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Summer Internship Report

On

STUDY OF PERFORMANCE MANAGEMENT SYSTEM AT


UFLEX LTD.

By
Pallavi Dhingra
A0102309094
MBA Class of 2011

Under the Supervision of


Dr. Hargovind Kakkar
Professor
Department of Human Resource

In Partial Fulfillment of Award of Master of Business Administration

AMITY BUSINESS SCHOOL


AMITY UNIVERSITY UTTAR PRADESH
SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA
2010
AMITY UNIVERSITY UTTAR PRADESH
AMITY BUSINESS SCHOOL

DECLARATION

I, Pallavi Dhingra student of Masters of Business Administration from Amity Business School,
Amity University Uttar Pradesh hereby declare that I have completed Summer Internship on
STUDY OF PERFORMANCE MANAGEMENT SYSTEM AT UFLEX LTD.” as part of the
course requirement .

I further declare that the information presented in this project is true and original to the best of my
knowledge.

Date: 16/03/09 Pallavi Dhingra

Enroll. No: A0102309094

Place: Noida MBA Class of 2011

2
Acknowledgement

The project Title ‘“Analysis of Performance Management System at UFLEX LIMITED” has been
conducted by me during 01/05/10 to 30/06/10 at UFLEX Ltd. My project work has been
successfully accomplished due to cooperative efforts of many people.

I am deeply indebted to Mr. Hargovind Kakkar (Faculty of Amity Business School, Noida) for
his precious & illustrious guidance offered. His inspiring guidance had always encouraged me and
boosted my morale and without him this project could have not been a success.

I owe enormous intellectual debt towards my industry guide Ms. Iti Jain, who has augmented my
knowledge in the field of my research. They have helped me learn about the process and giving me
valuable insight into the organization

A special thanks to Mr. Dinesh Jain for giving me the opportunity of association with the
organisation.

Last but not the least, I feel indebted to all those persons and organization which have helped in the
successful completion of this study.

Date: 16/03/09 Pallavi Dhingra

Enroll. No: A0102309094

Place: Noida MBA( H.R)Clas2011

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Acknowledgement…………………………………………………………. i

Certificate from the Faculty Guide

Certificate from the Industry Guide

Executive Summary………………………………………………………..

CONTENTS

PAGE
CHAPTER No. TITLE
NO.

1 INTRODUCTION

OBJECTIVES AND RATIONALE OF THE


2
PROJECT

REVIEW OF LITERATURE
3

INTRODUCTION TO THE COMPANY


4
4.1 Company Profile

5 RESEARCH METHODOLOGY

5.1 RESEARCH DESIGN

5.2 RESEARCH TOOLS AND


QUESTIONNAIRE

5.3 ACTION PLAN FOR DATA


COLLECTION

4
5.4 DATA ANALYSIS

6 RESEARCH FINDINGS

7 CONCLUSION AND SUGGESTIONS

Bibliography

References………………………………………………………….

Annexure……………………………………………………………

5
CHAPTER – 1
INTRODUCTION

6
Performance management system (PMS) is the heart of any “people management “processes in
organization. Organizations exist to perform. If properly designed and implemented it can change
the course of growth and pace of impact of organizations. If people do not perform organizations
don't survive. If people perform at their peak level organization can compete and create waves.
Performance management systems if properly designed and implemented can change the course of
growth and pace of impact of organizations. In the past organizations as well as the HR function
have wasted a lot of time by wrongly focusing on performance appraisals rather than performance
management.
Effective performance management requires:

 Identifying the parameters of performance and stating them very clearly.

 Setting performance standards


 Planning in participative ways where appropriate, performance of all constituents
 Identifying competencies and competency gaps that contribute/hinder to performance
 Planning performance development activities.
 Creating ownership.
 systematically deciding and communicating what needs to be done (aims, objectives,
priorities and targets)
 a plan for ensuring that it happens (improvement, action or service plans)
 some means of assessing if this has been achieved (performance measures)
 information reaching the right people at the right time (performance reporting) so
decisions are made and actions taken

A Performance Management System enables a business to sustain profitability and performance by


linking the employees' pay to competency and contribution. It provides opportunities for concerted
personal development and career growth. It brings all the employees under a single strategic
umbrella. Most importantly, it gives supervisors and subordinates an equal opportunity to express
themselves under structured conditions. Managing this process effectively isn't easy. It calls for a
high level of co-ordination, channeled information flow, and timely review. Whether employees are
at a single place, or spread across multiple locations, the use of technology can help simplify the
complete process for more effective information management.

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Performance management could be defined as it begins when the job is defined and ends when an
employee leaves the company. Between these points, the following should be understood for a
working performance management system.

Developing clear job descriptions: Job descriptions are the first step in selecting the right person for
the job, and setting that person up to succeed Job descriptions provides a framework so the
applicants and new employees understand the expectations for the position.

Selection: Jobs have different requirements. This is the process of matching the skills and interests
of a person to the requirements of a job. Finding a good job "fit" is exceptionally important. Use of a
selection process maximizes input from potential co-workers and the person to whom the position
will report.

Providing effective orientation, education, and training. Before a person can do the best job, he
or she must have the information necessary to perform. This includes job-related, position-related,
and company-related information; an excellent understanding of product and process use and
requirements; and complete knowledge about customer needs and requirements.

Providing on-going coaching and feedback. People need ongoing, consistent feedback that
addresses both their strengths and the weaker areas of their performance. Effective feedback focuses
more intensely on helping people build on their strengths. Feedback is a two-way process that
encourages the employee to seek help

Conducting quarterly or annual performance development discussions. If supervisors are giving


employees frequent feedback and coaching, performance reviews can change from negative,
evaluative, one-sided presentations to positive, planning meetings.

8
Designing effective compensation and recognition systems that reward people for their
contributions: The power of an effective compensation system is frequently overlooked and
downplayed in some employee motivation-related literature

Providing promotional/career development opportunities for staff: The supervisor plays a key
role in helping staff develop their potential. Growth goals, changing and challenging job
assignments and responsibilities, and cross-training contribute to the development of a more
effective staff member.

