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Managing human resources in todays dynamic environment is becoming more and more
complex as well as important. Recognition of people as a valuable resource in the
organization has led to increases trends in employee maintenance, job security, etc
My research project deals with Performance Management System as carried out at Liberty
puram (Kutail). In this report, I have studied &evaluated the performance Management
System process as it is carried out in the company.
In the first section of my report, I have conducted a research study to evaluate the process of
performance Management System as carried out at Liberty puram (Kutail).
The second section of my report deals with a detailed company profile. It includes the
companys history: its activities and operations, organizational structure, etc. this section
attempts to give detailed information about the company and the nature of its functioning.
The third section deals with performance Management System. In this section, I have given a
brief conceptual explanation to performance Management System. It contains the definition,
process and significance of performance Management System. this section also contains my
findings, conclusions, suggestions and feedback.
Acknowledgement
A drop of ink makes million think
Any research work is never an individual effort. It is contributory effort of many hearts &
heads. I take this opportunity to express my appreciation & gratitude to all those, with whom
I worked, interacted and whose insides and thoughts help me in furthering my knowledge and
completion of my project report.
A project of this nature is the product of the ideas and experiences of several persons. So, an
undertaking of a work like this is never the outcome of efforts of a single person, rather it
bears the imprints of a number of persons who are behind the curtain.
First of all, I would like to extend my thanks to MR. ADESH GUPTA C.E.O., liberty shoes
Ltd. who exceeded to my request and allowed me to work on this project.
At the earliest, I express my gratitude towards MR.Y. K. SHARMA (Industrial Guide) as a
Asstt. Manager- H.R. of Liberty Shoes Ltd. he always gave valuable guidance through over
the tenure of my work. I also provide thanks to Mr. TEJPAL, JOGINDER and VIKRANT &
other staff member of HR Deptt. of Liberty Shoes Ltd. for their help & cooperation.
I would also thanks to respected director sir and other faculty members of my institute.
Last but not least, I would like highly thanks to my father and all of them who help me
directly and indirectly in accomplishment of my training and give highly cooperation in this
project.
NITIKA RAGHAV
CONTENT
CHAPTER
TITLE
PAGE NO.
NO.
1)
INTRODUCTION
2)
RESEARCH METHODOLOGY
3)
INDUSTRY PROFILE
conclusions and at last carefully testing the conclusions to determine whether they fit the
formulating hypothesis.
RESEARCH METHODOLOGY
Research methodology is a way to systematically solve the problems. It is a way of studying
how research is done scientifically. It consists of various steps that are generally adopted by
the researcher in studying his research problems along with the logic behind them.
For solving the problem related to performance management of the LIBERTY company
research is done by using the 360 degree performance appraisal method which is helpful in
analysis of , performance management simplification of accounting data, helpful in
comparative study, helpful in locating the weak spots of the business,
helpful in forecasting, estimating the trends of the business, effective control etc.
RESEARCH DESIGN
Research design is a framework or the blue print for conducting the research project.
Research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in procedure. It
includes an outline of what the researcher will do from writing the hypothesis and its
operational implications to the final analysis of data.
An overall plan of action to be followed during an experiment to be sure that the
objective are met. Often the specific procedures to solve problems are included in the
research design
The main objective of over study is to analysis the performance management of the firm
through 360 degree performance appraisal method. This technique are helpful in solving the
problems which we faced during the research. Research Design refers to "framework or plan
for a study that guides the collection and analysis of data". A typical research design of a
company basically tries to resolve the following issues:
Determining Data Collection Design
Determining Data Methods
Determining Data Sources
Determining Primary Data Collection Methods
Developing Questionnaires
Determining Sampling Plan
SAMPLE DESIGN
Sample design is a technique or the procedure which the researcher would adopt in selecting
items for the sample. It is not possible for any researcher to include each and every member
of the universe in his research process. So, he selects small portion of the universe, which is
its true representative. This group known is sample and this process is called Sampling.
Sample designs are basically of two types:
Non Probability Sampling
Probability Sampling
NON- PROBABILITY SAMPLING
In this items for the sample are selected deliberately by the researcher, by using his own
judgment. In this every item of universe does not have equal chances of inclusion in the
sample.
