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AN IN-DEPTH STUDY OF PERFORMANCE
MANAGEMENT
SYSTEM
PROJECT REPORT ON
AN IN-DEPTH STUDY OF PERFORMANCE MANAGEMENT
SYSTEM AT MINDA CORPORATION LIMITED
Towards the partial fulfillment of the Training in(HR) at Minda Corporation Ltd.
SUBMITTED BY
JYOTI SHARMA
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CANDIDATE DECLARATION
I hereby declare that the project titled AN IN DEPTH STUDY OF
PERFORMANCE MANAGEMENT SYSTEM AT MINDA CORPORATION
LTD. Noida is original and bonafide work carried out byme during the year
2010 under the guidance ofMr.B.Varaprasad.
I also declare that this Project is a result of my effort and no part of this research
has been published earlier or been submitted as a project by me for any degree or
diploma for any institute or Company.
JYOTI SHARMA
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CERTIFICATE
This is to certify that the dissertation titled AN IN DEPTH STUDY
OF PERFORMANCE MANAGEMENT SYSTEM AT MINDA
CORPORATION LTD submitted by JYOTI SHARMA student of
MBA (Global School Of Business) for the partial fulfillment of the
requirement of the MBA embodies the bonafied work done by her under
my supervision.
I also declare that this Project is a result of her effort and no part of this
research has been published earlier or been submitted as a project by herfor any degree or diploma for any institute or Company.
Signature of the mentor
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ACKNOWLEDGEMENTS
There are a number of important people I want to thank, without whose support,
guidance, encouragement, and help this work would not have been possible. I
would also like to give my greatest thanks to God who deserves the ultimate praise
and credit for all good things in my life.
I want to thankMr.B.Varaprasad(Member-HR) who has been my advisor and
mentor throughout my studies. Without sirs patient criticism, continual support,
effective teaching, and constant challenge and encouragement to give my very best
efforts to my undertakings, I would not have learned what I needed to nor been
prepared to complete this project and future work. Much of what I have learned
about the craft of research has come from Sir, and I am forever grateful for the
opportunity to have trained under his guidance.
I am grateful to Sirfor his generosity, mentoring, support, and sense of humor,
which have always served to keep my spirits light and my attitude positive.
As a student specializing in Human resource, I came to know about the
ground realities in topics like Performance management system with
special reference to Minda.
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ABSTRACT
Training is an integral part of the work situation and is closely related to
the career and promotion structure. So practical training could be taken
as a beginning of a process of in doctrines into the ways of a business
organization and it is the first step which would be helpful in future
prospect. Training makes the concept clear and help in facing the actual
situations.
I have done training at MINDA CORPORATION LIMITED,NOIDA in
Human Resource. During the training Programme, I got the opportunity
to learn valuable things regarding management. It was my fortune to get
the training in a very healthy atmosphere. The management of the
company offered learning situation, sufficient facilities and training
opportunities to fulfill the objectives of training.
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The project assigned to me was Performance Management System. In
my project report I have studied the procedure of Performance
Management System at MINDA.
The process of PMS from Setting Goals till Learning and Development
has been done in my project report. From the study and work of
Performance Management System I can say that it is an important tool
for Human Resource and also for the development of the employees.
This Project has really exposed me to a far new world and I sincerely
hope that MINDA CORPORATION LIMITED. Will find my study
equally valuable as found it in shaping my career.
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INDEX
CONTENTS
1) CANDIDATE DECLARATION
2) CERTIFICATE
3) ACKNOWLEDGEMENT
4) ABSTRACT
5) CHAPTER 1: INTRODUCTION
5.1 Introduction of the study
5.2 Significance of the Study
5.3 Review of existing literature
5.4 Objectives Of the study
6) CHAPTER 2: RESEARCH METHODOLOGY
7)CHAPTER 3: DESCRIPTIVE WORK
7.1 Key factors affecting PMS
7.2 PMS Methodology
7.3 Performance Assessment
7.4 Annual Increment
7.5 Types of Errors in PMS
8) CHAPTER 4: DATA ANALYSIS AND INTERPRETATION
9)CHAPTER 5: FINDINGS & RECOMMENDATIONS
10) CONCLUSION
11) BIBLOGRAPHY
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INTRODUCTION
The concept of Performance Management has been one of the most
important and positive developments in the sphere of Human Resource
Management in recent years. Performance Management is, of course,
about performance. It is important to clarify what performance means,
because if performance cannot be defined, performance appraisal cant
be done properly an eventually performance management system cannot
be successfully implemented. Performance appraisal which is key to
Performance Management System may be defined as a structured formal
interaction between a subordinate and supervisor, that usually takes the
form of a periodic interview (annual and semi-annual), in which the
work performance of the subordinate is examined and discussed, with a
view to identifying weaknesses and strengths as well as opportunities for
improvement and skills development.
