Seats
VTI Oriel- Prosmatec Transmission 1281000.00
Vti Oriel- Prosmatec Transmission 1321000.00
with Leather Seats
 Financial and Human Resources Information

As far as the Honda Atlas Company is concerned, it is one of the most

healthily prospering companies of Pakistan. In his review of the company’s
financial conditions as on March 31, 2005, the chairman, Mr. Yousaf H.
Shirazi explained in detail the financial strength of this company.

Mr. Yousaf H. Shirazi, Chairman, Honda Atlas Company

Some Financial Highlights of Honda Atlas Company:

I. The Honda Atlas Company saw an impressive growth during the

financial year that ended on March 31,2005.
II. Basic reasons behind this financial boost to the company are low
interest rates, easy availability of credit and remittances.
III. Production rose to 116,767 units from corresponding previous year’s
88,881 units – which is a 31.4% increase in production.
Sales for the year ended stood at RS. 16.6 billion, which is a 76.6% increase
in sales compared to last year’s RS. 8.6 billion

b) Human Resources and their Review:

Human resource capital of the company is the main driving force to integrate
the other resources,

Materials, machinery and technology to produce the desired results. The

Company stresses on providing healthy working environment to focus on
developed, disciplined an

Trained workforce through in-house, out-source and foreign training, for

desired skills and overall
Capability, which has always been a crucial factor in achievement of desired
results. Since the start of the previous session, following changes have been
made to the management setup, details of which have been provided as
follows:

I. Currently, Mr. Hiromitsu Yatsumonji (General Manager of Sales

Department), Mr. Harulinko Kasai & Mr. Kazuei Kazuma (Technical
Coordinators) after serving three years of service each to the company,
returned to Japan.
II. Mr. Tetsuo Noguchi (General Manager) took their positions, Mr. Masami
Nishimura and Mr. Takayuki Irifune (Technical coordinators),
respectively.
Performance Appraisal System

Performance management system

Performance management system that are directly tied to an organization
reward system provide a powerful incentives for employee to work diligently
and creatively towards achieving organizational objectives . when properly
design and implemented performance management system not only let
employee know how well they are presently performing but also clearfy
what needs to be done to improve performance

Understanding performance

Performance refers to the degree of accomplishment of the tasks that make

up an employee job it reflect how well an employee fulfilling the
requirements of the jobs often confused with efforts which refers to energy
expended performance is measured in terms of result. For example, a
student may exert a great deal of effort in preparing for an examination and
still make a poor grade. In such a case the effort expended was high, yet the
performance was low.

Determinants of performance

Job performance is the net effect on the employee’s efforts as modified by

the abilities and role (tasks) perceptions thus, the performance is the given
situation can be viewed as resulting from the interrelationship among the
efforts abilities and the role perception effort which result from being
motivated, refers to the amount of energy (physical and /or mental) an
individual uses in performing a task. Abilities are the personal characters
used in performing a job. Abilities usually do not fluctuate widely over a short
period of time. Role (tasks) perception refers to the direction in which
individual believe they should channel their effort on their jobs. The activists
and the believers people believe are necessary in the performing of their jobs
and define their role perception.
 Environmental factors as performance obstacles

Others factors are beyond the control of their employees can also stifle
performance although such obstacles are sometimes used merely as
excuses, they are often very real and should be recognized. Some of the
more common potential performance obstacles include the employees lack of
time or conflicting demands upon it, inadequate work facilities and
equipment, restricted policies that affect the job lack of cooperation from
others, type of supervision, temperature, lighting, noise, machine or
equipment pacing, shifts and even luck.

What is performance appraisal system?

“Process of evaluating and communicating of an employee how, he or she is

performing the job and establishing plan for improvement of company”.

Basically there are 10 methods that we apply in our companies to evaluating

that how our employee is working so these are the standards.

Performance appraisal method

i. Management by objectives
ii. Multi rater assessment (360 degree feed back)
iii. Graphic rating scale
iv. Behaviorally anchored rating scale (BARS)
v. Critical incidental appraisal
vi. Essay appraisal
vii. Checklist
viii. Forced choice rating
ix. Ranking methods
x. Work standards

As I visit the Honda atlas company and met mr imran farooq who is the h r
manager of Honda atlas car as I asked him the question that how many
methods are there your company is using so he replied me that there are 2
types of methods for two different categories of employees in our company
one is management staff and other is non management staff.

