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A PROJECT REPORT

ON

“AN ANALYTICAL STUDY OF PERFORMANCEMANAGEMENT SYSTEM AS A TOOL FOR EFFECTIVE

PERFORMANCE : A STUDY OF SELECTED EMPLOYEESIN VIJAYJYOT SEATS PRIVATE LIMITED (SAMSONS

GROUP OF COMPANY)”.

Submitted by

MR. IRSHADHUSEN INAYATHUSEN SHEKH

ROLL NO: HR4000094

in Partial Fulfillment for the Award of the Degree of

MASTER OF COMMERCE

(SPECIALIZATION IN HUMAN RESOURCE MANAGEMENT)

Under the Guidance of

Dr. Umesh R. DangarwalaAssociate Professor

Department of Commerce and Business Management

Faculty of Commerce

The Maharaja Sayajirao University of Baroda

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Vadodara

09TH MAY 2014

BONAFIDE CERTIFICATE

Date:_______________

This is to certify that this Project Report entitled “An Analytical Study of Performance

Management System as tool for effective performance: A study of selected employees in

Vijayjyot Seats Private Limited” which is to be submitted to the office of the Registrar

(Examination), The Maharaja Sayajirao University of Baroda, has been prepared by Mr.

Irshadhusen Inayathusen Shekh (Exam Seat No. HR4000094) as a partial fulfillment of

the award of the Master of Commerce Degree with specialization in Human Resource

Management for the Academic year 2013-14 for the evaluation in lieu of the Annual

Examination to be held in March/April, 2014.

He has carried out this work under my personal supervision and guidance.

(Signature of the Guide)

Dr. Umesh R. DangarwalaAssociate ProfessorDepartment of Commerce and Business ManagementFaculty of Commerce,The Maharaja Sayajirao university of Baroda,Vadodara.

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ACKNOWLEDGEMENT

At the outset, I would like to articulate this project as small journey which was a remarkablelearning experience for me. The successful completion of this project is only because of theextraordinary support, guidance, counselling and motivation from my respectable guides, staffof the M.S. University, and my organization. This journey was also could not be completedwithout support of my family and friends.

I firstly express my hearted thankfulness to Associate Professor and Project Guide Dr. UmeshR. Dangarwala in this project who made me felt his presence during all those crucial anddecision making moments this project went thorough. The deep insight in to the subject givenby him are believed the root caused in completing this project must qualitative and timely.

Also, I express my deep gratitude to Mr. Bhavin Helaiya & Manubhai Solanki (HRExecutives), my training officer and mentor for this project. Thorough the support providedby him, I have imparted knowledge on the avenues which this project have opened andexplored . His directions in making me think about unique conceptual and practical aspects ofPerformance Management System which has lifted this project at this stage of successfulcompletion.

I extend my gratitude to Vijayjyot Seats Private Limited and My Manager and all mycolleagues , friends for their encouragement, support, guidance and assistance for undergoingindustrial training and for preparing the project report.

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CERTIFICATE OF ORIGINALITY

Date:_______________

I, Mr. Irshadhusen Inayathusen Shekh (Exam Seat No. HR4000094), the undersigned

hereby declare that the project report entitled, “An Analytical Study of Performance

Management System as tool for effective Performance: A study of selected employees in

Vijayjyot Seats Private Limited” submitted in partial fulfillment for the award of the Master of

Commerce Degree with specialization in Human Resource Management for the Academic year

2013-14 for the evaluation in lieu of the Annual Examination to be held in March/April, 2014

is my own work and has been carried under the guidance of Dr. Umesh R. Dangarwala.

The work is an original one and has not being submitted earlier to this university or to any

other institution/ organization for fulfillment of the requirement of a course or for award of

any Degree/ Diploma/ Certificate. All the sources of information used in this Project Report

have been duly acknowledged in it.

(Signature of the Student)

Mr. Irshadhusen Inayathusen Shekh

Exam Seat No: HR4000094Master of Commerce (Specialization in Human Resource Management)Department of Commerce and Business ManagementFaculty of Commerce, The Maharaja Sayajirao University of Baroda,Vadodara.

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PREFACE

Today we are at the doorstep of 21st Century, competition at the various levels is increasingday by day. New and new developments are taking place and these days in all fields all overIndia to make the life of the people more comfortable a luxurious.

Those in order to survive in market on should practical as well as theoretical knowledge aboutall different fields existing market. In today’s competitive world edges is more significant thantheoretical knowledge. Today practical training and knowledge also plays an important role.

Master education brings its students in direct contact with the real corporate world thoroughindustrial training. The Master programmes provides its students with an in depth study ofvarious managerial activities that are performed in any organization.

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DECLARATION

I hereby declare that the entire work embodied in the Project Report entitled “An Analytical

Study of Performance Management System as a tool for Effective Performance at

Vijayjyot Seats Private Limited", has been carried out by me under the supervision and

guidance of Dr. Umesh R. Dangarwala, Associate Professor , Department of Commerce and

Business Management, Faculty of Commerce, The Maharaja Sayajirao University of Baroda,

Vadodara. The matter presented in this report incorporates the results of independent

investigations carried out by me. To the best of my knowledge, no part of this report has been

submitted for any Degree or Diploma to The Maharaja Sayajirao University of Baroda or any

other University/Institution in India or Abroad.

Date: 09/05/2014 Mr. SHEKH IRSHAD .I.Place: Vadodara

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TABLE OF CONTENTS

CHAPTER

NUMBER

TITLE OF THE CHAPTER PAGE

NUMBER

Bonafide Certificate

Acknowledgements

Certificate of Originality

Declaration

Student – Project Guide Interaction Report

1 INTRODUCTION : 9 to 24

1.1 History of Performance Management 10

1.2 What is Performance Management 11

1.3 Definitions of Performance Management 12

1.4 Aims of Performance Management 13

1.5 Principles of Performance Management 14

1.6 Concerns of Performance Management 15

1.7 Scope of Performance Management 15

1.8 Benefits of Performance Management 16

1.9 Defining Performance 17

1.10 Factors affecting Performance 17

1.11 Process for Managing Performance 18

1.12 Meaning of Performance Management System 18

1.13 Contribution of Performance Management System 21

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1.14 Disadvantages/ Dangers of Poorly implemented PMS 21

1.15 Characteristics of an Ideal PMS 22

1.16 Performance Review 23

1.17 Tips for Successful Performance Review 23

1.18 Successful Performance Review Conversation Needs 24

1.19 Different techniques of Performance Review 24

2 COMPANY PROFILE 26 to 32

3 REVIEW OF LITERATURE 33 to 42

4 RESEARCH METHODOLOGY 43 to 47

4.1 Title of the Research Study 444.2 Duration of the Research Study 444.3 Basic Terms of Present Research Study 444.4 Rationale of the Research Study 444.5 Scope & Coverage of Research Study 444.6 Objectives of Research Study 454.7 Research Design 454.8 Sources of Information 454.9 Sampling Design 454.10 Data Collection, Analysis & Interpretation 464.11 Significance of Research Study 464.12 Limitations of Research Study 46

5 DATA ANALYSIS & INTERPRETATIONS 48 to 92

6 FINDINGS, SUGGESSTIONS AND CONLUSION 93 to 96

BIBLIOGRAPHY 97

QUESTIONNAIRE 99

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CHAPTER -1 INTRODUCTION

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CHAPTER-1INTRODUCTION

1.1 History of Performance Management :

No one knows precisely when formal methods of reviewing performance were firstintroduced. According to Koontz (1971), the emperors of the Wei dynasty (AD 221-265)in China had an ‘Imperial Ratter’ whose task was to evaluate the performance of theofficial family. Centuries later, Ignatius Loyola(1491-1556) established a system for formalrating of the members of the Society of Jesus (the Jesuits).

The first formal monitoring systems, however, evolved out of the work of Federick Taylorand his followers before World War I. Rating for officers in the US armed services wasintroduced in the 1920s, & this spread to the UK, as did some of the factory-based USsystems. Merit-rating came to the fore in the USA & the UK in the 1950s & 1960s, whenit was sometimes rechristened performance appraisal. Management by objectives thencame & went in the 1960s & 1970s and simultaneously, experiments were made with thecritical incident technique & behaviourally anchored rating scales. A revised form ofresults-oriented performance appraisal emerged in the 1970s, which still exists today.

The first recorded use of the term ‘performance management’ is in Beer and Ruh (1976).Their thesis was that ‘performance is best developed through practical challenges &experiences on the job with guidance and feedback from superiors’. They described the

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performance-management system at Corning Glass Works, the aim of which was to helpmanagers give feedback in a helpful & constructive way, and to aid in the creation of adevelopmental plan.

The concept of performance management then lay fallow for some years, but began toemerge in the USA in the mid-1980s as a new approach to managing performance.However, one of the first books exclusively devoted to performance managements was notpublished until 1987(Plachy 1987). In the UK the first published reference to performancemanagement was made at a meeting of the Institute of Personnel Management (IPM)Compensation Forum in 1987 by Don Beattie, then personnel director, ICL, whodescribed how it was used as ‘an essential contribution to a massive & urgent changeprogramme in the organisation’ and had become a part of the fabric of the business. Fullrecognition of the existence of performance management was provided by the researchproject conducted by the Institute of Personnel Management (1992).

1.2 What is Performance Management ?

There are few comprehensive definitions of Performance Management. HM Treasurydescribe Performance Management as “Managing the Performance of an organisation orindividual”. Whilst this is not a precise definition grounded in literature it demonstrates thebreadth of performance management and hence the difficulties in defining its scope,activities and practices. It demonstrates that performance management is concerned withthe management of performance throughout the organisation and as a result is amultidisciplinary activity.

Further, in their Glossary of Performance Terms the Improvement Development Agency

further suggest that –

“it involves you understanding and acting on performance issues at each level of your organization, from individuals, teams and directorates, through to the organization itself.As well as involving performance measurement, systems and processes, performancemanagement is about managing people and ‘the way people within an organisationoperate and work together’. Issues such as leadership, decision making, involving others,

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motivation, encouraging innovation, and risk taking are just as important to bring aboutimprovement”.

This definition further demonstrates the breadth of the subject highlighting some of theactivities involved in managing performance, requiring a range of different skills andfunctional approaches. This provides challenges of terminology when we discuss thesubject. Academic research in particular tend to be undertaken in functional subject areasand often within organisations managers sit in functions and take a functional perspectiveon the subject of performance.

Despite this the clear multidisciplinary, the field of performance management hasdeveloped from diverse origins. Different measurement and management techniques andapproaches have developed independently. Financial and particularly managementaccounting have been concerned with measuring and controlling the financial performanceof organisations, operations have been concerned with “shop floor” performance oftenfocusing on improving throughput and efficiency whether that be from a manufacturing ora service perspective, strategy have been concerned with developing plans to deliver futureobjectives (including planned performance) and personnel (or HR) have been concernedwith managing the performance of people. It is relatively recently that performancemanagement from these disparate disciplines has begun to converge and recognise theneed for integration into a multidisciplinary approach to managing performance.

1.3 Definitions of Performance Management :

A r m s t r o n g ( 1 9 9 4 ) : -Performance management is a process for establishing shared understanding about what isto be achieved, and an approach to managing and developing people in a way whichincreases the probability that it will be achieved in the short and longer term.

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American Compensation Association (1996):-

An effective performance management system aligns individual performance with theorganisation’s mission, vision and objectives.

Armstrong & Murlis (1994):-

Performance management is a means of getting better result from the organization, teamsand individuals within and agreed framework of planned goals, objectives and standards.

Bitici, Carrie & McDevitt (1997):-

The performance management process is the process by which the company manages itsperformance in line with its corporate & functional strategies and objectives. The objectiveof this process is to provide a pro-active closed loop system, where the corporate andfunctional strategies are deployed to all business process, activities, tasks and personnel,and feedback is obtained through the performance measurement system to enableappropriate management decisions.

Lockett (1992) :-

The essence of performance management is the development of individuals with thecompetence and commitment, working towards the achievement of shared meaningfulobjectives within an organization which supports and encourages their achievement.

Hendry, Bardley and Perkins (1997) :-

A systematic approach to improving individuals and team performance in order to achieveorganizational goals.

IDS (1997) :-

A clear focus on how each employee can contribute to the overall success of theorganization lies at the heart of performance management systems.

IRS Management Review (1996) :-

Performance management is a way of translating corporate goals in to achievableobjectives that cascade down throughout the organization to produce optimum results.

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Philpott & Sheppard (1992) :-

Performance management aims to improve strategic focus and organizational effectivenessthroughout continuously securing improvements in the performance of individuals andteams.

Walters (1995) :-

Performance management is about ‘directing and supporting employees to work aseffectively as possible in line with the needs of the organization’.

1.4 Aims of Performance Management :-

The Basic Aims :-

Two simple propositions provide the foundation upon which performance management isbuilt :-

(1) When people (individuals & teams) know and understand what is expected of them,and have taken part in forming these expectations, they will use their best endeavoursto meet them.

(2) The capacity to meet expectations depends on the levels of capability that can beachieved by individuals and teams, the levels of support they are given by management, and the processes, systems, and resources made available to them by the organization.

