SUMMER INTERNSHIP PROJECT REPORT ON

EVALUATION OF PERFORMANCE APPRAISAL AT LAKHANI

ARMAAN GROUP

Submitted in partial fulfilment of requirement of Bachelor of Business

Administration (BBA) General

BBA 5th SEMESTER (Morning Batch)

BATCH 2014-2017

Submitted to: Submitted by:

Mrs. Shradha Goyal Hemant Kumar
Assistant Professor 00114101714

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL,

KALKAJI
1
 DECLARATION

I hereby declare that the present study of Evaluation of Performance

Appraisal at Lakhani Armaan Group. Is based on my original research work
for the fulfilment of the continuous evaluation of the assessment of 45 days
summer internship program, BBA (2014- 2017) .The report has been done by
me under the guidance of Mr. Virender Singh (Industry guide) and Ms.
Shradha Goyal (Faculty Guide) the research presented in this study has not
been submitted in full or part in this or any other university of the award of any
degree or diploma.

Signature of Student

Hemant Kumar

2
 INDEX

S.No. Content Page No.

1. Executive Summary 7-9

Introduction 10-12
Importance of Performance appraisal 13
2.
Managers role in engagement 14
Methods to increase performance appraisal 15-22

Introduction to company 23-26

3. Product mix 27
Organization Structure & research method 28

Literature review 29-41

4. Objectives 42-43

Research Methodology 44-45

5. Research Analysis 46
Interpretation of results and findings 47-57

6. Limitations 58-59

7. Conclusion & Recommendations 61-62

8. Bibliography 63-64

9. Appendix 65-69

3
 ACKNOWLEDGEMENT
A lot of effort has gone into this training report. My thanks are due to many
people with whom I have been closely associated. I would like to thank all those
who have contributed in completing this project. First of all, I would like to
send my sincere thanks to Mrs. Shradha Goyal for his helpful hand in the
completion of my project.

I would like to thank my entire beloved family & friends for providing me
monetary as well as non-monetary support, as and when required, without
which this project would not have completed on time. Their trust and patience is
now coming out in form of this thesis.

4
 CERTIFICATE OF COMPLETION

This is to certify that the Project Report title EVALUATION OF

PERFORMANCE APPRAISAL AT LAKHANI ARMAAN GROUP
submitted in partial fulfilment for the award of BBA Program of JIMS Kalkaji,
New Delhi, was carried out by Hemant Kumar under my guidance.

Name of the Guide:

Ms. Shradha Goyal

Assistant Professor

5
6
EXECUTIVE SUMMARY

7
 EXECUTIVE SUMMARY
An organizations productivity is measured not in terms of employee
satisfaction but by Performance Appraisal. Employees are said to be engaged
when they show a positive attitude toward the organization and express a
commitment to remain with the organization. Organizations that believe in
increasing Performance Appraisal levels focus on:

Culture:
It consists of a foundation of leadership, vision, values, effective
communication, a strategic plan, and HR policies that are focused on the
employee.

Continuous Reinforcement of People-Focused Policies:

Continuous reinforcement exists when senior management provides staff
with budgets and resources to accomplish their work, and empowers
them.

Meaningful Metrics:
They measure the factors that are essential to the organizations
performance. Because so much of the organizations performance is
dependent on people, such metrics will naturally drive the people-focus
of the organization and lead to beneficial change.

Organizational Performance:
It ultimately leads to high levels of trust, pride, satisfaction, success, and
believe it or not, fun.

Provide Variety:
Tedious, repetitive tasks can cause burn out and boredom over time. If the
job requires repetitive tasks, look for ways to introduce variety by
rotating duties, areas of responsibility, delivery of service etc.

Conduct periodic meetings with employees to communicate good news,

challenges and easy-to-understand company financial information.
Managers and supervisors should be comfortable communicating with
their staff, and able to give and receive constructive feedback. Indulge in
employee deployment if he feels he is not on the right job. Provide an
open environment.

8
 Communicate openly and clearly about what's expected of employees at
every level - your vision, priorities, success measures, etc. Get to know
employees' interests, goals, stressors, etc. Show an interest in their well-
being and do what it takes enable them to feel more fulfilled and better
balanced in work and life. Celebrate individual, team and organizational
successes.

Catch employees doing something right, and say "Thank you." Be

consistent in your support for engagement initiatives. If you start one and
then drop it, your efforts may backfire. There's a strong connection
between employees commitment to an initiative and management's
commitment to supporting it.

9
INTRODUCTION

10
 INTRODUCTION

In these changing times both the employee & employer are under tremendous
pressure to perform. There is fierce competition not only in the industry but also
across categories. This new liberalized cutting edge technology driven
environment has made Performance Appraisal mind-boggling. The fast pacing
change across the globe has made the new employee & employer relationship
irreversible.

DEFINITION:

An effective Performance Appraisal Program is a systematic effort to create and

foster an environment that encourages employees to remain employed by
having policies and practices in place that address their diverse needs.

FRAMEWORK OF PERFORMANCE APPRAISAL

The entire process of keeping talent is built on a framework consisting of three

heads:

The present times have seen a radical change in the style of work. The
basic value system of an individual has changed. In this competitive
environment the corporate body must reassert itself. The very entity
called corporation is to be explicitly understood. The organizational
approach to staffing, its ethics policy, and compensation package.

11
 Fringe benefits even the pathos of the organization can be turned towards
its advantage. The manner in which a corporation portrays its image is the
beginning of the talent keeping process. The employee was once treated
merely as an asset, but today he is treated as family as a unique
individual. His aspirations, goals, ambitions, are all given pivotal
importance. This is the new employee arrangement that governs the
market of today.

This is the very ground on which both the employee & organization meet.
Sound understanding of market structure, the emergence of
intermediaries, their economic implications, the government policy. This
defines the very environment in which the organization functions.

FACTORS CAUSING EMPLOYEE TURN OVER

12
 IMPORTANCE OF PERFORMANCE APPRAISAL

Engagement is so important. It just to reduce the turnover costs. Its not only the
cost incurred by a company that emphasizes the need of retaining employees but
also the need to retain talented employees from getting poached. The process of
Performance Appraisal will benefit an organization in the following ways:

The Cost of Turnover: The cost of employee turnover adds hundreds of

thousands of money to a company's expenses. While it is difficult to fully
calculate the cost of turnover (including hiring costs, training costs and
productivity loss), industry experts often quote 25% of the average
employee salary as conservative estimate.

Loss of Company Knowledge: When an employee leaves, he takes with

him valuable knowledge about the company, customers, current projects
and past history (sometimes to competitors). Often much time and money
has been spent on the employee in expectation of a future return. When
the employee leaves, the investment is not realized.

Turnover leads to more turnovers: When an employee terminates, the

effect is felt throughout the organization. Co-workers are often required
to pick up the slack. The unspoken negativity often intensifies for the
remaining staff.

Goodwill of the company: The goodwill of a company is maintained

when the attrition rates are low. Higher engagement rates motivate
potential employees to join the organization.

Regaining efficiency: If an employee resigns, then good amount of time

is lost in hiring a new employee and then training him/her and this goes to
the loss of the company directly which many a times goes unnoticed.

