Role of Incentives in Performance Management - PU Project

8/8/2019 Role of Incentives in Performance Management - PU Project

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Shahab Ali,IAS, University of Punjab Lahore, Pakistan [email protected] 0900-323-4019149 Page 1

Location

ABOUT MIAN TYRE & RUBBER COMPANY LIMITED

PANTHER, The brand of Mian Tyre & Rubber Co. Ltd. has been a trade mark for quality Tyres &

Tubes since 1983. High standard manufacturing ofTractor, Forklioft, LTV, Motorcycle, Bicycle,

Scooter, Moped, Caravan and Wheel BarrowTyres & Tubes has made PANTHER a well-

reputed name with millions trusting & relying on the brand.

Committed to Quality

AtMIAN TYRE & RUBBER COMPANY LIMITED, they continue to stay committed to enhancing

the quality of our products and upgrading our technologies. It goes without saying thatthey adhereto the highest standards of safety. Testimony to their endeavours is the fact that we are the first and

only Pakistani Tyre company to be awarded theISO 9002 certification.

HEAD OFFICE

Mian Tyre & Rubber Co. Ltd.

100-A, Saint John Park, Abid MajeedRoad,Opposite Fortress Stadium,

Lahore Cantt. - Pakistan.

Tel: +92-42-111-55-4444Fax: +92-42-36661674

Emails:[email protected]@miantyre.com

29.5

Mian Tyre& Rubber Co. Ltd.


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b Ali,I Uni rsit ofPunjab Lahor Pakistan shahabkhan22@gmai om 0900-323-4019149 Page 2

Origina q ip

nt anufa

turer

PANTHER enjoys long s

nd

ngrelations

ips with leadingOEMs

ikeONDA, YAHAMHA,

UZUKI,

INGQI, AK HERO, and

OHRAB. Workingclosely with ourpartners'Research and Technology

departments they manufacture scientific highly durable, customized Tyres for all customersBy

creating new business opportunities, reducingcosts, getting to market faster and increasingcustomer

satisfaction, their OE!

partners have empowered us to grow exponentially

Research & Develop " ent

MI#

$

%

Y&

E'

& ( ) )

E&

0 1

MP#

$Y

2IMI

%

E3 has established ourR& D centre with the vision of

innovatingdesigns that wouldgreatly enhance Tyre performance. Theircentre is equipped with the

most modern IT-based tools like, which enable them to create a large number ofcomputer-generated

designs within a shortperiod of time. These superior tools empower them to analyze and test our

designsvirtually, enabling them to speed up their manufacturingprocesses andreduce our time-to-

market.

Their in-house, specializedpredictive testing facilities allow them to conduct high-end tests on our

Tyres, making itpossible for them to predictperformance withoutsubjecting the Tyres to rigorous

on-field tests.

Their research and testing initiativesgive them a sharp technological edge over theircompetitors,

and empower them to manufacture new-generation products thatkeeppace with the ever-evolving

Global market.

Achievements

Mian Tyre &Rubber Co. ltd. an illustrious name in Tyre industry isstriving hard to expand the scope

of Pakistans Tyres& Tubes exports around the globe. Accreditation from FPCCI, in the form ofExport

Trophy Awards, wouldserve as a milestone in achieving their ambitious objective. They are

determined to continuallyplay their leadingrole with pride, in order to earn greaterrespect for their

company andcountry. They have attained thisposition by offering high qualityproduct to

international customers.


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Vision & ission

Vision

To be the leader in tyre technology by building the Companys image through quality

improvement, competitive prices, customers satisfaction and meeting social obligations.

Mission

y To offer quality products at competitive prices to our customers.

y To endeavour to be the market leader by enhancing market share, consistently improvingefficiency and the quality of our products.

y To improve performance in all operating areas, so that profitability increases therebyensuring growth for the company and increasing return to the stakeholders.

y To create a conducive working environment leading to enhanced productivity, jobsatisfaction and personal development of our employees.

y To discharge its obligation to society and environment by contributing to social welfare andadopting environmental friendly practices and processes.

