Академический Документы
Профессиональный Документы
Культура Документы
India is one of the emerging economy and is growing at an average rate of about 8 to 8.5 %.
Different sectors of economy have contributed in this growth particularly the service sector and
the manufacturing sector .The growth registered in manufacturing sector between 2007 to 2009
was about 25% to 30%.
Punj Llyod established in the year 1982 and employs about 5000 employees under different
grades.
This project is an attempt to understand
procedures/practices of Punj Llyod Ltd.
the
performance
management
system
Organizational efficiency depends upon the performance of the human resource of the
organization. Only appraisal of performance cannot be very much beneficial unless necessary
initiatives are taken for improvement and the management of the existing performance levels of
the employees. This project is an attempt to understand different methods of performance
appraisal and the concept of performance systems.
During the project an attempt was made for Personal Interview of few senior Human Resource
people of the organization who are currently handling this work. However, inorder to understand
the employees perception about the present practices a sample of 50 employees under different
grades have been randomly selected.
Structured questionnaire method was used for the purpose of data collection, data tabulation and
data analysis on the basis of which conclusion has been drawn. On the basis of feed back and
suggestions received certain recommendations have been received which has been included in
the recommendations part of this report.
OBJECTIVE
1
This project aims at studying the Performance Management System and its effectiveness in an
organization. Performance appraisal is the most significant and indispensable tool for the
management as it provide useful information for decision making in area of promotion and
compensation reviews.
The objective is to study the existing Performance Management System in PUNJ LLOYD LTD.,
GURGOAN.
To study the strengths and weakness of the prevailing performance management system.
RESEARCH METHODLOGY
Research methodology is a way to systematically solve the research problems. It maybe
understood as a science of studying how research is done scientifically. In it we study the various
steps that are generally problem along with the problem behind them. It is necessary for the
researcher to know not only the research methods/ techniques but also the methodology.
Researchers not only need to know how much to develop certain indices or the tests, how to
calculate the means, the mode, the median and the standard deviation or chi-square, how to apply
particular research techniques are relevant and which are not and what would they mean and
indicate and why.
Researchers also need to understand the assumptions underlying various techniques and they
need to know the criteria by which they can decide that certain techniques and procedures will
be applicable to certain problems for the researcher to design his methodology for his problem as
a same may differ from problem to problem.
FOR EXAMPLE:An architect, who designs a building, has to consciously evaluate the basis of his decisions that
is he has to evaluate why and on what basis he selects particulars size, number and location of
doors, windows and ventilators, uses particular materials and not others and the like. Similarly in
research the scientist has to expose the research decisions to evaluation before they are
implemented. He has to specify very clearly and precisely. What decisions he selects and why he
selects them so that they evaluated by others also.
From what has been stated above we can say that research method do constitute a part of the
research methodology.
After the research methodology the data is collected. The task of data collection is to check the
plan, so that the researcher carefully selects the method for his/her own study. There are 2 types
for collecting the data:1. Primary Data
2. Secondary Data
1. Primary Data
Information, which has been gathered for the first time, is called primary data. Here the source
expected to have the desire information are contacted by various methods to collect data. The
reputation and experience of the investigators of collecting the data results in accuracy of
information collected.
2. Secondary Data
Secondary data means data that is already available and it refers to data, which has already been
collected and analyzed by someone else. Secondary data may either published data or
unpublished data. The researcher must be careful in using secondary data. He/she must make a
minute scrutiny because it is possible that secondary data may be inadequate or unsuitable in the
contents of problem, which the researcher wants to study.
There are 4 ways by which the secondary data can be collected:1. Observation Method
2. Interview Method
3. Questionnaire
4. Schedule
But I have used only the questionnaire method for data collection.
QUESTIONNAIRE
In this method a questionnaire is sent to the persons concerned with a request to answer the
questions and return the questionnaire. The questionnaire consists of several questions printed in
a pre decided order and the respondents have to answer the questions on their own.
2. Concisenes
3. Clarity
4. Cooperation of respondents
5. Careful construction
SAMPLING
It is the list containing all items from which the sample it is to be drawn and a sample design is a
definite plan for obtaining a sample from the sampling frame.
NEED FOR SAMPLING
1. Sampling can save time and money as a sample study is usually less expensive than other
method and the result can be obtained at faster speed.
2. Sampling is the best method when large populations are to be studied. A complete census
of the populations may be impossible. Even time and money are not the most important
considerations.
3. Sampling enables accurate measurements as the sample studied are conducted by trained
and experiments investigators.
4. Very often an exact description of a characteristics or exact value of a population
parameter may not be required in such cases sample information may serves the
purposes.
5. Information on which marketing decision are based is usually needed immediately
gathering information from the entire population can be a time consuming process and
may be totally impractical when market information is needed quickly.
6. Especially in quality control situation performing functional test on every item produce is
impossible if the item is destroyed.
SAMPLING TECHNIQUE
By doing surveys in these areas 2 types of techniques is adopted. They are: Simple Random Sampling
Convenience Sampling
SIMPLE RANDOM SAMPLING
5
This is the most widely used method of sampling in which each and every unit of population has
an equal opportunity of being selected in sample. In simple random sampling the sample items
are selected independently of each other that is selection of any item does not influence the
selection of remaining items and all the items have same probability of being selected.