13
 MANAGERS ROLE IN ENGAGEMENT

When asked about why employees leave, low salary comes out to be a common
excuse. However, research has shown that people join companies, but leave
because of what their managers do or dont do. It is seen that managers who
respect and value employees competency, pay attention to their aspirations,
assure challenging work, value the quality of work life and provided chances for
learning have loyal and engaged employees.

Therefore, managers and team leaders play an active and vital role in
Performance Appraisal.

Managers and team leaders can reduce the attrition levels considerably by
creating a motivating team culture and improving the relationships with team
members. This can be done in a following way:

Creating a Motivating Environment

Standing up for the Team
Providing coaching
Delegation: Extra Responsibility
Focus on future career

14
 TO INCREASE PERFORMANCE APPRAISAL

Companies have now realized the importance of retaining their quality

workforce. Retaining quality performers contributes to productivity of the
organization and increases morale among employees.
Four basic factors that play an important role in increasing Performance
Appraisal include salary and remuneration, providing recognition, benefits and
opportunities for individual growth.

Performance Appraisal can be increase by inculcating the following practices:

Open Communication
Employee Reward Program
Career Development Program
Performance Based Bonus
Recreation facilities
Gifts at Some Occasions

The history of performance appraisal is quite brief. Its roots in the early 20th
century can be traced to Taylor's pioneering Time and Motion studies. But this
is not very helpful, for the same may be said about almost everything in the
field of modern human resources management.

15
As a distinct and formal management procedure used in the evaluation of work
performance, appraisal really dates from the time of the Second World War -
not more than 60 years ago.

Yet in a broader sense, the practice of appraisal is a very ancient art. In the scale
of things historical, it might well lay claim to being the world's second oldest
profession!

There is, says Dulwich (1989), "A basic human tendency to make
judgements about those one is working with, as well as about oneself."
Appraisal, it seems, is both inevitable and universal. In the absence of a
carefully structured system of appraisal, people will tend to judge the work
performance of others, including subordinates, naturally, informally and
arbitrarily. The human inclination to judge can create serious motivational,
ethical and legal problems in the workplace. Without a structured appraisal
system, there is little chance of ensuring that the judgements made will be
lawful, fair, defensible and accurate.

Performance appraisal systems began as simple methods of income justification.

That is, appraisal was used to decide whether or not the salary or wage of an
individual employee was justified. The process was firmly linked to material
outcomes. If an employee's performance was found to be less than ideal, a cut in
pay would follow. On the other hand, if their performance was better than the
supervisor expected, a pay rise was in order.

Little consideration, if any, was given to the developmental possibilities of

appraisal. If was felt that a cut in pay, or a rise, should provide the only required
impetus for an employee to either improve or continue to perform well.
Sometimes this basic system succeeded in getting the results that were intended;
but more often than not, it failed. For example, early motivational researchers
were aware that different people with roughly equal work abilities could be paid
the same amount of money and yet have quite different levels of motivation and
performance.

These observations were confirmed in empirical studies. Pay rates were

important, yes; but they were not the only element that had an impact on
employee performance. It was found that other issues, such as morale and self-
esteem, could also have a major influence.

16
As a result, the traditional emphasis on reward outcomes was progressively
rejected. In the 1950s in the United States, the potential usefulness of appraisal
as tool for motivation and development was gradually recognized. The general
model of performance appraisal, as it is known today, began from that time.

Modern Appraisal

Performance appraisal may be defined as a structured formal interaction

between a subordinate and supervisor, that usually takes the form of a periodic
interview (annual or semi-annual), in which the work performance of the
subordinate is examined and discussed, with a view to identifying weaknesses
and strengths as well as opportunities for improvement and skills development.
In many organizations - but not all - appraisal results are used, either directly or
indirectly, to help determine reward outcomes. That is, the appraisal results are
used to identify the better performing employees who should get the majority of
available merit pay increases, bonuses, and promotions. By the same token,
appraisal results are used to identify the poorer performers who may require
some form of counselling, or in extreme cases, demotion, dismissal or decreases
in pay. (Organizations need to be aware of laws in their country that might
restrict their capacity to dismiss employees or decrease pay.) Whether this is an
appropriate use of performance appraisal - the assignment and justification of
rewards and penalties - is a very uncertain and contentious matter. New issues
in management stir up more controversy than performance appraisal. There are
many reputable sources - researchers, management commentators, - who have
expressed doubts about the validity and reliability of the performance appraisal
process. Some have even suggested that the process is so inherently flawed that
it may be impossible to perfect it (see Derven, 1990, for example). At the other
extreme, there are many strong advocates of performance appraisal. Some view
it as potentially "... the most crucial aspect of organizational life" (Lawrie,
1990).

Between these two extremes lie various schools of belief. While all endorse the
use of performance appraisal, there are many different opinions on how and
when to apply it. There are those, for instance, who believe that performance
appraisal has many important employee development uses, but scorn any
attempt to link the process to reward outcomes - such as pay rises and
promotions. This group believes that the linkage to reward outcomes reduces or
eliminates the developmental value of appraisals. Rather than an opportunity for

17
constructive review and encouragement, the reward-linked process is perceived
as judgmental, punitive and harrowing.

For example, how many people would gladly admit their work problems if, at
the same time, they knew that their next pay rise or a much-wanted promotion
was riding on an appraisal result?

Very likely, in that situation, many people would deny or downplay their
weaknesses. Nor is the desire to distort or deny the truth confined to the person
being appraised. Many appraisers feel uncomfortable with the combined role of
judge and executioner. Such reluctance is not difficult to understand. Appraisers
often know their appraisals well, and are typically in a direct subordinate-
supervisor relationship. They work together on a daily basis and may, at times,
mix socially. Suggesting that a subordinate needs to brush up on certain work
skills is one thing; giving an appraisal result that has the direct effect of
negating a promotion is another. The result can be resentment and serious
morale damage, leading to workplace disruption, soured relationships and
productivity declines.

On the other hand, there is a strong rival argument which claims that
performance appraisal must unequivocally be linked to reward outcomes. The
advocates of this approach say that organizations must have a process by which
rewards - which are not an unlimited resource - may be openly and fairly
distributed to those most deserving on the basis of merit, effort and results.
There is a critical need for remunerative justice in organizations. Performance
appraisal - whatever its practical flaws - is the only process available to help
achieve fair, decent and consistent reward outcomes. It has also been claimed
that appraises themselves are inclined to believe that appraisal results should be
linked directly to reward outcomes - and are suspicious and disappointed when
told this is not the case. Rather than feeling relieved, appraises may suspect that
they are not being told the whole truth, or that the appraisal process is a sham
and waste of time. Research (Bannister & Balkin, 1990) has reported that
appraises seem to have greater acceptance of the appraisal process, and feel
more satisfied with it, when the process is directly linked to rewards. Such
findings are a serious challenge to those who feel that appraisal results and
reward outcomes must be strictly isolated from each other.