Assisting with exit interviews to understand WHY valued employees leave the organization:
When a valued person leaves the company, it is necessary to understand why the person is leaving.
This feedback will help the company improve its work environment for people. An improved work
environment for people results in the retention of valued staff.

In this research project, I have studied, examined the traditional Performance management scenario
of the company, the process, performance appraisal followed and the role of performance
management in assessing the performance of the employee and procedure followed by the company
for feedback session and the impact of PMS on overall working of Human Resource department and
various other departments. In addition to the above, I have also learned about different forms used
by the company for the same purpose. I have also suggested that company should design KEY
RESULT AREAS for the employees in order for the better and realistic assessment of their
performance.

THE PROCESS OF PERFORMANCE MANAGEMENT SYSTEM IN THE COMPANY IS AS


FOLLOWS:-

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PERFORMANCE MANAGEMENT SYSTEM IN UFLEX:

WORKMAN FORCE

(90 DEGREE APPRAISAL)

APPRAISAL CYCLE

WORKMEN

Workmen don’t fill the appraisal


form it is 90 degree so their
performance is only measured by
their line manager.

Line
manager
Line manager who have all the
information about workmen performance,
they report direct to unit head regarding
individual’s performance.

Unit head

Unit Head HOD fills the appraisal form according


to report and self judgment, and forwards the
same to unit HR, who in turn sends at to corporate
UNIT HR HR head.

Unit HR

Corporate HR discusses the cases.


Whenever necessary discuss with Unit
head and after finalization, gets the
approval from CMD.

CORPORATE
HR HEAD

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Since it is a 90 degree appraisal, every performance of workmen is measured by the line manager who
directs the workmen. He is like an immediate boss. Line manager comes below the UNIT HEAD. A
good number of line managers are directed by UNIT HR. line manager who have all the information
about the workmen performance, they report directly to H.R. regarding individual performance. UNIT
HEAD fills the appraisal form according to the given ratings, comments, and self judgments are sent to
the UNIT HR. He marks the necessary changes in the filled form after his discussion with the UNIT
HEAD. Then this is forwarded to the CORPORATE H.R. who in turn discusses each individual case
and then gets the final approval from CMD. For salary appraisal & for the promotion if any. Every
individual employee is presented with a copy, of his increments signed by CORPORATE HR which is
the result of his appraisal.

All the finalized forms come to Corporate HR. then Corporate HR send the report of performance
measurement to all Appraisee. In that report it is clearly mentioned that The Appraisee appraised in
form of promotion, in term of increasing salary, or get some suggestions to improve his performance.

If any employee joins before its PMS cycle (Sep to Sep), then it is not included in cycle, Company
doesn’t count from joining date; it measures employee performance from its decided date.

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STAGES OF PMS CYCLE (FOR STAFF- 180 DEGREE APPRAISAL)

EMPLOYEE
Fill self appraisal form which is
provided by corporate HR at
appraisal time, initiate the PM
cycle

IMMEDIATE
Immediate supervisor gives his rating
SUPERVISORon given critical attributes and
comments on employee’s
performance, & report to head of
department.

HEAD OF
Head of department compare the ratings
DEPARTMENT
Unit HR
and discuss with HR UNIT on it, then after
discussion & verification, forward it to UNIT
CEO.

UNIT CEO

CEO, receive all recommendation and


finalizes the rating & pass it to
corporate HR.

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CORPORATE
HR

Receive all recommendation and


prepare it with justification for
above assessment & takes it to
CMD for approval.

CMD

CHAIREMAN
APPROVED THE FORM

EMPLOYEE
APPRAISED

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Stages of Performance appraisal system:

Employee: employee is the one who actually starts the PMS cycle. He/she initiate the PMS through
filling up the form provided by HR Deptt. This cycle comprises of 75 days approximately.PMS starts
from employee and usually ends at corporate HR people, who finally provides their inputs on the basis
of comments and ratings provided by various stakeholders involved in PMS cycle.

Immediate boss: as soon as the employee fills up the forms and submits it to next level in PMS cycle,
it is the responsibility of the immediate boss of the employee to submits the form to next level of
approval after submitting/providing the rating as well as his/her comments.

Head of Department: when HOD gets the form from second level of PMS, he/she compares the ratings
and comments which are given by employee & immediate boss. and he/She will review the same and
discussion is done with the Business Unit HR. on the basis of the comments provided by immediate
boss & employee, HOD provides his comments as well as the ratings(with due interaction/discussion
with Unit HR).

UNIT CEO: This is the fourth level of PMS cycle. In this stage the form is received by Unit CEO and
he/she confess the same with stakeholders included, receive all the recommendation and finalize the
rating then pass it to Corporate HR.

Corporate HR: in this stage , the Corporate HR is responsible for the final stage, He/She has to provide
the final input on the form and he/she also has authority /discretion to replace/remove/change the given
ratings to the employee incase he/she is not satisfied with overall comments & ratings provided by the
stakeholders. Corporate HR will check and comments and measures it with the rating received by
employee.

This is the last stage in PMS cycle. The PMS cycle is over here but the PMS work needs to be closed
by passing the form to corporate HR Head and finally to the CMD.

After this workflow/PMS cycle, the increment/appraisal/promotion is decided.

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15
16
CHAPTER-2
OBJECTIVES

17
 To study the process and methods of existing Performance management systems at U flex
ltd.

 To study the effectiveness of performance appraisal and methods in the company.

 To trace the drawbacks in prevailing system and suggest the latest methodology with respect
to same.

 To support in bridging the gap between current performance and desired performance.

 To Introduce KEY RESULT AREAS instead of self achievement in sales department.

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CHAPTER-3
REVIEW OF LITERATURE

19
Performance management can be defined as the ongoing communication process that involves both
manager and the employee in:

• Identifying and describing essential job functions and relating them to the mission and goals of
the organization

• Developing realistic and appropriate performance standards

• Giving and receiving feedback about performance

• Writing and communicating constructive performance appraisals

• Planning education and development opportunities to sustain improve or build on employee


work performance.

Objective of PMS

 To confirm the services of probationary employees upon their completing the probationary
period satisfactorily
 To check the effective & efficiency of individuals, teams & organization
 To effect promotions based on competence and performance
 To access the training and development needs of the employees
 To decide upon the pay rise
 PM can be used to determine whether HR programmes such as selection, training, and
transfer have been effective or not.

