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Project Report

(Semester July – December 2018)

“(Stock Management)”

Submitted by

(Archit Mangal)
Student ID: 16BBAN057

Under the Guidance of

Faculty Internship Guide: Industry Guide:


Mrs. Sunita Sharma Mr. Ashok Mor

Designation: Assistant Professor Designation: MD

Department of Management

JECRC UNIVERSITY, JAIPUR


July 1 July 31, 2018
Start Month End Month Year
Declaration
I hereby declare that the project work entitled “Performance Management”
is an authentic record of my own work carried out at “S.S. Associates” as
requirements of six months project semester for the award of degree of BBA,
JECRC University, under the guidance of “Mr. Akshay Soni” and “Ms.
Khushboo Khandelwal”, during July 1 to _July 31, 2018.

Signature of student
Name of Student: Vedant Garg
Student ID: 16BBAN089

Date: 20 November 2018

Certified that the above statement made by the student is correct to the best of
our knowledge

Faculty Internship Guide : Industry Guide:


Ms. Khushboo Khandelwal Mr. Akshay Soni

Designation: Designation:
Assistant Professor HR Head
Preface

I would also like to thank Mr. Ronak Muchhal (Director) and Mr. Akshay
Soni (HR head) my supervisor of S.S. Associates, and my colleague who
helped me by providing informative instructions. I was closely attached with
them during my internship tenure. Without them this project would have been
very difficult.

While my internship involved a range of different tasks and smaller


exploration, general areas can be identified as sticking out as the central
subjects around which most of my work at the youth segment, Human
resources Department ,”S.S. Associates” In the following, I have presented all
these activities and discuss my role and contribution to each. As will it become
clear in the course of reading and have an idea of my internship. My
responsibilities are closely interrelated and overlapping and are presented here
one by one merely for purpose of clarity and coherence of my internship. In
closing I have tried to add an extra dimension in the paper that how the
knowledge of academic courses can be utilized over hands on task.

Performance Management is basically a key process in any organisation and


should assist the management and staff to focus on the key issues and business
objectives to ensure sustainability.
Performance Management is therefore much more than merely telling a person
what to do and “policing” them until it is done. Rather, it is an integral part of
the manager and the employee’s job.

The bottom-line reality is that we all need to know what is expected in a


specific role – if that is lacking, uncertainty and frustration, resulting in
demotivation and ineffectiveness, is created. This in turn impacts negatively
on company performance and long-term sustainability of the organisation.

Acknowledgements

It gives me great pleasure to present the report entitled “Performance


management in Human resources” in S.S. Associates .

First, with profound pleasure and proud privilege, I take this opportunity to
express my deep sense of gratitude and indebtedness to the S.S. Associates
for giving me the opportunity to undertake this project.

I would like to express my sincere gratitude to Mr. Ronak Muchhal (Director)


for giving me this opportunity to complete my internship in this esteemed
organization and for their kind support.

With great sense of gratitude, I also thank him for his experienced judgement,
endless interest and constant encouragement without which it would not been
possible for me to accomplish the project successfully. There is a saying
“Hundred miles journey begins with one step”. It was my first step in the
industry so that with immense gratitude and artful appreciation, I am grateful
to Mr. Akshay Soni (HR Head) for providing his esteemed guidance and
valuable support throughout the internship.

Last but not the least, I find my self-lacking in words to express sense of
gratitude to my beloved parents for their encouragement, moral and emotional
support.

-Vedant Garg
Table of Contents

S.No
. Component Page Number
A Preface 4
B Acknowledgement 5
C Excecutive Summary 7
D Firms’s Introduction 8-9
Introduction of
1 Performance Management
1.1 Performance Management 9-10
1.2 Effective performance 10-12
1.3 Features 20-22
1.4 Scope 22
2 Review of Literature
3 Methodology
3.1 Scope 25
3.2 Obejective of research 26
3.3 Research design 26
3.4 Sampling method 27
4 Analysis
Organisational
4.1 Performance 37-39
4.2 Measures 39-43
E Conclusion 45
G Recommendation 46-47
H Reference 48
I Appendix 49-52
Executive Summary

In today’s rapidly changing business environment, Performance is understood


as achievement of the organization in relation with its set goals. It includes
outcomes achieved, or accomplished through contribution of individuals or
teams to the organization‘s strategic goals. The term performance
encompasses economic as well as behavioural outcomes. Brumbach views
performance more comprehensively by encompassing both behaviors and
results. He is of the view that behaviors as ‗outcomes in their own right‘,
which ‗can be judged apart from results‘. Performance is an impact. The roles
of any manage can be seen in three parts: Being, Doing and Relating.

Being it is concerned with the competencies of the manage that are relevant to
his/her performance. It is preparedness of the mind of the manager.

Doing focuses on the manage activities that are variably effective at different
levels in the organization: that affect performance of other roles dependent on
the manage output, and the organizational performance as a whole. As
someone said, ‗Ideas are funny little things. They won‘t work unless you do.
Relating emphasizes the nature of relationships with members of the role
network-vertical, horizontal or otherwise.

