INTRODUCTION

There are various meanings of performance management, but in reality, it is

about improving the performance; of the employees, the organization or both.

Performance management usually refers to many initiatives that are taken on-

board by management to ensure that performance is more manageable. While

performance management can be seen through various perspectives; including

strategy, organizational behavior, operations management, economics, accounting

and HRM, this research will focus on how to enhance employee and organizational

performance.

Poorly implemented performance systems have a negative impact on

organizations and can lead to increased employee turnover. If employees see that the

performance process is unfair, they will leave the organization or withdraw

psychologically. In other words, they will put in minimum effort towards their work

until they find another job and then resign. A system that is not standardized will

provide misleading and fabricating information about employee performance.

This will lead to lowered self-esteem, damaged relationships and decreased

motivation to perform on the part of employees. Further to this, employees will

experience increased level of job burnout and job dissatisfaction. From the

management point of view, systems that are poorly implemented will increase the risk

of litigation. Employees may file lawsuits against the organization for being appraised

unfairly and for mistreatment. In addition to this, there will be emerging biases,

unclear rating systems and these will lead to decreased productivity within the

organization.
 This process requires more interaction between the supervisor and supervisee

and encourages the professional development of the employee to meet the

organization’s changing needs. While this more dynamic evaluation process is time-

consuming, the increased productivity levels resulting from performance management

have proven to be valuable to many organizations.

STATEMENT OF THE PROBLEM

Employee perceptions and attitudes affect employee performance, which in

turn affects organizational performance and productivity. Therefore, the focus of this

study is to know the effectiveness of the performance management system in the

Kerala Feeds, Kalettumkara with the aim of developing a suitable improved

performance management system.

OBJECTIVES OF THE STUDY

 To understand the importance of Performance Management System in Kerala

Feeds, Kalettumkara that synchronizes the performance of the employees so as

to make the work effective.

 To study the process and methods of existing performance management

system.

 To suggest the ways to improve the performance of employees and thereby

improving the overall performance of the company.

RESEARCH METHODOLOGY

Research methodology is a way of systematically solving the research

problems. It may be understood as a science of studying how the research is done

scientifically. It studies the various steps that are adopted by researcher in studying
the research problems. It is necessary to the research process but also the

methodology.

SCOPE OF THE STUDY

The study on performance management system provides many scopes as the

productivity is entirely depend upon the performance. The present study aims at

knowing the performance management system among the employees with special

reference to Kerala feeds, kalettumkara. The study helps to know the performance

management system among the employees. The study is mainly conducted among the

staff and workers who are related with Kerala Feeds, Kalettumkara.

LIMITATIONS OF THE STUDY

 The study is undertaking within a short span of one month.

 Lack of co-operation from certain employees due to their tight schedules.

 Wrong opinion expressed by the employees due to fear also affected the

genuineness of the result.

PERIOD OF THE STUDY

This project work has been done as a part of BBA program which was

conducted for 1 month.

 INDUSTRY PROFILE

The Indian feed industry is about 35 years old. The quality standards of Indian

feeds are high and up to international levels. Raw materials for feed are adequately

available in India. The feed industry has modern computerized plants and the latest

equipment for analytical procedures and least-cost ration formulation, and it employs

the latest manufacturing technology. The poultry industry is now growing in

importance. Today, the Indian feed industry is worth approximately Rs 45 billion, that

is about US$1 billion.

The animal feed and fodder industry is another ago-based industry, which

helps the growth of dairy industry also. Acute shortage of feed and fodder, one of the

weaknesses of Indian dairy industry. Keeping in view the growth rate of population,

income, demand for food, it is estimated that India would need around 215 million

tons of food grains. One of the trends to be followed is that productivity in livestock

sector continues to be guided by population, rather than increase in productivity levels

per unit of production. Researches pertaining to intensive feeding, breeding and

management need to be strengthened. India has one of the largest populations of

domestic animals that provide diverse products such as milk, meat, wool, eggs and

skins.

The cattle feed business is growing by a CAGR of more than 30% as milk

producers have started replacing traditional feed with more nutritional DOC having

realized the tangible benefits in terms of yield improvements. Also, there is an

increasing trend in diversion of soya-bean meal for human based consumption leading
to bigger market share of cottonseed meals for cattle feed in India. State and Central

Govt. are concentrating on incremental increase of cattle’s in the state / country.

These cattle’s provide self-employment to the beneficiary by generating sufficient

income through their produce or flash.

In India the animal feed industry is of recent origin, the first animal food plant

having been established in 1960. There are today as many as 14 plants in the

organized sector, besides many small feed compounders, which operate in large cities.

The 14 organized units have modern or semi modern equipment for manufacturing

compound feeds. All of them have excellent facilities for quality control and are well

equipped for chemical analysis of raw materials and the finished products. The

installed capacity for all types of feeds that can be produced in the units under

organized sector in India is estimated in the neighborhood of 630000 metric tons a

year. Taking into account the expansion plans of the organized sector, it is anticipated

that the capacity of this industry in India is likely to increase rapidly.