PMS Includes

 Work plan – A document that describes the work to be completed by an employee within
the performance cycle, the performance expected, and how the performance will be
measured.

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 Corrective action plan – A short-term action plan that is initiated when an employee’s
performance fails to meet expectations. Its purpose is to achieve an improvement in
performance.

 Individual development plan – An action plan for enhancing an employee’s level of


performance in order to excel in the current job or prepare for new responsibilities.

 Performance appraisal – A confidential document that includes the employee’s


performance expectations, a summary of the employee’s actual performance relative to those
expectations, an overall rating of the employee’s performance, and the supervisor’s and
employee’s signatures.

HIGHLIGHTS OF THE SYSTEM

 The appraiser and the appraisee jointly set the Key Result Areas (KRA’s) and assign
mutually agreed weight age expressed as a percentage.

 Simple mathematical relationship between set weight age and accomplishment gives a final
numerical score on KRA’s

 To evaluate all management personnel on company values and leadership attributes a new
section has been added entitled “Values in Action”

Components of PMS

 Performance Standards - establishment of organizational or system performance standards,


targets and goals and relevant indicators to improve public health practice

 Performance Measures - application and use of performance indicators and measures

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 Reporting of Progress - documentation and reporting of progress in meeting standards and
targets and sharing of such information through feedback

 Quality Improvement - establishment of a program or process to manage change and achieve


quality improvement in public health policies, programs or infrastructure based on
performance standards, measurements and reports.

22
The essence of the performance management system in organization is to recognize the importance
of the employees towards achieving the organizational objectives. The basic requirement for this is
that the employees’ personal goals should be perfectly aligned with the vision, mission and the
values of the organization.

The proposed conceptual framework also underscores the vital role of education, training and
development in the envisioned successful organization. In this organization, continuous learning is a
prerequisite to successful job performance and organizational effectiveness. Employees must be able
to learn work, developing effective technical and people skills in order to assume new
responsibilities, and keep pace with and anticipate the changing nature of work and our workplace.

For performance managers and employees, responding to these changes requires the ability to learn,
adapt to change, solve problems creatively, and communicate effectively in diverse groups. In
addition, employees must take personal and proactive responsibility for their careers to ensure future
employability and advancement.

The realities of the contemporary workplace will continue to challenge existing paradigms and
should be considered in managing the performance of employees in a dynamic working
environment.

PERFORMANCE MANAGEMENT SYSTEM

Performance management system (PMS) is the heart of any “people management” process in
organization. Organizations exist to perform. If properly designed and implemented it can change
the course of growth and pace of impact of organizations. Performance management could be
defined as it begins when the job is defined and ends when an employee leaves the company.
Between these points, the following should be understood for a working performance management
system.

Developing clear job descriptions: Job descriptions are the first step in selecting the right person for
the job, and setting that person up to succeed Job descriptions provide a framework so the applicants
and new employees understand the expectations for the position.

23
Selection: Jobs have different requirements. This is the process of matching the skills and interests
of a person to the requirements of a job. Finding a good job "fit" is exceptionally important. Use of a
selection process maximizes input from potential co-workers and the person to whom the position
will report.

Providing effective orientation, education, and training. Before a person can do the best job, he or
she must have the information necessary to perform. This includes job-related, position-related, and
company-related information; an excellent understanding of product and process use and
requirements; and complete knowledge about customer needs and requirements.

Providing on-going coaching and feedback. People need ongoing, consistent feedback that addresses
both their strengths and the weaker areas of their performance. Effective feedback focuses more
intensely on helping people build on their strengths. Feedback is a two-way process that encourages
the employee to seek helpConducting quarterly performance development discussions. If
supervisors are giving employees frequent feedback and coaching, performance reviews can change
from negative, evaluative, one-sided presentations to positive, planning meetings. Designing
effective compensation and recognition systems that reward people for their contributions: The
power of an effective compensation system is frequently overlooked and downplayed in some
employee motivation-related literature

Providing promotional/career development opportunities for staff: The supervisor plays a key role
in helping staff develop their potential. Growth goals, changing and challenging job assignments and
responsibilities, and cross-training contribute to the development of a more effective staff member.

Assisting with exit interviews to understand WHY valued employees leave the organization: When
a valued person leaves the company, it is necessary to understand why the person is leaving. This
feedback will help the company improve its work environment for people. An improved work
environment for people results in the retention of valued staff.

24
There are three important areas that are covered in performance management. These are shown in
the diagram below.

Key Result Areas

Goals Key
Performance
Indicators

Key result areas

They deal with the outcomes or results managers are responsible to achieve. A KRA refers to a
target that needs to be achieved by the appraisee in a given timeKey result areas deal with the ends
and not means to them. The word ‘key’ signifies the vital few results that are important. The results
are the things that are intended consequences of the things you do. The word ‘areas’ means that the
results could be made up of clusters of related but specific results. There is no strict limitation but as
a thumb rule the managers should have no more than four to five key results areas.K.R.A in the
company are identified soon as a person is assigned with certain job role and responsibilities. They

25
are uniquely identified on the basis of intersection of the level of operation & the vertical of
operation.KRA’s are the set of performance expectations from the appraisee.

K.R.A’s are set on the combination of following features:-

Project Requirements: These are of technical nature

Goals

Goals are the tools used to achieve the results. Goals are how you turn intentions into action. The
dictionary meaning of the goals is ‘the end to which the design tends’. To develop this concept let us
go back a bit to the vision and mission of the organization and then link it to the goals.

The vision that any company has is just like a destination. The vehicle that the company is use to
reach this destination is nothing but the mission. The values of the company give a broad direction
to journey. The organization should strive hard to reach the destination but never by compromising
on the values. The distance covered in the direction of the destination could be the ‘key result area’
for the organization and the speed of travel, stoppage times, and breakdowns could be the ‘key
performance indicators’. And the goals will be the path or the road that the organization takes to
reach the destination. That is the goal is the intention expressed by the organization to make a
positive change in the direction of the long-term vision and mission of it.