Performance has a linkage with the individual potential and how best it is
realized by the individual. With regard to manage, his/her potential becomes
the input to the productive process and performance is the output. Manager’s
Potential is determined when a set of tasks are assigned to him. It is also
related to performance standards set.
1. Introduction

S.S. Associates, Indore M.P. is a private firm which deals in warehousing and
carry & forwarding
S.S. Associates basic function is to provide different range of services to
exporters to ensure smooth and timely shipment of goods. Clearing and
Forwarding Agents play a pivotal role in the selection of mode and route of
transport. They are the specialized people to guide in selection of the shipping
line/airline. Every exporter is concerned with distribution logistics to ensure,
that the goods reach the final buyer, in specified time and at minimal cost in
the condition they are sent. The essence of distribution logistics is the decision
in respect of mode of transport to he used. Clearing agent advises exporter
about the availability alternative modes of transport and guides exporter in
decision-making about the final choice of transport to achieve optimal cost in
transporting the goods, well within the delivery schedule. In addition to these
activities, he undertakes most of the functions connected with exports such as
marking, labelling, packing of goods, advising on trade laws, arranging local
transportation as well as apprising developments on transportation and
claiming duty-drawback claims on behalf of the exporter. An efficient clearing
and forwarding agent, goes a long way to the exporter in the journey of
exports to make the matters easier, comfortable and may be cheaper too.
Above all, the agents act trouble-shooters for the exports, in case of movement
problems. It is well said a real clearing agent can perform all the functions
except selling the goods.

MISSION:

To provide reliable, cost effective, value added and integrated warehousing


and logistics solutions in a socially and environment friendly manner.
VISION:

To emerge as a leading market facilitator by providing integrated warehousing


infrastructure and other logistics services, supporting India’s growing
economy with emphasis on stakeholder satisfaction.

Introduction of Performance Management

1.1 Performance Management

Performance management can be defined as a strategic and integrated


approach to delivering sustained success to organization by improving the
performance of the people who work in them and by developing
the capabilities of teams and individual contributors. To perform well,
employees need to know what is expected of them. The starting point is an
Up-to-date job description that describes the essential functions, tasks,
and responsibilities of the job. It also outlines the general areas of knowledge
and skills required of the employee to be successful in the job. Performance
expectations go beyond the job description. When you think about high quality
on-the-job performance, you are really thinking about a range of expected job
outcomes, such as

 What goods and services should the job produce?

 What impact should the work have on the organization?

 How do you expect the employee to act with clients, colleagues, and
supervisors?
 What are the organizational values the employee must demonstrate?

 What are the processes, methods, or means the employee is expected to


use?

In discussing performance expectations an employee should understand why


the job exists, where it fits in the organization, and how the job’s
responsibilities link to organization and department objectives. The range
of performance expectations can be broad but cangenerally be broken into two
categories:

Results
(The goods and services produced by an employee often measured by
Objectives or standards)

Actions & Behaviors


(The methods and means used to make a product and the behaviors and values
demonstrated during the process. Actions and Behaviors can be measured
through performance dimensions.) Performance expectations serve as a
foundation for communicating about performance throughout the year. They
also serve as the basis for assessing employee performance. When you and an
employee set clear expectations about the results that must be achieved the
methods or approaches needed to achieve them, you establish a path for
success.

1.2 An effective performance management system will:

 Be job specific, covering a broad range of jobs in the organization

 Align with your organization’s strategic direction and culture


 Be practical and easy to understand and use

 Provide an accurate picture of each employee’s performance

 Include a collaborative process for setting goals and reviewing


performance based on two-way communication between the employee
and manager
 Monitor and measure results (what) and behaviors (how)

 Include both positive feedback for a job well done and constructive
feedback when improvement is needed

 Provide training and development opportunities for improving


performance

 Ensure that employee work plans support the strategic direction of the
organization

 Establish clear communication between managers and employees


about what they are expected to accomplish

 Provide constructive and continuous feedback on performance

 Identify and recognize employee accomplishments

 Identify areas of poor performance and establish plans for improving


performance

 Support staff in achieving their work and career goals by identifying


training needs and development opportunities
 Support administrative decision-making about promotions,
terminations, compensation and rewards

 Provide legal documentation to demonstrate due diligence for legal


challenges related to dismissal or vicarious liability (an employer can
be held liable for the acts or omissions by its employees during the
course of employment)

The establishment of an effective performance management system requires


time and resources and therefore, the support of the board, the executive
director and other senior managers. When developing a new performance
management process, an organization can strike up a committee made up of
employees, managers and board members to increase buy-in, understanding
and support for the process.

Management support to act upon the outcomes of the performance


management process is also necessary to ensure that good performance is
recognized, inadequate performance results in the necessary support and/or
training to improve performance and consistently poor performance results in
a change of responsibilities or termination, as appropriate.
Whether you are introducing a new performance management system or if you
are modifying an existing process, it is critical that you communicate the
purpose and the steps in the performance management process to employees
before it is implemented. Also remember to review your new performance
management system after the first year and make adjustments as necessary.
An effective performance management process sets the foundation
aligning the individual's efforts with the university's goals.

 By linking individual employee work efforts with the organization’s


mission and objectives, the employee and the organization understand
how that job contributes to the organization.

 By focusing attention on setting clear performance expectations


(results + actions & behaviors), it helps the employee know what needs
to be done to be successful on the job.

 Through the use of objectives, standards, performance dimensions, and


other measures it focuses effort. This helps the department get done
what needs to be done and provides a solid rationale for eliminating
work that is no longer useful.