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Organizations are now looking forward to obtain competitive edge
through highly developed employee skills by adopting an efficient
Performance Management system. The efficiency of an
organization depends directly on the capability and talent of its
personnel, and how motivated and satisfied they are. This study throws
light on the effectiveness of implementing Performance
Management System in the organization and how Performance appraisal
as a key to Performance Management System helps to increase
productivity of employees, which makes the organization
Efficient.
APPRAISAL- the word means to fix a price or value for something.
So it is a process in which one values the employees contribution and
worth to the organization.
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SIGNIFICANCE OF STUDY
Today leading organizations are using every available tool with greater
vigor to create a more efficient and profitable business. One of these
tools, is Performance Management, historically has
been viewed as an effective highly political and time consuming task yet
there is hardly a single organization in the world that does not want a
performance management system focused on
results and backed by commitment.
The performance appraisal is the key element in the performance
management process. When used effectively the performance appraisal
can provide accurate feedback on past performance,
significantly enhance employees productivity and satisfaction and offer
feedback to employees on how to improve. For that reason performance
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appraisal is one of the most important responsibilities of supervisor or
manager.
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REVIEW OF EXISTING LITERATURE
There are different views on what performance is. It can be regarded as
simply the record of outcomes achieved. On the individual basis, it
would then be the record of a persons
accomplishments (Bernadine et al, 1995; Kane, 1996).
On the other hand, it has also been suggested that performance is
behavior and should be distinguished from the outcomes because the
outcomes can be contaminated by systems
Prevalent in the organization (Campbell, 1990).
Performance means both Behavior and result Behavior, emanates from
the performer and transforms performance from abstraction to action.
Not just the instrument for result, behavior is
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also the outcome in its own right and can be judged apart from the result
(Brumbrach, 1988).
Performance Management is a continuous process of identifying,
measuring, and developing the performance of individuals and teams
and aligning performance with the strategic goals of the organization
(Herman Aguinis, 2007)
The concept of performance management has been one of the most
important and positive developments in the sphere of Human Resource
Management in recent years. The phrase
Performance Management was first coined by Beer and Ruth in 1976.
It became recognized, as a distinctive approach in mid 1980s, because of
the growing realization that a more continuous
and integrated approach was needed to manage and reward performance.
Performance Management System is the process of performance
planning, Performance Monitoring and Coaching, Measuring Individual
Performance linked to organizational goals, giving him/her feedback,
rewarding the individual based on his/her achievements against set
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performance goals and required competencies, and working out a plan
for his/her development.
(Dr. R K Sahu,2007)
Sound PMS of an organization is directly related to the satisfaction of
the employees. Performance appraisal is always result based rather than
be effort based. This sometimes leaves
the employees dissatisfied. However in case of good PM, the appraisal
process must be transparent which allows the employees to interact with
their managers and clarify their queries.
Under a performance appraisal system employees must be able to see
some benefits to them, which is important for personal development of
employees. This result in the employee
satisfaction, which increases productivity as the performance of an
organization, depends directly on the performance of its people. (Dr. R
K Sahu, 2007).
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OBJECTIVE OF STUDY
The followings are the objectives of my study:-
o To make a study of Minda Corporation Ltd(Noida) as a whole
o Organizational benefit of PERFORMANCE MANAGEMENT
SYSTEM.
o Recognizing the Training Needs & Identification of type of
training.
o To study about different appraisal methods.
o To study and analyse the appraisal system and practices prevailing
in Minda Corporation.
o To suggest effective measure to improve the Performance system
of the company.
