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Performance Management as a System in B. G. Shirke Construction

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Thesis · March 2016

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 Project
On

“A Study on Performance Management as a System in B. G. Shirke Construction Technology Company

Ltd. Pune”

Submitted to:

The Bharati Vidyapeeth Deemed University, Pune

For

Partial Fulfilment for Award of

M.S.W

Specialization

In

Human Resource Management & Labour Welfare

By

Mr Mohammad Amiri

M.S.W, Specialization Human Resource management and labour welfare

Roll No: 50

Under the Guidance of

Dr. S. I. Kumbhar

Associate Professor,

Department of Social Science Centre

Bharati Vidyapeeth Deemed University, Pune

2015-2016

1
 A PROJECT REPORT

ON

“A Study on Performance Management as a System in B. G. Shirke Construction Technology Company

Ltd. Pune”

Submitter by

Mohammad Amiri

In partial fulfilment of

Master of Social Work (MSW)

Social Science Center

Bharati Vidyapeeth Deemed University

Pune-41103

2015-2016

Dr. S. I. Kumbhar Dr. G .R. Rathod

Research Guide Director

2
CERTIFICATE

3
 DECLARATION

I, the undersigned, hereby declare that research work done on the topic “A Study on
Performance Management as a System in B. G. Shirke Construction Technology Company Ltd. Pune” has
been carried out by Mohammad Amiri under the guidance of Dr. S. I. Kumbhar.

I further declare that, this is my original work and has not been submitted for any other
purpose.

Place: Pune Mohamamd Amiri

Date: Researcher

4
 Acknowledgements

I am greatly indebted to that entire person who has extended their valuable help and co-operation to me in
completing the present study.

To begin with, I express my deep senses of gratitude towards my research guide Dr. S.I. Kumbhar Associate
Professor in Bharati Vidyapeeth University, Pune, who has rendered effective guidance in methodology and
analytical aspect of the study.

Every project big or small successful largely due to the effort of a number of wonderful people who have
always given their valuable advice or lent a guidance of all those people who have been instrumental in
making this project a success.

I am indebted also to Shri Prashant Ambulgekar sir (HR-Vice president) B.G. Shirke Company for giving me
permission to do research study and for them generous help and information from time to time in connection
with my research work.

I am also grateful to the employees of B. G. Shirke who gave me full co-operation and support by providing
necessary inputs required at different stages of my project work.

Thanks and regards

Date: Mohammad Amiri

5
 Contents
Chapter Topic Page
No

Chapter 1  Introduction on the impact of performance management 9-14

 Definition of performance management
 Significance of performance management
 Objectives of performance management
 Concerns of a performance management system in an organization
 Types of goals

Chapter 2  Selection of the topic 5-19

 Objectives of the study
 Hypothesis of the study
 Area/ universe of study
 Methodology of study
 Sampling method
 Data collection
 Primary method
 Interview schedule
 Discussion with eminent person in the company
 Secondary method
 Secondary data
 Interview sources
 External sources
 Analysis of data
 Importance of study
 Chapter scheme

Chapter 3  Review Literature 20-27

Chapter 4  Profile of the Company 28-43

 Historical background of B. G. Shirke
 Company vision (B. G. Shirke)
 Company mission (B. G. Shirke)
 Objective of company (B. G. Shirke)
 Health and safety policy
 Division of the company (B. G. Shirke)
 Civil division
 Transmission division
 Concrete equipment division (CEO)
 Siprox
 Project
 HR Department
 IR
 Performance Management System
 Branches of office
 Organizational chart

Chapter 5  Data Analysis and Interpretation 44-65

Chapter 6  Finding, Conclusion, Hypothesis testing, Suggestion 66-74
Appendix I  Interview Schedule 75-81
Appendix II  Bibliography 82-86

6
 LIST OF TABLES

TABLE TITLE PAGE

NO NO
1 Gender Wise Distribution of Respondents 46
2 Age Wise Distribution of Respondents (Years) 46
3 Work experience of the respondents 47
4 Respondents’ Work Group (Categories) 48
5 Techniques of Performance Management Adopted in the Selected 49
Organizations
6 Elements of Performance Management System 50
7 Reasons for Implementing Performance Management System in the 51
Organization
8 Linkage Between Individual, Team and Organizational Objectives 52
9 Determinants for Job Performance (Respondents’ Opinion) 53
10 Table 10, Linkage Between Performances Linked Pay and Performance 54
Management System
11 Performance Appraisal get Done Because of the Requirements of 55
Performance Management Systems
12 Time of Performance Planning Carried Out 56
13 Number of Meetings Scheduled in a year for Discussing Employees’ 56
Performance
14 Categories of Employees Receiving Training in Performance Management 57
15 Causes of Failure of Performance Management system 57
16 Particular Stage of Performance Management During Which There is a 58
Communication with Employees By Supervisors
17 Policy Adopted for Better Performance 59
18 Role Performed Better as an Appraiser (Employee’s Opinion) 60
19 Performance Management Process Carried out Objectively (Employees’ 60
Opinion)
20 Opinions on Employee Self-Appraisal 61
21 Psychological Barriers in the Performance Management Process 62
(Employees’ Opinion)
22 Results of Linking Rewards to Performance Management (Employees 63
Opinion)
23 Trends with Regards to Attrition in the Post Appraisal Phase 63
24 Effectiveness of Performance Management System (Employees’ Opinion) 64
25 Approach for Improving Effectiveness of Performance Management System 64
(Employees Opinion)
26 Opinions on Employee Self-Appraisal 71

7
 LIST OF FIGURES

FIGURE TITLE PAGE

NO NO
1 Gender Wise Distribution of Respondents 46
2 Age wise Distribution of Respondents (years) 47
3 Work Experience of the Respondents 48
4 Respondents’ Work Group (Categories) 49
5 Techniques of Performance Management Adopted in the Selected 50
Organizations
6 Reasons for Implementing Performance Management System in the 51
Organization
7 Linkage Between Individual, Team and Organizational Objectives 52
8 Determinants for Job Performance (Respondents’ Opinion) 53
9 Linkage Between Performances Linked Pay and Performance Management 54
System
10 Performance Appraisal get done Because of the Requirements of 55
Performance11, Management Systems
11 Number of Meetings Scheduled in a year for Discussing Employees’ 56
Performance
12 Causes of failure of Performance Management System 58
13 Particular stage of Performance Management During Which There is a 59
Communication with Employees by Supervisors
14 Role performed better as an appraiser (Employee’s Opinion) 60
15 Opinions on Employee Self-Appraisal 61
16 Psychological Barriers in the Performance Management Process 62
(Employees’ Opinion)
17 Trends with Regards to Attrition in the post Appraisal phase 63
18 Effectiveness of Performance Management System (Employees’ Opinion) 64

8
 CHAPTER-I
INTRODUCTION

9
 CHAPTER-I

Introduction on the impact of Performance Management

INTRODUCTION

The performance management system is a process of setting objectives, making plans to achieve those
objectives and accomplishing the desired result. Rewards and recognition are the end stage of the process.
Organization uses this system to assess the performance of an individual, a team, a function and then the
organization on the whole.

In the business world investment is made in machinery, equipment and service. Time and money is spent
ensuring that they provide what their suppliers claim. In other words, the performance is constantly appraised
against the expected result.

When it comes to one of the most expensive resources companies invest in, namely people, the job appraising
performance against result is often carried out with the same objectivity. Performance appraisal has
increasingly become part of more strategic approach for integrating HR activities and business policies and
may now be seen as a generic term covering a variety of activities through which organizations seek to assess
employees and develop their competence, enhance performance and distribute reward. Appraisal is a
continuous process and done normally as a formal exercise before the completion of the financial year.
Appraisal has tremendous motivational impact on people through meaningful feedback and is powerful tool
for recognition. This project tends to explain performance appraisal system and tries to find out how
efficiently performance appraisal is conducted. And if performance appraisal doesn’t meet its objective then
what are the factors causing failure.

Performance appraisal is a combination of issues that need to be considered e.g. content appraisal, how to
appraise, who conducts appraisal and who is appraised, when and how often, how to tell and use results, etc. it
is not easy to set up suitable and efficient appraisal that would suit organizations’ and employees’ expectations
as well.

Inadequate performance appraisal system is very costly and does not produce any benefits for organization and
its employees, each individual has a role to play and management has to ensure that the individual’s objectives
translate into overall corporate objectives of the company. Performance management includes the performance
appraisal process which in turn helps identifying the training needs and provides a direction for career and
succession planning.

10
SIGNIFICANCE OF PERFORMANCE MANAGEMENT

The study will help the organization about knowing each employee’s strengths, weaknesses and any other
aspect which affects the work environment, study will help to create awareness among employees and
employees will be working according to the standards and beyond that. The important part of study is to reveal
what employees think about the performance management system of the company.

Study will help to find out improvements required in the current performance management system and also
would be helpful for deciding future strategies of the company for performance appraisal. Training and
development program can be planned considering the feedback given by the employees during this project.

DEFINITION OF PERFORMANCE MANAGEMENT

1. Performance management is a process that provides feedback, accountability, and documentation for
performance outcomes. It helps employees to channelize their talents toward organizational goals.

2. The management of employees, departments, and organizations to ensure that goals and objectives are
being reached efficiently and effectively. Performance management involves defining what effective
performance looks like, as developing the tools and procedures necessary to measure performance.

3. Performance management is an ongoing process of communication between a supervisor and an

employee that occurs throughout the year, in support of accomplishing the strategic objectives of the
organization. The communication process includes clarifying expectations, setting objectives, identifying
goals, providing feedback, and reviewing results.

4. According to Lockett (1992), performance management aims at developing individuals with the required
commitment and competence for working towards the shared meaningful objectives within an organizational
framework.

Performance management frameworks are designed with the objective of improving both individual and
organizational performance by identifying performance requirements, providing regular feedback and assisting
the employees in their career development.

Performance management aims at building a high performance culture for both the individuals and the teams
so that they jointly take the responsibility of improving the business processes on a continuous basis and at the
same time raise the competence bar by upgrading their own skills within a leadership framework. Its focus is
on enabling goal clarity for making people do the right things at the right time. It may be said that the main
objective of a performance management system is to achieve the capacity of the employees to the full potential

11
in favour of both the employee and the organization, by defining the expectations in terms of roles,
responsibilities and accountabilities, required competencies and the expected behaviours.

The main goal of performance management is to ensure that the organization as a system and its
subsystems work together in an integrated fashion for accomplishing optimum results or outcomes.

Objectives of Performance Management

The major objectives of performance management are discussed below:

 To enable the employees towards achievement of superior standards of work performance.

