Live Project

on
“A Study of Performance Management System at
Westside”

MASTER OF BUSINESS ADMINISTRATION

(BATCH 2018-20)

( Submitted in partial fulfillment for the completion of the degree of MBA )

Under guidance of: Submitted By:

Mr. Wasiq Iqbal Vijit Singh
H.O.D Mahar
MBA 2th Semester

Guru Ram Das Institute of Management & Technology, Dehradun

Guide’s Certificate

1
Guide Name : Mr. Wasiq Iqbal
Department of Management Studies
GRDIMT, Dehradun

This is to certify that the dissertation entitled “A Study on Performance Management System at
Westside” submitted by Vijit Singh Mahar is a bonafide record of research work done by him
under my guidance and supervision.

Mr. Wasiq Iqbal

H.O.D
Project Guide

Student’s Declaration

2
Vijit Singh Mahar

15235510113

Department of Management Studies

SGRRITS, Dehradun

Statement by the student

I Vijit Singh Mahar the undersigned, student of Guru Ram Das Institute of Management &
Technology, Dehradun, declare that this project report titled “A Study on Performance
Management System at Westside’’ is submitted in partial fulfillment of the requirement for the
research project during the Post Program in Management. I also declare that this is my original
work and has not been previously submitted as part of any other degree, diploma of another B-
school or University. The findings and conclusions of the data in this report are based on my
personal study, during the tenure of my research work

Date: Vijit Singh Mahar

Acknowledgement

3
I, hereby, declare that the dissertation entitled “A Study on Performance Management System”
is an authentic study carried out by me at “Westside” at Dehradun under worthy and esteemed
guidance of Mr. Wasiq Iqbal (Internal Guide).

I would like to pay my regards and thanks to her for consistent guidance rendered to me
throughout my research work.

I would also like to recognize the generous support received from my friends and numerous others
inside and outside the department who provided various suggestions to me to make my study
completed.

Appreciation also goes to the staff of the company who made their contribution in filling up the
questionnaires without which it would not have been possible for me to continue my research
project.

At last, I would like to thank my family who has been constant source of inspiration to me.

This work has not been submitted to any other University for Award of any Degree and is the
whole sole property of Guru Ram Das Institute of Management & Technology, Dehradun. Any
unauthorized use of this project is strictly prohibited. For further use, approval of the concerned
authority is mandatory.

Vijit Singh Mahar

TABLE OF CONTENT

4
S. No. TITLE OF THE TOPIC PAGE No.

1. CHAPTER 1: INTRODUCTION 6-19

2. CHAPTER 2: REVIEW OF LITERATURE 20-29

3. CHAPTER 3: RESEARCH METHODOLOGY 30-33

4. CHAPTER 4: DATA ANALYSIS AND 34-48

INTERPRETATION

5. CHAPTER 5: FINDINGS, SUGGESTIONS & 49-51

CONCLUSIONS

6. CHAPTER 6: BIBLIOGRAPHY AND 52-53

WEBLIOGRAPHY

7. CHAPTER 7: ANNEXURE 54-56

5
 CHAPTER-1

INTRODUCTION
1.1 History of Performance Management

6
 No one knows precisely when formal methods of reviewing performance were first introduced.
According to Koontz (1971), the emperors of the Wei dynasty (AD 221-265) in China had an
‘Imperial Ratter’ whose task was to evaluate the performance of the official family. Centuries
later, Ignatius Loyola (1491-1556) established a system for formal rating of the members of the
Society of Jesus (the Jesuits).

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

The first recorded use of the term ‘performance management’ is in Beer and Ruh (1976). Their
thesis was that ‘performance is best developed through practical challenges & experiences on
the job with guidance and feedback from superiors’. They described the performance-
management system at Corning Glass Works, the aim of which was to help managers give
feedback in a helpful & constructive way, and to aid in the creation of a developmental plan.

The concept of performance management then lay fallow for some years, but began to emerge in
the USA in the mid-1980s as a new approach to managing performance. However, one of the
first books exclusively devoted to performance managements was not published until
1987( Plachy 1987 ). In the UK the first published reference to performance management was
made at a meeting of the Institute of Personnel Management (IPM) Compensation Forum in
1987 by Don Beattie, then personnel director, ICL, who described how it was used as ‘an
essential contribution to a massive & urgent change programme in the organization’ and had
become a part of the fabric of the business. Full recognition of the existence of performance
management was provided by the research project conducted by the Institute of Personnel
Management (1992).

1.2 What is Performance Management?

There are few comprehensive definitions of Performance management. H M Treasury describe
Performance management as “Managing the Performance of an organization or individual”.
Whilst this is not a precise definition grounded in literature it demonstrates the breadth of
performance management and hence the difficulties in defining its scope, activities and
practices. It demonstrates that performance management is concerned with the management
of performance throughout the organization and as a result is a multidisciplinary activity.
Further, in their Glossary of Performance Terms the Improvement Development Agency
further suggest that –
“It involves you understanding and acting on performance issues at each level of your
organization, from individuals, teams and directorates, through to the organization itself. As

7
 well as involving performance measurement, systems and processes, performance management
is about managing people and ‘the way people within an organization operate and work
together’. Issues such as leadership, decision making, involving others, motivation, encouraging
innovation, and risk taking are just as important to bring about improvement”.

This definition further demonstrates the breadth of the subject highlighting some of the
activities involved in managing performance, requiring a range of different skills and functional
approaches. This provides challenges of terminology when we discuss the subject. Academic
research in particular tend to be undertaken in functional subject areas and often within
organizations managers sit in functions and take a functional perspective on the subject of
performance.

Despite this the clear multidisciplinary, the field of performance management has developed
from diverse origins. Different measurement and management techniques and approaches have
developed independently. Financial and particularly management accounting have been
concerned with measuring and controlling the financial performance of organizations,
operations have been concerned with “shop floor” performance often focusing on improving
throughput and efficiency whether that be from a manufacturing or a service perspective,
strategy have been concerned with developing plans to deliver future objectives (including
planned performance) and personnel (or HR) have been concerned with managing the
performance of people. It is relatively recently that performance management from these
disparate disciplines has begun to converge and recognise the need for integration into a
multidisciplinary approach to managing performance.

1.3 Definitions of Performance Management:

Armstrong (1994)

Performance management is a process for establishing shared understanding about what is to be

achieved, and an approach to managing and developing people in a way which increases the
probability that it will be achieved in the short and longer term

American Compensation Association (1996)

An effective performance management system aligns individual performance with the

organisation’s mission, vision and objectives.

Armstrong & Murlis (1994)

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

Bitici,Carrie & Mc Devitt (1997)

The performance management process is the process by which the company manages its
performance in line with its corporate & functional strategies and objectives. The objective of
this process is to provide a pro-active closed loop system, where the corporate and functional

8
 strategies are deployed to all business process, activities, tasks and personnel, and feedback is
obtained through the performance measurement system to enable appropriate management
decisions.

Lockett (1992)

The essence of performance management is the development of individuals with the

competence and commitment, working towards the achievement of shared meaningful
objectives within an organization which supports and encourages their achievement.

Hendry, Bardley and Perkins (1997)

A systematic approach to improving individuals and team performance in order to achieve

organizational goals.

IDS (1997)

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

IRS Management Review (1996)

Performance management is a way of translating corporate goals in to achievable objectives that

cascade down throughout the organization to produce optimum results.