26
Performance Management in Employee perspective

Till now we have seen how the performance management can be used to improve the business
processes and to achieve success in moving towards the mission and vision of the organization. Now
we will concentrate our effort on performance management in to effectively utilize the human
capital that the organization has. We will not discuss the exact performance management framework
for the employee performance management because this framework will vary from industry to
industry and also from organization to organization. But nevertheless we will discuss how to arrive
at the framework in detail.

Performance management in the HR perspective.

Performance management can be defined as the ongoing communication process that involves both
manager and the employee in:

• Identifying and describing essential job functions and relating them to the mission and goals of
the organization • Developing realistic and appropriate performance standards • Giving and
receiving feedback about performance • Writing and communicating constructive
performance appraisals • Planning education and development opportunities to sustain,
improve or build on employee work performance.

Advantages of performance management

• People believe that they have stake in the organization.

• People feel motivated because they know where the organization is moving.

• Infighting and politics ceases to exist.

But many a times measuring the performance can not be that simple to be measured in terms of
direct performance indicators. Many a times non-quantifiable parameters could also be the

27
performance areas. For example brand loyalty. In such kind of cases we have to go for Indirect
Performance measures.

The essence of the performance management system in organization is to recognize the importance
of the employees towards achieving the organizational objectives. The basic requirement for this is
that the employees’ personal goals should be perfectly aligned with the vision, mission and the
values of the organization.

The proposed conceptual framework also underscores the vital role of education, training and
development in the envisioned successful organization. In this organization, continuous learning is a
prerequisite to successful job performance and organizational effectiveness. Employees must be able
to learn work, developing effective technical and people skills in order to assume new
responsibilities, and keep pace with and anticipate the changing nature of work and our workplace.

For performance managers and employees, responding to these changes requires the ability to learn,
adapt to change, solve problems creatively, and communicate effectively in diverse groups. In
addition, employees must take personal and proactive responsibility for their careers to ensure future
employability and advancement.

The realities of the contemporary workplace will continue to challenge existing paradigms and
should be considered in managing the performance of employees in a dynamic working
environment.

28
CHAPTER-4
INTRODUCTION TO THE
COMPANY

29
UFLEX INDUSTRIES LTD.

CMD – Mr. Ashok Chaturvedi

UFLEX is a Multi Million Group headquartered at Noida, on the periphery of New Delhi, India and
having manufacturing facilities in India & Dubai. UAE, offices in Europe and North America and
market presence in 80 countries around the world. Flex facility enjoys ISO 9001 and ISO 14001
certifications and has FDA and BGA approvals. For their products, U Flex is part of the D&B
Global Database and winner of various prestigious national and international awards like the top
exporter of BOPET and BOPP films, and the Worldstar award for packaging excellence. FPA,
AIMCAL and the Dupont Awards in 2004-2005 are the latest in this series. UFLEX Group came
into existence in 1983 and has grown into one of the biggest multi integrated packaging groups in
the world. Uflex Limited, the India-based flexible packaging giant, began its existence nearly two
decades ago and has come a long way since then offering a vast array of innovative products and
services that enrich life, improve performance and create value for the customers and shareholders

. The group is a multi faceted organization which has backward integrated its operations from
manufacture of Polyester chips, Films (BOPET, BOPP and CPP - both in plain and metallized
form), Coated Film, Laminates, Pouches, Holographic films Gravure cylinders, Inks and adhesives
to all types of packaging & printing machines, offering total flexible packaging solutions to the
entire world.

They manufacture in-house Polyester chips, BOPET / BOPP / COATED / METALLISED / CPP
Films, Packaging machines, converting equipment, inks, adhesives, Flexible Laminates and Pouches
and have emerged as a “one stop shop” committed to providing customers with competitive
advantage, placing top priority to “customer success”. With consistent quality, production expertise,
continuous innovation in products and technologies, a dedicated work force and a highly motivated
corporate team, the Uflex group is expanding at an immense pace. The Film Division of Uflex
Limited is one of the largest manufacturer, supplier and exporter of a variety of Plastic Films in the
world.

Mission

“We believe in using our creativity and aesthetic potential in providing flexible packaging solutions
which make packaging easier, faster, more efficient and user friendly. In this way we too have a

30
share in contributing to the conservation of resources by enhancing the shelf life of the perishable
products.”

Vision

“At UFLEX we believe that, to eventually emerge as a World leader in providing total Flexible
Packaging solutions, we need a customer focused approach.
The way to being a world class player is paved with state-of-the-art facilities blended with world
class practices. And it shall be our endeavor to be placed amongst the top ten international players
by the year 2005.”

Endeavour

Their endeavor is to enhance stake holder’s value.

PRINCIPLES

People Related

• People come first whatever they do


• Each individual is the organization’s responsibility first
• Each individual is competent and capable of taking responsibility for himself
• Each individual is unique and talented
• Each individual is working in the interest of the organization
• NO individual is a write off

Work related

• High priority to quality and process improvements


• Focus on customer expectations
• Environment friendly manufacturing
• Working with facts and data
• Working on causes not only on phenomena
• Cost efficiency , Respect for people

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UFLEX Converting Division- The $150million flagship company of the Flex group is India's
largest manufacturer of flexible packaging materials. It is a one-stop shop offering a wide range of
packaging solutions. Its vertical integration thrust laid the foundation of two strategic Hi-tech
divisions manufacturing BOPET and BOPP films. Both these units are today among the largest in
India.

UFLEX Chemicals Division- Originating from the backward integration thrust of Uflex Limited,
the Company is now an independent entity, developing and manufacturing Polyester Chips, wide
range of Adhesives and Printing inks. UFLEX Chemicals has diversified into Info Tech Industry
offering call centre services and software solutions.

UFLEX Engineering Division- Established with a view to expand the end use of flexible
packaging. It is now one of the foremost engineering companies in India. It offers a wide range of
proven sophisticated PLC controlled FFS packaging machines and converting equipment.

The projects division of UFLEX Ltd. offers specialized services in planning, design, monitoring and
execution of all Civil and Electromechanical works.