 To help the employees in identifying the knowledge and skills required for performing the job
efficiently as this would drive their focus towards performing the right task in the right way.

 Boosting the performance of the employees by encouraging employee empowerment, motivation and
implementation of an effective reward mechanism.

 Promoting a two-way system of communication between the supervisors and the employees for
clarifying expectations about the roles and accountabilities, communicating the functional and
organizational goals, providing a regular and a transparent feedback for improving employee
performance and continuous coaching.

 Identifying the barriers to effective performance and resolving those barriers through constant
monitoring, coaching and development interventions.

 Creating a basis for several administrative decisions i.e. strategic planning, succession planning,
promotions and performance based payment.

 Promoting personal growth and advancement in the career of the employees by helping them in
acquiring the desired knowledge and skills.

Some of the key concerns of a performance management system in an organization are:

 Concerned with the output (the results achieved), outcomes, processes required for reaching the results
and also the inputs (knowledge, skills and attitudes).

 Concerned with measurement of results and review of progress in the achievement of set targets.

 Concerned with defining business plans in advance for shaping a successful future.

 Striving for continuous improvement and continuous development by creating a learning culture and
an open system.

12
  Concerned with establishing a culture of trust and mutual understanding that fosters free flow of
communication at all levels in matters such as clarification of expectations and sharing of information
on the core values of an organization which binds the team together.

 Concerned with the provision of procedural fairness and transparency in the process of decision
making.

The performance management approach has become an indispensable tool in the hands of the corporates as it
ensures that the people uphold the corporate values and tread in the path of accomplishment of the ultimate
corporate vision and mission. It is a forward looking process as it involves both the supervisor and also the
employee in a process of joint planning and goal setting in the beginning of the year.

Goals are generally one of the following types:

 Operational/Task goal: A goal may clarify a job duty with more specific, measurable or qualitative
criteria, e.g. "Answer each email within 1 working day." "Reconcile unit balances by close of business
each day."

 Performance Improvement goal: A goal may outline specific areas of improvement needed to
achieve a rating of "Meets Expectations," e.g. "Improve timeliness by submitting financial report two
days after transactions are posted." "No unauthorized absences in the next four weeks."

 Developmental goal: A goal may outline specific ways to enhance job skills, e.g. "Improve working
knowledge of Excel by attending a workshop within 60 days."

 Project goal: A goal may define the desired outcome or milestones to achieve in a project, e.g.
"Develop and implement on-line leave reporting system."

 Managerial goal: A goal may emphasize specific managerial tasks or characteristics, e.g. "Monitor
work assignments by weekly review of project status with staff."

After a specific goal and objective has been set for the review period, the supervisor completes the Goals and
Objectives online. To access the goals and objectives online, log to GUS, click on "Payroll-Personnel
Information," then "Classified Employee Performance Management Process." Click on "Manage" under
Objectives. The supervisor should describe the goal in detail and should note when the goal and objective will
be assessed if it will be assessed before the end of the review period. Click on "Submit" when complete. This
will send email notification to the employee.

If using a paper form, the supervisor may now print the goals and objectives with a signature block for the
employee to sign. Click on "Manage" and click on "Print This Page."

13
If using the online process, the employee can now access the goals and objectives online by logging to GUS,
click on "Classified Employee Performance Management Process," and click on "View" under Objectives.

The supervisor and employee meet to discuss the goal and objective. If using a paper form, the employee signs
the form and the supervisor gives the employee a copy of the form and sends the original to HRS.

New goals and objectives may be set at any time during the review period, and current goals and objectives
may be modified during the review period provided that there is at least 30 calendar days before the end of the
review period. Each new and/or modified goal should be signed by the supervisor and employee as noted
above. Changes or additions to goals and objectives cannot be made less than 30 days before the end of the
review period.

14
 CHAPTER 2

RESEARCH METHODOLOGY

15
 CHAPTER-II
Research Methodology

INTRODUCTION

Performance Management is an integrated activity that constitutes goal setting of the organization and
development of workforce. Performance Management activity is concerned not only with the performance of
workforce but is also concerned with the overall performance of the organization. It includes thinking through
facets of employees’ performance, identifying critical issues in performance management, planning, reviewing
and improving performance of workforce.

SELECTION OF THE TOPIC

In India Performance Management is a new topic. The researcher is mainly interested in studying the
practicability of performance management system as a tool in HR system, a researcher mainly focuses on
performance management and performance appraisal and its impact on employment, efficiency, quality
improvement, quality of work life in B G SHIRKE com ltd, Pune.

OBJECTIVES OF THE STUDY

1. To understand the performance management system in B. G. Shirke;

2. To understand performance management as a tool for improving performance;
3. To study employees’ view toward new appraisal system and their suggestion;
4. To study the effectiveness of the new system as compared to the earlier system;
5. To study the process and methods of existing performance management systems.
6. To identify the effect of performance reviews techniques on the employees’ performance.

HYPOTHESES OF THE STUDY

The researcher has formulated following hypothesis for the present Study.

1. Self-appraisal is highly beneficial in performance appraisal system

2. Performance appraisal causes feeling of insecurity
3. Self-appraisal is the preferred technique used in Performance Management System

AREA AND UNIVERSE OF THE STUDY

The universe selected for the study is,” B G SHIRKE Company ltd Pune” the universe is divided in 3
categories namely:

1. Managerial staff
2. Clerical staff

16
 3. Graduated trainee HR of B. G. Shirke Company ltd, Pune.

RESEARCH METHODOLOGY OF STUDY

SAMPLING METHOD

Sampling method plays an important role in any research design. The basis attention will be sampling. To
make generalization and to draw calculations, it is necessary to know who or what is described by the dates.
Respondents from all the units of the universe are more reliable in this study.

The B. G. Shirke co ltd has strength of nearly 260 employer and employees.

The sampling method used for study is stratified random sampling. The researcher selected 120 samples of the
universe i.e.260. The researcher has completed this study within a short time. The researcher has selected 120
samples from out of total universe of B. G. Shirke ltd, Pune.

DATA COLLECTION

Tools of data collection are very important as these help as guiding posts to the study and at the same time
eliminate wasteful expenditure of time and concurring in the study. Methodology adopted here in process of
project work consists of primary as well as secondary data.

1) PRIMARY METHOD

Primary data of the study was collected with the help of interview schedule and discussion with eminent
executives of the company.

a) Interview schedule

A structure interview schedule was prepared by the student researcher, the researcher has conducted the
interviews of the respondents with the help of interview schedule and collected the required data.

b) Discussion with eminent persons in the company

The student researcher discussed with HR Vice-President, manager and also officers about the various
programmes to the conducted by them to develop human potential, efficiency etc.

2) SECONDARY METHOD

1. Secondary Data: For secondary data files, personnel reports documents etc. were referred to which are
maintained by the HR department and preserved in the company library at B G SHIRKE co ltd. And the
theory has been collected from book and tests on the performance management.

17
It consists of information that already exists somewhere but had been collected for another purpose. The
two type of secondary source are as under:

1.0 Internal sources

1. Annual report
2. Company souvenir
3. Appraisal forms

1.1 External sources

External sources of secondary data are generated from sources outside the organization.

The secondary data was obtained from published and unpublished literature on the topic and from journals,
newspapers, books, websites, magazines, case studies or any other relevant services.

ANALYSIS OF DATA

After collection of data codes were given to the data and then master sheet was prepared. After preparing the
master sheet tabulation and graphic representation of data was done.

IMPORTANCE OF STUDY

The study would help the organization in having knowledge about each employee’s strengths, weaknesses and
any other aspect which affects the work environment. Study would help to create awareness among employees
and employers according to the standards programmes and beyond that. The important part of study is to
reveal what employees think about the performance management system of the company.

Study will help to find out improvements required in the current performance management system and also
will be helpful for deciding future strategies of the company for performance appraisal, training and
development program can be planned by considering the feedback given by the employees during this study.

18
CHAPTER SCHEMES

Chapter-I

Introduction to the Subject

Chapter-II

Research Methodology

Chapter-III

Review Literature

Chapter-IIII

Organizational Profile

Chapter-IV

Data Analysis

Chapter-V

Findings, Conclusion, Hypothesis testing, and Suggestion

19
 CHAPTER-3

REVIEW LITERATURE

20
 CHAPTER-III
Review Literature

INTRODUCTION

Performance management is an ongoing process of communication between a supervisor and an employee

that occurs throughout the year, for the purpose of accomplishing the strategic objectives of the organization.
The communication process includes clarifying expectations, setting objectives, identifying goals, providing
feedback, and reviewing results.

According to Lockett (1992), performance management aims at developing individuals with the required
commitment and competence for working towards the shared meaningful objectives within an organizational
framework.

Performance management frameworks are designed with the objective of improving both individual and
organizational performance by identifying performance requirements, providing regular feedback and assisting
the employees in their career development.

Performance management aims at building a high performance culture for both the individuals and the teams
so that they jointly take the responsibility of improving the business processes on a continuous basis and at the
same time raise the competence bar by upgrading their own skills within a leadership framework.

Angelita Become& David Insler, (2011), organization that get most impacted by the performance
management are those that use it as a tool to differentiate performance, create a foundation for coaching and
drive business result. To improve its performance process, an organization must analyse not only the design of
its program; but also the key drives of a successful system. Leadership champion, and differentiated individual
outcomes driver by calibration and business critical goal alignment, all of which support performance
conversations for effective coaching.

Armstrong & Baron, (1998), Performance management is the strategic & integrated approach to delivering
sustained success to organizations by improving the performance of the people who work in them and by
developing the capability of the teams and individual contributors. These findings also support the view of
Akata (2003) who considers performance management as a systematic and holistic process of work planning,
monitoring and measurements aimed at continuously improving the teams and individual employee’s
contribution to achievement of organizational goals.

Idemobi & Onyeizugbe, (1998), performance management is a comprehensive approach to planning and
sustaining improvement in the performance of employees to meet the standards. The absence of a performance
management system will contribute a high rate of business failure in the company.

21
Study by DDI, (1997), Performance management practices the most recent performance management study. It
proves that successful organizations realize that performance management is a critical business tool in
translating strategy into result. The CEOs in a majority of the 88 organizations surveyed say, their
performance management system drives key factors associated with both business and cultural strategies.
Performance management systems directly influence five critical organizational outcomes: financial
performance, productivity, product or service quality, customer satisfaction and employee job satisfaction.
When performance management systems are flexible and linked to strategic goals, organizations are more
likely to see improvement in the five critical areas: team objectives, non-manager training, appraiser
accountability and links to quality management are the specific practices most strongly associated with
positive outcomes.