These propositions imply that the basic aims of performancemanagement are to share understanding about what is to be achieved, to develop thecapacity of people and the organization to achieve it and to provide the support andguidance individuals and teams need to improve their performance.

Another way of putting the overall and performance management is thatit exists to establish a culture in which individuals and group take responsibility for thecontinuous improvement of the business process and of their own skills and contributions.It is about sharing expectations. Managers can clarify their expectations of what they wantindividuals team members and their teams as a whole to do, and individuals and groups cancommunicate their expectations of what they should be able to do, of how they should be

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managed, the support and resources they need and how their talent should be used. Theaim is to achieve consensus because, as Fletcher (1993) put it, ’our perceptions of what isreal and valid in the world depend on a consensus of shared beliefs.’ One of the aims ofperformance management could be expressed as being to clarify the psychologicalcontract.

Detailed Aims :-

In more details, the aims of performance management are two :-

(1) Help to achieve sustainable improvements in organizational performance.

(2) Act as a lever for change in developing a more performance oriented culture.

(3) Increase the motivation and commitment of employees.

(4) Enable individuals to develop their abilities, increase their job satisfaction and achievetheir full potential to their own benefit and that of the organization as a whole.

(5) Enhance the development of the team cohesion and performance.

(6) Develop the constructive and open relationship between individuals and their managersin a process of continuing dialogue which is linked to the work actually being donethroughout the year.

(7) Provide opportunities for individuals to express their aspirations and expectationsabout their work.

Aims Suggested by other Commentators :-

The American Compensation Association (1996) states that organizations rely onperformance management to :-

(1) Document job responsibilities.

(2) Help define performance expectations.

(3) Provide a framework for supervisors and employees to communicate with each other.

(4) Provide ongoing opportunities for supervisors to coach and encourage personaldevelopment.

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(5) Align individuals performance expectations with organizational goals.

(5).5 Principles of Performance Management :-

The principles of performance management have been well summarized by IRS (1996) asfollows:-

It translate corporate goals into individuals, teams, department and divisionalgoals.

It help to clarify corporate goals.

It is a continuous and evolutionary process, in which performance improves overtime.

It relies on consensus and cooperation rather than control on coercion.

It encourages self-management of individual performance.

It requires a management style that is open and honest and encourages to two-waycommunication between superiors and subordinates.

It requires continuous feedback.

Feedback loops enable the experience and knowledge and gained on the job byindividuals to modify corporate objectives.

It measures and assesses all performance against jointly agreed goals.

It should apply to all staff, and it is not primarily concerned with linkingperformance to financial reward.

Performance management should operate in accordance with the following ethicalprinciples as defined by Winstanely and Stuart- Smith (1996) :-

Respect for the individuals – people should be treated as ‘ends in themselves’and not merely as ‘means to other ends’;

Mutual respect- the parties involved in performance management processesshould respect each other’s need and preoccupations;

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Procedural fairness- the procedures incorporated in performance managementshould be operated fairly to limit the adverse effect on individuals;

Transparency- people affected by decisions emerging from the performancemanagement process should have the opportunity to scrutinize the basis uponwhich decisions were made.

(5)6 Concerns of Performance Management :-

Performance management is basically concerned with performance improvement in orderto achieve organizational, team and individual effectiveness. Organizations, as stated byLawson (1995), have ‘to get the right things done successfully’.

Secondly, performance management is concerned with employee development.Performance improvement is not achievable unless there are effective processes of thecontinuous development. This addresses the core competences of the organisation and thecapabilities of individuals and teams. Performance management should really be calledperformance and development management.

Thirdly, Performance management is concerned with satisfying the needs and expectationsof all organization’s stakeholders- owners, management, employees, customers, suppliersand the general public. In particular, employees are treated as a partners in the enterprisewhose interests are respected and who have a voice on a matters that concerns them,whose opinions are sought and listened to. Performance management should respect theneeds of individuals and teams as well as those of the organization, recognizing that theywill not always coincide.

Finally, performance management is concerned with communication and involvement. Itcreates climate in which a continuing dialogue between managers and the members of theirteams takes place to define expectations and shared information on the organization’smission, values and objectives. This establishes mutual understanding of what is to beachieved and framework for managing and developing people to ensure that it will beachieved. Performance management can contribute to the development of the high-involvement organization by getting teams and individuals to participate in defining theirobjectives and the means to achieve them.

(5)7 Scope of Performance Management :-

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Performance management is about managing the organization. It is a natural process ofmanagement, not a system or a technique (Fowler, 1990). It is a also about managingwithin the context of the business (its internal & external environment). This will affecthow it is developed, what is sets out to do and how it operates. The context is veryimportant, and Jones (1995) goes as far as to say ‘manage context, not performance’.

Performance management concerns everyone in the business- not just managers. It rejectsthe cultural assumptions that only managers are accountable for the performance of their

teams and replaces it with the belief that responsibility is shared between managers andteam members. In a sense, managers should regard the people who report to them as acustomers for the managerial contribution and services they can provide. Managers andtheir teams are jointly accountable for results and are jointly involved in agreeing whatthey need to do and how they need to do it, in monitoring performance & in taking action.

(5)8 Benefits of Performance Management :-

The benefits to the organisation, managers and individuals of well- conceived and well-runperformance management processes are summarised below :

For the Organisation :

� Align corporate, individual and team objectives.

� Improve performance.

� Motivate employees.

� Increase commitment.

� Underpin core values.

� Improve training and development process.

� Help to develop a learning organisation

� Enlarge the skill base.

� Provide for continuous improvement and development.

� Provide the basis for career-planning.

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� Help to retain skilled employees.

� Support total quality and customer service initiatives.

� Support culture- change programmes.

For Managers :

� Provide the basis for clarifying performance and behaviour expectations.

� Afford a framework for reviewing performance and competence levels.

� Improve team and individual performance.

� Support leadership, motivating and teambuilding processes.

� Provide the basis for helping underperformers.

� May be used to develop or coach individuals.

� Offer the opportunity to spend structured ‘quality’ time with teams and teammembers.

� Provide the basis for providing non-financial rewards to staff.

For Individuals :

� Greater clarity of roles and objectives.

� Encouragement and support to perform well.

� The provision of guidance and help in developing abilities and performance.

� Opportunities to spend ‘quality time’ with their managers.

� Opportunities to contribute to the formulation of objectives and plans and toimprovements in the way work is managed and carried out.

� An objective and fair basis for assessing performance.

(5)9 Defining Performance :-

If you can’t define performance, you can’t measure or manage it. It has been pointed outby Bates & Holton (1995) that ‘Performance is a multi-dimensional construct, the

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measurement of which varies, depending on a variety of factors.’ They also state that it isimportant to determine whether the measurement objectives is to assess performanceoutcomes or behaviour.

There are of course different views on what performance is. It can be regarded as simplythe record of outcomes achieved. On an individual basis, it is a record of a person’saccomplishments. Kane (1996) argue that performance ‘is something that the personleaves behind and that exists apart from the purpose’. Bernadin, Kane, Ross, Spina andJohnson (1995) are concerned that-

Performance should be defined as the outcomes of work because they provide thestrongest linkage to the strategic goals of the organisation, customer satisfaction, andeconomic contributions.

The Oxford English Dictionary defines performance as the ‘accomplishment, execution,carrying out, working out of anything ordered or undertaken’. This refers to outputs/outcomes, but also states that performance is about doing the work, as well as being aboutthe results achieved. Performance could therefore be regarded as behaviour- the way inwhich organisations, teams and individuals get work done. Campbell (1990) believes that‘performance is behaviour they can be contaminated by systems factors’.

A more comprehensive view of performance is achieved if it is defined as embracing bothbehaviour and outcomes. This is well put by Brumbrach (1988) :

Performance means both behaviours and results. Behaviours emanate from the performerand transform performance from abstraction to action. Not just the instruments forresults, behaviours are also outcomes in their own right- the product of metal andphysical effort applied to tasks- and can be judged apart from results.

1.10 Factors affecting Performance :-

Performance is affected by a number of factors, all of which should be taken intoaccount. These Comprise :-

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� Personal factors- the individual’s skill, competence, motivation and commitment.

� Leadership factors- the quality of encouragement, guidance and support providedby managers and team leaders.

� Team factors- the quality of support provided by colleagues.

� Systems factors- the system of work and facilities provided by the organisation.

� Contextual factors- internal and external environmental pressures and changes.

1.11 Process for Managing Performance :-

It has been well said by Mohrman and Mohrman (1995) that managing performance is‘running the business’. It is not a set of techniques and it is certainly not all about‘performance management systems’. Kermally (1997) believes that ‘performancemanagement should support corporate strategy formulation and monitor value drivers,i.e. those elements that really make the business profitable’.

If an all embracing or holistic approach to the management of performance is adopted,the following aspects of what makes organisations, teams and individuals perform wellmust be considered:

The context of the organisation.

Culture.

Functionality.

Job design

Teamwork

Organisational development.

Purpose and value statements

Strategic management.

Human resource management.

1.12 Meaning of Performance Management System :-

Performance management system (PMS) is the heart of any “people management

processes’’ in organization. Organizations exist to perform. If properly designed and

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implemented it can change the course of growth and pace of impact of organizations. If

people do not perform organizations don't survive. If people perform at their peak level

organization can compete and create waves. In the past organizations as well as the HR

function have wasted a lot of time by wrongly focusing on performance appraisals rather

than performance management.

Effective performance management requires:

Identifying the parameters of performance and stating them very clearly.

Setting performance standards.

Planning in participative ways where appropriate, performance of all

constituents.

Identifying competencies and competency gaps that contribute/hinder to

performance.

Planning performance development activities.

Creating ownership.

systematically deciding and communicating what needs to be done (aims,

objectives, priorities and targets)

a plan for ensuring that it happens (improvement, action or service plans)

some means of assessing if this has been achieved (performance measures)

information reaching the right people at the right time (performance reporting)

so decisions are made and actions taken.

A Performance Management System enables a business to sustain profitability and

performance by linking the employee’s pay to competency and contribution. It provides

opportunities for concerted personal development and career growth. It brings all the

employees under a single strategic umbrella. Most importantly, it gives supervisors and

subordinates an equal opportunity to express themselves under structured conditions.

Managing this process effectively isn't easy. It calls for a high level of co-ordination,

channelled information flow, and timely review. Whether employees are at a single place,

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or spread across multiple locations, the use of technology can help simplify the complete

process for more effective information management. Performance management could be

defined as it begins when the job is defined and ends when an employee leaves the

company. Between these points, the following should be understood for a working

performance management system :-

Developing clear job descriptions: Job descriptions are the first step in selecting the

right person for the job, and setting that person up to succeed Job descriptions provides

a framework so the applicants and new employees understand the expectations for the

position.

Selection: Jobs have different requirements. This is the process of matching the skills

and interests of a person to the requirements of a job. Finding a good job "fit" is

exceptionally important. Use of a selection process maximizes input from potential

co-workers and the person to whom the position will report.

Providing effective orientation, education, and training : Before a person can do the

best job, he or she must have the information necessary to perform. This includes

job-related, position-related, and company-related information; an excellent

understanding of product and process use and requirements; and complete knowledge

about customer needs and requirements.

Providing on-going coaching and feedback : People need ongoing, consistent

feedback that addresses both their strengths and the weaker areas of their performance.

Effective feedback focuses more intensely on helping people build on their strengths.

Feedback is a two-way process that encourages the employee to seek help.

Conducting quarterly or annual performance development discussions: If

supervisors are giving employees frequent feedback and coaching, performance reviews

can change from negative, evaluative, one-sided presentations to positive, planning

meetings.

Designing effective compensation and recognition systems : that reward people for

their contributions: The power of an effective compensation system is frequently

overlooked and downplayed in some employee motivation-related literature.

Providing promotional/career development opportunities for staff: The supervisor

plays a key role in helping staff develop their potential. Growth goals, changing and

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challenging job assignments and responsibilities, and cross-training contribute to the

development of a more effective staff member.

Assisting with exit interviews to understand WHY valued employees leave the

organization: When a valued person leaves the company, it is necessary to understand

why the person is leaving. This feedback will help the company improve its work

environment for people. An improved work environment for people results in the

retention of valued staff.

1.13 Contribution of Performance Management System :

There are many advantages associated with implementation of a performancemanagement system. A performance management system can make the followingimportant contributions :

(1) Motivation to perform is increased : Receiving feedback about one’s performanceincreases the motivation for future performance . Knowledge about how one is doing &recognition about one’s past success provide the fuel for future accomplishments.

(2) Self-esteem is increased : Receiving feedback about one’s performance fulfils a basichuman need to be recognized & valued at work. This in turn is likely to increaseemployee’s self-esteem.

(3) Managers gain insight about subordinates : Direct supervisors & other managers incharge of the appraisal gain new insights into the person being appraised. Also,supervisors gain a better understanding of each individual’s contribution to theorganization.

(4) The definitions of job & criteria are clarified : The job of the person being appraisedmay be clarified and defined more clearly. In other words, employees gain a betterunderstanding of the behaviours and results required of their specific position.