UFLEX Foods - A 100% Export oriented State-of-the-art freeze dried mushroom manufacturing
plant is set in the sylvan resort town of Dehradun in the foothills of the Himalayas.

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CHAPTER-5
RESEARCH
METHODOLOGY

RESEARCH DESIGN

33
“Research design is the plan, structure, and strategy of investigation conceived so as to obtain
answers to research questions and to control variance” According to Kerlinger.

The plan is an outline of the research scheme on which the researcher is to work. The structure of
the research is a more specific outline or the scheme and the strategy shows how the research will be
carried out, specifying the methods to be used in the collection and analysis of the data.Research
design is the blueprint of the research it lays down the method and procedure for the collection of
requisite information and its measurement and analysis with a view to arriving at certain meaningful
conclusions at the end of the proposed study

Research design used in the project

The Research method followed in this project is ‘Descriptive Research’. I chose the mentioned
research method as the basic objective of the project was to examine Performance management
system prevailing in the company, suggest some suitable changes in existing system in order to
make it more positive and meaningful in achievement of desired organizational goals.

Descriptive studies

Descriptive studies are undertaken when the researcher is interested in knowing the characteristics
of certain groups such as age, sex, education level, occupation or income. It can also be conducted
when he wants to know the proportion of people in a given population who have behaved in a
particular manner, making projections of a certain things; or determining the relationship between
two or more variables. The objective of such a study is to answer the “who, what, where, and how”
of the subject under investigation. Descriptive studies are well structured. It is therefore, necessary
that the researcher gives sufficient thought to framing research questions and deciding the types of
data to be collected and the procedure to be used for this purpose. If you are not careful in the initial
stages you may find that either the data collected are inadequate or the procedure used is
cumbersome and expensive.

The data and records of the employees are also examined to understand the purpose well. Then the
research was designed as a good research design facilitates the study and makes it an efficient as

34
possible. A systematic research with structured and specified steps in specified sequence was
designed and is as follows:

Step1: The objective is specified with sufficient precision to ensure that data collected is relevant.

Step 2: The data collection method to be used is questionnaires, interviews and observations. While
designing data collection procedure, adequate safeguards against bias and unreliability are ensured.

Step 3: The questions are prepared in a clear, understandable manner.

Step 4: The sampling design used is stratified random sampling, under this sampling design; every
item of the universe has an equal chance of inclusion in the sample.

RESEARCH TOOLS AND QUESTIONNAIRE

Sampling Design

Sample size: Random sampling technique was adopted to choose the respondents for the sample. This
technique was used keeping in view the scope of the study, which try to cover different departments and
cadres of people. The sample drawn is 50 which are from the whole population.

Sample universe: UFLEX INDUSTRIES LTD., SECTOR- 4, NOIDA

Research tools : The instrument used by me for collecting the information is QUESTIONNAIRE
which contained questions covering various aspects related to performance management system. It
contained open ended questions, questions based on likert scale and close ended questions.

ACTION PLAN FOR DATA COLLECTION

35
To obtain the data free from errors, I performed every step carefully while collecting and recording
information and tried to get complete, comprehensible and consistent data The data for the present
research study was collected through two methods:

1. Primary data collection method


2. Secondary data collection method

PRIMARY DATA COLLECTION


The primary data are those which are collected afresh and for the first time. These data are obtained
by a study specifically designed to fulfill the data needs of the problems at hand. Such data are
original in character.

Collected through:

Methods of primary data collection:

The primary data has been collected through following methods:

1. Interview method:

Direct personal interview method was used to collect the information from the respondents
(employees) by personally visiting and meeting the people from whom data have to be collected.
This method was used because the project includes an intensive study of a limited field. Moreover,
the data needed for the purpose is more of personal nature which can be collected through directly
communicating with the employees in order to increase its reliability. The information thus collected
is original, accurate and in depth.

The interview was unstructured as it was characterized by flexibility of approach to questioning


and did not follow a system of pre-determined questions and standardized techniques of recording
information. The method of unstructured interview was chosen so as to have greater freedom to ask,
in case of need, supplementary questions or at times to change the sequence of questions.

2. Questionnaire method:

36
In this method, a questionnaire was made consisting of a number of questions to be answered and
filled by the respondents (employees) on their own. This method was used in order to enable the
respondents to answer the questions as per their convenience and to provide those adequate to give
well thought out answers. Thus this further increases accuracy.

Secondary data:

The secondary data are those which have already been collected by someone else and which have
already been passed through the statistical processes. Thus such data is not originally collected
rather obtained from published or unpublished sources.

Methods of secondary data collection:

Company Journals, Magazines, Internet, Books and newspapers. . The collection of the secondary
data was done through published sources and Unpublished sources of Performance management.

The methods of collecting primary and secondary data differ since primary data are to be originally
collected, while in case of secondary data the nature of data collection work is merely that of
compilation.

DATA ANALYSIS

SECTION B: NATURE OF CURRENT PERFORMANCE MANAGEMENT


SYSTEMS:

Q1. Does your organization operate a formal performance management system?

OPTIONS NO. OF PERCENTAGE


RESPONDENTS

37
YES 50 50

NO 0 0

60
50
50

40
Q1 YES
30
NO
20

10
0
0
1 2

Q2.What is the degree of performance management system prevailing in your company?

a) 80º b) 90º c) 270º d) 360º

OPTIONS NO. OF PERCENTAGE


RESPONDENTS

80º 0 50

38
90º 50 0

270º 0 0

360º 0 0

90 Degree

60
50
50

40

30 90 Degree

20

10
0 0 0
0
80º 90º 270º 360º

Q3. Please indicate which of the following methods of performance appraisal

Form a part of your system?

a) Written Essay method f) Critical Incident assessment

b) Graphic rating scales g) Behavioral Assessment (BARS)

c) Ranking method h) Paired Comparison Method

d) 360 degree appraisal i) Forced distribution method

e) Self appraisal j) Balance Score card

k) Any other pls. specify_______________

39
OPTIONS NO. OF PERCENTAGE
RESPONDENTS

Written Essay method 46 92

Graphic rating scales 14 28

Ranking method 0 0

360 degree appraisal 0 0

Self appraisal 50 10

Critical Incident 0
assessment
0

Behavioral Assessment
(BARS) 0

Paired Comparison
Method 0

0
Forced distribution
method
0

0
Balance Score card

40
0 0

Any other pls.


