1. PERFORMANCE MANAGEMENT SYSTEM

There is an online Performance management system named “success factor” in Lupin Limited. Where employee fills and carry out performance related activity online through this web application called success factor.

The purpose of the PMS is to improve the company’s results through improved Performance planning Performance appraisals Compensation practices

Performance Management System Process Performance is reviewed every year from April to March Performance is linked with the workflow of each employee Letters are issued in the month of June of every calendar year Within forty-five days new joinee has to set the self targets after joining After employee sets his goals, progress review is done by the reviewer Performance is analyzed based on individual and job environment Overall employee performance is evaluated Salary is administrated. Training and Development plan is prepared to impart training based on performance

evaluation.

Performance appraisal is done as per the below rating scales

PSAP Performance Significantly Above PlanPAP Performance Above PlanPMP Performance Meets PlanPBP Performance Below PlanPSBP Performance Significantly Below Plan

Based upon the KRA’s assigned to each employee, each KRA is ranked on the adjoining scale as per the below matrix

Rating and its equivalent points Score range for “Overall Rating"

Rating Points Rating ScorePSAP Performance Significantly Above Plan 5 PSAP 451-500PAP Performance Above Plan 4 PAP 351-450PMP Performance Meets Plan 3 PMP 251-350PBP Performance Below Plan 2 PBP 151-250PSBP Performance Significantly Below Plan 1 PSBP 100-150

2. RESEARCH METHODOLOGYSnehal Patil | Masters of Labour Studies, B.E (Computers) 1

Type and Nature of Research: The present study is descriptive and quantitative in nature

Sampling Procedure:Sampling Frame- Employees of Lupin, Tarapur Sample Size- The sample size is 120

Sampling Method:Various Employees were selected from different departments on random selection under the random sampling method. It is impossible to use the census method to collect the information. Therefore, random sampling is done.

Areas covered:For this survey I have covered mostly all the departments of the organization- Lupin, TarapurFollowing are the number and name of departments.

Sr.No Department No. of Employees covered1. Quality Control 202. Purchase 83. Excise 44. MPP3 55. MPP5 56. CMPP 47. MPP8 158. MPP7 39. MPP6 610. Quality Assurance 511. PD Lab 2012. MPP2 913. Accounts 614. MPP9 615. OHC 4

Total 120

Snehal Patil | Masters of Labour Studies, B.E (Computers) 2

Sources of Data Collection:A self administered Questionnaire was used for data collection. Both closed ended and open ended questions were included in the study. The time constraints and various other factors were also kept in mind while framing the research methodology.

Analysis Method: Chi square test Analysis MethodIn general the chi square analysis is used when there is a need to examine the similarities between two or more populations or variables on some characteristics of interest. The reason for using chi square test is to make inference about the population variance. It is the test of homogeneity to study whether different departmental employees are similar in reference to some characteristic or attribute. It is used here for testing the independence to determine whether employee satisfaction or system effectiveness are related or independent.

Data Analysis and Interpretation:Data Analysis Tool- the Chi Square Test was used for interpretation of effectiveness of Performance Management System.

Data is analyzed from the set of questions prepared by me under the guidance of my mentor.

The questionnaire form was distributed to employee mentioned in the above table of various departments to give ratings

The employee has to rate each question on his degree of satisfaction

Ratings

1- Highly Satisfied2- Satisfied3- Average4- Dissatisfied5- Highly Dissatisfied

Snehal Patil | Masters of Labour Studies, B.E (Computers) 3

Question No 1: The appraisal system in this organization provides an opportunity for each appraisee to have a clear understanding of what is expected from him by his reporting Manager during the performance year

1 2 3 4 5

Snehal Patil | Masters of Labour Studies, B.E (Computers) 4

E1 1 E41 4 E81 1E2 2 E42 4 E82 3E3 1 E43 3 E83 1

E4 2 E44 2 E84 3E5 3 E45 2 E85 3E6 5 E46 2 E86 2E7 4 E47 2 E87 2E8 3 E48 2 E88 2E9 3 E49 3 E89 2E10 3 E50 3 E90 2E11 3 E51 2 E91 4E12 2 E52 3 E92 2E13 3 E53 2 E93 2E14 1 E54 3 E94 3E15 1 E55 3 E95 2E16 1 E56 2 E96 4E17 2 E57 4 E97 3E18 3 E58 4 E98 1

E19 2 E59 2 E99 2E20 2 E60 2 E100 4E21 2 E61 2 E101 4E22 2 E62 2 E102 1E23 2 E63 2 E103 2E24 2 E64 1 E104 1E25 1 E65 1 E105 2E26 5 E66 2 E106 2E27 2 E67 3 E107 1E28 3 E68 4 E108 2E29 2 E69 1 E109 4E30 2 E70 3 E110 4E31 3 E71 2 E111 2E32 2 E72 2 E112 2E33 2 E73 1 E113 3E34 4 E74 3 E114 2E35 2 E75 3 E115 4E36 3 E76 3 E116 2E37 2 E77 3 E117 3E38 3 E78 3 E118 3E39 3 E79 2 E119 1

Chi Square Test Analysis Hypothesis: Lupin employees are satisfied with the appraisal system which provides an opportunity to have a clear understanding of what is expected from him by his reporting Manager during the performance year.