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RESEARCH METHODOLOGY
Research process includes research design, which tells about the nature
of the study. Research comprises defining and redefining problems, and
suggested solutions, collection, organizing a
devaluating data, making deductions and reaching conclusion. This
research is an exploratory research.
Research Design
The following procedure will be adopted in the project:
A survey of the employees at different levels at MINDA
CORPORATION LIMITED. will be done with the help of a structured
questionnaire.
Sample Size
The sample size of the employees would be around 100.
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Sources of Data Collection
The study is primarily based on primary data. Secondary data is
collected through companys records, books related to the topic, HR
magazines and journals, and data from the Internet will also be taken.
Analysis Pattern
After the collection of data from the primary and secondary sources that
will be properly arranged and tabulated to make analysis and
interpretation.
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KEY FACTORS AFFECTING PERFORMANCE MANAGEMENT
Ability: Ability is one of the important factors affecting performance
management system. Performance Management of an employee depends
upon the ability of an employee. The more able the employee is, the
more he/she is important to the organization. Character traits, skills and
knowledge, which are used in the performance, are termed as the ability
of an employee. It is always present and will not vary widely over short
periods of time. Apart from ability many people who are not motivated
keep their performance to an acceptable level by expending only 20-
30% of their ability. Managers who know how to motivate their
employees can achieve 80-90% ability levels and consequently higher
levels of performance. The amount of effort i.e. manual or mental
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energy that a person is prepared to expend on a job to reach a certain
level of
performance varies according to incentive and motivation to the
employee. (Likert, 1976).
Motivation: Motivation factors are present in the job itself. They
include such things as opportunity for recognition, achievement, and
growth. Hence, a leader that recognizes employee efforts and helps
employees achieve and grow can help improve satisfaction, as long as
pay is perceived as fair.
Thus, regularly spending time with employees focusing on development
and achievement adds value.
Maslow and basic needs (1940s & 50s) - broader view extending beyond
the work place. Proposed a hierarchy of needs - the lowest level needs
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are dominant till satisfied and performance is affected if the needs
according to these levels are not taken care of which can lead to the
dissatisfaction of an employee.
Physiological (food, shelter)
Safety (insurance, security, protection from harm)
Love (peer groups, recreation, affection, acceptance)
Self- actualization (creativity, growth, achieving ones potential)
Esteem (achievement, status, self respect, recognition).
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Also Herzbergs motivation theory focused on two factors, Motivation
and Hygiene. Hygiene factors such as pay if perceived as unacceptable
lead to job dissatisfaction, if perceived as
acceptable lead only to a state of no dissatisfaction. Hence, a large raise
may result in a temporary euphoria, but would not lead to job
satisfaction.
Career development: This indicates some key learnings relevant for
our study and has hence been reproduced. While managing careers we
are essentially managing a process of enhancing performance of
individuals and groups to help them contribute concretely towards
enhancing shareholder value. Careers are built in corporations where
basics of people management are adhered to with sincerity and
commitment are made only when the intellect merges conclusively with
the commercial and cultural realities of an organization and this cannot
happen unless
intellect is given its rightful place through effective performance
appraisal. Ever since companies decided that maybe they should
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measure how their workers are doing and give the better performers a
raise, employers have married employee performance appraisals with
annual salary reviews. Within a short period of time, the argument began
over whether the two should be linked and, if so, to what extent. One
facet of that ongoing debate is whether the size of pay increase
differences makes a difference and whether increasing pay for good
performance is a motivator for even better work the next year.
Feedback: Performance Management System cannot be effective
without feedback. As a basic human tendency people tend to make
judgments about those working with them. In the absence of a
meticulously structured objective system of appraisal, people will tend
to judge the work performance of others, including subordinates
informally and arbitrarily based on their likes, dislikes, biases and
prejudices. The multi rater feedback process is called 360 Degree
Feedback.The powerful process is perhaps one of the most effective and
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widely used initiatives to develop leadership capability, identify
potential, and develop strong bonds between teams and for enhancing
key competencies in organizations. The focus of a 360-Degree
implementation today, continues to be on development. Rarely do
companies use it for performance appraisals, rewards and recognition,
collecting data on employees or succession planning.