 Through regular check-in discussions, which include status updates,


coaching, and feedback, it promotes flexibility, allowing you and the
employee to identify problems early and change the course of a project
or work assignment.

 By emphasizing that an annual review should simply be a summary of


the conversations held between you and the employee during the entire
cycle, it shifts the focus away from performance as an “annual event”
to performance as an on-going process.
 An effective performance management process, while requiring time to
plan and implement, can save you and the employee time and energy.

Performance is understood as achievement of the organization in relation with


its set goals. It includes outcomes achieved, or accomplished through
contribution of individuals or teams to the organization‘s strategic goals. The
term performance encompasses economic as well as behavioural outcomes.
Brumbach views performance more comprehensively by encompassing both
behaviors and results. He is of the view that behaviors as outcomes in their
own right‘, which can be judged apart from results‘. Performance is an impact.
The roles of any manage can be seen in three parts: Being, Doing and
Relating.

Being it is concerned with the competencies of the managee that are relevant
to his/her performance. It is preparedness of the mind of the manager. Doing
focuses on the manage activities that are variably effective at different levels
in the organization: that affect performance of other roles dependent on the
manage output, and the organizational performance as a whole. As someone
said, Ideas are funny little things. They won‘t work unless you do.‘ Relating
emphasizes the nature of relationships with members of the role network-
vertical, horizontal or otherwise. Performance has a linkage with the
individual potential and how best it is realized by the individual. With regard
to manage, his/her potential becomes the input to the productive process and
performance is the output. Managee’s Potential is determined when a set of
tasks are assigned to him. It is also related to performance standards set. Task-
related activities refer to managee‘s or supervisors involvement to achieve the
allocated task or meet expectations in the given task environment.
Performance is what the managee’s actually achieve. Performance in a role
refers to the extent to which the managees achieve the purpose for which the
role is created.

Choice, not chance. The actual performance of a managee is a function of


several forces, internals as well as external to the organization-some of choice,
some of chance. Most organizations do not take these forces into account-
either systematically or intuitively-while building expectations from a
managee. A managee in her task environment could be subject to some of the
influences and factors shown in Exhibit

In this framework, Organizational Relevant Environment, Role Purpose or


Objective, Stakeholder Expectations, Role Technology and Input Role or
Vendor Contribution are inputs to the managee‘s performance. These are
substantially known, and are the factors and forces, which organizational
expectations from the Managee Performance can reasonably be predicted.
Role Design, Managee Potential, Managerial Leadership, Competing and
Collaborating Colleagues, and Group Climate are throughput factors that can
be optimized by a manager to enhance the Managee Performance. These
determine whether the organization‘s performance expectations from a
managee are realistic. As such, throughput factors are the core concerns of P
Performance Management. It can be argued that Role Design and Managee
Potential are, in fact, input factors. However, a manager can modify-enhance
or stretch-these factors by improving the fit between the managee‘s capacities,
resources and role requirements, Performance Management would assume these
as throughput factors. Role Output or Managee Performance is the end-result-
the effect for which we work. This is the variable that is predicted or planned.
It is invariably observable and measurable. The behavior of all organisms is
goal-directed. As such, people performance is not only a sequence of causes
and effects; it is a chain of sub-goals and actions, leading towards the ultimate
goal. In fact, when a managee has a goal, he/she behaves as if she is following
some signposts that create a healthy expectancy in him/her to reach the goal.

Managee Potential corresponds to the role to which a managee is assigned and


the inputs he/she receives to fulfill the role purpose. It stretches or contracts
depending upon the Group Climate, the behavior of the Competing and
Collaborating Colleagues, and the Managerial Leadership. The actual
realization of a managee‘s potential depends heavily on:

 Group and Organizational Purpose.

 Group or Organization Capacities and Resources.

 Human Climate in the Group or the Organization.

 Quality of Up-stream or Vendor Inputs.

 Feedback on Performance.

Role Design is fashioned by the organizing process. The sole purpose of


organizing and designing a role is to provide a vehicle for implementing
performance plans and expectations. It determines the requisite competencies,
knowledge and skills. Role design predominantly determines task-related
attributes needed by the managee.

Managerial Leadership predominantly determines the behavioral attributes


needed by the managee. Leadership role of the manager and managerial style
of the leader are also major determinants of the managee‘s development and
his/her job satisfaction. Managerial leadership and group climate have
considerable influence on each other

Group Climate - The internal psychological environment of the group-


influences the behavior, style and performance of the managee. It is also, in
turn influenced by the behavior and attitude of the managee. Group climate is
after all, the collective outcome of the behavior and attitudes of all the
members of the group-the managee and all his/her competing and
collaborating colleagues, the manager or the leader. People in any group or
organization are less anxious about work if both goal clarity and goal
agreement are present. Considerable conflict arises when purposes are unclear
or when people disagree on what the priorities should be. Without
convergence on goals and priorities, groups or organizations cannot develop a
climate that facilitates performance.

