Enterprise Resource Planning Systems Essay

The enterprise resource planning system attempts to integrate or integrates all the data and also processes of an organization into a system that is unified. A typical system of the enterprise resource planning uses the multiple components of the computer hardware and software so as to achieve the integration. The key ingredient of most of the systems in enterprise resource planning is the usage of a unified database in storing the data for various system modules. Comparison between customer relationship management and supply chain management Similarities Both customer relationship management and the supply chain management are examples of modules in the enterprise resource planning system which formally would have been stand alone applications. (Monk and Wagner2006) Differences The data that is contained in the supply chain management software includes; inventory, commission circulation, order entry, claim processing, purchasing, inspection of goods, product configurator, supplies scheduling and the supply chain planning. On the other hand the data that is contained in the customer relationship management software includes; sales and marketing, call center support, customer contact service as well as commissions. On the other hand the supply chain management is a process of planning, implementing and controlling all the operations of the supply chain with a lot of efficiency. While the customer relationship management covers the concepts which are used by various companies in managing their relationships with the customers and they also include capturing, storing, analyzing the customers, vending, partnering and also information on the internal processes. The operational functions of the customer relationship management involve providing support to the front office business processes which include service and sales and marketing. The operational functions of the supply chain management includes activities such as; the daily production and distribution planning, sourcing planning, inbound operations, production operations and also order promising. (Monk and Wagner2006) The supply chain addresses problems on the distribution network configuration, the distribution strategies, information, inventory management as well as the cash flow. On the other hand the customer relationship management addresses the issues marketing sales and service. The customer relationship management has the capability of executing all the three sub modules through the multiple communication channels and the data that is gathered by the CRM considers the privacy of the customer as well as the security of the data. On the other hand the supply chain management components are the third elements of the four square circulation frameworks. Differences between financial accounting and managerial accounting Type of information and confidentiality Financial accounting mainly concentrates on the production of the financial reports which includes profitability, the basic reporting requirements, stability, solvency and liquidity. The reports of this nature can easily be accessible by the external and the internal users. On the other hand management accounting is a branch of accounting which deals with primarily very confidential financial reports for the restricted use of the organizations top management. (Monk and Wagner2006)    Whereas the financial accountants follow the GAAP (generally accepted accounting principles) that have been set by professional bodies in each country, the managerial accountants make use of the processes and also procedures that are not regulated by the standard setting bodies. On the other hand the multinational companies prefer employing the managerial accountants who have passed the certification in CMA. The certified management accountant (CMA) is an examination that is given by the institute of management accountant which is a professional organization for the accounting professionals. (Monk and Wagner2006)However the certification is very different and also unique from the chartered accountant certificate or CPA. Time period The managerial accounting provides the top management with reports which are future based while on the other hand the financial accounting provides reports that are based on the historical information. However even though the management accountants base their reports on the historical values they also employ the statistical methods so as to arrive at the future values. In both the financial and managerial accounting the enterprise resource planning systems benefits the workers in various ways. (Monk and Wagner2006) Information on the payroll of the sales people This information will be very useful in the management o the sales team in the Snackers sales department. This is because the manager will be able to know the consistency of each sales persons pay in relation to their performance. On the other hand such information will help the manager to pay the sales people according to the defined contract which could be inform of incentives, commission or a basic salary. (Monk and Wagner2006) Information on training of the sales people This information will be helpful in the management of the sales people since it will help in identifying the extent to which the sales people have been trained and also how far hey have been able to go with their training. This information is also useful since it helps in showing what the sales people have not been trained in and the consistency in their training. Such information will also be useful in the identification of the refresher courses on the sales people since such training is very important to the company sales and marketing strategies. (Monk and Wagner, 2006) Information on time and attendance of the sales people This information will help the management identify the employee’s trends in reporting and attending to their official duties. It will also help in identifying the employees who are consistent in their attendance and those who are not. Such information would be very useful especially when promoting the employees , increasing their   responsibilities, giving them incentives, taking any disciplinary actions and also in retrenchments and transfers. Information on the benefits of the sales people This information would be helpful to the management since it will give the basis of the benefits of the employees. Such information would help the company’s management to award the sales people with their correct benefits and incentives which they are entitled to during or after their term of service.