Compensation: Compensation reviews are another matter. In a
compensation review, the goal is to establish the employee's value to the
corporation, based on their duties and responsibilities, potential, and
their own financial goals. If employees have a great performance review,
they're going to expect a great compensation package, and that might be
difficult. They may view themselves and their worth higher than the
company does, hence dissatisfaction. Any number of factors can come
into play in compensation review, including the company's economic
health and how much it can prudently afford to pay, as well as the
employee's skill level, responsibilities, and longevity not only with the
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company, but in their current position. Some companies have a salary
range for various positions that can take experience, seniority, and skill
levels into account. But increases are frequently based more on the
economy and how the company's doing than on actual performance.
Most leaders try to give larger increases to higher performing
employees, and smaller increases lower performers.
IN ESSENCE, Performance Management System is the most important
tool for every organization and there are several benefits that a PMS
system can offer in making an organization more efficient and effective.
The biggest success factor in all our initiatives has been the
Managements commitment to fostering a culture of transparency and
collaboration, without which no system can be effective, however good
they are. (Robbins, Low, Morel ;1986.
FOCUS OF THE PROBLEM
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The study focuses on understanding and effectiveness of Performance
Management System in Minda Corporation Limited. The study throws
light on the positive impact and motivating employees with the
performance management system to build the necessary commitment for
the organization.
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PMS METHODOLOGY
PMSprocess consists of four steps:
1. Goal setting
2. Monitoring and feedback
3. Rewards and recognition
4. Learning and development
1. SETTING GOAL:
Setting goal to achieve organizational objective.
Helping people to understand goals.
What need to be done?
How will it be measured?
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2. MONITORING AND FEEDBACK:
Conduct review and give feedback.
How well are employees are meeting there goal.
Address issues on performance during the appraisal period.
3.REWARD AND RECOGNITION:
Monitory / non monitory
4.LEARNING AND DEVELOPMENT:
Developmental needs are identified, agreed and planned for.
Learning and developmental opportunities provided.
MANAGERS ROLE IN PMS:
Managers play a crucial link between organization and individual
employees. Their action and attitude are key drivers for the success of
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any performance management system. The managers role in PMS
described below:
Set goals for employees.
Create clear expectation for employees
Provide honest and timely feedback.
Be fair, reasonable and consistent
Work towards employees growth and development
Communicate honestly and directly.
Provide opportunities for learning through coaching.
EMPLOYEES ROLE IN PMS:
The role of employees in the performance management system is
equally critical as that of manager. The employees role is described
below:
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Ask question so as to understand clearly what is expected.
Involve and participate in goal setting exercise.
Perform work as per assign standard.
Take charge of your own development.
Create opportunities to seek and give feedback to your manager.
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SETTING GOALS:
Goals have to be S.M.A.R.T.
S- SPECIFIC set clear concrete goal.
M- MEASURABLE- quantity, quality, cost and time
A- ACHIEVABLE- realistic should stretch you.
R- RESULT ORIENTED- Deliverable, accomplishments.
T- TIME BOUND- deadliness, dates.
FOR EXAMPLE:
TO ESTABLISH ALTERNATE VENDORS FOR TOP 10 CRITICAL
ITEMS FOR HOME UPS LINE OF PRODUCTS BY JUNE 2007
EMPLOYEES APPRAISAL PROCESS:
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The performance will be assessed as per various parameters set in
performance management system. These are:
1. Assessment of performance against goal.
2. Assessment of skills and knowledge.
3. Assessment of attributes and behavior
.
1. ASSESSMENT OF PERFORMANCE AGAINST GOAL:
The performance for the year is assessed on the basis of RESULT/
DELIVERABLES achieved by end of the year against the goals.
2. ASSESSMENT OF KNOWLEDGE AND SKILLS:
Assessment of knowledge and skills is based on:
Professional and technical knowledge.
Professional and technical skills.
Communication skills.
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WEIGHTAGES:
Weightage allocated to each objective. The total of the entire objective
comes to 100%.
The weightage allocated are;
INDIVIDUAL PERFORMANCE:
Against agreed goals / objective which carries a weightage of 40%.