Through the medium of performance, an organization is able to effectively


achieve what it sets out to. Indeed, it is the people‘s capacities and resources
that determine an organization‘s capability to perform and to satisfy or
influence its stakeholders. These capacities and resources reflect a measure of
the internal state of an organization that is expressed through its results.
Performance management is a way of systematically managing people for
innovation, goal focus, productivity and satisfaction. It is a goal congruent
win-win strategy. Its main objective is to ensure success to all managees i.e.,
all task teams who believe in its process, its approach and implementation
with sincerity and commitment. The managee‘s success is reflected in
organisations bottom line in terms of achieving its planned goals. PfM is an
endless spiral, which links several processes such as performance planning,
managing performance throughout the year, taking stock of managee‘s
performance and potential. Also it includes recognizing and rewarding success
at the end of the year. Performance Management links these processes in such a
way that an individual managees‘ performance is always oriented towards
achieving organisational goals. Performance Management creates positive goal
oriented task motivation and aims at reducing intra-organisational conflict. It
is realized that organisations could not be successful if they do not have a
good performance management system. Each manager needs to devise his/her
own system of managing performance. While some norms of performance
management are explicit others are not so clear even to the managers. It is said
that standards or expectations that define good performance may be generally
understood but are rarely specific. Performance Management is a holistic,
largely participatory and goal congruent process of managing and supervising
managers at work. It is understood as a systematic, organized approach to
managing and rewarding performance by generating and sustaining positive
managee (employee) motivation. It is neither the well-known system of
performance appraisal nor the well talked about system of MBO. Its salient
dimensions include performance standards- representing organizational goals
and objectives, managee recognition and reward. According to Armstrong,
Performance Management is a means of getting better results from the
organisations, teams and individuals by understanding and managing
performance within the agreed framework of planned goals and competency
requirements.

Performance Management – Integrated Approach

Armstrong and Baron, defines Performance Management as a strategic and


integrated approach in delivering sustained success to organisations by
improving performance of people by developing the capabilities of teams and
individuals. These experts consider Performance Management as a strategic
tool since it is concerned with achievement of long-term organisational goals
and effective functioning of organisations in its external environment.
Performance Management effects four types of integrations namely, vertical,
functional, human resource and goals.

 Vertical Integration – aligning objectives at organisational, individual


and team levels and integrating them for effective performance. The
individuals and teams agree upon to a dialogue to work within the
broad framework of organisational goals and values.
 Functional Integration – it deals with focusing several functional
energies, plans, policies and strategies onto tasks in different levels and
parts of the organisation.

 Human resource Integration – this ensures effective integration of


different subsystems of HRM to achieve organizational goals with
optimum performance. These subsystems include people management,
task monitoring, job design, motivation, appraisal and reward systems,
and training and empowerment.

Goal integration – it focuses on arriving at congruence between the needs,


aspirations and goals of the managee with that of the goals and objectives of
the organization.
2. Review of Literature

WHAT ARE THE PRINCIPLES OF AN EFFECTIVE


PERFORMANCE MANAGEMENT

Quality and effectiveness of performance management is a reality in


organisations only when certain basic and fundamental tenets/ principles or
practices of management are followed. These include:

1. Transparency – decisions relating to performance improvement and


measurement such as planning, work allocation, guidance and counseling and
monitoring, performance review etc., should be effectively communicated to
the managees and other members in the organisation.

2. Employee development and empowerment – effective participation of


employees/ managees (individuals and teams) in the decision – making
process and treating them as partners in the enterprise. Recognizing
employees/ managees of their merit, talent and capabilities, rewarding and
giving more authority and responsibility etc., come under the umbrella this
principle.

3. Values – a fair treatment and ensuring due satisfaction to the stakeholders


of the organisation, empathy and trust and treating people as human beings
rather than as mere employees form the basic foundation, apart from others.

4. Congenial work environment – the management need to create a


conducive and congenial work culture and climate that would help people to
share their experience knowledge and information to fulfill the managees
aspirations and achieve organisational goals. The managees/ employees should
be well informed about the organisational mission, objectives, values and the
framework for managing and developing individuals and teams for better
performance.

5. External environment – effective and contextual management of external


environment to overcome the obstacles and impediments in the way of
effective managerial performance.

WHAT ARE THE FEATURES OR CHARACTERISTICS OF


EFFECTIVE PERFORMANCE MANAGEMENT

Performance Management is a complex concept that encompasses different


dimensions of the organization and the people. The mission, the objectives and
the goals of the organization should be well designed. Performance planning,
development and reward systems enable the managees to realize their true
potential in order to contribute for organizational growth and development.

The managees‘performance and quality is a function of several prerequisites


that managers need to take care of. The following constitute the prerequisites
/characteristics to ensure effective practice of PfM:

1. Clarity of organisational goals – the managers need to clearly and


precisely lay down the organisational goals, objectives and ensure that these
are well informed to the managees and other employees and make them to
realize what the organisation expects from them. The organizational goals
need to be translated into individual, team and departmental/ divisional goals.

2. Evaluation – the individual, team, department/ divisional performance


needs to be evaluated on continuous basis. The organization should develop an
evaluation system and process, which is designed and developed on scientific
lines.

3. Cooperation but not control – the managers should nurture the practice of
getting work done through the system of obtaining managees‘consensus rather
than through control or coercion.

4. Self-management teams – the management need to encourage the


individual and teams for self-management of their performance. This
procedure creates in the managees a sense of responsibility and develops a
spirit to work with commitment and evaluate his/her strengths and weaknesses
from time to time and plan for reducing the performance gaps.