Performance Appraisal of Mahindra Finance

CONTENTS CHAPTER NO PAGE NO CHAPTER – 1 2-9 †¢Introduction †¢Need for the study †¢Objectives of study †¢Scope of study CHAPTER – 2 10-31 †¢Company Profile †¢Industry Profile CHAPTER – 3 32-66 †¢Research Methodology †¢Primary Data †¢Secondary Data †¢Review Literature Data Analysis & Interpretation CHPATER – 4 67-68 †¢Limitations Of study CHPATER – 5 69-73 †¢Findings and Suggestions †¢Conclusion CHAPTER – 6 74-77 †¢Questionner CHAPTER–7 78-79 †¢Bibliography CHAPTER- I INTRODUCTION NEED FOR THE STUDY OBJECTIVES OF STUDY SCOPR OF STUDY INTRODUCTIONPerformance Appraisal is the process of assessment systematically the performance and progress of an employee on the present job and his potential for higher level jobs in future. It consists of all formal procedures used in working organizations to evaluate personalities, contributions and potentials of employees. It is the process of analyzing, obtaining and recording information about the relative worth of an employee. According to Flippo performance appraisal is the systematic, periodic and impartial rating of an employees excellence in matters pertaining to his present job and his potential for a better job.Beach has defined performance appraisal as the systematic evaluation of individual with regard to his/her performance on the job and his potential for development, Heyel observes â€Å"It is a process of evaluating the performance and qualifications of the employees of the employer in terms of the requirements of the job for which he is employed. For the purpose of administration including placements, selections for promotions, providing financial rewards and other actions which require differential treatment among the members of a group are distinguished from action affecting all members equally.The performance appraisal is the evaluation of present performance and future capabilities of an employee or group of employees. It is regarded as a process of estimating or judging the value, excellence, qualities or status of some object, or person. Performance appraisal is the part of all the other staffing process, namely recruitment, selection and placement. Performance appraisal is essential to understand and improve employees performance through HRD. In fact performance appraisal is the basis for HRD. It is a good mechanism to control people.Employees want to promotions, salary increments, and good work conditions and they would like to be placed in prestigious positions and would like to be transferred to places of their choice and like jobs giving them maximum satisfaction and so on. Therefore, employees get what they want, they should give what their superiors want. And performance appraisal is one mechanism to make sure that people at every level do things the way their superiors want them to do. Thus the superiors at every level strive for better writing of th eir own performance by assessing the performance of their subordinates and thus controlling their behavior.The success of an organization will therefore depend on its ability to measure accurately the performance of its members and use it objectively to optimize them as a virtual resource. At the every outset, it may be pointed out that the performance appraisal is a continuous function and not merely an issue of formal reports at particular point of time. Organization needs to measure employee performance to determine whether acceptable standards of performance are being maintained.The six primary criteria on which the value of performance may be assessed are quality, timeliness, cost effectiveness, need for supervision and interpersonal impact. If appraisals indicate that employees are not performing at acceptable levels step can be taken to simplify jobs, trains and motivate workers, or dismiss them depending upon the reasons for poor performance. EVALUTION OF PERFORMANCE APPRAIS AL. Employees appraisal techniques are said to have been used for the first time. During the first world war, when, at the instant of Walter Dill Scott, the US Army adopted the ‘Man-to- Man' rating system for evaluating military personnel.During the 1920-30 period, rational wage structures for hourly paid workers were adopted in industrial units. Under this system, the policy of giving grade wages increment on the basis of merit was accepted. These early employee plans were called merit rating programs, which continued to be so called up to the mid-fifties. By then, most of these plans were of the rating scale type, where emphasis was given to factors, degree and points in the early professional & managerial personnel, Since then, as a result of experiments and a great professional and managerial personnel.Since then, as a result of experiments and a great deal of study, the philosophy of performance appraisal has undergone tremendous changes. Consequently, a change has also t aken place in the terminology used. Now, the older phrase merit rating is largely restricted to the rating of hourly paid employees, and it is used frequently in developing criteria for salary adjustment, promotions, transfer etc. the later phrase, personnel appraisal, places emphasis on the development of the individual as and widely used to evaluate technical, professional and managerial personnel.Prof. Beach has provided a useful chart, showing the changes in the terminology of employee appraisal which have taken place since 1920. Although the interest in the use of performance appraisal has increased over the last thirty years, the practice of formally evaluating employees has existed for centuries. The performance appraisal system has undergone a lot of changes over the years as shown below: 1900; Subjective appraisals. 1940:Increased psychometric sophistication. 1950:Management by objectives (MBO). 1960:BARS. 1970-90:Hybrid system & approach.The appraisal of individuals in an employment has been labeled and described by experts over the years in different ways. Common descriptions include performance appraisal, merit rating, behavioral assessment, employee evaluation, personnel review, progress report, staff assessment, service rating and fitness report. Some personnel authorities use such concept interchangeably, while interpret some of these appraisal phrases differently. However the term performance appraisal or evaluation is most widely used. NEED / IMPORTANCE OF STUDY Performance Appraisal is a formal exercise in which an organization makes an evaluation in a documented form of its employees, in terms of contributions made towards achieving organizational objectives and or their personal strengths and weakness, and in terms of attributes and behaviors demonstrated for meeting whatever objectives the organization may consider relevant. ?Appraisals are judgments, trades and performances of employees. Performance Appraisal is an effective instrument fo r helping, people grow and develop in organizational settings.It could as an effective mechanism of continuing education learning from one another. ?Provide information about the performance ranks. Decisions regarding salary fixation, confirmation, promotion, transfer and demotion are taken based on performance. ?Provide feedback information about the level of achievement & behavior of the subordinate. This information helps to review the performance of the subordinate, rectifying performance deficiencies and to set new standards of work ? Provide information which helps to counsel the subordinate. ?To prevent grievances and in disciplinary activities in organization. Provide information to diagnose deficiency in the employee regarding skill, knowledge, determine training and development needs and to prescribe the means for employee growth provides information for placement. OBJECTIVES OF STUDY: Performance appraisal aims at attaining different purposes, they are: ?To enable each em ployee to understand his role and become effective on the job. ?To intensify the development needs of each employee. ?To create and maintain a satisfactory level of performance. ?To contribute to the employee growth and development through training, self and management development programmes. To help the superiors to have a proper understanding about their subordinates. ?To guide the job changes with the help to continuous ranking. ?To facilitate fair and equitable compensation based on performance. ? To facilitate for testing and validating selection tests, interviews techniques through comparing their scores with performance appraisal ranks. ?To ensure the organizational effectiveness through correcting the employee for standard and improved performance and suggesting the change in employee change in behavior. ? To serve as mechanisms for importing communication between the superiors and subordinates. To help management in fixing employees according to their capacity, interest and aptitude and qualifications. ? To provide a valid data base for personal decisions concerning placements, pay, promotions, transfer and punishment. Main Objectives of Performance Appraisal From the organizational point of view, performance appraisal serves two sets of goals, 1. Evaluation goals. 2. Coaching and development goals. Evaluation goals ?Give feedback to subordinates so that they know where they stand. ?To develop valid data for pay an promotion decisions and to provide a means of communicating these decisions. To help the organization in making discharge and retention decisions and to provide a means of warning subordinates about satisfactory performance. SCOPE OF THE STUDY: The scope of the study encompasses managerial and non-managerial cadre employees of Mahindra & Mahindra finance ltd. To asses the performance appraisal system, to know the employees perception towards PAS. CHAPTER – 2 COMPANY PROFILE INDUSTRY PROFILE COMPANY PROFILE Mahindra Group Incorporated as Mahindra & Mahindra in 1945. the company was re-christened Mahindra &Mahindra in 1948. J. C Mahindra K.C. Mahindra Core purpose â€Å"Indians are second to none in the world. The Founders of our Nation and of our organization passionately believed this. We will prove this right by believing in ourselves and by making Mahindra & Mahindra Ltd. Known worldwide for the quality, durability and reliability of its products and services. † Anand Mahindra Keshub Mahindra Auspices of JIPM Japan. † Mahindra & Mahindra Tractors was awarded the Deming prize for excellence in quality Mahindra & Mahindra becomes the first Indian tractor company to achieve sales of 1 million tractors. Mahindra Champion† becomes India's highest selling large 3 wheeler within four years of launch. 2004 Mahindra & Mahindra and Renault set up a joint venture Mahindra & Mahindra announced the launch of Mahindra Australia Mahindra & Mahindra Joint Venture with China's Jingling Tractor Company. Mahi ndra Auto motive Steel Pvt Ltd (MASPL) a newly formed subsidiary of Mahindra & Mahindra Ltd. Acquired Chakan unit of Amforge Industries Ltd. 2005 Leaders in diverse business sector SectorLeaders in AutomotiveUtility Vehicle Farm EquipmentTractors Telecommunication & software Time Share Resorts & Technology ParksRural Finance Mahindra & Mahindra Financial Services Limited History: Mahindra Finance was incorporated on January 01,1991 with Mahindra & Mahindra Ltd. Leading Manufacturer of utility vehicles and tractors in the country and Kotak Mahindra Finance Ltd. Vision Statement: To be the number one Rural Finance Company and continue to retain leadership position for Mahindra products. Mahindra Finance will provide products and services tailored to the needs of M&M, its most favoured customer. In case of demand supply mismatch of funds, Mahindra finance Will Put all their resources to find a solution.Mahindra Finance may finance other products after catering to the need of M&M. Howev er, this would always constitute a small proportion of mahindra Finance's total business. Mahindra Finance will help M develop better products by providing first hand information received from the target market. Mahindra Finance Strengths The vision of Mahindra Finance is validated by its strength, which are ?Parentage of M Ltd. RBI classification as HP Company ?Excellent reputation for prompt repayment. ?Wide rural net work. ?Dealer shareholding and relationship of dealers with M ?ensure dealer commitment Well connected to M& M / Dealer network. Wide knowledge of rural financing Mahindra Finance Values: ?Good corporate Citizen ship ?Professionalism ?Customer First ?Quality Focus ?Dignity of the Individual. Milestone 1991Mahindra Finance Incorporated on 1st January Commenced Regular Operations Employees : 5 Disbursement: 6 Crores Disbursement: 37 Crores Employee: 15 Branches: 4 1994Disbursement: 757 Crores 1994-95Employee: 52579 Branches: 343 1999-00Significant Milestone in terms of total assets 2000-01Steep rise in business volume with total contracts of 76663. Celebrated their 10* Anniversary.Retail Financing Covered 80% of Indian Districts. Financing Non- M Vehicles. 2001-02MMFSL Network covered 180 branches (98% of total districts throughout the nation) 2004Mahindra Insurance Brokers Ltd is incorporated 2005Branches:256 Employee : 1812 Contracts : 336891 Department of Mahindra Finance: To ensure smooth & effective functioning of the organization, Mahindra Finance has been divided into various departments ? Operations ?Finance ?Marketing ?Legal ?IT ?HR ?Administrator Each department has its own norms. Let's see the Do's and Don't of each Department. ?General Do's Mark attendance on a daily basis oTake prior approval form your immediate supervisor for Leave, travel or any expenses oInform your Supervisor immediately in case you come across any case of misconduct relating to cash or assets o Trust and respect colleagues, customers, vendors and associates. Don 'ts oSalary information should not be shared or compared oDon't indulge in misappropriation of cash or assets, this will invite disciplinary action. o Do not use abusive language in public. ?Operation Do's oOnly Mahindra Finance employees should deal with customers/dealers for their payments and collections. Collect & Habituate Customers to pay â€Å"On or Before Due Date†. oDocuments must have Duly Stamped and signed agreement along with PDC's and security cheques. Don'ts oNo payment and / or collection should be carried out by any of the dealers/brokers/DSAs/ DmAs etc. ?Finance Do's oCustomer Centric (Internal as well as External): Adhere and observe compliance to Company policies. o Data Accuracy and updation. o Always meet / Best the deadlines. Don'ts oDo not Accept / relay on anything without proper documentation and authorization there by ensuring audit trail. Do not make any activity people oriented but try to make it process oriented with help of systems. oAvoid dupli cation of work. ?Marketing Do's oAlways keep your eyes open for any competitive marketing activities like new media campaigns. oKeep yourself updated with the latest happening s in the industry /function through continuous learning (like books etc). oMaintain strict confidentiality of the company's marketing plan. oAlways provide a structured and written brief to the advertising agency for all kinds of communication. Don'ts Never tamper with the corporate identity of the organization (like logos, symbols, font colors etc). o Don't execute any activity (eg: promotional campaign, product launch, etc. ) without the