(5) Self-insight & development are enhanced : The participants in the system are likelyto develop a better understanding of themselves and of the kind of development activitiesthat are of value to them as they progress through the organization.

(6) Administrative actions are more fair & appropriate : Performance managementsystems provide valid information about performance that can be used for administrativeactions such as merit increases, promotions and transfer as well as terminations.

(7) Organizational goals are made clear : The goals of the unit and the organisation aremade clear, and the employee understands the link between what she does and

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organizational success. PMS can help improve employee acceptance of these widergoals.

(8) Employees become more competent : An obvious contribution is that employeeperformance is improved. In addition, there is a solid foundation for helping employeesbecome more successfully by establishing developmental plans.

1.14 Disadvantages/ Dangers of poorly implemented PM Systems :

(1) Increased turnover : If the process is not seen as fair, employees may become upsetand leave the organization. They can leave physically or with draw psychologically.

(2) Use of misleading information : If a standardized system is not in place, there aremultiple opportunities for fabricating information about an employee’s performance.

(3) Lowered self-esteem : Self-esteem may be lowered if feedback is provided in aninappropriate and inaccurate way. This in turn can create employee resentment.

(4) Wasted time and money : Performance management systems cost money and quite abit of time. These resources are wasted when systems are poorly designed andimplemented.

(5) Damaged relationships : As a consequence of a deficit system, the relationshipamong the individuals involved may be damaged, often permanently.

(6) Decreased motivation to perform : Motivation may be lowered for many reasonsincluding the feeling that superior performance is not translated into meaningful tangibleor intangible rewards.

(7) Employee burnout & job dissatisfaction : When the performance assessmentinstrument is not seen as valid and the system is not perceived as fair, employees arelikely to feel increased levels of job burnout & job dissatisfaction.

(8) Increased risk of litigation : Expensive lawsuits may be filed by individuals who feelthey have been appraised unfairly.

1.15 Characteristics of an Ideal PM System:

(1) Strategic congruence: The system should be congruent with the unit and organisation’sstrategy. In other words, individual goals must be aligned with unit and organizational goals.

(2) Thoroughness : The system should be thorough regarding four elements :all employeesshould be evaluated, all major job responsibilities should be evaluated, the evaluation shouldinclude performance spanning the entire review period, not just the few weeks or monthsbefore the review and feedback should be given on positive performance aspects as well asthose that are in need of improvement.

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(3) Practicality: Systems that are too expensive, time consuming and convoluted willobviously not be effective. Good, easy-to- use systems are available for managers to help themmake decisions.

(4) Specificity : A good system should be specific: it should provide detailed and concreteguidance to employees about what is expected of them an how they can meet thesee x p e c t a t i o n s .

(5) Identification of effective & ineffective performance : The performance managementsystem should provide information that allows for the identification of effective and ineffective performance.

(6) Reliability : A good system should include measures of performance that are consistentand free of error. For example, if two supervisors provided ratings of the same employee andperformance dimensions, rating should be similar.

(7) Validity : The measures of performance should also be valid. In this context, validity refersto the fact that the measures include all relevant performance facets and do not includeirrelevant performance facets.

1.16 Performance Review :

Everybody who works for you needs to know where they stand and how they are doingcompared to your expectations of them. Many companies have formal review systems tolet employees know how their performances stack up. Reviews may be conducted asoften as every three months, but annual reviews are most popular.

Each review should go over the goals that were set when the employee started the job orduring the last performance evaluation. Then the review should examine how well theemployee has done toward reaching these goals. The employee should be asked to ratehis or her performance, in addition to relying on objective measurements such as salesfigures. You and the employee should then discuss the desirability of trying to reachgoals that haven't yet been achieved, and you should both set goals for the future.

But reviews and evaluations are often justifiably viewed as little more than formalitiesthat accomplish little or nothing in the way of true feedback. To make formal evaluationsgo more smoothly, and to eliminate any surprises on the employee's part, give feedbackat the time something occurs to warrant it.

Formal performance reviews are a crucial part of the ongoing dialogue betweenmanagers and their employees. The objectives of the review conversation are to makesure that the employee and manager share a clear definition of the job, an understandingof performance expectations for the position, and an assessment of the employee'sperformance.

Properly designed and realized process of employee’s appraisal is not only the necessarybasis of successful employee performance management, but also provides valuable

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information for other human resource management functions. Performance Appraisal isimportant because it helps in Performance Feedback, Employee Training andDevelopment Decisions, Validation of Selection process, Promotions & Transfers,Layoff Decisions, Compensation Decisions, Human Resource Planning (HRP), CareerDevelopment and Develop Interpersonal Relationship.

1.17 Tips for Successful Performance Review :

Frequent Conversations Prepare Managers and Employees for the AnnualReview.

Keep Job/Position Descriptions Up-to-Date.

Document the Conversations.

Create a Reciprocal Process.

Start with a Self-Appraisal.

1.18 Successful Performance Review Conversation Needs :

� Careful planning by manager and employee.

� Constructive communication.

� Collaborative attitude.

� Openness to giving and receiving feedback.

� Commitment to "continuous improvement".

� High level of accountability—good follow-through on commitments made duringconversation.

� Openness to redefining or readjusting goals as needed (for the department and/orfor the employee).

1.19 Different Techniques of Performance Review :

Sr.No.

Technique Key Idea Advantages Disadvantages

1. Ranking Method

Ranking employees from best toworst on a particular trait,choosing highest then lowest,until all ranked

1. Fastest.2. Transparent.3. Cost effective.4. Simple & easy to use.

1. Less objective.2. Morale problems. whoare not rated at or near thetop of the list.3. Suitable for smallworkforce.

Graphic Rating

A scale that lists a number oftraits & a range of performancefor each, the employee is then

1. Simple.2. Easily Constructed.3. Easy to use.

1. Rating may besubjective.2. Each characteristics is

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2. Scale rated by identifying the bestscore that best describes his orher performance for each trait.

4.Reduce the personalbias.

equally important inevaluation of theemployee’s performance.

3. Critical Incident

Keeping a record ofuncommonly good orundesirable examples ofemployee’s work relatedbehaviour & reviewing it withthe employee at predeterminedtimes.

1. Easy & economic todevelop & administer.2. Based on directobservations.3. It is time tested &provides more face time.

1. Time consuming &laborious to summarize &analyze the data.2.Difficult to convincepeople to share theircritical incidents through asurvey.

4. Narrative Essays

Evaluator writes an explanationabout employee’s strength &weakness points, previousperformance, positional &suggestion for his or herimprovement at the end ofevaluation time

1. Report actually showsemployee’s performance.2. Can cover all factors.3. Examples are given.4. Provides feedback.

1. Time consuming.2. Supervisor may write abiased essay.3. Effective writers arevery difficult to find.

5. Management by

Objectives

Employees are evaluated how

well they accomplished a

specific set of objectives that

have been determined to

critical in the successful

completion of job.

1. Easy to implement &

measure.

2. Employee motivated

as he is aware of

expected roles &

accountability.

3. Facilitates employee

counseling & guidance.

1. Difficult to employees

agree on goals.

2. Misses intangibles like

honesty, integrity,

quality etc.

3. Time consuming,

complicated, lengthy &

expensive.

6. Behaviorally

Anchored Rating

Scale (BARS)

BARS combines elements from

critical incident & graphic

rating scale approach. The

supervisors rates employee’s

according items on a numerical

scale.

1. Job behavior describe

employee performance in

a better way.

2. More objective.

3. More acceptances due

to participation of

managers & employees.

1. Scale independence may

not be valid/reliable.

2. Behaviors are activity

oriented rather than result

oriented.

3.Very time consuming for

generating BARS.

4. Each job require

creating separate BARS

scale.

Employees are evaluated over a 1. Concepts are simple. 1. Expensive & difficult to

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7. Assessment

Centers

period of time; say one or three

days, by observing their

behaviors across a series of

selected exercises or work

samples.

2. Highly flexible

methodology.

3. Helps in selection &

promotion decisions and

for diagnosing employee

development needs.

4. Exercise is hard to

fake.

manage.

2. Requires a large staff.

3. Requires a great deal of

time.

4. Only a limited no. of

people can be processed at

a time.

8. 360 Degree

It relies on the input of an

employee’s, superior,

colleagues, subordinates,

sometimes customers, suppliers

and/or spouses.

1. Excellent employee

development tool.

2. Accurate, reliable &

credible system.

3. Legally more

defensible

4. More objective being

multi-rate system.

1. Time consuming & very

costly.

2. Sensitive to

organization & national

culture.

3. May damage

self-esteem of employees

if the feedback is brutal.

4.Difficult to implement in

cross-functional teams.

5.Prone to political &

social games played by

people.

CHAPTER- 2

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COMPANYPROFILE

CHAPTER –2COMPANY PROFILE

The two Iron-men, in its true pioneering spirit, contemplated the manufacture of ArtificialLeather in 1954 and initiated manufacturing of Artificial Leather cloth in Malad, Mumbai andmarketing it all over the country through Ahmedabad, Bangalore, Kolkata and Chennai.In 1962 a plot was acquired at Kandivli, Mumbai and the manufacturing base was shifted hereby the name of The National Leather Manufacturing Company (NLC). They importedDornbusch coating lines and the best quality of Artificial Leathercloth became a reality!The years passed by and there was no looking back as the Group was growing in leaps andbounds. It was just a beginning for the team which was later strengthened when Late Shri.Gandalal’s son, Late Mr.Kantilal Shah and Late Mr.Amrutlal Motasha joined the business.

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Later, Mr.Arvind Motasha, son of Late Mr.Vadilal Motasha also joined and the team wasfurther strengthened.

DIFFERENT COMPANIES OF SAMSONS GROUP :

About VinyRoyalPlasticoates Private Limited (VPPL) :-The pioneering entrepreneur of the group started the flagship company NLC in 1962. It isengaged in manufacturing of Artificial Leathercloth and is one of the largest manufacturers inthe world with installed capacity of 13.5 million square meters with 3 Coating lines.Infrastructure :- Specializes in Manufacturing PVC artificial leather to various Indian and International

standards for automobile seat upholstery and trims. Collection of designs in natural leather like grains and fabric type patterns in a wide range of

colours. Choice of PVC Artificial, Leather with knit, woven and non woven backing fabric to suit a

range of end users. A well equipped laboratory for testing raw material and the finished products. Modern and

well laid out plant for production and storage.

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About Joyride :-Joyride seat covers made from superior grade of leather cloths, Joyride offers better protectionfrom harsh UV rays and keeps the seats cooler. The product is specially designed for Indianclimate keeping in mind essential factors such as heat management, durability, environmentand the value for money.Durability and long life :-Joyride offers all weather protection and comes with 3 years warranty.

About Royal Cushion Vinyl Products Ltd. :-Royal Cushion Vinyl Products Ltd. has two plants spread across 130 acres of land, at Garadia,Halol, Gujarat, for manufacturing of Vinyl Floorings of different types for various end-usersand Rigid Films. RCVPL caters to customers in over 40 countries worldwide.Quality Policy :-To achieve customer satisfaction by providing international quality products in all our productranges.

About Vijayjyot :-Vijayjyot seating components division is leading components manufacturer for Metro, Bus,Car, Cinema and Auditorium seats. The product line includes fabrication of Metal Frames (MSand SS), Polyurethane (PU) Foam and Upholstery / Trim Covers. We also manufacture andsupply fully assembled Railway seats.Its seating components division provides one-stop solution to customers from designinception, proto-type sample, product development to commercial supplies. Facilities includeDesign center, Tool room, Weld shop with advanced technology like Multi Axis BendingMachine, Cutting & Sewing Machines and PU Machines. The plant is located in Halol, nearVadodara in state of Gujarat, INDIA.

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About Royal Knitting :-Initially Royal Knitting Pvt. Ltd [RKPL] established in 1983, produced knitted fabrics to meetthe in-house requirements for leather cloth backing, for our sister concern - National Leathercloth Mfg. Co. and Vinyroyal Plasticoates Pvt. Ltd. Today RKPL’s installed capacity stands at175 tones/month of circular knitted fabrics and 20 tones/month of warp knitted fabrics.Only 30% of the capacity is utilized to make supplies to group company, 50% supplies aremade to other local Artificial Leathercloth manufacturers & exports and remaining 20%supplies go to OE customers such as Melba, Faze 3, Reliance, Shamkeen. In OE the fabric isapplied for back scrim application in automotive upholstery.Production facility consists of 28 circular knitting machines (Single Jersey, Terry, Interlock) ofMayer & Cie make, 4 Orizio make, 2 Taifan make and 1 Fukuhara.Warp Knitting machines of Karl Mayer; of which 2 are KS-3 and 1 HKS-3M.Raising machine of Daintipaolo. Future plans include setting up of in-house dyeing & finishingline.

VIJAYJYOT COMPANY OVERVIEWVijayjoyt is leading manufacturer and marketer of automotive, cinema / auditorium, bus &railways seating systems of India. Its products are marketed under the brand nameVIJAYJYOT. They are 2 decades old company in seating system having clienteles at home(India) and abroad.