P S


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Agricultural / ractor yresWe have developed a comprehensive range of tyresdesigned to suit all machines

and applications, providing the definitive response to the farmer's needs.

Forklift yresWe offer wide range of tyres of forklift tyres which are cost effective anddependable in the longrun.

LTVand JeepTyresHaving a comprehensive infrastructural set up and a pool of technically trainedmanpower, we are manufacturing and exporting a comprehensive range of jeep

tyres.

MotorcycleTyresThe capability of modern motorcycle tyres is extraordinary, with tyre technologymaking enormousstrides over the last few years. Ordinaryroadriderscan nowbuystock tyres that offer levels ofgrip andcontrol.Moped / ScooterTyresOur moped / scooter tyre range excels in terms ofgrip , durability , strength andversatility . They're particularly well suited to the latestgeneration ofscootersandsmall motorcycles.


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Three Wheelers / ickshawtyresWe are manufacturing economical, durable & innovative Three Wheeler Tyres to

meet the standards of our assemblers anddealers. Thisreflects ourdynamic&progressive approach backed up with excellentresources.

TubesButyle and natural rubber tubes of all sizes.


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Facts:

No.ofEmploB C C

s:

Managerial Staff: 120

Workers: 1800

Tu D novC

DRatio:

Executives: Less than 1%

Workers: 5%


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HRSystem of Mian Tyre &Rubber Co. Ltd.

Mian Tyre & Rubber Co. Ltd. has a separate department to manage the human resource

of the organization that is responsible to systematically reviewing human resource

requirements to ensure that required number of employees, with the required skills is

available when needed. They prefer the internal employees for the recruitment over the

external recruitment and a forecast for the supply of HR within the organization. They

use skills inventory for middle management and they use replacement charts for

operational level employees.

Functions of HR department:

1. Recruitment2. Selection3. Retention4. Retrenchment (Firing)1.Recruitment in Mian Tyre & Rubber Co. Ltd.

Mian Tyre & Rubber Co. Ltd. has got very flexible culture and it believe in outsourcing its

recruitment process. Moreover it uses either the electronic media or the print media

advertise its vacancies. However exceptions and they sometimes recruit peoples from

educational institutions.

They are following EEO and AA strictly as they do not discourage in any department. And

exceptionally they use university recruiting as for their external recruitment.

They are following the internal recruitment method and for this purpose they do job

posting.


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Job Advertisement by Mian Tyre & Rubber Co. Ltd.

Manager Commercial / Material ManagementStatus: Closed, Posting Date:20-Jun-2010, Location:Lahore

Company Name: Mian Tyre and Rubber Co Ltd

The Company is looking for young dynamic, result oriented and self-motivated individuals who are

eager to perform in a competitive business environment Current...more

Deputy Manager AccountsStatus: Closed, Posting Date:20-Jun-2010, Location:Lahore




Assistant Manager/Incharge Taxation (Accounts)Status: Closed, Posting Date:20-Jun-2010, Location:Lahore




Assistant Manager FinanceStatus: Closed, Posting Date:20-Jun-2010, Location:Lahore




Audit SupervisorStatus: Closed, Posting Date:20-Jun-2010, Location:Lahore




Audit AssistantStatus: Closed, Posting Date:20-Jun-2010, Location:Lahore





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7. Placementonthe job

6. Final Selectionby line mangers

5. Screeningbythe HRdepartment

4. BackgroundinU estigations

Like everyotherorganizationMianTyre &RubberCo.Ltd. also wishesto ensure

thatithiresrespectable andreputable employeesforthisreasonitinvestigates

the pastrecordofeach andevery employee before the final selection.

3. Panel interview:

They conductunstructuredpanel interviewsofthe eligible employees.

2. Preliminaryinterviews

Preliminaryis conductedfrom individualheadedbythe assistant HR manager.

1.Receivingthe CVs

Theyonly acceptin personCVs,theydonot entertain e-mailsor via

postCVs.

2.Selection in Mian Tyre & Rubber Co. Ltd.They select people on the basis of their qualification and skills in order to meet the

strategic business goals of their business. They also strictly follow the EEO and AA

policies during the selection process.