involvement and inputs from the local representatives of the field operation team. ?Legal Do's oBe proactive rather than reactive. oKeep the documentation immaculate. It's better to prepare than to repair. Don'ts oDon't ignore any correspondence, whether from the customer, guarantor, their lawyers, insurance company, statutory authorities or any court or forum. oRepossessed vehicles are not to be used by any officials IT Do's ?Utilize IT to the maximum of its potential and thereby reduce unnecessary paperwork. ?Save power and reduce wastage of consumables. Don'ts ?Don't use pirated software of nay nature while working with MMFSL. Mahindra Finance maintains a strict policy against Piracy. ?As a member of the IT department, you may have access to sensitive company information contained in he system database. The company trusts yo with this information. Don't violate company trust by prying through this information or disclosing the same. ?HR Do's oMaintain confidentiality of all information All employees of the organization are our internal customers. Treat them with respect & Provide necessary resources to help them perform better, o Reserve criticism for private discussions whereas rewards and recognition to be addressed in public Don'ts oDon't make biased decision – all employees should receive equal respect and opportunity o Do not make commit ments on behalf of management without prior permission. Organization structure A sound organization structure ensures a smooth progress path & achieving of milestones. Mahindra Insurance Broker Ltd (MIBL) ?MIBL is a wholly owned subsidiary of Mahindra Finance MIBL manages the Motor insurance for Mahindra Finance's retail customers ? MIBL is a direct insurance broker for Life and Non-life products, and operates in the Retail and Corporate lines of business Vision: To be come India's most admired insurance Intermediation Company Goal: To be among the top 5 direct insurance brokers of India by 2010 Work Culture & Classification Mahindra Finance's work culture is a framework of shared attitudes and beliefs. Some of the important aspects of this work culture are ?Open and transparent communication and feedback ?Internal and external customer focus Creating and upholding a learning environment ?Proactive orientation ?Creating result through synergy. INVESTMENT ADVISORY We at Mahindra Fina nce are all-encompassing of clients needs. So while we believe in making assets easily available, we also believe in catering to those who want to create wealth from these assets. Our Investment Advisory Services act as an avenue to help create and multiply wealth. Mutual Fund Distribution Recently we have received the necessary permission from Reserve Bank of India (RBI) to start the distribution of Mutual Fund products through our network.Hitherto we were only participating in the liability requirements of our customers but with a mutual fund distribution business, we can also participate in their asset allocation. When it comes to investing, everyone has unique needs based on their own objectives and risk profile. While many investment avenues such as fixed deposits, bonds etc, it is usually seen that equities typically outperform these investments, over a longer period of time. Hence we are of the opinion that, systematic investment in equity allows one to create substantial wea lth.However, investing in equity is not as simple as investing in bonds or bank deposits, because only proper allocation of portfolio gives maximum returns with moderate risk, and this requires expertise and time Our investment advisory services you invest your money in equity through different Mutual Fund Schemes. We ensure the best for our clients by identifying products best suited to individual needs continent except Antarctica. M&M one tractor manufacturing plant in China, three assembly plants in the United States and one at Brisbane, Australia.It has made strategic acquisitions across the globe including Stokes Forgings (UK), Jeco Holdig AG (Germany) and Schoneweiss & Co GmbH (Germany). Its global subsidiaries include Mahindra Europe Srl. based in Italy, Mahindra USA Inc. and Mahindra South Africa. M&M has entered into partnerships with international companies like Renault SA, France, and International Truck and Engine Corporation, USA. Forbes has ranked the Mahindra Group in its Top 200 list of the World's Most Reputable Companies and in the Top 10 list of Most Reputable Indian companies.Mahindra has recently been honored with the Bombay Chamber Good Corporate Citizen Award 2006-07. INVESTOR ZONE: At Mahindra Finance, we pride ourselves on having pioneered rural finance in India. We have grown with each passing year, met targets, exceeded expectations and in the process created wealth for our shareholders. Here we have a dedicated section of up-to-date information, from our financials to our events and presentations – easy access to information at the click of button. Much like most of our quick and simple processes at Mahindra Finance.PRODUCT PORTFOLIO: At Mahindra Finance we have a wide range of products and services, with something to suit everyone's needs. Right from finance for two wheelers, tractors. Farm equipment, cars and utility vehicles to commercial vehicles and construction equipment, we also have a group of experts providing invest ment advice, surveying available market products and choosing the most suitable to our customers' needs. GROUP STRUCTURE: We are a company with a strong foundation and a shining legacy, growing every day to create a legacy of our own.Our leading promoter Mahindra & Mahindra holds the majority of our Equity Shares and is also a leading tractor and UV manufacturer with over 60 years' experience in the Indian market. As a supplement to our business, in May 2004, we started an insurance broking business through our wholly owned subsidiary, Mahindra Insurance Brokers Limited. ABOUT MAHINDRA GROUP: The US $6 billion Mahindra Group is among the top 10 industrial houses in India. Mahindra & Mahindra is the only Indian company among the top tractor brads in the world.Mahindra's Farm Equipment Sector has recently won the Japan Quality Medal, the only tractor company worldwide to be bestowed this honor. It also holds the distinction of being the only tractor company worldwide to win the Deming Prize. Mahindra is the market leader in multi-utility in India. It made a milestone entry into the passenger car segment with the Logan. The Group has leading presence in key sectors of the Indian economy, including the financial services, trade and logistics, automotive components. Information technology, and infrastructure development.With over 62 years of manufacturing experience, the Mahindra Group has built a strong base in technology, engineering, marketing and distribution which are key to its evolution as a customer centric organization. The Group employs over 50,000 people and has several state-of- the-art facilities in India and overseas. The Mahindra Group has ambitious global aspirations and has presence on five continents. Mahindra products are today available on every. Company profile of Mahindra & Mahindra Limited, we are one of India's leading non-banking finance companies.Focused on the rural and semi urban sector, we provide finance for utility vehicles, tractors and cars and have the largest network of branches covering these areas. Our goal is to be the preferred provider of retail financing services in the rural and semi – urban areas of India, while our strategy is to provide a range of financial products and services to our customers through our nationwide distribution network. PERFORMANCE APPRAISAL SYSTEM IN MAHINDRA & MAHINDRA FINANCE SERVICE LTD. In MAHINDRA & MAHINDRA FINANCE SERVICE LTD. the performance appraisal report is annual and is co-terminus with financial year, i. e. , 1st April, to the end of March next year. There is no need to write in duplicate. No Annual Appraisal Reports are required to be written by officers under suspension and on duty for less than two months during the reporting year. Where officers are transferred before the full period should write the appraisal reports for that part period straight away after obtaining the self assessment reports from the officers concerned and send the same to competent authority through proper channel.Reporting Officers who get relieved without writing AAR's are liable for disciplinary action. In case of death or non-availability of reporting officer for any acceptable reason, the AAR's can be written by the next higher authority straight away. Counter signing of the AAR's is normally done by the officer under whom the Reported officer works. In case of sudden illness, death retirement or for any acceptable reason, the counter signing officer or the Head of the Department is not available, AAR's can be signed by the incumbent at the time of receipt of AAR's by him.A self assessment Report in the proffering designed is obtained from the reported officer on the duties performed by him during the period under report within 15 days after the expiry of the reporting year for writing the AAR. If the Self Appraisal Report is not received, for any reason, the reporting officer may write the AAR duly recording the fact of non receipt of SAR. The acceptanc e or otherwise of the SAR should be endorsed in the column provided. The reasons for non acceptance should be recordedAdverse remarks, if any with, proper substantiation should be communicated to the Reported officer by the final counter signing authority. The Adverse remarks should be supported by specific instances. The format of AAR's for P&G services contains grading A,B,C, D & E indicating Outstanding, Very Good, Good, Satisfactory and Poor performance. Grading A,B & E are to be supported by justification along with recorded proof. Without such justification, the overall writing can be reduced to ‘C' grade by the counter signing officer duly recording that the grading is allotted as no justification is forth coming from the reporting officer.If the countersigning officer wants to award different grades, full justification with specific instances should be furnished by them. The grading awarded by foreign employers in the AARs of MAHINDRA & MAHINDRA FINANCE SERVICE LTD. em ployees on deputation is to stand but the grading so awarded is not binding on the Departmental Promotion Committees. The sum total of marks against rating awarded in respect of each item will determine the over all rating as follows: ‘A’ Grade 81% and above B’ Grade 71%to80% ‘C’ Grade 61% to 70% ‘D’ Grade 50% to 60% ‘E’ Grade below 49% Another column â€Å"General Remarks† is also provided for writing the General Remarks on the Reported Officer by the Reporting Officer in a nut shell. To evolve a performance appraisal system to serve as the basis for transfer policy and incentive/dis-incentive schemes, the MAHINDRA & MAHINDRA FINANCE SERVICE LTD. approved performance appraisal system based on objective, tangible parameters.The appraisal system consists of performance indicators evolved for the staff in P & G Service on the basis of the job charts prescribed for the staff, nature of duties performed by the staff of di fferent levels, nature of decision involved vis-a-vis, the cadre of employee and the sequential tasks involved in each HRD function like recruitment, promotions terminal benefits etc. The tasks to be performed by an employee in a given cadre form the performance indicators for the employee. A time frame is set for performance of a given task keeping in view the mandatory nature of compliance under the service regulations, leave regulations etc. optimum time required for performance of the task and the periodicity of performance. The points earned on an average overall the relevant Performance Indicators in a month by an employee will be the GPA (Grade Point Average per month) and the performance of an employee is rated on the basis of CGPA (Cumulative Grade Point Average) obtained as an average of GPA earned over 12 months period. The scale adopted and weightage given in grading the performance of an employee in a given parameters is Scale GradeWeightage > 95% A4 points – Out standing 85% to 95%B3 points – Good 0% to 85% C2 points – Satisfactory < 75% Grade Point Average (GPA) = Total Grade Points (per month) No. of performance Indicators Cumulative GPA (CGPA) – Total of GPA 12 CGPA=A=4-Outstanding B = 3 to 4 -Good C = 2 to 3 -Satisfactory D = 1 to 2-Poor The Impact of AARs on Promotions in MAHINDRA & MAHINDRA FINANCE SERVICE LTD. In terms of regulation 9(B) (1) of APSEB SRs – part-Ill, the following criteria is adopted for fixing the merit in respect of Class-Ill and above Officers for promotions to higher categories. ) The total marks obtained in last five years AARs/CRs are added and divided by five to obtain the average marks. b) Where an employee has not put up five years of service in the category from which promotion is to be made and for purpose of considering his/her case for out of turn promotion if the average marks of the AARs/CRs earned by him/her in that category is 90% and above, the last AARs/CRs in the lower c ategory to make up the total pfperiod of five years shall also be taken in lo consideration. If the average marks of the five AARs/CRs earned is 90% and above, the only he/she shall be considered for out of turn promotion. ) Based on average marks so obtained, the grading is made as follows: Out of turn —- 90% & above In turn —- less than 90% Unfit —- not to be considered † provided that the â€Å"out of turn† grading shall be awarded only if two different reporting officers have written the last five years AARs and also that each of these reporting officers have awarded one out standing A – grade report†. d) Provided, further, that the candidate selected for promotion under the grading of ‘out of turn' shall not be assigned more than five ranks.These five ranks shall be assigned as indicated below. Marks 90 and above up to and inclusive of 92 -1 Rank Marks above 92 up to and inclusive of 94 -2 Ranks Marks above 94 and up to and i nclusive of 96 -3 Ranks Marks above 96 and up to and inclusive of 98 -4 Ranks Marks above 98-5 Ranks e) The grades obtained based on the above criteria shall form the basis for fixing the ranking among the candidates considered suitable for promotion. The inter-se-ranking in each group shall be their inter-se-position/seniority in the existing cadre. CHAPTER – 3 RESEARCH METHODOLOGY a) PRIMARY DATA ) SECONDARY DATA REVIEW LITERATURE DATA ANALYSIS AND INTERPRETATION RESEARCH METHODOLOGY Research is an academic activity and as such the term should be used in a technical sense. Meaning of Research D. Slesinger and M. Stephenson in the Encyclopedia of Social Sciences define research as â€Å"the manipulation of things, concepts or symbols for the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in construction of theory or in the practice of an art†. Objectives of Research 1. 2. To gain familiarity with a phenomenon or to achieve new insights into it. 3.To portray accurately the characteristics of a particular individual, situation or a group. 