Degree of Freedom (v) =n-1=5-1=4V=4, X2, 0.05=9.49(Tabulated)

Interpretation: The calculated value of X2 is less than the tabulated value. Hence, the hypothesis holds true. Conclusion: Lupin employees’ feels appraisal system is effective to have a clear understanding of what is expected from him by his reporting Manager during the performance year.

RatingsFrequency 18 52 34 14 2

Ei=120/5=24Oi Ei Oi-Ei (Oi-Ei)^2 (Oi-Ei)^2/Ei^218 24 -6 36 0.062552 24 28 784 1.36134 24 10 100 0.17314 24 -10 100 0.1732 24 -22 484 0.840

Total 2.6= X2

0

10

20

30

40

50

60

Degree of Ef-fectiveness

Question No 2: The appraisal system provides an opportunity for self review and reflection

1 2 3 4 5

Snehal Patil | Masters of Labour Studies, B.E (Computers) 5

E1 1 E41 4 E81 2E2 2 E42 3 E82 4E3 2 E43 4 E83 1

E4 3 E44 3 E84 3E5 1 E45 2 E85 4E6 5 E46 2 E86 1E7 2 E47 3 E87 1E8 3 E48 3 E88 3E9 2 E49 4 E89 3E10 2 E50 2 E90 2E11 3 E51 2 E91 4E12 1 E52 4 E92 2E13 2 E53 2 E93 1E14 2 E54 3 E94 2E15 1 E55 3 E95 2E16 3 E56 1 E96 4

E17 3 E57 4 E97 2E18 3 E58 3 E98 1E19 2 E59 2 E99 2E20 2 E60 2 E100 3E21 2 E61 2 E101 4E22 3 E62 2 E102 1E23 4 E63 2 E103 1E24 2 E64 1 E104 1E25 1 E65 1 E105 2E26 2 E66 1 E106 3E27 2 E67 4 E107 1E28 2 E68 3 E108 2E29 2 E69 2 E109 3E30 2 E70 3 E110 3E31 4 E71 2 E111 1E32 2 E72 1 E112 2E33 2 E73 2 E113 4E34 3 E74 3 E114 2E35 2 E75 2 E115 5E36 3 E76 2 E116 2E37 3 E77 2 E117 2E38 2 E78 2 E118 4E39 2 E79 2 E119 1E40 3 E80 1 E120 2

Total 282

Chi Square Test Analysis Hypothesis: Lupin employees are satisfied with the appraisal system which provides them an opportunity for self review and reflection reviews would be effective

Degree of Freedom (v) =n-1=5-1=4V=4, X2, 0.05=9.49(Tabulated)

Interpretation: The calculated value of X2 is less than the tabulated value. Hence, the hypothesis holds true. Conclusion: Lupin employees are satisfied and feel that appraisal system is effective for self review and reflection.

RatingsFrequency 22 53 28 15 2

Ei=120/5=24Oi Ei Oi-Ei (Oi-Ei)^2 (Oi-Ei)^2/Ei^222 24 -2 4 0.006953 24 29 841 1.46028 24 4 16 0.02715 24 -9 81 0.1402 24 -22 484 0.840

Total 2.47= X2

Highly S

atisfied

Satisfied

Average

Dissati

sfied

Highly D

issati

sfied

0

10

20

30

40

50

60

22

53

28

15

2

Degree of Effectiveness

3. COMPARATIVE DATA ANALYSIS

Snehal Patil | Masters of Labour Studies, B.E (Computers) 6

Question No Chi Square Test Score Weighted Average Score1. 2.6 2.42. 2.47 2.33. 1.92 2.34. 2.17 2.55. 2.75 2.46. 1.62 2.47. 1.96 2.48. 3 2.59. 2.24 2.510. 2.26 2.511. 1.9 2.912. 2.82 2.713. 2.77 2.614. 1.77 2.415. 2.23 2.516. 2.11 2.417. 1.95 2.418. 3.06 2.519. 3.95 2.520. 3.2 2.521. 2.74 2.4

Mean 2.45 2.47Median 2.26 2.5

The mean is the average The median is the middle of a the data

Note: Weighted Average Score is a total score divided by 120Example: Q.1 Total Score=290 Therefore, Weighted Average Score 290/120=2.4

57%

38%

5%

Degree of Effectiveness of the Performance Management System of Lupin

Highly SatisfiedSatisfiedAverageDissatisfiedHighly dissatisfied

Snehal Patil | Masters of Labour Studies, B.E (Computers) 7