There is also a group who argues that the evaluation of employees for reward
purposes, and frank communication with them about their performance, are part

18
of the basic responsibilities of management. The practice of not discussing
reward issues while appraising performance is, say critics, based on inconsistent
and muddled ideas of motivation. In many organizations, this inconsistency is
aggravated by the practice of having separate wage and salary reviews, in which
merit raises and bonuses are decided arbitrarily, and often secretly, by
supervisors and managers.

There are many more possibilities of sustaining HRs increasing role as not only
growth catalyst but sustaining business through greater Performance Appraisal.
Therefore, HR professionals needs to tighten their belts and get ready for some
challenging yet meaningful activities which will help to change the perception
of HR forever. The economic crisis is forcing to separate some employee and
there is no way around. No problem! Do it, but avoid creating a panic around, in
employees, in investors, in market and in country by crying loud.

HRs task is also great, if the HR manager creates conducive environment

through his professional approach in achieving productivity of course, with the
support of all teams which is the need of the hour. Business has experienced
different dynamics that pose many challenges. HR and enforcement authorities
together strive for achieving the common goals like compliance and adherence.
HR makes all efforts to create and sustain an employer and employee friendly
atmosphere and responding to the current needs and challenges.

HRs Responsibility

In todays economic meltdown where job cuts, loss, pay reduction, last come
first go, insecurity of employment atmosphere prevail, HR has special
responsibility to create ease environment to the affected by counselling,
displaying care and concern, preparing them for multi skill task, engaging and
deploying in other required areas of functions like security, crisis management
team, etc. HR should engage in more positive side, making and helping
employees to reform, perform and transform which will ultimately make a solid
impact on business. This will display the great and real engagement of Human
Resource Management.

Human Resource Management must be able to address the right kind of

demands related to Human Resource functions during the. Human Resource
Management must play a highly proactive role in managing the issues of global
by helping organization to enhance their abilities to learn and collaborates,
manage diversity, ambiguity and complexity. Human Resource Management is
19
responsible to manage the human resource of the corporate to maximize the
productivity, efficiency at minimal cost and maximize profit. During this global,
Human Resource Management is facing the many challenges and changes in
organizational level, workplace and HR department level itself. The challenges
can be faced by HR Managers effectively if proper strategies are implemented.
This is the temporary economic climate of the business world. It will be
changed through more productivity at minimal cost and maximize profit at
moderate price of products in business.

The competition for critical talent continues to intensify and many companies
are re-evaluating their global talent management practices. As business
objectives continue to focus on growth in emerging and other non-traditional
markets and companies search globally for new workforces, the global mobility
function has become a critical tool to develop and deploy key talent. The
organizations that master global talent mobility will dominate markets in the
21st century. In response to this imperative, the global mobility function must
redefine itself from a transaction-based employee service provider to a strategic
and innovative business partner.

Finding and nurturing the right people is the most critical HR challenge both for
fast-growing companies in rapidly developing countries and market leaders in
established economies, according to a new survey to be unveiled at the World
HR Congress in London this month. Conducted by the Boston Consulting
Group (BCG) in co-operation with the World Federation of Personnel
Management Associations, the study of more than 4,700 executives in 83
countries shows that managing talent is at or near the top of the agenda in
every region and every industry.

This issue ranked as the most important HR topic in nine of 17 countries

analysed in depth generally the largest economies in seven different regions
around the world, including the United States, Australia, Singapore, Japan and
the United Kingdom, and was one of the top three topics in 14 of these
countries. Executives from Latin America and the emerging markets in Asia
claimed they expect their companies to move businesses to new locations to
find talent, which, say BCG, is a reflection of more globalisation and
competition. The survey follows on from a Europe-only study of 27 countries
conducted last year in association with the European Association for Personnel
Management (see article by Michael Leicht et al in WorldLink, July 2007). The
final report, Creating people advantage: how to address HR challenges
20
worldwide through 2015, incorporates the findings from an additional 56
countries and provides detailed analysis of the most important HR issues in the
17 focus countries and a quick overview of HR conditions in 29 other nations.
It also develops profiles of key HR priorities for seven regions. The survey was
complemented by over 200 interviews with senior executives.

The three most important HR challenges to emerge from the survey were
managing talent, improving leadership development and managing work-life
balance. Interviews with executives uncovered a strong connection between
these three topics, which the report categorises as developing and retaining the
best employees. Executives in Argentina and Chile, Brazil, Canada, India and
Japan all said that managing work-life balance would be one of their key future
HR challenges. About three quarters of Canadian executives said that they
expect their companies to offer both flexible and part-time working by 2015,
while India, which has a young workforce, is focused on managing work-life
balance for its young professionals, who have many career options. Many
executives expected their companies to respond by offering sabbaticals and
teleporting options. Another key strategic category, defined as Anticipating
change, encompasses managing demographics the fourth most important
HR challenge, plus managing change and cultural transformation and
managing globalisation.

In North America, and many European countries, say BCG, companies are
trying to prepare for the loss of productivity, capacity and knowledge as
employees age and retire. In North America and the Pacific region executives
expect semi-retired and retired employees to close the capacity gap.

One of the surprising findings of the survey, according to BCG, is that

executives in Japan and China do not recognise that their countries will face a
major challenge in replacing retiring employees. Japan is already feeling the
effects of an aging workforce, while Chinas day of reckoning, a direct
consequence of the one-child policy implemented in 1979, is still in the future.

Improving leadership development is critical in China and India, where

companies often lack skilled and experienced leaders to match their
ambitious growth plans;
Corporate social responsibility ranks as a top issue in Russia, where
companies acquiring assets in Western Europe are using it to reduce
skepticism about their motives and create goodwill;

21
 Becoming a learning organization is one of the top four issues in
Germany, Japan, South Korea and Spain, all countries facing competition
from challengers in rapidly developing economies that are moving into
their key markets;
Managing globalization is the most critical future HR challenge in South
Korea, where the countrys economy is increasingly buoyed by export-led
growth.
As with the earlier Indian study, one of the key findings of the survey is
that non-HR executives are much more likely to approve of the
performance of their HR department if they are able to demonstrate
mastery of basic, traditional HR processes and activities, restructuring the
organization and not least recruiting and staffing.

22
INTRODUCTION
TO
COMPANY

23
 INTRODUCTION TO THE COMPANY

The Lakhani Armaan footwear Group was India's and our brand, Lakhani
Armaan footwear, is well recognized across the country. Our Detergents
business is only a couple of years young & has a competitive regional position
(Lakhani Armaan footwear Detergent). Our flagship brand, Lakhani Armaan
footwear, is a market leader in its operating segment. Lakhani Armaan footwear
also has the distinction of being one of the largest volume producers in the
country. We are a partnering MNCs like Reebok New Balance and Converse in
there outsourcing programs. We also have a small but growing export business.
In 2006, the family operations were restructured to enable further growth and
diversification. The PD Lakhani Armaan footwear-led portion of the Group has
been branded as the Lakhani Armaan footwear.

The Lakhani Armaan Footwear has approx. 3000 employees. The corporate is
new yet with 40+ years of experience. Lakhani Armaan Footwear is currently
diversifying into Medical devices, Apparel, Auto components, Food/Healthcare
technologies & Retail.

