Concept and Background

Total Quality Management (TQM) is an enhancement to the traditional way of doing business. It
is a proven technique to guarantee survival in world-class competition. Only by changing the
actions of management will the culture and actions of an entire organization be transformed.
TQM is for the most part common sense. Analyzing the three words, we have
 Total-Made up of the whole

 Quality-Degree of excellence a product or service provides.

 Management- Act, art, or manner of handling, controlling, directing, etc.

Therefore, TQM is the art of managing the whole to achieve excellence. TQM is defined as both
a philosophy and a set of guiding principles that represent the foundation of a continuously
improving organization. It is the application of quantitative methods and human resources to
improve all the processes within an organization and exceed customer needs now and in the
future. TQM integrates fundamental management techniques, existing improvement efforts, and
technical tools under a disciplined approach.
Total quality management has now become an important aspect of management due to increased
competition among companies and quality issues associated with company operations; the
survival of a business mainly depends upon the quality associated with the product. However,
competition has become more challenging today than ever before, while customer expectations
of service quality are higher than ever.

TQM is an ideology which is focused on the satisfaction of customer’s need. TQM require
organizations to develop a customer focused operational processes and at the same time
committing the resources that position customers and meeting their expectation profitably. This
implies an approach of changing the corporate culture of an organization to be customer centric.

TQM requires effective knowledge management so as to ensure that employees obtain timely
reliable, consistent, accurate, and necessary data and information as they need to do their job
effectively and efficiently in the firm. TQM is concerned with the continuous improvement in all
the process of design and operation, from the levels of planning and decision making to the
execution of work by the front-line staff.

The focus on continuous improvement leads to the formation of formidable team whose
membership is determined by their work on the detailed knowledge of the process, and their
ability to take improvement action. TQM also implies reducing and streamlining the supplier
base to facilitate managing supplier relationships, developing strategic alliances with suppliers,
working with suppliers to ensure that customer expectations are met.
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Recruitment and selection can play a pivotally important role in shaping an organization’s
effectiveness and performance, if work organizations are able to acquire workers who already
possess relevant knowledge, skills and aptitudes and are able to make an accurate prediction
regarding their future abilities. Recruitment and selection also has an important role to play in
ensuring worker performance and positive organizational outcomes. It is often claimed that
selection of workers occurs not just to replace departing employees or add to a workforce but
rather aims to put in place workers who can perform at a high level and demonstrate commitment
(Ballantyne, 2009).
Recruitment and selection forms a core part of the central activities underlying human resource
management: namely, the acquisition, development and reward of workers. It frequently forms
an important part of the work of human resource managers – or designated specialists within
work organizations. It is the human resources that give competitive edge” and therefore should
be selected carefully and developed in order to achieve employees‟ commitment (Storey, 1995).

Mullins (2010), for the Human Resource Management (HRM) function to remain effective,
there must be consistently good levels of teamwork, plus ongoing co-operation and consultation
between line managers and the HR manager. This is most definitely the case in recruitment and
selection as specialist HR managers (or even external consultants) can be an important repository
of up-to-date knowledge and skills, for example on the important legal dimensions of this area.

Development (CIPD, 2009a), concluded that organizations should increasingly be inclusive in

their employment offering as younger generations have grown up with the notion of flexible
working, while older people have an interest in flexible working as an alternative to retirement.

Boxall, Purcell and Wright (2007), highlight five different questions an organization has to
answer to have an effective recruitment strategy in order to pursue its survival and success.
Those questions are “Whom to recruit?”, “Where to recruit?”, “What recruitment sources to
use?”, “When to recruit?” and “What message to communicate?” The notion of effectiveness in
this study relates to the manner by which organizations implements its employment policies. The
essence is to understand whether such policies are applied appropriately in the way they have
been designed.

The focus of recruitment and selection according to Montgomery (1996), is on matching the
capabilities and inclinations of prospective candidates against the demands and rewards inherent
in a given job.
Odiorne (1984), postulated that the quality of recruitment practices put in place by an
organization is a function of the quantity of application that will be received; he stated further
that the relative effectiveness of the next human resources phase (selection) is inherently
dependent upon the quality of applicant attracted.
Odiorne (1984), added that the result of effective recruitment and selection are the reduction on
labor turnover, good employee morale and improves organization performance. According to
Armstrong (2006), the aim is to obtain, at a minimum cost, the number of suitable and qualified
candidates to satisfy the needs of the organization. The organization attracts candidates by means
of identifying, evaluating and using the most appropriate sources of applicants.
Another scholar Jovanovic (2004), augured that recruitment is a process of attracting a great
pool of high quality applicants to select the best among them. In “past practice in personnel
management in the Nigeria civil service: issues and procedures” detained recruitment as the
process which starts from getting an applicant interested enough in a job and in a particular
organization to write an application and the process stops when his application has been received
in the organization.