specify_______________

0 0

41
60
50
50 46

Written essay method


40
Graphic rating scales
30 ranking method
360 appraisal
20
14 self-appraisal
10 critical incident assesment
0 0 0 0 0 0 0 0 BARS
0 paired comparison method
forced distribution method
ba ut i m e S
t
d
36 m e s

r ..
ra ti ng hod

ot d
es l
t a ra l

e d
ss i sa

en
id -a isa

ri b on AR
a p th o

la on tho

r
sc h o

he
ca
l
in ca

m
nc self pra
et

e met balance score card


B
e
s

en pp
ic y m

or
g

other..
ph a

0
ra
r a e ss

di aris
nk

nc
ed mp
n

st
te

fo co
rit

li
G
W

ca

d
ire

rc
iti

pa
cr

4. Who sets the performance goals/requirements for individuals?

a) Senior Managers b) Line managers/Team leaders

c) HR professionals d) Appraisee

e) Appraiser & Appraisee e) others (pls. specify)

OPTIONS NO. OF RESPONDENTS PERCENTAGE

Senior Managers 36 72

Line managers/Team 27 54
leaders

HR professionals
27 54

Appraisee
10 20

42
Appraiser & Appraisee 27 54

others (pls. specify) 0 0

40
35
30 Senior managers

25 line managers/ team leaders


HR professionals
20
appraisee
15 appraiser & appraisee
10 others
5
0
s

e
s

rs
e
er

se
er

al

se

he
ad

on
ag

ai
ai

ot
pr
le

si

pr
an

es

ap
ap
m
m

ea

of

r&
or

pr
t
ni

se
s/

R
Se

er

ai
ag

pr
ap
an
m
e
li n

Q5. What are the determinants for job performance in your organization?

Organizational Culture Technology

Competency of the employee Intelligence

Attitude Aptitude

43
OPTIONS NO. OF PERCENTAGE
RESPONDENTS

Organizational Culture 0 0

Technology 5 10

Competency of the employee 41 82

Attitude 9 18

Intelligence 5 10

Aptitude 9 18

44
45 41
40
35
organis ational c ulture
30 tec hnology
25 c om petenc y of em ployee
20 attitude
15 intelligenc e
9 9 aptitude
10
5 5
5
0
0
organis ationaltec hnology c om petenc y attitude intelligenc e aptitude
c ulture of em ployee

6. In general, how effective has your organization’s performance management

Processes proved in improving overall performance?

a) Effective b) Moderately effective c) Ineffective d) Don’t Know

OPTIONS NO. OF PERCENTAGE


RESPONDENTS

45
40
36
35

30

25 effective
m oderately effec tive
20 18
ineffective
15 don't k now

10

5
0 0
0
effec tive m oderately effec tive ineffec tive don't know

7. Do you expect any changes in The Current Performance Management System In your

Organization?

a) Yes b) No

OPTIONS NO. OF PERCENTAGE


RESPONDENTS

YES 9 18

NO 9 18

46
10
9 9
9
8
7
6
YES
5
NO
4
3
2
1
0
YES NO

INTERPRETATION

The analysis shows that Uflex ltd follow formal Performance management system although the
nature of Performance management is traditional they are not in pace with the latest development in
this field. Also, maximum responses show that degree of Performance appraisal followed is
90º.amongst various methods of performance appraisal Self appraisal is used on a large scale in
Uflexltd. It also indicates that senior managers lay down performance requirements for employees,
although line managers and HR professionals contribute as well to the above purpose. Being a semi
government organization performance management practices are not followed on a large scale in the
company but still majority of population says that while measuring performance of employee
Competency of employee plays a major role apart from Intelligence, attitude, aptitude of the
employee. Majority of employees feel that current Performance management processes has proved
quite effective in improving the overall performance of employee in the company. Despite of all
these aspects of Performance management employees still feel that there should be some changes in
the current performance management practices so that employees of theUFlex ltd can work more
effectively towards fulfilling the organizational goals and take company to higher levels.

SECTION – C: PERCEPTIONS OF HR PROFESSIONALS ABOUT PERFORMANCE


MANAGEMENT SYSTEMS:

47
OPTIONS NO. OF PERCENTAGE
RESPONDENTS

Retention
strategy

a) Strongly 0 0
Disagree
b) Disagree 0 0

c) Neutral 14 28

d) Agree 36 72

e) Strongly 0 0
Agree
0%
0%
0%
28%
strongly disagree
disagree
neutral
agree
strongly agree
72%

OPTIONS NO. OF PERCENTAGE


RESPONDENTS

Reward
Allocation

f) Strongly 0 0
Disagree
g) Disagree 0 0

h) Neutral 14 28

i) Agree 36 72

j) Strongly 0 0
Agree

48
0% 18%
strongly disagree
disagree
neutral
agree
strongly agree
82%

OPTIONS NO. OF PERCENTAGE


RESPOND
ENTS

Identification of training and development


needs

strongly Disagree 0 0

Disagree 0 0

Neutral 14 28

Agree 36 72

Strongly Agree 0 0

49
0%
0%
0%
36% strongly disagree
disagree
neutral
agree
64% strongly agree

Facilitates promotions, transfer


and termination decisions

strongly Disagree 0 0

Disagree 0 0

Neutral 14 28

Agree 36 72

Strongly Agree 0 0

0%
0%
0%
28%
strongly disagree
disagree
neutral
agree
strongly agree
72%

50
To clarify an employee’s
job requirements

strongly Disagree 0 0

Disagree 0 0

Neutral 23 46

Agree 27 54

Strongly Agree 0 0

0%
0%
0%
strongly disagree
46%
disagree
neutral
agree
54%
strongly agree

Identifying barriers to
performance

strongly Disagree 0 0

Disagree 0 0

Neutral 0 0

Agree 36 72

Strongly Agree 14 28

51
0%
0%
0%
28%
strongly disagree
disagree
neutral
agree
strongly agree
72%

Motivational strategy

strongly Disagree 0 0

Disagree 0 0

Neutral 0 0

Agree 40 80

Strongly Agree 9 18

52
45
40
40
35
30 strongly disagree
disagree
25
neutral
20
agree
15 strongly agree
9
10
5
0 0 0
0
strongly disagree neutral agree strongly agree
disagree