Philpott & Sheppard (1992)

Performance management aims to improve strategic focus and organizational effectiveness
throughout continuously securing improvements in the performance of individuals and teams.

Walters (1995)
Performance management is about ‘directing and supporting employees to work as effectively
as possible in line with the needs of the organization’.

1.4 Aims of Performance management:

The Basic Aims:-

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

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

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

9
 These propositions imply that the basic aims of performance management are to share
understanding about what is to be achieved, to develop the capacity of people and the
organization to achieve it and to provide the support and guidance individuals and teams need to
improve their performance.

Another way of putting the overall and performance management is that it exists to establish a
culture in which individuals and group take responsibility for the continuous improvement of
the business process and of their own skills and contributions. It is about sharing expectations.
Managers can clarify their expectations of what they want individuals team members and their
teams as a whole to do, and individuals and groups can communicate their expectations of what
they should be able to do, of how they should be managed, the support and resources they need
and how their talent should be used.

The aim is to achieve consensus because, as Fletcher (1993) put it, ’our perceptions of what is
real and valid in the world depend on a consensus of shared beliefs.’ One of the aims of
performance management could be expressed as being to clarify the psychological contract.

Detailed Aims:-
In more details, the aims of performance management are two :
(1) Help to achieve sustainable improvements in organizational performance.
(2) Act as a lever for change in developing a more performance oriented culture.
(3) Increase the motivation and commitment of employees.
(4) Enable individuals to develop their abilities, increase their job satisfaction and achieve their
full potential to their own benefit and that of the organization as a whole.
(5) Enhance the development of the team cohesion and performance.
(6) Develop the constructive and open relationship between individuals and their managers in a
process of continuing dialogue which is linked to the work actually being done throughout the
year.
(7) Provide opportunities for individuals to express their aspirations and expectations about their
work.

Aims Suggested by other Commentators :

The American Compensation Association (1996) states that organizations rely on performance
management to :

(1) Document job responsibilities.

(2) Help define performance expectations.

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

10
(4) Provide ongoing opportunities for supervisors to coach and encourage personal
development.

(5) Align individual’s performance expectations with organizational goals.

1.5 Principles of Performance Management :-

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

 It translate corporate goals into individuals, teams, department and divisional goals.
 It help to clarify corporate goals. It is a continuous and evolutionary process, in which
performance improves over time.
 It relies on consensus and cooperation rather than control on coercion.
 It encourages self-management of individual performance.
 It requires a management style that is open and honest and encourages to two-way
communication between superiors and subordinates.
 It requires continuous feedback.
 Feedback loops enable the experience and knowledge and gained on the job by individuals
to modify corporate objectives.
 It measures and assesses all performance against jointly agreed goals.
 It should apply to all staff, and it is not primarily concerned with linking performance to
financial reward.
1.6 Concerns of Performance management :

Performance management is basically concerned with performance improvement in order to

achieve organizational, team and individual effectiveness. Organizations, as stated by Lawson
(1995), have ‘to get the right things done successfully’. Secondly, performance management is
concerned with employee development. Performance improvement is not achievable unless
there are effective processes of the continuous development. This addresses the core
competences of the organization and the capabilities of individuals and teams. Performance
management should really be called performance and development management.

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

Finally, performance management is concerned with communication and involvement. It

creates climate in which a continuing dialogue between managers and the members of their
teams takes place to define expectations and shared information on the organization’s mission,
values and objectives. This establishes mutual understanding of what is to be achieved and
framework for managing and developing people to ensure that it will be achieved.
Performance management can contribute to the development of the high-involvement

11
 organization by getting teams and individuals to participate in defining their objectives and the
means to achieve them.

1.7 Scope of Performance Management:

Performance management is about managing the organization. It is a natural process of

management, not a system or a technique (Fowler, 1990). It is a also about managing within
the context of the business (its internal & external environment). This will affect how it is
developed, what is set out to do and how it operates. The context is very important, and Jones
(1995) goes as far as to say ‘manage context, not performance’.

Performance management concerns everyone in the business- not just managers. It rejects the
cultural assumptions that only managers are accountable for the performance of their teams
and replaces it with the belief that responsibility is shared between managers and team
members. In a sense, managers should regard the people who report to them as a customers for
the managerial contribution and services they can provide. Managers and their teams are
jointly accountable for results and are jointly involved in agreeing what they need to do and
how they need to do it, in monitoring performance & in taking action.

1.8 Benefits of Performance Management:

The benefits to the organization, managers and individuals of well- conceived and well-run
performance management processes are summarised below:

For the Organization:

Align corporate, individual and team objectives.

Improve performance.

Motivate employees.

Increase commitment.

Underpin core values.

Improve training and development process.

Help to develop a learning organization.

Enlarge the skill base.

Provide for continuous improvement and development.

Provide the basis for career-planning.

Help to retain skilled employees.

Support total quality and customer service initiatives.

Support culture- change programmes.

12
 For Managers:

Provide the basis for clarifying performance and behavior expectations.

Afford a framework for reviewing performance and competence levels.

Improve team and individual performance.

Support leadership, motivating and teambuilding processes.

Provide the basis for helping underperformers.

May be used to develop or coach individuals.

Offer the opportunity to spend structured ‘quality’ time with teams and team members.

For Individuals:
Greater clarity of roles and objectives.

Encouragement and support to perform well.

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

Opportunities to spend ‘quality time’ with their managers.

Opportunities to contribute to the formulation of objectives and plans and to improvements in

the way work is managed and carried out.

An objective and fair basis for assessing performance.

1.9 Meaning of Performance Management System :

Performance management system (PMS) is the heart of any “people management processes’’
in organization. Organizations exist to perform. If properly designed and implemented it can
change the course of growth and pace of impact of organizations. If people do not perform
organizations don't survive. If people perform at their peak level organization can compete and
create waves. In the past organizations as well as the HR function have wasted a lot of time by
wrongly focusing on performance appraisals rather than performance management.
1.10 Contribution of Performance Management System :
There are many advantages associated with implementation of a performance management
system. A performance management system can make the following important contributions:

(1) Motivation to perform is increased: Receiving feedback about one’s performance increases the
motivation for future performance . Knowledge about how one is doing & recognition about
one’s past success provide the fuel for future accomplishments.
(2) Self-esteem is increased: Receiving feedback about one’s performance fulfils a basic human
need to be recognized & valued at work. This in turn is likely to increase employee’s self-
esteem.

13
 (3) Managers gain insight about subordinates: Direct supervisors & other managers in charge of
the appraisal gain new insights into the person being appraised. Also, supervisors gain a better
understanding of each individual’s contribution to the organization.
(4) The definitions of job & criteria are clarified: The job of the person being appraised may be
clarified and defined more clearly. In other words, employees gain a better understanding of
the behaviors and results required of their specific position.
(5) Self-insight & development are enhanced: The participants in the system are likely to develop
a better understanding of themselves and of the kind of development activities that are of value
to them as they progress through the organization.
(6) Administrative actions are more fair & appropriate : Performance management systems
provide valid information about performance that can be used for administrative actions such
as merit increases, promotions and transfer as well as terminations.
(7) Organizational goals are made clear: The goals of the unit and the organization are made
clear, and the employee understands the link between what she does and organizational
success. PMS can help improve employee acceptance of these wider goals.
(8) Employees become more competent: An obvious contribution is that employee performance is
improved. In addition, there is a solid foundation for help in employees become more
successfully by establishing developmental plans.