Bratton and Gold (2007), differentiate the two terms while establishing a clear link between
them by stating that recruitment is the process of generating a pool of capable candidates to
apply for employment to an organization. Whereas, Selection is the process by which managers
use specific instruments to choose from a pool of applicants, a person or persons more likely to
succeed in the job(s), given management goals and legal requirements. Recruitment and selection
forms a central part of the fundamental activities underlying talent management, namely,
acquisition, development and reward of employees. It often forms an important part of the work
of human resource managers – or designated specialists within work organizations.

According to Storey (1995), it is the human resources that give a competitive edge to the
enterprise and therefore should be selected carefully and must be developed constantly so that
they remain committed and aligned to the goals of the organization. However, recruitment and
selection decisions are often for good reason taken by non HR specialists i.e. the line managers
(Costello, 2006). Therefore, it is the accountability of all managers even where human resource
departments exist that the right candidates are selected for the job roles. The Human Resource
(HR) managers in most of the organizations play more of a supporting advisory role in
recruitment &the selection process for those people who will supervise or in other ways work
with the newly appointed employee/ employees.
According to Edwin B. Flippo, (1979) “Recruitment is the process of searching the candidates
for employment and stimulating them to apply for jobs in the organization”.
Raymond J. Stone (2005) defines recruitment as the process of ‘seeking and attracting a pool of
applicants from which qualified candidates for job vacancies within an organization can be
selected.
According to Costello (2006) recruitment is described as the set of activities and processes used
to legally obtain a sufficient number of qualified people at the right place and time so that the
people and the organization can select each other in their own best short and long term interests.
The principal disadvantages of internal recruitment have limited choice of talent available in the
organization as it evades the arrival of fresh candidates. There may be far better external
candidates who have more experience and better qualifications (Sunderland & Canwell, 2008)
to suit the position in question. Another problem with internal sourcing is that the existing
employees, whether competent or not, will feel that they have an automatic right to be given a
more senior post (Sunderland & Canwell, 2008). Besides above, external sources of
recruitment, refer to attracting applicants from outside the organization to fill vacant positions.
Like internal sources, they are also equally beneficial in attracting competent applicants for
advertised positions. Broad varieties of methods are in use for external recruitment such as
advertisement, e-recruitment, employee referrals, employment agencies, labor office, education
and training establishment (Beardwell, 2007; Cober & Brown, 2006).

Of all the above e- recruitment or recruitment using social media like Facebook, linked in etc.
and employee referrals are most widely used methods by the modern organizations. E-
recruitment: or online recruitment uses web-based tools such as a firm’s public internet site or its
own intranet to recruit staff and carrying out the processes of attracting, screening and tracking
applicants, selecting, and offering jobs or rejecting candidates online.

Cappelli (2001), has estimated it that it costs only about one-twentieth, as much to hire someone
online. Further use of digital platforms such as Facebook and Linked-In gives the real time
information on the candidate for the organization, for which the dependency till date was only on
reference checks.

Amos et al. (2004), as well as Mathis and Jackson (2006), define selection as the process of
picking the most suitable applicants. The process, according to them, is guided by predetermined
selection criteria such as job descriptions, job specifications and job profiling and begins after
the recruitment process has been accomplished.

Robbins et al. (2001), point out that the objective of the selection process is to match the
applicant’s ‟ability, knowledge, skills and experience with job requirements in a fair and legal
manner. Further the Managers who are involved in hiring employees need to comprehend the
skills and abilities that are required in a particular job and thus finalize upon the candidates that
have those required capabilities. Interviews, reference checks, tests, applications and résumés
can all help identify differences among candidates. Managers can make their selection decisions
with a fuller awareness of the applicants‟ strengths and weaknesses (Tjosvold and Newman,
2003).

Interviews are virtually used by all organizations for selection purposes. In support of this,
Newell and Tansley (2001), indicate that interviews are by far the most widely used personnel
selection procedures. With the use of interviews, managers of organizations get an opportunity to
meet the applicants directly. The interview also provides the applicants with an opportunity to
also learn more about the public institution. The purpose of the selection interview is to gather as
much information and to use such information to arrive at a selection decision (Redman &
Wilkinson, 2001:31).
During the interview, panel members (interviewers) normally pose questions to which the
interviewee is expected to respond. Responses to the questions are often captured by means of
scores as determined the interviewers. The applicant that obtains the highest score is
recommended for appointment (Wilkinson, 2001:32). Because of interview ambiguity, efforts
must be made to ensure that all interviewees are being asked the same questions (Gomez-Majia
et al., 2004:175).
Once that “right” person has been employed, the corporation has to ensure that the right
remuneration and incentives are also put in place for the employee so that he/ she remains
motivated in his new workplace. Research from the Chartered Institute of Personnel and
Development (CIPD, 2009a), concluded that organizations should increasingly be inclusive in
their employment offering as the younger generations have grown up with the notion of flexible
working, while older people have an interest in flexible working as an alternative to retirement.