Steps in Selection Process of Mian Tyre & Rubber Co. Ltd.


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3.Retention in Mian Tyre & Rubber Co. Ltd.Mian Tyre & Rubber Company arranges annual dinners and different sports event and

they have also introduced an award ceremony known as employees performance

awards. They arrange monthly dinners for the middle management staff.

For retaining the employees they have introduced certain bonuses and incentives. Such

that they have provided housing, health insurance, education allowance, maternity

allowance and the company also pay some percentage of the utility bills. The incumbents

are also paid 65 % of the total income earned in three months as quarterly bonuses.

Once in a year they get a free pair of tyres for their vehicle with a fixed price range from

any outlet of Mian Tyre & Rubber Co. Ltd. The mangers are provided with all the up

listed facilities with an exception of a car fuel is financed is financed by the company.

4.Retrenchment in Mian Tyre & Rubber Co. Ltd.

Mian Tyre & Rubber Co. Ltd. hire the person who have the skills and ability to do work

for a long time .They mainly fire people on the serious breach of agreement, misconduct,

punctuality and upon not achieving their given targets and once the management has

decided to fire a person they give one month prior notice to the respective employee and

once the employee is fired can never be hired again moreover they do not conduct any

exit interview. They do not believe in extending the outplacement facility to their

employees.


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Performance Management System of Mian Tyre &Rubber Co. Ltd.

Performance:

The way in which something functions. The efficiency in which something reacts to or competes its

intended purpose.

Performance can be defined as the success in meeting pre-defined objectives, targets and goals.

Management:

Managementisthe act of managing something.

Organization and coordination of the activities of an enterprise in accordance with

certain policies and in achievement of clearly defined objectives.

Performance Management:

Performance Management is a goal-oriented process directed toward ensuring that organizational

processes are in place to maximize productivity of employees, teams, and ultimately the

organization.

The field of performance management can comprise two separate types of management.In one aspect of performance management, an analyst may view the performance of a

company as a whole, and also evaluate the effectiveness of the managers and heads of

companies in reaching goals. In another sense, performance management may be a

system of evaluating employees to help them reach reasonable goals and thus ensure that

the company performs better. This discussion will focus on the latter definition.

The larger process of defining what employees should be doing, ongoing communicationduring the year, linking of individual performance to organization needs, and the

evaluating of appraising of performance.

Definitions of Performance Appraisals

The assessment of an employee's effectiveness, usually as undertaken at regular intervals.

Performance appraisal is the process of obtaining, analyzing and recording informationabout the relative worth of an employee. The focus of the performance appraisal is

measuring and improving the actual performance of the employee and also the future

potential of the employee. Its aim is to measure what an employee does.


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A Process by which a manager or consultant (1) examines and evaluates an employee'swork behavior by comparing it with preset standards, (2) documents the results of the

comparison, and (3) uses the results to provide feedback to the employee to show where

improvements are needed and why. Performance appraisals are employed to determine

who needs what training, and who will be promoted, demoted, retained, or fired.

The regular (usual annual) process where an employees performance for the year isassessed by manager and/or employee. It is only one part of the performance

management approach. Usually means the same as "performance review".

Personnel evaluation method seeking the measurement of employee work effectivenessusing objective criteria. Performance appraisal systems hope to achieve higher productivity

outcomes by delineating how employees meet job specifications. A major challenge for

performance appraisal systems is to define performance standards while maintaining

objectivity.

Performance appraisal (PA) is one of the important components in the rational and systemic

process of human resource management. The information obtained through performance appraisal

provides foundations for recruiting and selecting new hires, training and development of existing

staff, and motivating and maintaining a quality work force by adequately and properly rewarding

their performance. Without a reliable performance appraisal system, a human resource

management system falls apart, resulting in the total waste of the valuable human assets a

company has.

There are two primary purposes of performance appraisal:

1. Evaluative2. Developmental1. The evaluative purpose is intended to inform people of their performance standing.

The collected performance data are frequently used to reward high performance and to

punish poor performance.