It can be of following type:
Convenience Sampling
Judgment Sampling
Quota Sampling
PROBABILITY SAMPLING
It is also known as Random Sampling or Chance Sampling. In this, each population element
has equal chance of selection.
It can be of following type:
Random Sampling
Stratified Sampling
Cluster Sampling
Multi stage Sampling
In this project, non - probability sampling has been used because sample is selected by own
view and every item of universe has not equal chances of being selected. Under nonprobability sampling, convenient sampling has been used because sample has been selected
according to own convenience.
Sampling size: This refers to the number of person institution to be surveyed. Total sampling
size of this study is 50
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Sampling procedure: This refers to the procedure by which respondents should be chosen.
This study is conducted on the basis of convenience sampling and judgment sampling.
DATA COLLECTION METHODS:
1. Primary data is gathered through a survey conducted on employees.
2. Secondary data is collected from internet, files, record books, company manuals and books
Research instrument used in this project report for collecting primary data is
Questionnaire
INSTRUMENT USED: Questionnaire
SAMPLING TECHNIQUE: Random sampling
DATA ANALYSIS:
The data collected through survey was analyzed with the help of simple percentages, tabular
and graphic methods which included pie charts, bar graphs are used to analyze the data.
LIMITATIONS
1) Analysis was based on sample results
2) Some employees were not very open, forthcoming in writing their responses
3) It was difficult to get questionnaire filled by employees due to their busy schedule
4) Some employees had biased response style in dealing with sensitive issues
Chapter 3
INDUSTRY PROFILE
7
Chapter 4
Company profile
The Company
INTRODUCTION
Liberty Group, come a long way since it began its operations a little over 50 years ago in the
city of Karnal, Haryana. The emphasis since the very beginning has been to offer great
products at value for money or affordable prices. This led to the development of Liberty
Patented HUMANTECH approach which synergize traditional workmanship with state of
the art technology to provide the best quality at the most competitive price.Liberty Group
companies, set various benchmarks in Footwear Manufacturing within the Groups
Production facilities and also to Industry.Liberty as a brand is constantly evolving to keep
pace with the changing trends, styles, beliefs and aspirations of people while maintaining the
sanctity of certain traditions like workmanship and good value.
The importance of footwear is highly recognized in western and other advanced countries, so
the footwear industry grew in full swing that originated big companies like Nike, Reebok,
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Gucci, and Addidas etc. But the scenario in India is somewhat different and regretfully as the
industry could not develop itself despite the fact that India being second largest populated
country in the world, surplus manpower and resource of raw material, whatever the reason
being.
Till the mid of 20th century, the bulk of shoe industry was in cottage sector. Professional
cobblers were responsible for production of every type of shoes. But in the past one decade
the situation has completely changed because new generation of professionals did not adopt
this line as shoemaker and preferred to join white-collar jobs.
HISTORY
Liberty Group started operation in 1954 and comprises of five firms, namely:
Liberty Footwear Company
Liberty Enterprises
Liberty Leathers
Liberty Group Marketing Division
Liberty Shoes Limited.
It was the 25th December of 1954 when India was nurturing its growth as a free country, three
dreamers in a small town in erstwhile Punjab thought of producing an Indian brand of
footwear to make a basic necessity available to their countrymen.
Mr. D P Gupta, Mr. P D Gupta and Mr. R K Bansal allowed their vision to cross every
barrier and thought cutting-edge technologies to their own country. Within a short span of
time, the name, Liberty became a synonym to quality footwear in the domestic market and
this encouraged the company to invest further for enhancing production capacities and to
cater to the demands of international markets.
The company was incorporated on the 3rd September 1986 as a Public Limited Company and
obtained the Certificate of Commencement of Business on 11th March 1988. The company
has been set up to manufacture and sell leather and non-leather shoes, leather shoe uppers and
leather garments. Presently the company is engaged in the manufacturing of leather and nonleather shoes.
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It had also set up a joint venture in Russia to manufacture shoes in 1991 under the name of
M/S Gorky Production 7 shoes Unit, gorky. The Company is marketing its product nationally
and internationally under the brand name LIBERTY and is well established in the national
and international market. The company had entered into an agreement with one of the group
firms M/S Liberty Enterprises for using the established brand name Liberty.