LAKHANI ARMAAN GROUP-CORPORATE PHILOSOPHY

At Lakhani Armaan, our vision is to build brands respected not only in

India but also globally and thereby creating a diversified business focused
on delivering customer value

To us, our employees, customers, vendors, shareholders are the stakeholders

and our companies are their wealth. We shall safe guard their interests. We
believe that fast and sustainable growth can only come if systems are in place
and the management of our businesses is in the hands of professional experts
who will work as team.

Lakhani Armaan footwear Vardaan shall be a socially responsible Group.

Besides investment in our businesses, we shall allocate funds for community
development.

Our aspirations and commitments can take shape only through profitable
business activity.

24
 DOING BUSINESS AT LA GROUP

Quality is a key focus area for global competitiveness. We have already

implemented ISO-9001:2000 at our locations and are in the process of working
towards qualification for ISO-14001 certification. A corporate wide initiative
of TQM has been launched to streamline productivity of our manufacturing
processes. We take very seriously building the capacity of the organization for
competing in todays world. Hence we are rapidly moving towards building
strong a strong R&D capability with continuous investments in existing
businesses. We are also planning for in-design capability in footwear & apparel.
In order to meet expectations of our global customers we are deploying IT for
improved productivity & customer service in all our locations and hence we are
networking of all locations. We are also in the process of implementing basic
ERP for the Group.

GROUP COMPANIES

Lakhani Armaan footwear Group Companies has been consistently meeting the
needs of individuals and businesses.

Lakhani Armaan footwear Group Companies develops its products in response

to the needs of customers and changing market conditions. Our business
development team works closely with our producers to quickly define and
deliver new and enhanced products to meet the changing needs of customers.
Our business model is unique: we expand the capability of our traditional
company, to provide additional financial capacity and market resources to
deliver a broad range of products and services.

Our Group Companies:-

1. Lakhani Armaan footwear India Limited
2. Lakhani Armaan footwear Rubber Udyog Pvt. Ltd
3. Lakhani Armaan footwear Foot care Pvt. Ltd
4. Laksons Footwear Pvt Ltd:-
Footwear is our core business activity. Our flagship company Lakhani
Armaan footwear India Limited is a market leader in its segments with an
approx. turnover of Rs.130 cr. In addition there are several other Group
companies engaged in Footwear.

25
5. Lakhani Armaan footwear Detergents & Soaps Pvt. Ltd:-
Detergents is an ongoing business of the Group with an approx. turnover of
approx. Rs.35-40 cr. Lakhani Armaan footwear Detergents & Soaps (LDS)
started just 2 years back on a very modest scale, it has developed today into
a competitive regional brand.
6. Lakhani Armaan footwear Apparel P Ltd:-
The Lakhani Armaan footwear Apparel Pvt. Ltd (LAP) division is a 100%
EOU set up to manufacture garments for export markets.
7. Lakhani Armaan footwear Medicare P Ltd:-
Lakhani Armaan footwear Medicare Pvt. Ltd.(L-Med) is a multifunctional
entity being set up to manufacture medical disposable products with a
driving cause of helping the society by providing them high tech medical
devices of reliably good consistent quality at competitive prices.

Footwear is our core business activity. Our flagship company Lakhani Armaan
footwear India Limited is a market leader in its segments with an approx.
turnover of Rs130 cr. In addition there are several other Group companies
engaged in Footwear. Our factories are located in Faridabad, Indore and
Hardwar. Manufacturing facilities based in Faridabad being upgraded and new
capacity is being added which will significantly add to the turnover of the
Group from FY 2007-08.

The Business is managed by team of professionals under leadership of Mr. PD

Lakhani Armaan footwear and the current manpower is approx. 3000 people.

At Lakhani Armaan footwears exciting new developments are planned. To start

with the Group is gearing up to launch a brand new product range of innovative
and attractive new designs.

Customer Value has always been a driving force for the Group. Hence all our
products are attractively priced and packaged. In addition we are
continuously upgrading all our customer service facilities.

Our objective is to build respected brands, both in India and in due course
globally.

26
 FOOTWEAR PRODUCTS MIX

PRESENT RANGE
Hawaii
EVA Inj.= Breezer
Soldier
School Shoes
Tennis
Comfort
Belly's
Airmax Inj.

NEW PRODUCTS
PV Inj
Sports shoes-Full EVA sole
Sports shoes-die-cut
Sports shoes-pylon
PVC/Airmax pasting
Leather shoes

27
 ORGANISATION STRUCTURE

GALLUP RESEARCH

The Gallup study is based on positive Psychology and emotions. Having a best
friend at work or receiving recognition every week makes one feel cared for and
proud respectively. If one wants to keep recreating those positive emotions, then
one should keep coming back to work. Borden-and Build theory is about
evolutionary significance of positive emotions which are better observed over
the long haul. Their effects accumulate and compound overtime and the
adaptive benefits are evident from later, when people face new challenges. The
Gallup research has contributed an additional P to the 4Ps of marketing i.e.
product, price, and promotion place and now people to the mix.

The Gallup defines a great workplace as one where employees were satisfied
with their jobs which help produce positive business outcomes.

28
LITERATURE REVIEW

29
 PERFORMANCE APPRAISAL

Performance Appraisal is a process in which the employees are encouraged to

remain with the organization for the maximum period of time or until the
completion of the project. Performance Appraisal is beneficial for the
organization as well as the employee. Employees today are different. They are
not the ones who dont have good opportunities in hand. As soon as they feel
dissatisfied with the current employer or the job, they switch over to the next
job. It is the responsibility of the employer to retain their best employees. If they
dont, they would be left with no good employees. A good employer should
know how to attract and retain its employees. Engagement involves five major
things:

Compensation

Compensation constitutes the largest part of the Performance Appraisal process.

The employees always have high expectations regarding their compensation
packages. Compensation packages vary from industry to industry. So an
attractive compensation package plays a critical role in retaining the employees.

Compensation includes salary and wages, bonuses, benefits, prerequisites, stock

options, bonuses, vacations, etc. While setting up the packages, the following
components should be kept in mind:

Salary and monthly wage: It is the biggest component of the compensation

package. It is also the most common factor of comparison among employees. It
includes:

Basic wage
House rent allowance
Dearness allowance
City compensatory allowance

30
Salary and wages represent the level of skill and experience an individual has.
Time to time increase in the salaries and wages of employees should be done.
And this increase should be based on the employees performance and his
contribution to the organization.

o Bonus: Bonuses are usually given to the employees at the end of the year
or on a festival.
o Economic benefits: It includes paid holidays, leave travel concession,
etc.
o Long-term incentives: Long term incentives include stock options or
stock grants. These incentives help retain employees in the organization's
startup stage.
o Health insurance: Health insurance is a great benefit to the employees. It
saves employees money as well as gives them a peace of mind that they
have somebody to take care of them in bad times. It also shows the
employee that the organization cares about the employee and its family.
o After retirement: It includes payments that an Employee gets after he
retires like EPF (Employee Provident Fund) etc.
o Miscellaneous compensation: It may include employee assistance
programs (like psychological counseling, legal assistance etc), discounts
on company products, use of a company cars, etc.