1.11 Disadvantages/ Dangers of poorly implemented PM Systems:

Increased turnover: If the process is not seen as fair, employees may become upset and leave
the organization. They can leave physically or with draw psychologically.
Use of misleading information: If a standardized system is not in place, there are multiple
opportunities for fabricating information about an employee’s performance.
Lowered self-esteem: Self-esteem may be lowered if feedback is provided in an in appropriate
and inaccurate way. This in turn can create employee resentment.
Wasted time and money: Performance management systems cost money and quite a bit of
time. These resources are wasted when systems are poorly designed and implemented.
Damaged relationships: As a consequence of a deficit system, the relationship among the
individuals involved may be damaged, often permanently.
Decreased motivation to perform: Motivation may be lowered for many reasons including the
feeling that superior performance is not translated into meaningful tangible or intangible
rewards.
Employee burnout & job dissatisfaction: When the performance assessment instrument is not
seen as valid and the system is not perceived as fair, employees are likely to feel increased
levels of job burnout & job dissatisfaction.
Increased risk of litigation: Expensive lawsuits may be filed by individuals who feel they have
been appraised unfairly.

1.12 Characteristics of an Ideal PM System

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

14
(2) Thoroughness: The system should be thorough regarding four elements: all employees should
be evaluated, all major job responsibilities should be evaluated, the evaluation should include
performance spanning the entire review period, not just the few weeks or months before the
review and feedback should be given on positive performance aspects as well as those that are
in need of improvement.
(3) Practicality: Systems that are too expensive, time consuming and convoluted will obviously
not be effective. Good, easy-to- use systems are available for managers to help them make
decisions.
(4) Identification of effective & ineffective performance: The performance management system
should provide information that allows for the identification of effective and in effective
performance.
(5) Reliability: A good system should include measures of performance that are consistent and
free of error. For example, if two supervisors provided ratings of the same employee and
performance dimensions, rating should be similar.
(6) Validity: The measures of performance should also be valid. In this context, validity refers to
the fact that the measures include all relevant performance facets and do not include irrelevant
performance facets.

1.13 Company Profile

This story began circa 1998 when The Tata's acquired Littlewoods – a London based retail
chain.

Westside offers a wide range of contemporary and exclusively designed apparel for the
woman of today. From the 9 to 9 collections of Wardrobe, the casual and confident LOV, the
young, edgy and colorful NUON, Diza and GIA for bold and curvy women, Wunderlove to
enhance your personal fashion quotient, the intricate collection of Vark, Bombay Paisley
with its range of quirky ethnic wear for youth, Zuba with its fine silk weaves or the forever
favorite Utsa - Westside has something for every trend conscious woman.

Keeping up with the latest trends in fashion, Westside has a vast and versatile array of apparel
for men. Westside for men includes brands like NUON, West sport, Ascot, ETA & WES.
Offering functional yet stylish men's apparel, Westside’s collection includes comfortable linen
& cotton shirts, casual and chic crew neck tees, cargo pants, contra formal clothing and
beyond.

15
 Revealing the secret to having the best-dressed children in the playground, parents can style
their little ones with the Baby HOP, HOP and Y&F ranges from Westside which has
everything from denims and polo tees to cute puff sleeve t-shirts & dresses.

Established in 1998 and part of the Tata group, Trent is headquartered in Mumbai but has pan-
India operations. Trent operates Westside, one of India’s largest and fastest growing retail
chains.

The company has already established 148 Westside departmental stores measuring 8,000-
34,000 sqft in floor space across 82 cities. The Westside format offers a predominantly
exclusive brands model across women’s wear, menswear, kids’ wear, footwear, lingerie,
cosmetics, perfumes and handbags, household furniture and accessories. Well designed
interiors and prime locations enhance the customer’s shopping experience.

Trent ventured into the hypermarket business in 2004 with Star Bazaar, providing an
assortment of products made available at the lowest prices, aptly exemplifying its ‘Helping
you spend less’ motto. This store offers customers an array of products that include staple
foods, beverages, health & beauty products, consumer electronics and household items at the
most affordable prices. Star Bazaar also includes a large range of fashionable in-house
garments for men, women and children, available exclusively at the store.

This store offers customers an eclectic array of products that include staple foods, beverages,
health and beauty products, vegetables, fruits, dairy products, consumer electronics and
household items at the most affordable prices. Star Bazaar also includes a large range of
fashionable in-house garments for men, women and children, exclusively available at the
store.

In addition, Landmark, one of the largest books & music retail chains was acquired by Trent in
2005. Landmark sparked the trend of stocking curios & other gift items. What separates
Landmark from other stores of its kind is the range and depth of its stock.

1.13.1 Areas of Business

 The Westside format offers an exclusive range of its own branded apparel and continues to be
the flagship business of the company.
 Trent Hypermarket operates in the ultra-competitive food, grocery and daily needs segment
under the Star banner.
 Landmark is a family entertainment format store with a focus on toys, adult and young adult
books, sports-related merchandise, tech accessories, gaming and stationery.

16
1.13.2 Segmentation, Targeting and Positioning
After research, we found that the Westside seems to be using income based segmentation and
targeting the upper middle and lower upper class of society. The brand is positioned on a
“fashion at affordable price” plank and as a family store delivering acomplete shopping
experience.

Are they successful in catering to these classes is a different matter altogether. The product
variety that they offer, the prices of the product that they offer, and the kind of association
people have with the brand is very different from what the Company wants. It seems that, at
the time of establishment, the Company had very set strategy on what customer base they
wanted to create. But since its inception, the Company has started to attract the customer from
other segments also. It seems that the Compan’s target segment, which was very clear at the
beginning, has become obscure. The reason for this shift is not very clear but we can speculate
that the company became sales driven instead of creating a loyal customer base. There has
been recent news that to improve its image and to attract the customer from upper segment
Westside is going to revamp their store. Westside has hired London-based retail consulting
agency named Flitch to add flare to its stores and to woo the customers from upper segment.

17
1.13.3 Product Strategy
Westside has a very interesting and broad product variety. The detailed product offering along
with its prices is given in the annexure. Given the business that Westside operates in, it is
incumbent that Westside has such a broad variety. Westside has tried to create a one stop shop
for complete family within its defined segment. But the problem with this strategy is Westside
cannot differentiate itself with its competitors. As most players in this industry operate on
same principle it is very difficult to set oneself apart from the competition.

As per our observation, the product variety that Westside offers change slightly from place to
place. The product variety which we could find in a place like Kolkata was not present in
Nagpur. As Mumbai is the headquarters of the Westside, these stores have the maximum
variety. It seems that Westside is doing a good job on offering different variety-based on the
consumer taste and preferences.

In case of apparels, along with its own brand, Westside also has contracts with the stalwarts of
industry like Levis, Wrangler, Lee Cooper, Provogue etc. In boutique section, Westside also
has brands like Biba, Trisha and Gia. The customer has a fairly wide variety of brand to
choose from. Having these renowned brands in the store attracts the brand conscious customer,
which normally would not have considered Westside. Also this gives a chance to Westside to
display its own brand and increase the brand awareness. Another hidden motive to display
such wide variety of brands is to increase the average ticket sales. Although the margin on
these standard brand is low, but it attracts the customer, and hence increases the chances of
sales of other items also.