Watkins, (2007), buts it, most public sector business organization like those in Delta state of Nigeria have not
given adequate attention to performance management review as a tool for improving performance, even when
recent studies suggest that performance reviews benefit organizational performance in both private and public
sectors. Performance management has been described as a systematic approach to the management of people.
Using performance goal measurement, feedback and recognition is a means of motivating employees to realize
their maximum potential. Public sector business organizations that strive to deliver quality services at
competitive prices are those that embrace various performance review practices to assess their employee
performance and motivate them with incentives.

Gary Dessler & Biju Varkkey, performance management is the continuous process of identifying,
measuring, and developing the performance of individuals and teams and aligning their performance with the
goals of an organization.

Weiss & Hartle, Performance management is a process for establishing a shared understanding about what is
to be achieved and an approach to managing people, that increases the probability of achieving success.

Bititci, Carrie & McDevitt, (1997), Define Performance management as a ‘process by which the company
manages its performance in line with its corporate and functional strategies and objectives’. This definition is
often used in management research studies. According to Bititci, Carrie & McDevitt, it is the objective of that
process to provide an integrated control system, where the corporate and functional strategies are deployed to
all business processes, activities, tasks and personnel, and feedback is obtained through the performance
measurement system to enable appropriate management decisions. The ultimate purpose of that process is to
improve company performance.

Lebas, (1995), Performance measurement is an essential part of the performance management. By measuring,
people transform complex reality into simplified numerical concepts that can be easily communicated and
acted upon (). According to Lebas, the simplification of reality by measuring is the prerequisite of successful
management. Similary, Bititci et al. 1997 argue that performance measurement is at the heart of performance

22
management process and it is of critical importance to the effective and efficient functioning of performance
management.

Bratton & Gold (2005), Performance management system is a systematic attempt to link organisational
strategy to that of employees through the integration of activities that assess, appraise, develop and reward
employees.

Halifax, Performance management system ensures excellent leadership and high quality of coaching and it
goes a long way to mentor relationship among different managers and teams. Managing performance is about
coaching, guiding, motivating and rewarding colleagues to help in building their potential and in improving
organisational performance.

Scottish parliament, Further state that Performance management is planned to ensure that our action is
guided by our values and is relevant to the principle of the organisation.

Catherine Jablonsky (2010), Performance management requires a manager to decide which metric is
effectively followed by key process also he should keep in mind how to Plan, Monitor, Act, Review, and also
how to adjust target by changing business or operational conditions.

Ketter (2010), Advocated the performance management arguing that a middle manager should execute the
business strategies and motivate employees to attain aspired goals with the usage of performance management.
To understand more about performance management, it is essential to know performance management cycle
and performance management matrix: The Management cycle, Figure: 1.1 the management cycle, (Source:
Armstrong 2006, P.17)

Armstrong (2006), Performance management is a systematic process of improving organizational

performance by developing performance of an individual or a team. In wider sense getting better result from
an individual or a team or from an organization by managing and understanding performance within an agreed
framework of planned goals and standards and competence required for it”.

Performance management is a process that provides feedback, accountability, and documentation for
performance outcomes. It helps employees to channel their talents toward organizational goals.

To enables The management of employees, departments, and organizations to ensure that goals and objectives
are being reached efficiently and effectively. Performance management involves defining what effective
performance looks like, and developing the tools and procedures necessary to measure performance.

Performance management is an ongoing process of communication between a supervisor and an employee that
occurs throughout the year, in support of accomplishing the strategic objectives of the organization. The
communication process includes clarifying expectations, setting objectives, identifying goals, providing
feedback, and reviewing results.

23
Lockett (1992), Performance management aims at developing individuals with the required commitment and
competence for working towards the shared meaningful objectives within an organizational framework.

Beer and Rush (1976), Performance management is an innovative appraisal and development system. It is
intended to be an improvement on the traditional performance appraisal system that is generally seen as
subjective and plagued by varied problems.

T. V. Rao, Performance management involves thinking through various facets of performance, identifying
critical dimensions of performance, planning, reviewing, and developing and enhancing performance and
related competence.

According to Armstrong and Baron (1998), Performance Management is both a strategic and an integrated
approach for delivering successful results in organizations by improving the performance and developing the
capabilities of teams and individuals.

Performance Management is an integrated activity that constitutes goal setting of the organization and the
development of workforce. Performance Management activity is concerned not only with the performance of
workforce but also concerned with the overall performance of the organization. It includes thinking through
facets of employees’ performance, identifying critical issues in performance management, planning, reviewing
and improving performance of workforce.

The present study has examined the current Performance Management system of selected manufacturing
organizations situated in Pune. The present study has highlighted the perceptions of HR professionals about
Performance Management and has also focused on the psychological barriers in the performance management
system.

Performance management is the current buzzword and is the need of the current times of cut throat
competition and organizational battle for leadership. Performance management is quite broad and a
complicated function of HR, as it encompasses activities such as joint goal setting, continuous progress review
and frequent communication, feedback and coaching for improved performance, implementation of employee
development programmes and achievements of rewarding.

Performance management can be regarded as a systematic process by which the overall performance of an
organization can be improved by raising the performance of individuals within a team framework. It is a
means for promoting superior performance by communicating expectations, defining roles within a required
competence framework and establishing achievable benchmarks.

According to Brumbrach (1988, cited in Armstrong, 2000), Performance can be actions as well as their
consequences. Behaviors originate from a performer and convert performance from a concept to an act. Not

24
just the instruments for results, behaviors are also outcomes in their own right - the product of mental and
physical effort applied to tasks - and can be judged apart from the results.

Noe et al (2006). Performance management is "the process through which managers ensure that employees'
activities and outputs are congruent with the organisation's goals".

Beer and Ruh (1976). The concept of performance management has contributed a lot in the development
Human Resource Management in the recent years.

McKirchy (1998), Performance appraisals should focus on three objectives: performance, not personalities;
valid, concrete, relevant issues, rather than subjective emotions and feelings; reaching agreement on what the
employee is going to improve in his performance and what you are going to do.

C. D. Fisher L. F. Schoenfeldt and J. B. Shaw have defined The process by which an employee’s
contribution to the organization during specified period of time is assessed.

Gary Dessler defined “Performance appraisal as means of evaluating an employee’s current and or past
performance relative to his or her performance standards”

Bellows said “Performance appraisal is defined as a systematic periodic evaluation of the worth of an
individual of an organization, usually judged by a superior or someone in position to observe his
performance”.

Beach said “Performance appraisal is the systematic evaluation of the individual with respect to his
performance on the job and his potential of development”

William B. Weather and Keith Davis said “Performance appraisal is the process by which organization
evaluates an individual’s job performance”

John Douglas, Stuart Klein and David Hunt defined “Performance appraisal as a systematic evaluation
review of employees’ meaningful job behavior with respect to their effectiveness in meeting their job
requirements and responsibilities”

Leon C. Megginson has defined Performance appraisal is the process an employer uses to determine whether
an employee is performing the job as intended. (Merit rating, efficiency rating, service rating and employee’s
appraisal are other frequently used terms for performance appraisal)

Wayne F. Cascio has defined “performance appraisal as the systematic description of an employee’s job-
relevant strengths and weaknesses”

25
By others authors:

Performance management (PM), includes activities which ensure that goals are consistently being met in an
effective and efficient manner. Performance management can focus on the performance of an organization,
a department, employee, or even the processes to build a product or service, as well as many other areas.

Performance management is the process through which supervisors and those they lead gain a shared
understanding of work expectations and goals, exchange performance feedback, identify learning and
development opportunities, and evaluate performance results.

Performance Management is a structured visual approach for monitoring the business performance,
highlighting issues & reacting to them in a timely manner

Performance appraisal is the formal assessment on the appraiser’s performance for the appraisal period. It
covers the following aspects: - how effectively the agreed objectives/responsibilities have been carried out and
targets met; - whether the effectiveness has been adversely affected by any constraints or obstacles; - the
strengths and weaknesses of the appraise which affected or will affect the officer's further development; and -
what sort of personal/career development and training actions should be taken.

Performance management is a forward-looking process used to set goals and regularly check progress toward
achieving those goals. In practice, an organization sets goals, looks at the actual data for its performance
measures, and acts on results to improve the performance toward its goals.

Performance management is a process for setting goals and regularly checking progress toward achieving
those goals. It includes activities that ensure organizational goals are consistently met in an effective and
efficient manner. The overall goal of performance management is to ensure that an organization and its
subsystems (processes, departments, teams, etc.), are optimally working together to achieve the results desired
by the organization. Performance management has a wide variety of applications, such as, staff performance,
business performance, or health care, health outcome performance measures.

Performance management is essentially about the management of expectations. It creates a shared

understanding of what is required to improve performance and how this will be achieved by clarifying and
agreeing what people are expected to do and how they are expected to behave and use these agreements as the
basis for measurement, review and the preparation of plans for performance improvement and development.

Performance management is: ‘The development of individuals with competence and commitment, working
towards the achievement of shared meaningful objectives within an organisation which supports and
encourages their achievement (Lockett).

Performance management is managing the businesses (Mohrman).

26
Performance management is: the process of ‘Directing and supporting employees to work as effectively and
efficiently as possible in line with the needs of the organisation (Walters).

Performance management is concerned with the encouragement of productive discretionary behaviour

(Purcell and his team at Bath University School of Management).

We expect line managers to recognise it [performance management] as a useful contribution to the

management of their teams rather than a chore (Centrica).

Managing performance is about coaching, guiding, motivating and rewarding colleagues to help unleash
potential and improve organisational performance. Where it works well it is built on excellent leadership and
high quality coaching relationships between managers and teams (Halifax BOS).

Performance management is designed to ensure what we do is guided by our values and is relevant to the
purposes of the organisation (Scottish Parliament).

27
 CHAPTER-4

PFOFILE OF THE ORGANISATION

28
 CHAPTER-IV
Profile of the Organization

HISTORICAL BACKGROUND

B. G. Shirke Construction Technology Private Limited (BGSCTPL), formerly known as B. G. Shirke &
Company, was established in 1944 by its Founder Chairman, Mr B. G. Shirke. BGSCTPL is a multi-
disciplinary civil, mechanical and electrical engineering organization having international technology tie-ups
and over 12,000 workforce. It is a vibrant, dynamic and integral part of modern India, significantly
contributing to industrial, economic and social progress. BGSCTPL also plays an active role in protecting and
preserving the country’s eco-systems – its forests and waterways. Company is well established in the civil
engineering field for over 65 years.

The Mission to Industrialize Civil Engineering – in the gigantic effort to provide affordable, high quality mass
housing – has already been achieved with Herculean efforts and unique unflinching dedication. BGSCTPL is
endeavouring to spread and entrench Industrialized Civil Engineering Technology throughout the country for
the good of all.