4. To determine the frequency with which something occurs or with which it is associated with something else. Types of Research The basic types of research are as follows: 1. Descriptive & Analytical 2. Applied & Fundamental 3. Quantitative & Qualitative Research Process The following order concerning various steps provides a useful procedural guidelines regarding the research process: 1. Formulating the research problem; 2. Extensive literature survey; 3. Developing the hypothesis; 4. Preparing the Research design; 5.Determining sample design; 6. Collecting the Data; 7. Execution of the Project; 8. Analysis of data; 9. Hypothesis testing; 10. Generalizations’ and Interpretation, and 11. Preparation of the report or presentation of the result, i. e. formal write-up of conclusions reached. Sample Design Samples can be either probability samples or non-probability samples. Probability samples are those based on simple random sampling, systematic sampling, etc. Non-probability samples are those based on convenience sampling, judgement sampling and quota sampling techniques. Sample designs are as follows: 1. Deliberate Sample . Simple random Sample 3. Systematic Sample Collection of the Data The methodology being following for the study is data collections through (primary and secondary sources), interviews, views of employees and other personnel and questionnaire etc. A)Primary Data: The main source of primary data comprises of: 1. Structured Questionnaire 2. Formal and Informal interviews 3. Feedback obtained form the employees B)Secondary Data: The sources of secondary data comprises of: 1. Manual of the Organization 2. Books published by different agencies – 3. Other relevant books, magazines, periodicals and Journals etc. REVIEW OF LITERATURE Main Components of a Performance Appraisal System. The specific objectives of an Appraisal determine the components to be used in a performance appraisal system. Basically the following components are in use in Indian Organizations. 1. Key Performance Areas (KPAs):- For role clarity and key result areas (KRA's) for accountability. While KPAs stress what main functions the appraisal as an individual is expected to perform in the performance period, KRAs emphasis the accountability or the results the appraisal is expected to achieve in the performance period.However KPAs are to be preferred over KRAs as KOAs stress on what the appraiser should do and the effort he has to put in moreover, an identification of KPA's given and understanding of the nature, quality and level of performance expected of the time in which the tasks are expected to be completed. 2. Attributes/Qualities/Trait: – Attributes as a part of performance Appraisal help in reinforcing the behavior of qualities or competencies that are required or are to be developed by the executives.Most organizatio ns, however, realizing the extent of subjectively involved in trait based appraisals and recognizing the need to promote performance orientation rather than merely trait orientation have stated using a mixture of KPAs and attributes for assessment. 3. Self Appraisal: – Development or change takes place only if the appraise is interested in development or change. Self-appraisal is an opportunity for the appraise to recapitulate and list down the accomplishments and failures during the performance period. The most important part of self-appraisal is the process of review and reflection and through Performance appraisal.Such performance analysis should be done both by the appraise and appraiser separately and exchanged during review discussions. 4. Performance Analysis: – Performance Appraisal should be based on the performance planning dimensions. The work done or the performance during the year should be broken down into various KPAs/KRAs/tasks/targets. Performance unde r each of the above should be analyzed under the following headings. How is the actual performance with respect to the planned performances what factors contributes to the achievements from the point of view of the appraise, appraiser environment etc. 5.Performance Review Discussion or counseling: – A number of objectives can be achieved through performance review discussions which aims at making the appraiser and the appraise understand each other better by communicating the performance analysis of appraiser's performance. Performance Appraisal does not serve the purpose of developing employees unless an effective system of performance counseling in practiced in the organization performance counseling can be defined as the help provided by a manager to his subordinates in analyzing their performance and other job behaviors in order to increase their job effectiveness. . Performance Ratings: – One of the useful out comes of an appraisal is the ratings assigned at the e nd of the appraisal to the appraise. This practice distorts the main purpose of appraisals. In view of this, some organizations are seriously considering dropping rating as a part of the development oriented appraisal system and keep simple, short and confidential form separately for it. 7. Identification of training/development needs: – Appraisal provides a good opportunity to identify the developmental needs of an employer.Developmental needs should flow from performance analysis. It is important to identify the ‘competency' or ‘capability' (he appraise needs to develop in order to perform a given task better. This rather than (raining program titles. It is useful to needs of all employees and work out strategies and plans to meet them. 8. Final assessment by the Appraise: – In some organizations the final ratings given by the appraiser are not shown to the appraise because the final ratings are given taking into consideration comparative performance of o ther in the department.If an organization subscribes to such philosophy, it is useful to have separate formats for ratings rather than mixing it up with development oriented appraisals. 9. Reviewing officer's Role: – In almost all organization the requiring officer given an important role. As the reviewing officer has a larger responsibility, span of control, authority and accountability, it is useful to design a significant role for him in the appraisal process. The remaining officers, to examine the rating behavior of the reporting officers, give recommendations on developmental needs. 0. Potential Appraisal: – A system of developing employees for occupying higher positions in the organizational hierarchy to undertake higher potential appraisal. A good potential appraisal system attempts to generate data about employees and their potential for occupying higher positions from a variety of sources, and helps the top management to make decisions about the suitable perso ns for given job. 11. Signature by the Appraiser: – Some organizations require the appraiser to sign the form after the review discussion is over and ratings are assigned.The intention is that the appraiser should know what is being stated about him and he should be given a chance to express his own views in case of negative marks. APPRAISERS; 360 Degree Performance Appraisal: The appraiser may be any person who has thorough knowledge about the job contents, contents to be appraised, standards of contents and who observes the employee while performing a job. The appraiser should be capable of determining what is more important and what is relatively less important.The appraiser should prepare reports and make judgments without bias. Typical appraisers are: supervisors, peers, subordinates, employees themselves, users of service and consultants. Performance appraisal by all these parties is called 360 degree performance appraisal. Supervisors: Supervisors include superiors of the employee, other superiors having knowledge about the work of the employee and department head. Peers: Peers appraisals may be reliable if the work group is stable over a reasonably long period of† time and performs tasks that require interaction.However, little research has been conducted to determine how peers establish standards for evaluating others for the over all effect of peer appraisal on the groups attitude. Subordinates: The concept of having superiors rated by subordinates is being used in most organizations. This method can be useful in organizational settings to provide the relationships between superiors and subordinates are cordial. Users of services: Employee performance in service organizations relating through behaviours, promptness, speed in doing the job and accuracy can be better judged by the customers or users of services.Consultants: Some times consultants may be engaged for appraisal when employers do not trust supervisor appraisals and management does not trust self appraisal, peer appraisals or subordinate appraisals. In this situation, consultants are trained and they observe the employee at work for a sufficiently long time for the purpose of appraisal. Process of Performance Appraisal Performance can be undertaken either on informal basis or on formal or systematic basis. Informal appraisals are conducted when ever the supervisor or personal managers feel it necessary.However, formal and systematic appraisals are conducted on a regular basis. The systematic performance appraisal process follows a set pattern and consists few Steps: Establishing Performance Standards Communicating the Standards Measuring actual performance Comparing the actual with the Standards Discussing the Appraisal Taking corrective action 1. Establishing Performance Standards The Appraisal process begins with the setting up of criteria to be used for appraising the performance of employee. The criteria is specified with the help of job analysis whic h reveals the contents of the job.The criteria should be discussed with the supervisors to ensure that all the relevant factors have be included. These standards should be indicated on the appraisal form. Appraisal form should be carefully designed and printed. Performance standards will depend upon the objectives of the appraisals. 2. Communicating the standards The standards set for performance should be communicated to all the employees. The standards set must be explained to the employees, so that they come to know what is expected of them. When the standards are made known to the employees, they will try to make their performance equal or above them. . Measuring actual performance Once the performance standards are specified and accepted, the next stage is the actual performance. This requires choosing the right technique of measurement, identifying the internal and external factors influencing performance and collecting and results achieved. Personal observations, written repo rts and face to face contacts are the means of collecting data and performance. 4. Comparing the actual with the standards Actual performance is compared with the predetermined performance standards. Such comparison will reveal the deviations. Deviations may be positive or negative.Positive deviations occur when the actual performance exceeds the standards. Negative deviations occur when the actual performance is less than the standards. 5. Discussing the appraisal The results of the appraisal are communicated to the employees and discussed with the employees. Such discussion will enable the employee to know his weakness and strengths. There fore employee will be motivated to improve themselves. 6. Taking corrective action Appraisal process will be useful only when corrective action is taken on the basis of reports. Corrective action may be in the form of advice, council or warning.It may also be in the form of additional training, refresher courses, delegation of more authority, sp ecial assignment and coaching, etc. these actions will be useful in helping employees to improve their performance in future. If the actual performance is very poor and behind the scope of improvement, it may be necessary to take steps for demotion or retrenchment or any other suitable measure. Methods and technique of Performance Appraiser The Performance Appraiser methods differ in the approach for the following reasons. ?Firstly, they differ in the resources of traits or qualified to be appraisal. Secondly, they differ because of the different kinds of worked who are being rated. ?Thirdly, the variations may be caused by the degree of precision attempted in an evaluation, ?Finally, they may differ because of the methods used to obtain weightings for various traits. A number of performance Appraisal methods are available. The idea used categorizations is that given Strauss and sakes the methods are classified into traditional and modern methods. METHODS OF PERFORMANCE APPRAISAL Tr aditional Methods Modern Methods 1. Straight ranking method 1.Assessment Center 2. Man to man comparison method 2. Appraisal by Results or 3. Grading Management by Objectives 4. Graphic Rating Scales 3. Human Asset Accounting 5. Forced choice description method Method 6. Forced distribution method 4. BARS (Behaviorally 7. Check List anchored rating scales ) 8. Freeform or essay method . Critical Incidents 10. Group Appraisal 11. Field Review Method TRADITIONAL METHODS 1. Straight Ranking Method 2. Man to Man comparison method 3. Grading 4. Graphic Rating Scale 5. Forced choice Description method 6. Forced Description method 7. Checklists 8. Free Form Essay method 9. Critical incidents 10. Group Appraisals 11. Field Review method MODERN METHODS 1. Assessment Center 2. Appraisal by Result of management by Objective (MBO) 3. Human Asset According method 4. BARS (Behaviorally Anchored Rating Scales) TRADITIONAL METHODS STRAIGHT RANKING METHOD:It is the oldest and simplest method of per formance appraisal by which persons are tested in order of merit and placed in a simple grouping. One of the disadvantages of the system is that it permits similar total scores for two or more individuals. But it is a similar method of separating the most efficient form of the least efficient. MAN TO MAN COMPARISION METHOD: By this method, certain factors are selected for the purpose of analysis (such as leadership, dependability and initiatives) and a scale is designed by the rates for each factor, and personnel are compared to the ‘key man' in respect to the factor of a given lime.But it is not of much use because the designing of scale is a complicated task. GRADING METHOD: Under third system, the rater considers certain features and marks them, according to a scale they may be: A—Outstanding; B– very good; C— good or coverage; D—-Fair; E —poor; The actual performance of an employee is then compared with these grade definitions, and he is allotted the grace which best describes his performance. GRAPHIC RATING METHOD: These methods assess the degree of certain qualified required for the job such as industriousness, reliability and dependability.The degree usually, measure on a scale that can vary from 3 points (good, coverage and poor) to several points. When rating and objectively given, they provide useful feedback. But a serious drawback is that the rating is generally subjective. FORCED CHOICE DESCRIPTION METHOD: The forced choice method from contains a series of groups of statements, and the rater checks how effectively the statements describes each individuals being evaluated The use of this method calls for minimum subjective judgment nd objective reporting, but at the each time, the results of evaluation do not prove useful for counseling and training purpose because the rater is ignorant of evaluating the individuals. FORCED DISTRBUTION METHOD: In this method the rater is forced to distribute his