INDIVIDUALS KNOWLEDGE AND SKILLS:
The application of skills and knowledge carries a Weightage of 35%.
INDIVIDUAL ATTRIBUTES AND BEHAVIOUR:
The demonstration of behavior / attributes carries a Weightage of 25%.
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LEVEL AT MINDA CORPORATION :
There are different levels at Minda, these are describe as:
1. STAFF: DRIVERS, ELECTRICIAN, PEON, COOK, FIELD ASSISSTANT,
WIREMAN, TESTER, TESTING ENGINEER, TECHNICIAN.
2. LEVEL 4: Supervisory Level
3. LEVEL 5: Engineer or officer.
4. LEVEL 6: Deputy Manager
5. LEVEL 7: Manager
6. LEVEL 8: DGM
7. LEVEL 9: GM8.LEVEL 10: Associate Vice-President
9.LEVEL 11: Vice- President
10.LEVEL 12: President,MD
PERFORMANCE ASSESSMENT:
The performance of an employee is measured through series of steps. There are
Various step involved in it. The first being the SELF- ASSESSMENT FORM, the
second being the KRA REVIEW FORM, and the final being the COMPETANCY
REVIEW FORM. At different levels there is different type of form
EXPLANATION:
There are three parts for assessing the employees performance. PART A- self-
appraisal, PART
B- KRA evaluation sheet, and PART C- Competency review form. The detail of
which is
described below:
1. PART A SELF APPRAISAL:
This is to be filled by the employee himself. This is filled in order to have a
review of the employees capabilities. This form is reviewed and the employees
strong
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points according to him are viewed.
For example:
WHAT DO YOU THINK HAS BEEN YOUR MOST IMPORTANT
CONTRIBUTION TO THE DEPARTMENT OR ORGANIZATION IN LASTR
YEAR?
This form basically shows what employees feel that he has done in the last year.
2. PART B- KRA EVALUATION SHEET:
Key result areas are such critical areas of performance, which
Though constitute few in number, would have major impact on business/ targets
of the Units / function. KRA setting is the process that converts organizational
Objectives into employee objectives. KRA setting for the next year should be done
jointly between appraiser and appraisee and keeping in mind the resources and
action that may be required for successful completion the targets, the agreed KRAbecome the standard against employees achievement will be evaluated. KRA
setting helps in role/KRA clarity and regular review of progress made.
3. PART C- COMPETANCY REVIEW FORM:
This is also termed as performance assessment rating form. In this
form the performance of the employees is judged on certain parameters. The
parameters being:
Job knowledge and skills, innovation and creativity, energy, act with integrity
and work habits, compliance to system and procedure, credibility and ethics, work
output and its quality, focus on result, team work, and self accountability.
Towards the end of the form total score is given there which is average of the score
of parameter, and accordingly ranking is given.
In the excel sheet than the following data are entered i.e. the KRA rating and
the performance evaluation sheet and accordingly the software derived the
desired ranking and accordingly the appraisal and salary correction is done.
RATINGS:
1. BELOW AVERAGE:
Does not fully meet the requirements.
Excessive supervision required.
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2. AVERAGE:
Adequate performance, meets requirement.
Need push to perform better.
3. ABOVE AVERAGE:
Consistently higher performance than expected.
Challenging assignments are normally handled.
4. OUTSTANDING:
Exceptional performance which leaves nothing to be desired.
Challenging assignment consistently well handled.
ANNUAL INCREMENT:
PERIODICITY & CYCLE OF INCREMENTo Increment cycle would be on financial year basis, i.e., April to March.
o Increments and promotions would be effective from 01st of April.
ELIGIBILITY
o Increment would be given to all confirmed employees as of 31st March.
o Increments would also be given to employees whose last increment was effective
from 01st October 2006 or before that on pro-rata basis.
o All functional heads will give performance rating and promotion
recommendation
in the performance appraisal form for employees in their department which willbe
used for giving annual increments.
o Trainees and probationers will be eligible for performance review and
increment in the next review cycle only.