2) What according to you is the most challenging aspect of performance management?

a) Determining the evaluation criteria


b) Creating a rating instrument
c) Lack of competence
d) Errors in rating and evaluation
e) Resistance

OPTIONS NO. OF PERCENTAGE


RESPONDE
NTS

Determining the evaluation criteria 32 64

Creating a rating instrument 14 28

Lack of competence 5 10

53
Errors in rating and evaluation 0 0

Resistance 0 0

35 32
a) determining the evaluation
30 criteria
25 b)creating arating instrument

20
c)lack of competence
14
15
d)errors in rating and evaluation
10
5
5 e) resistance
0 0
0
determining

competence

resistance
evaluation

c)lack of
criteria

e)
the
a)

In this section, I tried to figure out the knowledge and opinions of employees about Performance
management in general. I listed down the few parameters to know the reason of undertaking
performance management system in the company. There are mixes responses, according to
employees Reward allocation i.e. giving rewards on the basis of performance and Motivation being
the major reason for implementing Performance management system. Besides this, retention, to
identify training and development needs, to take decisions on promotions, transfers and
terminations, identifying barriers to performance are also some of the prominent causes for
implementing Performance management. Also, majority of employees says determining evaluation
criteria for employees is the most challenging aspect of performance management system, apart
from creating rating instrument are challenging aspects as well.

SECTION – D: PROCESS OF PERFORMANCE MANAGEMENT

Q1. To what extent do you agree that the following statements describe Performance Management
Processes in your Organization?

OPTIONS NO. OF PERCENTAGE


RESPONDENTS

54
Performance Related Pay is an essential part of
Performance management

strongly Disagree 50 100

Disagree 0 0

Neutral 0 0

Agree 0 0

Strongly Agree 0 0

60
50
50

40 strongly disagree
disagree
30 neutral
agree
20 strongly agree

10
0 0 0 0
0
strongly disagree neutral agree strongly agree
disagree

OPTIONS NO. OF PERCENTAGE


RESPONDENTS

55
Line managers Own and operate The
Performance Management Processes

strongly Disagree 25 50

Disagree 25 50

Neutral 0 0

Agree 0 0

Strongly Agree 0 0

0%
0%
0%
strongly disagree
disagree
neutral
50% 50% agree
strongly agree

OPTIONS NO. OF PERCENTAGE


RESPONDENTS

Performance
management
motivates individuals

strongly Disagree 0 0

Disagree 0 0

Neutral 0 0

Agree 23 46

Strongly Agree 27 54

56
0%
0%
0%
strongly disagree
46%
disagree
neutral
agree
54%
strongly agree

OPTIONS NO. OF PERCENTAGE


RESPONDENTS

Performance management is used to


manage organizational culture

strongly Disagree 0 0

Disagree 0 0

Neutral 25 50

Agree 25 50

Strongly Agree 0 0

57
0%
0%
0%
strongly disagree
disagree
neutral
50% 50% agree
strongly agree

OPTIONS NO. OF PERCENTAGE


RESPONDENTS

The effectiveness of Performance management is


measured in Qualitative rather than Quantitative
terms

strongly Disagree 0 0

Disagree 0 0

Neutral 10 20

Agree 40 80

Strongly Agree 0 0

0%
20%
strongly disagree
disagree
neutral
agree
strongly agree
80%

58
OPTIONS NO. OF PERCENTAGE
RESPONDENTS

The aims and Objectives of performance management are


well communicated and fully understood.

strongly Disagree 0 0

Disagree 32 64

Neutral 0 0

Agree 14 28

Strongly Agree 0 0

35 32

30

25
strongly disagree
20 disagree
neutral
14
15 agree

10 strongly agree

5
0 0 0
0
strongly disagree neutral agree strongly agree
disagree

2. Do you give an overall rating for performance?

a) Yes b) No

OPTIONS NO. OF PERCENTAGE


RESPONDENTS

YES 50 100

59
NO 0 0

60

50
50

40

YES
30
NO

20

10

0
0
YES NO

3. If yes, what sort of feedback do you give?


a) Numerical/alphabetical b) Verbal (all positive)

c) Verbal (positive and negative) d) Combination of the above

e) Others (pls. specify)

OPTIONS NO. OF PERCENTAGE


RESPONDENTS

Numerical/alphabetical

Verbal (all positive) 0 0

Verbal (positive and negative) 0 0

Combination of the above 50 100

Others (pls. specify) 0 0

60
60
50
50 a) numerical/alphabetical
40 b)verbal(all positive)
30 c) verbal(positive and negative)
20 d) combination of above
10 0 0 0 0 e)others(pls specify)
0

)
e)

e
ive
al

)
ov

ify
tiv
tic

ab

ec
ga
i
be

os

sp
ne

of
ll p
ha

ls
n
lp

d
(a

t io

(p
an
l/a

al

rs
na
rb
ica

ve

he
bi
ve

it i
er

ot
om
os
b)
m

e)
(p

c
nu

d)
al
a)

rb
ve
c)

OPTIONS NO. OF PERCENTAGE


RESPONDENTS

a. Coaching

strongly Disagree 0 0

Disagree 0 0

Neutral 31 62

Agree 18 36

Strongly Agree 0 0

61
35
31
30

25
1
20 18 2
3
15 4
5
10

5
0 0 0
0
1 2 3 4 5

NO. OF PERCENTAGE
RESPONDENTS

b. Training and development

strongly Disagree 0 0

Disagree 0 0

Neutral 22 44

Agree 27 54

Strongly Agree 0 0

62
30
27

25
22

20 strongly disagree
disagree
15 neutral
agree
10 strongly agree

5
0 0 0
0
strongly disagree neutral agree strongly agree
disagree

NO. OF PERCENTAGE
RESPONDENTS

c. Career Management and development

strongly Disagree 0 0

Disagree 0 0

Neutral 41 82

Agree 9 18

Strongly Agree 0 0

63
45 41
40
35
30
25
strongly disagree
20
disagree
15 neutral
9
10 agree
5 strongly agree
0 0 0
0
strongly disagree neutral agree strongly agree
disagree

d. Succession Planning

strongly Disagree 0 0

Disagree 0 0

Neutral 18 36

Agree 32 64

Strongly Agree 0 0

Q5. Did the following people receive training in performance management

Techniques? (Please tick as many boxes as appropriate)