2. The developmental purpose is intended to identify problems in employees

performing the assigned task. The collected performance data are used to provide

necessary skill training or professional development.

The purpose of performance appraisalmust be clearly communicated both to raters and

ratees, because their reactions to the appraisal process are significantly different depending on the

intended purpose. Failure to inform about the purpose or misleading information about the

purpose may result in inaccurate and biased appraisal reports.


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Critical Criteria of Developing a PA System

In order for performance appraisal information to be useful, the PA system must be able to

consistently produce reliable and valid results. Measurement items in the performance appraisal

system must be designed in such a way that the results of rating are consistent regardless of the

raters and the timing of the assessment.

Another critical criterion in developing a PA system is the validity of the measurements. It is

important to make sure that the appraisal items are really measuring the intended performance or

target behavior. If they are not, the PA system encourages the wrong kind of work behaviors and

produces unintended, frequently negative, organizational outcomes. For instance, if the number of

traffic violation tickets issued is an item in performance appraisal of police officers, it encourages

them to sit on a corner of a street and pull over as many violators as possible during heavy traffic

hours. The true purpose of a police force, which is public safety, may become secondary to issuing

a large number of tickets for many officers.

What to Evaluate in performance Appraisal

The first important step in developing a PA system is to determine which aspects of performance

to evaluate. The most frequently used appraisal criteria are traits, behaviors, and task outcomes.

Traits. Many employees are assessed according to their traits, such as personality, aptitudes,

attitudes, skills, and abilities. Traits are relatively easy to assess once a rater gets to know ratees.

But traits are not always directly related to job performance. Trait-based assessment lacks validity

and thus frequently raises legal questions.

Behaviors. For many jobs, performance is so broadly defined or so conceptual in nature such as

ensuring public safety in the police departmentthat it is hard to come up with reliable

performance measures. In such cases, desirable behaviors can be identified and assessedin the

belief that such behaviors lead to successful performance. Such behavior-focused assessment

encourages employees to adopt desirable behavioral patterns in the workplace.

Task outcomes. When information about task outcomes is readily available, it is the mostappropriate factor to use in evaluating performance. When an organization has a clear and

measurable goal as in the case of a sales force, this approach is recommended. However, it has its

own pitfalls. There is a problem if employee behaviors are not directly related to the task out-

come. Too narrow a focus on measuring out-come only sometimes results in unintended negative

consequences. When sales staff narrowly focuses on target sales figures to increase their

performance measure, for example, they are encouraged to help a few large-volume customers

and to ignore many smaller buyers. This may result in poor customer service on the floor.


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Who Evaluates?

The most common raters of performance are employees' immediate supervisors, who are usually

in the best position to know and observe the employees' job performance. They are also

responsible for employees' work. Their evaluation is a powerful tool in motivating employees to

achieve successful and timely completion of tasks. However, as a result of working together over along time with the same employees, the immediate supervisor may build up a fixed impression

about each employee and use it every time he or she has to evaluate performance.

Some companies find that subordinates are in an excellent position to observe and evaluate their

managers' performance, especially when it comes to measuring effective management of their

department. While there is merit in asking subordinates to evaluate how they are managed, such

evaluation may turn into a popularity contest. Accurate and objective assessment may not be

obtained if employees are fearful of possible retaliation from their supervisors. Anonymity of the

evaluators is key to the successful use of subordinates for objective evaluation.

Other raters who are frequently used in some companies include peers, customers, and the

employees themselves. Peer evaluation is particularly useful when teamwork and collegiality are

important to successful task performance. Peer pressure is sometimes a powerful motivator in

encouraging teamwork among members. Customer satisfaction is vital to a company's success and

can be used in performance appraisal. Many companies systematically collect performance

information from customers, typically through anonymous surveys and interviews. Self-

assessment is also a useful means, especially when the performance appraisal is intended to

identify the training and development needs of potential employees.

Each of these raters contributes to assessing certain aspects of performance. Since job

performance is multidimensional in nature, it is important to use different raters or a combination

of multiple raters depending on the goal of a performance appraisal system. This multi-rater

evaluation, or so-called 360-degree feedback system, is becoming increasingly popular among

many American corporations, including General Electric, AT&T, Warner Lambert, and Mobil Oil.