A simple random sampling can be done in 2ways:1. Lottery Method
2. Table Method
1. Lottery Method
In this method small chits of paper mix together represent all items of population. All blind
selection of the desired no of units of sample is then made.
2. Table Method
The lottery method is impossible if population is large hence a random sample may be selected
with the use of random number table. In this each unit of the population may be selected on the
basis of the random numbers appearing in the table. However these methods cannot be applied in
case of infinite populations.
CONVENIENCE SAMPLING
Convenience sampling is so name because it is convenient for the researcher to select the first
few sample items quickly. Rather that to go through the laborious process of obtaining the
probability sample. Convenience sample are widely used when accurate results are not necessary
and both time and money are seriously limited. Selecting sample units from the population
depends solely on the personal convenience of the researcher. Pre testing of questionnaire is
generally done using convenience sample.
For the purpose of data collection and analysis the research methodology used by me was
as follows:
RESEARCH DESIGN- Descriptive re search design is taken up by me for the project.
SAMPLING METHOD- Simple random sampling.
UNIVERSE: Various departmental employees at PLL, Head Office, Gurgoan
SAMPLING UNIT: Employees of PLL, Head Office, Gurgaon
SAMPLE SIZE: 50
RESPONDENTS: Employees of Head Office, Punj Lloyd Ltd.
VISION
To be among the top five EPC companies in the segments and markets we serve by 2012.
MISSION
We will deliver reliable, high-quality solutions for global infrastructure, always ensuring that
integrity, safety and sustainability are at the heart of everything we do.
CORE VALUES
To realize our vision and mission, we always turn to the corporate values that we hold dear.
We will live and deliver these values with uncompromising commitment to safety and
sustainability.
Performance
We are here to make a valuable difference to our stakeholders and we will make it happen
against all odds
Passion
We are differentiated by our Can Do attitude and the fire in our belly
Team work
We can gain from the diversity within our Group by sharing knowledge and resources to
achieve individual and collective success
Agility
We understand stakeholder needs and respond with speed and precision
Reliability
We are trustworthy and reliable, in both thought and action. Our stakeholders can count on us
to deliver, always
COMPANY PROFILE
Passionate and committed, the Punj Lloyd Board brings together a dynamic team of engineering,
business, and social visionaries who provide direction to Punj Lloyds executive management in
a vibrant economic and business environment.
The board consists of senior officials including all active founders, along with members who are
global leaders and high achievers in business and society.
ATUL PUNJ
Chairman
LUV CHHABRA
Director,
Corporate Affairs
RAJAN JETLEY
Independent Director
PAWAN K. GUPTA
Whole Time Director
SCOTT R. BAYMAN
Independent Director
NITEN MALHAN
Non Executive Director
The name Punj Lloyd is synonymous with the construction industry in India. The company Punj
Lloyd started as a joint venture between Punj Sons and the Lloyds, a British company and was
formed in the year 1982. Today, Punj Lloyd is one of the leading engineering and construction
companies with scores of projects executed in India and abroad, in diverse sectors such as Oil &
Gas, Chemicals & Petrochemicals, Fertilizers, Aviation, Telecom, Roads and Bridges. The
9
company has recently been awarded the ISO 9002 certification for installation of cross-country
pipelines, tankages, civil construction, in- plant piping, mechanical, electrical and
instrumentation work on turnkey and conventional basis. Punj Lloyd has a workforce of over
5000 people, including 623 engineers, 950 supervisors and support personnel on company rolls.
The companys policy has been to employ the very best in terms of talent and expertise, to bringin the professionals from a wide array of disciplines and form teams that perform and deliver.
The company believes in regular training of its employees.
It has invested over Rs.2000 million in construction equipment that is regularly serviced and
maintained at the central workshop at Banmore, near Gwalior. To keep up with the changing
times the company has also installed a Wide Area Network of 8000 Intelligent Pentium Nodes
with remote connectivity through VSAT. The company has also implemented the ERP package to
facilitate the availability of the information and the optimum utilization of available resources.
The services of Anderson Consulting were taken to develop and place a strategic information
plan using Oracle Financial, Maximo, Primavera and other software to provide information
seamlessly to all levels of the organization.
In its effort to keep up with the reforms in the business scenario and to meet challenges, the
company has restructured its activities into the following Strategic Business Units (SBUs):
Pipeline
Tankages & Terminals
Turnkey & Composite Construction
High Value Engineering Center
Civil Construction
Telecommunication
Plant & Equipment
Plant & Facility Management
These SBUs acts as independent profits centers. To achieve a distinct edge and deliver effective
solutions to its valued customers, the company will continue to seek ways to ensure sustainable
business growth and become a significant player in the burgeoning construction industry in the
21st century.
cross-country pipeline across the Bombay-Pune stretch acknowledged as the most difficult
pipeline installed in India. It traversed the city, tidal marshes, rivers and creeks. This project was
acclaimed by experts as one of the most challenging pipeline ever to be executed in the country.
Since then the Co. has been involved in laying thousands of kilo meters of pipelines in the Indian
Sub-continent, South East Asia and the Middle East.
Since its inception the numbers of projects completed are:
Kandla-Bhatinda Pipeline
Dahej-Vijaipur Gas Pipeline for GAIL
Mumbai-Manmade Pipeline for Bharat Petroleum Corp. Ltd.
