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SUMMER TRAINING PROJECT REPORT

ON

PERFORMANCE APPRAISAL SYSTEM


(With Special Reference To Shriram Piston &Ring Limited)
SUBMITTED TOWARDS PARTIAL FULFILLMENT OF BACHELOR OF BUSINESS ADMINISTRATION (Affiliated to Ch. Charan Singh University, Meerut)

Academic Session [2007-2010]


SUBMITTED TO: Ms. Shalu Singh Faculty SUBMITTED BY:

Rakhi Roll No. 9221568

BBA VI Sem.

DR. K.N. MODI INSTITUTE OF ENGG. & TECHNOLOGY, MODINAGAR

DECLARATION

I, Rakhi, student of BBA at Dr. KNMIET, Modinagar hereby declare that the human resource research work entitled Performance Appraisal System is compiled and submitted under the guidance of Ms. Shalu Singh is my original work whatever information furnished in this report is true to the best of my knowledge.

(RAKHI) BBA VI SEM.

ACKNOWLEDGEMENT

The satisfaction that accompanies the successful completion of my project would be incomplete without the mention of the people who made it possible with their valuable advice and guidance. I am extremely grateful to the guiding spirit behind my research report. I am also grateful to all faculty members, specially Mr. R.S. Yadav (HOD) & Ms. Shalu

Singh (Lecturer of BBA Deptt.) who solved my general and particular problems and solved
my queries that emerged from my day to day research and support to my report at every stage till it completion. Finally, I am thankful to all the respondents who patiently listened to my questions and gave answers and valuable information.

(RAKHI )

EXCUTIVE SUMMARY
This is an attempt to present a progressive detailed discussion on the PERFORMANCE MANAGEMENT SYSTEM OF SHRIRAM PISTON &RING LTD Performance management system is a method through which total evaluation of an employees performance throughout the year undertaken by his/her superior wherefrom the junior get to know his/her own standing in the organization. This system is a very important aspect, which gives the true picture of the companys driving in a particular year. I have, over here, tried to make almost a research work on the companys PMS and fought out my utmost level to bring the best in my research. The study comprises of the first textual connotation of the performance appraisal system, in general, then continued with a detailed study on PMS system of SHRIRAM PISTON &RING LTD. But to go into further details of the topic, I had built a questionnaire for employees working in the organization based on the PMS forms. In these questionnaires, I have tried to understand the general psyche of the people regarding the PMS system operating in the organization. After observing the results, I interpreted into a conclusion, which further directed me to find out the loopholes and backlogs.

INTRODUCTION

Performance management system is a method through which total evaluation of an employees performance throughout the year undertaken by his/her superior wherefrom the junior get to know his/her own standing in the organization. This system is a very important aspect, which gives the true picture of the companys driving in a particular year. I have, over here, tried to make almost a research work on the companys PMS and fought out my utmost level to bring the best in my research.

The study comprises of the first textual connotation of the performance appraisal system, in general, then continued with a detailed study on PMS system of SHRIRAM PISTON &RING LTD. But to go into further details of the topic, I had built a questionnaire for employees working in the organization based on the PMS forms. In these questionnaires, I have tried to understand the general psyche of the people regarding the PMS system operating in the organization. After observing the results, I interpreted into a conclusion, which further directed me to find out the loopholes and backlogs.

CONTENTS
Introduction 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Objective of the Study Company Profile HR at SPRL Introduction to PMS Overview of PMS Performance Appraisal Methods of Performance Appraisal Pitfalls Type of Errors Research Methodology Data Analysis Recommendation Conclusion Bibliography Questionnaire 1 2-22 23 24-30 31-38 39-45 46-58 59-60 61 62-66 67-90 91 92 93 94

OBJECTIVE OF THE STUDY The Objectives of taking this project are To Compare the past system for performance appraisal with the new performance management system in order to identify the drawback that are overcome by the new system of performance that is PMS (performance management system ) To conduct the study on the stepwise method involved in appraising the performance in the PMS. To find out the satisfaction level of the employees and areas in which they are not comfortable with the PMS and does not find it to be effective. To find out to what extent the employees find is method effective in appraising their performance. Is there any improve in there performance after the appraisal. To Study The Effectiveness Of The New Performance Management System (PMS)

Shriram Pistons and Rings Ltd.(SPRL)


Shri ram pistons and rings ltd is one of the largest and most sophisticated manufacturers of precision automobile components i.e. pistons rings, pistons pins, valves in India. The company's products are marketed under the brand names and , names that are synonymous with quality and reliability. From a modest beginning in 1972,as a factory located at Meerut road in Ghaziabad (25 km from Delhi), the organization has evolved in to a centre of excellence, employing over 4780 employees and achieving an annual turnover of approximately Rs.675 cr.as for 2007-08 Clearly-defined corporate beliefs and values have strengthened the foundations of Shriram Pistons and Rings ltd. (SPR) and given a strong thrust to its growth.Shriram Pistons and Rings Ltd. (SPR)s ideology comprise a Core Purpose and Core Values. Production capacity of plant Piston Pin Rings Engine valves : : : : 11.1 million per year 9 million per year 54 million per year 17 million per year

Focus The core purpose of an organization is its reason for being i.e. the purpose for which the purpose for which the company exists. At Shriram Pistons and Rings Ltd. (SPR), the Core Purpose is to: Maximize Value to all stakeholders Foster individual initiative and creativity Be sensitive and responsive to change Company exists The core values of an organization are a set of timeless guiding principles that require no external justification but are internally important, which comprises of: Honesty, Integrity & Ethical Working Respect for individuals Focus on excellence through teamwork

Achievements:

SPR received the ISO-9001 certificate from RWTUV, Germany in 1994.Technology was supplemented with In-house efforts and by implementing world-class practices. The company received QS-9000 certificate from TUV, Germany in the year 1999 SPR is the first and only pistons, rings & engine valves manufacturer in India to win the TPM Excellence award from JIPM, Japan. Honda Motorcycle and Scooter India Limited felicitated Shriram Pistons and Rings Ltd. (SPR) with Grand Award for QCDDM 2003-2004. SPRL has received the Best Vendor Awards from Maruti Suzuki for 4 consecutive times, Best Supplier Performance Awards from Tata Cummins Ltd for 3 consecutive years. And has self certified status with most of the OEMs For 4th year in a row, Shriram Pistons and Rings Ltd. (SPR) were awarded with Trophy of Excellence from Maruti Udyog Limited for Outstanding Overall Performance during 2002-2003 Shriram Pistons and Rings Ltd. Won the ACMA certificate of Merit for Excellence in Exports in 2000-2001 and (Automotive Component Manufacturers Association of India) Quality Award in 1998-1999. SPR received the TS-16949 Certificate in the year 2003. The Company received OHSAS-18001 certificate in the year 2003. Best foundry awards from Institute of Indian Foundrymen in the year 2003. Green rating award by CII, U.P.Pollution Board & World Bank in 2004. The Company received TPM Excellence award in the year 2004. The Company received TPM Special award in March-2008.

Code of Conduct:
The Code of Conduct for Shriram Pistons and Rings Ltd.is to ensure ethical conduct in the business. All Board members and Senior Management personnel implement the code of conduct in their official day to day activities. Ethical code All Board members and Senior Management personnel of the Company deal on behalf of the Company with professionalism, honesty and integrity, as well as high moral and ethical standards. Financial recording and report The company prepares and maintains its accounts fairly and accurately in accordance with the accounting and financial reporting standards which represent the generally accepted guidelines, principles, standards, laws and regulations of India. Internal accounting and audit procedures fairly and accurately reflect all of the companys business transactions and disposition of assets. All required information shall be accessible to Company auditors and other authorized parties and government agencies. Quality of product and services The company is committed to supply goods and services of the highest quality standards, backed by efficient after-sales service consistent with the requirement of the customers to ensure their total satisfaction. SPR has been investing 30% of its retained earnings in quality up gradation and modernization every year. Quality objectives Organization, which is sensitive and interactive to the need of customer. Continuous upgrading of quality and process to meet changing needs of customer. Optimization of return of investment bya) Continuous improvement b) Technology development c) Organizational and personnel development d) Cost reduction efforts e) Effective use of all resources 5

f) Harmonious and safe working conditions Pistons Special Features

High Silicon Alloy Piston Slipper Design Low Top Land Height (5mm) Double Ovality Machined Recess Pin Bore Bombing Special Facilities

Quality Automat Centralized Coolant Chilling On Line SPG Ultrasonic Cleaning Millipore Testing Wiser Cam Manufacturing M/C Surface Treatment

Tin coating Graphitizing Bond rising Hard Anodizing (Also in Ring Grooves) Plastic Skirt Coating Diameter Range 40 mm to 120 mm Piston Material High/ Normal Silicon Alloys Piston Rings

Ring Material

Cast Iron SG Iron Steel Top Ring (Up to 5.7 Sq. cm for Cr. Plated and 7.2 Sq. cm for gas nitride ring) DVM Oil Ring (Steel) (3, 4, 5 mm Width) Measuring Instrument OD Profile Measurement Barrel Height and Taper Angle Sharp Edge Contour graph Surface Roughness Tester Micro Hardness Tester Keystone Height Measurement Spectrometer Special Facilities Dimaco Double Cam Turning M/C Discuss Grinder Kotaoka Profile Turning M/C Reineker Keystone Grinding M/C Future Technologies (For Rings) Molly Coating Plasma Coating New Material (RIK 25) for very high hardness Surface Treatment Chrome Plating GN Treatment (For Steel and DVM Rings) Parkerizing (Zinc and Manganese) Diameter Range 40 mm to 120 mm Special Features

Bottom Sharp Edge (Up to 0.15 mm) Differential Keystone Angle Asymmetrically Barrel Ground Double Cam Turned 7

Engine Valves

Types Single Metal Bi-Metallic Seat Hard Faced Tip Hard Faced Chip Hard Faced Chip (Wafer) Welded Tip Hardened Seat Hardened

Special Facilities Upset Forging Plasma Powder Welding Friction Welding For Bimetallic Valves Heat Treatment Fluidized bed Heat Treatment Process CNC line and special purpose turning lathes Groove turning and Grinding Both Possible Tip Seat Hardening by Induction Welding Chip Welding by Fully Automated Projection Welder Circular Chrome plating Tuff riding

Surface Treatment Chrome Flashed Thick Chrome Plated Tufftrided 8

Largest Valve Head Dia - 70.0 mm Stem Dia 12.0 mm Smallest Valve Head Dia 19.0 mm Stem Dia 5.0 mm

Collaborators:
Building on the experience, expertise and skills of No.1 international companies, Shriram Pistons and Rings Ltd. (SPR) products are today of the best possible quality. The company has technical collaboration with: S.No. Products Partners Kolbenschmidt ( Germany)

1.