In its endeavour to create a one stop shop, Westside has a contract with the cosmetic giant
L‟Oreal. In jewellery section, Westside displays very popular brand like D‟damas, Gilli,
Asmi, Nirvana etc. Westside also displays perfume brand like Ferrari. Inthe gifts section
Westside has its own brand and has products like coffee mugs, tea sets, dinner sets photo
frames, artificial flower, aromatic candles, different glass articles etc. Westside also offers
various accessories like purses for men and women, laptop bags, travellers bags, ties, fake
jewellery etc. Westside also hold wrist watches and sunglasses of very popular brand like Fast
Track, Titan, etc.

Another very interesting factor about Westside is that it gives its employees training on
aspects like product knowledge, workplace ethics, customer service policies and issues,
communication skills and courteousness.

18
1.13.4 Price Strategy
After studying the various product categories offered by Westside, we now analyse the various
pricing strategies adopted by Westside. Price communicates to the market the company‟s
intended value positioning of its product or brand. The pricing decisions are consistent with
the firm‟s marketing strategy and its target markets which is the neo-middle class. The
company does not set a single price but a pricing structure that reflects variations in
geographical demand‟ and costs, market-segment requirements, purchasetiming, order levels,
delivery frequency, guarantees, service contracts, and other factors. Consumer expectations
play a key role in price response. The company offers the Value for Money price by offering
their own brand „Westport‟ as they get rid of profit earned by intermediaries. They buy the
best possible fabric available in each product range and develop their own styles. 85%
collection comprises of their in-house brand. In recent past, it has been observed that there are
a lot of price variations in the company’s products showing that it wants to cater to much
larger sections of society. For example - Formal shirts for men ranging from Rs 500-2500,
women‟s designer purses ranging from Rs 800-10000.

19
CHAPTER -2

20
 REVIEW OF LITERATURE
 Study by DDI (1997), Performance Management Practices is the most recent performance
management study. It proves that successful organizations realize that performance
management is a critical business tool in translating strategy into results. The CEOs in the
majority of the 88 Organizations surveyed say their performance management system drives the
key factors associated with both business and cultural strategies. Performance management
systems directly influence five critical organizational outcomes: Financial performance,
productivity, product or service quality, customer satisfaction & employee job satisfaction.
When performance management systems are flexible & linked to strategic goals, organization
are more likely to see improvement in the five critical areas: team objectives, non- manager
training, appraiser accountability & links to quality management are the specific practices most
strongly associated with positive outcomes.
 Watkins (2007) puts it, most public sector business organization like those in Delta State of
Nigeria have not given adequate attention to performance management review as a tool for
improving performance even when recent studies suggest that performance review benefit
organizational performance in both private & public sectors. Performance management has
been described as a systematic approach to the management of people, using performance goal
measurement, feedback and recognition as a means of motivating them to realize their
maximum potentials. Public sector business organizations that strive to deliver quality services
at competitive prices are those that embrace various performance review practices to assess
their employee performance & motivate them with incentives.
 Robert & Angelo (2001), The success or failure of public sector business organizations
depends on the ability to attract, develop, retain, empower & reward a diverse array of
appropriately skilled people and is the key to improving organizational performance. The
explanation therefore is that human resource managers in the public sector business concerns
should embark on periodic performance management reviews of their employees in order to re-
position their business organizations though owned by government for better performance &
improved competitiveness.
 Study by Wm. Schiemann & Associates (1996), this national survey of cross-section of
executives concluded that measurement-managed companies- especially those that measure
employee performance- outperform those that downplay measurement.
 These research studied 122 organizations making between $27 million and $50 billion in sales. A
higher percentage of measurement-managed companies were identified as industry leaders, as
financially in the top third of their industry, and as successfully managing their change efforts.
The research examined performance in six strategic performance areas deemed crucial to long-
term success: Financial performance, operating efficiency, customer satisfaction, employee
performance, innovation/change, community/environment. The findings revealed that the
biggest measurement area separating successful from less successful firms is employee
measurement. Successful industry leaders simply do a better job than non-leaders at measuring
their workforce, which the study say is where real change won or lost.

21
  Study by Hewitt Associates (1994), The impact of performance management on organizational
success substantiates that performance management system can have a significant impact on
financial performance and productivity. The study used the Boston Consulting Group/HOLT
financial database to track the financial performance of 437 publically held U.S. companies
from 1990 through 1992.The study results showed that: Companies with performance programs
have higher profits, better cash flows, stronger stock market performance and a greater stock
value than companies without performance management. Productivity in firms without
performance management is significantly below the industry average, while productivity in
firms with performance management is on par with the industry average. Companies with
performance management significantly improved their financial performance and productivity
after implementing performance management.
 Williams (2002) identifies globalization, increased competition and the increasingly
individualistic rather than collective employee relationship as some of the major drivers
contributing to the increased visibility of performance management systems (PMS). Faced with
fast moving and competitive environments, companies are constantly searching for unique ways
in which to differentiate themselves from their competition and are increasingly looking to their
“human resources” to provide this differentiation. This has led to much interest in the
performance of employees, or more importantly, how to get the most out of employees in order
to sustain competitive success.
 The study by Eleni T. Stavrou, Christakis Charalambous and Stelios Spiliotis utilizes an
innovative research methodology (kohonen’s Self-organizing Maps (SOMs), Neural Network
Analysis) to explore the connection between human resource management as a source of
competitive advantage and perceived organizational performance in the European Union’s
private and public sectors. While practices in these two sectors did not differ significantly, three
diverse but overlapping HRM models did emerge, each of which involved a different set of EU
member states. Training & Development practices were strongly related to performance in all
three models and communication practices in two. These results show the usefulness of an
innovative technique when applied to research so far conducted through traditional
methodologies, and brings to the surface questions about the universal applicability of the
widely accepted relationship between superior HRM and superior business Performance.
 Sharmistha Bhattacharjee and Santoshi Sengupta (2011) studied that employees are the most
valuable and dynamic assets of an organization. For achieving the strategic objective of
sustained & speedy growth, managing human resource has been featured as a vital requirement
in all organizations. It is a challenge to monitor the entire cycle of defining the competence
requirement of the business, accessing existing competence in the organization and bridging the
gap between the two. HR practices are crucial for any organization. Every phase from
recruitment to exit interview is under the HR department. It is a challenge to monitor the entire
cycle of defining the competence requirement of the business, accessing existing competence in
the organization and bridging the gap between the two. In a manufacturing industry, with every
technical advancement business opportunities can show up. These opportunities can be
converted into business success only with performance alignment and competence management.
 The research paper of Mohammad Tanvi Newaz (2012) provides an analysis and evaluation of
the role of performance management system in shaping psychological contract at Sainsbury’s