Design & Development Facility :-

Its design & development facility is located in plant in Baska, near Baroda, Gujarat and plantin Pune, Maharastra. They have state of art of technology development centre where 20dedicated engineers/ staff are involved in development of new products and applications roundthe clock for various segments of seating systems. They are an ISO/ TS 16949:2000 certifiedcompany.

Its People :-

Their main focus is future growth of company lies with its human resource people. Thehuman skills are updated with training inputs on a regular basis and also have a

HR practices in our organisation. Our top management is involved in HR policy within theorganization, that a clear indication that we are people performance organization.

Marketing & Distribution :-

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They have a very wide spread sales and marketing network covering 4 regions of the country.Our representation is very strong even in overseas market like Middle East, Russia, Europeand North America. After sales service to all our customers are being monitored in the form ofCustomer Satisfaction Index. This is to assess and improve various parameters of serviceswithin our setup on the basis of customer's feedback.

Its group :-

The journey of samsons group started way back in 1932 by the confluence of two familiesShahs' and Motashas' in the form of small trading house. Subsequently, National Leatherclothwas in 1954, Royal Knitting (fabric) in 1978 & Vijayjyot Seats Pvt. Ltd. ( VSPL) in 1989.Group turnover is around Rs. 200 crores (U$ 45 MIO).

INDUSTRIAL CERTIFICATION

Verification Type: Third-party verification service provider

Company Name: VIJAYJYOT SEATS PVT LTD

Country/Territory: IndiaRegistered Address: 60 CD, "SHLOK"GOVT. INDUSTRIAL

ESTATE,CHARKOP, KANDIVLI (WEST), Mumbai,Maharashtra, India Zip: 400067

Legal Form: Private OrganizationRegistration No.: 053554Issuing Authority: Ministry of Corporate AffairsDate of Issue: 1989-09-20Applicant InformationName: Suvrat Mahesh ShahJob Title: CEO

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Product Categories :

Artificial Leather PVC Leather Leather Rexine Cloth Cloth Cloth Cloth

PVC Artificial Artificial Leather PVC Textile Automobile Seats Leather Cloth Cloth 2 Leather Cloth Vinyl

PVC Coated Upholstery PVC Foam Leather PVC Synthetic Fabric Vinyl Cloath Leather

Cinema Debonair Leisure Slumfort Leisure Plus

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CHAPTER -3REVIEW OF

LITERATURE

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CHAPTER -3REVIEW OF LITERATURE

Study by DDI (1997), Performance Management Practices is the most recentperformance management study. It proves that successful organizations realize thatperformance management is a critical business tool in translating strategy into results.The CEOs in the majority of the 88 Organizations surveyed say their performancemanagement system drives the key factors associated with both business and culturalstrategies. Performance management systems directly influence five criticalorganizational outcomes : Financial performance, productivity, product or servicequality, customer satisfaction & employee job satisfaction. When performancemanagement systems are flexible & linked to strategic goals, organization are morelikely to see improvement in the five critical areas : team objectives, non- managertraining, appraiser accountability & links to quality management are the specificpractices most strongly associated with positive outcomes.

Watkins (2007) puts it, most public sector business organization like those in DeltaState of Nigeria have not given adequate attention to performance management reviewas a tool for improving performance even when recent studies suggest thatperformance review benefit organizational performance in both private & publicsectors. Performance management has been described as a systematic approach to themanagement of people, using performance goal measurement, feedback andrecognition as a means of motivating them to realize their maximum potentials. Publicsector business organizations that strive to deliver quality services at competitiveprices are those that embrace various performance review practices to assess theiremployee performance & motivate them with incentives.

Robert & Angelo (2001), The success or failure of public sector business organizationsdepends on the ability to attract, develop, retain, empower & reward a diverse array ofappropriately skilled people and is the key to improving organizational performance.The explanation therefore is that human resource managers in the public sectorbusiness concerns should embark on periodic performance management reviews oftheir employees in order to re-position their business organizations though owned bygovernment for better performance & improved competitiveness.

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Study by Wm. Schiemann & Associates (1996), this national survey of cross-sectionof executives concluded that measurement-managed companies- especially those thatmeasure employee performance- outperform those that downplay measurement.

These research studied 122 organizations making between $27 million and $50 billionin sales. A higher percentage of measurement-managed companies were identified asindustry leaders, as financially in the top third of their industry, and as successfullymanaging their change efforts. The research examined performance in six strategicperformance areas deemed crucial to long-term success : Financial performance,operating efficiency, customer satisfaction, employee performance, innovation/change,community/environment. The findings revealed that the biggest measurement areaseparating successful from less successful firms is employee measurement. Successfulindustry leaders simply do a better job than non-leaders at measuring their workforce,which the study say is where real change won or lost.

Study by Hewitt Associates (1994), The impact of performance management onorganizational success substantiates that performance management system can have asignificant impact on financial performance and productivity. The study used theBoston Consulting Group/HOLT financial database to track the financial performanceof 437 publically held U.S. companies from 1990 through 1992.The study resultsshowed that: Companies with performance programs have higher profits, better cashflows, stronger stock market performance and a greater stock value than companieswithout performance management. Productivity in firms without performancemanagement is significantly below the industry average, while productivity in firmswith performance management is on par with the industry average. Companies withperformance management significantly improved their financial performance andproductivity after implementing performance management.

Williams (2002) identifies globalization, increased competition and the increasinglyindividualistic rather than collective employee relationship as some of the major driverscontributing to the increased visibility of performance management systems (PMS).Faced with fast moving and competitive environments, companies are constantly

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searching for unique ways in which to differentiate themselves from their competitionand are increasingly looking to their “human resources” to provide this differentiation.This has led to much interest in the performance of employees, or more importantly,how to get the most out of employees in order to sustain competitive success.

The study by Eleni T. Stavrou, Christakis Charalambous and Stelios Spiliotisutilizes an innovative research methodology (kohonen’s Self-organizing Maps (SOMs),Neural Network Analysis) to explore the connection between human resourcemanagement as a source of competitive advantage and perceived organizationalperformance in the European Union’s private and public sectors. While practices inthese two sectors did not differ significantly, three diverse but overlapping HRMmodels did emerge, each of which involved a different set of EU member states.Training & Development practices were strongly related to

performance in all three models and communication practices in two. These resultsshow the usefulness of an innovative technique when applied to research so farconducted through traditional methodologies, and brings to the surface questionsabout the universal applicability of the widely accepted relationship between superiorHRM and superior business Performance.

Sharmistha Bhattacharjee and Santoshi Sengupta (2011) studied that employees arethe most valuable and dynamic assets of an organization. For achieving the strategicobjective of sustained & speedy growth, managing human resource has been featuredas a vital requirement in all organizations. It is a challenge to monitor the entire cycleof defining the competence requirement of the business, accessing existing competencein the organization and bridging the gap between the two. HR practices are crucial forany organization. Every phase from recruitment to exit interview is under the HRdepartment. It is a challenge to monitor the entire cycle of defining the competencerequirement of the business, accessing existing competence in the organization andbridging the gap between the two. In a manufacturing industry, with every technicaladvancement business opportunities can show up. These opportunities can beconverted into business success only with performance alignment and competencemanagement.

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The research paper of Mohammad Tanvi Newaz (2012) provides an analysis andevaluation of the role of performance management system in shaping psychologicalcontract at Sainsbury’s UK by a case study approach. Sainsbury’s has adopted theperformance management system to utilize the potential of their employees but resultof data analysis indicates that line managers have failed to achieve the objective of theperformance management system. This research analysis reveals how the line managersof Sainsbury’s focus on short term goal i.e. financial success instead of long term goali.e. employee development. However, the performance management system ofSainsbury’s comprises all the necessary components to play a significant role indeveloping employees as well as facilitating the formation of a positive psychologicalcontract. But partial and inattentive implementation of the system makes the situationunfavourable for the psychological contract to develop at Sainsbury’s UK.

The article of Javed Iqbal , Samina Naz, Mahnaz Aslam, Saba Arshad (2012), offersa survey of selected literature on performance management. Purpose is to identify keythemes that govern the topic in the contemporary turbulent economic and businessenvironment where employees are more uncertain that anything else because every daythey face downsizing, volunteer retirement and “golden hand shakes’’ to get rid ofthem. Under these circumstances it is worthwhile to look into the ways by which theycan be motivated to work under hard conditions. It is found that performancemanagement processes, evaluation, its impact and factors are key themes. Researchersapply popular research approaches for data collection analysis and communication.

The paper of Akua Asantewaa Aforo and Kodjo Asafo-Adjei Antwi (2012) showsthat academic libraries have a performance appraisal system comprising setting ofgoals, feedback, participation and incentives for performance. This study aimed atevaluating the performance appraisal system in the KNUST and GIMPA libraries inGhana and give recommendations on improving the system. Questionnaires wererandomly administered to 46 staff members of these libraries.

The aim of this study of Akinyele S. T. (2010) was to evaluate the effectiveness ofperformance appraisal system at private universities in Nigeria. The focus of the studywas on the administrative staff of Crawford University. The study evaluated thepurpose of performance appraisal in private universities and identifies relevant factorsfor achieving an effective performance appraisal. A cross- sectional survey wasselected for this study because it was easy to undertake compared to longitudinalsurvey and the results from the same can be inferred to the larger population. The

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study population was for all the administrative staff of Crawford University. The wholepopulations of staff were selected as respondents. A structured questionnaire was usedto collect the data for analysis. The effectiveness of performance appraisal systems inprivate universities are only based on training the members of staff involved in therating/ appraising process and are multi- rating systems. Conclusively because theperformance appraisal systems used in private universities are not effective and thatthey exist just as a matter of formalities, the private universities cannot measuremembers of staff performance, hence making it difficult to achieve the intended humanresource management objective.

The paper of Al Bento and Regina Bento (2006) proposes and tests a model toexplain three critical outcomes of Performance Management Systems: informationquality, effectiveness, and usefulness of the PMS to managerial decision-making.Drawing from Organizational Information Processing Theory (OIPT), we examinedhow those three outcomes may be influenced by factors that affect OIP requirements(industry, size, and geographic scope of operations) and by organizational andtechnological factors that affect OIP capabilities. Organizational factors includedmanagement's decision-making style and organizational structure. Technologicalfactors included the types of technology used in the PMS (ERP; specialized tools suchas EIS and DSS; and generic tools such as Excel, Access and Lotus Notes), and thedegree of use of e-commerce and Internet technologies.

The study of George Ndemo Ochoti, Elijah Maronga, Stephen Muathe, RobertNyamao Nyabwanga, Peter Kibet Ronoh (2012) investigated the multifaceted factorsinfluencing employee Performance Appraisal System in the Ministry of State forProvincial Administration, Nyamira District, Kenya. A target population of 76employees was surveyed. A structured questionnaire was self-administered to theemployees to collect data. Multiple regression analysis technique was used to explainthe nature of the relationship between PAS and the factors that influence it. Results ofthe study showed that all the five factors: Implementation process (X1), interpersonal

relationships (X2), rater accuracy (X3), informational factors (X4), and employeeattitudes (X5) had a significant positive relationship with the performance appraisalsystem (Y). It shows that if these factors are taken into consideration by the ratees, theraters and the government policy makers, the PAS can be a good performancemanagement tool.

The paper of Jawaria Andleeb Qureshi, Asad Shahjehan, Zia-ur-Rehman and BilalAfsar (2010) notifies that many organizations install Performance ManagementSystems (PMS) formally and informally in their organizations, with the motivation toachieve better organizational results. In practice, organizations have difficulty inimplementing a performance management system because its different dimensions are

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not taken into considerations enough. This article describes the findings of acomparative analyses conducted between a standard performance management modeland performance management systems as applied by Local Development Organization(LDO). Data was collected from 50 employees of the organization with a CronbachAlpha (0.935). Results identified barriers to implementation of effective PMS, alsorecommendations and viable solutions are presented.

Research of Leena Toppo, Twinkle Prusty (2012) informs that performance appraisaland performance management were one of the emerging issues since last decade. Manyorganizations have shifted from employee’s performance appraisal system toemployee’s performance management system. This paper has focused to study theevolution of employee’s performance appraisal system, critics the system suffered andhow the performance management system came to the practice. The main purpose ofthis paper is to differentiate these two systems, employee’s performance appraisal andmanagement system. This paper uses a review of the literature to evaluate thedevelopment of appraisal system and argues the critic areas of appraisal system.Performance management eliminates the shortcomings of performance appraisalsystem to the some extent.

There are, however, several models which have attempted to explain how HR policieshave an impact on firm performance, one such model adopted as a conceptualframework in this paper is the “People Process Framework” (Gratton 1996). Thisframework focuses on individual performance linked to organizational performanceand is designed to deliver short term business objectives as well as long termsustainable success. The model clearly identifies a set of HR practices which have beendesigned to link individual effort to the overall objectives of the business and alsostrikes a balance between achieving short term goals and preparing the company for itsfuture long term success. The major focus of the research will be on the processeswhich contribute to short term business success, given their direct relevance to PMSand the crucial role of line managers in their implementation. These short termprocesses are critical to the overall success of the business as they provide thefoundations to encourage sustained performance through clear identification ofobjectives, continuous assessment of performance against those objectives, rewardstrategies that emphasize the required behaviors and the provision of training and skillswhich will improve performance. Implemented correctly, these processes shouldenhance the individuals confidence in themselves and their company creating anenvironment where employees “want to” perform rather than feeling like they

“have to” perform. Long term success is only possible therefore when the short termprocesses generate this type of response.