Pistons (Diesel & Gasoline)

2.

Piston Rings (Cast Iron, Steel and Moly)

Riken Corporatio ( Japan)

3.

Engine Valves

Fuji Oozx ( Japan )

4.

Pistons for Honda range

Honda Foundry ( Japan )

The company is also an exclusive supplier of the three Honda Joint Ventures such as: M/S. Hero Honda, Kinetic Honda and Shriram Honda

After Market:
Reaching out to the end customer is fast becoming a foundation of the business and the real test of a products and brands acceptance lies in repeat demand from the actual consumers and end customers. Shriram Pistons and Rings Ltd. (SPR) has successfully met this challenge of creating brand awareness and brand loyalty through a clearly defined and well-structured marketing and sales set up. A strong network of sales offices, distributors and dealers across the length and breadth of the country form a powerful infrastructure that is geared to sell the products as replacement parts to automotive workshops, repair shops and service stations. The Shriram Pistons and Rings ltd. (SPR) setup comprises of: Head Office (HO) New Delhi Regional Sales Offices (RSO) New Delhi, Bangalore, Kolkatta , Jalandar, Pune Company Warehouses / Go downs 15 Main Distributors 23 Town Distributors 500 (approx) Co. Warehouse 16 Town District 500 Authorized Dealers 5000 (approx) Sales force Based at all RSO towns, State capitals, Major towns (covering each and every territory all over India/Nepal) catering to after Market, State Transport Undertakings (STUs), OEMs in: 10

Heavy Commercial Vehicle (HCV) Light/Multi Utility Vehicle (LCV/MUV) Tractors (TR) Cars Motor Cycles, Scooters, 3-Wheelers Generators, Compressors Stationary Diesel/Agricultural Engines Marine Applications

OE Customers Shriram Pistons and Rings Ltd. (SPR) products form an integral part of the portfolio of many leading OEMs in India as well as abroad. Multinational giants like Cummins, Honda, Suzuki and Yamaha with their Indian CollaboratorsTATA, SHRIRAM, HERO and MARUTI, prefer USHA/SPR products for their vehicles and gensets. As do Ashok Leyland, Mahindra, HMT, Eicher, Kirloskar, Bajaj, LML, Kinetic, Sundaram Clayton and International Tractors, among others.

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Honda Motors

Honda Power Products

Hero Honda

Kinetic

Yamaha

Tata Motors

Mahindra

Maruti

Tata

Ford

Ashok Leyland

Eicher

Bajaj Auto

General Motors

HMT Tractors

Kirloskar Oil Engines

New Holland Tractors

Swaraj Tractors

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Exports:
(SPR)s products are exported to over 40 countries across the world. Once again the Government of India has awarded Shriram Pistons and Rings Ltd. (SPR) with Export House Status, March 2004. Shriram Pistons and Rings Ltd. (SPR) have won an ACMA (Automotive Component Manufactures Association of India) Award for 2000-2001 for Excellence in exports

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Exports have raised up to 125 cr. in the year 2007-2008. Up to 10% of production is exported to sophisticated markets such as Europe, U.K, Egypt, U.S.A, and Latin America. R&D

(SPR)s Research and Development activity provides a technological leadership to the development of products and the spirit of innovation. The Research and Development has been specifically set up to new technologies that in turn create new products and new business opportunities. Researchers at Shriram Pistons and Rings Ltd. (SPR) have their ear to the ground, their eye on the competition and their fingers on the pulse of the market. They understand the continuous challenges presented by a dynamic marketplace. Shriram Pistons and Rings Ltd. (SPR) are developing a tradition of always addressing the needs of customers. The products are constantly benchmarked against very high international standards and are closely allied to customers demand. Health safety and environment The Company provides a safe and healthy working environment and complies, in the conduct of its business affairs, with all regulations regarding the preservation of the environment of the country.

Equal-opportunities employer
The Company, all Board members and Senior Management personnel provide equal opportunities to all its employees and all qualified applications for employment without regard to their race, caste, religion, color, ancestry, marital status, sex, age, nationality and disability. Employees of the Company are treated with dignity and in accordance with our maintaining a work environment free of sexual harassment, whether physical, verbal or psychological. 14

Facilities

The Company today employs 4760 people and has a large ultramodern plant that virtually drives the technological developments in the field of pistons, valves, rings and pins. SPRs annual turnover last year stood at Rs.675 cr in 2007-2008 In its manufacturing system and processes, Shriram Pistons and Rings Ltd. (SPR) combine the best practices along with inputs from its collaborators Highly advanced manufacturing techniques. Keenly aware of the fact those investments in infrastructure can greatly enhance employee productivity, Shriram Pistons and Rings Ltd. (SPR) has made sustained investments in infrastructure over the years. A world class manufacturing facility has been created at Ghaziabad with an ultra-modern factory setup in large beautifully landscaped lawns and gardens with area covered about 27 acres. Key focus on neatness and cleanliness has resulted in a beautiful infrastructure. At Shriram Pistons and Rings Ltd. (SPR), there is strong emphasis on optimal working conditions, optimal material flow, integrated manufacturing processes and strategic quality control measures. Shriram Pistons and Rings Ltd. (SPR) functions in close co-operation with the local community and its assistance. It is also a large employer of the local populace, thus fulfilling an important social role.

Environment Helping make the world a better place A good Company delivers excellent products and services; a great one does all that, and strives to make the world better place Bill Ford, Chairman, Ford Motor Company To help make the world a better place , we at Shriram Pistons and Rings Ltd. (SPR) dedicate ourselves towards preserving nature and protecting the environment & contributing towards gifting our children the legacy of a healthier, happier world.

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In recognition of our unwavering commitment towards sustainable development, and a greener future for all, Shriram Pistons and Rings Ltd. (SPR) are the countrys first manufacturers of pistons and rings to be awarded: QS-9000 Certification (RWTUV, Germany) ISO-14001 Certification (DNV, Netherlands) The Environment Policy of SPR Continuous improvement in environmental performance through prevention, monitoring and control of pollution and improving environmental benchmarks for sustainable growth of company operations. The Environment Objectives of SPR Conservation of input resources particularly energy, coolant, oils and water Adoption of good operating practices with the participation of all employees through use of environmental friendly technologies/ processes. Control and reduction of noise pollution. Reduction, reuse and re-cycling of solid and liquid wastes. Environmentally safe disposal of unavoidable wastes. Increase environmental awareness among employees, suppliers, contractors and other business associates. Comply with all applicable environmental laws and regulations. Be a good corporate citizen and exercise due concern for health and safety of employees and members of the society. The Environment Initiatives at SPR Drive towards conservation and optimization of resources. Planting trees and actively supporting green belts.

HR Policies:

Merit Based Recruitment Recruitment is based purely on the merit of the candidates. No consideration is given to factors like personal recommendation, social relations etc. The standard for recruitment is high and is kept free from any discrimination.

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There are five entry levels though which we give candidates an opportunity to be a part of our organization: Management Trainee Commercial Executive Trainee Graduate Engineer Trainee Sales Officer Trainee Diploma Engineer Trainee Focus at intake is on candidates with strong technical depth, good extra-curricular interest, strong initiative and stability i.e. who would like to make a career in SPR. Constant Skill-building Company is driven by strong systems and procedure. However, growth in the Company occurs to those who can strike a balance between on going operation and continuous improvement. Employees continuously acquire new skills- technical as well as behavioral. Opportunity is provided to all employees to show initiative and apply their new skills to undertake improvement/ breakthrough projects. Grooming of employees is aimed at enabling employees to transit from can do stage to can get work done stage to can teach others stage of excellence and expertise. All job responsibilities are centered on the needs of the customers. The needs may be present or future, stated or anticipated. Standard of performance and accountability are very high. Every employee has direct Line of Sight with the companys goal and target. We believe that If it is not good for the country, it is not good for the company.

QUALITY OBJECTIVES

1. Organization, which is sensitive and interactive to the needs of customer. 2. Continuous upgrading of quality and process Customer. to meet changing needs of

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3. Optimization of return on investment by Continuous improvement Technology Development Organizational and Personnel development Cost Reduction efforts Effective use of all resources Harmonious and safe working conditions 4. Work to international norms of Quality and management. 5. The company has successfully practiced the best work ethics and technology along with the TPM & Kaizen approach and harmony through teamwork.

ORGANIZATION STRUCTURE
BOARD CHAIRMAN / DEPUTY CHAIRMAN MANAGING DIRECTOR / PRESIDENT 18

EXECUTIVE DIRECTOR (FACTORY)

EXECUTIVE DIRECTOR (HEAD OFFICE)

EXECUTIVE DIRECTOR (MARKETING) OEM SALES DEPTT. AFTER MARKET SALES DEPTT

CORPORATE PLANNING & MANAGEMENT SERVICES FINANCE & ACCOUNT DEPTT DEPTT ADMINISTRATION DEPTT HRD

EXPORT SALES DEPTT CUSTOMER SERVICE

7 MANUFACTURING PLANTS

4 SERVICES PLANTS

7 COMMERICAL DEPARTMENT

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REGIONAL OFFICES

(SPRL)

SPR has opened 5 regional offices to localize its operations in India.