Mangalore-Bangalore Pipeline for Petronet
As a part of its pipeline construction activity the company has also done a reasonable number of
river crossings across major rivers by Horizontal Directional Drilling Technique. Apart from the
10 crossings, which were done for the prestigious Kandla-Bhatinda Pipeline project, the
company has also undertaken jobs for lengths varying from 300 Mts. to 900 Mts. The company
has the expertise to handle any type of pipeline through any kind of terrain, anywhere in the
world.
TANKAGES & TERMINALS
Punj Lloyd builds all types of Storage Tanks for the oil and gas industry including Cone Roof,
Floating Roof, Mounded Vessels and Double Walled Cryogenic Tanks. The company designs,
engineer, construct and do project management, right from conceptualization and preparation of
design data to procurement, quality controls, installation and inspection. And for optimum
performance, the company adopts stringent quality control measures and flexible execution
techniques. Today Punj Lloyd has the capability to offer the latest in tankage technology to its
clients.
The clients include countrys well-known names such as Indian Oil Corporation Ltd., Oil &
Natural Gas Corp., Bharat Petroleum, IBP Co Ltd., Reliance and Essar.
TURNKEY & COMPSITE CONSTRUCTION
Punj Lloyd ranks amongst the leading companies in the country for turnkey and specialized
construction. This business unit of Punj Lloyd undertakes lump sum turnkey projects and
provides full range of services needed to plan, design, engineer and construct to meet the specific
requirements of the client. The projects handled by the SBU include Gas Gathering and
Processing Facilities, Captive Power Plants, Compressor Stations, Cooling Water System.
Access to latest computer systems and software tools like Caeser II, Intools, ETAP, STAAD,
Primavera, PDMS, Microstation and AutoCAD.
Company owned 150 MBPS connectivity between New Delhi and Europe / USA.
CIVIL CONSTRUCTION
This SBU mainly focuses on three independent business units: Heavy foundation, Industrial
Construction and Highways / Bridges. In Industrial Civil and Building construction the company
has executed a number of projects like Underground Tanks for treated water, Water Treatment
Plant and Pumping Facilities for Oil India Ltd. near Jaisalmer, Rajasthan as well as Intake Well
for Chambal Fertilizer Ltd. and large number of tank Pad Works.
In Industrial construction, the company is executing a job of Soda Ash Plant at Kala Talav near
Bhavnagar (Gujarat) for Nirma Ltd. In Heavy foundation the company has completed piling and
pile cap works at Raja Garden Fly over, Delhi for UP State Bridge Corp. Ltd. For this, the
company has imported the latest state-of-the-art BAURES Pile Driving Rig BG-15 and has set
up concrete batch Plants and other modern construction equipment for doing the work. The
company is also taking up the work of driven piles for Soda Ash Plant at Kala. In roads and
Bridge works, ICC SBU has recently bagged a prestigious road project on BOOT basis worth Rs.
2355.05 million in Gujrat.
TELECOMMUNICATION
With over three decades of expertise in construction and a formidable technical infrastructure,
Punj Lloyds total capability is illustrated through its execution of multi-disciplinary projects.
The telecommunication division is the youngest in the fold and is a natural extension of the fiber
optic works that the company has been carrying out in the oil / gas sectors alongwith the pipeline
construction activities. This division is targeting the immense opportunities that exist in the
Indian Telecommunication sector.
The company was involved in the laying of around 1200 km of Optical Fibre Cable alongside
cross-country pipelines. A number of other projects involving several hundred kms of OFC
laying are in hand / under execution. A Hybrid Fibre Coaxial pilot project for Multimedia
transmission to around 30,000 houses in Mohali has been executed in record time for Motorola /
Essar Com. Vision. Currently the company has executed a project for M/s Bharati Telenet Ltd. in
M.P. for basic services. It involves backbone of around 1500 km and access network in several
cities.
Being a quality conscious and resourceful Construction Company with excellent equipment base
and trained manpower, the company proposes to undertake large construction contracts for
implementation of telecom projects, both for basic and cellular circles. The Co. will undertake
the laying of OFC and Copper cable for backbone and access network, outside plants, supply and
erection of towers and masts of Digital Microwave Communication System and GSM Cellular
network along with other related civil works.
12
Maintenance & preservation of 740 MW gas based power plant (Phase 1) and LNG storage
and regasification terminal (Phase 2) at Dabhol. Asset maintenance and preservation of the
Daewoo Automobile Plant, near Delhi.
Maintenance & toll management for Vadodara-Halol Expressway in Gujarat.
Operation & Maintenance of Gas Processing and Gathering Facilities in Rajasthan.
support, financial planning and internal controls in order to preserve and maximize the
companys net worth.
MARKETING
Marketing acts as the driving force to position the company in the chosen global market
place. This is achieved by servicing the customers through a highly proactive approach.
MATERIAL
Materials Dept. is committed to providing various SBUs and departments, the desired quality
and quantity of materials and services at optimum cost and within the desired timeframe.
This is achieved through the effective utilization of available skills/ resources, systematic
inventory control and harmonious relationship with vendors and customers.
ESTIMATION
As a focal point for the key function of the bidding process, this department delivers in time
high quality proposals for multifarious projects by conceptualization, effective co-ordination,
efficient collection / analysis of data and accurate costing.