Employee

Management staff non-management staff

So they apply different methods on their employees like first here if we see
that what are the methods they are applying on management staff.
In management staff they involve all type of employee like engineers and
technical labor, first line manager and other people who are involved in their
department .so these are the method they are using in management staff
for appraisal system in Honda atlas car.

Management by objectives:

First of all I would like to explain what is management by objectives

There are six steps that are involving in management by objectives

1. Establish clearly and precisely define statement of objectives which an
employee to be done
2. Develop an action plan how these objectives are to be achieved
3. Allowing the employee to implement the action plan.
4. Measuring the objectives achievements
5. Taking corrective action when necessary
6. Establishing new objectives for the future
So in the organization the starting of the year they set their plan and goals
and then they define to their employees that what are the plans and how
these plan are to be achieved and what are the parameters they have to
followed to achieve those goals

Multi-razor assessment (360 degree feed back):

The second method they are using in their organization for management
staff for the appraisal system in Honda atlas car is the multi-razor
assessment. In the multi-razor assessment you do assessment of the
managers, peers, customers, suppliers or colleges are asked to complete
questionnaire.

So here you ask question with each person who is related with that person
and asked how he or she has a behavior with their manger, employees,
customers ,suppliers colleagues and their juniors and also check the persons
relation with others that how’s his or her dealing with others .if their dealing
is good so their appraisal system is good others wise his or her appraisal
system is consider to be average.

Critical incidental appraisal:

In the Critical incidental appraisal system here you record all file your entire
employee and record all incident positive and negative and evaluate
performance on this basis.
As I asked mr imran farooq the h r manager of Honda atlas car that you
keep the record of such kind he said that after all man is human being and
year he is working with us 365 in year there are no of incidents happen with
a man so we mostly ignore this incidents or is their a large any wrong or big
mistake happen with that person so we keep that thing in mind and show
this thing in an annual appraisal.
But if any person has done well and any thing extra beyond there imagine so
that thing should be keep in mind and that person will be encourage

Work standards:

This method involve settings the standards or an expected level of out put
and then comparing each employee level to the standards.
So when the manager of the department set the goals and asked employees
to achieve them then manager sets the standards of work that at what level
he or she is success to achieve their goal.
The an other part of their organization is non-management staff.

Non-management staff
The Honda atlas car using this method for appraisal system of non-
management staff.
1.1 Meeting:

As there are 1500 employee in their organization and 15 department so its

too much for the organization that they take appraisal system of all
employees. In each department there are no of sections and each section
almost their are 12 to 15 employees who are working under 1 manager so its
hard for them that they take appraisal of all employee.
The best method they are using is the face to face or 1 – 1 meeting. The
told to their employees that what they have wrong and well and what are the
strength and week ness of their employees and also tell the ways how to
over come these problems.
So in this sense they use the method of essay appraisal system. Where
they tell the strength and weakness of their employees and they also tell
their employees their personality traits, behavior, attitude, dealings with
others and how much they are cost efficient.

Techniques for best appraisal systems

The valuable part of any organization is their employee and it is considered

an important asset .so if any organization is caring their employees so
basically they are caring their organization so these organization use
different techniques to get good work (out put) and good performance at the
annual appraisal.
So Honda atlas car is using the first technique to get the good work from

their employees is motivation. And this motivation has many ways.

To give them high wages according to the market, competitors and
economy. If you want that your employee gave you some thing extra so
motivated them according to their demand like gave them high salary
packages that is up to the mark of the market and also gave them some
extra facilities.
The another method they apply for motivation of those people who giving
them something extra for the organization so we encourage those people
and motivate them to get some thing extra from them through give them
some extra bonus and promotion them because if that person has a potential
so he should have to go ahead
But what are the technique they are using for the non management staff like
individual level

Motivation:

Motivation is the willingness to exert high levels of effort to reach

organizational goals, conditioned by the effort’s ability to satisfy individual
need. Motivation playing a pivotal role in performance appraisal system.
Motivation is a factor most of the organization use it to get the good out put
for their employees. Basically what is motivation .so?

“The desire within a person causing that person to act to reach a goal”.