BGSCTPL also pioneered and patented the ‘3-S’ system in India – a system using partial pre-cast structural
components, such as dense concrete hollow core columns, dense concrete partially pre-cast beams, lintels,
staircases, etc., and Siporex blocks and slabs to achieve strength, safety and speed.

The Company has so far executed more than 2, 00,000 dwelling units using ‘3 S’ system, both in India and
Overseas, in all types of climatic conditions and heavy rainfall areas. At present, it executes very large
housing, industrial and commercial projects in India on Turnkey Lump sum Basis by the use of proven prefab
products and/or also by the conventional methods and materials. It also undertakes projects on Turnkey Lump
sum Basis including Planning, Designing and Execution. ‘3 S’ system of building construction has been used
successfully for high-rise residential buildings unto 25 stories.

BGSCTPL has also expertise in design, fabricate and erection all types of heavy steel structures, shuttering
and cantering.

Of late, to move with times, BGSCTPL has diversified in infrastructure developments and completed two road
projects on NH-4 between Pune-Satara-Kolhapur, part of a “Golden Quadrilateral” and one road project at
Panvel. BGSCTPL has developed expertise in construction of Highways, Bridges and Marine Structures as
well.

Over the years, BGSCTPL have acquired the expertise in the field of construction in the following areas using
Conventional as well as prefab technology and resources

29
 Mass Housing Projects

 Residential Multi-storeyed Buildings

 Commercial Buildings

 Industrial Buildings / Sheds

 IT Parks

 Roads

 Bridges, Flyovers, Underpasses

 Sports Facilities / Complexes

 Hotels, Auditoriums

 Airports

 Our registration in highest/unlimited special class/category with many organization and track record of
repeated orders from many vendors endorses our reputation and capabilities.

 Public Works Department (PWD) Maharashtra, Karnataka, Andhra Pradesh and Tamilnadu

 Military Engineering Services (MES)

 Brihan Mumbai Muncipal Corporation (BMC)

 Pune Municipal Corporation (PMC)

 CIDCO of Maharashtra Ltd.

 Maharashtra Housing & Area Development Authority (MHADA)

 Pimpri Chinch wad Municipal Corporation (PCMC)

 Pimpri Chinch wad New Town Development Authority (PCNTDA)

 Karnataka Housing Board (KHB)

 The Singareni Collieries Co. Ltd. (SCCL)

 Maharashtra State Electricity Board (MSEB)

 Delhi Development Authority

 Post-Harvest Equipment Division (PHED)

30
 Post-Harvest Equipment Division (PHED) is pioneer in design, manufacture, supply installation and
commissioning of Galvanized Iron Corrugated (GIC) Silos ranging from 5 MT to 12,500 MT grain
holding capacity, including Grain pre-Cleaners, Conveyors, Elevators on turnkey basis for free flowing
grains for more than 30 years. So far we have supplied and installed over 380 GIC silos with allied
equipment on turnkey basis all over India as well as overseas viz. U.K., Nigeria, Tanzania and
Ukraine, which are working well. With the innovative R&D practices, we have successfully extended
applications of GIC Silos in the fields like Agro Based Industries, Breweries, Roller Flour Mills,
Solvent Extraction Plants, Starch Plants, Rice Mills, Oil Mills, Cattle and Poultry Feed Industries,
Grain Based Distilleries, Sugar Industries, etc.

 Transmission Tower Division

 The Division is having design, manufacturing and testing facilities for fabrication, galvanizing, supply,
civil foundation, erection and painting of Transmission and Microwave / Telecommunication Towers
of various heights and designs on turnkey basis. The assessed manufacturing capacity of our factory is
@ 20,000 tons / annum.
 We also undertake all required civil work at one location / site for foundation of D.G. set & BTS
including fencing wall and security room etc. We also provide necessary help for acquiring plot / land
for mutual benefit on behalf of the client, if necessary.

During last 25 years, this division has fabricated and galvanized more than 1, 00,000 tons of
transmission towers / structural material. Our manufacturing facility has been approved by
various State Electricity Boards, National Thermal Power Corporation, Nuclear Power Corporation
Of India Limited, Power Grid Corporation of India Ltd., Bharat Heavy Electricals Ltd., Indian
Railways, BPL Cellular Ltd. & Bharti Televentures Ltd., etc.
 Concrete Equipment Division (CED)
 With a view to achieve our Mission of Total Industrialization of Civil Engineering, B. G. Shirke
Construction Technology Pvt. Ltd. started manufacturing of New Building Materials and Construction
Equipment’s under one roof. Concrete Equipment Division (CED) is one of them, which started in
1988 with the state of art manufacturing plant at Pune and Marketing Offices in Mumbai, Hyderabad,
Bangalore, Delhi and Nagpur.
 CED manufacturers Automatic Concrete Weigh Batching and Mixing Plants with Transit Mixers and
also provide on-site support for these equipment’s.
 These plants are complemented by own manufactured Transport Solution in the form of Transit Mixer
 SIPOREX - “THE WONDER BUILDING MATERIAL OF THE WORLD”
 Siporex India Pvt Ltd was established in 1969 and had started production in 1972. It manufactures
Light weight, Autoclaved, Cellular reinforced floor and roof slabs, wall panels, lintels and unreinforced

31
 blocks both for load bearing and partition walls. During last 36 years, Siporex has been widely used in
India and abroad in all types of climatic conditions and rain fall areas successfully. Siporex has also
been extensively used in all types of buildings such as industrial buildings, commercial complexes,
residential buildings, five star hotels, hospitals etc.
 Siporex is being recognized today as a product that is environmental friendly because of its superior
insulating and energy saving properties. Due to the use of Siporex, there will be substantial saving in
installation and recurring cost of air conditioning units. Use of Siporex also avoids Timber in
construction, thus it contributes to forest conservation. Siporex products provide better fire resistance
than conventional building materials.
 SIPOREX INDIA PVT LTD is an ISO 9001 2000 certified company and all the products have BIS
markings.

Company Mission:

The Mission to Industrialize Civil Engineering – in the gigantic effort to provide affordable, high quality mass
housing – has already been achieved with Herculean efforts and unique unflinching dedication. BGSCTPL is
endeavouring to spread and entrench Industrialized Civil Engineering Technology throughout the country for
the good of all.

Company Vision:

To be one of the top construction industry leaders and technology driven organization with excellence in
quality, reliability and customer satisfaction.

Objectives of the Company:

 Provide such condition of employment and procedures as well enable all the employees to develop
sincere since of unity and carry out duties willingly and efficiently.
 Ensure that its employees are informing of those items of policy and secure cooperation.
 Enable the organization to fulfill out the main objectives which has been let done as the describe
minimum of the employment policy.
 Express the top management basic philosophy of human resources.
 To sub-let all or any contrast from time to time and upon such and condition as may be thought
expedient.
 To expand money in experimenting on and testing and improving or seeking to improve any patents
rights inventions discoveries processes or information of the company of which the company may
acquire or propose to acquire.

32
Health and Safety Policy:

B.G.Shirke construction technology Pvt.Ltd. is a quality conscious path finding and innovative Engineering
organization. The eternal march towards perfection in the field of civil engineering, through constant quality
improvement and leadership, is our primarily concern and basic business principle.

We as responsible corporate citizens are committed to preventing environmental pollution and wastage/abuse
of natural resources used in our process, by adopting latest appropriate technology and complying with
applicable legal requirement.

We are also committed to providing our customers with comfortable safe and affordable shelters by the use of
proven prefabs having scientific and objective quality control norms or with conventional type of construction
and also executing infrastructural and other projects to satisfy customer need and requirements with superior
quality and timely completion.

Quality achievement through inbuilt accredited quality assurance is the fundamental duty of all employees and
workers of B.G.SHIRKE construction technology Pvt.Ltd.

DIVISION OF THE COMPANY

Civil Division

We have been in the field of execution of residential, commercial, industrial, infrastructural and special Civil
Engineering projects like Sports Complex, Airports etc. for over 60 years. We offer our unique capabilities to
indigenous and overseas clientele. Our quality and project completion well within stipulated time schedules
have earned us a solid and unmatched reputation in the field of Civil Engineering.

Shirke offer our following services in Civil Engineering:

 Project planning, Designing, Estimation, Construction and Commissioning using all resources under one
roof for coordinated planning designing and project management.

 Turnkey lump sum contracting including design and development of infrastructure.

Construction of Residential, Industrial, Commercial, Infra-structural and Special Projects using industrialized
prefab and/or conventional methods of construction

Post-Harvest Equipment Division (PHED)

33
Post-Harvest Equipment Division (PHED) is pioneer in design, manufacture, supply installation and
commissioning of Galvanized Iron Corrugated (GIC) Silos ranging from 5 MT to 12,500 MT grain holding
capacity, including Grain pre-Cleaners, Conveyors, Elevators on turnkey basis for free flowing grains for more
than 30 years. So far we have supplied and installed over 380 GIC silos with allied equipment on turnkey basis
all over India as well as overseas viz. U.K., Nigeria, Tanzania and Ukraine, which are working well. With the
innovative R&D practices, we have successfully extended applications of GIC Silos in the fields like Agro
Based Industries, Breweries, Roller Flour Mills, Solvent Extraction Plants, Starch Plants, Rice Mills, Oil
Mills, Cattle and Poultry Feed Industries, Grain Based Distilleries, Sugar Industries, etc.

34
Transmission Tower Division

The Division is having design, manufacturing and testing facilities for fabrication, galvanizing, supply, civil
foundation, erection and painting of Transmission and Microwave / Telecommunication Towers of various
heights and designs on turnkey basis. The assessed manufacturing capacity of our factory is @ 20,000 tons /
annum.

We also undertake all required civil work at one location / site for foundation of D.G. set & BTS including
fencing wall and security room etc. We also provide necessary help for acquiring plot /land for mutual benefit
on behalf of the client, if necessary.
During last 25 years, this division has fabricated and galvanized more than 1, 00,000 tons of transmission
towers / structural material. Our manufacturing facility has been approved by various State Electricity
Boards, National Thermal Power Corporation, Nuclear Power Corporation Of India Limited, Power Grid
Corporation of India Ltd., Bharat Heavy Electricals Ltd., Indian Railways, BPL Cellular Ltd. & Bharti
Televentures Ltd., etc.

Concrete Equipment Division (CED)

With a view to achieve our Mission of Total Industrialization of Civil Engineering, B. G. Shirke Construction
Technology Pvt. Ltd. started manufacturing of New Building Materials and Construction Equipment’s under
one roof. Concrete Equipment Division (CED) is one of them, which started in 1988 with the state of art
manufacturing plant at Pune and Marketing Offices in Mumbai, Hyderabad, Bangalore, Delhi and Nagpur.