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Performance Appraisals Methods

Mian tyre & Rubber Company Limited believes that in order to ensure the reliability and validity of

a PA system, a company must design the evaluation process carefully and develop appropriate

measuring scales. Among the many assessment methods developed by Human Resource

Management experts, commonly used ones include the

y MBO Management By Objective Methody 360-degree Performance Appraisal Methody Graphic Rating Scale,y Behaviorally Anchored Rating Scale,y Narrative Technique,y Critical-Incident Method,y Multi-person Comparison Method,y Forced Distribution Method

MBO Management By Objective Method

Specifying the performance goals that an individual and his or her manager agreethe employee will to try to attain within an appropriate length of time.

Key MBO Ideas

Employee involvement creates higher levels of commitment and performance. Employees are encouraged to work effectively toward achieving desired results. Performance measures should be measurable and should define results.


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The Graphic Rating Scale is the simplest and most popular method for performance appraisal.

As shown on Figure 1, the Graphic Rating Scale offers a list of areas related to job performance. A

manager rates each employee on the listed areas according to a numerical score. Althoughthis

method is relatively simple and quick to complete, some experts question its validity and

reliability. Without elaborate description, appraisal items and scores are subject to various

interpretations of raters.

The Behaviorally Anchored Rating Scale (BARS:

In order to overcome pitfalls of the Graphic Rating Scale, numerous other methods have been

developed. The Behaviorally Anchored Rating Scale (BARS), illustrated in Figure 2, offers

rating scales for actual behaviors that exemplify various levels of performance. Because raters

check off specific behavior patterns of a ratee, PA results of BARS are more reliable and valid than

those of the Graphic Rating Scale. Human resource managers must carefully analyze each job and

develop behavior patterns pertinent to various levels of performance for the job before they use

the BARS.

The Narrative Technique is a written essay about an employee's job performance prepared by arater. The essay typically describes the rate's job-related behaviors and performance. Without

standard performance description, it is a cumbersome task for raters to write an essay for several

employees. For example, a rater can be asked to describe the activities, achievements, and level

of performance of the employee in a completely open-ended format (unstructured narration).

Alternatively, the rater can be provided with some structure to use in the evaluation; for example,

"Describe briefly the activities, achievements, and level of performance of the staff member in the


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following areas:(p) work habits

q(

r) planning and organizing the tasks

q(3)management skills

q

comm s nications q and development of others t u

Similar to the Narrative Technique is the vw

x

y

x

n

x

n y

y h

, which involves keeping a

running log of effective and ineffective job performance. For example, the PA log of an employee,

Mr. Campbell, contains Unsatisfactory Incidents as follows:1/28/2000: "Refused to try a new workprocedure," and 2/15/2000: "Argued with a customer about the origin of error in the paperwork."

The log also contains Satisfactory Incidents as follows:1/20/2000: "Volunteered to help Charlie

complete his assignment in time";2/19/2000: "Trained new employees in safety regulations."

Th

ulti-personv

omparison

ethod asks raters to compare one person's performance with

that of one or more others. It is intended to effectively eliminate the possibility of giving the same

rating to all employees. In order to separate performance scores among multiple employees, the

Forced Choice or Forced Distri

ution Methods are adopted. Raters must choose one high

performer from the list of employees or distribute certain scores to employees at different ranks.

For example, only one top person will get 40 percent, two second-rank persons20 percent, andthe bottom one person 10 percent. The Paired Comparison Method is a special case of the Multi-

person Comparison Method. Everyone in the evaluation pool iscompared against everyone else as

a pair and recorded "plus" or "minus" when the target ratee is better or worse, respectively, than

his/her comparison. The final performance ranks are determined by the number of positives.

Forced Distri

ution


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Fig: Forced Distribution on a Bell-Shaped Curve

Subjectivity and Objectivity

Accuracy is critical to performance appraisal. In order to obtain accurate performance information,

raters must provide objective and unbiased ratings of employees. But, because it is almost

impossible to develop a perfectly accurate performance checklist, managers' subjective opinions

are frequently called for. Many companies use some combination of subjective and objective

assessment for actual performance appraisal.