All Employees Other Managers/team leaders

Heads of departments Appraisers

HR Team None

OPTIONS NO. OF PERCENTAGE

64
RESPONDENTS

All Employees 45 90

Heads of departments 5 10

HR Team 5 10

Other Managers/team leaders 5 10

Appraisers 5 10

None 0 10

50 45
45
40 a) all employees
35 b)heads of departments
30
c)HR team
25
d)Other managers/team leaders
20
15 e) Appraisers
10 5 5 5 5 f) none
5 0
0
f) none
managers/team
c)HR team
departments

e) Appraisers
employees

b)heads of
a) all

d)Other

leaders

SECTION – D: PROCESS OF PERFORMANCE MANAGEMENT

In this segment, I tried to take an overview of Performance management system of Uflex ltd. with
respect to various aspects. Majority of employees says that performance related pay is not followed
in the company, line managers doesn’t operate the performance management processes. Also,
performance management plays a major role in motivating individuals and it is used to manager
organizational culture. In the company, Effectiveness of performance management system is
measured in both Qualitative as well as Quantitative terms. Majority of employees are of the opinion
that aims and objectives of performance management are not well communicated i.e. system is not
transparent employees are not fully aware of the performance management practices in the
company. The company gives overall rating for the performance and the feedback is combination of
Numerical values, verbal and alphabetical. Coaching and career management are important facet of
the company’s process along with Training and development and succession planning. The most
important part is all employees receives training with respect to performance management
techniques.

65
66
CHAPTER-6
RESULTS

67
There is communication gap between higher level & staff level. So unsatisfied employee
cannot keep his/her comments and cannot oppose the final decision which is finally made by
only higher authority.

HERE IS THE SAMPLE OF KEY RESULT AREAS DESIGNED BY ME FOR THE


SALES DEPARTMENT:

KEY RESULT AREAS: SALES EXECUTIVES

K.R.A 1 - To deliver presentations of products at customer sites and at conferences and exhibitions.

K.R.A 2 – To maintain Company’s contact management database with accurate, up-to-date contact
and activity details

K.R.A 3 - To Meet annual sales targets and Produce monthly sales report.

K.R.A 4 - To Maintain contact with existing and potential customers to promote sales and deliver
detailed account plans

K.R.A 5 - Understand the market in which the company operates and how the company’s products
and services are used within that market

K.R.A 6 - Ensure that company has an in depth understanding of the users of company products
and their ongoing needs.

ASSISTANT MANAGER

K.R.A 1 - To Recruit and train sales force and assist in the management of the overall sales
operation for the Improvement business at a specific branch location.

K.R.A 2 - To assure total program success through motivating, coaching and developing a high
performance sales team.

68
K.R.A 3 -To Work closely with the Sales Department Head to learn and develop skills necessary to
lead a successful sales team.

K.R.A 4 - To look after the dealer/distributor network for increasing sales and maintaining
relationship with them.

K.R.A 5 - Visiting Corporate, Relationship Building, Selling Financial Products

K.R.A 6 – To do Researches, writes and implements policies, standards, procedures and best
practice documentation.

SALES DEPUTY MANAGER

K.R.A 1 – To develop and execute as well print, special issues/supplements, newsletters, catalogues
of the B2B magazines. Sell for awards, expos’, exhibitions, seminars.

K.R.A 2 – To Ensure that monthly targets for advertisements and collection of outstanding
payments are met and maintaining accurate sales forecasts and reports

K.R.A 3 - To Provide continuous communication to the customers about their samples, orders and
other logistics issues

K.R.A 4 - To Maintain excellent communication and coordination with Supply Chain, R&D,
Quality, Finance and Marketing

K.R.A 5 – To arrange for meeting revenue targets by developing, managing and growing the
business.

.K.R.A 6 - To Develop and promote market (country/region) specific products, execute market
specific policies.

SALES MANAGER

K.R.A 1 - Developing a business plan and sales strategy for the market that ensures attainment of
company sales goals and profitability

69
K.R.A 2 - Prepare action plans by individuals as well as by team for effective search of sales leads
and prospects.

K.R.A 3 - Provides timely feedback to senior management regarding performance. And Reporting
to Management about Performance of Sales Team.

K.R.A 4 - To Understand departmental financial data to determine what is happening in your


department. Review financial data that affects your department's profit centers

. K.R.A 5 – To Meet daily with salesman. And Offer them the coaching, counseling, advice,
support, motivation or information they need in order to help them meet their sales objectives

K.R.A 6 - Provides timely, accurate, competitive pricing on all completed prospect applications
submitted for pricing and approval, while striving to maintain maximum profit margin

70
CHAPTER-7
CONCLUSION AND
SUGGESTIONS

 There is Traditional/ Biased Performance management system in the sense that all the
authority lies in the hands of senior management irrespective of the performance level of
individuals.

71
 It is inferred that Performance management system is crucial for any organization, so
organization must invest in specific technology oriented products and services, software &
hardware to improve the performance of employees.

 Performance management system is quite traditional in the company, recent technologies are
not adopted.

72
73
CHAPTER-8
BIBLIOGRAPHY

References
1) Rao T.V( Performance Management and appraisal system) 2005 fourth printing
2) Sahu R.K (Performance Management System) 2007 edition
3) Michael Armstrong and angela Baron(Managing Performance Management in action) 2005
first edition
4) Decenzo ,A David , Robbins P Stephens ( Personnel and human Resource Management)
Ashok K Ghosh Publications 2007 Edition

74
Websites
www.citehr.com
www.Performanceappraisal.com
www.123manage.com
www.tvrls.com
www.humanresourceabout.com
www.chrmglobal.com

75
76
77
ANNEXURE

78