CALCUTTA

PUNE

JALANDHAR

BANGLORE

DELHI

GODOWN NETWORK-SPRL
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NORTH Delhi, U.P.Boader, Jalandhar, Jabalpur, Gurgaon

WEST - Pune, Ahmedabad, Bhopal

EAST Calcutta, Patna

SOUTH Chennai, Hyderabad, Banglore, Cochin

HUMAN RESOURCE PROCESS IN ORGANISATIONS 21

Human Resource Recruitment

Training & Development

Socialization

Performance Appraisal

Promotions, Transfers, Demotions&Seperations.

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HUMAN RESOURCE DEPARTMENT

Unit Head
Additional General Manager-Corporate HR & IR

Deputy Manager-HR

Senior E x
Executive Assistant-HR

Assistant HR Officer

SupervisorAdministratio n

Housekeepin g General Administration

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HUMAN RESOURCE AT SPRL


HR VISION: TO ENABLE OUR PEOPLE TO BE A FAMILY OF COMMITTED WORLD CLASS PROFESSIONALS, MAKING SPRL A LEARNING ORGANIZATION. HR GOALS To develop an organization having knowledge based competitive edge. To create culture of team building, empowerment and accountability to convert knowledge into productive action with speed, creativity and flexibility. HR STATEGIES Institutionalize core values for actualizing throughout the organization. Imbibe a culture of openness, competence, commitment, system orientation, economy, productivity, knowledge management, communication and training. Undertake organizational renewal, restricting, periodic assessment to have a re look at various initiatives and their impact. Create motivational enabling climate of empowerment, participation, career growth, sensitive line manager and equip them to their own HR initiative and succession planning. Communication within and outside company.

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INTRODUCTION TO PERFORMANCE MANAGEMENT SYSTEM


Human resources are an agencys most valuable asset. They define the efficiency, effectiveness and over-all quality of service in any industry. The need to establish an effective system that accurately evaluates the performance of its workers for the purpose of determining tenure, transfers or promotions, and appropriate incentives is of absolute urgency. Policies and systems for employee performance evaluation have long been in place in companies, there is the demand for employees to produce tangible results by making a difference instead of just keeping busy, demand for increased accountability by performing the mandate of the organization, the need to correct the notion that a permanent appointment guarantees security of tenure. The PMS meaningfully and objectively links employee performance vis--vis its Organizational Vision, Mission, and Strategic Goals. The PMS employs the concept of performance contracting. In the private sector, performance contracting, also known as pay-for-performance is the practice of linking pay to performance indicators mutually agreed upon by the contractor and the contractee. In business, CEOs are paid on the basis of their performancethey get a bonus if profits increase; a decrease for ailing financial results. The user of performance contracts, at least insofar as the business sector is concerned, has demonstrated repeatedly and frequently how accountability and consequently, results are assured when pay is tied to performance.

MEANING:
Performance management is the process of assessing progress toward achieving predetermined goals. Performance management is building on that process, adding the relevant communication and action on the progress achieved against these predetermined goals. Performance Management is a management process for ensuring employees is focusing their work efforts in ways that contribute to achieving the agencys mission. It consists of three phases:

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(a) Setting expectations for employee performance, (b) Maintaining a dialogue between supervisor and employee to keep performance on track, (c) Measuring actual performance relative to performance expectations. Performance management helps organizations achieve their strategic goals. Rather than discarding the data accessibility previous systems fostered, performance management harnesses it to help ensure that an organizations data works in service to organizational goals to provide information that is actually useful in achieving them. and focus on the Operational Networking Processes between that performance levels. The main purpose of performance management is to link individual objectives and organizational objectives and bring about that individuals obey important worth for enterprise. Additionally, performance management tries to develop skills of people to achieve their capability to satisfy their ambitiousness and also increase profit of a firm. For the successful implementation of the performance management system, it requires an understanding, a desire and a discipline Understanding of ones self, motives, interests, responsibilities. A desire to discover and apply oneself Understanding of the limitations of organizations as well as opportunities provided by

organizations to discover and apply ones self. Values of self discipline, desire to improve and learning. Organizational culture and cantered people.

What is Performance Management:


Performance management describes the processes by which managers improve the performance of their employees by utilising their power to reward, develop or discipline as appropriate. A performance management system documents these processes as company policy and may form a legally binding contract between the company and one or more employees. It can be negotiated through individual contracts or by collective bargaining either directly with employees or with the involvement of a union. The essential components of a performance management system are:

A performance plan is negotiated between a manager and employee for a given period (usually one year). The employee agrees to achieve a specified level of performance in exchange for a reward or to avoid discipline. The plan also commits the manager to assist the employee improve his/her performance. During the year the manager gives employees feedback on their performance and may suggest how it can be improved. 26

Performance is appraised at year-end and decisions are made to reward, discipline or develop employees. Performance is measured in terms of either goals or competencies. Goals are best reserved for professional or managers and competencies used for employees who are less skilled and/or have less control over their work environment. Performance pay or promotional opportunities are typical rewards. Discipline may include dismissal, suspension, loss of privileges or counselling and are usually applied only to willful misbehavior.

Employee development, (rather than discipline) is used to address incompetence. Employees who either cannot or will not successfully undertake this development are made redundant to their position and either redeployed to a position they can handle (if one is available) or given a redundancy package.

The cycle is completed with a new performance plan.

Effective performance management A performance management system will only be effective if it: Rewards behavior that improves the employees performance, Addresses behavior or incompetence that results in poor performance by discipline, development or redundancy. Is integrating into a cycle of planning and performance measurement that extends from corporate, through business unit planning down to individual performance agreements Objectively measures performance. If it is not objective, it will not operate as a system but be continually challenged by employees or managers. Objectivity can be achieved by setting competency standards or goals for various levels of performance,

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explaining how each will be measured and committing to rewards or discipline for each standard during Performance Planning. Appraisal then becomes a simple and unemotional process based on objective criteria.

Is trusted to be fair. Employees need to be reassured that the system will be used equitably across their organization. Achieve this by negotiating use of the system into an Enterprise Agreement or individual performance contracts and then making implementation of the system as transparent as possible. Both managers and employees see that they have something to gain from using the system. Correct implementation sometimes requires managers to change the way they currently work. If they do not also see how it makes their job easier the system will quickly be seen as a bureaucratic chore and will not be implemented successfully. Good design will ensure ease of operation and managers should then be held accountable for using the system through their own performance contracts. Employees naturally resist having their performance measured because they fear the consequences of it being found unsatisfactory. For most employees, this resistance evaporates very quickly if they can see it also provides real opportunities for superior performance to be rewarded.

The best way to ensure that both management and employees are aware of whats in it for them is to involve them in the design of the Performance Management System.

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FUNDAMENTALS OF PMS There are certain fundamentals of the performance management system given as follows: 1. Performance planning is necessary for performance improvements. A good performance plan gives a sense of direction and utilizes human potential and enhances individual and organizational performance. Performance planning done in a participative way, using the organizational context i.e. vision, mission, and long term and short term goals, will enhance commitment to the performance, enhance communication and joint problem solving and hence result in better performance or performance with joy. 2. Identification of KPAs (Key Performance Areas) There no great technology required in identifying the KPAs or designing the performance management systems. It is common sensical and anyone can acquire it in a short time. Experts are not required in designing it. KPAs are intended to give a sense of direction and help in performance improvements. 3. PMS linkage with rewards is fine, but it should not be made a primary purpose as it will dilute or nullify the focus on performance improvements and developmental goals. Whenever rewards were discussed or announced there is more pain than joy. They have more de-motivating to many and motivating value only to few, nowadays its becoming fewer. 4. Developmental needs should be identified along with performance planning in the beginning of the year and thereafter continuously rather than at the end of the performance period. This is a new discovery of the last few years. Identification of training and development needs at the end of the year has led to the postponement and continued poor performance for the entire period. Developmental needs therefore should be identified along with performance plans. A number of organizations today ask the individual to plan his own development. 5. The individual should own performance management more than his boss and his boss more than the HRD department. This is an important fundamental which has been forgotten over the last few years. As HRD managers are in a business of designing and introducing performance management systems there has been a mistaken notion that they are the owners of the system. Today, in quite a few companies line managers think that they have to carry on PMS exercises more as requirement of HRD department rather than as a need of the manager and as an opportunity for the line manager to improve himself and his performance. This notion needs to be broken. Organizations have perpetuated this notion by getting the HRD departments to distribute and collect forms, send reminders. Nowadays it has been realized that the line managers themselves should own these forms, as this is more effective. 6. Performance coaching or mentoring and counseling is a very useful tool for HRD or performance improvements. This fundamental i.e. coaching or performance review and discussions exercises, wherever have been done , there has been an increased mutuality, communication, understanding problem solving ability and many more good things. It has been established beyond doubt that performance improvements will come if the senior helps the junior through periodic review and discussions or coaching. But very few people seem to take the time and effort to do these things.

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THE PMS CONCEPT: The PMS is a system which would meaningfully and objectively link employees performance vis--vis the agencys Organizational Vision, Mission and Strategic Goals. It is a technology composed of strategies, methods, and tools for ensuring fulfillment of the functions of the offices and its personnel as well as for assessing the quality, quantity and timeliness of the accomplishments. The system is also seen as a significant link in the entire process of attaining the Companys goals because it aims to produce information useful in planning, management and decisionmaking processes and to help address crucial management issues and constraints. The PMS hopes to successfully implement a contribution-based and accountability-based security of tenure and meet the ever increasing clients' demands and expectations for excellent service from the highly initiated corps. Currently, the Company uses the term PMS to denote the integrated evaluation system which composes a set of different sub-systems that measure the performance of the offices (collective performance of the individuals). THE PMS OBJECTIVE: The following are the objective of the PMS: To align individual performance goals with the organizations strategic goals/vision; To ensure organizational effectiveness by cascading institutional accountabilities to the various levels of the organizations hierarchy; To have performance management linked to other HR systems. PROCEDURES: The Company implements the system following the PMS Cycle Framework described in the diagram as follows: 1. Performance planning and commitment. 2. Performance monitoring and coaching. 3. Performance review and evaluation. 4. Performance rewarding and development planning.