The company commenced its commercial production for non-leather shoes on 25 th December
1993. Initially one direct injection-soiling machine was installed with a capacity of 24000
pairs per annum on single shift basis. The second direct injection soiling machine was
installed in March 94. From the commencement of commercial production till 31 st March
1994, the company has been operating on full capacity.
In 2000 the company entered into an agreement for sale/purchase of goods and/or taking on
franchise basis the production of franchise basis the production facilities and/or acquire
movable and immovable property including plant and machinery, building etc. with Liberty
Group Marketing Division and/or Liberty Enterprises, partnership firms.
In 2003 Liberty Footwear introduced its innovative Liberty Footstylers collection. It is also
unveiling a slew of shoes whose price ranged between Rs 1,500 and Rs. 2,500, higher than its
other products such as Gliders, Windsor and Senorita.
Pearl Academy inked pact with Liberty Shoes.
In 2004 Liberty Shoes Board approves setting up of subsidiary Company.
Mr. Adesh Gupta presently working as Executive Director of the Company since July 16,
2001, was elevated as Chief Executive officer (CEO) of the Company.
Liberty Shoes Limited launched its retail format, Revolutions.
Liberty Footwear Company Ltds claimed to use brand name Revolution for its new
footwear retail chain has been challenged by a Delhi-based womens wear chain Revolution
Clothings, which too, has claimed ownership of the same brand name.
In 2005 Liberty unveiled new range of footwears.
MISSION
To ensure that the method we use is the latest technology world-over.
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To walk that extra miles to ensure customer satisfaction worldwide, to remain a true
cosmopolitan to the spirit.
To remain a great corporation to associate with, to work for, to know that:
We Are About People.
SOCIAL CONTRIBUTION
Liberty Footwear Training Institute formed by Directors is developing the local public
The products being used by Liberty are Eco-friendly and providing latest technology
to Industry when Indian Markets related with Environment & Safety are not even aware about
the new standards and technology.
Adarsh Gupta
Shammi Banal
Adesh Gupta
Harish Kumar Gupta
Sunil Banal
Salish Kumar Gupta
S.K,Goel
Sandeep Raja Goyal
AUDIT COMMITTEE
Sunil Bansal
S.K. Goel
Sandeep Raja Goyal
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Rajeev Goel
Adarsh Gupta
Sunil Bansal
Sundeep Raja Goyal
Satiwala, Poanta Sahib, Himachal Pradesh (Approx 225 K.M. from Delhi)
Batamandi, Poanta Sahib, Himachal Pradesh (Approx 229 K.M. from Delhi)
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With a turnover of Rs.500 crores the company is emerging as multinational brands with about
350 Exclusive distributors all over the world. As opposed to the earlier model of expending
retail outlets we plan to bring down the number of retailer from 5000 to 4000. We do not
want retail presence for name shake; the ideas to have real brand presence, Liberty plans to
open super premium at Singapore, Kualampur, Dhaka, Colombo and Dubai by 2008. They
currently exports about 25% of footwear production to Germany, Italy, France, United States
and the Middle East.
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Year of Establishment :
Employment :
1954
Above 5000 employees
Business Investment :
Status of Business :
Present Activities :
Brand Equity :
Infrastructure :
14 Branch offices
02 Overseas offices
Export :
Germany
United Kingdom
France
Spain
Hungary
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Technology :
with
following
Cemented construction
Direct PU Injection
SYMPATEX
water
proofing
technology.
COMPANY PHILOSOPHY
Steeped in a philosophy that has at its core innovation, technology and advancement, we at
Liberty, pride ourselves over and above everything else on our healthy and heart-felt respect
for the human ethos. Which projects itself in the expectancy and excitement with which one
greets the arrival of the new combined with a sincere and deep regard for the old, which is
appreciative of and adopts at every stage the unique balance between modernization and
tradition?
COMPANY CREDO
To ensure that the method we use, is the latest technology world over.
To follow the highest standards of honest workmanship in whatever we make.