Growth and Career

Growth and development are the integral part of every individuals career. If an
employee can not foresee his path of career development in his current
organization, there are chances that hell leave the organization as soon as he
gets an opportunity. The important factors in employee growth that an employee
looks for himself are:

31
 Work profile: The work profile on which the employee is working should
be in sync with his capabilities. The profile should not be too low or too
high.
Personal growth and dreams: Employees responsibilities in the
organization should help him achieve his personal goals also.
Organizations cannot keep aside the individual goals of employees and
foster organizations goals. Employees priority is to work for them and
later on comes the organization. If hes not satisfied with his growth, hell
not be able to contribute in organization growth.
Training and development: Employees should be trained and given
chance to improve and enhance their skills. Many employers fear that if
the employees are well rained, theyll leave the organization for better
jobs. Organization should not limit the resources on which organizations
success depends. These trainings can be given to improve many skills
like:
Communications skills
Technical skills
In-house processes and procedures improvement related skills
C or customer satisfaction related skills
Special project related skills

The need for trainings can be recognized from individual performance reviews,
individual meetings, employee satisfaction surveys and by being in constant
touch with the employees. Lack of support from management can sometimes
serve as a reason for Performance Appraisal.

Supervisor should support his subordinates in a way so that each one of them is
a success.

Management should try to focus on its employees and support them not only in
their difficult times at work but also through the times of personal crisis.
Management can support employees by providing them recognition and
appreciation. Employers can also provide valuable feedback to employees and
make them feel valued to the organization.

The feedback from supervisor helps the employee to feel more responsible,
confident and empowered.

Top management can also support its employees in their personal crisis by
providing personal loans during emergencies, childcare services, employee
assistance programs, counselling services. Employers can also support their
employees by creating an environment of trust and inculcating the

32
organizational values into employees. Thus employers can support their
employees in a number of ways as follows:

By providing feedback
By giving recognition and rewards
By counseling them
By providing emotional support

Intermediaries:

In their attempt to increase their market share, credit card companies are opting
for Direct Sales Agents.

These DSA are paid a flat rate against the approved applications. They are also
provided with bonuses either in cash or in kind at regular interval or if they
cross a certain minimum limit.

The DSA team comprises aggressive salesmen who visit different organisations
and professionals. They collect filled forms and produce them to the bank for
approval. After cards are issued they also deliver the same to the individuals.

Promotion:

The changing trends in the payment systems are global and even in India
revolve around the change in customer needs and the evolution of financial
markets. Traditionally Indians like to pay in cash or at the most avail the
services of a bank. As a result credit card companies had to educate the
consumers and spread awareness of the uses of its products. The companies
have tried to address this issue through promotional campaigns:

Placing of take away firms of credit card at more than a thousand

merchant establishments.
Appointing of DSA.
Using business magazines and news papers for advertisement.
Mailing of forms along with contests to professionals and middle
management executives etc.
Tapping the get member route.
Reducing their minimum eligibility criteria and changing income
documentation structure.
Introduction of photo cards.
Tying up with durable consumer goods manufacturer (e.g. Onida, Philips)
to sell their products.

33
 Providing ATM facility to their card holders.
Travel assistance via telephone-banking.
Comparative Position of Foreign Banks in India for year 2000

DEU AME
HSBC CITI STAN ABN BNP BOA ANZG
B X

Income 12476 18778 11965 7302 2622 6609 8715 14630 4450

Net Profit 1215 2513 1853 1188 215 511 1528 1801 277

Net Worth 8373 9915 7170 5760 1973 5432 6867 11323 2579

Deposits 87547 102032 50060 34229 10601 21673 25117 84777 14183

Advances 43023 66201 43188 38964 6751 17621 36574 42334 8919

Investments 49185 42300 31400 27171 10577 20992 13013 48862 12266

Spread (%) 3.1 4.7 4.8 3.9 2.7 4.8 3.6 3.8 3.6

NPAs / Net
5.3 7 12.2 2 0.3 17.2 10 0.1 14.9
worth (%)

RONW (%) 14.51 25.35 25.84 20.63 10.90 9.41 22.25 15.91 10.74

CAR (%) 10.3 10.5 9.5 10.1 9.5 10.4 12.9 10.9 10.1

Another view:

That is a satisfied worker is not necessarily a productive worker explains the

relationship between Performance Appraisal and productivity. Various research
studies also support this view. This relationship may be explained in terms of
the operation of two factors: effect of job performance on satisfaction and
organizational expectations from individuals for job performance.

Job performance leads to job satisfaction and not the other way round. The basic
factor for this phenomenon is the rewards (a source of satisfaction) attached
with performance.

34
There are two types of rewards-

Intrinsic
The intrinsic reward stems from the job itself which may be in the form
of growth potential, challenging job, etc. The satisfaction on such a type
of reward may help to increase productivity.
Extrinsic
The extrinsic reward is subject to control by management such as salary,
bonus, etc. Any increase in these factors does not help to increase
productivity though these factors increase Performance Appraisal.
A happy worker does not necessarily contribute to higher productivity
because he has to operate under certain technological constraints and,
therefore, he cannot go beyond certain output.
Further, this constraint affects the managements expectations from the
individual in the form of lower output. Thus, the work situation is pegged
to minimally acceptable level of performance.

However, it does not mean that the Performance Appraisal has no impact o
productivity. A satisfied worker may not necessarily lead to increased
productivity but an unsatisfied worker leads to lower productivity.

35
 CATEGORIES OF PERFORMANCE APPRAISAL

According to the Gallup there are different types of people,

Engaged:

They want to meet and exceed desired expectations.

Keen to know about the company and their place in it.
Perform at consistently high levels using their strengths at work every
day.
Work with passion, drive innovation and move their organization
forward.

Not Engaged:

Concentrate on tasks rather than the goals and outcomes.

Tend to feel their contributions are being overlooked, and their potential
is not being tapped.
They often feel this way because they dont have productive relationship
with their managers or with their co-workers.

Actively Disengaged:

Cave dwellers. Consistently against Virtually Everything.

Theyre not just unhappy at work; theyre busy acting out their
unhappiness.
Sow seeds of negativity at every opportunity. Every day, actively
disengaged workers undetermined what their engaged co-worker
accomplish.
As worker increasingly rely on each other to generate product and
services, the problems and tensions that are fostered by actively
disengaged workers can cause great damage to an organizations
functioning.

36
 ASPECTS OF PERFORMANCE APPRAISAL

Employees and their own psychological makeup and experience.

Employers and their ability to create conditions that promote engagement.
Interaction between employees at all level.
Thus it is organizations responsibility to create environment and culture
that is conducive to this partnership and win-win equation.

FACTORS LEADING TO PERFORMANCE APPRAISAL

Career Development Opportunities to develop their skills and realize their

potential.
Leadership.
Clarity in core values of company.
Respectful treatment of employees.
Empowerment, involvement in decision-making.
Image-Perception about quality of the companys product and willingness
to endorse.
Equal opportunities and fair treatment.
Pay and benefits
Health and safety.
Job-satisfaction whether job matches career goals which makes work
enjoyable.
Open Communication
Friendliness culture and cooperation.
The strong driver is the feeling of being valued.