subordinates into performance categories such as outstanding good poor etc. Everyone cannot be given average or good rating. Hence some percentage of the subordinates is rated better then the others. This-method is useful for rating a large number of employers.CHECK LIST: Under this method, the rater does not evaluate employee's performance, he supplies report about it and the personnel department does the final rating. A series of questions are presented concerning on employee to his behavior and the rater the checks to indicate if the answer to a question about and employee is positive or negative. This method suffers from bias on the part of the rater. FREE EASSY METHOD: In this method the supervisor makes a free form, open – ended appraisal of employees in his own words.The description is always a factual and concrete as possible. An essay can provide a good deal of information. However no attempt is made to evaluate an employee in a quantitative manner. CRITICAL INCIDENT METHOD: Und er this method work performance is measured in terms of certain events or episodes shall occur in the performance of the rater job. This method provides objectives basis for conducting a discussion of individual performance. How ever, negative incidents are generally more noticeable than positive ones. GROUP APPRAISAL METHOD:Under this method, employees are rated by an appraisal group, consisting of their supervisor and there are four other supervisors who have same knowledge on this performance. The advantage of this method is thorough, very simple and is divide of any bias, of it number multiple judges. But it is very time consuming. FIELD REVIEW METHOD: Under this method, a trainer employee from the personnel department interviews line supervisor and is required to give his opinion about the progress of the subordinates. This system is useful for a large organization.The man defect is that helps two management representatives busy with the appraisal. MODERN METHODS OF APPRAISAL: These methods place more emphasis on the evaluation of work of job achievements that in personality traits. Result oriented appraisals tend to be more objective and worthwhile, especially for counseling and development purposes. APPRAISAL BY RESULTS OR MANAGEMENT BY OBJECTIVES (MBO): MBO differs significantly from the traditional approach for it shifts the emphasis from appraisal to analysis; the subordinate is no longer examined by his strength and potential.Thus he assumed the role of and ‘active agent' rather than a ‘passive agent1. But the major problems that company's face in implementing MBO is in defining objectives. In the same organization, the purpose of the worker is different from that of management. ASSESSMENT CENTER METHOD: In this method, the organization develops its own internal reoccurred for the continuous assessment of its members for the recruitment of new members the purpose of this method is to test candidates in a social situations, using a number assessors and a variety of procedures the most important features of the assessment center is job related simulations.These simulations involve characteristics that managers feel are important to the job success. Assessments are made to determine employer potential for purposes of promotion. Assessment center ratings are said to be strongly influenced by the participants inter personal skills. Judges tend to evaluate the quality of the individuals social skills rather than quality of the decisions themselves. HUMAN ASSET METHODS: This method refers to activity devoted to attaching money estimates to the value of a firm's internal human organization and its external customer goodwill.The current value of the firm's human organization can be appraisal by developed procedures, by understanding periodic measurements of â€Å"by casual† and intervening enterprise variables. The â€Å"by casual† variables include the structure of organizations management policies, business leadership, strategies, skills of behavior. The â€Å"intervening† variables reflect the internal state and health of an organization. This method is not yet popular. BEHAVIOURALLY ANCHORED RATING SCALES (BARS): This technique, which has been recently developed, provides a more equitable appraisal as compared to other techniques.In this method, persons with knowledge of the job lo be appraised are asked to describe critical incidents of effective performance behavior. A second group is asked to rate the behavior described in the incident. Subjects to incidents arc used as â€Å"behaviors anchors† for the performance dimensions. The main advantages of this method are that experts do this, and hence the results are sufficiently accurate the use of critical incidents may be useful in providing feedback to the people being appraised. PROBLEMS OF PERFORMANCE APPRAISAL.The ideal approach to performance evaluation is that in which the evaluator is free biases, pre judicious. This is objective, it minimize the potential capricious and dysfunctional behaviors of the evaluator which may be detrimental to the achievement of the organizational goals. However, a single foolproof evaluation method is not available. Inequalities in evaluation often destroy the usefulness of the performance system resulting in accurate and invalid appraisals, which are unfair too. There are many significant factors, which deter or impede objective evaluation. HALO EFFECTIt is a tendency to let the assessment of an individual one-trait influences the valuation of that person on other specific trait. There is this effect in appraisal when the appraiser assigns the same rating to all traits regardless of an employee's actual performance on these traits. The â€Å"Halo effect† refers to be tendency to rate an individual consistently high or low or average on the various traits, depending upon whether the rater's overall impression of the individual is favorable or not this me ans that the halo effect allows one characteristic, observation or occurrence to influence the rating of all performance factors.The halo effect arises when the traits are unfamiliar; it defined and involves personal relations. This often occurs when an employee tends to be more contentions and dependable, that the appraiser might become biased towards that individual to the extent that the appraiser rates him high on many desirable attributes; or when the employee is more friendly or unfriendly employee towards the appraiser. In such cases, a very high role may be given to an unfriendly employee so that he may be by passed even though he is very capable one. LENIENCY/STRICTNESS TENDENCY:Every evaluator has his own value system, which acts as a standard against which he makes his appraisals. Relative to the true or actual performance an individual exhibits, some supervisors have a Tendency to be liberal in their ratings, i. e. , they consistently assign high values to their employee s, while at other times they may have a tendency to assign consistently low ratings. The former tendency is know as â€Å"positive leniency error†, while the latter in lenient in his appraisal, an individual performance becomes overstated, i. e. , rated higher than it actually should be.Similarly, under the negative tendency, performance is understated, than what is should. Both these trends usually arise from varying standards of performance observer by supervisors and form different interpretations of what they evaluate in employee performance. The tendency can be avoided by holding meetings or training sessions for raters so that they may understand what is required of them in rating. SIMILARITY ERROR This type of error occurs when the evaluator rates other people in the same way he has perceived himself. For example the evaluator, who peruses himself s aggressive, may evaluate others by looking for aggressiveness. MICELLANEOUS BIASES Bias against employees on ground of Se x, Religion and Caste position is also a common error in rating. For example a higher rating may be assigned to a senior employee. The rater may be influenced and give higher ratings to those holding higher positions. Besides this, there may be opportunity bias, group characteristic bias and knowledge of predictor bias. Analysis And Interpration The techniques of analysis are based on the response received from the employees.The sample consists 50 employees randomly selected from various departments. The responses were analyzed and interpreted. Period Of Study: The data is collected for the period 2007-2008. 1. In your opinions what should be the frequency of writing performance appraisal reports c. Annually. a, Monthly b. Half-yearly To understand the overall employees opinion on frequency of writ in performance appraisal report, with the help of 100 responses following data observed. SI. No. Category No. of respondents Percentage of respondents 1Monthly1632% 2Half-Yearly1020% 3Yea rly2448%Analysis and Interpretation; By observing the above data, most of the employees are satisfied with the performance appraisal policies in the company, preferred annually performance appraisal. 2. In your opinion who will be right person to appraise your performance? a. Immediate boss b. countersign authority. To understand the overall employees opinion on who will be right person to appraise performance of employee, with the help of 50 responses following data is observed. SI. No. CategoryNo. of respondentsPercentage of respondent 1Immediate Boss2550% Counter Signing Authority2550% Analysis and Interpretation: By observing the above data, most of the employees of the organization preferred that immediate boss is the right person to appraise his performance. 3. Is the present appraisal system helping you to know your strengths an weakness? a) Yes b) No The employee's strengths and weaknesses will be known through the person appraisal system with the help of 50 respondents data is observed. SI. No. Category No. Of respondents Percentage respondents 1 Yes 2550% 2 No 2550% Analysis and InterpretationBy observing the given data, The performance appraisal report speaks about the strengths and Weaknesses of the employees in the Organization. 4. Arc monthly reports of performance of each employee are prepare and taker as basis for preparing performance appraisal reports? a) Yes b) No To understand the given data Monthly report of performance of each employee's are prepared and taken as basis with the help of 50 responses following data is observed. SI. No. Category No. of Respondents Percentage respondents 1 Yes 33 66% 2 No 17 34% Analysis and InterpretationBy viewing the above data, the Performance appraisal report can be prepared based on the Consolidation of monthly report of each employee in the Organization. 5. Do you feel career part and succession plan should become part of performance appraisal? a) Yes b) No To know the employee's opinion on the career part and succession plan should become part of performance appraisal, by taking 50 responses following data is observed. SI. No. Category No. of Respondents Percentage of respondents 1 Yes 33 66% 2 No 17 34% Analysis and InterpretationBy observing the given data, employees are referred for the career part and Achievement of succession plan become the part of performance appraisal. 6. Performance appraisal reports should be revealed or not? a) Yes b) No To understand the overall Employee's opinion, performance appraisal repo should be revealed or not on the basis of 50 responses following data observed. SI. No. Category No. of Respondents Percentage Of respondents 1 Yes 33 66 2 No 17 34 Analysis and Interpretation By viewing the above data, Most of the employee preferred to reveal this performance appraisal report. . Are you satisfied with the present appraisal system? a) Yes b) No To know the employee's that they are satisfied with the present appraisal system on the basis of 50 res ponses following data is observed. SI. No. Category No. of Respondents Percentage of respondents 1 Yes 35 70 2 No 15 30 Analysis and Interpretation: By viewing the data, Most of the employees are satisfied with the present performance appraisal System followed in the organization. 8. Does the performance appraisal system followed by your organization Improves the overall performance of organization? a) Yes b) NoTo understand the performance appraisal system followed in your organization' Improves the overall performance of organization, by taking 50 respondents d? is observed. SI. No. Category No. of Respondents Percentage of Respondents 1 Yes 35 70% 2 No 15 30% Analysis and Interpretation By observing the given data, the performance appraisal system followed in the MAHINDRA & MAHINDRA FINANCE SERVICE LTD. improves overall efficiency in the management and control over the staff towards the promotional policy and achievement of the goals. 9. Performance appraisal should be evaluated? ) More than once in a year b) Once in a year c) Occasionally To know the Employees opinion Performance appraisal should be evaluated for the period by taking 50 respondents data is observed, SI. No. Category No. of Respondents Percentage. Of respondents 1 More than Once in a Year 1327% 2 Once in a Year 3366% 3 Occasional 47% Analysis and Interpretation: By viewing the above data, Most of the employees preferred to evaluate the performance appraisal yearly. 10. Do you get any guidance from your superior in your day today work? a) Regularly b) Occasionallyc) Not at allTo understand the employees opinion, to get the guidance from your superior in your day today work with the help of 50 respondents following data is observed. SI. No. CategoryNo. of RespondentsPercentage of respondents 1 Regularly 27 54% 2 Occasionally 20 40% 3 Not at all 3 6% Analysis and Interpretation; By observing the given data, most of the employees wish to guide by the superior regularly in day to days and occasi onally in specific purpose. 11. Do you think the performance appraisal Performa / program covers all aspects of the job? a) Covers all aspectsb) Does not cover some aspects ) Does not cover many aspects. To know the overall employees opinion performance appraisal Performa / program covers all aspects of the job with the 50 respondents following data is observed. SI. No. Category No. of Respondents Percentage of respondents 1 Covers all aspects 20 40% 2 Does not cover some aspects 3 8% 3 Does not cover many aspects 27 52% Analysis and Interpretation: By view the above data, most of the employees have reported that the appraisal Performa that does not cover many aspects of the jobs. 12. Which of the following is a better form of appraisal? a) Self appraisal b) Confidential reportsTo know the overall employees opinion which will be the better form of appraisal system, with the help of 50 respondents the following data is observed. SI. No. Category No. of Respondents Percentage of respo ndents 1 Self Appraisal 40 80% 2 Confidential Reports 10 20% Analysis and Interpretation: By observing the above data, most of the employees wish to have their self appraisal is better than the confidential report. CHAPTER – 4 LIMITATIONS OF STUDY LIMITATIONS OF THE STUDY The study is limited to the policies and practices being followed in Mahindra & Mahindra finance ltd. Time factor is the main constraint for the study as it was restricted only to eight-nine weeks. ?Sampling error is not taken into consideration. ?The information given by the