The European market is a market with high competition level, thus Poland’s pursuit in
the European Union’s membership is a requirement for quick adaptation of Polish companies
to the competition on internal market [16]. Small and medium-sized enterprises are very
important for the Community’s economy. The significant role of SME sector in the
economies of developed countries is proved by the share of small and medium-sized
enterprises in the employment structure, the subject structure of the economy, the national
product, or particular areas of these economies. Small and medium-sized enterprises account
for 99.8% of all companies operating in the EU, they provide about 65% of turnover in this
grouping. Over 15 million small and medium-sized enterprises employ about 66% of total
workforce. Small and medium-sized enterprises play an important role in local and regional
development and are the most flexible in terms of adaptation to the changing market
conditions.
The reasons for the SME’s growing role, and simultaneously positive impact of this
sector on the economy, are as follows [5]:
*0 high efficiency of operation,
*1 high flexibility of operation,
*2 cooperation with large enterprises,
*3 increase in employment,
The role of this sector is particularly important in the field of competitiveness increase
of the European industry and establishing new workplaces. The policy supporting the SME
sector in the EU is carried out at transnational level and creates economic and legal
framework at the national level. According to the assumptions formulated by the European
Commission in the Opinion on the Poland’s application for EU membership, Poland should
make the steps necessary for establishment of infrastructure favourable to the SME sector,
simplify legislation related to the SME, increase transparency of taxation system and increase
the SMEs' access to external financing resources, as well as improve coordination between the
ministries and other institutions, including non-governmental institutions, that are responsible
for the SME policy. For the Polish SME sector, participation in the structures of the European
Union is both an opportunity and a threat. It will relate to the increase in competition and
quality standards, as well as with the expansion of markets and increased availability of
capital. Whether Poland will benefit from opportunities or avoid its threats will be determined
by conscious implementation of the policy on development of small and medium-sized
enterprise sector [7].
LITERATURE REVIEW
The performance management system is one of the most significant phenomena of the Indian
IT sector. Basically, organization productivity and effectiveness mainly depends on the
employee performance measurement. This system began from the time of world war as simple
method of income satisfaction but now-a-days it is considered as indispensable for every
organization. In this connection the researcher selected this topic, once a topic has been selected,
it is essential to review all relevant materials which have a bearing on the topic. There have been
many research studies conducted on performance management system in India and other
countries. A brief review of previous studies has been presented below.

K. Chandhana and Dr. David T Easow (2015) in their article titled ‘Performance Appraisal
Method Used in Top 10 IT Companies – 360 Degree Feedback & Balanced Score Card: A
Review’ has found that the both 360degree feedback and balanced score card has its own
loopholes, through these methods are being used by top IT companies. The satisfaction levels of
employees towards these appraisal methods are very low and there is a need of a new appraisal
method which prevents these errors and has the advantages of these methods.
Rajput, et al, (2015) in their article titled ‘Performance Appraisal System’ explain that
performance appraisal is conducted on an annual basis for existing employees whereas for
trainee and new recruits it is done on quarterly basis in many organizations. Here author studies
about the multidimensional nature of job where the nurse manager gives rating to different job of
nursing process. Thus, Employees who have relatively less competition or lenient appraisers
have higher appraisal than to equally competent employee.

Rinku Sanjeev and Sanjeev Kumar Singh (2014) in their article titled ‘Employee Perception
towards Performance Appraisal Program in Packaging Industry’ suggest that theemployees have
both positive and negative perceptions towards the Performance Appraisal Program in packaging
industry. The employees also believe that it is not helpful in reducing grievances among the
people. Employees’ perceptions also vary according to their demographic differences. The
Performance Appraisal Programs need transparency and well explained parameters for the
acceptance and satisfaction of employees as these impact the overall organizational performance.