35
CED manufacturers Automatic Concrete Weigh Batching and Mixing Plants with Transit Mixers and also
provide on-site support for these equipment.

These plants are complemented by own manufactured Transport Solution in the form of Transit Mixer.

SIPOREX - “THE WONDER BUILDING MATERIAL OF THE WORLD”

Siporex India Pvt Ltd was established in 1969 and had started production in 1972. It manufactures Light
weight, Autoclaved, Cellular reinforced floor and roof slabs, wall panels, lintels and unreinforced blocks both
for load bearing and partition walls. During last 36 years, Siporex has been widely used in India and abroad in
all types of climatic conditions and rain fall areas successfully. Siporex has also been extensively used in all
types of buildings such as industrial buildings, commercial complexes, residential buildings, five star hotels,
hospitals etc.

Siporex is being recognized today as a product that is environmental friendly because of its superior insulating
and energy saving properties. Due to the use of Siporex, there will be substantial saving in installation and
recurring cost of air conditioning units. Use of Siporex also avoids Timber in construction, thus it contributes
to forest conservation. Siporex products provide better fire resistance than conventional building materials.

SIPOREX INDIA PVT LTD is an ISO 9001 2000 certified company and all the products have BIS markings.

POLYNORM DIVISION:

Through its door / window frame and shutter manufacturing unit, Shirke Group manufactures specially treated
against corrosion metal sheets door and window frames since 1983. It also manufactures shutters of lock-
forming galvanized or powder coated sheet. This frames and shutter look exactly like paneled timber
shutters and are even better, which is important for the aesthetic sense and psychology of Indian consumer.

36
PROJECTS:

Sport city Balewadi Pune

WIPRO IT Park at Pune

37
FOUR LANNING OF PUNE-SATARA-KOLHPUR ROAD NH-4

Indoor Cricket Academy

38
Sport City for Common Wealth Games

Overseas project Saudi-Arabia

39
Airport Building at Aurangabad

Subway

40
BRANCHES OF OFFICE

HEAD OFFICE:

72-76, Industrial Estate, Mundhwa, Pune 411036.

Tel.: +91 (20) 26708100, 26870755, 756.

Fax: +91 (20) 26871612, 26870319.

E-Mail: bgstech@vsnl.com, siporex@vsnl.net.

BANGALORE:

Brigade Towers, 3rd Floor, 303 & 304,

135, Brigade Road, Bangalore 560025.

Tel.: +91 (080) 22277360/1

Fax: +91 (080) 22277362

E-Mail: bgshirke@satyan.net.in, bgs525@shirke.co.in.

Bel-Air-Drive, 3rd Floor, #9,

Bellary Road, Ward No 34,

Gaganahalli, Next to HMT Bhavan,

Bangalore 560032.

Tel.: +91 (080) 23332633.

NEW DELHI:

1308, Hemkunt Towers, 98, Nehru Place,

New Delhi 110019.

Tel.: +91 (011) 26464076, 46561394

Fax: +91 (011) 26462308

E-Mail: bgs524@shirke.co.in

HYDERABAD:

Surya Towers, 7th Floor, ‘H’ Block, 1/7/4 to 19,

41
Sardar Patel Road, Secunderabad 500003,

Tel.: +91 (040) 27841738

Fax: +91 (040) 27846508

E-Mail: bgshyd@sify.com, bgs526@shirke.co.in.

MUMBAI:

Siporex India Pvt. Ltd.

Siporex Exhibhition House, Cross Maidan,

Near Parsee Well, Veer Nariman Road,

Churchgate, Mumbai, 400020, India.

Tel.: +91 (022) 22692215, 22624574, 22692216.

Fax: +91 (022) 22624894.

E-Mail: siporexmumbai@mtnl.net.in.

67, Maker Chambers VI

220, Jamanalal Bajaj Marg, Nariman Point,

Mumbai 400021.

Tel.: +91 (022) 22880483,

Fax: +91 (022) 22880114

E-Mail: bgsttbom@mtnl.net.in, bgs1014@shirke.co.in.

NAGPUR:

Akar Builders Colony, Building No. 4, Flat No 5.

Chitnwis Layout, Bairamji Town, Nagpur 440013.

Tel.: +91 (0712) 2594519, 2592899

Fax: +91 (0712) 2594468

E-Mail: bgsnagpur@sify.com, bgs528@shirke.co.in

42
Organizational Charts:

43
 CHAPTER-5

DATA INTERPRETATION AND TABULATION

44
 CHAPTER-V
Data Interpretation and Tabulation

INTRODUCTION

On the completion of primary data collection, next step in the research process is, data processing, tabulation
and interpretation of primary data. This is one of the critical steps in the research process. After this step, next
is drawing conclusions and thinking over the possibility of generating of findings. In the present study,
processing of data involves concentrating, recasting and dealing with primary data with the aim of making it
amenable to analysis. this chapter the researcher has analysed the primary data collected from employees of
the selected organisations.

The primary data collected through the questionnaire, which highlights the perceptions and opinions of the
employees regarding nature, process, issues and effectiveness of the performance management system. The
question is divided into six parts. Part A deals with the profile of selected employees, that is, gender, age,
designation, years of work experience etc. In part B of the questionnaire, which are included pertaining to the
technique, element, determinants etc., of performance management system. In the C part questions are
included referring to the linkage between performance management system and performance based pay,
requirement of performance appraisal etc.

In the part D of the questionnaire, questions are included regarding the process of performance management.
In the part E of the questionnaire, the questions are included regarding the various issues arising in the
performance management system. In the part F of the questionnaires employees are asked questions with a
view of understanding their perceptions and opinions about the effectiveness of the performance management
system and methods used in the evaluation.

In the following tables researcher has presented the collected primary data in a table format.

Tabulation and interpretation of data collected from the employees of the selected organisations

Part A) Profile of Respondents

45
 Table 1, Gender Wise Distribution of Respondents

Sr. No. Gender No. of respondents Percentage

1 Male 94 78.3%

2 Female 26 21.7%

Total 120 100%

Figure 1, Gender Wise Distribution of Respondents

Female, 26, 22%

Male, 94, 78%

Male Female

As per the collected primary data, there are 21.7% female respondents and 78.3% male respondents.

Table 2, Age wise distribution of respondents (years)

Sr. No. Age Group No. of respondents Percentage

1 25 - 35 years 44 36.7%

2 36 - 45 years 36 30.0%

3 Above 46 40 33.3%

Total 120 100%

46
 Figure 2, Age wise distribution of respondents (years)

Above 46, 40
25 - 35 years, 44

36 - 45 years, 36

The above table shows that, majority of respondents (employees) 36.7% belong to the age group of 25 – 35
years. 33.3% respondents are in the age group of 46 years and above and 30% are in the age group of 36 years
to 45 years.

Table 3, Work experience of the respondents

Sr. No. Work Experience No. of respondents Percentage

1 2 to 4 years 28 23.3%

2 5 to 7 years 12 10.0%

3 more than 7 years 80 66.7%

Total 120 100%

47
 Figure 3, Work experience of the respondents

Sales
Less than 1 year
0%

2 to 4 years
23%

more than 7 years 5 to 7 years

67% 10%

In the above able it is indicated that, the majority of respondents that is 66.7% have more than seven years of
working experience. 23.3% have two years to 4 years work experience and only 10.0% respondents have five
years to 7 years work experience and 0% have less than 1 years.

Table 4, Respondents’ work group (Categories)

Sr. No. Work Group No. of respondents Percentage

1 Engineering 69 57.5%

2 Clerical / managerial 32 26.7%

3 Blue Collar / Technical 8 6.7%

4 Others 11 9.2%

Total 120 100%

48
 Figure 4, Respondents’ work group (Categories)

100
90
80
70
57.5
60
50
40
30 26.7

20
6.7 9.2
10
0
Engineering Clerical / managerial Blue Collar / Technical Others

The primary data collected from the employees who are working in the different works segment. The about
table indicates the percentage of selected respondents from these work segments or departments. According to
the primary data 57.5% respondents belong to the engineering works. 26.7% and 6.7% respondents are
belonging to clinical or managerial works and blue collar or technical job respectively. 9.2% respondents are
belonging to the others category of jobs such as store keeping, supervising etc.

Part B) Nature of Performance Management System

With a view to understand the nature of performance management system implemented in the selected
organisation, some questions have been included in the questionnaire of the employees. In the following tables
the researcher has emulated the primary information collected in this regard.

The following table shows the various techniques adopted in the selected organisation for the purpose of
performance management.

Table 5, Techniques of performance management adopted in the selected organizations

Sr. No. Techniques No. of respondents Percentage

1 Observation 20 16.6%

2 Assessment and development centre 8 6%

3 Self-appraisal 112 93%

Total 120 100%

49
 Figure 5, Techniques of performance management adopted in the selected organizations

Sales
Observation
16.6
Assessment and
development centre
6%

Self appraisal
93%

This is a multiple answer question. As per the collected primary data, 16.6% respondents have stated that
observation technique has been implemented for the performance management. 6.7% respondents stated that,
assessment and development centre is functioning in the organisation for the purpose of performance
management; 93.3% respondents have stated that the techniques of self-appraisal have been adopted in their
organisation and stop it shows that in most of the departments of selected organisations, self-appraisal
technique is followed and is an integral part of the performance management system.

There are several elements in the performance management system. The following table indicates the multiple
responses of the respondents in the context of the elements of performance management system adopted in
their organisation.

Table 6, Elements of Performance Management System

Sr. No. Elements No. of respondents Percentage

1 Training and development 120 100.0%

2 Promotion 68 56.7%

In the context of the elements, hundred percent respondents have stated that, training and development is a
major element of performance measurement system, and 56.6% have stated that promotion is also a main
element in the performance management of their organisation.

It is interesting to know the reasons for implementing a system. This can highlight the perceptions of the

50
employees regarding performance management system implemented in the organisation. The following table
indicates the various perceptions of respondents about the performance management

Table 7, Reasons for implementing performance management system in the organization

Sr. No. Reasons No. of respondents Percentage

1 Assessment for achievement 79 65.8%

2 identification of training and development needs 119 99.2%

Facilitates promotion, transfers and termination

3 102 85.0%
decisions

4 To clarify an employee's job requirement 60 50.0%

Figure 6, Reasons for implementing performance management system in the organization

100 99.2

90 85
80
70 65.8

60
50
50
40
30
20
10
0
0
Assessment for Reward allocation identification of training Facilitates promotion and To clarify an employee's
achievement and development needs transfers and termination job requirement
decisions

There are multiple responses to the question in this regard to 65.8% respondents have stated that, assessment
of the achievement in the work by the employees is the main reason; identification of training and
development needs is the main reason for implementing performance management system. Stated by 99.1%
respondents. According to the 85% respondents, performance management system facilitates promotions and
offers, and termination decision. In the opinion of 50% of respondents, performance management system is
very important to clarify employees' job requirement it is also important to know how the individual, team and
organisational objectives have been linked in the selected organisation. And number of respondents are zero
for reward allocation. The following table also throws light on this matter. This is also a multiple response
question.