India has the largest cattle, buffalo and goat population according to latest

census. There are about 200 million cattle, 50 million buffaloes and 90 million goats

in the country. About one sixth of the cattle, about half of buffalo and one fifth of goat

population in world are in India. Animal husbandry plays an important role in the

national life and accounts for about 10% of the national income. In particular the

contributor of the cattle and buffalo to the economy is considerable. They are the

main source of drought power in agricultural operations and rural transportation they

provide essential, foods like milk and meal.

Industries playing increasing roles in the struggle against world hunger include the

poultry industry, which require less capital to enter than other animal industries, and

the feed industry, which provides economical, feeds upon which the poultry industry

depends. Any entrepreneur venture into this field will be successful.

KERALA FEEDS INDUSTRY

Setup in 1995, Kerala Feeds Ltd was incorporated under the Companies act —

1956 with a production capacity of 500 TPD. The production was enhances to 650

TPD in June 2006. Kerala Feeds Limited is a Public Sector Undertaking under the

control of Government of Kerala. The Company is committed to produce and sell

good quality compounded cattle feed and feed supplements to dairy farmers at

affordable rates. The manufacturing technology and the Plant & Machinery of the

Company are one of the best in the country and consequently we are able to supply

consistent good quality feed in the form of pellets to dairy farmers. Imported

equipment’s, advanced technology and commitment to produce good quality of

pelletized cattle feed provides a cutting edge to the Company in the market as

compared to its competitors. Owing to its excellent quality, Company's products have

got very good demand in the market and always the demand exceeds the production

capacity. Being a Public Sector Undertaking, the Company has a definite role in

fulfilling the social obligation as well and consequently the Company's intervention

and presence in the market has saved the farmers from the exorbitant price increase of

cattle feed. This point is particularly worthy of mentioning especially for the period

2006 to 2009 when the cattle feed industry in India faced a turbulent period owing to

unprecedented increase in the price of raw materials. Companies in the private sector
are mainly operating on profit motive and consequently they increased the selling

price of cattle feed many times in tune with the increase in raw material cost during

this period. However Kerala Feeds Limited, being a Public Sector Undertaking has

the dual responsibility of profit motive as well as social obligation to support the dairy

farmers in their crisis period. Hence unlike a company in private sector, Kerala Feeds

Limited has not made matching increase in the price of its cattle feed in line with the

increase in raw material cost and to a large extent Company's presence in the market

saved the dairy farmers from exorbitant price increase of cattle feed. Government of

Kerala is committed to ensure this social responsibility and consequent to

Government policy and direction of controlling the price of cattle feed, board of

Directors of the company also give due priority to this aspect.

 REVIEW OF LITERATURE

Numerous studies have been conducted on Performance Management System

all over the world. The concept of Performance Management System has been

developed in many ways by many different researchers and practitioners

1) K. Chandhana and Dr. David T Easow (2015) in their article titled

‘Performance Appraisal Method Used in Top 10 IT Companies – 360 Degree

Feedback & Balanced Score Card: A Review’ has found that the both 360degree

feedback and balanced score card has its own loopholes, through these methods are

being used by top IT companies. The satisfaction levels of employees towards these

appraisal methods are very low and there is a need of a new appraisal method which

prevents these errors and has the advantages of these methods.

2) Rajput, et al, (2015) in their article titled ‘Performance Appraisal System’

explain that performance appraisal is conducted on an annual basis for existing

employees whereas for trainee and new recruits it is done on quarterly basis in many

organizations. Here author studies about the multidimensional nature of job where the

nurse manager gives rating to different job of nursing process. Thus, Employees who

have relatively less competition or lenient appraisers have higher appraisal than to

equally competent employee.

3) Rinku Sanjeev and Sanjeev Kumar Singh (2014) in their article titled

‘Employee Perception towards Performance Appraisal Program in Packaging

Industry’ suggest that the employees have both positive and negative perceptions

towards the Performance Appraisal Program in packaging industry. Employees’

perceptions also vary according to their demographic differences. The Performance

Appraisal Programs need transparency and well explained parameters for the

acceptance and satisfaction of employees as these impact the overall organizational

performance

4) Anbarasu Thangavelu and Dr. J Clement Sudhahar (2014) Performance

Management Challenges in IT Industry – An Overview’ conclude that the

performance management system for a large IT organization should be designed to

measure the past and potential performance of its employees and its own performance

in alignment with the states vision of the organization.

5) Jawad et al., (2014) ‘Impact of Technology on Performance of Employees

(A Case Study on Allied Bank Ltd, Pakistan)’found that the investment of

organizations in new technology has good impact on the performance of employees; it

increases their efficiency and productivity. It also makes the organizations more

competitive regarding customer services like in the case of Allied Bank, it become

more customers focused and services oriented.