There are many theories which are used for the motivation that how their
employees being motivated. So the first theory for the motivation is the
maslow’s hierarchy needs.

Maslow’s Hierarchy of Needs

Categories of needs that ascend in order; lower needs must be fulfilled
before person will strive to meet higher needs.
•Physiological needs

•Safety and security needs

•Belonging and love needs
•Esteem needs
•Self-actualization needs
Basically each person wants that their basic needs should be fulfill so it play
a important role for motivation that some origination fulfill their basic needs
to get the most output .so it play a vital role for the both employees and the
organization.

Herzberg’s Motivation:
Motivators—account for job satisfaction and motivation

• Recognition
• Work itself
• Responsibility
• Advancement

So these are the factors who play a important role for the motivation like
each person should have a recognition that where he is working like if we see
that in Japan if some body is working in Honda atlas and any body ask his
recognition then he said that I am Honda man. Each person feels proud that
he is a Honda man, so that’s why each person gets a responsibility and it for
its self so that he gets more advancement

Equity theory for motivation

The another factor is also playing a good role for the motivation. But in most
of the organization most of our employees are de-motivated through this.
Like here if we see an example that in a organization this thing cause a de-
motivation that 2 persons whose background from the same institution and
same degree and same kind of experience but one is getting 35ooo and
other is getting 50000 so this thing cause the de -motivation for that
employee so that equity play a important role for motivation.
–The perceived fairness of what the person does compare to what the person
receives.
–The perception of the fair value of rewards (outcomes) for efforts (inputs)
that individuals make when comparing their results to others in the
organization.

Expectancy Theory

So some of the organization uses this theory for the motivation of their
employees ,here employee also in a expect that if he do some thing extra he
should be rewarded by some thing that thing can be in the form of money
,bonuses and tickets for visiting any other country

Expectancy:
“Individuals base decisions about their behaviors on their expectations that
one or another behaviors is more likely to lead to needed or desired
outcomes”.
–Effort-to-Performance Expectations
•Belief in the ability to perform the task well
–Performance-to-Reward Linkage
•Belief that high performance will result in receiving rewards
–Value of Rewards
•The rewards have value to the individual
Individual Performance Factors
–Individual ability to do the work
–Effort level expended
–Organizational support
Performance (P) = Ability (A) x Effort (E) x Support (S)

So if these all the factors which are entered from the individual the
individuals the more explanation are here

Components of Individual Performance

 New method for appraisal system

A good company always in a effort that to get some thing extra so they
always move ahead for getting this thing .the H R Department of Honda atlas
car made a new method to for achieving their goals from their employees so
they made a new system for those people who are always in trouble and
create barriers for achieving those goals

PDC & Action:

This is plan do check and action system. In Honda atlas car this system run
through out the year for achieving those goals so this system have some
steps
First of all the head of department plans to set his goals and also tells the
ways to their employees that what are their plan and how to achieve them.
 nd
Then in the 2 step they move a head to achieve those goals so they
execute those goals and starting work on it for achieving those goals.
rd
In 3 step the head of the department always have the check system that
the goals which are given to their employees is their any trouble for
achieving those goals if there is any trouble so they move to the next step.
th
In the 4 steps they have action for those trouble. So then they tells their
employees in this situation how to do work and achieve those goals
 Conclusion

 It is a good system for the organization, which the company is

using in their organization
 Performance appraisal system is help the Honda atlas in
competition their competitor
 The most important thing the company gets is that their
employees are satisfied with them
 And the another important factor for the Honda appraisal system is
that they are using different methods for the upper management
(MBO, Multi rater assessment) and the different methods for the
lower management like (1 to 1 meeting, essay appraisal)
 Recommendation

 They management of the Honda atlas should use the other

important methods of appraisal system that is helpful for the
organization (ranking method, graphic rating scale etc)
 Their standards should be according to their job duties,
responsibilities that it is helpful for the employees to achieving
their goals
 They should use the others system for the motivation especially
for the lower management (rewarding system, and foreign trips)
 They should also concentrate on monetary and non-monetary
rewards
 References
 www.hondaatlas.com
 http://automobiles.honda.com
 http://world.honda.com
 http://www.honda.com.pk
 www.google.com
 Mr.imran farooq (H R Manager of Honda atlas car)
Card attached