51
 Table 8, Linkage between individual, team and organizational objectives

No. of
Sr. No. Particulars Percentage
respondents

1 Cascading of goals (top - down approach) 27 22.5%

By enabling employees to see how their job

2 contribute to the overall objective of the 120 100.0%
organization through frequent interaction

Comparing employees' performance with work

3 57 47.5%
group

Figure 7, Linkage between individual, team and organizational objectives

100 100

90
80
70
60
47.5
50
40
30 22.5
20
10
0
Cascading of goals (top - down approach) By enabling employees to see how their job Comparing employees' performance with
contribute to the overall objective of the work group
organization through frequent interaction

As per the primary data collected, 22.5% respondents stated that, management members have linked the
organisational goal and individual or team by using a dash down approach or cat killing of goal; an hundred
percent respondents stated that the organisational objectives and individuals, have been linked by enabling
employees to see how the job contribute to the goal or objectives of the organisation and to frequent
interactions 47.5% respondents have stated that, organisational objectives and individual teams are willing to
buy complaining employee performance with work group.

From the present study’s point of view, it is very important to know the perceptions and opinions of the
employees regarding the determinants of the performance. The table also shows the opinions of employees in
this regard.

52
 Table 9, Determinants for Job Performance (Respondents’ Opinion)

Sr. No. Determinants No. of respondents Percentage

1 Organizational culture 107 89.2%

2 Technology 110 91.7%

3 Competency of employee 109 90.8%

4 Intelligence 100 83.3%

5 Attitude 89 74.2%

6 Aptitude 52 43.3%

Figure 8, Determinants for Job Performance (Respondents’ Opinion)

100
91.7 90.8
89.2
90 83.3
80 74.2
70

60

50 43.3
40

30

20

10

0
Organizational Technology Competency of Intelligence Attitude Aptitude
culture employee

For the question, employees have given multiple responses 89.1% employees have stated that organisational
culture plays an important role in the job performance. In the opinion of 91.6% respondents, technology is an
important determinant for job performance and it was voiced by 90.8% respondents that competence of the
employees is continues to be a major determinant for job performance. In the opinion of 83.3% respondents,
intelligence is also a major determinant, and according to 74.1% and 43.3% respondent’s attitude and attitude
of employees are very important determinant for job performance respectively.

From the present study point of view, it is also very important to understand the nature of linkage between
performances linked the pay and performance management. The table also indicates the respondent’s opinions
in this regard.

53
Part C) Perceptions of employees about performance management system

Table 10, Linkage between performances linked pay and performance management system

No. of
Sr. No. Particulars Percentage
respondents

Performance linked pay and performance

1 18 15.0%
management

2 promotion coupled with salary increase 102 85.0%

Total 120 100%

Figure 9, Linkage between performances linked pay and performance management system

Performance linked pay

and performance
management, 18, 15%

promotion coupled with

salary increase, 102, 85%

Performance linked pay and performance management promotion coupled with salary increase

As per the primary data collected, 15% respondents have stated that, incentive is a major factor which is also a
linkage between performance linked to pay and performance management. Majority of the respondents that is
85%, have stated that, management in salary is a major factor and a linkage between performance linked pay
and performance management.

54
 Table 11, Performance Appraisal get done because of the requirements of Performance Management
Systems

Sr. No. Opinion No. of respondents Percentage

1 Yes 31 25.8%

2 No 89 74.2%

Total 120 100%

Figure 10, Performance Appraisal get done because of the requirements of Performance Management
Systems

Yes, 31, 26%

No, 89, 74%

Yes No

In the opinion of 75% the respondents, performance appraisal is not carried out because of the requirements of
the performance management system, but 25% respondents stated that it was carried out became of the above
mentioned requirement.

Some questions have been included with a view to understand the entire process of performance management
system adopted in the selected organisation the following table indicates the various factors related to the
performance management process.

55
Part D) Process of performance management

Table 12, Time of Performance Planning Carried Out

Sr. No. Particulars No. of respondents Percentage

Annual performance and development

1 120 100.0%
reviews have been completed

Total 120 100%

100% percent respondents stated that, they are undertaking the performance planning; hundred percent
respondents stated that the performance planning is carried out at the time of annual performance and
development reviews have been completed.

Table 13, Number of meetings scheduled in a year for discussing employees’ performance

Sr. No. Number of meetings No. of respondents Percentage

1 Two 37 30.8%

2 Three or more 83 69.2%

Total 120 100%

Figure 11, Number of meetings scheduled in a year for discussing employees’ performance

Two, 37, 31%

Three or more,
83, 69%

One Two Three or more

56
30.9% respondents stated that, only two meetings have been scheduled in a year for discussing employee’s
performance, 69% respondents have stated that three or more meetings have been scheduled in a year for
examining the employee’s performance. The following table focuses on the categories of employees who have
received, training for the performance management.

Table 14, Categories of Employees receiving training in performance management

Sr. No. Categories No. of respondents Percentage

1 All categories of employees 10 8.3%

2 Heads of the department 38 31.7%

3 HR teams 72 60%

Total 120 100%

The above table indicates that, 8.3% respondents have stated that all categories of employees working in the
organisation have received the training. 31.7% respondents stated that, only heads of the departments have
received training, and 60.0% respondents stated that, only HR departments' team has received training
pertaining to the performance management.

Part E) Issues in performance management

The following table focuses on the opinions of respondents regarding the causes of failure of performance
management system in the organisation.

Table 15, Causes of failure of performance management system

Sr. No. Causes No. of respondents Percentage

1 Lack of clarity in objectives and role 68 56.7%

2 Long interval of appraisal 21 17.5%

Lack of communication between supervisor and

3 31 25.8%
employees

Total 120 100%

57
 Figure 12, Causes of failure of performance management system

100

90

80

70

60 56.7

50

40

30 25.8
17.5
20

10
0
0
Lack of clarity in objectives and Long interval of appraisal Lack of communication between Any other
role supervisor and employees

According to the opinion of 56.7% respondents, lack of clarity in the objectives and the role of performance
management system, implemented in the organisation, is the only cause of failure of performance management
system. Long interval of job at present can create obstacles in the smooth functioning of performance
management system, opine 17.5% respondents; and in the opinion of 25.8% respondents, lack of
communication between supervisors and employees may result in the failure of performance management
system in the organisation.

Therefore, there should be proper mutual communication between employees and supervisors. The above table
shows the various stages in performance management process during which supervisors or management
members are communicating with the subordinates.

Table 16, Particular stage of performance management during which there is a communication with
employees by supervisors

Sr. No. Stages No. of respondents Percentage

1 Goal setting 111 92.5%

2 Data gathering 107 89.2%

3 Mid-term review 83 69.2%

4 Annual Reviews 120 100.0%

58
 Figure 13, Particular stage of performance management during which there is a communication with
employees by supervisors

100 100
92.5
89.2
90
80
69.2
70
60
50
40
30
20
10
0
Goal setting Data gathering Mid-term review Annual Reviews

Table No. 17, Policy adopted for better performance

Sr. No. Policy No. of respondents Percentage

1 Training / Improvement coaching 120 100.0%

There are multiple responses from the respondents to this question. At the time of goal setting, supervisors are
communicating with their subordinates stated, 92.5% of the respondents. 89.1% respondents stated that, at the
time of data gathering there is a mutual communication between supervisors and employees. At the time of
mid-time reviews supervisors are communicating with the employees stated 9.1% of the respondents; a
hundred percent respondents stated that at the time of annual reviews of jobs done by the employees, there is a
proper mutual communication between employees and supervisors. It shows that, there is frequent
communication, between supervisors and employees at different stages of performance management process.

The HR department of the selected organisation, adopted a policy of continuous training and coaching for
greater improvement in performance, stated by hundred percent respondents.

Appraisal of someone's job/work performance is a very critical and challenging task for the appraiser. The
following table indicates the various roles played by the appraiser while conducting an appraisal of employee's
job or work.

59
 Table 18, Role performed better as an appraiser (Employee’s Opinion)

Sr. No. Role No. of respondents Percentage

1 Judge 11 9.2%

2 Helper 20 16.7%

3 Both 89 74.2%

Total 120 100%

Figure 14, Role performed better as an appraiser (Employee’s Opinion)

Judge,
11, 9%

Helper, 20,
17%

Both, 89, 74%

Judge Helper Both

Table 19, Performance Management Process carried out objectively (Employees’ Opinion)

Sr. No. Opinion No. of respondents Percentage

1 Yes 120 100.0%

Total 120 100%

According to the primary data, 9.2% respondents have stated that, their appraiser's role is limited to only as a
judge in performance appraisal. 16.7% respondents have stated that, while appraising employee’s
performance, appraisers play the role of a helper; that is they help employees in improving their job
performance. Majority of respondents that is 74.2% of opined that, while appraising someone's job
performance, appraisers are play both roles that they are the judge and a helper. It shows that, appraisers don’t

60
only judge the job performance of employees, but occasionally also have 30 towards employees and help them
in improving the job performance.

As per the selected sample hundred percent employees agree that, performance management process is carried
out objectively by the HR department of their organisation.

The table also focus on the opinions of the respondents on the self-appraisal system implemented in the
organisation.

Table 20, Opinions on employee self-appraisal

Sr. No. Opinion No. of respondents Percentage

1 Highly beneficial 67 55.8%

2 Beneficial to a certain degree 40 33.3%

3 Tend to be inflated 13 10.8%

Total 120 100%

Figure 15, Opinions on employee self-appraisal

Tend to be inflated, 13,

11%
Highly beneficial, 67, 56%
Beneficial to a certain
degree, 40, 33%

Highly beneficial Beneficial to a certain degree Tend to be inflated

It was revealed that, 55.8% respondents have opined that the self-appraisal system is true as a highly
beneficial; but in the opinion of 33.4% respondents, self-appraisal system has proved beneficial to a certain
degree; that means, it is not completely effective as per the expectations. According to the 10.8% respondents,
there is manipulation made by appraisers and they tend to inflate the actual figures and facts related to the
performance of job.

The effectiveness of performance management system depends on some factors. Psychological barriers

61
adversely effect on the performance management process. The following table shows the opinions of the
respondents regarding the psychological barriers which are adversely affecting on the effectiveness of the
performance management system.