QUANTUM OF INCREMENT:
o A fixed percentage increase in CTC will be given as annual
increment depending upon the performance rating as per the table
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below:
Rating % age increase in CTC
Excellent 20%
Very Good 15%
Good 10%
Average 6%
Below Average No Increment
o Employees across the level and function will get the same
percentage increase if their performance rating is same.
o Quantum of increment will be on pro-rata basis depending up on the date of
joining or date of last increment.
o In case an employee does not get any increment because of ineligibility as
mentioned above, he will get increment in the next increment cycle for the entire
period.
SALARY CORRECTION
o Over and above performance based increment, salary correction would also be
considered depending upon the role and criticality of the position and to bring
internal equity.However, such cases has to be strictly restricted
TYPES OF ERROR IN PMS:
TYPES OF ERRORS
While evaluating performance of the candidate under the PMS few types of errorcan take place that are as follows
STRICTNESS ERROR:
It occurs when the appraiser artificially assigns all or certain group of employees
low performance ratings and consequently all or certain scores cluster at the
bottom of the rating scales.
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CENTRAL TENDENCY:
It is the tendency of the appraiser to avoid using the extremes of rating scales and
to cluster the ratings around the mid point.
SPILL OVER EFFECT:
It is the tendency of the appraiser to carry in mind the past performance of the
appraise in view while making evaluation on the present Performance.
RECENCY EFFECT:
Some times the raters assign ratings on the basis of recent behavior they have seen
in their appraises forgetting about past behavior over a period. This is called
recency effect. After performance evaluation system we find source for the type of
training to be given to employees. According to the review of performance
assessment we recognize the type of training the employee need for hisdevelopment. The departmental head gives the feedback regarding the performance
of the employees and accordingly the HR department reviews the assessment and
provides the type of training the employee required. Sometime the employee
himself mentions the type of training he or she needs. Training the important part
for development of any employee as it help to increase the knowledge of the
employee in the area were they are lacking.
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QUETIONNAIRE ANALYSIS
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Ques1. PLEASE INDICATE THE EXTENT TO WHICH YOU AGREE/ DISAGREE
WITH THE FOLLOWING STATEMENTS:
A) PERFORMANCE RELATED PAY IS AN ESSENTIAL PART OF PERFORMANCEMANAGEMENT (PM).
B) THE FOCUS OF PM SHOULD BE DEVELOPMENTAL
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C) THE MAIN OBJECTIVE OF PM SHOULD BE TO MOTIVATE INDIVIDUALS.
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D) PM DISTRACTS PEOPLE FROM MORE IMPORTANT CORE ACTIVITIES
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E) PM SHOULD BE DISTANCED AS FAR AS POSSIBLE FROM COMPENSATION.
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F) PM IS ABOUT INDIVIDUAL AND THEIR LONG TERM DEVELOPMENT
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G) PM DOES NOT HELP TO DEVELOP CAREERS ONLY BUT ALSO IMPROVE
WORK PERFORMANCE
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H) PM IS ABOUT DECIDING HOW MUCH TO PAY PEOPLE
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I) PM PROVIDES A WAY OF KEEPING A RECORD OF AN INDIVIDUALS
PROGRESS AND PERFORMANCE
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J) PM IS ABOUT GETTING PEOPLLE TO WORK HARDER
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K) PM HAS NO VALUE FOR INDIVIDUALS, ONLY FOR ORGANISATION
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L) PM MOTIVATES PEOPLE AND MAKES THEM FEEL PART OF THE
ORGANISATION
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QUES 2. PLEASE INDICATE WHICH OF THE FOLLOWING FEATURES OF PM
PROCESSES ARE INCLUDED IN YOUR ARRANGEMENTS, AND HOW EFFECTIVE
YOU BELIEVE THIS TO BE.
A. ANNUAL APPRAISAL
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B. BI-ANNUAL APPRAISAL
C) SELF APPRAISAL
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D) SUBORDINATE FEEDBACK
E) COMPETENCY ASSESSMENT
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F) OBJECTIVE SETTING AND REVIEW
G) PERFORMANCE RELATED PAY
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H) COACHING & MENTORING
I) CAREER MANAGEMENT
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J) PERSONAL DEVELOPMENT PLANS
QUES.3. WHAT DO YOU UNDERSTAND BY THE TERM PERFORMANCE
MANAGEMENT?