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Overview:
Many factors influence the performance of an organization, but none is more critical than the decisions people make every day. Those decisions depend, to a great extent, on the answers to three fundamental business questions:

How are we doing? Why? What should we be doing?

Each of these questions has a category of software to provide the answers. Scorecarding, dashboards, and financial consolidation systems supply the metrics to answer How are we doing? Reporting and analysis applications explain the Why? And planning, budgeting and forecasting systems look forward to tell the organization the answer to What should we be doing? The questions, of course, are related. And for the answers to be useful, the software systems that provide those answers must be related as well. That is why Cognos has built a single platform for decision making, which serves as the foundation for the Cognos Performance Management System. Cognos has developed integrated, state-of-the-art technology in which tools for discrete tasks work together in a very fluid and connected way. Equally important is that the Cognos Performance Management System is based on sophisticated, best-practices methodology developed in collaboration with customers, partners and industry thought leaders. Cognos provides both the technology to meet specific daily process requirements, and a performance management roadmap to guide companies as they develop and implement the strategies they need to reach best-in-class status in their respective industries. Performance management is the systematic process by which an agency involves its employees, as individuals and members of a group, in improving organizational effectiveness in the accomplishment of agency mission and goals.

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Employee performance management includes:


1. 2. 3. 4.

planning work and setting expectations, continually monitoring performance, developing the capacity to perform, periodically rating performance in a summary fashion, and rewarding good performance.

5.

In an effective organization, work is planned out in advance. Planning means setting performance expectations and goals for groups and individuals to channel their efforts toward achieving organizational objectives. Getting employees involved in the planning process will help them understand the goals of the organization, what needs to be done, why it needs to be done, and how well it should be done. The regulatory requirements for planning employees' performance include establishing the elements and standards of their performance appraisal plans. Performance elements and standards should be measurable, understandable, verifiable, equitable, and achievable. Through critical elements, employees are held accountable as individuals for work assignments or responsibilities. Employee performance plans should be flexible so that they can be adjusted for changing program objectives and work requirements. When used effectively, these plans can be beneficial working documents that are discussed often, and not merely paperwork that is filed in a drawer and seen only when ratings of record are required.

In an effective organization, assignments and projects are monitored continually. Monitoring well means consistently measuring performance and providing ongoing feedback to employees and work groups on their progress toward reaching their goals. Regulatory requirements for monitoring performance include conducting progress reviews with employees where their performance is compared against their elements and standards. Ongoing monitoring provides the opportunity to check how well employees are 34

meeting predetermined standards and to make changes to unrealistic or problematic standards. And by monitoring continually, unacceptable performance can be identified at any time during the appraisal period and assistance provided to address such performance rather than wait until the end of the period when summary rating levels are assigned.

In an effective organization, employee developmental needs are evaluated and addressed. Developing in this instance means increasing the capacity to perform through training, giving assignments that introduce new skills or higher levels of responsibility, improving work processes, or other methods. Providing employees with training and developmental opportunities encourages good performance, strengthens job-related skills and competencies, and helps employees keep up with changes in the workplace, such as the introduction of new technology. Carrying out the processes of performance management provides an excellent opportunity to identify developmental needs. During planning and monitoring of work, deficiencies in performance become evident and can be addressed. Areas for improving good performance also stand out, and action can be taken to help successful employees improve even further.

From time to time, organizations find it useful to summarize employee performance. This can be helpful for looking at and comparing performance over time or among various employees. Organizations need to know who their best performers are. Within the context of formal performance appraisal requirements, rating means evaluating employee or group performance against the elements and standards in an employee's performance plan and assigning a summary rating of record. The rating of record is assigned according to procedures included in the organization's appraisal program. It is based on work performed during an entire appraisal period. The rating of record has a bearing on various other personnel actions, such as granting within-grade pay increases and determining additional retention service credit in a 35

reduction in force. Note: Although group performance may have an impact on an employee's summary rating, a rating of record is assigned only to an individual, not to a group.

In an effective organization, rewards are used well. Rewarding means recognizing employees, individually and as members of groups, for their performance and acknowledging their contributions to the agency's mission. A basic principle of effective management is that all behaviour is controlled by its consequences. Those consequences can and should be both formal and informal and both positive and negative. Good performance is recognized without waiting for nominations for formal awards to be solicited. Recognition is an ongoing, natural part of day-to-day experience. A lot of the actions that reward good performance like saying "Thank you" don't require a specific regulatory authority. Nonetheless, awards regulations provide a broad range of forms that more formal rewards can take, such as cash, time off, and many nonmonetary items. The regulations also cover a variety of contributions that can be rewarded, from suggestions to group accomplishments.

Managing Performance Effectively. In effective organizations, managers and employees have been practicing good performance management naturally all their lives, executing each key component process well. Goals are set and work is planned routinely. Progress toward those goals is measured and employees get feedback. High standards are set, but care is also taken to develop the skills needed to reach them. Formal and informal rewards are used to recognize the behaviour and results that accomplish the mission. All five component processes working together and supporting each other achieve natural, effective performance management.

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The new performance management system was designed keeping in view the following objectives: To accomplish overall organizational vision & mission by linking individual performance to company objective. To cascade companys strategic goals to individual level. To promote professional excellence To encourage two-way communication between the executive & the reporting officer & bring about transparency in the performance assessment process To evaluate the potential of the executive to assume higher responsibilities in the organization To provide a source of talent for meeting the organizations growth requirements through a process of mapping the competencies & potential of executives To translate future skill requirements of the organization into individual development plans. To identify high performers& recognize them through rewards & incentives, and To facilitate fulfillment of individual aspirations.

METHODOLOGY TO PERFORMANCE MANAGEMENT SYSTEM


1. Set up a consultative process that will facilitate the involvement of managers, employee and union representatives as necessary in the design of your system. Identify what you will measure and how you will measure it. Commit your company to decisions to train, discipline, make redundant or reward according to the level of competency achieved Document and design a system for writing performance plans, giving feedback and appraising performance Negotiate this system into your Enterprise Agreement and/or Individual Performance Contracts and train employees and managers in its use.

2. 3. 4. 5.

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Setting Up a Performance Management System:


Setting up a good performance management system doesn't happen overnight or by accident. You need to consider its design and carefully plan how it will work before managers begin using it to evaluate employees. A performance management system should provide employees with these four basic benefits: 1. A clear understanding of job expectations 2. Regular feedback about performance 3. Advice and steps for improving performance 4. Rewards for good performance

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Why has a performance management system?


Many managers have had bad experiences with formal performance management systems. This is understandable. Many systems are poorly designed and do more to demotivate than motivate employees. When these managers ask me why they should try another one, I explain that a well-designed system will give them the power to: Retain their best employees, Give these employees a reason to maintain their good performance, Deal with poor performers appropriately, and, Attract the type of employee that they need

The goal of a performance management system is to help boost employee performance and, ultimately, the productivity of the business. For it to be effective, a performance management system should incorporate the following critical elements: Updated Job Descriptions Job descriptions should clearly describe the employee's current duties and performance expectations. Position descriptions should be specific, clearly defining the job function, required skills, deadlines and goals, and should delineate expectations for the employee's relations with peers and customers. Keep job descriptions current, especially during times of organizational change. Rapid growth and downsizing inevitably add new responsibilities and shift employees' workloads. Performance Measures and Standards Once you have job descriptions in place, you need to establish performance standards that describe what constitutes below-average, average, and above-average performance. Start by thinking about the best- and worst-case scenarios until you reach realistic standards for measuring performance.

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The essential components of a performance management system are:


A performance plan is negotiated between a manager and employee for a given period (usually one year). The employee agrees to achieve a specified level of performance in exchange for a reward or to avoid discipline. The plan also commits the manager to assist the employee improve his/her performance. During the year the manager gives employees feedback on their performance and may suggest how it can be improved. Performance is appraised at year-end and decisions are made to reward, discipline or develop employees. Performance is measured in terms of either goals or competencies. Goals are best reserved for professional or managers and competencies used for employees who are less skilled and/or have less control over their work environment. Performance pay or promotional opportunities are typical rewards. Discipline may include dismissal, suspension, loss of privileges or counselling and are usually applied only to wilful misbehaviour. Employee development, (rather than discipline) is used to address incompetence. Employees who either cannot or will not successfully undertake this development are made redundant to their position and either redeployed to a position they can handle (if one is available) or given a redundancy package. The cycle is completed with a new performance plan.

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PERFORMANCE APPRAISAL:

INTRODUCTION
Performance appraisal is the process of obtaining, analyzing and recording information about the relative worth of an employee. The focus of the performance appraisal is measuring and improving the actual performance of the employee and also the future potential of the employee. Its aim is to measure what an employee does. Performance appraisal (PA) is one of the important components in the rational and systemic process of human resource management. The information obtained through performance appraisal provides foundations for recruiting and selecting new hires, training and development of existing staff, and motivating and maintaining a quality work force by adequately and properly rewarding their performance. Without a reliable performance appraisal system, a human resource management system falls apart, resulting in the total waste of the valuable human assets a company has. There are two primary purposes of performance appraisal: evaluative and developmental. The evaluative purpose is intended to inform people of their performance standing. The collected performance data are frequently used to reward high performance and to punish poor performance. The developmental purpose is intended to identify problems in employees performing the assigned task. The collected performance data are used to provide necessary skill training or professional development. The purpose of performance appraisal must be clearly communicated both to raters and ratees, because their reactions to the appraisal process are significantly different depending on the intended purpose. Failure to inform about the purpose or misleading information about the purpose may result in inaccurate and biased appraisal reports.

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DEFINITION:
According to Flippo, a prominent personality in the field of human resources, performance appraisal is the systematic, periodic and an impartial rating of an employees excellence in the matters pertaining to his present job and his potential for a better job." Performance appraisal is a systematic way of reviewing and assessing the performance of an employee during a given period of time and planning fo the future. It is a powerful tool to calibrate, refine and reward the performance of the employee. It helps to analyze his achievements and evauate his contribution towards the achievements of the overall organizational goals. By focusing the attention on performance, performance appraisal goes to the heart of personnel management and reflects the managements interest in the progress of the employees.