22
 UK by a case study approach. Sainsbury’s has adopted the performance management system to
utilize the potential of their employees but result of data analysis indicates that line managers
have failed to achieve the objective of the performance management system. This research
analysis reveals how the line managers of Sainsbury’s focus on short term goal i.e. financial
success instead of long term goal i.e. employee development. However, the performance
management system of Sainsbury’s comprises all the necessary components to play a significant
role in developing employees as well as facilitating the formation of a positive psychological
contract. But partial and inattentive implementation of the system makes the situation
unfavourable for the psychological contract to develop at Sainsbury’s UK.
 The article of Javed Iqbal , Samina Naz, Mahnaz Aslam, Saba Arshad (2012), offers a survey
of selected literature on performance management. Purpose is to identify key themes that
govern the topic in the contemporary turbulent economic and business environment where
employees are more uncertain that anything else because every day they face downsizing,
volunteer retirement and “golden hand shakes’’ to get rid of them. Under these circumstances it
is worthwhile to look into the ways by which they can be motivated to work under hard
conditions. It is found that performance management processes, evaluation, its impact and
factors are key themes. Researchers apply popular research approaches for data collection
analysis and communication.
 The paper of Akua Asantewaa Aforo and Kodjo Asafo-Adjei Antwi (2012) shows that academic
libraries have a performance appraisal system comprising setting of goals, feedback,
participation and incentives for performance. This study aimed at evaluating the performance
appraisal system in the KNUST and GIMPA libraries in Ghana and give recommendations on
improving the system. Questionnaires were randomly administered to 46 staff members of these
libraries.
 The aim of this study of Akinyele S. T. (2010) was to evaluate the effectiveness of performance
appraisal system at private universities in Nigeria. The focus of the study was on the
administrative staff of Crawford University. The study evaluated the purpose of performance
appraisal in private universities and identifies relevant factors for achieving an effective
performance appraisal. A cross- sectional survey was selected for this study because it was easy
to undertake compared to longitudinal survey and the results from the same can be inferred to
the larger population. The study population was for all the administrative staff of Crawford
University. The whole populations of staff were selected as respondents. A structured
questionnaire was used to collect the data for analysis. The effectiveness of performance
appraisal systems in private universities are only based on training the members of staff
involved in the rating/ appraising process and are multi- rating systems. Conclusively because
the performance appraisal systems used in private universities are not effective and that they
exist just as a matter of formalities, the private universities cannot measure members of staff
performance, hence making it difficult to achieve the intended human resource management
objective.

 The paper of Al Bento and Regina Bento (2006) proposes and tests a model to explain three
critical outcomes of Performance Management Systems: information quality, effectiveness, and
usefulness of the PMS to managerial decision-making. Drawing from Organizational
Information Processing Theory (OIPT), we examined how those three outcomes may be

23
 influenced by factors that affect OIP requirements (industry, size, and geographic scope of
operations) and by organizational and technological factors that affect OIP capabilities.
Organizational factors included management's decision-making style and organizational
structure. Technological factors included the types of technology used in the PMS (ERP;
specialized tools such as EIS and DSS; and generic tools such as Excel, Access and Lotus
Notes), and the degree of use of e-commerce and Internet technologies.
 The study of George Ndemo Ochoti, Elijah Maronga, Stephen Muathe, RobertNyamao
Nyabwanga, Peter Kibet Ronoh (2012) investigated the multifaceted factors influencing
employee Performance Appraisal System in the Ministry of State for Provincial Administration,
Nyamira District, Kenya. A target population of 76 employees was surveyed. A structured
questionnaire was self-administered to the employees to collect data. Multiple regression
analysis technique was used to explain the nature of the relationship between PAS and the
factors that influence it. Results of the study showed that all the five factors: Implementation
process (X1), interpersonal relationships (X2), rater accuracy (X3), informational factors (X4),
and employee attitudes (X5) had a significant positive relationship with the performance
appraisal system (Y). It shows that if these factors are taken into consideration by the ratees, the
raters and the government policy makers, the PAS can be a good performance management tool.
 The paper of Jawaria Andleeb Qureshi, Asad Shahjehan, Zia-ur-Rehman and BilalAfsar
(2010) notifies that many organizations install Performance Management Systems (PMS)
formally and informally in their organizations, with the motivation to achieve better
organizational results. In practice, organizations have difficulty in implementing a performance
management system because its different dimensions are not taken into considerations enough.
This article describes the findings of a comparative analyses conducted between a standard
performance management model and performance management systems as applied by Local
Development Organization (LDO). Data was collected from 50 employees of the organization
with a Cronbach Alpha (0.935). Results identified barriers to implementation of effective PMS,
also recommendations and viable solutions are presented.
 Research of Leena Toppo, Twinkle Prusty (2012) informs that performance appraisal and
performance management were one of the emerging issues since last decade. Many
organizations have shifted from employee’s performance appraisal system to employee’s
performance management system. This paper has focused to study the evolution of employee’s
performance appraisal system, critics the system suffered and how the performance
management system came to the practice. The main purpose of this paper is to differentiate
these two systems, employee’s performance appraisal and management system. This paper uses
a review of the literature to evaluate the development of appraisal system and argues the critic
areas of appraisal system. Performance management eliminates the shortcomings of
performance appraisal system to the some extent.
 There are, however, several models which have attempted to explain how HR policies have an
impact on firm performance, one such model adopted as a conceptual framework in this paper is
the “People Process Framework” (Gratton 1996). This framework focuses on individual
performance linked to organizational performance and is designed to deliver short term business
objectives as well as long term sustainable success. The model clearly identifies a set of HR
practices which have been designed to link individual effort to the overall objectives of the

24
 business and also strikes a balance between achieving short term goals and preparing the
company for its future long term success. The major focus of the research will be on the
processes which contribute to short term business success, given their direct relevance to PMS
and the crucial role of line managers in their implementation. These short term processes are
critical to the overall success of the business as they provide the foundations to encourage
sustained performance through clear identification of objectives, continuous assessment of
performance against those objectives, reward strategies that emphasize the required behaviors
and the provision of training and skills which will improve performance. Implemented
correctly, these processes should enhance the individuals confidence in themselves and their
company creating an environment where employees “want to” perform rather than feeling like
they“have to” perform. Long term success is only possible therefore when the short term
processes generate this type of response.
 Lohr (1981) had stated that even Abraham Taylor (1856-1915) widely regarded as the father
of Scientific Management in his legendary thesis on performance improvement in organizations
had recognized the negative influences of groups on performance and sought to break-up
informal group activities through spatial and work-flow designs and individual piece rate
systems of pay. Taylor had based his management system on production-line time studies.
Instead of relying on traditional work methods, he analyzed and timed steelworkers’
movements on a series of jobs. Using time study as his base, he broke each job down into its
components and designed the quickest and best methods of performing each component
(Idemobi et al 2010). In this way he established how much workers should be able to do with
the equipment and materials at hand. He also encouraged employers to pay more productive
workers at a higher rate than others, using a “scientifically correct” rate that would benefit both
company and worker. Thus, workers were urged to surpass their previous performance
standards to earn more pay. Taylor called his plan the differential rate system. Rather than
quarrel over profits, both management and workers should try to increase production and by so
doing, he believed, profits would rise to such an extent that labour and management would no
longer have to fight over them.
 Timmons (1992) had opined that competitiveness is a major issue in foreign competition, and if
a country’s export promotion drive is to yield the desired results, competitiveness in particular
must be optimized. He further posited that the declining productivity in business organizations
which leads to un-competitiveness is a major cause of monetary problems and inflation, and
governments obviously should be interested in the level of competitiveness arising from
productivity improvement.
 Although the use of goal setting is primarily used to improve performance, there are other benefits
such as: to clarify expectations, to improve job satisfaction, to enhance self-esteem through
attainment of goals and to improve quality of work (Locke andLatham 1984).Appraisal
provides the mechanism to provide effective feedback onachievement of which is an important
factor in improving performance (Williams 2002).
 Fletcher (2004) describes it as a “high risk activity” for managers, given the many pit falls
associated with it and Newton and Findlay (1996) highlight the fallibility of appraisals as they
are open to manager manipulation. Despite the criticisms, the use of performance appraisal is
widespread and perceived to be an effective part of a performance management system (CIPD
2005a).