6) Bethuel Sibongiseni Ngcamu (2013) ‘The Empirical Analysis of

Performance Management System: A Case Study of a University in South Africa’

concluded that the Performance Management System (PMS) to be effectively

implemented flexible PMS needs to be designed in order to accommodate all

employees at all levels. It further recommends that in order for the PMS to improve

effectiveness amongst employees; well-crafted job descriptions in line with

departmental strategic plans that are aligned with the comprehensive organizational

strategy; need to be brought to light.

 THEORETICAL FRAMEWORK

Meaning

Performance management can be regarded as a systematic process by which

the overall performance of an organization can be improved by improving the

performance of individuals within a team framework. It is a means for promoting

superior performance by communicating expectations, defining roles within a

required competence framework and establishing achievable benchmarks.

Definition

According to Armstrong and Baron (1998), Performance Management is both

a strategic and an integrated approach to delivering successful results in organizations

by improving the performance and developing the capabilities of teams and

individuals.

Characteristic of Performance Management System

1) Goal-setting and management: Goals management is an integral part of an effective

performance management system. Goals are important because they challenge the

employees and motivate them to perform better. Setting goals would mean providing

direction, priority and time frame for an employee to achieve the objectives. Based

on the business models, goals are set by the employees and approved by the managers

or set by the managers.

2) Performance Appraisals: Performance appraisals are the heart of the employee

performance management system. Feedback questionnaires are created for employees

based on their goals and competencies. Performance manager software automates the

appraisal cycle. The automated reminders and notifications in the software help

reduce the manual follow-up efforts of HR to make the employees and managers to

complete the feedback process.

3) 360 Degree Reviews: An ideal performance management system does not only

stimulate feedback from the manager but considers an overarching perspective of

everyone who is involved in the business. You can even make this creative by adding

emoticons in the rating section. With a 360-degree review mechanism, there is an

upward feature through which employees can give anonymous feedback to their

managers. The managers will then be able to know how capable they are in terms of

their leadership skills and team management. Through this, employees can identify

the perception gaps between the managers and the employees.

4) Employee engagement: Employee engagement is the hallmark of a successful

performance management system. Employee engagement is the process of creating

the best work conditions for an employee to keep him motivated. When employees

are engaged, they give their best performance every day. In a performance

management system, engaging an employee would mean, having a system where

employees are reviewed on an overall basis, they are recognized for good

performance, rewarded for their achievements and are appreciated for their talent.

5) Continuous Feedback Mechanism: From the beginning, we have been emphasizing

one thing that is very significant for a successful performance management system. It

is a feedback mechanism that is continuous. In a performance management system,

continuous feedback promotes healthy collaboration between all the employees and
the managers. The feedback that is provided is accurate and timely. This process is a

lot more convenient than those excel sheets that you send every year. You can even

have a facility in which you can send confidential comments to the employees by

having a mobile app.

6) Performance Analytics: In order to do effective performance management, it is

important that your performance management system has a thorough record of all the

performance reports of the employees. It is important that your PMS has proper

records of all the employees' profile reports and career history so that the managers

can come up with strategies for employee’s talent management. For a PMS, details

such as employees' skills, training programs, and attrition rate are important because it

helps managers understand the various trends in employee performance.

 RESEARCH METHODOLOGY

Research methodology is the systematic way to solve the research problem. It

gives an idea about various steps adopted by the research in a systematic manner with

an objective to determine various manners.

POPULATION CHARACTERISTICS

Sample was taken from employees who are working in Kerala Feeds,

Kalettumkara.

SAMPLING PROCEDURES

Sampling may enable more accurate measurement of sample size from the

population or universe.

Simple random is used in this study. In simple random sampling, every

individual in the target population has an equal chance of being part of the sample.

A sampling procedure must reflect the unit of the analysis. In the study 50

samples were collected using questionnaire from various employees in the company.

SAMPLE SIZE

Sample is consisting of 50 respondents.

TYPE OF DATA

When working on the methods of data collection we are to understand that

there are two types of data namely.

1. Primary data

2. Secondary data

PRIMARY DATA

Primary data are these which are collected a fresh and for the first time. They

are original data that has been collected specially for the purpose in mind. Primary

data has not been published by and is more reliable, authentic and objective. Primary

data has not been changed or altered by human beings; therefore its validity is greater

than secondary data. The people who gathered primary data may be an authorized

organization, investigator, enumerator or they may be just someone with a clipboard.

Primary data is collected through the questionnaire and interview methods

SECONDARY DATA

Secondary data is the data that has been already collected by and readily

available from other sources. When we use statistical method with primary data from

another purpose for our purpose. We refer to it as secondary data. Secondary data is

data that is being reused. Such data are cheaper and more quickly obtainable than the

primary data.

These secondary data may be obtained from many sources. Including literature,

industry surveys, compilations from computerized debates and information systems

and computerized or mathematical models of environmental processes.

TOOLS FOR DATA COLLECTION

There are different tools for data collection such as distributing questionnaire,

conducting interviews and by observations. Questionnaire as well as interview

techniques for responses from the respondents.

TOOLS AND METHODS FOR ANALYSIS

In this study simple percentage method is used for analyzing the data.