37
 EFFECT OF PERFORMANCE APPRAISAL

Performance Appraisal has a variety of effects. These effects may be seen in the
context of an individuals physical and mental health, productivity, absenteeism,
and turnover.

Physical and Mental Health:

The degree of Performance Appraisal affects an individuals physical and

mental health. Since Performance Appraisal is a type of mental feeling, its
favourableness or unfavourableness affects the individual psychologically
which ultimately affects his physical health. For example,

Lawler has pointed out that drug abuse, alcoholism and mental and physical
health result from psychologically harmful jobs. Further, since a job is an
important part of life, Performance Appraisal influences general life
satisfaction. The result is that there is spill over effect which occurs in both
directions between job and life satisfaction.

Productivity:

There are two views about the relationship between Performance Appraisal and
productivity:

A happy worker is a productive worker.

A happy worker is not necessarily a productive worker. The first view
establishes a direct cause-effect relationship between Performance
Appraisal and productivity; when Performance Appraisal increases,
productivity increases; when satisfaction decreases, productivity
decreases. The basic logic behind this is that a happy worker will put
more efforts for job performance. However, this may not be true in all
cases.

For example, a worker having low expectations from his jobs may feel satisfied
but he may not put his efforts more vigorously because of his low expectations
from the job. Therefore, this view does not explain fully the complex
relationship between Performance Appraisal and productivity.

Absenteeism:

Absenteeism refers to the frequency of absence of job holder from the

workplace either unexcused absence due to some avoidable reasons or long
absence due to some unavoidable reasons. It is the former type of absence
38
which is a matter of concern. This absence is due to lack of satisfaction from the
job which produces a lack of will to work and alienate a worker form work as
for as possible. Thus, job satisfaction is related to absenteeism.

Employee turnover:

Turnover of employees is the rate at which employees leave the organization

within a given period of time. When an individual feels dissatisfaction in the
organization, he tries to overcome this through the various ways of defense
mechanism. If he is not able to do so, he opts to leave the organization. Thus, in
general case, employee turnover is related to Performance Appraisal. However,
Performance Appraisal is not the only cause of employee turnover, the other
cause being better opportunity elsewhere.

For example, in the present context, the rate of turnover of computer software
professionals is very high in India. However, these professionals leave their
organizations not simply because they are not satisfied but because of the
opportunities offered from other sources particularly from foreign companies
located abroad.

The credit card industry in India has registered an encouraging growth in recent
times, but the usage pattern of credit cards remains a point of concern, those in
the industry say. Seven years back, India had a base of around five lakh credit
cards. There has been a seven-fold increase, with the number of cardholders
touching over 38 lakh. These figures point towards the fact that the credit card
industry in India is growing at a brisk annual rate of 30% and is expected to
grow at a similar rate in the coming years. This fortifies the view that
conservative purchasing ideas are giving way to the big in-thing. But it is the
usability that raises doubts.

According to a survey by the Credit Card & Management Consultancy

(CCMC), 71% of first time credit card applicants in the country have expressed
the need for advice on appropriate card selection despite the plethora of cards
available in the market. Through this survey it has come to realise a long felt
need of potential and existing cardholders for advice on suitable selection of a
credit cards. The whole idea behind the introduction of the credit cards was to
increase the purchasing capacity of the cardholder. With this in mind, the
foreign banks launched a credit card d blitzkrieg on the Indian customer. The
innovations have already begun to show their effect. The Standard Chartered

39
Bank has seen its credit card base shoot up after the launch of its Global Rupee
Card in March last year.

It has seen the fresh issuance of global card increase by more than one lakh, and
the bank now has a base of more than half a billion. But the real challenge for
the banks is to make the holder spend more on the card. Going by estimates,
India has a long way to be anywhere nears the matured markets. The markets
like the United States and England have an average annual card spend of 1,300
and 3,600 dollars respectively.

The credit card players will have to think about simplifying the foreign
exchange transactions. When one uses the card, it is entirely his responsibility to
make sure that exchange controls have been complied with. The banks that
issue the cards, have made it abundantly clear that one has to look out for
himself. It is up to him to find out the facts of regulatory life. The real point of
worry is the spending on the credit cards. According to estimates, the average
card spending in India is even less than that in Indonesia. Those in the credit
card business say that per capita credit card spending in India is about five
hundred dollars (Rs.21,500), whereas in Indonesia, it is about 678 dollars
(Rs.29,154). At present there are over a dozen players in the credit card market
in India, and the fact is the foreign banks are clearly the leaders. The leaders
will surely be identified by the innovations for the card users.

But the alarm has been raised for the banks by the figures that show that while
the average usage in Malaysia is 27 times annually, in India it is only 11 times.
Some of the key factors impacting the cards business in India are limited credit,
wide geographical spread, limited telecommunication infrastructure and
emerging regulatory controls. The other players feel that the card acceptance
base in India has to be widened. Suggestions include credit card usage at petrol
pumps and railway bookings.

They also point out that though the cards business has been in the country for
long, but even today the insurance premium cannot be paid by card. Though
LIC is talking about the introduction of this facility to customers, but its turning
into reality may take time. There is talk of widening the card business with new
features, but the present scenario does not paint a positive picture, with many
loopholes remaining to be plugged.

Of the twenty million tax payers in India, more than ten per cent of them are
cardholders. Those in the industry point out that this figure is not bad,
40
considering the fact that, the cards business is still in its initial stages. However,
the players feel that the business has not reached an optimum level to say that
they are making money. Even the largest player in the Indian market does not
still have the economies to make the card business really profitable in India,
despite the fact that it has more than one million credit card holders. Less than
two per cent of private consumption spending in India is done on cards.

While issuing the cards may seem to be easy, the challenge for the banks lies in
being able to manage their portfolios by keeping the delinquency levels at the
lowest. Huge investments in systems and infrastructure are, therefore, a
necessity. The increase is being attributed to new ideas such as round-the-clock
functioning of card issuing banks and pulling out all stops even at a loss, to grab
a sizeable share of the expanding pie. Not to be left behind in this race, even the
big brother, the State Bank of India in association with GE Capital entered the
card business.

The spurt in the card business has gathered momentum during the past couple of
years. For instance, the Hong Kong & Shanghai Banking Corporation (HSBC),
was in the credit cards business since seven years, but from 50,000 card holders
in 1997, it has about three lakh card holders now.

Indias fastest growing credit Card Company - SBI Cards 2.5 lakh credit
cards25 cities16 months. The joint venture between Indias largest bank
State Bank of India and one of the worlds leading financial services companies
GE Capital, SBI Cards & Payment Services (SBI Cards) has issued 2.5 lakh
credit cards across 25 cities (the largest distribution network in the payment
card industry) within 16 months.