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Reflections on my Drug Administration OSCE - Essay Example Drug administration is one of the major roles of nurses. However, as I found out in the objective structured clinical examination (OSCE) given to us, it entails much more than simply giving a patient a pill. It is an aggregate of all the principles and skills we learn as nursing students, and the application of theories into practice. In drug administration, we have to remember and practice patient safety, provide holistic and individualized patient care, have a solid foundation on knowledge about drugs and medication safety, and perform administration checks and documentation at all times. Much about the role of nurses in hospital can be learned from something as seemingly simple as a drug administration OSCE. Patient safety practices Patient safety is a crucial part of patient care. At all times, all health professionals should keep the safety of the patient in mind. Patient safety practices for drug administration begin at the first contact, from patient identification, patient ed ucation and information, patient contact, performance of procedures, to leaving the patient comfortable. One of the important principles in patient safety is infection control. Nosocomial or hospital-acquired infections are the most common complications affecting hospitalized patients today, and one of the major sources of infection is cross-infection by health care workers (Burke, 2003). Meaning, most patient obtain infection from the hands of those that are treating and caring for them. Most incidents that lead to infection can be prevented and one of the simplest ways to prevent this is by hand-washing. In the Guideline for Hand Hygiene in Health-Care Settings released by the Centres for Disease Control and Prevention (Boyce and Pittet, 2002), it is recommended that hand washing and hand antisepsis be done if hands are visibly dirty or contaminated. It should also be done before having direct contact with patients, before donning sterile gloves, after contact with a patientâ€⠄¢s skin, after contact with body fluids or excretion and wound dressings, and before eating or after using the restroom. In all aspects of contact with the patient, hand hygiene must be done. The guideline further recommends that health care personnel should not wear artificial fingernails, should keep nail tips short, and should remove gloves after caring for a patient. Thus, before drug administration, and even before handling drugs and preparing them, hand washing must always be done. It should also be done after patient contact, and in between interaction with different patients. Verifying patient identity is another important aspect of patient safety, and not being able to do this could lead to adverse results. Omitting verbal verification of patients’ identity prior to administering medications may lead to a potential adverse event 20% of the time in worst case scenarios (Lisby, Nielsen, and Mainz, 2005). Even with the use of medication administration technologies such as bar code verification, effectiveness in preventing errors is largely dependent on how practitioners use the technology to verify patient identity and drug identity (Englebright and Franklin, 2005). Remediable causes of having the wrong patient include absent or misused protocols for patient identification and informed consent, faulty exchange of information among caregivers, and poorly functioning teams (Chassin and Becher, 2002). During my OSCE, I failed to check the identity of the patient with my mentor. I understand that failing to properly verify my patient’s identity could lead to adverse consequences, and will make sure to keep it in mind in future patient interactions. Doing a brief clinical history can also contribute to patient safety. It allows nurses and other medical personnel to be aware of the patient’s condition, comorbidities, present symptoms and level of comfort. Particularly relevant in drug administration is asking the patient about other drugs being taken and for any personal history or family history of