The above departments work in careful co-ordination & synchronization in order to achieve
the long term & short term goals of the individual department as well as the company as a
whole. These goals are derived from the vision & mission statement. The quality
commitment serves as a means to achieve these goals in the best possible manner, which is
acceptable to the customer.
HR FUNCTION AT PLL
The HRD department of Punj Lloyd is a relatively young department. It was set up in the
year 1993.Since then it has grown by leaps and bounds. The essence of HRD department
is to make the individuals a part of its vision and objectives. The different functions
performed by the HRD Department in this company are as follow:
14
The company also goes for Campus placements. For the vacancies at the lower level
candidates are selected on the basis of written test, group discussion and interviews.
INDUCTION
Every new joinee is formally placed and oriented by the HRD department in the
organizational environment. This is achieved by conducting induction programs, which
are organized in batches. The participants are given introduction of the company, its
history, the people associated, functioning of various SBUs, ISO awareness and
companys rules & regulations and policies, along with an induction booklet.
PERFORMANCE APPRAISAL
The Company has a well-laid down performance review system for the regular
employees. Trainees and probationers are not covered under this system as they are
15
evaluated separately. The period of review is 1st January to 31st December of the calendar
year. Employees are granted increments and promotions based on their performance
effective from 1st July of the following year. The company has two types of appraisals,
self-appraisal and normal. Where the former is for only top management the latter is for
the lower cadre people.
EXIT INTERVIEWS
Whenever an employee desires to leave the company he is required to fill up an Exit
Interview from. The HRD department analyses the information-collected from the Exit
Interview from and takes steps to plug the loopholes, if any.
INNOVATIVE FORUM
To encourage individuals to share their ideas and responsibilities in a positive, creative
and innovative manner, the concept of Innovative Forum was introduced in the company.
The objectives of this forum are:
Transformation of Human Resources into Human Capital1. To make the participants realize that they are not merely employees but an
integral part of the organization and that the organization firmly believes in their
active involvement.
2. To recognize and reward individuals creative and innovative contributions.
Disciplined
Process is simple and follow a pre laid calendar
17
STEPS
GOAL SETTING: It is done in March every year for the coming financial year. 3-5 goals are
formed up by the superior.
PERFORMANCE OBJECTIVE: For each goal, performance objective is set up.
WEIGHTAGE (in %): Weightage is assigned to each goal by review manager in whole numbers
from 1-100. The cumulative weightage of all the goals should be 100%,
ANNUAL TARGET- BASE: 1-3 lines describing the basic expectation from individual.
ANNUAL TARGET STRETCH: 1-3 lines describing the stretch target expectation from
individual.
MID YEAR ASSESSMENT (Individual Comments): Progress report update, by individual
during mid- year is taken with regards to said performance objective.
MID YEAR ASSESSMENT (Manager Comments): Progress report update, by manager during
mid- year is taken with regards to said performance objective.
YEAR END ASSESSMENT (Individual Comments): Progress report update, by individual
during year- end is taken with regards to said performance objective.
18
YEAR END ASSESSMENT (Manager Comments): Progress report update, by manager during
year-end is taken with regards to said performance objective.
PERFORMANCE RATING: Manager has to assign rating to the individual on the scale of 1-4
basis, the rating guidelines for performance assessment for the said objective.
OVERALL PERFORMANCE RATING: Manager calculates the weighted average of all goals
with the help of following formula
Weighted Average= Weightage Goal 1* Performance Rating Goal 1 + Weightage Goal 2*
Performance Rating Goal 2+ and so on for all the goals.
RATING DECRIPTION FOR PERFORMANCE ASSESSMENT
SCORE
4
3
2
1
DESCRIPTION
Consistently exceeds expectation in all areas of work.
Meets expectations of the role in areas of work.
Meets some expectations, needs improvement in some key areas.
Does not meet expectations of the role. Needs immediate improvement in
job performance/ needs a role change.
Bell curve is used for performance management. This theory was conceived by Herrnstein &
Murray in 1994.
The logic is, as per the bell-curve rule, is to classify certain number of employees forcefully
under some defined rules.
After collecting the ratings of every employee a graph is prepared, where ratings or scores are on
one hand and the number of employees on other.
4 point scale taken up by the company forms a bell curve in which 10% of total strength of
employees fall in Below Average group, 50% falls in Average, 30% falls in Above Average group
and 10% falls in Outstanding group.
Promotion is given from the outstanding group of 10% employees up to Senior Manager Post.
Promotions are due after 2 years. In Punj Lloyd Ltd minimum of 5% increment in salary is given
yearly.
ROLES
19
ROLE OF REVIEWEE
Revisits his/her goals objectively
Assesses his/her achievement against each goal
Writes his/her achievement against all goals in the space provided
Shares his/her achievement with his/her reviewer
ROLE OF REVIEWER
Rates his/her Reviewer against each goal on a 4 point scale
Provides feedback to his/her reviewee in person about
o Achievements
o Areas of concern/ under achievement
o Developmental needs
Submits his/her rating in Oracle.
ROLE OF HR
Ensures the sanity of the entire process
Collates all ratings of reviewers and submits the consolidated report to SBU
Heads/Functional Heads for normalization across organization.
Issues the increment letter
Salary, promotion, location change and other recommendations collated and informed to
all via letter.