To walk that extra mile to ensure customer satisfaction worldwide.
To remain a great corporation to associate with, to work for, to know that-
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THE MOTTO
The Motto of Liberty ensures that its employees work towards achieving greater heights. Its
motto is
ONE STEP AHEAD, ALWAYS
MISSION AND VISION
Mission:
Enrichment of the lives of the customers globally by our commitment to the industry and in
making available product and services that truly matches their desires in terms of style,
comfort and value.
Vision:
To keep us the fantastic growth that liberty has shown ever since its inception.
Objectives:
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The Liberty group has also won several prestigious national and international awards are as
under:
1. Leather exports promotion council merit award (1975) till 1982
2. Haryana govt. export award (1978-1979)
3. International Asian award, Jakarta (1982)
4. European award, Paris (1987)
5. National award for best export garment (1987-1988)
6. International award for good quality, Brussels Belgium (1988)
PRODUCT PROFILE
POWERFUL BRANDS
FOR MEN:
Coolers, Force 10, Fortune, Gliders, Windsor
FOR WOMEN:
Force 10, Gliders, Senorita, Tiptop
FOR KIDS:
Fortune, Force 10, Gliders, Perfect
SAFETY SHOES:
Freedom, Warrior, Workman
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BRANDS
This family brand is style personified with something for every need. Be it formal or casual,
at office or at the beach, a conference or a soiree Liberty fits in effortlessly.
A choicest range of school shoes for both boys and gals in buckled and lace type that makes
school going an interesting affair. Available in shining black and pure white, its wide variety
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A pure male fashion brand, Fortune has the latest styles in formal footwear for men. Its
flamboyance gives the brand strong following.
A Windsor shoe embodies comfort and style. With its classic looks that's popular amongst the
young executives the Windsor brand of shoes are one of the largest set of Men's shoes sold by
Liberty.
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Gliders is a complete range of footwear in itself. Using the trendy EVA technology it
comprises of beachwear to casual as well as formal footwear both in leather and other
innovative material meant. And is perfect for not just grown up boys and girls but young kids
too.
The brand offers women comfortable and fashionable slip-ons, sandals and bellies with neat
styling thrown in, not bordering on the bizarre but acceptable across a wide spectrum.
Liberty 's Warrior range has over a short period of time developed a reputation that's an envy
of many a competition. The product quality and the range that we produce have gained
acceptability across a varied segment of industrial users. Some of the biggest corporate
houses of the country are sourcing the footwear for their workforce from us. The product
range caters to the building and construction industry, the Oil industry the healthcare segment
.The range has not just safety shoes but footwear for the executives in the company and
special footwear for the nurses and the healthcare segment.
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Presenting low budget Safety Shoes from the house of Liberty.Workman Safety Shoe is
specially designed & developed for Industries like Construction,Engineering, Service sector
where contractual workers with limited budget are employed.
Professionals, undertaking high impact, electrical, thermal, chemical or even slippage risks,
walking over surfaces or operating in environments that expose them to dangers related to
these, use a pair of Boots that they completely rely on.
Whether you are a power plant technician, alkali unit worker, or even an X-treme sports
practitioner, you will appreciate the safety of FREEDOM Protective Professional Boots.
Made from super-resilient rubber, blended with PVC, these boots afford the protection that no
ordinary footwear can provide, no matter how well they are constructed. They are resistant to,
electrical shock, mechanical crush, chemical corrosion and extreme heat and cold. These
boots are also anti-static, anti-slippage, non-tearable. FREEDOM offers safety and durability
that you may have near experienced before.
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Sporty and vibrant the Force 10 range has been rewriting the industry norms. Constant
technology upgradations have made it one of the more desired brands in the category.
SENORITA is a brand for the fashion and style conscious young woman. She's comfortable
expressing herself and makes life beautiful and invigorating whether at work or home .
Coolers are a brand of unisex sandals and slip-ons. Catering to a wide segment across the
country Coolers are much sought after not just in the summer season but also during the
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The brand exhibits the vivacity of children in every way. Colorful and comfortable, the range
has smart sandals, elegant sports shoes and bright colored lace up to ensure a formal look for
the children.