25
 Many organizations have looked to improve performance by linking it to pay; performance related
pay (PRP) can take many different forms (Williams 2002) and the type of reward and how it is
linked to performance management varies by organization (IDS 2003). There are many
differing views on the effectiveness of PRP (Williams 2002) and whether or not it contributes to
improved performance. It has been argued that PRP is a process of control, rather than
contributing to real development (Hendryet al 2000).
 (Gratton 1996) There has been a change in scope of the appraisal process in recentyears, with an
increasing focus on employee development, as more and more businesses focus on how targets
are achieved rather than just the achievement itself. This has led to a combination of both
objectives (outputs) and competencies (inputs, Taylor, 2005) and the recognition that personal
development planning (PDPs) are a fundamental part of a PMS. By offering employees the
opportunity of enhancing their skills through training, levels of self-confidence will improve
and performance will be enhanced (White 1999).
 Willcoxson, (2000) High performance is considered to be achievable in different ways, Two of
which are the humanistic and rational process perspectives. According to proponents of the
humanistic perspective, high performance is attributed to investment in the ‘softer’ people
aspects of organizational life. Through valuing, trusting, developing and empowering
employees, encouraging cooperative modes of operating and stakeholder engagement,
organizations can achieve high performance. Emphasis is also placed on organizational culture
as a key element of success or failure (Willcoxson, 2000).
 In essence the productivity of an organization is jointly determined by the efficiency with which
the organization utilizes several available factors of production which invariably are scarce
relative to the demand for them. As it were therefore, one can conceive of an equilibrium
condition in productivity terms within given and stated constraints in an organization. Like the
price scenario, several factors operate to make it difficult to optimize the use of human and
other resources in the organization such that the equilibrium condition is not achieved easily.
Ouchi (1981) clearly pointed this out when he addressed the issue of what he labelled “the
organizational dilemma” meaning that the organization’s search for rationality (technological
determinism) and the human beings search for happiness (as in the Doctrine of Hedonism
 Robert and Angelo, (2001) The success or failure of public sector business organizations hinges
on the ability to attract, develop, retain, empower and reward a diverse array of appropriately
skilled people and is the key to improving organizational performance The explanation
therefore is that human resource managers in the public sector business concerns should embark
on periodic performance management reviews of their employees in order to re-position their
business organizations though owned by government for better performance and improved
competitiveness.
 Sung & Ashton,(2005) It is the business strategy that gives the high performance working
practices their dynamism and provides the framework against which performance can be
evaluated and improved. Thus, the concern is not with the specific type or number of practices
employed, but the way they are linked to organizational performance.
 Results from the Watson Wyatt Worldwide (2004) study suggest that PM systems should
recognize high performers and confront poor performers as soon as possible, eliminate paper
forms, and utilize a user-friendly automation. Researchers from Watson Wyatt Worldwide also

26
 assert that if PM systems are designed and implemented properly, they can lead to positive
impact on individual performance as well as better financial results for the organization (i.e.,
improvement in shareholder value).
 A common weakness in the implementation of performance management systems noted by de
Waal (2004) is the focus only on the “structural side”, that is, “the structure that needs to be in
place to be able to use performance management such as critical success factors & key
performance indicators, possibly supported by a balance scorecard”. De Waal (2004) argues
that successful implementation also requires attention to the “behavioral side” that is, the
necessary performance-driven behavior required from organizational members to achieve the
desired objectives. According to de Waal (2004), appropriate behaviors, including attitudes and
beliefs, depend on a range of factors including management style, the perceived relevance of
performance indicators, the degree to which employees feel they can influence change, and the
quality of communication within the organization.
 A study conducted by McDonald and Shield of Hewitt Associates found that companies that used
performance management programs had greater profits, better cash flow, stronger stock market
performance and greater stock value than companies that did not. Not only performance
management improved financial performance, but it also improved productivity; companies
with such programs had higher sales per employees (Rheem, 1995). Nonetheless, performance
management has been mistaken as performance evaluation. As a matter of fact, both
performance management and performance evaluation are related but they are not exactly the
same concept. Performance management is a systematic process for improving organizational
performance by developing the performance of individuals and teams; it is a mean of getting
better results from the organization, teams, and individuals by understanding and managing
performance within an agreed framework of planned goals, standards, and competence
requirement (Armstrong, 2006). While performance evaluation is a process of assess and rate
past performance of individuals or groups (Oct 2004). Performance evaluation is just a part of
performance management.
 Sharmistha Bhattacharjee and Santoshi Sengupta (2011) studied that employees arethe most
valuable and dynamic assets of an organization. For achieving the strategic objective of
sustained & speedy growth, managing human resource has been featured as a vital requirement
in all organizations. It is a challenge to monitor the entire cycle of defining the competence
requirement of the business, accessing existing competence in the organization and bridging the
gap between the two. HR practices are crucial for any organization. Every phase from
recruitment to exit interview is under the HR department. It is a challenge to monitor the entire
cycle of defining the competence requirement of the business, accessing existing competence in
the organization and bridging the gap between the two. In a manufacturing industry, with every
technical advancement business opportunities can show up. These opportunities can be
converted into business success only with performance alignment and competence management.
 The research paper of Mohammad Tanvi Newaz (2012) provides an analysis and evaluation of
the role of performance management system in shaping psychological contract at Sainsbury’s
UK by a case study approach. Sainsbury’s has adopted the performance management system to
utilize the potential of their employees but result of data analysis indicates that line managers
have failed to achieve the objective of the performance management system. This research

27
 analysis reveals how the line managers of Sainsbury’s focus on short term goal i.e. financial
success instead of long term goal i.e. employee development. However, the performance
management system of Sainsbury’s comprises all the necessary components to play a significant
role in developing employees as well as facilitating the formation of a positive psychological
contract. But partial and inattentive implementation of the system makes the situation
unfavourable for the psychological contract to develop at Sainsbury’s UK.
 The paper of Akua Asantewaa Aforo and Kodjo Asafo-Adjei Antwi (2012) shows that
academic libraries have a performance appraisal system comprising setting of goals, feedback,
participation and incentives for performance. This study aimed at evaluating the performance
appraisal system in the KNUST and GIMPA libraries in Ghana and give recommendations on
improving the system. Questionnaires were randomly administered to 46 staff members of these
libraries.
 The article of Javed Iqbal , Samina Naz, Mahnaz Aslam, Saba Arshad (2012), offers a survey
of selected literature on performance management. Purpose is to identify key themes that
govern the topic in the contemporary turbulent economic and business environment where
employees are more uncertain that anything else because every day they face downsizing,
volunteer retirement and “golden hand shakes’’ to get rid of them. Under these circumstances it
is worthwhile to look into the ways by which they can be motivated to work under hard
conditions. It is found that performance management processes, evaluation, its impact and
factors are key themes. Researchers apply popular research approaches for data collection
analysis and communication.
 The aim of this study of Akinyele S. T. (2010) was to evaluate the effectiveness of performance
appraisal system at private universities in Nigeria. The focus of the study was on the
administrative staff of Crawford University. The study evaluated the purpose of performance
appraisal in private universities and identifies relevant factors for achieving an effective
performance appraisal. A cross- sectional survey was selected for this study because it was easy
to undertake compared to longitudinal survey and the results from the same can be inferred to
the larger population. The study population was for all the administrative staff of Crawford
University. The whole populations of staff were selected as respondents. A structured
questionnaire was used to collect the data for analysis. The effectiveness of performance
appraisal systems in private universities are only based on training the members of staff
involved in the rating/ appraising process and are multi- rating systems. Conclusively because
the performance appraisal systems used in private universities are not effective and that they
exist just as a matter of formalities, the private universities cannot measure members of staff
performance, hence making it difficult to achieve the intended human resource management
objective.