OBJECTIVES OF PERFORMANCE APPRAISAL


To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. Helps to strengthen the relationship and communication between superior subordinates and management employees. To diagnose the strengths and weaknesses of the individuals so as to identify the training and development needs of the future. To provide feedback to the employees regarding their past performance. Provide information to assist in the other personal decisions in the organization. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees

PURPOSE OF PERFORMANCE APPRAISAL


Performance appraisal is being practiced in 90% of the organizations world wide. Selfappraisal and potential appraisal also form a part of the performance appraisal processes. 42

Typically, performance appraisal is aimed at: To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. To diagnose the training and development needs of the future. Provide information to assist in the HR decisions like promotions, transfers etc. Provide clarity of the expectations and responsibilities of the functions to be performed by the employees. To judge the effectiveness of the other human resource functions of the organization such as recruitment, selection, training and development. To reduce the grievances of the employees. Helps to strengthen the relationship and communication between superior- subordinates and management-employees.

According to a recent survey, the percentage of organizations (out of the total organizations surveyed i.e.50) using performance appraisal for the various purposes are as shown in the diagram:

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The most significant reasons of using performance appraisal are:


Making payroll and compensation decisions 80% Training and development needs 71% Identifying the gaps in desired and actual performance and its cause 76% deciding future goals and course of action 42% Promotions, demotions and transfers 49% Other purposes 6% (including job analysis and providing superior support, assistance and counseling)

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PROCESS OF PERFORMANCE APPRAISAL:

ESTABLISHING PERFORMANCE STANDARDS : the first step in the process of performance appraisal is the setting up of the standards which will be used to as the base to compare the actual performance of the employees. This step requires setting he criteria to judge the performance of the employees as successful or unsuccessful and the degrees of their contribution to the organizational goals and objectives. The standards set should be clear, easily understandable and in measurable terms. In case the performance of the employee cannot be measured, great care should be taken to describe the standards.

COMMUNICATING THE STANDARDS: once set, it is the responsibility of the management to communicate the standards to all the employees of the organization. The employees should be informed and the standards should be clearly explained to them. This will help them to understand their roles and to know what exactly is expected from them. The standards should also be communicated to the appraisers or 45

the evaluators and if required, the standards can also be modified at this stage itself according to the relevant feedback from the employees or the evaluators

MEASURING THE ACTUAL PERFORMANCE : the most difficult part of the performance appraisal process is measuring the actual performance of the employees that is the work done by the employees during the specified period of time. It is a continuous process which involves monitoring the performance throughout the year. This stage requires the careful selection of the appropriate techniques of measurement, taking care that personal bias does not affect the outcome of the process and providing assistance rather than interfering in an employees.

COMPARING THE ACTUAL WITH THE DESIRED PERFORMANCE : the actual performance is compared with the desired or the standard performance. The comparison tells the deviations in the performance of the employees from the standards set. The result can show the actual performance being more than the desired performance or, the actual performance being less than the desired performance depicting a negative deviation in the organizational performance. It includes recalling, evaluating and analysis of data related to the employees performance.

DISCUSSING RESULTS: the result of the appraisal is communicated and discussed with the employees on one-to-one basis. The focus of this discussion is on communication and listening. The results, the problems and the possible solutions are discussed with the aim of problem solving and reaching consensus. The feedback should be given with a positive attitude as this can have an effect on the employees future performance. The purpose of the meeting should be to solve the problems faced and motivate the employees to perform better. DECISION MAKING: the last step of the process is to take decisions which can be taken either to improve the performance of the employees, take the required corrective actions, or the related HR decisions like rewards, promotions, demotions, transfers etc.

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THE PERFORMANCE MANAGEMENT CYCLE:

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METHODS OF PERFORMANCE APPRAISAL:


Different techniques are used for performance appraisal. They include: Appraisal by objectives: some organizations introduce goal-setting as part of the appraisal process. The objectives for the evaluation period (usually 12 months) are determined through joint discussion and negotiation between the superior and sub-ordinate. This system is followed even in organizations which do not have a formal programmer of Management by objectives. Invariably, in many organizations where the objectives are predetermined, Key Performance Areas (KPAs) or Key Result Areas (KRAs) ,are also decided before hand . The evaluation is done in terms of the degree of achievement and non-achievement of objectives/KPAs/KRAs. In several cases the objectives are written down at the beginning of the period by the rate who gives his own evaluation in the self assessment section. The ratee is allowed to state exceptional conditions, if any, which may have contributed to standard deviations from the objectives set at the beginning. Usually in most organizations, most of the appraisal is done in a descriptive form, with specific mention about output, costs, and time schedules where applicable.

Confidential Report: this is a traditional form of performance appraisal, found in most Government organizations. A confidential report is a report on the sub-ordinate by the immediate superior ad covers a limited range of aspects like the candidates strengths, weaknesses, major achievements or failures and information on some personality traits and behavioral aspects. The confidential report system is usually a descriptive one and permits a lot of subjectivity. In recent years, due to the intervention of courts and pressure from trade unions, a negative confidential report is required to be communicated to the rate and if the rate disagrees, there should be a noting on the format to that affect. The confidential report system is widely used for a variety of personnel decisions, particularly transfers and promotions. Trait Appraisal: individual traits are being currently used by most organizations as performance dimensions. Commonly used individual traits include several distinguishing characteristics firmly anchored in human behavior that manifest themselves on the job and influence performance. These characteristics include the following listed below. Ability for sustained hard work Acceptance of responsibility Adaptability Analytical ability Appearance Attendance Attitude towards criticism Capacity to train Commitment to task Communication Confidence Cost consciousness 48

Creativity Decision making Discipline Drive Effort Efficiency Honesty Initiative Intelligence Judgment Leadership Motivation Perseverance Punctuality Personality Resourcefulness Responsibility Self-control Sincerity Tactfulness The problem with these traits and others is that they often relate more to people than to jobs. making them highly susceptible to subjectivity. How well they relate to job performance is hard to say. The rater can freely interpret them thus. Rating scales: these are techniques where performance is measured through assigning numbers (0 to 4,1 to 5 or 1 to 9), alphabets (A to D or E) or words which are descriptive adjectives (e.g., outstanding, very good, good , fair or poor) to items or events to describe differences. Most rating scales are forced choice methods since the differences have to be indicated in terms of one or the other of options given . There are problems in observing and accounting for variations in performance through the rating period and also the effects of external influences on demonstrated performance which make it difficult to select the appropriate interval on a scale. In some cases, the descriptions used may not be precise or adequate to make proper selection. In all rating scales, most organizations are finding it useful to have an extra column to record N.A.(not applicable) or N.O.(not observed) or any other comment as appropriate. Ranking Techniques: ranking techniques encourage superior or peers to rank order all their subordinates or peers as the case may be. This is a form of comparative measurement. Three major ranking techniques are currently in vogue in many organizations: Simple or straight ranking- this technique provides for an ordinal scoring: first, second and third and so on . This technique requires the rater to rank from the best to the poorest all the subordinates in the same work unit doing the same job. Here the ranking is usually confined to one factor, i.e. overall performance or effectiveness. This technique is simple. However, it is difficult to assign relative ranking to those at the bottom and rates may perceive this as a zerosum game, one wins and the other loses. If raters are allowed to rank two or more rates equally, the negative aspects of zero-sum game can be avoided.

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Forced distribution ranking- this is ranking technique where raters are required to allocate a certain percentage of rates to certain categories (e.g., superior, above average, average, etc.) or percentiles (e.g., top 10%, bottom 20%, etc). Both the number of categories and percentage of employees to be allotted to each category are a function of the performance appraisal design and format. The technique serves a useful function if the purpose is to relatively rank members of the same work unit by assigning different categories or positions (e.g. top, middle and bottom) but it is difficult to obtain accurate relative standings of members of different work units by different raters. Paired comparison- this technique requires the rater to appraise which of the two employees is superior, instead of having to rank order all the employees in the same work unit doing the same job. This is widely used when one is comparing a small number of people. The rater compares an employee with every other individually as shown in the following diagram. Usually the overall ability to perform is reckoned.

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ROW/COLUMN A B C D E F G X X X X X X

X X X X X

X X X X

X X X

X X

The number of comparisons to be made for a given number of comparison items (or persons) is indicated in the following formula: N(N-1)/2, where N= the number of persons to be compared Comparing 7 persons, 7(7-1)/2 = 21 comparisons Comparing 15 persons, 15(15-1) =105 comparisons It is seen that when the number of persons is roughly doubled, the number of comparisons to be made rose by a factor of five. Therefore it is better to divide the work group into smaller subgroups and restrict paired comparisons to members within the sub-group. The final ranking is determined by the number of times that an individual is judged better than the others. Narrative or Descriptive methods: the ongoing search for newer and better techniques of appraising employees performance led to several descriptive methods. These include the essay and the critical incident methods, among others. Both these methods require the rater to provide a written description of employees performance, but differ as discussed below: The essay method- in this method, the rater describes the ratee in terms of several broad categories such as the persons strengths and weaknesses, major achievements and failures, potential, training and development needs and overall performance. The success of the essay method depends on the writing skills and the analytical ability of the rater. It is time consuming. Processing the essays for decision-making purpose would be difficult. This method is recommended for assessing very senior managerial staff and other categories where the numbers involved is small. The critical incident method- this method requires the rater to maintain a record of major observations of what he feels are work behaviors critical to the difference between success and failure. It provides information based on systematic observation of actual job performance. This is time-consuming and cumbersome. Also quoting incidents after considerable time lapse may evoke emotions and problems. The main advantage of this method is that it is defensible from the raters point of view.

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360Degree appraisal:
In human resources, 360-degree feedback, also known as 'multi-rater feedback', 'multisource feedback', or 'multisource assessment', is employee development feedback that comes from all around the employee. "360" refers to the 360 degrees in a circle. The feedback would come from subordinates, peers, and managers in the organizational hierarchy, as well as self-assessment, and in some cases external sources such as customers and suppliers or other interested stakeholders. It may be contrasted with upward feedback, where managers are given feedback by their direct reports, or a traditional performance appraisal, where the employees are most often reviewed only by their manager. The results from 360-degree feedback are often used by the person receiving the feedback to plan their training and development. The results are also used by some organizations for making promotional or pay decisions, which is sometimes called "360-degree review."