Table 21, Psychological barriers in the Performance Management Process (Employees’ opinion)

Sr. No. Barriers No. of respondents Percentage

1 Feeling of insecurity 7 8.4%

2 Being too sceptical or modest 120 144%

Worrying that performance appraisal might cause

3 63 75.6%
resentment in subordinates

Figure 16, Psychological barriers in the Performance Management Process (Employees’ opinion)

100
90
80
70 75.6
60
50
40
30
20
10 8.4
0
Feeling of insecurity Being too sceptical or modest Worrying that performance appraisal might
cause resentment in subordinates

The table indicated that, 5.8% respondents were of the opinion that feeling of insecurity, while appraising job
performance of the employees, creates barriers. Sometimes too sceptical or a modest mind set of the appraiser
also creates barriers in the smooth functioning of performance management process; a hundred percent
respondents. In the opinion of 52.5% respondents, appraisers were worried that, the performance appraisal
might cause resentment within the subordinates, and this may adversely affect the actual facts pertaining to the
performance of the subordinates.

62
 Table 22, Results of linking rewards to Performance Management (Employees opinion)

Sr. No. Results No. of respondents Percentage

1 Motivate employees 120 100.0%

Total 120 100%

In the opinion of hundred percent respondents, if the performance management is linking with rewards it can
result in motivation of employees.

Part F) Effectiveness of performance management system and methods used in evaluation

The following table indicates the opinions of the respondents regarding the trends with regard to attrition in
the post-appraisal phase.

Table 23, Trends with regards to attrition in the post appraisal phase

Sr. No. Trends No. of respondents Percentage

1 Increase in employee turnover 98 81.7%

2 Decrease in employee turnover 22 18.3%

Total 120 100%

Figure 17, Trends with regards to attrition in the post appraisal phase

Decrease in employee
turnover, 22, 18%

Increase in
employee
turnover, 98,
82%

Increase in employee turnover Decrease in employee turnover

63
81.7% respondents have opined that in the post-appraisal phase, there is an increase in employee turnover and
18.3% respondents have opined that, there is decrease in the employee turnover.

Table 24, Effectiveness of Performance Management System (Employees’ opinion)

Sr. No. Opinions No. of respondents Percentage

1 Effective 67 55.8

2 Moderately effective 53 44.2

Total 120 100

Figure 18, Effectiveness of Performance Management System (Employees’ opinion)

Effective, 67, 56%

Moderately effective, 53,
44%

Effective Moderately effective

Table 25, Approach for improving effectiveness of Performance Management System (Employees
Opinion)

Sr. No. Approaches No. of respondents Percentage

1 Participative approach 120 100.0%

Total 120 100%

From the above able table, it is revealed that, in the opinion of 58.8% respondents, the performance
management system is effectively functioning in the organisation. 44.2% respondents were of the opinion that

64
the performance management system is moderately effective. Hundred percent respondents have stated that,
participative approach has been adopted by management members for improving the effectiveness of the
performance management system.

65
 CHAPTER 6

FINDING, CONCLUSION, TESTING OF HYPOTHESIS, SUGGESTION

66
 CHAPTER-VII
Finding, Conclusion, Testing of Hypothesis, Suggestion

FINDINGS

1) It was found that 21.7% respondents were female and 78.3% respondents were male.

2) It was found that the majority of respondents (employees) [36.7%] belonged to the age group of 25 – 35
years. 33.3% respondents were in the age group of 46 years and above and 30% were in the age group of 36
years to 45 years.

3) It was found that the majority of respondents [i.e. 66.7%] had more than seven years of working
experience. 23.3% had two to 4 years working experience and only 10.0% respondents had five to 7 years
working experience.

4) It was found that 57.5% respondents belonged to the engineering works. 20 617% and 6.7% respondents
belonged to clinical or managerial works and had blue collar or technical job respectively. 91% respondents
belonged to the other category of jobs such as store keeping, supervising etc.

5)16.6% respondents stated that observation technique had been implemented for the performance
management. 6.7% respondents stated that, assessment and development centre was functioning in the
organisation for the purpose of performance management; 93.3% respondents mentioned that the techniques
of self-appraisal had been adopted in their organisation and it shows that in most of the departments of
selected organisations, self-appraisal technique was being followed and it was an integral part of the
performance management system.

6) In the context of the elements, hundred percent respondents shared that, training and development is a
major element of performance measurement system, and 56.6% mentioned that promotion is also a main
element in the performance. This was based on the priorities given by the organization.

7) This study found that there were multiple responses to the question in this regard to 65.8% respondents
have stated that assessment of the achievement in the work of the boys is the main reason; identification of
training and development needs was the main reason for implementing performance management system, as
stated by 99.1% respondents. According to 85% respondents, performance management system facilitates
promotions and offers and termination decision. In the opinion of 50% of the respondents, performance
management system plays an important role in clarifying the employees’ job segments. It is also important to
know how the individual, team and organizational objectives are applied.

8) As per the primary data collected, 22.5% respondents stated that, management members have linked the
organizational goal and individual or team by using a dash down approach or cat killing of goal; a hundred

67
percent respondents stated that the organizational objectives and individuals, in have been linked by enabling
employee to see how the job contributes to the poor or objectives of the organization to frequent interactions
and 47.5% respondents have stated that, organizational objectives and individual teams are willing to buy
complaining employee performance with work group.

9) 89.1% employees stated that, organizational culture plays an important role in the job performance. In the
opinion of 91.6% respondents, technology is an important determinant for job performance or the competency
of the employees is a major determinant for job performance as stated by 90.8% respondents. In the opinion of
83.3% respondents, intelligence is also a major determinant, and according to 74.1% and 43.3% respondents
respectively attitude? and attitude of employees are very important determinant for job performance.

10) As per the primary data collected, 15% respondents have stated that, incentive is a major factor which is a
major linkage between performance linked to pay and performance management. Majority of respondents [i.e.
85%] have stated that, increment in salary is a major factor which is a linkage between performance linked pay
and performance management.

11) In the opinion of 75% respondents, performance appraisal is not done because of the requirement of the
performance management system, but 25% respondents felt that it was carried out because of the performance
management system.

12) 100% percent respondents stated that they are undertaking the performance planning; and hundred percent
respondents stated that the performance planning is carried out at the time of annual performance and
completion of development reviews.

13) 30.8% respondents revealed that only two meetings had been scheduled in a year for discussing
employee’s performance, it's a 69% respondents have stated that three or more meetings have been scheduled
in a year to review the employee’s performance.

14) As per the primary data collected, by the researcher through the questionnaire, 8.3% respondents have
stated that all categories of employees working in the organisation have received the training. 31.7%
respondents stated that, only heads of the departments have received training, and 60.0% respondents stated
that, only HR departments' team has received training relevant to the performance management.

15) In the opinion of 56.7% respondents, lack of clarity in the objectives and role of performance
management system implemented in the organisation, were the only two causes of failure of performance
management system. Long interval of job at present can create obstacles in the smooth functioning of
performance management system, opined 17.5% respondents; and in the opinion of 25.8% respondents, lack
of communication between supervisors and employees may result in the failure of performance management
system of the organisation.

68
Therefore, there should be proper mutual communication between employees and supervisors. The following
table shows the various stages in the performance management process during which supervisors or
management members are communicated with the subordinates.

16, 17) 92.5% respondents felt that at the time of goal setting, supervisors are communicated with their
subordinates. 89.1% respondents stated that at the time of data gathering was mutual communication between
supervisors and employees. 9.1% respondents expressed at the time of mid-time reviews supervisors got in
touch with the employees; hundred percent respondents stated that at the time of annual reviews of jobs done
by the employees; there was a proper mutual communication between employees and supervisors. It shows
that, there is a frequent communication between the supervisors and the employees as per the different stages
of performance management process.

HR department of the selected organisation, have adopted a policy of continuous training and coaching for
greater improvement in performance, (stated by hundred percent respondents).

Appraisal of someone's job/work performance is very critical and challenging task for any appraiser. The
following table indicates the various roles applied by appraiser while taking appraisal of employee's job or
work.

18, 19) According to the primary data, 9.2% respondents have stated that, their appraiser's role is limited only
as a judge of the performance appraisal. 16.7% respondents have stated that while praising employee’s
performance, appraisers play a role of helper; that is we're helping them in improving their job performance.
Majority of respondents that is 74.2% of opined that, while praising someone's job performance, appraisers are
playing both rules that he's a judge as well a helper. It shows that, appraisers are not only judge the job
performance of employees occasionally, but also they also have 30 towards employees and should help them
in improving the job performance.

As per the selected sample hundred percent employees agree that, performance management process is carried
out with objectivity by the HR department of their organisation.

20) 55.8% respondents have opined that the self-appraisal system is actually highly beneficial; but in the
opinion of 33.4% respondents, self-appraisal system has proved beneficial to a certain degree; that means, it is
not completely effective as per the expectations. According to 10.8% respondents there is manipulation on the
part of the appraisers and they tend to inflate the actual figures and facts related to the performance of job.

The effectiveness of performance management system depends on some factors. Psychological barriers
adversely affect performance management process.

21) As per the primary data collected, 5.8% respondents have opined that, feeling of insecurity while praising
job performance of the employees creates barriers. (100%) respondents were of the viewed sometimes too

69
sceptical or too modest mind set of an appraiser also creates barriers in the smooth functioning of performance
management process. In the opinion of 52.5% respondents, appraisers worried that performance appraisal
might cause resentment within subordinates, and this could adversely affect the actual facts pertaining to the
performance of the subordinates.

22) In the opinion of hundred percent respondents, if the performance management linked with the rewards it
can result in motivation of employees.

23) 81.7% respondents have opined that in the post-appraisal phase, in case of attrition there is an increase in
employee turnover and 18.3% respondents have opined that, there is decrease in the employee turnover.

24, 25) From the above able it was revealed that, in the opinion of 58.8% respondents, the performance
management system is effectively functioning in the organisation. 44.2% respondents have opined that, the
performance management system is moderately effective. Hundred percent respondents have stated that,
participative approach has been adopted by management members for improving the effectiveness of the
performance management system implemented in the organisation.

CONCLUSION

This study concludes that the applied performance management system is very effective and suitable for every
level of the organization. It helps in analysing the strengths and weaknesses of the employees as well as the
organization and is also helpful for framing the future policies of performance management system. This study
has also highlighted the satisfaction level of employees towards the current performance management system
and it was felt that it should be continued in the coming years.

HYPOTHESIS TESTING

HYPOTHESES OF THE STUDY

The researcher has formulated following hypothesis for the present Study.