5. Leadership development – the managers need to identify such of the


managees who have leadership potential and apart from sincerity and
honesty to ensure better and effective two-way communication between the
managers and the managees.

6. System of feedback – the organization must have a foolproof feedback


system of managees/ individuals/ teams/ departments ‘performance. It should
be monitored continuously and generate feedback loops for better performance
management.

There must be a system that would help to monitor and measure all
performance against the set standards and the managees need to be informed
of their shortcomings. The evaluation system should be made transparent so as
to repose managee‘s faith in the system.

SCOPE OF PERFORMANCE MANAGEMENT


The Performance Management should conform to broad organizational
framework. It should provide for managers and managee shared experiences,
knowledge and vision. It encompasses all formal and informal measures and
procedures adopted by organizations to increase corporate, team and
individual effectiveness. Managees/ employees should be enabled
continuously to develop knowledge, skill and capabilities. Performance
Management has got to be understood in totality of the organization but not in
various parts. Performance Management is designed and operated to ensure
the interrelationship of each of these processes in the organization.

Performance Management assumes that the managers and team members


share accountability for performance by jointly agreeing on common set of
goals i.e., what they need to do and how they need to do it. They jointly
implement the agreed plans and monitor outcomes.
Performance Management is concerned with everything that people do at
work. It deals with what people do (their work), how they do it (their
behavior) and what they do it (their result).

Performance Management data generated by the appraising process is used


primarily for deciding rewards. Including performance related pay. However,
it is not the integral part of Performance Management process.

THE PROCESS OF PERFORMANCE MANAGEMENT

The process of performance management has the following steps:

 Performance planning
 Day-to-day coaching

 Day-to-day feedback

 Check-in of quarterly performance

3. Methodology

TITLE OF THE RESEARCH STUDY:

To identity the effects of performance review techniques on employee's


performance in “S.S. ASSOCIATES”.

DURATION OF THE RESEARCH STUDY :

This study was came out fix duration of 45 days.

BASIC TERMS OF PRESENT RESEARCH STUDY:

Performance: Performance means both behaviors and results. Behaviors


emanate from the performer and transform performance from abstraction of
action, Not just the instruments for results behavior also customers in
their own right- the product of metal and physical effort applied to
tasks and can be judged apart from results (Brumbach, 1988).

MANAGEMENT:
Management is the art of getting things done through and with people
in Anomaly organized group (According to Harold Koontz). System
An organized, purposely structure that comes of interrelated and
interdependent elements (compounds, entities, cores, members, parts
etc.). These elements continue to influence one another directly or
indirectly to maintain their activity and the existence of the system in
order to achieve the goal of the system.

RATIONALE OF THE RESEARCH STUDY:

When it comes to performance, employee's performance is one the


main in organizational success. Therefore, it is an need of the hour
where organizational has to make very specific efforts for improving
employee's performance 10 optimally utilize knowledge and skills of
their employees. The proposed research study also would report on
employee's feedback as well as expectations & experiences with
regard to selected performance management system It also list out
suggestions for overall improvement for employees effective
performance The research study would make an attempt to find the
impact of performance management system on effective employees
performance.

3.1 SCOPE & COVERAGE OF RESEARCH STUDY :


The research was conducted in S.S. Associates. The research study was focus
on performance management system in S.S. Associates. It also measure
evaluate the effective performance on the basis of employee's overall
awareness, expectations and satisfaction or dissatisfaction as an outcome of
offering various kinds of creative & employee's morale as offered by the
performance management system of S.S. Associates.

3.2 OBJECTIVES OF RESEARCH STUDY:

The objective of the study area-

 To empirically assess performance management as a tool for


improving performance.

 To identity the effects of performance review techniques on


employee's performance.

3.3 RESEARCH DESIGN:

The research design of this study considering is objective, scope & coverage
was exploratory as well as descriptive in nature.

SOURCES OF INFORMATION
PRIMARY DATA
The primary data has been from the selected courses & sent executive at
various departments of S.S. Associates through circulation of the structured
non-disguised questionnaire.

SECONDARY DATA

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

SAMPLING DECISIONS

SAMPLE SIZE

Appropriate number of sample size was put to used for the purpose of
collecting primary data from the selected samples of different departments of
the S.S. Associates

Sample size :- 54.

3.4 SAMPLING METHOD


Non-probability sampling design based on convenience sampling method has
been used for this research study.

SAMPLING FRAMES
The representative sampling units in appropriate & justified size has been
conveniently drawn from amongst different employees are various
heterogeneous Socio economic age groups, occupations, educational
qualifications gender who have availed incentives employees monk as offered
by the performance management system of the S.S. Associates.
RESEARCH INSTRUMENT:

A structured non-disguised questionnaire has been more to get the relevant


information from the respondents. The questionnaire consists of variety of
questions presented to the respondents for their responses The researcher has
been used questionnaire with the support & cooperation of the selected
respondents of various departments at managerial and non-managerial level of
S.S. Associates.

SAMPLING MEDIA:

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

DATA COLLECTON ANALYSIS & INTERPRETATION:

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

SIGNIFICANCE OF THE RESEARCH STUDY:

This research study has covered the performance management system which
help to find effective performance of the employees. The employees has been
aware of the panel standard of the company. It has been create awareness of
performance management system to improve effective performance and also
to the different criteria of the S.S. Associates. This research study also assists
to S.S. Associates authorities in the designing of the performance management
system for improving performance. Organization will be able to develop
performance review techniques to control the performance of the employees.