Rater accuracy
A study on the patterns of rater accuracy shows that how long the rater has known the person has the most effect on the accuracy of a 360-degree review. The study shows that subjects in the group known for one to three years are the most accurate, followed by known for less than one year, followed by known for three to five years and the least accurate being known for more than five years. The study concludes that the most accurate ratings come from knowing the person long enough to get past first impressions, but not so long as to begin to generalize favorably. Effects of 360-degree feedback A study on 360-degree feedback to leaders conducted by Arizona State University has supported the hypothesis that improvement in a leaders consideration and employee development behaviors will lead to positive changes in employees'job satisfaction and engagement,and reduce their intent to leave.

Strategic Data
While the value of 360-degree feedback is often seen in terms of individual development, aggregate reporting of all recipients' results can provide valuable data for the organization as a whole. It enables leaders to Take advantage of under-utilized personnel strengths to increase productivity Avoid the trap of counting on skills that may be weak in the organization Apply human assets data to the valuation of the organization Make succession planning more accurate Design more efficient coaching and training initiatives 52

Support the organization in marketing the skills of its members

History:
The US armed forces first used 360-degree feedback to support development of staff in the 1940s.The system gained momentum slowly, but by the 1990s most HR and OD professionals understood the concept. The problem was that collecting and collating the feedback demanded a paper-based effort including either complex manual calculations or lengthy delays while a commercial provider assembled reports. The first led to despair on the part of practitioners; the second to a gradual erosion of commitment by recipients. When the first online 360 degree feedback tools appeared in 1998, it became possible to request feedback from raters anywhere in the world by email, to customize automated systems, and to generate reports for recipients in minutes. In recent years, Internet-based services have become the norm, with a growing menu of useful features: e.g. multi languages, comparative reporting, and aggregate reporting.

Benefits
Individuals get a broader perspective of how they are perceived by others than previously possible. Increased awareness of and relevance of competencies. Increased awareness by senior management that they too have development needs. More reliable feedback to senior managers about their performance. Gaining acceptance of the principle of multiple stakeholders as a measure of performance. Encouraging more open feedback new insights. Reinforcing the desired competencies of the business. Provided a clearer picture to senior management of individuals real worth (although there tended to be some halo effect syndromes). Clarified to employees critical performance aspects. Opens up feedback and gives people a more rounded view of performance than they had previously. Identifying key development areas for the individual, a department and the organization as a whole. Identifying strengths that can be used to the best advantage of the business.

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A rounded view of the individuals/ teams/ organizations performance and what the strengths and weaknesses are. Raised the self-awareness of people managers of how they personally impact upon others positively and negatively. Supporting a climate of continuous improvement. Starting to improve the climate/ morale, as measured through the survey. Focused agenda for development. Forced line managers to discuss development issues. Perception of feedback as more valid and objective, leading to acceptance of results and actions required. Introducing 360 feedback in an organization

Before introducing 360 feedback in an organization the planning process must include the step addressing the benefits and perceived risks of all participants. Recipients of feedback and reviewers may have concerns about issues like confidentiality of reviews, how the completed reviews will be used in the organization and what sort of follow up they can expect. Communication and support provided throughout the project must take this into account if the programme is to provide maximum value for the individuals and the organization using 360 feedback.

Why organizations may not adopt the 360 degree approach Return on investment, for the time and energy required, is perceived to be minimal. Transparent feedback can be adversely affected by emotions and ongoing peer conflicts. Appraisees are not ready for honest and open feedback. Some cultures rigidly avoid passing negative feedback, or information, to superiors or elders.

Behaviorally anchored rating scales In psychology research on behaviorism ,Behaviorally Anchored Rating Scales (BARS) are scales used to report performance. BARS are normally presented vertically with scale points ranging from five to nine.

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BARS Behaviorally Anchored Rating scales is a method that combines elements of the traditional rating scales and critical incidents methods. In order to construct BARS seven steps are followed as mentioned below Examples of effective and ineffective behavior related to job are collected from people with knowledge of job. These behaviors are converted in to performance dimensions. A group of participants will be asked to reclassify the incidents. At this stage the incidents for which there is not 75% agreement are discarded as being too subjective. Then the above mentioned incidents are rated from one to nine on a scale. Finally about six to serve incidents for each performance dimensions- all meeting retranslation and standard deviation criteria will be used as BARS.

This is by far the best method used for a performance appraisal method

Management By Objectives (MBO):


Management by objectives (MBO) is a systematic and organized approach that allows management to focus on achievable goals and to attain the best possible results from available resources. It aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identify their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives. Management by Objectives (MBO) was first outlined by Peter Drucker in 1954 in his book 'The Practice of Management'. In the 90s, Peter Drucker himself decreased the significance of this organization management method, when he said: "It's just another tool. It is not the great cure for management inefficiency... Management by Objectives works if you know the objectives, 90% of the time you don't."

Core Concepts:
According to Drucker managers should "avoid the activity trap", getting so involved in their day to day activities that they forget their main purpose or objective. Instead of just a few topmanagers, all managers should: participate in the strategic planning process, in order to improve the implementability of the plan, and implement a range of performance systems, designed to help the organization stay on the right track.

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Managerial Focus
MBO managers focus on the result, not the activity. They delegate tasks by "negotiating a contract of goals" with their subordinates without dictating a detailed roadmap for implementation. Management by Objectives (MBO) is about setting yourself objectives and then breaking these down into more specific goals or key results.

Main Principle
The principle behind Management by Objectives (MBO) is to make sure that everybody within the organization has a clear understanding of the aims, or objectives, of that organization, as well as awareness of their own roles and responsibilities in achieving those aims. The complete MBO system is to get managers and empowered employees acting to implement and achieve their plans, which automatically achieve those of the organization.

Where to Use MBO


The MBO style is appropriate for knowledge-based enterprises when your staff is competent. It is appropriate in situations where you wish to build employees' management and self-leadership skills and tap their creativity, tacit knowledge and initiative. Management by Objectives (MBO) is also used by chief executives of multinational corporations (MNCs) for their country managers abroad.

Advantages

What should be done in an organization to achieve organizational goals. MBO process secures employee commitment to attaining organizational goals. Clarifies the job to be done. Every individual understands his area of work and the role he is to play in the organization. There is active MBO programs continually emphasize participation of sub-ordinates in goal setting and performance reviews. MBO helps in increasing competence, personal growth and opportunity for career development. MBO promotes continuous feedback and opportunities for self control which helps to develop the leadership potential of lower level executives. MBO stimulates self-motivation, self-discipline and self-control which helps in the overall development of the organization. MBO serves as a device for integration of many management functions.

Disadvantages

The development of objectives can be time consuming, leaving both managers and employees less time in which to do their actual work.

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The elaborate written goals, careful communication of goals, and detailed performance evaluation required in an MBO program increase the volume of paperwork in an organization. MBO often lacks the support and commitment of top management.

SKILL MATRIX:
What do skills mean? Skills are the powers to act rightly and reflexively (without thinking) based on the learnt knowledge in all phenomenons, and to sustain it for a long time. Skilled men are excellent at acting in a reflectively shorter time from finding of a trouble to taking an action. 5 phases of skills:Skills can be classified into the following five phases Level 0: Do not know (not taught) lack of knowledge. Level 1: know the theory lack of training Level 2: Can do to some degree lack of training Level 3: Can do with confidence learnt by doing Level 4: Can teach to others perfectly mastered 1) Do not know Lack of knowledge without fully understanding principles and rules of work and equipment as mentioned earlier. Lowest in level. 2) Know the theory Know principles and rules of work and equipment, but cannot do when it comes to practice. 3) Can do to some degree Can practice, but performance causes large dispersions and hence no reproducibility. One more step is required caused by lack of training. 4) Can do with confidence The body has perfectly learnt it. A very good phase to accomplish jobs any time and anywhere without mistake. 5) Can teach to others The skill has been perfectly mastered can explain know-why and the method to transmit skills has been mastered. Skill evaluation-: When providing training evaluates the knowledge, technology and skill level of each operator required for the position category and job grade. Shortages should be improved in a planned manner. 57

PERFORMANCE APPRAISAL TO PERFORMANCE MANAGEMENT The last decade has seen a great change in approaches to performance appraisal systems across the world. There has been a great realization that it is more important to focus on defining, planning, and managing performance than merely appraising performance. While the interest in measuring performance and linking with rewards remains the same, the need to develop it, hither to neglected, has gained recognition. Most organizations prefer to call the systems as Performance Management systems rather than Performance Appraisal systems. This is the most welcome change of the last decade. Surveys after surveys of Fortune 500 or 1000 companies indicate high degree of dissatisfaction than satisfaction with performance appraisal systems.

PERFORMANCE MANAGEMENT SYSTEM Vs. PERFORMANCE APPRAISAL SYSTEM First, it is important to distinguish between performance appraisal systems and performance management systems. It is as follows:

PERFORMANCE APPRAISAL SYSTEM

PERFORMANCE MANAGEMENT SYSTEM

1. Focus is on performance appraisal and 1. Focus is on performance management and generation of rating. development.

2. Emphasis is on relative evaluation of 2. Emphasis is on performance improvements individuals. of individuals, teams and the organization.

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3. Annual exercise-normally though periodic 3. Continuous process with quarterly evaluations are made. performance review and discussions.

4. Emphasis is on ratings and evaluations.

4. Emphasis is on performance planning, analysis, review, development and improvement.

5. Rewards and recognition of good 5. Performance rewarding may or may not be performance is an important component. an integral part. Defining and setting performance standards is an integral part.

6. Designed department.

and

monitored

by

HR 6. Designed by the HR department but could be monitored by the respective departments themselves.