Whittaker and Marchington (2003) found evidence in their study that line managersspent very little time on people management issues, preferring instead to concentrateon financial or business objectives. Hope Hailey et al (2005) report that line managersare only measured on their technical role and not their people managementresponsibilities. The appraisal process is therefore of secondary importance to themand the appraisal is generally approached with little preparation, training or enthusiasm(Cook and Crossman 2004, Holt-Larsen and Brewster 2003). To address this,

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Hendry et al (2000) argue that not only should line managers own the performancemanagement process but that they should be involved in its design, and only byinvolving them at this stage will they “buy-in” to the process. Lack of management“buy-in” can potentially frustrate the whole purpose of a performance managementsystem, leading to an inability to meet short-term goals as well as failure to addresslonger term developmental opportunities (Weeks, 2005).

Lohr (1981) had stated that even Abraham Taylor (1856-1915) widely regarded as thefather of Scientific Management in his legendary thesis on performance improvement inorganizations had recognized the negative influences of groups on performance andsought to break-up informal group activities through spatial and work-flow designsand individual piece rate systems of pay. Taylor had based his management system onproduction-line time studies. Instead of relying on traditional work methods, heanalyzed and timed steelworkers’ movements on a series of jobs. Using time study ashis base, he broke each job down into its components and designed the quickest andbest methods of performing each component (Idemobi et al 2010). In this way heestablished how much workers should be able to do with the equipment and materialsat hand. He also encouraged employers to pay more productive workers at a higherrate than others, using a “scientifically correct” rate that would benefit both companyand worker. Thus, workers were urged to surpass their previous performancestandards to earn more pay. Taylor called his plan the differential rate system. Ratherthan quarrel over profits, both management and workers should try to increaseproduction and by so doing, he believed, profits would rise to such an extent thatlabour and management would no longer have to fight over them.

Timmons (1992) had opined that competitiveness is a major issue in foreigncompetition, and if a country’s export promotion drive is to yield the desired results,competitiveness in particular must be optimized. He further posited that the decliningproductivity in business organizations which leads to un-competitiveness is a majorcause of monetary problems and inflation, and governments obviously should beinterested in the level of competitiveness arising from productivity improvement.

Although the use of goal setting is primarily used to improve performance, there areother benefits such as: to clarify expectations, to improve job satisfaction, to enhance self-esteem through attainment of goals and to improve quality of work (Locke andLatham 1984).Appraisal provides the mechanism to provide effective feedback onachievement of which is an important factor in improving performance (Williams 2002).

Fletcher (2004) describes it as a “high risk activity” for managers, given the manypitfalls associated with it and Newton and Findlay (1996) highlight the fallibility ofappraisals as they are open to manager manipulation. Despite the criticisms, the use of performance appraisal is widespread and perceived to be an effective part of aperformance management system (CIPD 2005a).

Many organizations have looked to improve performance by linking it to pay;performance related pay (PRP) can take many different forms (Williams 2002) and the

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type of reward and how it is linked to performance management varies by organization(IDS 2003). There are many differing views on the effectiveness of PRP (Williams2002) and whether or not it contributes to improved performance. It has been arguedthat PRP is a process of control, rather than contributing to real development (Hendryet al 2000).

(Gratton 1996)There has been a change in scope of the appraisal process in recentyears, with an increasing focus on employee development, as more and morebusinesses focus on how targets are achieved rather than just the achievement itself.This has led to a combination of both objectives (outputs) and competencies (inputs,Taylor, 2005) and the recognition that personal development planning (PDPs) are afundamental part of a PMS. By offering employees the opportunity of enhancing theirskills through training, levels of self-confidence will improve and performance will beenhanced (White 1999).

Willcoxson, (2000) High performance is considered to be achievable in different ways,two of which are the humanistic and rational process perspectives. According toproponents of the humanistic perspective, high performance is attributed to investmentin the ‘softer’ people aspects of organizational life. Through valuing, trusting,developing and empowering employees, encouraging cooperative modes of operatingand stakeholder engagement, organizations can achieve high performance. Emphasis isalso placed on organizational culture as a key element of success or failure(Willcoxson, 2000).

In essence the productivity of an organization is jointly determined by the efficiencywith which the organization utilizes several available factors of production whichinvariably are scarce relative to the demand for them. As it were therefore, one canconceive of an equilibrium condition in productivity terms within given and statedconstraints in an organization. Like the price scenario, several factors operate to makeit difficult to optimize the use of human and other resources in the organization suchthat the equilibrium condition is not achieved easily. Ouchi (1981) clearly pointed thisout when he addressed the issue of what he labelled “the organizational dilemma”meaning that the organization’s search for rationality (technological determinism) andthe human beings search for happiness (as in the Doctrine of Hedonism).

Robert and Angelo, (2001) The success or failure of public sector businessorganizations hinges on the ability to attract, develop, retain, empower and reward adiverse array of appropriately skilled people and is the key to improving organizationalperformance The explanation therefore is that human resource managers in the publicsector business concerns should embark on periodic performance management reviewsof their employees in order to re-position their business organizations though ownedby government for better performance and improved competitiveness.

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Sung & Ashton,(2005)It is the business strategy that gives the high performanceworking practices their dynamism and provides the framework against whichperformance can be evaluated and improved. Thus, the concern is not with the specifictype or number of practices employed, but the way they are linked to organizationalperformance.

Results from the Watson Wyatt Worldwide (2004) study suggest that PM systemsshould recognize high performers and confront poor performers as soon as possible,eliminate paper forms, and utilize a user-friendly automation. Researchers fromWatson Wyatt Worldwide also assert that if PM systems are designed andimplemented properly, they can lead to positive impact on individual performance aswell as better financial results for the organization (i.e., improvement in shareholdervalue).

A common weakness in the implementation of performance management systems noted by de Waal (2004) is the focus only on the “structural side”, that is, “thestructure that needs to be in place to be able to use performance management such ascritical success factors & key performance indicators, possibly supported by a balancescorecard”. De Waal (2004) argues that successful implementation also requiresattention to the “behavioral side” that is, the necessary performance-driven behaviorrequired from organizational members to achieve the desired objectives. According tode Waal (2004), appropriate behaviors, including attitudes and beliefs, depend on arange of factors including management style, the perceived relevance of performanceindicators, the degree to which employees feel they can influence change, and thequality of communication within the organization.(Source : http://eprints.jcu.edu.au/26275/ ).

A study conducted by McDonald and Shield of Hewitt Associates found that companiesthat used performance management programs had greater profits, better cash flow,stronger stock market performance and greater stock value than companies that did not.Not only performance management improved financial performance, but it alsoimproved productivity; companies with such programs had higher sales per employees(Rheem, 1995). Nonetheless, performance management has been mistaken as performanceevaluation. As a matter of fact, both performance management and performance evaluationare related but they are not exactly the same concept. Performance management is asystematic process for improving organizational performance by developing the performanceof individuals and teams; it is a mean of getting better results from the organization, teams,and individuals by understanding and managing performance within an agreed framework ofplanned goals, standards, and competence requirement

(Armstrong, 2006). While performance evaluation is a process of assess and rate pastperformance of individuals or groups (Oct 2004). Performance evaluation is just a part ofperformance management.

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CHAPTER-4 RESEARCH

METHODOLOGY

CHAPTER-4RESEARCH METHODOLOGY

4.1 TITLE OF THE RESEARCH STUDY :

“An Analytical Study of Performance Management System as a tool for Effective performance : A study of Selected employees in Vijayjyot Seats Private Limited”.

4.2 DURATION OF THE RESEARCH STUDY :

This study was carried out for duration of 2 month.

4.3 BASIC TERMS OF PRESENT RESEARCH STUDY :

Performance : Performance means both behaviours and results. Behaviours emanate from

the performer and transform performance from abstraction to action. Not

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just the instruments for results, behaviours are also outcomes in their own

right- the product of metal and physical effort applied to tasks- and can be

judged apart from results (Brumbrach,1988).

Management :Management is the art of getting things done through and with people in

formally organized group (According to Harold Koontz).

System : An organized, purposeful structure that consists of interrelated and

interdependent elements (components, entities, factors, members, parts

etc.). These elements continually influence one another (directly or

indirectly) to maintain their activity and the existence of the system, in

order to achieve the goal of the system.(www.businessdictonary.com)

4.4 RATIONALE OF THE RESEARCH STUDY :

When it comes to performance, employee’s performance is one the main in organisationalsuccess. Therefore, it is an need of the hour where organizational has to make very specificefforts for improving employee’s performance to optimally utilize knowledge and skills oftheir employees. The proposed research study also would report on employee’s feedbackas well as expectations & experiences with regard to selected performance managementsystem. It also list out suggestions for an overall improvement for employees effectiveperformance. The research study would make an attempt to find the impact ofperformance management system on effective employee’s performance.

4.5 SCOPE & COVERAGE OF RESEARCH STUDY :

The research was conducted in Vijayjyot Seats Private Limited. The research study wasfocus on performance management system in Vijayjyot seats private limited. It alsomeasure & evaluate the effective performance on the basis of employee’s overallawareness, expectations & satisfaction or dissatisfaction as an outcome of offering variouskinds of incentives & employee’s morale as offered by the performance managementsystem of Vijayjyot seats (P) Ltd.

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4.6 OBJECTIVES OF RESEARCH STUDY :

The objectives of the study are.......

To empirically assess performance management as a tool for improvingperformance.

To study the process and methods of existing performance management systems.

To identify the effects of performance review techniques on employee’sperformance.

To study of performance review techniques; employee’s performance; performanceincentives and employee’s morale.

4.7 RESEARCH DESIGN :

The research design of this study considering its objectives, scope & coverage wasexploratory as well as descriptive in nature.

4.8 SOURCES OF INFORMATION :

4.8.1 PRIMARY DATA :

The primary data has been obtained from the selected employees & senior executiveat various departments of Vijayjyot Seats Private Limited through circulation of thestructured non-disguised questionnaire.

4.8.2 SECONDARY DATA :

The secondary data has been obtained from published as well as unpublishedliterature on the topic and from Books, Journals, News Papers, Research Articles,Thesis, Websites, Magazines etc.

4.9 SAMPLING DECISIONS:

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4.9.1 SAMPLE SIZE:

Appropriate number of sample size (i.e. 60) was put to used for the purpose ofcollecting primary data from the selected employees of different departments of theVijayjyot Seats Private Limited.

4.9.2 SAMPLING METHOD:

Non-probability sampling design based on convenient sampling method has beenused for this research study.

4.9.3 SAMPLING FRAME :

The representative sampling units in appropriate & justified size has beenconveniently drawn from amongst different employees across various heterogeneoussocio- economic age groups, occupations, educational qualifications,

gender who have availed incentives & employee’s morale as offered by theperformance management system of the Vijayjyot Seats Private Limited.

4.9.4 RESEARCH INSTRUMENT :

A structured non-disguised questionnaire has been prepared to get the relevantinformation from the respondents. The questionnaire consists of variety of questionspresented to the respondents for their responses. The researcher has been usedquestionnaire with the support & cooperation of the selected respondents of variousdepartments at managerial and non-managerial level of Vijayjyot Seats PrivateLimited.

4.9.5 SAMPLING MEDIA :

Sampling media has been in the form of Filling up of questionnaire.

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4.10 DATA COLLECTION, ANALYSIS & INTERPRETATION :

The collected information and primary data has been subjected to data analysis andinterpretation, content analysis and statistical analysis. The collected primary data hasbeen pre-coded considering the designing of the structured non-disguised questionnaire.The primary data has been scrutinized, edited and validated and thereafter it has beenpresented in the forms of tables, charts, graphs and diagrams as the case may be.

4.11 SIGNIFICANCE OF THE RESEARCH STUDY :

This research study has covered the performance management system which help to findeffective performance of the employees. The employees has been aware of theperformance standard of the company. It has been create awareness of performancemanagement system to improve effective performance and also to the different criteria ofthe Vijayjyot Seats Private Limited. This research study also assists to Vijayjyot SeatsPrivate Limited authorities in the designing of the performance management system forimproving performance. Organisation will be able to develop performance reviewtechniques to control the performance of the employees.

4.12 LIMITATIONS OF THE RESEARCH STUDY :

The researcher has been use selected statistical tools which are relevant toresearch study & thus having limited generalizability.

The employees were reluctant to give correct information.

The investigator intended to cover only few areas of performance managementsystem.

The sample size selected by the researcher is limited.

The time factor in collecting the responses as in conducting the research study haslimited factor.

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In lieu of the variation in the cooperation and involvement of selected employeesat different departments of Vijayjyot Seats Private Limited, there may beinaccuracy of the responses given by them.