SBI Cards & Payments Services attributed this success to SBIs enormous
brand equity, and unparalleled retail branch network coupled with GE Capitals
payment card process and technology expertise. He also highlighted Speed,
Simplicity and Service as the key drivers of growth for the SBI Card. Speed
Unique and exclusive 14-day average turnaround time, coupled with availability
of the SBI Card in 25 cities in just 16 months. As a result of the focus on the
Speed, Simplicity and Service growth platform, SBI Cards today offers the
largest distribution and widest cash advance network for Indias middle class
customers. SBI Cardholders can access cash for emergency purposes from over
158 SBI branches across 68 locations in India.

41
OBJECTIVES

42
 RESEARCH OBJECTIVE

To study the various factor which influence in corporate culture of the Lakhani
Armaan footwear
To study how company can retain its employee in longer time period.
To study the Performance Appraisal initiative taken by the organization.

43
RESEARCH METHODOLOGY

44
Sampling Design

The technique of random sampling will be used in analysis of the data. Random sampling
gives each possible sample combination an equal probability of being picked up an each item
in the entire population to have an equal chance of being included in the sample.

Research Design

This research has been done on the primary and secondary data analysis.

Data Collection

Primary data
Primary data are the data which we collect as fresh data for the first time. The data
collected by interviewing the workers from different departments by preparing a
structured questionnaire on the topic.
Secondary data
Any data which have been collected earlier for some other purposes are secondary
data in the hand of the researchers. Secondary data is collected from previous
researchers. It could be through:
Text books
Articles
Journals
Websites

Tools Used

Tools to be used are:

Questionnaires
Pie charts

45
 ANALYSIS OF THE PROBLEM UNDER THE STUDY

Now that so much is being done by organizations to retain its employees, why is engagement
so important? Is it just to reduce the turnover costs?

Well, the answer is a definite no. Its not only the cost incurred by a company that
emphasizes the need of retaining employees but also the need to retain talented employees
from getting poached.

The process of Performance Appraisal will benefit an organization in the following ways:

The Cost of Turnover:

The cost of employee turnover adds hundreds of thousands of money to a company's
expenses. While it is difficult to fully calculate the cost of turnover (including hiring
costs, training costs and productivity loss), industry experts often quote 25% of the
average employee salary as a conservative estimate.
Loss of Company Knowledge:
When an employee leaves, he takes with him valuable knowledge about the company,
customers, current projects and past history (sometimes to competitors). Often much
time and money has been spent on the employee in expectation of a future return.
When the employee leaves, the investment is not realized.
Interruption of Customer Service:
Customers and clients do business with a company in part because of the people.
Relationships are developed that encourage continued sponsorship of the business.
When an employee leaves, the relationships that employee built for the company are
severed, which could lead to potential customer loss.
Turnover leads to more turnovers:
When an employee terminates, the effect is felt throughout the organization. Co-
workers are often required to pick up the slack. The unspoken negativity often
intensifies for the remaining staff.
Goodwill of the company:
The goodwill of a company is maintained when the attrition rates are low. Higher
engagement rates motivate potential employees to join the organization.
Regaining efficiency:
If an employee resigns, then good amount of time is lost in hiring a new employee
and then training him/her and this goes to the loss of the company directly which
many a times goes unnoticed. And even after this you cannot assure us of the same
efficiency from the new employee

46
INTERPRETATION OF RESULTS AND

FINDINGS

47
 DATA ANALYSIS & FINDINGS

Talented people need to be constantly challenged and stretched.

0%

4th Qtr
9%
3rd Qtr
10%

2nd Qtr 1st Qtr

23% 58%

In the above pie chart it is clearly shown that on the given sample size they are generally
agree with the question but it is very difficult to make any assumption that in all
organizations think like above, it may be different.

So, on the basis of sample size we can see that there is very tiny difference between Agree
and strongly agree. So we are concluding that statement with Agree.

48
 Two ingredients essential to enhance a talent are stimulation and freedom to

explore and initiate a passion

Neutral
Strongly Disagree 5%
5%

Disagree
10%

Strongly Agree
55%
Agree
25%

Here we can easily see that maximum number of people are Strongly agree with two essential
ingredients to enhance a talent are 55% and again it is depend upon organization to
organization but according to our sample there are very less amount of people are Neutral,
Strongly Disagree and Disagree, majority is in the favour of those essential ingredients.

So, we are concluding it with organization has to support to these ingredients to enhance the
talent.

49
 Deep interest is the most important tool to encourage a talent and prevent them

from discouragement.

Strongly
Agree
Neutral 8% Agree
25% 12%

Strongly Disagree
15%

Disagree
40%

Above pie chart is clearly show that deep interest with employee is not a important tool to encourage
their talent but accept this there are so many another tools to encourage their talent.

According to interest of responded towards this question was not a likely good; they think that Deep
interest may be kill the hard work of employee. So, we can conclude this without think beyond.

50
 Diversity in talents and personalities means a blend of cross cultured talents

and the best of the productivity.

Nuetral
5%

Disagree
15%

Strongly Agree
35%
Strongly Disagree
20%

Agree
25%

According to our survey and some comments by the responded, they said that meaning of
talent and personality of employee is being intermingled of cross culture talents and the
productivity. They are believed that both are the same but synonyms of each other.

Our samples are strongly agreed with that statement and very few are neutral about that,
neutral. So, we can conclude with this in an organizations diversity in talent and
personalitys means a blend of cross culture talents and the best of the productivity.

51
 Employing best practices leads optimum productivity.

Strongly Disagree
5% Disagree
10%

Strongly Agree
30%

Agree
55%

Of course employee best work and hard work is lead to the organization optimum
productivity but on the other hand we know that without proper guidance no one can perform
well.

So it is say that optimum productivity is not only generated by employee but behind this there
are some another hand to support it like managers and Board of Directors.

But again according to our survey it is clear that around 55% people are strongly agree with
the employee hard work or give the support to the employee and anothers 30% are give
support to the employee but not 100%.and amount of neutral are 0% that means everybody in
any organization are know that who gives a best.

52
 The term Human Resource Management will be supplanted by Performance
Appraisal, signifying that Performance Appraisal is more of retaining employees
than acquiring them.

Strongly
Agree
5%
Neutral
10%
Agree
15%

Disagree
25%

Strongly
Disagree
45%

Our survey shows that strongly disagree percent are very huge and also on the other hand
Disagree percentage is not tolerable. Around 70% are disagreeing with that Performance
Appraisal is more retaining employee than acquiring them.

53
 Knowledge Management is being used to pass on the expertise to juniors.

Neutral
5%

Strongly Disagree
5% Disagree
8%

Strongly Agree
47%

Agree
35%

According to our knowledge we knew that Knowledge Management is the process to pass the
expertise to new employee but still we had to believe over that because teachers taught us and
books tells to us but after that research we came to know reality, and this time we are not
getting insist by any theory but here we have done practical and know that from where
teachers and books tells to us that Knowledge Management is process to pass knowledge to
the junior.

Above pie chart is nothing but proof of that by sample a vast majority of people are strongly
to say that Knowledge Management is being used to pass on the expertise to juniors.

54
 How often leadership development program takes place in an organization?

Every week
5%

Every
Month
10%
Every 3
Months
Every 6 Months 10%
45%

Quarter of year
30%

Here we saw during the research all organization has different thinking towards the
Leadership Development program.