MARKETING Strategy
Liberty has a distribution Network that rivals the human arterial system reticulate network of
retailers, showrooms and exclusive outlets with a reach like a blue green marine octopus.
Thanks to the vision and drive of our corporate, we now have a sales Network that brings the
breathtaking world of super footwear right at your feet, within seconds. A marketing system
that we have conceived and created is understandably, the envy of the competition.
Marketing
National
International
Network
Offices
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Distributors
150
10
Exclusive
350
10
showrooms
Shoe stations
7000
500
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EXPORT MARKET
The various export markets of the Liberty Shoes Ltd.are:
Germany
Italy
Spain
East Europe
Indian sub continents
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COMPETITORS
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ACTION
SHOES
BATA
SHOES
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1960s-Phillip Knight(CEO) & William Bowerman partnered to sell running shoes to athletes.
Headquarters- Washington. 1978 officially renamed itself to Nike.2008- revenue in excess of
$18.6 billion USD.
Marketing Strategy
1) Nike's marketing strategy is an important component of the company's success.
2) Nike is positioned as a premium-brand, selling well-designed and expensive products.
3) Nike lures customers with a marketing strategy centering around a brand image which
is attained by distinctive swoosh logo and the advertising slogan: "Just do it".
4) Nike promotes its products by sponsorship agreements with celebrity athletes,
professional teams and college athletic teams.
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Bata India Limited:1) Incorporated as Bata Shoe Company Private Limited in 1931, the company was set up
initially as a small operation in Konnagar (near Calcutta) in 1932.
2) Bata India is the largest company for the Bata Shoe Organization in terms of sales pairs
and the second largest in terms of revenues.
3) Bata India Limited is the largest footwear retailer in India.
4) Bata India has more than 1250 stores across the Country.
Marketing Strategy
1) Bata is reinventing itself and tries to gain the faith by providing goods according to taste
and preferences of the customers.
2) Target new market- focusing on kids and ladies footwear
3) Improving shoe line - Launching international brands, focus on style will attract new
young customer class
4) Low to medium priced footwear for the common person across the globe.
ACTION SHOES
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Marketing strategy.
Wide consumer base.
Wide price products.
Social responsibility
RELAXO
32
Marketing strategy
Economies of scale.
Hitting customer base in lower and middle class. Slippers & School shoes
Low price products with good quality
33
Chapter 5
PROJECT
PERFORMANCE MANAGEMENT
Employee Performance Management is a process for establishing a shared workforce
understanding about what is to be achieved at an organization level. It is about aligning the
organizational objectives with the employees agreed measures, skills, competency
requirements, development plans and the delivery of results. The emphasis is on
improvement, learning and development in order to achieve the overall business strategy and
to create a high performance workforce.
Performance management includes activities to ensure that goals are consistently being met
in an effective and efficient manner. Performance management can focus on the performance
of an organization, a department, employee, or even the processes to build a product or
service, as well as many other areas.
The PM approach is used most often in the workplace but applies wherever people interact
schools, churches, community meetings, sports teams, health setting, governmental agencies,
and even political settings. PM principles are needed wherever in the world people interact
with their environments to produce desired effects. Cultures are different but the laws of
behavior are the same worldwide. Armstrong and baron (1998) defined it as A strategic and
integrated approach to increasing the effectiveness of organizations by improving the
performance of the people who work in them and by developing the capabilities of teams and
individual contributors
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6) the most neglected part in teachings about management and leadership principles;
7) the most complete and sophisticated application of performance management;
8) the best integration of human behavior research findings, with the latest management,
leadership and organizational development principles;
9) the best automated method for organizational change, development, growth,
performance and profit;
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it failed miserably. The gap between justification of pay and the development of skills and
knowledge became a huge problem in the use of Performance Management. This became
evident in the late 1980s; the realisation that a more comprehensive approach to manage and
reward performance was needed. This approach of managing performance was developed in
the United Kingdom and the United States much earlier than it was developed in Australia.