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CHAPTER–5DATA ANALYSIS &

INTERPRETATIONS

CHAPTER – 5DATA ANALYSIS & INTERPRETAION

Section A : General Profile of Respondents:

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(1) Gender :

TABLE: 1

Sr.No.

Gender Frequency Percentage(%)

1. Male 52 872. Female 08 13

Total 60 100

Interpretation : From the above table, 87% of employees lies under the malecategory and 13% employees lies under the Female category.

Majority of the employees lies under the Male category.

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(2) Age :

TABLE: 2

Sr. No Age Frequency Percentage (%)1 20-25 12 212 26-35 24 413 36-50 20 354 50 above 02 3

Total 60 100%

Interpretation : The chart depicts that :41% respondents tend to age between 26-35,35% respondents tend to age between 36-50,21% respondents tend to age between 20-25 and;03% respondents tend to age between 50 above.

Majority of the respondents tend to age between 26-35.

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(3) Qualification :

TABLE: 3

Sr. No Educational Qualification Frequency Percentage (%)1 Under Graduate 6 102 Graduate 22 373 Post Graduate 12 204 Diploma 6 105 Others 14 23

Total 60 100%

Interpretation : The chart depicts that :37% respondents are Graduate,23% respondents are others,20% respondents are Post Graduate,10% respondents are Diploma and;10 % respondents are Under Graduate.

Majority respondents are Graduate.

(4) Job Experience :

TABLE: 4

Sr. No Job Experience Frequency Percentage (%)1 Less than one year 04 072 2-10 years 34 563 More than 10 years 22 37

Total 60 100%

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Interpretation : From the above table, 56% of the respondents have work

experience of 2-10 years, 37% of the respondents have work experience of

more than 10 years, and 7% of the respondents have work experience of less

than one year.

Majority of the employees in the organization have a work experience of 1-5

years.

Section B : Nature of Current Performance Management System :

(1) Do your Organization operate formal performance management system?

TABLE: 5

Sr. No. Response Frequency Percentage (%)

1 Yes 52 87

2 No 08 13

Total 60 100

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Interpretation : From the above table, 87% respondents are in favour oforganization operate formal performance management system, 13% respondents arenot in favour of organization operate in formal performance management system.

(2) If yes, which of the following groups of employees do this processes apply to?

TABLE: 6

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Sr. No. Levels Frequency

1 Senior Managers 2

2 Other Managers/ Team leaders 10

3 Technical/ clerical 40

4 Professionals 00

5 Manual/ Blue-collar 00

Total 52

Interpretation : From the above table, out of 52 respondents, 40 respondents fromTechnical/ clerical employees do this process applied,10 respondents from other

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managers/ team leaders do this process applied and remaining 02 respondents (i.e.senior managers) do this process applied.

Mostly this process applied to Technical/ clerical group of employees.

(3) What are the techniques that are used in your organisation for assessingperformance?

TABLE: 7

Sr.No.

Techniques Frequency Percentage (%)

1 Observation 6 102 Assessment & Development Centre 2 033 Checklist 52 87

Total 60 100

Interpretation : From the above table, 87% respondents are in favour ofchecklist techniques that are used in organisation for assessing performance,10%respondents are in favour of observation techniques that are used in organisationfor assessing performance, and 3% respondents are in favour of assessment &development centres techniques that are used in organisation for assessingperformance.

Majority respondents believed in Checklist techniques that are used inorganisation for assessing performance.

(4) Please indicate which of the following methods of performance appraisal from apart of your system?

TABLE: 8

Sr. No. Methods Frequency Percentage (%)

1 Written Essay Method 50 83

2 Graphical Rating Scale 04 7

3 Ranking Method 04 7

4 360 Degree Appraisal 00 00

5 Self Appraisal 02 3

6 Critical Incident

Assessment

00 00

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Total 60 100

Interpretation : From the above table, out of 60 respondents, 50 respondents thatare believed in Written essay method of performance appraisal from a part of system,04 respondents are believed in graphical rating scale of performance appraisal from apart of system, 04 respondents are believed in ranking method of performanceappraisal from a part of system and; 02 respondents are believed in self-appraisal ofperformance appraisal from a part of system. None of the respondents are believed in360 degree appraisal & critical incident assessment of performance appraisal from apart of system.

Majority of respondents are believed in Written essay method of performanceappraisal from a part of system.

(5) Please rate your satisfaction with the following part of your current performancemanagement system :

1. Performance Planning/ Goal Setting :

TABLE: 9

Sr. No Particulars Frequency Percentage (%)1 Very Satisfied 52 87

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2 Satisfied 08 133 Neutral 00 004 Unsatisfied 00 005 Very Unsatisfied 00 00

Total 60 100%

Interpretation : From the above table, 87% respondents are very satisfied aboutperformance planning/ goal setting of current performance management system, 13%respondents are satisfied about performance planning/goal setting of current performancemanagement system.

2. Performance Evaluation :

TABLE: 10

Sr. No Particulars Frequency Percentage (%)1 Very Satisfied 52 872 Satisfied 00 003 Neutral 00 004 Unsatisfied 08 135 Very Unsatisfied 00 00

Total 60 100%

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Interpretation : From the above table, 87% respondents are very satisfied aboutperformance evaluation of current performance management system, 13% respondentsare unsatisfied about performance evaluation of current performance management system.

3. Development Planning :

TABLE: 11

Sr. No Particulars Frequency Percentage (%)1 Very Satisfied 50 832 Satisfied 02 33 Neutral 00 004 Unsatisfied 08 145 Very Unsatisfied 00 00

Total 60 100%

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Interpretation : From the above table, 83% respondents are very satisfied aboutdevelopment planning of current performance management system, 3% respondents aresatisfied about development planning of current performance management system, 14%respondents are unsatisfied about development planning of current performancemanagement system.

Majority respondents are very satisfied about development planning of currentperformance management system

4. 360 Degree Feedback :

TABLE: 12

Sr. No Particulars Frequency Percentage (%)1 Very Satisfied 42 702 Satisfied 08 143 Neutral 08 134 Unsatisfied 02 035 Very Unsatisfied 00 00

Total 60 100%

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Interpretation : From the above table, 70% respondents are very satisfied about 360degree feedback of current performance management system, 14% respondents aresatisfied about 360 degree feedback of current performance management system, 13%respondents are neutral about 360 degree feedback of current performance managementsystem.

Majority of respondents are very satisfied about 360 degree feedback of currentperformance management system.

5. Coaching &/or Mentoring :

TABLE: 13

Sr. No Particulars Frequency Percentage (%)1 Very Satisfied 52 872 Satisfied 00 003 Neutral 08 134 Unsatisfied 00 005 Very Unsatisfied 00 00

Total 60 100%

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Interpretation: From the above table, 87% respondents are very satisfied aboutcoaching & mentoring of current performance management system,13% respondents areneutral about coaching & mentoring of current performance management system.

Majority respondents are very satisfied about coaching & mentoring of currentperformance management system.

6. Training:

TABLE: 14

Sr. No Particulars Frequency Percentage (%)1 Very Satisfied 52 872 Satisfied 00 003 Neutral 00 004 Unsatisfied 02 35 Very Unsatisfied 06 10

Total 60 100%

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Interpretation : From the above table, 87% respondents are very satisfied abouttraining of current performance management system,10% respondents are very unsatisfiedabout training of current performance management system, 3% respondents areunsatisfied about training of current performance management system.

Majority respondents are very satisfied about training of current PMS.

7. Leadership Development :

TABLE: 15

Sr. No Particulars Frequency Percentage (%)1 Very Satisfied 50 832 Satisfied 02 43 Neutral 00 004 Unsatisfied 02 35 Very Unsatisfied 06 10

Total 60 100%

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Interpretation : From the above table, 83% respondents are very satisfied aboutleadership development of current performance management system, 10% respondentsare very unsatisfied about leadership development of current performance managementsystem, 4% respondents are satisfied and 3 % respondents are unsatisfied aboutleadership development of current performance management system.

Majority respondents are very satisfied about leadership development of currentperformance management system.

8. Rewards :

TABLE: 16

Sr. No Particulars Frequency Percentage (%)1 Very Satisfied 48 802 Satisfied 04 63 Neutral 00 004 Unsatisfied 04 75 Very Unsatisfied 04 7

Total 60 100%

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Interpretation : From the above table, 80% respondents are very satisfied aboutrewards of current performance management system, 6% respondents are satisfied aboutrewards of current performance management system, 7 % respondents are unsatisfiedabout rewards of current performance management system, 7% respondents are veryunsatisfied about rewards of current performance management system.

Majority of respondents are very satisfied about rewards of current PMS.

9. Discipline :

TABLE: 17

Sr. No Particulars Frequency Percentage (%)1 Very Satisfied 42 732 Satisfied 10 153 Neutral 00 004 Unsatisfied 06 95 Very Unsatisfied 02 3

Total 60 100%

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Interpretation : From the above table,73% respondents are very satisfied aboutdiscipline of current PMS,15% respondents are satisfied about discipline of currentperformance management system, 9% respondents are unsatisfied about discipline ofcurrent performance management system,3% respondents are very unsatisfied aboutdiscipline of current performance management system.

Majority of respondents are very satisfied about discipline of current PMS.

10.Effectiveness of Current PMS :

TABLE: 18

Sr. No Particulars Frequency Percentage (%)1 Very Satisfied 50 832 Satisfied 00 003 Neutral 00 004 Unsatisfied 04 75 Very Unsatisfied 06 10

Total 60 100%

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Interpretation : From the above table, 83% respondents are very satisfied abouteffectiveness of current PMS, 7% respondents are unsatisfied about effectiveness ofcurrent PMS, 10% respondents are very unsatisfied about effectiveness of current PMS.

Majority of respondents are very satisfied about effectiveness of current PMS.

(6) What are the major elements of your business strategy at present? (give rank in order ofimportance, with one being most importance).

TABLE: 19

R a nk

Business Strategy Frequency

1 Increase Productivity 402 Increase Efficiency 503 Improve Quality 424 Reduce production time 505 Expand Market 426 Reduce cost 42

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Interpretation : From the above table, 40 respondents give rank 1st to the Increase

Productivity, 50 respondents give rank 2nd to the Increase Efficiency,42 respondents give

rank 3rd to the improve quality, 50 respondents give rank 4th to the reduce production

time, 42 respondents give rank 5th to the expand market, 42 respondents give rank 6th tothe reduce cost.

Increase productivity is major elements of business strategy at present.

(7) Are you believe the current performance management system improvingperformance?

TABLE: 20

Response Frequency Percentage (%)

Yes 50 83

No 10 17

Total 60 100

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Interpretation : From the above table, 83% respondents are believed the current

performance management system improving performance, 17% respondents are believed the

current performance management system not improving performance.

Majority of them are believed the current PMS improving performance.

Section C: Perception of HR Professionals about PMS :

(1) Performance management helps me to motivate my team:

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TABLE: 21

Particulars Frequency Percentage (%)Strongly Agree 05 100Agree 00 00Neutral 00 00Disagree 00 00Strongly Disagree 00 00Total 05 100

Interpretation : From the above table, all HR professionals are strongly agree with PMhelps to them motivate team.

(2) Performance management helps me decide what to pay members of my teams :

TABLE: 22

Particulars Frequency Percentage (%)Strongly Agree 05 100Agree 00 00Neutral 00 00Disagree 00 00Strongly Disagree 00 00Total 05 100

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Interpretation : From the above table, all HR professionals are strongly agree with PMhelps to decide what to pay members of their teams.

(3) Performance management helps me to develop the skills & capabilities of myteam:

TABLE: 23

Particulars Frequency Percentage (%)Strongly Agree 05 100Agree 00 00Neutral 00 00Disagree 00 00Strongly Disagree 00 00Total 05 100

Interpretation : From the above table, all HR professionals are strongly agree with PMhelps them to develop the skills & capabilities of their team.

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(4) Performance management helps my team to perform better :

TABLE: 24

Particulars Frequency Percentage (%)Strongly Agree 05 100Agree 00 00Neutral 00 00Disagree 00 00Strongly Disagree 00 00Total 05 100

Interpretation : From the above table, all HR professionals are strongly agree with PMhelps their team perform better.

(5) Performance management helps me to communicate to my team what is expectedof them:

TABLE: 25

Particulars Frequency Percentage (%)Strongly Agree 05 100Agree 00 00Neutral 00 00Disagree 00 00Strongly Disagree 00 00Total 05 100

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Interpretation : From the above table, all HR professionals are strongly agree with PMhelps them to communicate their team what is expected of them.

(6) I am not comfortable with conducting performance reviews :

TABLE: 26

Particulars Frequency Percentage (%)Strongly Agree 01 20Agree 01 20Neutral 00 00Disagree 00 00Strongly Disagree 03 60Total 05 100

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Interpretation: From the above table, It is concluded that 60% HR professional’sperception strongly disagree about performance review is they are not comfortable withconducting performance reviews, 20% HR professionals are strongly agree with thecomfortable of conducting performance review, and 20% HR professionals are agree aboutthey are comfortable with conducting performance review.