28
CHAPTER-3

29
 RESEARCH METHODOLOGY
3.1 TITLE OF THE RESEARCH STUDY:

“An Analytical Study of Performance Management System as a tool for Effective

performance: A study of selected employees in Westside”.

3.2 BASIC TERMS OF PRESENT RESEARCH STUDY:

Performance: Performance means both behaviours and results. Behaviours emanate from
the performer and transform performance from abstraction to action. Not just the
instruments for results, behaviours are also outcomes in their own right- the product of metal
and physical effort applied to tasks- and can be judged apart from results (Brumbrach,1988).

Management: Management is the art of getting things done through and with people in
formally organized group (According to Harold Koontz).

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

interdependent elements (components, entities, factors, members, parts etc.). These
elements continually influence one another (directly or indirectly) to maintain their
activity and the existence of the system, in order to achieve the goal of the system.

3.3 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 to 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 an overall improvement for employees effective
performance. The research study would make an attempt to find the impact of performance
management system on effective employee’s performance.
3.4 SCOPE & COVERAGE OF RESEARCH STUDY:
The research was conducted in Westside. The research study was focus on performance
management system in Westside. It also measure & evaluate the effective performance on
the basis of employee’s overall awareness, expectations & satisfaction or dissatisfaction as
an outcome of offering various kinds of incentives & employee’s morale as offered by the
performance management system of Westside.

3.5 OBJECTIVES OF RESEARCH STUDY:

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

 To empirically assess performance management as a tool for improving

performance.
 To study the process and methods of existing performance management systems.
 To identify the effects of performance review techniques on employee’s
performance.
 To study of performance review techniques; employee’s performance; performance
incentives and employee’s morale.

3.6 RESEARCH DESIGN:

30
 The research design of this study considering its objectives, scope & coverage was
exploratory as well as descriptive in nature.

3.6 SOURCES OF INFORMATION:

3.6.1 PRIMARY DATA;

The primary data has been obtained from the selected employees & senior executive at
various departments of Westside through circulation of the structured non-disguised
questionnaire.

3.6.2 SECONDARY DATA:

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

3.7 SAMPLING DECISIONS:

3.7.1 SAMPLE SIZE:

Appropriate number of sample size (i.e. 20) was put to used for the purpose of collecting
primary data from the selected employees of different departments of the Westside.

3.7.2 SAMPLING METHOD:

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

3.7.3 SAMPLING FRAME:

The representative sampling units in appropriate & justified size has been conveniently
drawn from amongst different employees across various heterogeneous socio- economic age
groups, occupations, educational qualifications, gender who have availed incentives &
employee’s morale as offered by the performance management system of the Westside.

3.7.4 RESEARCH INSTRUMENT:

A structured non-disguised questionnaire has been prepared 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 Westside.

3.7.5 SAMPLING MEDIA:

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

3.8 DATA COLLECTION, 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 considering the 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.

31
 3.9 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 performance
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 Westside. This
research study also assists to Westside 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.

3.10 LIMITATIONS OF THE RESEARCH STUDY :

 The researcher has been use 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 responses as in conducting the research study has
limited factor.
 In lieu of the variation in the cooperation and involvement of selected employees at
different departments of Westside, there may be inaccuracy of the responses given by them.

32
CHAPTER– 4

33
 DATA ANALYSIS & INTERPRETATION
Section A: General Profile of Respondents:
(1) Gender

S.No Gender Frequency Percentage (%)

1. Male 08 40%
2. Female 12 60%
Total 20 100%

Gender

Male
Female

Interpretation: From the above table, 40% of employees lies under

the male category and 60% employees lies under the Female category.
Majority of the employees lies under the Female category.

34
(2) Age:
S.No Age Frequency Percentage (%)
1. 20-25 12 60%
2. 26-35 07 35%
3. 36-50 01 5%
4. 50 above 00 0%
Total 20 100%

Age

20-25
26-35
36-50
50 above

Interpretation: The chart depicts that:

60% respondents tend to age between 26-

35,

35% respondents tend to age between 36-50,

5% respondents tend to age between 20-25

0 % respondents tend to age between 50
above.
Majority of the respondents tend to age between 20-25.

35
(3) Qualification:

S.No Education Frequency Percentage (%)

Qualification
1. Under Graduate 15 75%
2. Post Graduate 04 20%
3. Diploma 01 5%
4. Others 00 0%
Total Total 100%

Education Qualification

Under Graduate
Post Graduate
Diploma
Others

Interpretation: The chart depicts that :

75% respondents are Under Graduate,

20% respondents are others,

5% respondents are Post Graduate,
0% respondents are Diploma and;
Majority respondents are Under Graduate.

36
(4) Job Experience:

S. No. Job Experience Frequency Percentage (%)

1. Less than 1 year 17 85%
2. 2-10 year 03 15%
3. More than 10 year 00 0%
Total 20 100%

Job Experience

Less than 1 year

2-10 year
More than 10 year

Interpretation: The chart depicts that:

15% of the respondents have work experience of 2-10 years,

0% of the respondents have work experience of more than 10 years, and

85% of the respondents have work experience of less than one year.

Majority of the employees in the organization have a work experience of less than 1
year.

37
Section B: Nature of Current Performance Management System:
(1) Do you think Performance management system is clearly defined?

S. No. Response Frequency Percentage (%)

1. Yes 18 90%
2. No 02 10%
Total 20 100%

Response

Yes
No

Interpretation: From the above table, it is clear that 90% respondents are in favour that
Performance management system is clearly defined whereas 10% respondents are not in
favour.

38
(2) Do you think all the factors facilitating and hindering performance are taken into
consideration while appraising the performance?

S. No. Response Frequency Percentage (%)

1. Yes 16 80%
2. No 04 20%
Total 20 100%

Response

Yes
No

Interpretation: From the above table, it is clear that 80% respondents are in favour that
all the factors facilitating and hindering performance are taken into considering while
appraising the Performance management system whereas 10% respondents are not in
favour.

39
(3) Do you think Performance management system helps to set and achieve meaningful goals?

S. No. Response Frequency Percentage

1. Yes 19 95%
2. No 1 5%
Total 20 100%

Sales

Yes
No

Interpretation: From the above table, it is clear that 95% of the respondents are in
favour that Performance management system helps to set and achieve meaningful goals
whereas 5% of the respondents are not in favour.

40
(4) Are you satisfied with the weightage given to each activity that you are supposed to
perform in the specified period by Performance management system?