In recent decades, however, the process of managing people has become more formalised and
specialised. Many of the old performance appraisal methods have been absorbed into the
concept of Performance Management, which aims to be a more extensive and comprehensive
process of management. Some of the developments that have shaped Performance
Management in recent years are the differentiation of employees or talent management,
management by objectives and constant monitoring and review. Its development was
accelerated by the following factors:
1) The introduction of human resource management as a strategic driver and integrated
approach to the management and development of employees.
2) The understanding that the process of Performance Management is something thats
completed by line managers throughout the year it is not a once off annual event
coordinated by the personnel department.
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COMMUNICATING
THE STANDARDS
MEASURING THE
ACTUAL
PERFORMANCE
COMPARING THE
ACTUAL WITH
DESIRED
DISCUSS RESULTS
DECISION
MAKING
37
38
39
PERFORMANCE
The actual performance is compared with the desired or the standard performance. The
comparison tells the deviations in the performance of the employees from the standards set.
The result can show the actual performance being more than the desired performance or, the
actual performance being less than the desired performance depicting a negative deviation in
the organizational performance. It includes recalling, evaluation and analysis of data related
to the employees performance.
40
41
Traditional Methods
Modern Methods
Essay Method
Management by Objectives
TRADITIONAL METHODS
Essay appraisal
In its simplest form, this technique asks the rater to write a paragraph or more covering an
individual's strengths, weaknesses, potential, and so on. In most selection situations,
particularly those involving professional, sales, or managerial positions, essay appraisals
from former employers, teachers, or associates carry significant weight.
Field review
The field review is one of several techniques for doing this. A member of the personnel or
central administrative staff meets with small groups of raters from each supervisory unit and
goes over each employee's rating with them to (a) identify areas of inter-rater disagreement,
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(b) help the group arrive at a consensus, and (c) determine that each rater conceives the
standards similarly. .
Forced-choice rating
Like the field review, this technique was developed to reduce bias and establish objective
standards of comparison between individuals, but it does not involve the intervention of a
third party.
Ranking methods
For comparative purposes, particularly when it is necessary to compare people who work for
different supervisors, individual statements, ratings, or appraisal forms are not particularly
useful. Instead, it is necessary to recognize that comparisons involve an overall subjective
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.
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.
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MODERN METHODS
Management by objectives
To avoid, or to deal with, the feeling that they are being judged by unfairly high standards,
employees in some organizations are being asked to set - or help set - their own performance
goals. Within the past five or six years, MBO has become something of a fad and is so
familiar to most managers that I will not dwell on it here.
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?
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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."
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.
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Improves understanding and relationship between the employee and the reporting
manager and also helps in resolving confusions and misunderstandings.
This occurs when employees are incorrectly rated near the average or middle of the scale.
The attitude of the rater is to play safe. This safe playing attitude stems from certain doubts
and anxieties, which the raters have been assessing the rates.
Halo error:A halo error takes place when one aspect of an individual's performance influences the
evaluation of the entire performance of the individual. The halo error occurs when an
employee who works late constantly might be rated high on productivity and quality of
output as well ax on motivation. Similarly, an attractive or popular personality might be given
a high overall rating. Rating employees separately on each of the performance measures and
encouraging raters to guard against the halo effect are the two ways to reduce the halo effect.
Rater effect:
This includes favoritism, stereotyping, and hostility. Extensively high or low score are given
only to certain individuals or groups based on the rater's attitude towards them and not on
actual outcomes or behaviors; sex, age, race and friendship biases are examples of this type
of error.
Primacy and Regency effects: The rater's rating is heavily influenced either by behavior exhibited by the ratee during his
early stage of the review period (primacy) or by the outcomes, or behavior exhibited by the
ratee near the end of the review period (regency). For example, if a salesperson captures an
important contract/sale just before the completion of the appraisal, the timing of the incident
may inflate his or her standing, even though the overall performance of the sales person may
not have been encouraging. One way of guarding against such an error is to ask the rater to
consider the composite performance of the rate and not to be influenced by one incident or an
achievement.
Performance dimension order: Two or more dimensions on a performance instrument follow each other and both describe
or rotate to a similar quality. The rater rates the first dimensions accurately and then rates the
second dimension to the first because of the proximity. If the dimensions had been arranged
in a significantly different order, the ratings might have been different.