PMS at Punj Lloyd is now done online using oracle database management system.
20
TRAINING
Training recommendations are provided at the beginning of the assessment year basing the
perceived expectations from the individual for performing his/her role effectively and efficiently.
Time frame of the training is also mentioned along with training
Training at Punj Lloyd Ltd is of two type
-
Behavioral
Technical
Few training provided under behavioral training are leadership development skills,
communication skills, managerial skills, team building etc whereas training like financial
planning, project financial planning etc fall under technical training.
LITERATURE REVIEW
The concept of performance management has been one of the most important and positive
developments in the sphere of human resource management in recent years. The phrase
PERFORMANCE MANAGEMENT was first coined by Beer and Ruh in 1976. But it became
recognized as a distinctive approach in mid 1980s, because of the growing realization that a
more continuous and integrated approach was needed to manage reward performance.
21
22
The main purpose of performance management is to link individual objectives and organizational
objectives and bring about that individuals obey important worth for enterprise. Additionally,
performance management tries to develop skills of people to achieve their capability to satisfy
their ambitiousness and also increase profit of a firm.
Performance management system (PMS) is the heart of any people management " process in
organization. Organizations exist to perform. If people do not perform organizations don't
survive. If people perform at their peak level organization can compete and create waves.
Performance management systems if properly designed and implemented can change the course
of growth and pace of impact of organizations. 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. Difference between both of them is summarized below.
Performance Appraisal
Top down assessment
Annual appraisal meeting
Use of ratings
Monolithic system
Focus on quantified objects
Often linked to pay
Bureaucratic complex paperwork
Owned by the HR department
Setting up a good performance management system doesn't happen overnight or by accident. You
need to consider its design and carefully plan how it will work before managers begin using it to
evaluate employees.
A performance management system should provide employees with these four basic benefits:
1.
2.
3.
4.
The goal of a performance management system is to help boost employee performance and,
ultimately, the productivity of the business. For it to be effective, a performance management
system should incorporate the following critical elements:
Updated Job Descriptions
Job descriptions should clearly describe the employee's current duties and performance
expectations. Position descriptions should be specific, clearly defining the job function, required
skills, deadlines and goals, and should delineate expectations for the employee's relations with
peers and customers.
Keep job descriptions current, especially during times of organizational change. Rapid growth
and downsizing inevitably add new responsibilities and shift employees' workloads.
Performance Measures and Standards
Once you have job descriptions in place; you need to establish performance standards that
describe what constitutes below-average, average, and above-average performance. Start by
thinking about the best- and worst-case scenarios until you reach realistic standards for
measuring performance
Next, determine how you're going to measure the expectations outlined in the job description.
This requires both objective and subjective methods of assessment. In some situations it's easy to
gauge performance by looking at the numbers: for example, how many new accounts an
employee brought in or how many products an employee assembled.
Quantifying an employee's coping skills, customer service skills or attitude is much more
difficult. Some managers also have biases or poor evaluation skills. Establish clear guidelines
and measures that eliminate potential bias and prevent evaluators from subjectively determining
what constitutes excellent and unacceptable behavior.
Evaluator Training
Research shows that managers with poor communication or interpersonal skills are often the
downfall of a company's otherwise sound performance management program. All managers need
training on how to communicate and how to conduct fair, nonjudgmental and consistent
24
individual to take on
higher responsibilities.
THE DEVELOPMENT
OBJECTIVE
To provide feedback to individuals on their performance levels and
onTo
counsel
and coach levels
sub ordinates so that they improve their
current
competency
To generate data required for decisions on salary , bonus and
performance and develop competencies.
promotions
To motivate
. subordinates through recognition and support.
To strengthen supervisor subordinate relations.
To diagnose individual and organizational competencies, so that
25
26
Communication only takes place when the transference has taken place and has been received
and understood by the subordinate. Therefore feedback is necessary from the subordinate to the
manager. Satisfactory feedback censures that the information communicated by the manager has
been received and understood in the way it was intended.
The third step in the appraisal is the measurement of performance. To determine what actual
performance is, it is necessary to acquire information about it. We should be concerned with how
we measure and what we measure.
What we measure is probably more critical to the evaluation process than how we measure, since
the selection of the wrong criteria can result in serious dysfunctional consequences. And what we
measure determines, to a great extent, what people in the organization will attempt to excel at.
One of the most challenging tasks facing managers is to present an accurate appraisal to the
subordinate and then have the subordinate accept the appraisal in a constructive manner.
Appraising performance touches on one of the most emotionally charged activities the
assessment of another individual's contribution and ability. The impression that subordinates
receive about their assessment has a strong impact on their self-esteem and, very important, on
their subsequent performance.
The final step in the appraisal is the initiation of corrective action when necessary.
Corrective action can, be of two types.
One is immediate and deals predominantly with symptoms. The other is basic and delves into
causes.
Immediate corrective action often described as "putting out fires," whereas basic corrective
action gets to the source of deviation and seeks to adjust the difference permanently.
Immediate action corrects something right now and gets things back on track.
27
judgment to which a host of additional facts and impressions must somehow be added. There is
no single form or way to do this.
The best approach appears to be a ranking technique involving pooled judgment.
The two most effective methods are alternation ranking and paired comparison ranking.
1.