Music industry and peer-2-peer download Essay Example | Topics and Well Written Essays - 2750 words

Music industry and peer-2-peer download - Essay Example In addition, it was a PR disaster as most of the lawsuits covered by the media consisted of teenagers and schoolchildren. Meanwhile, the decline of music sales continued unabated as, compared to 2003 when 656 million albums were sold worldwide, sales fell to 250 million in 2012. PR campaigns were touted as the best way to reach more music consumers by communicating the fact that their actions were illegal and hurt the musicians. Although Yar (2008: p46) states that litigation did have an effect in raising awareness among music consumers about the illegal nature of P2P platforms, new methods like PR campaigns are now available and have a better chance at success. This paper will consider three PR campaign frames; structural, symbolic, and political, as used in Pro Music, Music Matters, and SoundByting PR campaigns, as well as their target audiences and their intended effects on the music consumer. The pro-music campaign is a coalition of music industry organizations and individuals, who form an alliance of music retailers, independent and major record companies, artists, managers, performers, and musicians (Baym, 2010: p178). This coalition operates in several countries, including the UK, and seeks to promote an array of ways that music consumers can enjoy music legitimately and safely over the internet. In the UK, it has partnered with ISPA UK to promote community relations that seek to educate the music consumer about the consequences of breaching corporate law when downloading music over P2P file sharing networks. This campaign addresses various issues about online download of content, while also advising consumers about available and legal online music content. The main targets for this campaign are parents, teachers, and young people, seeking to raise awareness about music content-related issues on the internet. The main backer and financier of this PR campaign is the In ternational Federation of Musicians, of which the UK chapter

Venezuelan Economiocal Situation Research Paper

Venezuelan Economiocal Situation - Research Paper Example His leadership has been heavily protested ever since that time. The economic crisis in the country is exhibited by several problems that the country experiences. These problems are food shortages, lighting and communication problem, insecurity, political prisoners, government expropriations, poor US Venezuelan relationship and inflation and black market dominance. It is highly ironical that a rich country such as Venezuelan has no food. The daily battle of the country in search of food is not new but it is getting worse especially with the presence of the rainy season. The country retailers have to battle flooded avenues, upturned manhole lids and heavy traffic jams in its quest for milk, oil, and sugar. Many of the locals in the country have a problem getting access to healthy food, not that they lack sufficient cash to afford them but the scarcity of the food makes them lack. This factor causes the little available food presented in the market to retail at extremely high prices leaving the low-income households at a disadvantage since they cannot afford. The locals of the country are forced to queue for long hours in a bid to purchase some of the low quality rice that is present in the country. The spending of many hours in the queues just to buy food wastes plenty of time and many people prefer substituting the consumption of rice with man ioc regardless of their quality. Venezuela used to produce high quality rice and excellent coffee but it stopped. The lack of the country’s staple food, rice, in the shelves explains the extent of food shortage in the country (Lopez). The government of Venezuela nationalized the lighting and communication sectors. They are no private firms in the sectors. The government departments monopolize the lighting and communication sectors to the extent that exploit the country’s citizen. Since the government does not get

Bill of Rights Essay Example | Topics and Well Written Essays - 750 words

Bill of Rights - Essay Example Amendment four People have the right to be safe in their houses, effects, and persons, against illogical seizures and searches, shall not be infringed, and no guarantees shall issue, but on likely cause, supported by affirmation or oath, and specifically describing the location of search, and the individuals or items to be seized. Amendment five No one shall be answerable for a capital, or any renowned crime, except on an indictment or a presentment of grand judges, in exception of cases occurring from naval or land forces, or in the military, when in real service in war or public danger times; nor shall any individual be subject to similar offense to be placed in danger of life or extremity, nor shall be forced in any criminal case to witness against himself, nor his life, property, or liberty be deprived without the correct law process, nor shall personal property be taken to be used publicly, without being justly compensated. Amendment six The accused shall enjoy the right to a qu ick and public trial, by a neutral judge of the district and state where the crime was committed, the district should have been determined by law, and to be made aware of the cause and nature of the allegation; to be dealt with the witness in opposition to him; to have an obligatory procedure for finding witnesses in his favor, and to be assisted by the counsel in defending him. Amendment seven At common law suits, where the value in disagreement exceeds twenty dollars, the jury’s right of trial shall be preserved, yet no reality by a judge shall be otherwise be reevaluated in any U.S. court, than in accordance to the common law. Amendment eight Extreme bail shall not be necessary, nor extra fines imposed, nor brutal and strange punishments imposed. Amendment nine The details in the Constitution, of particular rights, shall not be interpreted to disparage or deny others retained by citizens. Amendment ten Those powers not provided by the Constitution to the U.S, nor forbidden by it to the states, are set aside to the states respectively, or to the citizens. The amendments related to due process protections and criminal procedures protect the rights of the accused and the suspected persons, convicted criminals, and criminal defendants. The rights are all provided in the 4th 5th, 6th, and 8th amendments as discussed above (Bruns, 1986). Our group chose on five U.S citizens to interview in order to get a clear understanding of how the public is aware of the Human Rights and the procedures established by the amendments. The interviewees included a male University student, a soldier, a female lawyer, a business man, and a female town clerk. The group interviewed the five citizens basing on: their perceptions and awareness regarding the subject; knowledge on the violation of rights and protection; and knowledge on particular human rights institutions and the process of accessing them. The survey questions to the interviewees were: Have you ever heard of the U .S Constitutional Bill of Rights? Are you aware that the Constitution has a chapter on criminal procedures and protection of essential human rights? How much of the Bill do you have clear knowledge about? By how far have you read the U.S constitution? Do you think the rights are being exercised as provided? Are

Compare and Contrast Paper. 21 Jump Street Essay

Compare and Contrast Paper. 21 Jump Street - Essay Example Drug intake, committing illegal actions, pretending as prostitutes, lovers and gang members is a common practice of undercover police officers to maintain their cover. Simultaneously, many at times such drug usage, addictions and other illicit habits (to maintain their cover) ruin personal lives and relationships of these officers and they consider them self exempt of law/ accountability due to their undercover assignments (274, Pollock). A chase on the freeway by the motor cycle gang from the park led Jenko and Schmdit to destroy public property on the freeway and threatening lives of several citizens in it as well. However, in real life these undercover agents are not allowed to destroy public property to large extent like displayed in the movie and jeopardize the lives of innocent citizens to secure their cover. The argument on Schmdit’s hesitation to open fire upon the gang member is a question mark, as undercover agents are employed to bring information instead of fighting the culprits them self. These informants are mainly installed to gain extensive knowledge of the drug mafia and by no means required to kill the dealers or their agents on their own (Lee,

Primary and Support Activities of Value Chain Essay Example for Free

Primary and Support Activities of Value Chain Essay Raytheon Company has created new software that improves the logistics system of the company by providing constant tracking data of all products in the inventory, which has saved the company nearly $9M. MTrak is a web-based system that includes the Microsoft . Net technology, which is used to capture bar-code scans and combines it with information from the mainframe computer to provide tracking of all inventories anywhere within the company. A lot of stuff got lost, company had to have multiple people sitting by the phones to take the calls asking where the parts were. The creation of MTrak brings Raytheon online with its competitors in the industry. While the system does not create a competitive advantage to Raytheon, it does negate the disadvantage of a bad supply control system. The creation of MTrak contributes to the entire value chain by tracking the products from the beginning of the chain at Inbound Logistics, through Operations, Outbound Logistics, Marketing and Sales, through to the end of the chain at Service. The Technology and Competitive Forces The major problem at Raytheon was lost inventory. The suppliers were not to blame because they were able to account for every piece of property they supplied through their fully automated supply chains. From the beginning, the goal was to create a system that would track all materials used by Raytheon such as resistors, capacitors and customized computer chips from the time of order through receiving, testing, placement in inventory and final use in a military field radio, handheld motion sensor or some other Raytheon product . Whenever Raytheon received calls for a missing delivery personnel would physically search the area to see if the product was still there. In some cases, if the item couldn’t be found the employees would reorder the item so production schedules could be met.. The MTrak is a web-based system that includes such technologies as Microsoft . Net and Biz Talk 2004. These technologies, which captures bar-code scans and other information on incoming deliveries, combine it with other information from the mainframe system such as purchase-order inventory, anufacture-scheduling data. The integration of the MTrak and mainframe computers is possible through the use of software provided by WRQ Verastream. This system lets employees track the status and movement of parts throughout the entire company from a web browser. Competitive Forces-Value Chain The Value Chain consists of five Primary Value Chain Activities and four generic categories of support activities. The primary value chain activ ities are supported by the generic categories. In this case the primary chain activities that are being supported are the Inbound Logistics, Operations, Outbound Logistics, and Marketing and Sales. The supporting category is Technology Development. Raytheon created this technology in-house with publicly available software. Even though integrating the software into the daily business of the company did not create a competitive advantage, Raytheon was able to save money in many areas including lost inventory, delayed production, and outsourcing software development. Supporting the Company The MTrak tracking system provides a state-of-the-art software package that provides Raytheon with the means to track its entire inventory throughout the entire company from a web browser. This technology improves the value chain of the entire company. Though the use of this technology, Raytheon will be on a level playing field with other companies in the industry. It may even spur Raytheon an advantage in the future as the company continues to grow.