Spillover effect: This refers lo allowing past performance appraisal rating lo unjustifiably influence current
ratings. Past ratings, good or bad, result in similar rating for current period although the
demonstrated behavior docs not deserve the rating, good or bad.
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Chapter 6
DATA ANALYSIS
DATA ANALYSIS & INTERPRETATION
Q-1) Do you know the present Performance management system used in
your organization?
48
Response
yes No
Respondents 50
Interpretation
We can say that 95% employees know the performance management system
used in the organization 5% are unaware of that.
Q-2) Are you satisfied with the present PMS used in your organization?
Response
Respondents
yes
40
No
0
Some how
10
Cant say
0
49
Interpretation
We can say that 80% employees are satisfied with the performance management
system used in the organization and no one is unsatisfied. 10% employees are
some how satisfied and 10% are not able to say anything.
Response
Strongly
agree
Respondents 0
agree
28
neutral
11
disagree
Strongly
11
disagree
0
Interpretation
We can say that 56% employees are agree, 22% are neutral and 22% are
disagree with the above statement.
50
Q-4) Do you think the assessment given by your HOD is on unbiased basis.
Response
Strongly
agree
Respondents 10
agree
30
neutral
5
disagree
Strongly
disagree
2
Interpretation
We can say that 20% employees are strongly agree, 60% are agree, 10% are
neutral, 6% are disagree and 4% are strongly disagree with the statement.
Strongly
agree
Respondents 10
Agree
10
neutral
5
disagree
Strongly
15
disagree
10
51
Interpretation
We can say that 20% employees are strongly agree, 20% are agree, 10% are
neutral, 30% are disagree and 20% are strongly disagree with the statement.
Strongly
agree
Respondents 10
Agree
25
neutral
8
disagree
Strongly
disagree
2
52
Interpretation
We can say that 20% employees are strongly agree, 50% are agree, 16% are
neutral, 10%are disagree and 4% are strongly disagree with the statement.
Strongly
agree
Respondents 15
Agree
27
neutral
3
disagree
Strongly
disagree
2
53
Interpretation
We can say that 30% employees are strongly agree, 54% are agree, 6% are
neutral, 6%are disagree and 4% are strongly disagree with the statement.
Strongly
agree
Respondents 9
Agree
31
Neutral
8
Disagree
Strongly
disagree
0
54
Interpretation
We can say that 18% employees are strongly agree, 62% are agree, 16% are
neutral, 4%are disagree and 0% are strongly disagree with the statement.
Strongly
agree
Respondents 13
Agree
27
Neutral
6
Disagree
Strongly
disagree
2
55
Interpretation
We can say that 26% employees are strongly agree, 54% are agree, 12% are
neutral, 4%are disagree and 4% are strongly disagree with the statement.
Strongly
agree
Respondents 8
Agree
25
Neutral
10
Disagree
Strongly
disagree
2
56
Interpretation
We can say that 16% employees are strongly agree, 50% are agree, 20% are
neutral, 10%are disagree and 4% are strongly disagree with the statement.
Strongly
agree
Respondents 6
Agree
30
Neutral
5
disagree
Strongly
disagree
4
57
Interpretation
We can say that 12% employees are strongly agree, 60% are agree, 10% are
neutral, 10%are disagree and 8% are strongly disagree with the statement.
Q-12) Feedback on good or poor progress is saved up to the end of the year.
Response
Strongly
agree
Respondents 9
Agree
37
Neutral
2
disagree
Strongly
disagree
0
58
Interpretation
We can say that 18% employees are strongly agree, 74% are agree, 4% are
neutral, 4%are disagree and 0% are strongly disagree with the statement.
Strongly
agree
Respondents 9
Agree
35
Neutral
3
disagree
Strongly
disagree
1
59
Interpretation
We can say that 18% employees are strongly agree, 70% are agree, 6% are
neutral, 4%are disagree and 2% are strongly disagree with the statement.
Strongly
agree
Respondents 8
Agree
32
Neutral
6
disagree
Strongly
disagree
0
60
Interpretation
We can say that 16% employees are strongly agree, 64% are agree, 12% are
neutral, 8%are disagree and 0% are strongly disagree with the statement.