Majority are comfortable with conducting performance review.

(7) Performance management is generally only of use to the personnel department, notindividual line managers :

TABLE: 27

Particulars Frequency Percentage (%)Strongly Agree 00 00Agree 00 00Neutral 00 00Disagree 01 20Strongly Disagree 04 80Total 05 100

Interpretation: From the above table,80% of the HR professionals are strongly disagreeabout the PM is generally use to the only personnel department, not individual line managersand 20% of HR professionals are disagree about the PM is use to only personnel department,not individual line managers.

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It is here concluded that majority of HR professionals are believed PM is use to not only tothe personnel department but also to the individual line managers.

(8) The information generated from performance reviews is unproductive & of novalue :

TABLE: 28

Particulars Frequency Percentage (%)Strongly Agree 00 00Agree 00 00Neutral 01 20Disagree 03 60Strongly Disagree 01 20Total 05 100

Interpretation : From the above table, 60% HR professionals are disagree aboutinformation generated from performance review is unproductive & of no value, 20% HRprofessionals are strongly disagree about information generated from performance review isunproductive & of no value; and 20% are neutral about information generated fromperformance review is unproductive & of no value.

Majority are strongly disagree about info. generated from performance review is unproductive& of no value.

(9) The time I spend on performance reviews could be used more productivelyelsewhere :

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TABLE: 29

Particulars Frequency Percentage (%)Strongly Agree 00 00Agree 03 60Neutral 00 00Disagree 02 40Strongly Disagree 00 00Total 05 100

Interpretation : From the above table, 60% HR professionals are agree about time spend bythem on performance review is more productively elsewhere, 40% HR professionals aredisagree about time spend by them on performance review is more productively elsewhere.

(10) The current performance management system works well & does not need tochange :

TABLE: 30

Particulars Frequency Percentage (%)Strongly Agree 05 100Agree 00 00Neutral 00 00Disagree 00 00Strongly Disagree 00 00Total 05 100

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Interpretation : The above charts shows that, all HR professionals strongly agree withcurrent performance management system works well & does not need to change.

(11) I am satisfied that I give consistent & fair rating to members of my team :

TABLE: 31

Particulars Frequency Percentage (%)Strongly Agree 00 00Agree 05 100Neutral 00 00Disagree 00 00Strongly Disagree 00 00Total 05 100

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Interpretation : The above chart shows that, all HR professionals are agree with they aresatisfied about they give consistent & fair rating to members of their team.

(12) I am satisfied that performance review techniques use in assessing employee’sperformance more effective :

TABLE: 32

Particulars Frequency Percentage (%)Strongly Agree 00 00Agree 01 20Neutral 00 00Disagree 00 00Strongly Disagree 04 80Total 05 100

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Interpretation: The above chart shows that, 80% HR professionals are strongly disagreewith they are satisfied that performance review techniques use in assessing employee’sperformance more effective, and 20% HR professionals are agree with that.

(13) Performance review techniques more impact on employee’s performance, employee’sincentive & morale :

TABLE: 33

Particulars Frequency Percentage (%)Strongly Agree 01 20Agree 03 60Neutral 00 00Disagree 01 20Strongly Disagree 00 00Total 05 100

Interpretation : From the above table, 60% HR professionals are agree about performancereview techniques more impact on employee’s performance, employee’s incentive & morale,20% are strongly agree and 20 % are disagree about performance review techniques moreimpact on employee’s performance, employee’s incentive & morale.

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(14) The documentation associated with performance management is unclear &unhelpful :

TABLE: 34

Particulars Frequency Percentage (%)Strongly Agree 00 00Agree 00 00Neutral 00 00Disagree 01 20Strongly Disagree 04 80Total 05 100

Interpretation : From the above table,80% HR professionals are strongly disagree aboutdocumentation associated with performance management is unclear & unhelpful, 20% HRprofessionals are disagree about documentation associated with performance management isunclear & unhelpful.

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Section D : Perception of Employees/ Individuals :

(1) I have authority to determine my work objectives :

TABLE: 35

Particulars Frequency Percentage (%)Strongly Agree 46 84Agree 00 00Neutral 00 00Disagree 09 16Strongly Disagree 00 00Total 55 100

Interpretation : From the above table, 84% respondents are strongly agree about they haveauthority to determine their work objectives , 16% respondents are disagree about they haveno authority to determine their work objectives.

Majority of them have authority to determine their work objectives.

(2) I receive a lot of feedback on my performance :

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TABLE: 36

Particulars Frequency Percentage (%)Strongly Agree 44 80Agree 02 4Neutral 00 00Disagree 09 16Strongly Disagree 00 00Total 55 100

Interpretation : From the above table, 80% respondents are strongly agree for they havereceived a lot of feedback on their performance, 4% respondents are agree for they havereceived a lot feedback on their performance ;and 16% respondents are disagree for they havenot received a lot of feedback on their performance.

Majority respondents are received a lot feedback on their performance.

(3) The most important thing about my job is the pay:

TABLE: 37

Particulars Frequency Percentage (%)Strongly Agree 44 80Agree 02 4Neutral 00 00Disagree 00 00Strongly Disagree 09 16Total 55 100

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Interpretation : The above chart shows that, 80% respondents are strongly agree for themost important thing about their job is the pay,4% respondents are agree for the mostimportant thing about their job is the pay and; 16% respondents are strongly disagree for themost important thing about their job is the pay.

Majority respondents are in favour of the most important thing about their job is the pay.

(4) Hard work is not necessarily recognized or rewarded :

TABLE: 38

Particulars Frequency Percentage (%)Strongly Agree 09 16Agree 02 4Neutral 00 0Disagree 02 4Strongly Disagree 42 76Total 55 100

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Interpretation : The above chart depicts that, 76% respondents are strongly disagree abouthard work is not necessarily recognized or rewarded,4% respondents are disagree; and 4%respondents are agree and 16% respondents are strongly agree about hard work is notnecessarily recognized or rewarded.

Majority respondents are not in favour of hard work is not necessarily recognized orrewarded.

(5) I fully understand my organization’s business goals & objectives :

TABLE: 39

Particulars Frequency Percentage (%)Strongly Agree 44 80Agree 00 00Neutral 00 00Disagree 04 7Strongly Disagree 07 13Total 55 100

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Interpretation : From the above table, 80% respondents are strongly agree about they fullyunderstand their organization’s business goals & objectives, 7% respondents are disagree and13% respondents are strongly disagree about they fully understand their organization’sbusiness goals & objectives.

Majority respondents are fully understand their organization’s business goals & objectives.

(6) My work objectives are unrealistic & difficult to achieve :

TABLE: 40

Particulars Frequency Percentage (%)Strongly Agree 09 16Agree 02 4Neutral 00 00Disagree 00 00Strongly Disagree 44 80Total 55 100

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Interpretation : Above chart depicts that, 80% respondents are strongly disagree about theirwork objectives are unrealistic & difficult to achieve, 16% respondents are strongly agree and;4% respondents are agree about their work objectives are unrealistic & difficult to achieve.

Most of the respondents are know their work objectives are not unrealistic & difficult toachieve.

(7) I have autonomy over the way I perform my work :

TABLE: 41

Particulars Frequency Percentage (%)Strongly Agree 44 80Agree 00 00Neutral 00 00Disagree 02 4Strongly Disagree 09 16Total 55 100

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Interpretation : From the above table, 44 respondents are strongly agree for they haveautonomy over the way they perform their work, 04 respondents are disagree; and 09respondents are strongly disagree for they have autonomy over the way they perform theirwork.

Majority respondents have autonomy over the way they perform their work.

(8) My organization communicates well :

TABLE: 42

Particulars Frequency Percentage (%)Strongly Agree 42 76Agree 02 4Neutral 00 00Disagree 11 20Strongly Disagree 00 00Total 55 100

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Interpretation : From the above table, 76% respondents are strongly agree about theirorganization communicates well, 4% respondents are agree ;and 20% respondents aredisagree about that.

Majority of them believed in their organization communicates well.

(9) Performance management helps me to do my job better :

TABLE: 42

Particulars Frequency Percentage (%)Strongly Agree 44 80Agree 00 00Neutral 00 00Disagree 04 7Strongly Disagree 07 13Total 55 100

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Interpretation : The above chart depicts that, 80% respondents are strongly agree aboutperformance management helps them to do their job better, 7% respondents are disagree and;13% respondents are strongly disagree about performance management helps them to do jobbetter.

(10) Performance management helps me to develop my skill & potential :

TABLE: 43

Particulars Frequency Percentage (%)Strongly Agree 44 80Agree 00 00Neutral 00 00Disagree 02 4Strongly Disagree 09 16Total 55 100

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Interpretation : From the above table,44 respondents are strongly agree about performancemanagement helps them to develop their skill & potential,09 respondents are strongly disagreeand 02 respondents are disagree about performance management helps them to develop theirskill & potential.

(11) I get useful feedback from my performance management review :

TABLE: 44

Particulars Frequency Percentage (%)Strongly Agree 40 73Agree 04 7Neutral 00 00Disagree 04 7Strongly Disagree 07 13Total 55 100

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Interpretation : The above chart shows that, 40 respondents are strongly agree with theyget useful feedback from their performance management review,4 respondents are agree andanother 04 respondents are disagree ; and remaining 07 respondents are strongly disagree withthey get useful feedback from their performance management review.

(12) I am not satisfied with the way my manager/ team leader conducts myperformance review :

TABLE: 45

Particulars Frequency Percentage (%)Strongly Agree 07 13Agree 04 7Neutral 00 0Disagree 04 7Strongly Disagree 40 73Total 55 100

Interpretation : The above chats depicts that, 73% respondents are strongly disagree,7%respondents are disagree,7% respondents are agree; and 13% respondents are strongly agreeabout they are not satisfied with the way their manager/ team leader conduct performancereview.

Majority of them satisfied with the way their manager/ team leader conduct performancereview.

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(13) Performance management helps me to improving performance :

TABLE: 46

Particulars Frequency Percentage (%)Strongly Agree 44 80Agree 00 00Neutral 00 00Disagree 02 4Strongly Disagree 09 16Total 55 100

Interpretation : From the above table,80% respondents are strongly agree,4% respondentsare disagree and; 16% respondents are strongly disagree about performance managementhelps them to improving performance.

Majority respondents are believed performance management helps them to improvingperformance.

(14) Assessments of my performance are consistent, fair & unbiased :

TABLE: 47

Particulars Frequency Percentage (%)Strongly Agree 00 00

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Agree 00 00Neutral 00 00Disagree 02 4Strongly Disagree 53 96Total 55 100

Interpretation : The above chart depicts that, 96% respondents are strongly disagree and 4% respondents are disagree about the assessment of their performance are consistent, fair &unbiased.

Majority respondents are not satisfied with assessments of their performance are consistent,fair & unbiased.

(15) The system of performance management used here works well & does not need tochange :

TABLE: 48

Particulars Frequency Percentage (%)Strongly Agree 44 80Agree 00 00Neutral 00 00Disagree 04 7Strongly Disagree 07 13Total 55 100

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Interpretation : From the above table, 80% respondents are strongly agree, 7% respondentsare disagree and; 13% respondents are strongly disagree about system of performancemanagement used in organization works well & does not need to change.

Majority respondents are believed in system of performance management works well & notneed to change.

(16) The information disclosed in performance reviews is used sensitively &productively by the organization :

TABLE: 49

Particulars Frequency Percentage (%)Strongly Agree 44 80Agree 00 00Neutral 00 00Disagree 04 7Strongly Disagree 07 13Total 55 100

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Interpretation : The above chart depicts that,80% respondents are strongly agree, 7%respondents are disagree and; 13% respondents are strongly disagree about the informationdisclosed in performance reviews is used sensitively & productively by the organization.

Majority respondents are in favour of information disclosed in performance reviews is usedsensitively & productively by the organization.

(17) Performance management does not help to develop careers, only improve workperformance :

TABLE: 50

Particulars Frequency Percentage (%)Strongly Agree 02 3Agree 00 00Neutral 02 4Disagree 07 13Strongly Disagree 44 80Total 55 100

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Interpretation : From the above table,80% respondents are strongly disagree, 13%respondents are disagree,4% respondents are neutral and; 3% respondents are strongly agreeabout performance management does not help to develop careers, only improve workperformance.

Majority respondents are believed that performance management help not only to developcareers but also improve work performance.

(18) performance management is only use to personnel people :

TABLE: 51

Particulars Frequency Percentage (%)Strongly Agree 00 00Agree 02 3Neutral 13 24Disagree 00 00Strongly Disagree 40 73Total 55 100

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Interpretation : The above chart describes that, 73% respondents are strongly disagree,24%respondents are neutral and; 3% respondents are agree with performance management is onlyuse to personnel people.

Majority respondents are in favour of performance management not only use to personnelpeople.

(19) Performance review techniques more impact on my performance incentives &morale :

TABLE: 52

Particulars Frequency Percentage (%)Strongly Agree 44 80Agree 00 00Neutral 00 00Disagree 11 20Strongly Disagree 00 00Total 55 100

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Interpretation : The above chart shows that, 80% of respondents are strongly agree and20% respondents are disagree about performance review techniques more impact on theirperformance incentives & morale.