A) PERFORMANCE APPRAISAL OR REVIEW
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B) REGULAR MEETINGS WITH BOSS TO REVIEW PROGRESS
C) ASSESSMENT OF TRAINING AND DEVELOPMENTAL NEEDS
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D) PERSONAL DEVELOPMENT PLANS
E) PAY BASED ON PERFORMANCE RATINGS
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QUES 4 HAVE YOU CARRIED OUT ALL THE REQUIREMENTS OF YOUR OWN
ORGANISATIONS PM ARRANGEMENTS IN THE LAST YEAR.
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QUES 5 IF YES, WHAT ACTIONS WERE CARRIED OUT AS A RESULT?
A) IMPLEENTED A PROGRAMME OF SELF DEVELOPMENT.
B) RECEIVED A PAY RISE
C) IDENTIFIED CAREER DEVELOPMENT
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D) AGREED IMPROVEMENTS TO BE DONE
QUES 6 PLEASE INDICATE THE EXTENT TO WHICH YOU AGREE OR DISAGREE
WITH THE FOLLOWING SATATEMENTS
A) I HAVE THE AUTHORITY TO DETERMINE MY WORK OBJECTIVES
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B) I RECEIVE A LOT OF FEEDBACK ON MY PERFORMANCE
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C) THE MOST IMPORTANT THING ABOUT MY JOB IS PAY
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D) HARD WORK IS NOT NECESSARILY RECOGNIZED OR REWARDED IN MYORGANIZATION.
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E) MY ORGANISATION VALUES MY CONTRIBUTION
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F) I FULLY UNDERSTAND MY ORGANISATIONAL GOALS AND OBJECTIVES
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G) I KNOW WHAT IS EXPECTED OF ME BY MY ORGANISATION
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H) MY WORK OBJECTIVES ARE UNREALISTIC AND DIFFICULT TO ACHIEVE
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I) I HAVE THE AUTONOMY OVER THE WORK I PERFORM
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J) MY ORGANISATION IS COMMITTED TO MY TRAINING AND DEVELOPMENT
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K) MY ORGANISATION COMMUNICATES WELL
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L) MY WORK COLLEAGUES AND I HAVE RESPECT FOR EACH OTHER
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M) I FEEL I AM CONSTANTLY BEING COMPARED WITH MY WORK
COLLEAGUES
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N) MY WORK COLLEAGUES AND I WORK AS A TEAM
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QUES 7 PLEASE INDICATE THE EXTENT TO WHICH YOU AGREE AR DISAGREE
WITH THE FOLLOWING STATEMENTS REGARDING PM AS IT APPLIES TO YOU
PERSONALLY IN YOUR CURRENT ROLE.
A) PM HELPS ME TO DO MY JOB BETTER
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B) PM HELPS ME TO DEVELOP MY SKILLS & POTENTIAL
C) THE OBJECTIVE & PERFORMANCE STANDARDS AGREED WITH MY
MANAGER ARE REALISTIC
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D) I GET USEFUL FEEDBACK FROM MY PM REVIEW
E) ASSESSMENT OF MY PERFORMANCE STANDARDS ARE CONSISTENT, FAIR
AND UNBIASED
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F) I FEEL MOTIVATED AFTER A REVIEW MEETING
G) I DO NOT UNDERSTAND HOW MY BOSS DECIDES MY RATING
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H) BOSSES GIVE THE BEST RATING TO PEOPLE THEY LIKE
I) I FULLY UNDERSTAND HOW MY OBJECTIVES & STANDARDS RELATE TO
THE BUSINESS NEEDS
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J) I HAVE RECEIVED ADEQUATE TRAINING IN PM
K) TIME SPENT ON PM IS WORTH WHILE
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FINDINGS
From the various graphs and diagrams we are able to judge a few things that
employees feel about the current performance appraisal process. These findings are
based on the total research process and the analysis. These findings will help tomake recommendations that could be implemented to improve and increase
efficiency of the system.
According to employees:
Pay is an important part of performance management.
Performance management slightly distracts people from more important core
activities.