7. Developmental needs are identified at the 7. Developmental needs are identified in the end of the year on the basis of the appraisal beginning of the year on the basis of the of competency gaps. competency requirements for the coming year. 8. Linked to promotions, rewards, training, 8. Linked to performance improvements and placements, etc. developments.

Thus, the main difference between the performance management and appraisal systems is their respective emphasis and spirit. Good organizations in the past have used essentially their performance appraisal systems as performance management systems. The title seems to mean a lot in communicating the appropriateness of the systems and its emphasis.

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WHAT IS NEW IN PMS? The PMS has very little new things from the performance appraisal. Some of these include the following: Move away from appraisals. These are performance management systems and not appraisal systems. The focus is improvements and development rather than appraisals. Move away from numbers to qualitative assessment. Numbers in performance appraisals whether they are five point scale, or seven point scales or ten point scales, they mislead a lot more than provide any objective assessment. Innovate. Process is more important than formats. Formats put the process in a shape and a systematic way. They have the danger of making themselves more important than the process. When the format becomes more important than the process it kills the main objective of development. Emphasize learning and development, empowerment and growth, and problem solving more than assessment, objectivity, measurement etc. Publicize the KPAs, performance plans etc. on the local networks so that any one can access and use for each other. Encourage employees to own their own performance management. Monitor the process and not the filling of formats. Follow up actions must be taken and taken on time. It may be training or job rotation or removing blocks or any other things.

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PERFORMANCE MANAGEMENT SYSTEM Pitfalls No matter how good a system, it will fail to deliver if the following are not watched out for:---Lack of support from Top Management This may happen because the top management fails to see any link between the performance management system and the business goals of the Organization. Fear of failureThere is a suspicion among many appraisers that a poor appraisal result tends to reflect badly upon tem also, since they are usually the employees supervisor. Many appraisers have a vested interest in making their subordinates look good on paper. Judgment aversionMany People has a natural reluctance to play judge and create a permanent record, which may affect an employees future career. This is the case especially where there may be a need to make negative appraisal remarks. Training in the techniques of constructive evaluation (such as self auditing) may help. Appraisers need to recognize that problems left unchecked could ultimately cause more harm to an employees career then early detection and correction. RitualOne of the most common mistakes in the practice of performance appraisal is to perceive appraisal as an isolated event rather than an ongoing process. Frequent mini appraisals and feedback sessions will help ensure that employees receive the ongoing guidance support and support and encouragement they need. Lack of Ownership Often, line managers tend to believe that performance appraisal is not their responsibility but the responsibility of H.R. All supervisors need to recognize that they are responsible for the performance and development of their subordinate. Lack of skillsMany times employees does not know how to do objective setting. How to assess people and give and receive feedback these skills are very important for any performance management system to succeed Delay in CompletionFeedback is effective when it is timely. If the Performance assessment or the feedback exercise is delayed, and then it has little meaning for the employee and the organization.

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TYPES OF ERRORS -

While evaluating performance of the candidate under the PMS few types of error can take place that are as follows STRICTNESS ERROR: It occurs when the appraiser artificially assigns all or certain group of employees low performance ratings and consequently all or certain scores cluster at the bottom of the rating scales. CENTRAL TENDENCY: It is the tendency of the appraiser to avoid using the extremes of rating scales and to cluster the ratings around the mid point. SPILL OVER EFFECT: It is the tendency of the appraiser to carry in mind the past performance of the appraise in view while making evaluation on the present Performance. RECENCY EFFECT: Some times the raters assign ratings on the basis of recent behavior they have seen in there appraises forgetting about past behavior over a period. This is called recency effect.

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RESEARCH METHODOLOGY WHAT IS A RESEARCH?


Research is the systematic and objective search for the analysis of information relevant to the identification and solution of the specific problem. Research is science and a systematic search for pertinent information on a particular topic. In fact research is an act of scientific investigation.

TYPES OF RESEARCH
Broadly research can be divided into two heads experimental and non-experimental. Three essential components of experimental research are control, manipulation and measurement. Experimental method of data collection is ideal though not always possible because of many research problems in the social science and education do not lend themselves to experimental enquiry. A little reflection on some of the important variable in educational research intelligence, aptitude, personality etc will show that they are not manipulability. Even, if we avoid non-experimental method we cannot. Non-experimental research posses only one component which is measurement. The researcher does not exercise any control over the extraneous variable. He simply measures the effect on dependent variable as they occur naturally- without manipulation. This means that this type of research cannot establish casual relationship. One of the common method of survey is non-experimental research is field survey under which comes the sample survey. A sample survey is also a form of ex-post facto research in which the researchers simply collect the data about certain psychological or sociological characteristic of the sample that represents the known population. The researcher is interested in knowing something about the whole population but cannot study the whole population and he only studies the sample drawn from the populations. The data are sought directly from the respondents by a systematic technique like a questionnaire, which is the most popular are widely used technique of data collection.

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RESEARCH DESIGN
A researcher design is the overall plan or programmed of research. It is the general blue print for the collection, measurement and analysis of data . It includes an outline what an investigator can do from writing the hypothesis and their operational implication to the final analysis of data. Various uses of having a research design are as follows 1. It provides answers to various questions such as: What is the object of research? What data are needed and how will these be gathered? What will be the time, place and sample of study? How will the data be analyzed and interpreted? 2. It acts as a standard and guidepost, which helps the researcher in measuring his/her shortcoming and deviation in actual research later on. 3. It forestalls the possibility of a fruitless enquiry and act as an insurance against future failure.

SOURCES OF DATA

PRIMARY DATA SOURCE: Primary data source comprises responses to questionnaire and interviews conducted with manager, supervisor of all department of the company.

SECONDARY DATA SOURCE: Secondary data source is the one that makes available data that are collected by some other agency earlier. It comprises different books on the human resource.

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PREPARATION OF QUESTIONNAIRE
Much labor and care was taken in designing the questionnaire to maintain the brevity and accuracy. The rule is to gather the data you need but not more than is needed, therefore the number of questions was only ten. The questions were such that which evoked accurate and desired responses which contained the information sought. The questionnaire was in a structured format in which the questions are asked from the respondents were very precise and concisely stated in advance, thus maximizing standardization. Question provided the subject with the multiple-choice response with four rating. In order to design a good questionnaire all relevant books on the subject were consulted. All the available articles and research work were taken into account. Exploratory discussion with my guide, who had intimate knowledge of the subject, helped me never lose sight of the hypothesis to be tested. Care was taken to relate all questions intimately to the final objective of the investigation.

DETERMINATION OF SAMPLE

POPULATON It is defined in terms of elements, unit, extent and time. The demographic profile of the respondents was a below: Men or women employed starting from grade E1 to E9 must have a knowledge about PMS (performance management system) and their performance is evaluated according to that PMS only. Nature of population was homogeneous therefore a small sample was effective to represent it. SIZE: - 75 employees

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SAMPLING METHOD
Non random (or probability) samples In which the probability of unit selection is unknown at any stage of the selection process and the selection of unit is based on the judgment of the researcher was selected. The method used was purposive sampling. These term means selection by design by choice and not by chance. The sample was chosen which was thought to be typical of the universe with regard to the characteristic under investigation. Such type of sampling was possible because of my guide who already had the necessary required knowledge about the employees that made it easier to recognize typical items in the universe.

COLLECTION OF DATA
When planning was completed, the survey moved into the field and undertook the fieldwork that is distribution and collection of facts. The total number of questionnaire distributed were 90 out of which only 75 were taken into analysis , few were not considered due to incomplete data entry and few questionnaires were not filled.

ANALYSIS OF DATA
Researcher must breathe life into the cold data by skillful analysis and hence need to follow three steps editing, classifying and analyzing the data. The content of the data obtained in a survey were carefully checked for any possible inconsistencies and incompleteness. Then came the careful analysis the data are then coded and tabulated according to the rating in the dummy table. And then finally tabulated data is interpreted with the help of spreadsheet in excel to reach a final conclusion.

PRESENTATION OF DATA
It is the last stage of survey. Through good presentation, significant facts and comparisons are highlighted. The presentation of facts done by preparing charts like bar chart, pie chart etc in the excel.

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REASON FOR SELECTING SAMPLE SURVEY:


Sample survey was preferred as the means of data collection to explore the existence of the perception phenomenon, as a sample survey is extensive in scope. Use of a representative sample in a survey reduce problems of sample bias and allow generalizing the result to the present population. Data collection can take place in any setting. It is assumed that the respondents replies generally remain uninfluenced by the setting in which they are given. Data are obtained directly from the respondent.

LIMITATION
There are possibilities of the information being biased. Bias can be both deliberate and nondeliberate. Non-deliberate bias crept in the form of approximation when respondent were asked to supply information on some past event which they do not exactly remember. Use of standardized response formats in many questions forced respondents to subscribe to statements to which they do not fully endorse.

REASON FOR SELECTING PURPOSIVE SAMPLING AS THE SAMPLING METHOD


It is very simple to draw and involve less fieldwork since those units can be selected which possess the required knowledge on the topic of the investigation.

LIMITATION
It is not always reliable . The human mind was difficult in recognizing typical items. This difficulty tends to distort purposive sampling. The Problem was faced as one does not have the considerable knowledge about the population and this problem gets solved with the help of my guide.

REASON FOR SELECTING QUESTIONNAIRE AS THE DATA COLLECTION TECHNIQUE


It is relatively inexpensive mode of data collection . It covers wider geographical area at a relatively low cost per respondent. It presents a uniform stimulus to all respondent i.e. each respondent receives an identical questionnaire. It enables the respondent to answer question perhaps those of personal or embarrassing nature more willingly and accurately. It can be answered at the convenience of the respondent

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DATA ANALYSIS
Q.1. The ratings given by manager are biased? The number of employees who gave: Rating 1 = 44 employees Rating 2 = 09 employees Rating 3 = 22 employees Total = 75 employees

The above Pie Chart reflects that, the ratings given by the manager of the Shriram Pistons and Rings Ltd. may be biased.