Pest Analysis Of The Bae Company Finance Essay

Pest Analysis Of The Bae Company Finance Essay This article want to analysis the five-year of financial data which from 2004 to 2008 of BAE ,in order to understand the companys business profitability and development capacity and found the further possibility to enhance the utilization efficiency of it ,so that to promote the investment activities of the enterprises business goal of maximizing value in accordance with a benign operation. Instruction BAE Systems is the merger of British Aerospace (BAE) and Marconi Electronic Systems (Marconi Electronic Systems) which was established in November 1999. In September 2004 BAE Systems acquired Alvis Vickers and merged it with its RO Defence ordnance division to form BAE Systems Land Systems.In June 2005 BAE Systems acquired United Defense and reorganised its land systems businesses into BAE Systems Land and Armaments, with Land Systems and Land Systems Hà ¤gglunds as subsidiaries of this U.S. based operating group. It is an international company engaged in the development,delivery and support of advanced defence and aerospace systems in the air,on land,at sea and in space. In 1999 the net sales of the company was 89.29 billion pounds (14.449 billion U.S. dollars)of which military sales was 5.837billion pounds. In 2000, it becamed the third of the worlds 100 largest military companies. Now, the company employed more than 100,000, and annual turnover of the company is 12.3 billion pounds and orders amounted to 37.5 billion pounds. PEST analysis of the BAE company 1.Politics. BAE Systems is a global company which conducts business in a number of regions, including the Middle East.Sales market over more than 130 countries, this brought great opportunities to the company. However,Government regulations and administrative policies of some countries could change quickly and restraints on the movement of capital could be imposed; governments could expropriate the Groups assets; burdensome taxes or tariffs could be introduced; political changes could lead to changes in the business environment in which the Group operates; and economic downturns, political instability and civil disturbances could disrupt the Groups business activities. New threats and conflict arenas are placing unprecedented demands on military forces and presenting BAE Systems with new challenges and opportunities to assist those forces in meeting changing defence and security needs.( Susana Callao,2007) 2.Economic and Society Global passenger traffic is forecast to increase by approximately 5% per year. Strong growth is expected in Asia and the Middle East and lower growth in the more mature North American and European markets. The market for large commercial jets is forecast to continue to grow on the back of rising passenger travel. Annual revenue passenger kilometres (RPKs) are forecast to grow by approximately 5% through to 2023 creating an expected average demand of some 830 aircraft deliveries a year. The US represents over 45% of the total forecast global defence spend (including equipment, personnel and operating costs) to 2010. Defense and transport development brings a huge market demand for the BAE. 3.Technology BAE Systems has played an important role in transatlantic,most notably has advanced technology in the M777 howitzer and F-35 Joint Strike Fighter programmes. The US and the UK have a long history of defence industrial cooperation that has provided significant benefits to both countries.In todays environment of coalition operations it would be the advantage of both governments and defence industries to allow and,indeed, to encourage freer technology sharing between the UK and the US. For BAE Systems an improved technology sharing environment would enable its engineers and scientists in the US and the UK to collaborate more effectively,and bring together their collective skills and expertise to the benefit of its two major customers, the UK and US governments,as well as to its shareholders. Review and anlaysis of company stratey 1.Pricing policiys. BAE companys major pricing policy is before business sales occure sign fixed price contracts with clients. Large part of the companys sales come from fixed-price contract. Because the companys largest partner is the United States, the U.S. team a great need for defense products, so the business mainly occure in sectors such as government troops, using a fixed-price sales contracts to ensure fixed sales and also to simplify transactions. 2.Market position.BAE Systems has major operations across five continents and customers in some 130 countries. Global businessof the company is based around six home markets in US, Saudi Arabia Australia, Sweden ,South Africa, and the UK. It is the worlds second-largest defense company and the third-largest Airlines defense and also the third-largest electronics Airlines. 3.Comparison with that of its competitors. The Groups business is subject to Significant competition. Most of the Groups businesses are focused on the defence industry and subject to competition from national and multi-national arms with substantial resources and capital, and many contracts are obtained through a competitive bidding process.( Tim Sutton,2004)The Groups ability to compete for contracts depends to a large extent on the effectiveness and innovation of its research and development programmes, its ability to offer better programme performance than its competitors at a lower cost to its customers, and the readiness of its facilities, equipment and personnel to undertake the programmes for which it competes. 4.Development Strategy of BAE Systems BAE Systems is a large international companies who has the responsibilities to its clients shareholders, employees and partners.Its strategy goal is to maximize the interests of shareholders. In order to achieve the companys strategic goals, the Board promotes to enhance the companys culture atmosphere and establish Operational Framework. .That is based on principles of good governance, aset of definitions, values, policies and processes that guide the companys work and behaviour, and a uesful system of delegated authority(David Tyrrall,2007). In order to realise the management of the companys business and deliver their strategy,the Operational Framework covers all wholly andmajority-owned businesses and describes the Groups mehods to its organisation, culture which including ethical principles of business conduct, values and governance framework vision, delegated authorities , and corebusiness processes. Financial Analysis for BAE Systems Industry Analysis In the global aerospace and defense industries Europe accounts for 19.6% of the global markets value. In 2004 the European aerospace and defense market grew by 0.9% which reached a value of $249.9 billion. The civil aerospace sector generated the second largest revenues in 2004, reaching a value of $62.3 billion, equivalent to 24.9% of the markets value.In the next five years, it is expected to be greatly growth. By 2009, the market is forecast to reach a value of $278.2 billion, which equates to a CAGR of 2.2% in the 2004-2009 period, higher than the global market as a whole. However, Asia-Pacific will see spending rise by 4% per annum while the US market is predicted to decline with a 0.6% rate over the same period.During thie time the third biggest aerospace and defense company it will also play an increasingly important role in operation and management in the future. BAE Systems recorded revenues of $20 billion during the fiscal year 2005, an increase of 25% over 2004. The operating profit of the company was $1.6 billion during fiscal year 2005, an increase of 16.3% over 2004. The net profit was $1 billion in fiscal year 2005, compared to a net profit of $5.5 million in fiscal 2004.Rolls Royce is the leading player in the global civil aerospace, defense aerospace, marine and energy markets. Compared to BAE systemss business performance, Rolls Royce company recorded revenues of $7.4 billion during the fiscal year 2005, an increase of 5.2% over 2004. The increase was primarily attributable to an increase in revenues from the companys civil aerospace division. The operating profit of the company during fiscal 2005 was $397.5 million, an increase of 43.5% over fiscal 2004. The European aerospace and defense market generated total revenues of $234.9 billion in 2005, this representing a compound annual growth rate (CAGR) of 1.3% for the five-year period spanning 2002-2006. The US and Asia-Pacific markets grew over the same period with CAGRs of 6.7% and 3.4% respectively, to reach the values of $502.6 billion and $157.2 billion in 2006. BAE systems occupies an important position in the industry. In the whole industry it can realized its business very well. The following financial analysis is to analyze 2004 to 2008, the specific circumstances of these years. Here collect the relevant data of the BAE for five years. These data which is important can best reflects the companys operation. The preparation of data sheets is as follow. The following analysis mairly use dynamic ratio of fixed base method and ues the data of 2004 as a fixed base period to analyze the indicators. FINANCIAL STATEMENTS Five-year summary Income statement à ®- ³ à ®- ³ à ®- ³ à ®- ³ à ®- ³ 2008 2007 2006 2005 2004 Sales including Groups share of equity accounted investments 4,459 3,916 4,007 3,697 3,063 Electronics,IntelligenceSuppo rLandArmaments 6,407 3,538 2,115 1,270 482 Programmes Support 4,638 5,327 4,615 4,660 International 3,333 3,359 3,428 3,138 Programmes 2219 Customer Solutions Support 2,856 Integrated Systems Partnerships 2,022 HQ Other Businesses 235 243 295 471 464 Intra-operating group sales (529) (673) (695) (655) (417) 18,543 15,710 13,765 12,581 10,689 Underlying EBITA6 (restated) Electronics, Intelligence Support 506 437 429 324 256 Land Armaments 566 324 168 86 (8) Programmes Support 491 456 331 261 International 35 435 412 403 Programmes 10 Customer Solutions Support 497 Integrated Systems Partnerships 95 HQ Other Businesses (101) (203) (146) (117) (50) 1,897 1,449 1,194 957 800 Profit/(loss) on disposal of businesses 238 40 13 (4) Uplift on acquired inventories (12) (44) EBITA5 2,135 1,477 1,207 909 800 Amortisation and impairment of intangible assets (424) (297) (139) (122) (110) Finance costs including share of equity accounted investments 697 93 (174) (196) (132) Profit before taxation 2,408 1,273 894 591 558 Taxation expense including shar e of equity accounted investments (640) (373) (248) (147) (219) Profit for the year from continuing operations 1,768 900 646 444 339 Profit/(loss) for the year from discontinued operations 22 993 111 (336) Profit for the year 1,768 922 1,639 555 3 Balance sheet Intangible assets 12,306 9,559 7,595 8,217 6,115 Property, plant and equipment, and investment property 2,558 1,887 1,869 1,922 1,901 Non-current investments 1,040 787 678 1,730 1,535 Inventories 926 701 395 485 498 Payables (excluding cash on customers account) less receivables (5,866) (5,373) (4,298) (4,596) (3,891) Other financial assets and liabilities 240 52 6 (7) Retirement benefit obligations (3,365) (1,629) (2,499) (4,101) (3,210) Provisions ( 845) (809) (695) (718) (491) Net tax 256 63 648 1,012 876 Net cash/(debt) 39 700 435 (1,277) (668) Disposal groups held for sale 64 137 Minority interests (55) (36) (17) (16) (10) Total equity attributable to equity holders of the parent 7,234 5,966 4,117 2,788 2,655 Financial statement and cash flow analysis, After the 2003 recession, Europes aerospace industry will experience a steady growth phase. As prediction, there will be a 3.9% annually growth, which is also reflected in BAE Systems financial report after 2004. Profitability Analysis Profitability mainly in Revenues ,Sales, Operating profit, Order book, Return on sales, Net cash, and Cash inflow from operating activitie. The company recorded revenues of $20 billion during the fiscal year ended December 2005, an increase of 25% over 2004. The operating profit of the company was $1.6 billion during fiscal year 2005, an increase of 16.3% over 2004. The net profit was $1 billion in fiscal year 2005, compared to a net profit of $5.5 million in fiscal 2004.And for the company Europe Aerospace Defense in 2005 it generated revenues of $42.5 billion, an increase of 7.7% on the previous year. The European aerospace defense market generated total revenues of $184.3 billion in 2008, representing a compound annual growth rate (CAGR) of 9% for the period spanning 2004-2008. However the BAE system has higher the average. Sales represents the amounts derived from the provision of goods and services, and includes the Groups share of sales of its equity accounted investments. Compared with 2004,the sales of BAE increased by 14.2% in 2005,2.1%in 2006,16.4% in 2007 and 37.6% in 2008. Overall,BAEs sales revenue is in a increase trend. Starting in 2006, a significant increase had been showed and compared with 2007 the sales of 2008 increased by 18%.he significant increase in sales in 2008 has primarily been caused by the Land Armaments operating group due to high armoured wheeled vehicle volumes in the US and full- year impact of the Armor acquisition. This shows that BAEs products have strong market potential. Operating profit.Operating profit is a indicatore to measure of business efficiency. BAE Systems recorded revenues of 16,671 million in the financial year 2008 which is an increase of 16.5% over 2007. For the 2008, the US which is the companys largest geographic market, accounted for 56.4% of the total revenues. Operating profit in 2008 is 2.2 times of 2004,in 2007 it increased 52.1%,from  ¿Ã‚ ¡774m in 2004 to  ¿Ã‚ ¡1177m. Operating profit is showing the trend of rising year by year reflects a good profitability of BAEs business. There is a very good market prospects of the enterprise. Inventory turnover.Decline in inventory turnover .However, when compared with the same industry Boeing it is still very high. Accounts receivable turnover in 2005 and 2006 was lower than that in the other early years. However, in 2007 and 2008, BAEs accounts receivable turnovera increased substantially ¼Ã…’Total asset turnover ratio is relatively stable, but slightly higher than the industry standard. Order book.Order book reflect the popularity of the product, it also shows the potential of products in the market.However, the number of orders can not be a comprehensive response to the operating performance of companies.Between 2005 and 2004,the order book was increasing ,while in 2006 the book order was only 31.7 bn ,reduced almost by 37%.then there was a recover and in 2008 the order book was 46.5bn although it was still less than 2004. Reduction in order book illustrates the business sales market in the shrinking.Reduction in main business volume, indicating that the development of enterprises might have gone wrong strategy. Return on sales.From the table it can be seen that the return on sales is increasing year by year , But the order is indeed the in reduction.The Prorfit for the year in 2006 is very high however the cash inflow from operating activities in this year was the lest. It may be there is something can not be reflect in the financial report, the other businesses increasing cause income to increase,so it is not be reflect in the financial report which is about the return on sales. Cash inflow from operating activitie.Cash inflow from operating activities is used to determine the the actual gap between companys operating cash flow and financial reporting operating income or net income. (Hans,2007) . From the table that the operating business cash flow show a downward trend during the five years.That is to say compared with 2004 the cash inflow from operating activities reduced by 10.7% in 2005, 61.1%,in 2006, 8% in 2007, 14.5%, in 2008.The 2008 reduction in operating business cash flow largely reflects utilisation of Saudi Typhoon advances received in 2007 and an agreed repayment to the UK Ministry of Defence in respect of the Astute programme.However, it reflacted there is something wrong with the companys cash flow. Net cash. The cash flow was  ¿Ã‚ ¡700m in 2006,however, in 2007 it reduced by 28% and becomed to  ¿Ã‚ ¡435m,even worse in 2008, it is only  ¿Ã‚ ¡39m. In 2008, 83.43% of the cash flow ratio is too high compared to the same industry. Capital utilization rate is low, so a decline in cash flow to investors is a positive message. And in 2008 29.65 percent of the cash-flow ratio compared to the industry is relatively high. The company Europe Aerospace Defense recorded a net cash of $2.1 billion up 40% in an average . The reduction of the net cash flow shows that there is some problem in the cash inflow of the company,it may have a bad effect on the operating and develpoment of BAE. However overall level still very high for the company . Solvency analysis. Overall there is a very strong solvency.In particular, in year 2005 and 2006, current ratio were more than 2 ¼Ã…’quick ratio exceeds 1.But it is also the performance of the low efficiency of fund utilizationà £Ã¢â€š ¬Ã¢â‚¬Å¡Although the 2007 and 2008, the flow rate and the liquid have declined more .But does not affect the solvency ¼Ã…’and the increased utilization of funds. Assets is responsible for rising rates, leading to long-term solvency has been reduced low ¼Ã…’But the asset-liability ratio does not exceed 50% ,the long-term solvency remains strong. Analysis of share price performance Comments on company management/board of directors and the stock market The Board promotes a common culture and identity through the Operational Framework. It sets out the way we do business and what it means to be part of the Group. It is the Groups framework for a sound system of internal controls. All employees are required to comply with the Operational Framework in their business conduct. The BAE Companys TSR (share price growth plus dividends) ranking relative to a comparator group of 18 other international defence and aerospace companies such as Boein,General Dynamics,Raytheon ,Cobham,Dassault Aviation,EADS,Embraer PN,Finmeccanica and so on.. None of the shares vest if the Companys TSR is outside the top 50% of TSRs achieved by the sectoral comparator group and 100% vest if it is in the top quintile (ie top 20%) as set out below(Herve,2006) Rationale for performance measures: importance to major investors as an indication of both earnings and capital growth relative to other major companies in the same sector and to ensure that awards only vest if there has been a clear improvement in the Companys performance over the relevant period. EBITA . EBITA refers to a companys income before the deduction of interest, tax and amortization expenses. It is also consistent with the profi t measure which is used by BAE to analysis internal performance and as a measure of operating profitability that is comparable over time.à £Ã¢â€š ¬Ã¢â‚¬Å¡Underlying EBITA increased 86.7% in 2008 which reaches to  ¿Ã‚ ¡1,897m compared with 2004,and 31% compared witn 2007.according to the calculation ,compared with 2004, EBITA increased 45.4% in 2007,18.8% in 2006 and 16.3% in 2005. Underlying EBITA during the five years is increasing growth all the time . View of the circumstances from the BAE, there is a very good return on investment .That is very likely to achieve value and hedging to buy its stock. Underlying earnings per share. From the table it can be seen that Underlying EPS is 37.1p in 2008 which increases 23% compared with last year.And there is a 28.1% increase in 2007, 30.6% in 2006,29.3% in 2005.All these increase are compared with the year brfore. Companies and the stock market do not like fluctuating EPSs. In the past BAE EPS growth rate 35.25% ¼Ã…’growth potential is still very good and EPS Stability is very good too.Companies operate is stable and reasonable. The Underlying earnings per share of BAE does not fluctuate badly,so it is good for its sharehooders.And Underlying EPS continue to rise mainly reflecting higher underlying EBITA of the BAE. BAE as an aviation industry leader ¼Ã…’in the 2004-2008 years, the companys revenue and profit growth.From 2006 to 2008 BAEs profitability continued to rise.In particular, rising faster in 2008. Recommendation to investors Based on the above analysis,it can be seen the companys operating capacity is very light, and development prospects is very good,its position in the industry is also high. The company will continue to develop, and will continue to grow. With the recovery in economic development, the companys operations development will gradually resume, which will cause the Companys stock price rebound. Therefore, the long-term investors can look up a little,and continue to hold its shares, to realise the purpose of increasing the value of their money. For short-term investors they will have to stage development according to the company, select the appropriate strategy to achieve their own purposes. SWOT ANALYSIS Strengths Weaknesses BAE achieved with many business acquations, and establish friendly and long-term relationship with the United Kingdom and other countries, through the merger, the companys growth has been greatly improved. Diversified business The company has advanced technical level. Strong growth in revenue and profits Relatively low employee productivity Unfunded employee post retirement benefits Sluggish performance in key segments Fixed-price contracts risk The Group is exposed to risks inherent in operating in a global market. The Group is involved in consortia, joint ventures and equity holdings where it does not have control. Opportunities Threats With the intensification of regional conflicts more demand for defense products is also increasing, thus creating a large demand for the companys products, especially the United States, defense products demand is very huge. Huge international market and the demand for defense products offers great opportunities for BAEs development. Growth in global aerospace and defense Intense competition High dependence on government contracts Recommendations Minimize the fixed-price contract and control the initiative rests in its own hands.At the same time to manage contract-related risks andà £Ã¢â€š ¬Ã¢â€š ¬uncertainties, contracts are managed through theà £Ã¢â€š ¬Ã¢â€š ¬application of the Lifecycle Management (LCM)à £Ã¢â€š ¬Ã¢â€š ¬business process mandated by the Groups Operationalà £Ã¢â€š ¬Ã¢â€š ¬Framework at the operational level ¼Ã… ½(Flower,1998) The Group has formal systems and policies in place which are mandated under the Groups Operational Framework to ensure adherence to regulatory requirements and to identify any restrictions that could adversely impact the Groups future activities. The Group has formal systems and procedures in place to monitor the performance of such business arrangements and identify and manage any adverse scenario arising. In order to protect itself against currency uctuations, the Groups policy is to hedge all materialrm transactional exposures, unless otherwise approved as an exception by the Treasury Review Management Committee, as well as to manage anticipated economic cash ow exposures over the medium term. Conclusion BAE in a leading position in the aviation industry .Both operating profit margin or asset turnover ratio is higher than the level of the same industry.However, compared with other companies in the industry, the use of financial leverage is not very good, capital utilization rate is not high. From the above there is still great room for BAE development.The future development considerations from the following two ¼Ã… ¡One is to raise operating margin ¼Ã…’Second, make full use of financial leverage effect,because of its financial leverage below the level of the same industry. The most important thing for the company is upgrading in innovation and technological.Encourage the development of a new ideology ¼Ã…’new technologies and new ways of working and bring them with a lasting competitive edge. And for the investors, because in the past BAE EPS growth rate 35.25% ¼Ã…’growth potential is still very good and EPS Stability is very good too,so they can buy stocks of the company at present time.( David Tyrrall,2007)Under the financial Crisis, government purchases declined, but as the recovery of the financial environment the companys business will increase, operating profits will increase substantially.Therefore, with the improvement of operating conditions the stock price will be in a good direction.