Yet there are numerous problems in the actual assessment of employee performance, mainly due

to rater bias. Some raters tend to rate all employees at the positive end rather than to spread

them throughout the performance scale; this is called "leniency." Alternatively, "central tendency",

which places most employees in the middle of the scale, also raises concern about possible

appraisal error.

Another common error in performance appraisal is the halo effect. This occurs when a manager's

general impression of an employee, after observing one aspect of performance, influences his/her

judgment on other aspects of the employee's performance.

Researchers have found that personal preferences, prejudices, appearances, first impressions,

race, and gender can influence many performance appraisals. Sometimes raters' personal opinions

or political motives creep into the performance appraisal process. They intentionally inflate or


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deflate performance ratings of certain employees as a way to punish them or promote them out of

the department.

Using unreliable and invalidated performance appraisals may cause a legal problem. A number of

court cases have ruled that the performance appraisal systems used by many companies were

discriminatory and in violation of Title VII of the Civil Rights Act.

In order to avoid legal problems, companies must develop an appraisal system based on careful

job analysis and establish its reliability and validity. They must give clear written instructions to

raters for completing evaluations and provide them adequate training if necessary. The company

must allow employees to review the results of the appraisals. Human resources departments must

play a key role in the development and implementation of an effective performance appraisal

system. (http://appraisals.naukrihub.com/definition-concept.html)

Uses (Benefits) of Performance Appraisal

If appraisal is to be effective, staff must see the process attempting to meet their needs;

otherwise the system will not work. This means Heads of Department do need to form an overview

of the issues raised by their staff and if appropriate feed these into the planning process. Appraisal

should result in: Benefits for the individual:

Gaining a better understanding of their role

Understanding more clearly how and where they fit in within the wider picture

A better understanding of how performance is assessed and monitored

Getting an insight into how their performance is perceived

Improving understanding of their strengths and weaknesses and developmental needs

Identifying ways in which they can improve performance

Providing an opportunity to discuss and clarify developmental and training needs

Understanding and agreeing their objectives for the next year.

An opportunity to discuss career direction and prospects.

USES (Benefits) to the line manager/supervisor/team leader:

Opportunities to hear and exchange views and opinions away from the normal pressure of work

An opportunity to identify any potential difficulties or weaknesses

An improved understanding of the resources available

An opportunity to plan for and set objectives for the next period


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An opportunity to think about and clarify their own role

An opportunity to plan for achieving improved performance

An opportunity to plan for further delegation and coaching

An opportunity to motivate members of the team.

Uses (Benefits) to the organization:

A structured means of identifying and assessing potential

Up-to-date information regarding the expectations and aspirations of employees

Information on which to base decisions about promotions and motivation

An opportunity to review succession planning

Information about training needs which can act as a basis for developing training plans

Updating of employee records (achievements, new competencies etc)

Career counselling

Communication of information


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Incentive System of Mian Tyre &Rubber Co. Ltd.

Incentive System:

A scheme in which rewards are offered to managers or other employees conditional on certain

performance targets being met. Apart from cash bonuses, such rewards may include shares or

share options, health insurance, gym membership, or corporate entertainment.

Difference Between Salary &Incentive System

Salary is the fixed amount paid by the firm, whereas incentive is other than salary.

Example: Providing free education to the children of the workers, providing free health care

facilities for their family, etc. it is often in case of mine workers.

Compensation:

Skills based pay

Individual incentive plan

Employee compensation and incentive


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Critical Analysis on HRSystem of Mian Tyre &Rubber Co. Ltd.

The main purpose of the survey that was conducted at the Mian Tyre & Rubber Co. Ltd. was just to

analyze how the HR system and the Incentive System is being managed within the organization.

Mian Tyre & Rubber Co. Ltd. is following stringent policies for its HR system and it has not been

revised for years. I conducted the survey by using the following methods.