Alternation ranking:
Ranking of employees from best to worst on a trait or traits is another method for evaluating
employees. Since it is usually easier to distinguish between the worst and the best employees
than to rank them, an alternation ranking method is most popular. Here subordinates to be rated
are listed and the names of those not well enough to rank are crossed. Then on a form as shown
below, the employee who is highest on the characteristic being measured and the one who is the
lowest are indicated. Then chose the next highest and the next lowest, alternating between
highest and lowest until all the employees to be rated have been ranked.
2.
Paired-comparison ranking:
This technique is probably just as accurate as alternation ranking and might be more so. But
with large numbers of employees it becomes extremely time consuming and cumbersome.
Both ranking techniques, particularly when combined with multiple rankings (i.e., when two or
more people are asked to make independent rankings of the same work group and their lists are
averaged), are among the best available for generating valid order-of-merit rankings for salary
administration purposes.
ASSESSMENT CENTERS
So far, we have been talking about assessing past performance. What about the assessment of
future performance or potential? In any placement decision and even more so in promotion
decisions, some prediction of future performance is necessary. How can this kind of prediction
be made most validly and most fairly?
360 DEGREE FEEDBACK
Many firms have expanded the idea of upward feedback into what the call 360-degree feedback.
The feedback is generally used for training and development, rather than for pay increases.
Most 360 Degree Feedback system contains several common features. Appropriate parties
peers, supervisors, subordinates and customers, for instance complete survey, questionnaires on
an individual. 360 degree feedback is also known as the multi-rater feedback, whereby ratings
are not given just by the next manager up in the organizational hierarchy, but also by peers and
subordinates. Appropriates customer ratings are also included, along with the element of self
appraisal. Once gathered in, the assessment from the various quarters are compared with one
another and the results communicated to the manager concerned.
Another technique that is useful for coaching purposes is, of course, MBO. Like the critical
incident method, it focuses on actual behavior and actual results, which can be discussed
objectively and constructively, with little or no need for a supervisor to "play God."
29
Advantages
Instead of assuming traits, the MBO method concentrates on actual outcomes. If the employee
meets or exceeds the set objectives, then he or she has demonstrated an acceptable level of job
performance. Employees are judged according to real outcomes, and not on their potential for
success, or on someone's subjective opinion of their abilities.
The guiding principle of the MBO approach is that direct results can be observed easily. The
MBO method recognizes the fact that it is difficult to neatly dissect all the complex and varied
elements that go to make up employee performance.
MBO advocates claim that the performance of employees cannot be broken up into so many
constituent parts, but to put all the parts together and the performance may be directly observed
and measured.
Disadvantages
This approach can lead to unrealistic expectations about what can and cannot be reasonably
accomplished. Supervisors and subordinates must have very good "reality checking" skills to use
MBO appraisal methods. They will need these skills during the initial stage of objective setting,
and for the purposes of self-auditing and self-monitoring.
Variable objectives may cause employee confusion. It is also possible that fluid objectives may
be distorted to disguise or justify failures in performance.
BENEFITS
Managing employees performance facilitates the effective delivery of sales plans. There is a
clear and immediate correlation between using performance management programs and
improved sales result.
Direct financial gains
-
Sales growth
Eliminates over payments
Saves time and automates processes
Accommodates plan changes
30
31
RANGE
Less than 2 years
2-5 years
More than 5 years
NO.OF
RESPONDENTS
8
32
10
50
IN
PERCENTAGE
16%
64%
20%
100%
From the table and pie chart shown above it can be interpreted that
16% of the respondents have been working in the company for less than 2 years.
64% of the respondents have been into the company for 2 to 5 years.
20% of the respondents have been working with the company for more than 5 years.
So, it can be interpreted that majority of the respondents have an experience with the company
which ranges between 2 to 5 years.
TABLE
SERIAL NO.
DURATION
NO.OF
RESPONDENTS
IN PERCENTAGE
Quarterly
NIL
Six monthly
NIL
Annually
50
100%
50
100%
Total
INTERPRETATION:
From the table and pie chart shown above it can be inferred that
So, it can be inferred that the respondents of the organization are aware of the fact that
performance appraisal is done on yearly basis in the organization, which is general trend
followed in most of the companies.
3). Does your superior consider your achievements in relation to the performance
standards?
TABLE
33
SERIAL NO.
RESPONSE
1
2
3
Total
NO.OF
RESPONDENTS
38
9
3
50
IN PERCENTAGE
76%
18%
6%
100%
INTERPRETATION:
From the table and pie chart shown above it can be concluded that
i.)76% of the respondents say that their superior every time reviews their achievement by
comparing their current performance with performance standards.
ii.)18% of the respondents are of the view that their superior sometimes reviews their
achievement by comparing their current performance with performance standards.
iii)6% of the respondents think that their superior never reviews their achievement by comparing
their current performance with performance standards.
RESPONSE
NO.OF
RESPONDENTS
IN PERCENTAGE
34
1
2
3
Total
Yes
No
Cant say
13
21
16
50
26%
42%
32%
100
INTERPRETATION:
From the table and pie chart shown above it can be concluded that
i.)26% of the respondents would like to review current performance management system if given
a chance.
ii.)42 % of the respondents would not like to review current performance management system if
given a chance.
iii.)32% of the respondents cant say whether they would like to review the current
performance management system if given a chance or not.