Jawad et al., (2014) ‘Impact of Technology on Performance of Employees (A Case Study on

Allied Bank Ltd, Pakistan)’found that the investment of organizations in new technology has
good impact on the performance of employees; it increases their efficiency and productivity. It
also makes the organizations more competitive regarding customer services like in the case of
Allied Bank, it become more customers focused and services oriented.
BethuelSibongiseniNgcamu (2013) ‘The Empirical Analysis of Performance Management
System: A Case Study of a University in South Africa’ concluded that the Performance
Management System (PMS) to be effectively implemented flexible PMS needs to be designed in
order to accommodate all employees at all levels. It further recommends that in order for the
PMS to improve effectiveness amongst employees; well-crafted job descriptions in line with
departmental strategic plans that are aligned with the comprehensive organizational strategy;
need to be brought to light.
Rohan Singh, MadhumitaMohanty and Mohanty A.K. (2013) ‘Performance Appraisal Practices
in Indian Services and Manufacturing Sector Organizations’ concluded that the conducting
periodical review of workforce performance by organizations has become a fundamental
requirement which will help to shrink the gap between employee performance and successful
attainment of its objectives.
Muhammad Shaukat Malik and Surayya Aslam (2013) ‘Performance Appraisal and Employee’s
Motivation: A Comparative Analysis of Telecom Industry of Pakistan’ this empirical research
found the significant influence of employee’s reactions towards performance appraisal on
employee motivation. Employee perceived reactions including perceived satisfaction, perceived
acceptability, perceived utility, perceived fairness and perceived accuracy of performance
appraisal are significantly important to determine the employee work motivation.
Hamumokola (2013) ‘The Contributions of Performance Management Systems To performance
in The Namibian Context’ found that the goal setting theory which predicts that performance
benefits can be realized by implementing specific challenging goals because they have a
motivational effect on employees compared to vague and easy goals. He suggested that
employee participation in goal setting and providing feedback led to higher performance
compared to when goals assigned and no feedback is given.
Rajesh K. Yadav and Nishant Dabhade (2013) ‘Performance Management system in Maharatna
Companies (a leading public Sector undertaking) of India – A Case study of BHEL, Bhopal
(M.P.)’ suggested that the effective performance management requires equal standards against
which employees are assessed. In the absence of equal standards, employees are assessed with
subjectivity, which may destroy the process of appraisal and leave it as a body without soul.
Therefore, the problem of unequal standards can be minimized by ensuring that the appraisal
criterion is job-oriented.
Sunil Kumar Pradhan and Dr. Suman Kalyan Chaudhury (2012) ‘A survey on employee
performance management and its implication to their relation in OCL India Ltd’ conducted the
study with three main objectives namely to know the performance management system and how
it helps in organizational development, to assess the efficacy of performance management as a
tool for HR interventions and to know how performance management leads employee
satisfaction, this ultimately increases employee retention. The study found that the main purpose
of performance management is to link individual objectives and organizational objectives in such
a form as to give best possible platform to the employees to perform at the highest level.
Sandeep Gudla and Valli Sri Krishna Veni (2012) ‘The Study of Performance Management
System in IT Organizations’ conclude that the performance management system plays a key role
in the organization effectiveness. This system helps to meet business expectations and helps to
speed up to market expectations. It is also helps management in making promotion decisions and
finally, the employees in the organization are satisfied with system which exists in IT Industry.

Boachie-Mensah, et al, (2012) conducted the survey was made on educational institution of
Takoradi, Ghana, where author study was focused on employee/staff perceptions on performance
appraisal method, biases or error related to the approach. Perception influence people’s judgment
and attitudes towards particular thing, therefore the staff might hold different opinions about the
performance appraisal system in the organization. The research on this concept was analysed,
using different method such as descriptive statistics and the results of the study says that
employees are affected by the Performance appraisal system and are affected by major error.
Matlala (2011) ‘Employee Fairness Perceptions of a Performance Management System’
concluded that employees at the organization have a negative perception of the fairness of their
organizations performance management system. It is also clear that employees’ perceptions of
fairness are influenced by distributive, procedural and interactional justice factors as outlined.
S. Haanappel (2011) ‘A framework for IT Performance Management ‘explain that the
performance measurement frameworks include metrics and a budgeting approach. Performance
metrics are used to govern measures and need to match the goals of the organization. When they
are not well implemented the planning and control of these metrics is impeded. The goals of
budgeting system development are the development and maintenance of a process for the
planning and management of activities. These activities are deducted from the strategic and
tactical plans and the corresponding benefits and costs are translated into a financially
formulated plan.
Senthil Genesh&Jerme Joseph (2011) ‘Exploring perceived organizational formalization and
performance review system complexity as predictors of executive atienation in performance
review systems’ regarded performance review as one of the most complex and controversial
human resource technique in organizations. The study explored the domain of cognitive
complexity of executive appraises by examining perceived organization formalization and
experiential perceptions of performance review system complexity as predictors of appraises
executive alienation in performance review systems.
Abdul Hameed and AamerWaheed (2011) ‘Employee development and its effect on employee
performance- A conceptual framework’ here they analyzed the theoretical framework and
models related to employee performance. The study found that the success or failure of the
organization depends on employee performance. Therefore organizations are investing huge
amount of money on employee development. The study also developed a model which explains
the relationship between employee development variables (employee learning, skill growth self-
directed and employee attitude) and employee performancevariable.
Ahmed et al., (2011) ‘Relationship between Perceived Fairness in Performance Appraisal and
OCB: Mediating role of organizational commitment’ identified a key factor for the development
of the organisation in effective and efficient manner. Previous studies indicate that employee
perception towards performance appraisal has a significant impact on employee satisfaction and
their individual performances.
SharmisthaBhattacharjee and Santoshi Sengupta (2011) ‘An Employees Performance
Management in Manufacturing Sector in India’ stated that the employees are the most valuable
and dynamic assets of an organization. Through the performance management system can leads
to achieving the strategic objective of sustained & speedy growth, managing human resource has
been featured as a vital requirement in all organizations.