-Interviews

-Questioners

- Observation Method

I conducted the interviews with the middle management and the low level management. I used

the structured interview method while interviewing both the middle as well as the low level

management. As far as the middle management is concerned we interviewed all the relevant

employees that are included in the HR tribunal. My main purpose for conducting the interviews

was just to examine that how actually the HR department is managing the human resource of the

organization and what are the tools and the policies that are being implemented in order to

achieve the organizations strategic objectives. On some similar questions that asked from both of

the levels i was having conflicts e-g as per the interview with the HR manager we were told that all

the employees that are working directly on the machines are qualified with the matriculation

certificate but when i asked the same questions from the workers, i found that the statement of

the HR manager was totally conflicting the words that were said by the workers because almost

half of the total population of the workers in the production area have notbeen passed the

matriculation level. We also came to know about the turnover rate of employees that was 8 % per

annum. As per the interview with the HR manager of Mian Tyre & Rubber Co. Ltd. i came to know

that the organization has strong retention policy and they go into the bargaining with the workers

and employees for their retention and it is favourable for the organization.

We distributed few questioners among which half of the questioners were distributed among the

middle level employees and half were distributed to the low level employees. Only the close ended

questions were asked form both levels of management so that they can easily answer the question

and i can easily conclude the statistics without any ambiguity. The questioner method helped me a

lot to gather the real facts and figures regarding the management of Humanresource within the

organization e-g through using the questioner method i came to know about whether the

incumbents are satisfied by the HR system of the organization or not and more than 80% of the

workers were satisfied with the current HR system working in the organization. Through the


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questioner method i also came to know that on some questions the low level employees answers

were being conflicted with the middle level employees answers as. By this we can easily have an

idea that how far the HR system is being working properly within the organization. By analyzing

the statistics of the low level employees we can critically analyze the HR system of the

organization.

Critical Analysis on PA System and Incentive System of Mian Tyre &

Rubber Co. Ltd.

1. Performance Management is no properly implemented.2. There is no consistency in Performance Appraisal System.3. There are no strict rules for Incentives. Employees are granted incentives on the basis of

Tenure and Performance both.


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1.

2

3.


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4.

5.

6.


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7.

8.

9.


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10.

11.

12.


30/34


31/34


16.

17.

18.

Tyre


32/34


19.


33/34


Questionnai e

1. Doesthe o gani ation provide accommodationto emploj

ees?

Yes No

2. Doesthe organi k ation provide professional trainingtothe emplol

ees?

Yes No

3. Doesthe organi m ation provide Emergency fundtothe employees?

Yes No

4. Doesthe organin

ation provide Maternity allowance tothe wivesofthe employees?

Yes No

5. Doesthe organi o ation provide ealth Insurance tothe employees?

YesCompletely Not at all Yesto a limit

6. Whatsortofinterviewsdoesthe organi ation conduct?

Structured Un-Structured Both

7. Howoftendoesthe organi ationgive bonusesduring a year?

Once Twice Both

8. Whatsortofnon-cashbenefits are offeredto your employees?

Health Insurance

House Allowance

Education Allowance

All ofthe above


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9. What indofPerformance Appraisal Methodsdoesthe organi ationuse?

MBO Peer Evaluation SelfEvaluation

Supervisor Evaluation Subordinate Evaluation 360-Degree

10.Are youhappy withthe wor ing environment providedto you?

Yes No

11.Do youthinkthat compensation you receive is enough?

Satisfied Dissatisfied

12.Isbehavior ofthe manager is encouragingtowards labour demand?

Yes No

13.Are yousatisfiedwith your cafeteria?

Yes No

14.Are the employeesgivensome job rotation?

Yes No

15.Are yousatisfiedwiththe accommodation providedby the company?

Yes No

16.Doesthe company have updated equipmentsfor the tyre manufacturing?

Yes No

17.Do youhave proper fire fighters?

Yes No

18.Do youthinkthatthe company treatsits employees as an assets?

Yes No

19.Whattype ofculture doesthe company have?

Rigid Stereotype Flexible

Documents

Role of Incentives in Performance Management - PU Project