1) Self-appraisal is highly beneficial in performance appraisal system

2) Performance appraisal causes Feeling of insecurity
3) Self-appraisal is the preferred technique used in Performance Management System

TESTING OF HYPOTHESES

Hypothesis No. 1) Self-appraisal is highly beneficial in the performance appraisal system

The research student has formulated following null and alternate statements for this hypothesis.

H0: Self-appraisal is not beneficial in performance appraisal system

70
 Observed mean = expected mean (40)

Ha: Self-appraisal is highly beneficial in performance appraisal system

Observed mean # expected mean (40)

In this case to prove the null hypothesis researcher wants to check whether observed mean of level of benefits
< expected mean of level of benefits i.e. 40.

In questionnaire a question has been asked to understand the opinions of the respondents on the self-appraisal
system implemented in the organisation.

Table 26, Opinions on employee self-appraisal

Sr. No. Opinion No. of respondents Percentage

1 Highly beneficial 67 55.8%

2 Beneficial to a certain degree 40 33.3%

3 Tend to be inflated 13 10.8%

Total 120 100%

As the above categorical variable represents the opinion of the employee about the benefits of self-appraisal in
performance appraisal system, groups (levels) are mutually exclusive and data is adequate i.e. minimum
expected cell frequency is 40, the researcher has opted for chi-square goodness of fit test to compare the
observed and expected means of the sample. For this researcher has used the SPSS statistical package and
results are explained below.

71
 Benefit Level

Observed Expected Residual

N N

Highly Beneficial 67 40.0 27.0

Beneficial to a certain
40 40.0 .0
degree

Tend to be inflated 13 40.0 -27.0

Total 120

In above table it is observed that the ‘Highly beneficial’ responses are 67 which is more than the expected (40)
level of satisfaction and the residual is positive 27. The calculated 2 tailed p value is 0.000 which is very
significant and rejects the null hypothesis that; observed and expected means are equal. Hence, the hypothesis
‘Self-appraisal is highly beneficial in performance appraisal system’ is accepted.

Hypothesis No. 2) Performance appraisal causes ‘Feeling of insecurity’

The following null hypothesis and alternate have been formulated.

72
H0: Performance appraisal does not cause Feeling of insecurity

Ha: Performance appraisal causes Feeling of insecurity

In this case to prove the null hypothesis researcher wants to check whether Observed ‘Yes’ responses of
‘Feeling of insecurity’ < test proportion (50%) of ‘Feeling of insecurity’.

In the questionnaire a question has been asked to understand the opinions of the respondents about
psychological barriers in the performance management process especially on the ‘Feeling of insecurity’ in the
organisation. (Table No. 21)

Sr. No. Barrier - Feeling of insecurity No. of respondents Percentage

1 Yes 7 8.4%

2 No 113 91.6%

Total 120 100%

Researcher has performed a binomial test in the SPSS package to test the proportions.

Binomial Test

Category N Observed Test Prop. Exact Sig. (2-

Prop. tailed)

Group 1 Yes 7 .06 .50 .000

Insecure
Group 2 No 113 .94
Feeling
Total 120 1.00

The above results suggest that observed proportion of group 1 (Yes) is 0.6 which is less than the test
proportion of 0.50. As p-values less than 0.001 at a 95% confidence level, it can be said that these outcomes
are not by chance. Researcher accepts the null hypothesis “Performance appraisal does not cause Feeling of
insecurity” and rejects the alternative hypothesis.

Hypothesis No. 3) Self-appraisal is the preferred technique used in Performance Management System

To test this hypothesis researcher has formulated following null and alternative hypotheses.

H0: Self-appraisal is the non-preferred technique used in Performance Management System

Ha: Self-appraisal is the preferred technique used in Performance Management System

73
In the questionnaire, employees have responded regarding the performance management techniques. Here the
researcher has tested the proportion of the responses for the preferred technique namely “Self-appraisal” in
performance management system. Researcher has performed a binomial test in SPSS package, the results are
given in the following table.

Binomial Test

Category N Observed Prop. Test Prop. Exact Sig. (2-

tailed)

Group 1 Yes 112 .93 .50 .000

Self-Appraisal
Group 2 No 8 .07
Preferred
Total 120 1.00

The above results confirm that the proportion of respondents with a “Yes” response is 93% which is very high
compared to the tested proportion of 50% and p value (0.000) is quite significant and suggests that both
proportions observed and tested are not equal. Hence the researcher has arrived at the conclusion to reject the
null hypothesis and accept the alternate hypothesis “Self-appraisal is the preferred technique used in
Performance Management System”

SUGGESTIONS

1. In every appraisal, feedback is considered as one of the most important factors, companies may give
regular feedback to the employees to allow them to compare their present performance with their past
performance.
2. To achieve 100 percent effectiveness of a performance management system and keep transparency in
the system, a company may go for scheduling an office time for those employees who are in the field,
so that they can get an opportunity to express views and suggest changes.
3. Performance management system implement different activities to achieve goals. A company may go
for reviewing the performance management system after every 2-3 year cycles.

74
 Appendix-I

Questionnaire

75
 Questionnaires

SECTION –A: GENERAL PROFILE OF RESPONDENTS:

Name:

1. SEX: Male Female

2. Age group: 25_35 36_45 46+

3. Designation:

4. Experience:

a. Less than 1 year b.2-4 year c.5-7 year d. More than 7 years

Section B: Nature of Current Performance Management System

1. In, which of the following groups of employees you are covered?

Senior Managers Other Managers/team leaders

Technical/Clerical Professionals

Manual/Blue collar

2. What are the techniques that are used in your organization for assessing performance?
a) Observation
b) Assessment and development Center
c) Self-appraisal form
d) Group interview

76
3. Please indicate which of the following methods of performance appraisal form a part of your
system?
a) Ranking Method
b) 360 Degree Appraisal
c) Self-Appraisal
d) Any Other Pls. Specify
4. Are the following processes a part of your performance management systems?
a) Coaching
b) Training and development
c) Career management & development plans
d) Promotion
5. Who sets the performance goals/requirements for individuals?
a) Senior managers
b) Business plan (Annual plan)
c) Site plan
6. Why do you have performance management systems in your organizations? (Please tick as many
boxes as appropriate)

Assessment of Achievement

Reward allocation

Identification of training and development needs

Facilitates promotions & Transfers & Termination decisions

To clarify an employee’s job requirements

7. How are individual, team and organizational objectives linked?

a) Cascading of goals(Top-Down approach)
b) By enabling employees to see how their job contribute to the overall objective of the
organizations through frequent interaction
c) Comparing employees performance with work groups

77
 8. What are the determinants for job performance in your organization?

Organizational Culture Technology

Competency of the employee Intelligent

Attitude Aptitude

Section –C: Perceptions of HR professional about performance Management System:

1. How’s performance- linked pay related to performance management in your organization?

a) performance-linked incentive
b) promotions coupled with salary increase
2. Does performance appraisal get done because the system requires in your organization? (i.e. is it
bureaucratic chore)? a) yes b) No

Selection –D: process of performance Management

1. Do you undertake performance planning?

A. Yes
B. No

2. If yes, when is performance planning carried out?

A. Hiring or transferring employees

B. Business plans are newly developed
C. Annual performance and development reviews have been completed

3. How many meeting is scheduled in a year to discuss employee performance?

A. 1
B. 2
C. 3 or more
D. No meeting

78
 8. Did the following people receive training in performance management techniques?

All Employees Other management leaders

Heads of departments Appraisers

HR Team None

Section E: Analysis on Issues in performance Management:

1. What in your opinion are the causes for failure of performance appraisal system?
a. Lack of role clarity
b. Interval of appraisal
c. Lack of communicate by supervisor
d. Any other
2. What are the stages of performance management during which you communicate with your
employees?
a. Goal- setting stage
b. Data- gathering stage
c. Mid- term reviews
d. Annual reviews

3. What do you do when you think you perform better?

a. Training
b. Improvement coaching
c. Relocation
d. Dismissal/discharge
4. As an appraiser which role do you think you perform better?
a. Judge
b. Helper
c. Both
5. Do you believe that the entire process can be carried out objectively?
a. Yes
b. No

79
 6. Your opinion on employee self- appraisal?
a. Highly beneficial
b. Beneficial to a certain degree
c. Tend to be inflated
d. Not beneficial at all

7. What according to you would constitute psychological barriers to effective performance

appraisal?
a. Feeling of insecurity
b. Being too skeptical or modest
c. Worrying that performance appraisal might cause resentment subordinates
8. Do you believe that linking rewards to performance would:
a. Motivate employees
b. Compound problems

Section F: Effectiveness of performance management systems and methods used in evaluation:

1) What do the trends suggest with regard to attrition during the post appraisal phase?
a) Increase in employee turnover
b) Decrease in employee turnover
2) 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
3) Which according to you would improve effectiveness of an organization’s performance management
process?
a) Bureaucratic approach
b) Participative approach

4) Are you going to suggest any charges to your performance management system in the next 12 month?
a) Yes
b) No
c) Don’t know

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5) If yes, in what aspect of performance management would you introduce the change?

6) Are there any other comments you would like to make about your performance management
arrangement not covered in the question above?

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BIBLIOGRAPHY

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WEBSITE

http://www.halogensoftware.com/blog/a-simple-definition-of-performance-managementand-why-everyone-
plays-a-role (Performance management)

http://www.investopedia.com/terms/p/performance-management.aspgemnt definition)

http://hrweb.berkeley.edu/guides/managing-hr/managing-successfully/performance-management/concepts

http://www.managementstudyguide.com/objectives-of-performance-management.htm (Objectives of
performance management)

http://www.pittstate.edu/office/hr/policies-and-procedures/performance-management-process-goals-and-
objectives-instructions.dot (Goals of performance management)

https://books.google.co.in/books?id=4m4D2mYjMdwC&printsec=frontcover&source=gbs_ViewAPI&redir_e
sc=y#v=onepage&q&f=false

http://www.managementstudyguide.com/performance-management.htm

http://www.ukessays.com/essays/business/literature-review-of-research-related-to-performance-appraisal-
business-essay.php

www.worldatwork.org

www.sacha journal of policy & strategic studies.com

http://www.staffingpractices.soe.vt.edu/performanceappraisal101/literature.htm

http://bankofinfo.com/definition-of-performance-appraisal/

https://en.wikipedia.org/wiki/Performance_management

http://www.sagepub.com/sites/default/files/upm-binaries/45674_8.pdf

http://www.beyondlean.com/support-files/performance-management-system.pdf

http://www.csb.gov.hk/english/publication/files/PM_Guide_e.pdf

http://www.hrsa.gov/quality/toolbox/508pdfs/performancemanagementandmeasurement.pdf

http://library.imtdubai.ac.ae/content%5Ce_books%5CE0016.pdf

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