S. No. Response Frequency Percentage (%)

1. Yes 16 80%
2. No 4 20%
Total 100 100%

Response

Yes
No

Interpretation: From the above table, it is clear that 80% of the respondents are
satisfied with the weightage given to each activity that they are supposed to perform in
the specified period by Performance management system while 20% of the respondents
are not satisfied.

41
(5) Does Performance of employees improves due to current Performance management
system?

S. No. Response Frequency Percentage (%)

1. Yes 17 85%

2. No 03 15%

Total 100 100%

Response

Yes
No

Interpretation: From the above table, it is clear that 85% of the respondents are in favour
that performance of employees improved due to current Performance management system
while 15% of the respondents are not in favour.

42
43
(6) Does the promotion are strictly based on Performance management system?

S. No. Response Frequency Percentage (%)

1. Yes 15 75%
2. No 05 25%
20 100%

Response

Yes
No

Interpretation: From the above table, it is clear that 75% of the respondents are in favour that
promotion are strictly based on Performance management system while 25% of the respondents
are not in favour.

44
 S. No. Response Frequency Percentage (%)
1. Yes 16 80%
2. No 04 20%
Total 20 100%

(7) Do you think Performance management system implemented in your organization creates
a participative environment?

Response

Yes
No

Interpretation: From the above table, it is clear that 80% of the respondents are in favour
that creates a particpative environment while 15% of the respondents are not in favour.

45
(8) Do you think that your inter-personal skills are developed due to Performance
management system?

S. No. Response Frequency Percentage (%)

1. Yes 13 65%
2. No 07 35%
20 100%

Response

Yes
No

Interpretation: From the above table, it is clear that 65% of the respondents are in favour
that their inter-personal skills are developed due to Performance management system
while 35% of the respondents are not in favour.

46
(9) Do you feel free to express to your appraiser, your disagreement regarding the appraisal
decision?

S. No. Response Frequency Percentage (%)

1. Yes 19 95%
2. No 01 5%
20 100%

Response

Yes
No

Interpretation: From the above table, it is clear that 95% of the respondents feel free to
express to their appraiser about disagreement regarding the appraisal decision while 5%
of the respondents are not in favour.

47
(10) Are you satisfied with the existing Performance management system?

S. No. Response Frequency Percentage (%)

1. Yes 10 95%
2. No 01 5%
20 100%

Response

Yes
No

Interpretation: From the above table, it is clear that 95% of the respondents are satisfied
with the existing Performance management system while 5% of the respondents are not in
favour.

48
CHAPTER - 5

49
 FINDINGS, SUGGESTIONS & CONCLUSIONS

FINDINGS:

 All respondents have aware about the current performance management system.
 Majority of respondents told they are satisfied with current performance
management system works well and no need to change.
 Majority of respondents are told the checklist techniques used in organization for
assessing performance.
 Most of the respondents are believe in current performance management system
improving their performance.
 Most of respondents told that increase productivity is major elements of business
strategy at present.
Most of the respondents told that performance management help to improving their
performance.
 Most of the respondents are satisfied with the weightage given to each activity that they
are supposed to perform in the specified period by Performance management system.
 Majority of respondents think that performance management system creates a
participative environment.

SUGGESTIONS:

 The PMS should also be followed up with the session of counseling which is often
neglected in many organizations which involve helping and employee to identify his/her
growth and development.
 Communication is very essential for any system to function efficiently. Therefore the
appraiser should look into this matter and see to it that the goals and plans are
communicated effectively.
 The appraise can also motivate the employee who felt that they had no growth in the
organization and serve the purpose of employee development.

CONCLUSION:

Performance management system is the process of reviewing employee performance vis-

à-vis the set expectations in a realistic manner, documenting the review and delivering the
review verbally in a face to face meeting, to upgrade performance standard year after year
through honest and constructive feedback. In this process, management expect to
reinforce the employees strength and identify the improvement area so that one can work
on them and also set stretch goals for coming years.

Effective performance management require a good deals of face to face interaction

between supervisor and employees. By knowing the subordinates, a supervisor on ster
than onto a path of greater productivity or optimized output, it has one of the most
significant and indispensable tool for an organization as it help in getting to know the

50
people who work for them, provide information which helps in taking decision for the
development of an individual and the organization.

51
CHAPTER - 6

52
 BIBLIOGRAPHY
 Armstrong, M. (2004); Handbook of Human Resources Management Practice (9th Edition)
London: Kogan Page.
 Armstrong M. And Baron A. (1998); Performance Management: The New realities. London:
IPD.
 Akata, G.O. (2003); Strategic Performance Management: Your key to Business Success; Ibadan
Spectrum Books Limited.
 Beer, M. And Ruh, R. A. (1976); Employee Growth Through Performance Management,
Harvard Business review, 13:32-37.
 Fajana, S. (2002); Human Resources Management : An Introduction. Lagos Laboffin and
Company.
 Brumbach, G B (1988) Some ideas, issues and predictions about performance management,
Public Personnel Management, Winter, pp 387–402.
 Mohrman, AM and Mohrman, S A(1995) Performance management is ‘running the business’,
Compensation and Benefits Review, July–August, pp 69–75. Page | 114
 Risher, H (2003) Refocusing performance

WEBLIOGRAPHY

 http://www.humanresources

 https://www.hrhelpboard.com/performance-management/performance-management-system.htm

 https://en.wikipedia.org/wiki/Trent_(Westside)

 http://www.iaeme.com/MasterAdmin/Journal_uploads/IJMET/VOLUME_9_ISSUE_1/IJMET_0
9_01_055.pdf

 https://www.google.com/search?
q=GRD+IMT+logo&tbm=isch&source=univ&sa=X&ved=2ahUKEwih3O75-
_LhAhUD2o8KHf4JB-IQ7Al6BAgJEA0&biw=1034&bih=620#imgrc=SpUbcT4-6h2ExM:

53
CHAPTER-7

54
 ANNEXURE

Name:
E-mail:
Qualification:

(A) General profile of respondents.

(1) Gender
(a) Male (b) Female

(2) Age
(a) 20-25
(b) 26-35
(c) 36-50
(d) 50 above

(3) Job experience in Westside.

(a) Less than 1 year
(b) 2-10 year
(c) More than 10 year

(B) Nature of current Performance Management System.

(1) System Do you think Performance Management is clearly defined?

(a) Yes (b) No

(2) Do you think all the factors facilitating and hindering performance are taken into
considering while appraising the performance?
(a) Yes (b) No

55
(3) Do you think Performance management system helps to set and achieve meaningful goals?

(a) Yes (b) No

(4) Are you satisfied with the weightage given to each activity that you are supposed to perform
in the specified period by Performance management system?

(a) Yes (b) No

(5) Does Performance of employees improves due to current Performance management system?

(a) Yes (b) No

(6) Does the promotion are strictly based on Performance management system?

(a) Yes (b) No

(7) Do you think Performance management system implemented in your organization creates a
participative environment?
(a) Yes (b) No

(8) Do you think that your inter-personal skills are developed due to Performance management
system?

(a) Yes (b) No

(9) Do you feel free to express to your appraiser, your disagreement regarding the appraisal
decision?
(a) Yes (b) No

(10) Are you satisfied with the existing Performance management system?

(a) Yes (b) No

56
THANK YOU

57