Majority of respondents are think that performance review techniques more impact on theirperformance incentives & morale.

(20) Performance management has no value for individuals, only for organization :

TABLE: 53

Particulars Frequency Percentage (%)Strongly Agree 11 20Agree 00 00Neutral 00 00Disagree 00 00Strongly Disagree 44 80Total 55 100

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Interpretation : The above chart shows that, 80% respondents are strongly disagree and20% respondents are strongly agree with performance management has no value forindividuals, only for organization.

Majority of respondents are believed performance management has value not only to theorganization but also to the individuals also.

(21) I find it difficult to discuss work problems with my line manager :

TABLE: 54

Particulars Frequency Percentage (%)Strongly Agree 11 20Agree 00 00Neutral 00 00Disagree 00 00Strongly Disagree 44 80Total 55 100

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Interpretation : From the above table, 80% respondents are strongly disagree and 20%respondents are strongly agree about they find difficult to discuss work problem with their linemanager.

Majority respondents are find no difficult to discuss work problems with their line manager.

(22) Performance management is a two-way process, with both manager & employeeexpressing their views :

TABLE: 55

Particulars Frequency Percentage (%)Strongly Agree 42 76Agree 02 4Neutral 00 00Disagree 02 4Strongly Disagree 09 16Total 55 100

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Interpretation : The above table shows that, 76% respondents are strongly agree,4%respondents are agree, another 4% respondents are disagree ;and 16% respondents arestrongly disagree for performance management is two-way process, with both manager &employee expressing their views.

Majority respondents are believed that performance management is two-way process, withboth manager & employee expressing their views.

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CHAPTER-6 FINDINGS,

SUGGESTIONS &CONCLUSIONS

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CHAPTER-6 FINDINGS, SUGGESTIONS & CONCLUSIONS

FINDINGS :

All respondents have aware about the current performance management system.

Majority HR professionals told they are comfortable with conducting performancereview, but some of the HR professionals are not feel comfortable withconducting performance review.

All HR professionals and majority of respondents told they are satisfied withcurrent performance management system works well and no need to change.

Majority of respondents are told the checklist techniques used in organization forassessing performance.

Most of the respondents are believe in current performance management systemimproving their performance.

Majority of HR professional are not satisfied that performance review techniquesuse in assessing employee’s performance more effective.

Some HR professionals are told that performance review techniques more impacton employee’s performance, employee’s incentive & morale, but some of themare not agree with that.

Most of respondents told that increase productivity is major elements of businessstrategy at present.

Very Most of the respondents told that performance management help toimproving their performance.

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All HR professional are told that they are some of the extent satisfied that theygive consistent & fair ratings to members of their team.

RECOMMENDATIONS :

Employees do not have enough knowledge about the performancemanagement system and performance review techniques that are used inassessing their performance.

HR professionals of the organization should apply strategic & integrativeapproach to performance management.

HR professionals should communicate well and involve the employeesduring the performance management reviews. This will create a climate inwhich a continuing dialogue between managers & members of their teamstakes place to define expectations and share information, mission, valuesand objectives.

After performance reviews, the employee’s should be rewarded withincentives that will be commensurate with their efforts. This will a long wayin boosting the morale of the employee’s.

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Performance review conducting in a such a way that all employees are ratedconsistent, fair & unbiased.

Organization can also use another methods of performance appraisal (like.Assessment Centre, Critical incident Assessment) for assessing performanceof employee’s.

Organization should conduct periodic performance review for betterperformance of employees and improved competitiveness.

If all these recommendations are put in place by organization, thishas a great capacity to turn around the fortunes of these corporation.

It would also enable them to achieve the goals for which theywere set up as well as remain influential instruments of public service delivery anddevelopment.

CONCLUSION:

It is concluded from the survey that all respondents are aware about the currentperformance management system and does not need to change. Currentperformance management system works well and that improve the performanceof the employee’s.

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This study has shown that performance management is a comprehensiveapproach to planning and sustaining improvements in the performance ofemployees so as to meet the standards.

Most of the HR professionals are not feel comfortable with conductingperformance review. So create a trust in them about performance reviewtechniques and maintaining good relationship with employee’s for improvingtheir performance and accomplishing goals & objectives of the organization.

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BIBLIOGRAPHY:

Armstrong, M. (2004); Handbook of Human Resources Management Practice (9thEdition) London: Kogan Page.

Armstrong M. And Baron A. (1998); Performance Management: The New realities.London: IPD.

Akata, G.O. (2003); Strategic Performance Management: Your key to BusinessSuccess; Ibadan Spectrum Books Limited.

Beer, M. And Ruh, R. A. (1976); Employee Growth Through PerformanceManagement, Harvard Business review, 13:32-37.

Fajana, S. (2002); Human Resources Management : An Introduction. LagosLaboffin and Company.

Brumbach, G B (1988) Some ideas, issues and predictions about performancemanagement, Public Personnel Management, Winter, pp 387–402.

Mohrman, AM and Mohrman, S A(1995) Performance management is ‘running thebusiness’, Compensation and Benefits Review, July–August, pp 69–75.

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Risher, H (2003) Refocusing performance management for high performance,Compensation and Benefits Review, October, pp 20–30.

Skule, S. (2004) ‘Learning Conditions at Work: A Framework to Understand andAssess Informal Learning in the Workplace’, International Journal of Training andDevelopment, 8:1, pp. 1-13.

Wood, S. (1999) ‘Human Resource Management and Performance’, InternationalJournal of Management Review, 1:4, pp. 367-413.

T.V. Rao (2005); Performance Management & Appraisal System : 4th Edition, SAGE Publication.

Idemboi, Ellis I. And Oneyeizugbe, Chinedu (2011), ‘Performance management asan imperative for effective performance’, Sacha Jouranla of Policy and StrategicStudies, Vol. 1 Number 2, pp. 46-54.

Geeta Kumari, Neha Kaleramna and K.M. Pandey (2010), ‘Study on performancemanagement system of private companies : a case study of endurance Pvt. Ltd.

Maharashtra, India’ , International Journal of Innovation, Management &Technology, Vol.1, No.5, pp. 521-526.

Rajesh K. Yadav and Nishant Dabhade (2013), ‘Performance management systemin Maharatna companies’, International Letters of Social and Humanistic Sciences’ ,Vol.4, pp.49-69.

Sharmistha Bhattacharjee and Santoshi Sengupta (2011), ‘A Study of performancemanagement in a corporate firm’, International Journal of Business & ManagementResearch’, Vol.1 ,No.8, pp. 496-513.

Dr. Sanjeevni Gangwani (2012), ‘Employee survey on Performance AppraisalSystem’, International Journal of Social Sciences & Interdisciplinary Research, Vol.1, No. 6, pp. 124-141.

Dr. Satyawan Baroda, Chhavi Sharma and Jyoti Kandpal Bhatt (2012), ‘360 degreefeedback Appraisals- An Innovative approach of performance management system’,International Journal of Management & Information Technology, Vol.1 , No.2,pp.53-66.

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Milica Jaksic & Milos Jaksic (2012), ‘Performance Management and EmployeeSatisfaction’, Montenegrin Journal of Economics, Vol.9, No. 1, pp.85-92.

Ashima Aggarwal, Gour Sundar and Mitra Thakur (2013), ‘Techniques ofperformance appraisal- review’, International Journal of Engineering & AdvancedTechnology, Vol.2, Issue .3, pp.617-621.

WEBLIOGRAPHY:

� http://www.samsons.com� http://www.sachajournals.com� http://www.doaj.org� http://www.businessdictionary.com� http://www.sibson.com� http://www.Performanceappraisal.com

� http://www.performance-management-made-easy.com/

� http://www.vsrdjournals.com

� http://www.emeraldinsight.com/journals.htm?articleid=1585214

� http://www.humanresources.about.com

� http://www.citehr.com/

QUESTIONNAIRE“QUESTIONNAIRE ON AN ANALYTICAL STUDY OF

PERFORMANCE MANAGEMENT SYSTEM AS A TOOL FOREFFECTIVE PERFORMANCE : A STUDY OF SELECTED

EMPLOYEES IN VIJAYJYOT SEATS PRIVATE LIMITED”

Respected Sir/ Madam,

I am Irshad . I. Shekh student of M.com (Final) with specialization in HumanResource Management of Department of Commerce & Business Management,Faculty of Commerce, M.S. University of Baroda, pursuing a research project on

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“Performance Management System as a tool for effective performance inVijayjyot Seats Private Limited”.

I will grateful to you if you spare your valuable time & efforts with your valuableviews on the subject of the research study.

Section – A : General Profile of Respondents :

Name : ____________________________________________________________________

(1) Gender :

1. Male

2.Female

(2) Age :

1. 20-25

2. 26-35

3. 36-50

4. 50+

(3) Qualification : ________________________________________

(4) Job Experience in VSPL :

1. Less than 1 year

2. 2-10 years

3. More than 10 years

(5) Designation : _________________________

(6) Department : _________________________

Section – B : Nature of Current Performance Management Systems :

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(1) Does your organization operate formal performance management system ? 1.Yes

2. No

(2) If yes, which of the following groups of employees do these processes apply to ?1. Senior Managers

2. Other Managers/ Team Leaders

3. Technical/ Clerical

4. Professional

5. Manual/ Blue-collar

6. Other (Please Specify) _____________________

(3) What are the techniques that are used in your organization for assessing performance ? 1. Observation 2. Assessment & Development Centers 3. Checklist 4.Other (Please specify) _____________________

(4) Please indicate which of the following methods of performance appraisal from a part of your system? (1) Written Essay Method (2) Graphical Rating Scales (3) Ranking Method (4) 360 degree appraisal (5) Self appraisal (6) Critical Incident Assessment

(5) Using the following scale, please rate your satisfaction with the following parts of yourcurrent performance management system.

Sr.No.

VerySatisfied

Satisfied Neutral Unsatisfied Very Unsatisfied

1. Performance Planning/ Goal Setting2. Performance Evaluation3. Development Planning4. 360- degree feedback5. Coaching &/or Mentoring6. Training7. Leadership Development

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8. Rewards9. Discipline10. Effectiveness of current

Performance Management System

(6) What are the major elements of your business strategy at present? (please give rank inorder of your importance, with 1 being most importance).

Sr. No. 1 2 3 4 5 61. Reduce Costs2. Increase Productivity3. Expand/ Develop markets4. Increase Efficiency5. Reduce Production Time6. Improve Quality

(7) Are you believe the current performance management system improving performance ? 1. Yes 2. No

Section – C : Perceptions of HR Professionals about Performance Reviewsonly :

Please indicate the extent to which you agree or disagree with the following statementsregarding performance management.

Sr.No.

Statements Strongly Agree

Agree Neutral Disagree StronglyDisagree

1 Performance management helps me to motivate myteam

2 Performance management helps me decide what topay members of my teams

3 Performance management helps me to develop theskills & capabilities of my team

4 Performance management helps my team to performbetter

StronglyAgree

Agree Neutral Disagree StronglyDisagree

5 Performance management helps me to communicateto my team what is expected of them

6 I am not comfortable with conducting performancereviews

7 Performance management is generally only of use tothe personnel department, not individual linemanagers

8 The information generated from performancereviews is unproductive & of no value

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9 The time I spend on performance reviews could beused more productively elsewhere

10 The current performance management system workswell & does not need to change

11 I am satisfied that I give consistent & fair ratings tomembers of my team

12 I am satisfied that performance review techniquesuse in assessing employee’s performance moreeffective

13 Performance review techniques more impact onemployee’s performance , employee’s incentive &morale

14 The documentation associated with performancemanagement is unclear & unhelpful

Section – D : Perception of Employees/ Individuals :

Please indicate the extent to which you agree or disagree with the following statements.

Sr.No. Statements

StronglyAgree

Agree Neutral Disagree StronglyDisagree

1 I have authority to determine my work objectives

2 I receive a lot of feedback on my performance

3 The most important thing about my job is the pay

4 Hard work is not necessarily recognized or rewarded

5 I fully understand my organization’s business goals &objectives

6 My work objectives are unrealistic & difficult to achieve

7 I have autonomy over the way I perform my work

8 My organization communicates well

9 Performance management helps me to do my job better

10 Performance management helps me to develop my skill &potential

11 I get useful feedback from my performance managementreview

12 I am not satisfied with the way my manager/team leaderconducts my performance review

13 Performance management helps me to improvingperformance

14 Assessments of my performance are consistent, fair &unbiased

StronglyAgree

Agree Neutral

Disagree

StronglyDisagree

15 The system of performance management used here workswell and does not need to change

16 The information disclosed in performance reviews is usedsensitively & productively by the organization

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17 Performance management does not help to developcareers, only improve work performance

18 Performance management is only use to personnel people

19 Performance review techniques more impact on myperformance, incentives & morale

20 Performance management has no value for individuals,only for organization

21 I find it difficult to discuss work problems with my linemanager

22 Performance management is a two-way process, with bothmanager & employee expressing their views

Thank you for your Time & Experience