LIMITATIONS OF THE RESEARCH STUDY :

 The researcher has used selected statistical tools which are relevant to
research study & thus having limited generalizability.

 The employees were reluctant to give correct information.

 The investigator intended to cover only few areas of performance


management system.

 The sample size selected by the researcher is limited.

 The time factor in collecting the research study has been limited factor.

In lieu of the variation in the parenting involvement of selected employees at


different departments of S.S. Associates, there may be inaccuracy of the
responses given by them.
GENERAL PROFILE OF RESPONDENTS:

(1) Gender –

Sr No. Gender Frequency Percentage%


1 Male 50 92
2 Female 4 8
TOTAL 54 100

Gender

male
female
(2) Age –

Sr. No. Frequency Percentage%


1 20-25 12 22%
2 26-35 24 45%
3 56-50 18 33%
TOTAL 54 100

Age Sales,Age
20-25 26-35
Age, 0, 56-50
0%

Sales,
20-25,
Sales, 56-
12,
50, 18,
22%
33%
Sales, 26-
35, 24, 45%

(3) Qualification -

Sr. No. Educational Frequency Percentage %


Qualification
1 Graduate 22 37
2 Post Graduate 12 20
3 Diploma 6 10
4 Others 14 23
TOTAL 54 100%

The chart depicts that:


37% of the employees are graduate,
23% of the employees are others,
20% of the employees are post graduate,
10% of the employees are diploma holders.

Majority employees are Graduate.

Chart Title

graduate
post graduate
diploma
others

(4) Job Experience –


Sr. No. Job Experience Frequency Percentage%
1 Less than one 04 07
year
2 2-4 years 34 56
3 More than 4 16 37
years
TOTAL 54 100%

From the above table, 56% of the employees have work experience of
2-4 years, 37% have work experience more than 4 years, 7% of the
employees have the work experience of less than one year.

Chart Title

Less than one year 04

2-4 years

More than 4 years

Que.1 Do you believe the current performance management system is


improving performance?
Response Frequency Percentage%
YES 50 93
NO 4 7
TOTAL 54 100

From the above table 93% of the respondents believes that the current
performance management system does affect the performance where as, 7% of
the respondents do not believe that the current performance management
system is going anywhere.

Majority of them believes that the current performance system does helps in
improving performance.

Column1, Column1,
Chartno
yes , 0,
Title
no, 4, 7% 0%

Column1, yes,
50, 93%

Que.2 Do you believe that Performance management helps me to motivate


my team? (HR Perception)
From the above table all the HR professionals strongly agree that performance
management helps to motivate team

Que.3 Do you believe performance management helps me to decide how

Particulars Frequency Percentage%


Strongly Agree 3 100
Agree 0 00
Neutral 0 00
Disagree 0 00
Strongly Disagree 0 00
TOTAL 03 00
much to pay the members of my team ?

From the above table all the HR professionals believes that performance
management helps to decide how to pay the each individual.

Que.4 Do you believe that Performance management helps developing


the skill & capabilities of my team?

Particulars Frequency Percentage%


Strongly Agree 3 100
Agree 0 00
Neutral 0 00
Disagree 0 00
Strongly Disagree 0 00
TOTAL 03 00
From the above table all the HR professionals believes that performance
management helps in developing the skill and capabilities of an employee.

Que.5 Do you believe that I am not comfortable with conducting the


performance reviews?

Particulars Frequency Percentage%


Strongly Agree 1 33.33
Agree 0 00
Neutral 1 33.33
Disagree 1 33.33
Strongly Disagree 0 00
TOTAL 03 00

Particulars Frequency Percentage%


Strongly Agree 3 100
Agree 0 00
Neutral 0 00
Disagree 0 00
Strongly Disagree 0 00
TOTAL 03 00
From the above table all the 3 HR professional distinguish with their opinion
of the fact that I am not comfortable conducting the performance review.

4. Analysis

4.1 ORGANIZATIONAL PERFORMANCE

Organizational Performance what it is?

Performance is all of these. It‘s the end result of an activity. And whether that
activity is hours of intense practice before a concert or race or whether it‘s
carrying out job responsibilities as efficiently and effectively as possible,
performance is what results from that activity.

Managers are concerned with organizational performance—the accumulated


end results of all the organization‘s work processes and activities. It‘s a
complex but important concept, and managers need to understand the factors
that contribute to high organizational performance. After all, they don‘t want
(or intend) to manage their way to mediocre performance. They want their
organizations, work units, or work groups to achieve high levels of
performance, no matter what mission, strategies, or goals are being pursued.

Why is Measuring Organizational Performance Important?

Managers measure and control organizational performance because it leads to


better asset management, to an increased ability to provide customer value,
and to improved measures of organizational knowledge. In addition, measures
of organizational performance do have an impact on an organization‘s
reputation.