5) Do you think a clear definition of goals enables you to improve your performance?
TABLE
SERIAL NO.
RESPONSE
Substantially
NO.OF
RESPONDENTS
39
IN PERCENTAGE
78%
35
2
3
4
5
Total
To certain extent
Marginally
To less extent
Not at all
9
2
Nil
Nil
50
18%
4%
0
0
100
INTERPRETATION:
From the table and pie chart shown above it can be concluded that
i.78% of the respondents think that clear definition of goals enables the employees to
substantially improve their performance.
ii.18% of the respondents think that clear definition of goals enables the employees to improve
their performance but up to a certain extent.
iii.4% of the respondents think that clear definition of goals marginally enables the employees to
improve their performance.
iv.None of the respondents think that clear definition of goals enables affect their performance to
a less extent or not at all.
Thus it can be inferred that maximum of the respondents think that goals should be clearly
defined as it enhances the performance.
6) Do you get a chance to rate your own performance?
TABLE
SERIAL NO.
RESPONSE
Always
NO.OF
RESPONDANTS
41
IN PERCENTAGE
82%
36
2
3
4
5
Total
Often
Sometimes
Rarely
Never
9
NIL
NIL
NIL
50
18%
0
0
0
100
INTERPRETATION:
From the table and pie chart shown above it can be concluded that
i.82% of the respondents are of view that they are always given a chance to rate their
performance.
ii.18% of the respondents say that they are often given a chance to rate their performance.
iii.None of the respondents say that they are given a chance to rate their performance only
sometimes, rarely or never.
Thus it can be concluded that company follows a system in which employees rate their own
performance, generally known as SELF APPRAISAL.
7) How much degree of consideration is given to the following?
TABLE
SERIAL NO.
RESPONSE
1
2
NO.OF
RESPONDENTS
38
2
IN PERCENTAGE
76%
4%
37
3
4
5
Total
Merit only
Seniority only
Any other, specify
10
Nil
Nil
50
20%
0
0
100
INTERPRETATION:
From the table and pie chart shown above it can be concluded that
i.76% of the respondents say that merit cum seniority is given significant degree of
consideration.
ii.4% of the respondents say that seniority cum merit is given significant degree of consideration.
iii.20% of the respondents say that only merit is given significant degree of consideration.
iv.None of the respondents say that only seniority is given significant degree of consideration.
v.Nobody specified any other response.
Thus it can be inferred that merit plays a vital role in the company as compared to seniority.
RESPONSE
1
2
3
Substantially
To certain extent
Marginally
NO.OF
RESPONDANTS
2
7
26
IN PERCENTAGE
4%
14%
52%
38
4
5
Total
To less extent
Not at all
13
2
50
26%
4%
100
INTERPRETATION:
From the table and pie chart shown above it can be concluded that
i.4% of the respondents think that the promotional policy is substantially linked with the
performance appraisal system.
ii.14% of the respondents think that the promotional policy is linked with the performance
appraisal system up to a certain extent.
iii.52% of the respondents think that the promotional policy is marginally linked with the
performance appraisal system.
iv.26% of the respondents think that the promotional policy is linked with the performance
appraisal system to a less extent.
v.4% of the respondents say that promotional policy is not at all linked to the performance
appraisal system of the company.
Thus it can be concluded that respondents believe that promotional policy is not well linked to
the performance appraisal system.
9) In your opinion does the performance management system of the company identifies the
training needs?
TABLE
SERIAL NO.
RESPONSE
1
2
3
4
Substantially
To certain extent
Marginally
To less extent
NO.OF
RESPONDENTS
10
31
7
2
IN PERCENTAGE
20%
62%
14%
4%
39
5
Total
Not at all
NIL
50
0%
100
INTERPRETATION:
From the table and pie chart shown above it can be concluded that
i.20% of the respondents are of the view that the performance management system of the
company substantially identifies the training needs.
ii.62% of the respondents say that the performance management system of the company
identifies the training needs up to a certain extent.
iii.14% of the respondents believe that the performance management system of the company
identifies the training needs marginally.
iv.4% of the respondents say that the performance management system of the company identifies
the training needs up to a less extent.
v.None of the respondents thinks that the performance management system of the company not
at all identifies the training needs.
Thus it can be inferred that performance management system of the company identifies the
training needs appreciably aptly.
10) Does the company adopt systematic training after identification of the same?
TABLE
SERIAL NO.
RESPONSE
1
2
3
4
5
Substantially
To certain extent
Marginally
To less extent
Not at all
NO.OF
RESPONDENTS
NIL
3
26
16
5
IN PERCENTAGE
0
6%
52%
32%
10%
40
Total
50
100
INTERPRETATION:
From the table and pie chart shown above it can be concluded that
i.None of the respondents are of view that systematic training is followed at the company
substantially.
ii. 6% of the respondents believe that the company adopts the systematic training up to a certain
extent.
iii.52% of the respondents say that the company adopts the systematic training marginally.
iv.32% of the respondents say that the company adopts the systematic training to a less extent.
v.10% of the respondents answered that the company not at all adopts the systematic training.
Thus, it can be interpreted that Performance Management System of the company identifies the
training needs aptly but does not adopt systematic training after identification of the same.
11) Does performance management leads to identification of hidden potential of the
employees?
TABLE
SERIAL NO.