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Q.2. The manager clearly explains the set targets? The number of employees who gave: Rating 1 = 01 employees Rating 2 = 04 employees Rating 3 = 70 employees Total = 75 employees

Before making the target Manager explains each and every thing about the set targets How to do When to do etc 93% people are agreed on this.

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Q.3. The doubts about the set standards /targets are cleared? The number of employees who gave: Rating 1 = 04 employees Rating 2 = 09 employees Rating 3 = 62 employees Total = 75 employees

Whatsoever spoken by the managers most of the employees are satisfied and their vision is clear.

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Q.4. You are coached about how to accomplish the set standards/ targets by the management? The number of employees who gave: Rating 1 = 04 employees Rating 2 = 09 employees Rating 3 = 62 employees Total = 75 employees

Whatever targets are set by the management the employees are coached about that and 88% employees are agreed on this.

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Q.5. When the employees do not meet the set standards/ targets, the management provides training of an employee? The number of employees who gave: Rating 1 = 05 employees Rating 2 = 21 employees Rating 3 = 49 employees Total = 75 employees

It is not possible for every employee to understand the set standards easily, therefore, appropriate training is provided by the management to most of the employees.

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Q.6. How much are you satisfied with the set standards/ targets of an employee? The number of employees who gave: Rating 1 = 03 employees Rating 2 = 09 employees Rating 3 = 63 employees Total = 75 employees

It is necessary to set certain standards/targets in every organization in order to achieve the organizational goal and here in SPRL the set standards and targets are favorable and understandable to the employees.

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Q.7. Do you think favoritism of manager is involved during appraisal? The number of employees who gave: Rating 1 = 38 employees Rating 2 = 12 employees Rating 3 = 25 employees Total = 75 employees

It maybe because manager is also a human being so there is the chances of favoritism.

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Q.8. Performance of the candidate is affected due to favoritism? The number of employees who gave: Rating 1 = 37 employees Rating 2 = 14 employees Rating 3 = 24 employees Total = 75 employees

We should create such an environment in which employees do their work with enthusiasm and zeal and SPRL is succeeded in creating such an environment and hence favoritism may not affect the performance of the employees. But those employees who are not getting the good rating because everyone is not best so some employees think that there maybe some favoritism.

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Q.9.Are you satisfy with the rating system of Shriram Pistons and Rings Ltd.? The number of employees who gave: Rating 1 = 04 employees Rating 2 = 12 employees Rating 3 = 59 employees Total = 75 employees

This data shows that employees maybe satisfied with the rating system of SPRL which is based on skill matrix & some sort of MBO.

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Q.10. Performance management motivates the employees? The number of employees who gave: Rating 1 = 05 employees Rating 2 = 06 employees Rating 3 = 64 employees Total = 75 employees

The PMS of SPRL maybe motivating to all the employees.

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Q.11. Individual skills should be taken into account? The number of employees who gave: Rating 1 = 08 employees Rating 2 = 22 employees Rating 3 = 45 employees Total = 75 employees

The PMS of the SPRL maybe taking individual skills into account.

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Q.12. Performance is based on the skill level? The number of employees who gave: Rating 1 = 04 employees Rating 2 = 10 employees Rating 3 = 61 employees Total = 75 employees

The performance in SPRL maybe based on the skill level.

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Q.13. Reward has been given according to the performance? The number of employees who gave: Rating 1 = 02 employees Rating 2 = 04 employees Rating 3 = 69 employees Total = 75 employees

The reward in SPRL maybe given according to the performance.

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Q.14. Provisions are available when not satisfied with the performance management? The number of employees who gave: Rating 1 = 07 employees Rating 2 = 10 employees Rating 3 = 58 employees Total = 75 employees

The provisions maybe available when not satisfied with the performance management.

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Q.15. Are you satisfied with the steps taken to stop favoritism by the management? The number of employees who gave: Rating 1 = 04 employees Rating 2 = 09 employees Rating 3 = 62 employees Total = 75 employees

The management maybe taking proper steps to stop the favoritism in SPRL.

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Q.16. Suggestions are given by the manager for improvement of the performance? The number of employees who gave: Rating 1 = 01 employees Rating 2 = 03 employees Rating 3 = 71 employees Total = 75 employees

In SPRL, the effective suggestions maybe given by the manager to improve the performance.

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Q.17. The management provides timely information about the performance of an employee? The number of employees who gave: Rating 1 = 05 employees Rating 2 = 04 employees Rating 3 = 66 employees Total = 75 employees

The timely information about the performance maybe provided by the management to the employees.

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Q.18. The potential of every employee is identified? The number of employees who gave: Rating 1 = 06 employees Rating 2 = 08 employees Rating 3 = 61 employees Total = 75 employees

The above data shows that the potential of every employee maybe identified.

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Q.19. Every performance/ skills of an employee are taken into account? The number of employees who gave: Rating 1 = 07 employees Rating 2 = 19 employees Rating 3 = 49 employees Total = 75 employees

Peoples opinion is that most of the time their performance is accounted.

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Q.20. By performance management the interpersonal relationships of the affected? The number of employees who gave: Rating 1 = 24 employees Rating 2 = 20 employees Rating 3 = 31 employees Total = 75 employees

employees are

The interpersonal relationships of the employees may be affected due to PMS in SPRL.

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Q.21. Efforts are being made to minimize the favoritism of a manager? The number of employees who gave: Rating 1 = 07 employees Rating 2 = 19 employees Rating 3 = 49 employees Total = 75 employees

Efforts would be made to minimize the favoritism of manager in SPRL.

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Q.22. Annual feedback is beneficial in improving the performance? The number of employees who gave: Rating 1 = 04 employees Rating 2 = 15 employees Rating 3 = 56 employees Total = 75 employees

The annual feedback could be beneficial in improving the performance in SPRL.

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Q.23. There should be changes in the performance management? The number of employees who gave: Rating 1 = 22 employees Rating 2 = 19 employees Rating 3 = 34 employees Total = 75 employees

Some sort of changes could be made in PMS by the management in SPRL.

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Q.24. The method of appraising an employee should be changed? The number of employees who gave: Rating 1 = 13 employees Rating 2 = 25 employees Rating 3 = 37 employees Total = 75 employees

Some sort of changes could be made in method of appraising an employee by the management in SPRL.

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RECOMMENDATION

Earlier in SPRL the method implied to appraise the performance of employees was grading system but now skill matrix system has been implemented in the PMS (performance management system). That is why we conducted a survey through the means of filling the questionnaire by the employee to identify to what extent it is effective and after analyzing the viewpoints and feedback of the employees we found it to be effective. Though there are certain shortcomings in the system that can be overcome to some extent by making certain changes in it. So few of my suggestion are as follows: Performance coachings should be provided to the person who is filling the form in order to provide favoritism. Training should be provided to the employees. Implementation should be in the true spirit of PMS. There is a strong need for enhanced transparency. Final scores are not communicated to the concerned person.

The PMS should provide sufficient scope to the employee for accomplishment of their group objective along with their individual objective by evaluating their performance in a group because achievement of group objective is also important In the PMS potential of the candidate identified should correlates with the work requirement, in order to accomplish it the work should be assigned to the individual by identifying his potential, interest area so that there is not much wide gap between the potential possessed and requirement of the work and as a result the performance of the candidate improves, moral level will be high and he will be satisfied with the work which is beneficial for the organization for accomplishment of its overall objective.

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CONCLUSION

It is very essential for every organization to identify the performance level of every employee, without which management cannot take the decision regarding the need for training, promotion neither for transfer within the particular branch or across the branches of the organization. In other words, management need to appraise the performance in order to take the decision regarding the rewarding the employee in order to motivate him or taking the corrective actions. I would like to end my research report by concluding that the PMS (performance management system) of SPRL is quite effective as 70% of the employees are agree with it, which is a big margin. Various steps are being taken to avoid feudism and favoritism. Further, I can say that after analyzing I found the performance management system of SPRL is effective and it is working hard to make it more effective.

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BIBLIOGRAPHY

BOOKS Personnel Management by Edwin Flippo. Human Resource Management by L.M Prasad. Performance Appraisal by Martin Fisher. HRD Missionaries by T.V. Rao. Management is the name of game by Chakravorthy. Human Resource and Development A.K Singh, B.R Duggal. WEBSITES WWW.GOOGLE.COM WWW.CITE HR.COM

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QUESTIONNAIRE
Below is the questionnaire aims at seeking information for the purpose of project on The Satisfaction of the employees with the Performance Management System . The scale of 1 to 3 is used. Where, 1. = Unsatisfied 2. = Partially satisfied 3. = Fully satisfied 1. The ratings given by manager are biased? 3 2 2. The manager clearly explains the set targets? 3 2 1 1

3. The doubts about the set standards /targets are cleared? 3 2 1 4. You are coached about how to accomplish the set standards/ targets by the management? 3 2 1 5. When the employees do not meet the set standards/ targets, the management provides training of an employee? 3 2 1 6. How much are you satisfied with the set standards/ targets of an employee? 3 2 1 7. Do you think favoritism of manager is involved during appraisal? 3 2 1 8. Performance of the candidate is affected due to favoritism? 3 2 1 9. Do you satisfy with the rating system of Shriram Pistons and Rings Ltd.? 3 2 1 10. Performance management motivates the employees? 3 2 1 11. Individual skills should be taken into account? 3 2 1

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12. Performance are based on the skill level? 3 2

13. Reward has been given according to the performance? 3 2 1 14. Provisions are available when not satisfied with the performance management? 3 2 1 15. Are you satisfied with the steps taken to stop favoritism by the management? 3 2 1 16. Suggestions are given by the manager for improvement of the performance? 3 2 1 17. The management provides timely information about the performance of an employee? 3 2 1 18. The potential of every employee is identified? 3 2 1

19. Every performance/ skills of an employee are taken into account? 3 2 1 20. By performance management the interpersonal relationships of the employees are affected? 3 2 1 21. Efforts are being made to minimize the favoritism of a manager? 3 2 1 22. Annual feedback is beneficial in improving the performance? 3 2 1 23. There should be changes in the performance management? 3 2 1 24. The method of appraising an employee should be changed? 3 2 1

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