The value created by Michael Jordan and other assets of the Bulls (coach Phil
Jackson; other talented team players including Scottie, Pippen and Dennis
Rodman; experienced marketing, operations, and financial employees; and
other resources including the arena and practice facilities, available capital,
etc) was possible only because they were managed extremely well as a
portfolio of assets. That‘s what managers at high-performing companies do—
they manage the organizational assets in ways that exploit their value. Asset
management is the process of acquiring, managing, renewing, and disposing
of assets as needed, and of designing business models to take advantage of the
value from these assets. It‘s not just the top-level managers who are concerned
with asset management.
Managers at all organizational levels and in all work areas manage their
available assets—people, information, equipment, and so forth—by making
decisions that they hope will lead to high levels of performance. Because
achieving high levels of organizational performance is important in both the
short run and long run, managers look for ways to better manage their assets
so that they look good on the key performance measures used by both internal
and external evaluators.
Increased Ability to Provide Customer Value providing value to customers is
important for organizations. If customers aren‘t receiving something of value
from their interactions with organizations, they‘ll look elsewhere. Managers
should monitor how well they‘re providing customer value, and they can do
that when they measure performance. For example, at IBM‘s Industry
Solutions Laboratories in Hawthorne, New York, Stuttgart, Germany, and
Yamato, Japan, customers interact with IBM researchers to come up with
technological solutions that meet their unique and challenging needs. For
instance, Britain‘s Safeway Stores PLC and the Hawthorne Lab collaborated
on a consumer application that gives top customers the ability to conveniently
create and maintain personalized grocery shopping lists and preorder groceries
using a portable handheld device. And the Hawthorne Lab completed a project
for Southwest Airlines that automated the crew-pairing process-a company
logistics nightmare in which 2,700 pilots, 4,500 flight attendants, and more
than 2,400 daily departures had to be logistically coordinated. It was important
for the lab‘s managers to be able to measure how well they solved customer
problems and to gauge their ability to provide customer value.

Impact on Organizational Reputation You knows that your personal reputation


is important in what others think of you. It influences whether they will ask
you for advice, listen to what you have to say, or trust you to complete
assigned tasks. Organizations strive to have good reputations, as well. They
want others—customers, suppliers, competitors, community, and so forth—to
think highly off them. The advantages of a strong correlation between an
organization‘s financial performance and its reputation. Which leads to the
other? It‘s not always clear which comes first, but we do know it‘s difficult to
have one without the other. In fact, a study of reputation and financial
performance showed a strong correlation between good reputation and strong
financial measures such as earnings growth and total return.

4.2 Measures of Organizational Performance

There are three ways of measuring organizational performance. Generally


applied measures are –

1. Productivity

2. Organizational Effectiveness,

3. Organizational Ranking.

Peter F. Drucker the well-known management guru was of the view that an
organization‘s employees need to see the connection between what they do
and the outcomes. He said, ―The focus of the organization must be on
performance… The spirit of organization is high performance standards, for
the group as well as for each individual. But before employees can see this
connection and work toward achieving high performance, managers need to
specify the performance outcomes that will be measured. The most frequently
used organizational performance measures include organizational
productivity, organizational effectiveness, and industry rankings.

Productivity is defined as the overall output of goods or services produced


divided by the inputs needed to generate that output. Organizations strive to be
productive. They want the most goods and services produced using the least
amount of inputs. Output is measured by the sales revenue an organization
receives when those goods and services are sold (selling price x number sold).
Input is measured by the costs of acquiring and transforming the
organizational resources into the outputs.

It‘s management‘s job to increase productivity by reducing the input cost and
increasing the output price (selling price). Doing this means being more
efficient in performing the organization‘s work activities. So, organizational
productivity becomes a measure of how efficiently employees do their work.
―We are increasing our company‘s capability by increasing the capability of
our employees.‖ Ford was investing in its future productivity by making
employees more efficient in their job-related use of the Internet, said the Chief
Information Officer of Ford Motors.

Organizational effectiveness is a measure of how appropriate organizational


goals are and how well an organization is achieving those goals. It‘s a
common performance measure used by managers.
Other descriptions of organizational effectiveness have been suggested by
management researchers. For instance, the systems resource model or
organizational effectiveness proposes that effectiveness is measured by the
organization‘s ability to exploit its environment in acquiring scarce and valued
resources. The process model emphasizes the transformation processes of the
organization and how well the organization converts inputs into desired
outputs. Then, finally, the multiple constituencies‘model says that several
different effectiveness measures should be used, reflecting the different
criteria of the organization‘s constituencies. For example, customers,
advocacy groups, suppliers, and security analysts each would have their own
measures of how well the organization was performing. Although each of
these different effectiveness models may have merit in measuring certain
aspects of organizational effectiveness, the bottom line for managers continues
to be how well the organization accomplishes its goals. That‘s what guides
managerial decisions in designing strategies, work processes, and work
activities, and in coordinating the work of employees.

Ranking of Industries is determined by specific performance measures. For


instance, Fortune‘s Top Performing Companies of the Fortune 500 are
determined by financial results including, profits, return on revenue, and
return on shareholder‘s equity; growth in profits for 1 year, 5 years, and 10
years; and revenues per employee, revenues per dollar of assets, and revenues
per dollar of equity. Industry Week’s Best Managed Plants are determined by
organizational accomplishments and demonstrations of superior management
skills in the areas of financial performance, innovation, leadership,
globalization, alliances and partnerships, employee benefits and education,
and community involvement. Thus, different agencies apply different
parameters or measures through which performance of organizations is
decided to rank the Industry/organization.