They feel that performance management should not be distanced as far as
possible from compensation
Performance management helps improve performance also along with
developing careers.
People strongly agree that performance management has value for
individuals along with the organization.
Performance management motivates people.
They think that annual appraisals are more effective than bi-annual
appraisals.
Self-appraisal plays a very important role.
The first and foremost step of performance management system should be
objective setting.
Coaching and mentoring should be introduced in a system.
Performance management according to them includes:
Performance appraisal
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Assessment of training and developmental needs
Personal development plans
Pay based on performance ratings.
Around 90% of the employees surveyed carried out the requirements related to
performance management and as a result received a pay rise,
agreed improvements to be done.
Employees at Minda have the authority to determine their work objectives.
Employees disagree that the most important thing about their job is the pay.
They agree that hard work is recognized or rewarded in their organization.
Employees slightly disagree that the organization is committed to theirtraining and development.
Employees agree that performance management develops their skills and
potential.
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LIMITATIONS OF THE STUDY
1. The scope of the project is limited to the Minda Corporation Ltd
2. The time for the project is not sufficient to undergo all the procedures.
3. Employees may face time constraint while giving information.
4. Budget might be a constraint.
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CONCLUSION
Performance management system should be developed in order to
improve the over all performance of employees. It should include the
following steps:
a) Performance planning
b) Performance monitoring or review
c) Performance rating
d) Performance rewarding
e) Performance developing
A) PERFORMANCE PLANNING
It enables the employees to develop role clarity and provides a sense of
direction. It also provides a norm or standard against which employees
can review their performance.
Objective:
I. To set clear performance goals for each employee.
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II. To ensure commitment to perform
III. To enable objective performance appraisal
B) PERFORMANCE MONITORING / REVIEW
Monitoring well means consistently measuring performance and
providing ongoing feedback to employees and work groups on their
progress toward reaching their goals. The performance
review should be conducted quarterly by the immediate superior to
encourage performance, for raising the resources or for any course
corrections in which the appraisee will offer his assessment of
accomplishment of the activities. He would analyze his performance by
identifying the Facilitating and Inhibiting factors.
The Facilitating factors are those factors, which have helped in
accomplishing the objective.
The Inhibiting factors are those factors, which have prevented
accomplishing the objectives.
This will include self-appraisal and performance appraisal.
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Objective:
I. To assess accomplishment of the planned goals/ targets/ activities.
II. To provide a rational basis for rewards
III. To identify training and development needs
C) PERFORMANCE RATING
Rating means evaluating employee or group performance against the
elements and standards in an employees performance plan and
assigning a summary rating of record.
Objective:
I. Final assessment in the form of ratings or assignments of points
becomes very useful for development as well as administrative
decisions.
II. Once the ratings are available, it is easy to identify individuals who
can perform certain functions well or those who have demonstrated
certain managerial and human capabilities.
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D) PERFORMANCE REWARDING
Rewarding means recognizing employees, individually and as members
of groups, for their performance and acknowledging their contributions
to the organizations mission. Rewards
should be in monetary as well as non-monetary terms. Rewards having
recognition / prestige but having no financial value should be envisaged
for those types of exemplary performance which
may not have a bearing on the Performance appraisal ratings directly.
This may be in the form of appreciation (in writing) by superior, or head
of the division.
Objective:
I. To provide motivation for sustaining / improving performance.
II. To ensure that annual increments are strictly on the basis of merit i.e.
performance against targets.
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PERFORMANCE DEVELOPMENT
Developing in this instance means increasing the capacity to perform
through training, giving assignments that introduce new skills or higher
levels of responsibility, improving work
processes, or other methods. Giving them appropriate training sessions
should develop those employees who have failed to give desirable
results. Providing employees with training and
developmental opportunities encourages good performance, strengthens
job-related skills and competencies, and helps employees keep up with
changes in the workplace, such as the
introduction of new technology. Performance development plans should
be made in order to improve employees overall performance
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BIBLIOGRAPHY
SOURSES are:
Websiteswww.google.com
www.citehr.com
www.ask.com
www.articles911.com
Magazines
Human capital
icfai journals
Books:
which are full of information on performance management System and
its tool are also secondary data for the research.