RESPONSE
1
2
3
4
5
Substantially
To certain extent
Marginally
To less extent
Not at all
NO.OF
RESPONDENTS
13
15
12
7
3
IN PERCENTAGE
26%
30%
24%
14%
6%
41
Total
50
100
INTERPRETATION:
From the table and pie chart shown above it can be concluded that
i.26% of the respondents think that performance management system substantially leads to
identification of hidden potential of the employees.
ii.30% of the respondents think that performance management system leads to identification of
hidden potential of the employees up to a certain extent.
iii.24% of the respondents think that performance management system marginally leads to
identification of hidden potential of the employees.
iv.14% of the respondents think that performance management system identifies potential to a
less extent.
v.6% of respondents believe that it does not lead to the identification of hidden potential.
Thus it can be deduced that Performance Management System identifies the hidden potential of
the employees well.
12) What is your expectation from performance management system?
Rank them on 7 point scale, 7 being most appropriate and 1 being least.
TABLE
RANK
1
ATTRIBUTES
Salary
0
administration &
benefits
Determination of 0
promotion
14
34
19
25
42
Tool
for
identification of
training needs.
An insight into
your strengths &
weaknesses
Career
and
succession
planning
Goal setting
10
20
15
11
17
19
16
30
20
22
INTERPRETATION:
From the table shown above it can be concluded that
i.60% respondents expect that PMS for Career and succession planning as their first priority.
ii.68% respondents expect that PMS shall be used for Salary administration & benefits.
CONCLUSION
The response of the question about existing grievance settlement is not satisfactory about 88%
of the respondants feels that thegreviance settlement system is not effective. 42% of the
respondants are of the opinon that while establishing the work objective their wiilingness and
consent is not taken into consideration by their superiors . The goals of the indiviual employees
are little bit)maginally clear as per the views expressed by 46% of the respondants. About
fairness and reasonability of the current salary offered to employee 54% of the respondantants
slightly agree that it is reasonable.A large percentage about 52% of the respondants are of the
opinion that the training programmes adopted after the identification of the training needs is less
effective.There is no personal cunselling after the appraisal is over. Not even a single respondent
is of the opinion that the pms existing in the organization is outstanding.
43
LIMITATIONS
1. Although all attempts were made to make this an objective study, biases on the part of
respondents might have resulted in some subjectivity as many employees gave guarded
answers to some crucial questions.
2. Though, no effort was spared to make the study most accurate and useful, the sample
Size selected for the same may not be the true representative of the Company, resulting
in biased results.
3. Some of them did not fill the questionnaire due to lack of time.
4. Some of the questionnaire could not be completed due to reasons other than time factor.
5. The possibility of better results, using deeper statistical techniques in analyzing and
interpreting data may not be ruled out.
44
RECOMMENDATONS
1. Ojectives of performance management system should be made clearer to the employees
4. It is apparent from the analysis that training needs are aptly identified by Performance
Management System but the company does not adopt systematic training after
identification of the same. Thus the whole identification process becomes unproductive.
Therefore company should pay attention to such issue as training plays an important part
in nurturing the future of employees.
5. Feedback and counselling are the vital elements of any Performance Management
System. The appraisal should also be followed up with a session of counseling which is
often neglected in many organizations. Counseling involves helping an employee to
identify his strengths and weaknesses to contribute to his growth and development.
Purpose is to help an employee improve his performance level, maintain his morale,
guide him to identify and develop his strong points, overcome his weak points, develop
new capabilities to handle more responsibilities, identify his training needs. Providing
feedback plays constructive role. Feedback provides for the area of improvement. But
mechanism of counselling and feedback is not followed in strict term in the organisation,
as clear from the analysis. It should be made more frequent and a continuous process. If
the performance counselling and feedback sessions are of good quality then it will result
in increased employee motivation to improve performance.
6. The existence of a proper grievance channel is also of utmost importance as employees
should be given a chance to convey their complaints to the top management.
7. Majority of employees are satisfied with the current Performance Management System
but continous efforts should be put in to make it more effective.
BIBLIOGRAPHY
Sahu, R K Performance Management System, first edition, Excel books
Pascal Robert, e book, Performance Management.
Armstrong Micheal, e book, Managing Performance.
WEBSITE
46
http://www.pdf-search-engine.com/performance-management-pdf.html
http://en.wikipedia.org/wiki/Performance_management
http://derekstockley.com.au/h-performance-management.html
Substantially
To certain extent
Marginally
To less extent
Not at all
Always
Often
Sometimes
Rarely
Never
Substantially
To certain extent
Marginally
To less extent
48
e. Not at all
9. In your opinion does the Performance Management System of the company identifies the
training needs?
a.
b.
c.
d.
e.
Substantially
To certain extent
Marginally
To less extent
Not at all
10. Does the company adopt systematic training after identification of the same?
a.
b.
c.
d.
e.
Substantially
To certain extent
Marginally
To less extent
Not at all
11. Does Performance Management leads to identification of hidden potential of the employees?
a.
b.
c.
d.
e.
Substantially
To certain extent
Marginally
To less extent
Not at all
DETAIL
a.
b.
Determination of promotion
c.
Decision on layoff
RANK
49
d.
Goal setting
e.
f.
24. Give some suggestions for the improvement in the existing system.
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
_______________________
50