PERFORMANCE MANAGEMENT IN SMME’S

In the last few years, small, medium and micro enterprises (SMMEs)
developed into an important role player in the South African economy.
SMMEs are viewed as a key source of employment, and one of the objectives
of the National Skills Development Strategy is to stimulate and support skills
development initiatives in SMMEs. In view of this, performance management
should be an important aspect in SMMEs, but it often is not applied.
Key challenges in SMMEs that impact on effective performance management
include:

 Strategy is not always clear, defined or formalised

 Decisions are not taken to lower levels (“family business” syndrome)

 SMMEs often experience the following dilemma’s:

 There is little time

 Few resources and finances

 Little support

 Inadequate managerial skills

In order to ensure Performance Management is effective in SMME’s, the


following can be considered:

 Keep it simple
 Make sure you have a formal defined strategy before you implement
performance management

 Link the targets of individuals to key business objectives

 Where appropriate, make use of available resources (consultants, donor


projects, etc).
PERFORMANCE AND REWARD

Over the past few years Indian Corporates have increasingly started to link
reward to performance. “Consequence” management is a term that is used
more and more – the underlying assumption is that direct reward (or the
withholding thereof) will strongly impact on the employee’s motivation to
perform better.

The following assumptions often underpin the link between performance and
reward:

 What gets measured gets done

 What gets rewarded is sustained

 Measures give rewards relevance, and rewards give measures meaning

 The majority of workers want recognition for achievement

 Reward has a high retention value


This aspect of the Performance Management process is however very complex
and highly emotional and often fails to deliver the expected positive results.
Dilemmas in reward can often be traced back to issues such as:

 Lack of objectivity

 Lack of transparency

 Affordability

Performance-based pay and rewards often fail because of the following:

 Lack of objective and quantitative measures

 Poor link between pay and performance (no immediate reinforcement)

 The aspects that get rewarded are not linked to strategy – the “wrong”
behaviour and achievements are sustained

 Poor communication regarding objectives, benefits and procedures (the


“rules of the game”)
5. Conclusions

Effective management of individual and team performance is a crucial and


central requirement to ensure stakeholder requirements, organisational strategy
and business goals are attained. This requires accurate data regarding
performance levels of business units, teams and individuals, and therefore the
need for a standardised and formal performance management system.
An effective performance management system is the centre of an integrated
HR System and the performance data feeds into a variety of processes and
systems, for example:

 Career planning
 Rewards
 Training and development
 Disciplinary decisions
 Promotions, etc

Despite the importance of performance management, most organisations find


it difficult to implement, manage and sustain performance management
systems and processes effectively. It is therefore crucial to ensure adequate
planning, evaluation and training is done that will support a sustainable
process. This is possibly one of the reasons why performance management
systems have evolved and changed significantly over the years – each new
approach an attempt to make it better, more effective and more acceptable to
end-users..

6. Recommendations/ Learning

Important requirements for an effective performance-based reward


strategy include:

 Establish a pay-for-performance work culture

 Ensure employee acceptance

 Ensure a clear line of sight

 Set high, but attainable standards of performance

 Standards should be clear, well defined and accepted

 Rewards should be simple and understandable


 Effective administration

Rewards for performance can include:

 Performance-based increases (annual increments)

 Individual and team-based incentives

 Performance bonuses

 Commissions

 Gain-sharing (where staff share in the gains of cost reductions or


improved productivity in the form of cash rewards)

 Profit-sharing (where a portion of the profits of a company is


distributed amongst staff, allowing them to share in the financial
success of the company)
 Employee share ownership plans (ESOP’s)

 Suggestion schemes

7. References

Websites:

www.google.com

www.scribd.com

Books:

Performance Management (Robert Bacel, 2011)

Performance management system and strategies (D K Bhattacharyya 2011)


8. Appendix

NATURE OF CURRENT PERFORMANCE MANAGEMENT


SYSTEM:

Do your organization operate formal performance management system?

Sr. No. Response Frequency Percentage%


1 Yes 44 81
2 No 10 19
TOTAL 54 100

From the above table, 87% respondents are in favour of organization operate
formal performance management system, 13% respondents are not in favour
of organization operate in formal performance management system.
Column1, No, Column1,
Yes , 0,No Column1, , 0,
10, 19% 0% 0%

Column1, Yes

, 44, 81%

(1) If yes, which of the following groups of employees do this


processes apply to?

Sr No. Levels Frequency


1 Senior managers 2
2 Other managers 10
3 Professionals 30
4 Technical/clerical 12
TOTAL 54

From the above table, out of 54 respondents, 30 from the professionals do this
process applied, 10 from the others, 12 from the technical, 2 from the senior
managers do this process applied.

Mostly this process is applied to professionals group of employees.


Senior managers 2

Other managers

Professionals

(2) What are the techniques that are used in your organisation for
assessing performance?

Sr. No. Techniques Frequency Percentage%


1 Observation 6 10
2 Assessment & 2 03
Development
Centre
3 Checklist 46 87
TOTAL 54 100

From the above table, 87% of the respondents are in favour of checklist
techniques that are used in organization for assessing performance, 10%
respondents are in favour of observation techniques that are used in
organisation for assessing performance, 3% respondents are in favour of
assessment & development centres techniques that are used in organisation for
assessing performance.

Majority respondents believed in checklist techniques that are used in organisation


for assessing performance.

observation

assessment &
development
checklist

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