Q-15) what factors from the following are considered in your organization
while appraising the performance.
Response
Technicality Team
& behavior
Respondents 36
work
4
Productivity Waste
8
other
management
2
0
61
Interpretation
We can say that 72% employees says that technicality & behavior are
considered while appraising the performance, 8% think team work, 16% says
productivity, 4% says waste management and 0% says other.
Once
Continuously Never
Cant say
41
during
the
service
period
Respondents 9
62
Interpretation
We can say that 18% employees think that appraisal should be done only once,
82% think that it should be done continuously.
Q-17) If given a chance or opportunity, would you like that the current
procedure should be reviewed?
Response
Yes
Respondents 30
no
20
Cant say
0
63
Interpretation
60% employees want that the current procedure should be reviewed and 40%
says that it should not be reviewed.
Very good
8
Average
18
Good
20
64
Interpretation
We can say that 8% employees rank their performance as excellent, 16% as very
good, 36% as average and 40% as good.
Q-19) What according to you is the best strategy for increasing the
employee performance?
Response
Increase
benefits
Respondents 12
Negative
Freedom
Positive
Any
reinforcement other
32
0
65
Interpretation
We can say that 24 % employees think that increase in benefits can increase the
employees performance, 0% says negative reinforcement, 12% says freedom
for work, 64% say positive reinforcement.
66
67
Chapter 7
CONCLUSION
Employee satisfaction is vital factor for the performance of organization
because it provides the basis for the foundation of the organization. On the basis
of study which I gone through, I came to know that employee satisfaction level
is high but there are chances of improvisation.
To increase the level of satisfaction, some more steps can be taken by Liberty
Puram such as self rating by the employees and positive reinforcement system
for increasing the performance of the employees. The primary objective was to
study satisfaction with regard to performance management system of the
organization and from study, I came to know that majority of the employees are
satisfied with policies of the organization. To increase the percentage of
satisfied employees, organization should work for them.
68
Chapter 8
SUGGESTIONS
RECOMMENDATIONS & SUGGESTIONS
Appraisal of the performance should be done continuously.
Positive reinforcement should be used for increasing the employee
performance.
Organization need to ensure role clarity among the employees.
Appraiser should have proper knowledge regarding the different rating
scales in the appraisal report.
It is suggested that involvement of appraisal in performance management
activities should be increased.
Employees should be given chance to give suggestions regarding
performance management system.
69
Chapter 9
BIBLIOGRAPHY
WEBSITES
http://www.libertyshoes.com accessed on 15th July 2010
http://www.performancemanagementguide.com accessed on 17th July 2010
http://www.humanresources.about.com accessed on 16th July 2010
http://www.allbusiness.com accessed on 20th July 2010
70
Chapter 10
ANNEXURE
QUESTIONNAIRE
EMPLOYEE INFORMATION
NAME:
DESIGNATION:
GENDER:
DEPARTMENT:
AGE:
SERVICE PERIOD:
[2] No
Q-2) Are you satisfied with the present PMS used in your organization?
[1] yes
[2] no
71
[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree
Q-5) Team objectives dont exist.
[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree
Q-6) The focus of performance management is developmental.
[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree
Q-7) Regular feedback of the work is given.
[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree
Q-8) PMS of your company motivates you for work.
[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree
Q-9) PMS is effective in your organization.
[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree
Q-10) Participation in the performance management process is up to the
required level.
[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree
Q-11) Personal development plans exist.
[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree
Q-12) Feedback on good or poor progress is saved up to the end of the year.
[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree
Q-13) Is unsatisfactory PMS directly relates to the employee turnover
[1] strongly agree [2] agree [3] neutral [4] disagree [5] strongly disagree
72
[2] continuously
[3] never
Q-17) If given a chance or opportunity, would you like that the current
procedure should be reviewed?
[1] yes
[2] no
[3] average
[4] good
Q-19) What according to you is the best strategy for increasing the employee
performance?
[1] Increase benefits [2] negative reinforcement [3] freedom for work
[4] positive reinforcement [5] any other
73
SUGGESTIONS AND
VIEWS.............
74
75