Talya and Berim (2010) explained that the performance appraisal system is not only an important
tool of human resource management to develop their employees, but is also used by different
companies to reward their employees in form of bonuses, promotions, and pay raise etc. Usage
of performance appraisal to reward employees is also used by different theories of motivation
like reinforcement theory etc.
Ashok Khurana&Kanika Goyal (2010) ‘Performance appraisal: A key to HR assessment and
Development’ explored the performance appraisal practices of selected Indian Industries. It
provides an insight into the concept of performance appraisal, the method and approaches of
performance appraisal, the appraisal process etc. The study observed that at L&T performance of
human resources is appraised at three levels. That is self-appraisal by employee reviewing his
past performance, critical attributes appraisal by immediate supervisor and performance and
development planning for future period by the superior along with the employee. The study
observed that performance appraisal is indispensable to be aware of each employee’s abilities,
competencies and relative merit and worth for the organization.
GeetaKumari, Neha Kaleramna and K.M.Pandey (2010) ‘Study on Performance Management
System of Private Companies: A Case Study of Endurance Pvt. Ltd. Maharashtra, India’
suggested that the performance targets must be clear, specific, challenging, time bound and
linked with value rewards and employees must be properly and adequately communicated
regarding the assigning of values in terms of number of performance.
Sanwong (2008) ‘The Development of a 360-Degree Performance Appraisal System: A
University Case Study’ examined the functioning of an innovative 360-degree performance
appraisal system among a sample of 75 employees at a Thai university. The data for the system
came from supervisors, colleagues, clients and junior staff as well as from the employees
themselves. The validity of the system was examined on two occasions. While all employees
were satisfied with the system, support and clerical staff in the university were more satisfied
than academic staff. A number of suggestions were made for improving the 'working' of such a
system in a university environment.
Gurbuz and Dikmenli (2007) in their research titled ‘Performance appraisal in public
organizations: An empirical study’ they suggest that younger as well as older employees’
perception of Performance Appraisal generally does not vary significantly according to their
ages. This apparently suggests that younger and older employees alike are substantially similar in
terms of their commitment and willingness to submit to Performance Appraisal.
Kuvaas (2006) ‘Performance Appraisal Satisfaction and Employee Outcomes: Mediating and
Moderating Roles of Work Motivation’ explained that the performance appraisal is one of the
most important theories of human resources management and is one of the subjects which have
been studied and investigated in the psychology of work extremely. Those employees who
believe that the organization is trying to supply their needs may have a sense of responsibility
with regard to render to the organization through high work performance.
I.M. Jawahar (2006) ‘Correlates of Satisfaction with Performance Appraisal Feedback’ indicates
that the performance appraisal feedback is the primary impetus for the organization effectiveness
and it investigates potential predictors and consequences of satisfaction with appraisal feedback.
An appraisal feedback was positively related to job satisfaction of the employees, organizational
commitment and negative related to turnover intentions.
Bard Kuvaas (2006) ‘Performance Appraisal Satisfaction and Employee Outcomes: Mediating
and Moderating Roles of Work Motivation’ explained that the alternative relationships between
performance appraisal satisfaction and employee outcomes in the form of self- reported work
performance, affective organizational commitment and turnover intention. The relationship
between performance appraisal satisfaction and work performance, however, was both mediated
and moderated by employees’ intrinsic work motivation. The form of the moderation revealed a
negative relationship for employees with low intrinsic motivation and a positive relationship for
those with high intrinsic motivation.