Before this research we did not know and even we had not any idea about duration of that
program but know really specially after completing the this research we came to know about
as more as about the Leadership Development program and also at what time they have need
of or at what time managers came to think about this program should to be given to the
employee of that organization.

Here we can see in pie chart 45% organization says that Leadership Development program is
should be given every 6 months or two times in the year but interval should be same. 30%
organization says that every 4 months in the year is necessary to give leadership development
program to juniors.

55
 Talent in the organization is mostly nurtured

Yes
35%

No
65%

Actually our sample has little bit confliction or can say that their answers are blended at some
point.

Here a vast majority of sample said that No talent is never been nurtured it is depend upon
person to person we can only say that we are just a pathfinder not more than this, but talent is
stay in mind of the person we cannot nurture it.

On the other hand 35% of the sample are agreeing with that and also say that we are also a
pathfinder as well as foster.

56
 How often training programs are being conducted in the organization?

When new
A year technology is
30% adopted
20%

6 months With new

5% commers
45%

Her we can see that very few people are state that training should be give in a half year but
majority i.e. 45% people says that it should be give when new employees are join the
organization.

And another majority i.e. 30% people are stated that in a year one at least one time training
should to be give to the all active employees.

And another majority stated that whenever new technology is adopted by the organization
training is become necessity there.

57
LIMITATIONS

58
 LIMITATIONS OF STUDY
Many constraints were involved in doing this study. Some of them are as
follows:

The most significant limitation has been the individuals involved in this
study were very busy and did not spare much time in discussion.
The sample size selected for the survey was too small as compared to
large population.
The project was carried out only in the Delhi, so findings on data
gathered can be best true for Delhi only and not applicable to other parts
of state and country.

59
CONCLUSION & RECOMMENDATION

60
 CONCLUSION & RECOMMENDATIONS

It is now proved beyond doubt that, in the era of technology and knowledge, talent is in the
driving seat. One who possesses it dictates. Not he who pays for it. It is the demand of the
time that business leaders elevate management of talent to a burning corporate priority. It is
not a walk in the park for the talent market. Quality people are no longer available in plenty,
easily replaceable and relatively inexpensive.

These are some of the measures that should be taken into account to hire and retain talent in
the organization, to be efficient and competitive in this highly competitive world: -

Hire the Right People:

Proper care must be taken while hiring the people itself. It would be beneficial for an
organization to recruit young people and nurture them, than to substitute by hiring
from other organizations. Questions to be asked at this stage are: Whether the person
has the requisite skills needed for the job? Whether the person's values and goals
match with those of organizations? In short, care must be taken to fit the right person
to the right job.

Keep the Promises:

Good talent cannot be motivated by fake platitudes, half-truths and broken promises.
Unfulfilled expectations can breed dissatisfaction among the employees and make
them either leave the organization or work below their productive level. Promises
made during the hiring stage must be kept to build loyalty among the employees, so
that they are satisfied and work to their fullest capability.

Good Working Environment:

It has to be accepted by the organizations that highly talented persons make their own
rules. They have to be provided with a democratic and a stimulating work
environment. The organizational rules must be flexible enough to provide them with
freedom to carry out their part of task to their liking, as long as the task is achieved.
Opportunities should also be provided to the employees to achieve their personal
goals.

Recognition of Merit:
It is highly motivating for any person if his talent is recognized and is suitably
rewarded. One way is providing them with salary commensurate with their
performance. Promotions and incentives based on performance are another way of
doing it. Another way is by providing them with challenging projects. This will
achieve two objectives - it makes employee feel that he is considered important (a
highly motivating factor) and gets the work done in a efficient manner and brings out
the best in the employee.

61
 Providing Learning Opportunities:
Employees must be provided with continuous learning opportunities on and off work
field through management development programmes and distance learning
programmes. This will also benefit the organization in the form of highly talented
workforce.

Shielding from High Work Pressure: If an organization has to make the most of the
available talent, they should be provided with adequate time to relax, so that they can
distress themselves. It is very important to provide them with holidays and all-
expenses-paid trips, so that they can come back refreshed to work and with increased
energy. They must also be encouraged to pursue their interests which are also a good
way of reducing work environment stress. Recreation clubs, entertain programs, fun
activities within the work area will also reduce the work life stress of the employees
and develop camaraderie among the workers and result in a good working
environment.

62
BIBLIOGRAPHY

63
 BIBLIOGRAPHY

http/www.citehr.com

http/en.wikipedia.com

http/www.schoonover.com

http/www.opm.gov

http/www.sitemaker.umich.edu

Search Engine : Google

www.talentmanagement101.com
www.growtalent.com%2Fmedia%2FKBPapproach.doc&ei=ZHZ4SLSkKYKS6gPy5
PHrDw&usg=AFQjCNE3YfsqVkfck_5v7alUmzLI7Wax4g&sig2=6FS65MT_txvrLP
DznRduLA
www.sap.com%2Findustries%2Finsurance%2Fpdf%2FBWP_Trends_in_Human_Cap
ital_Management.pdf&ei=ZHZ4SLSkKYKS6gPy5PHrDw&usg=AFQjCNHLm8mftn
LFYf9XGZIkpRKpF14ovg&sig2=s8TQOxVy5zk9zGUV5PkwXw
www.talentmanagement101.com/tlmgmt_toolkit.html
www.harvardbusiness.org/.../products-and-services/collections/product-talent-
management-center-overview.html
www.iimb.ernet.in/iimb/html/download/21.%20Leadership%20Actions%20for%20Ta
lent%20Management.htm

64
APPENDIX

65
 APPENDIX
Talented people need to be constantly challenged and stretched.

Years Respondent

First Quarter

Second Quarter

Third Quarter

4th Quarter

Two ingredients essential to enhance a talent are stimulation and

freedom to explore and initiate a passion

Respondent Answer

Strongly Agree

Agree

Disagree

Strongly Disagree

Neutral

66
 Deep interest is the most important tool to encourage a talent and
prevent them from discouragement.

Respondent Answer

Strongly Agree

Agree

Disagree

Strongly Disagree

Neutral

Diversity in talents and personalities means a blend of cross cultured

talents and the best of the productivity.

Respondent Answer

Strongly Agree

Agree

Disagree

Strongly Disagree

Neutral

Employing best practices leads optimum productivity.

Respondent Answer

Strongly Agree

Agree

Disagree

Strongly Disagree

Neutral

67
 The term Human Resource Management will be supplanted by
Performance Appraisal, signifying that Performance Appraisal is
more of retaining employees than acquiring them.

Respondent Answer

Strongly Agree

Agree

Disagree

Strongly Disagree

Neutral

Knowledge Management is being used to pass on the expertise to

juniors.

Respondent Answer

Strongly Agree

Agree

Disagree

Strongly Disagree

Neutral

68
 How often leadership development program takes place in an
organization?

Years Respondent

Every Month

Every Three months

Every Quarter

Every 6 Months

Talent in the organization is mostly nurtured

Respondent

Yes

No

How often training programs are being conducted in the

organization?

Years Respondent

0-6 month

06 -1 Year

During New technology add on

During new Consumers

69