Professional Documents
Culture Documents
ON
Submitted by
MASTER OF COMMERCE
(SPECIALIZATION IN HUMAN RESOURCE MANAGEMENT)
Faculty of Commerce
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Vadodara
BONAFIDE CERTIFICATE
Date:_______________
This is to certify that this Project Report entitled An Analytical Study of Performance
Management System as tool for effective performance: A study of selected employees in
Vijayjyot Seats Private Limited which is to be submitted to the office of the Registrar
(Examination), The Maharaja Sayajirao University of Baroda, has been prepared by Mr.
Irshadhusen Inayathusen Shekh (Exam Seat No. HR4000094) as a partial fulfillment of
the award of the Master of Commerce Degree with specialization in Human Resource
Management for the Academic year 2013-14 for the evaluation in lieu of the Annual
Examination to be held in March/April, 2014.
He has carried out this work under my personal supervision and guidance.
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ACKNOWLEDGEMENT
At the outset, I would like to articulate this project as small journey which was a remarkable
learning experience for me. The successful completion of this project is only because of the
extraordinary support, guidance, counselling and motivation from my respectable guides, staff
of the M.S. University, and my organization. This journey was also could not be completed
without support of my family and friends.
I firstly express my hearted thankfulness to Associate Professor and Project Guide Dr. Umesh
R. Dangarwala in this project who made me felt his presence during all those crucial and
decision making moments this project went thorough. The deep insight in to the subject given
by him are believed the root caused in completing this project must qualitative and timely.
Also, I express my deep gratitude to Mr. Bhavin Helaiya & Manubhai Solanki (HR
Executives), my training officer and mentor for this project. Thorough the support provided
by him, I have imparted knowledge on the avenues which this project have opened and
explored . His directions in making me think about unique conceptual and practical aspects of
Performance Management System which has lifted this project at this stage of successful
completion.
I extend my gratitude to Vijayjyot Seats Private Limited and My Manager and all my
colleagues , friends for their encouragement, support, guidance and assistance for undergoing
industrial training and for preparing the project report.
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CERTIFICATE OF ORIGINALITY
Date
:_______________
I, Mr. Irshadhusen Inayathusen Shekh (Exam Seat No. HR4000094), the undersigned
hereby declare that the project report entitled, An Analytical Study of Performance
Management System as tool for effective Performance: A study of selected employees in
Vijayjyot Seats Private Limited submitted in partial fulfillment for the award of the Master of
Commerce Degree with specialization in Human Resource Management for the Academic year
2013-14 for the evaluation in lieu of the Annual Examination to be held in March/April, 2014
is my own work and has been carried under the guidance of Dr. Umesh R. Dangarwala.
The work is an original one and has not being submitted earlier to this university or to any
other institution/ organization for fulfillment of the requirement of a course or for award of
any Degree/ Diploma/ Certificate. All the sources of information used in this Project Report
have been duly acknowledged in it.
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PREFACE
Today we are at the doorstep of 21st Century, competition at the various levels is increasing
day by day. New and new developments are taking place and these days in all fields all over
India to make the life of the people more comfortable a luxurious.
Those in order to survive in market on should practical as well as theoretical knowledge about
all different fields existing market. In todays competitive world edges is more significant than
theoretical knowledge. Today practical training and knowledge also plays an important role.
Master education brings its students in direct contact with the real corporate world thorough
industrial training. The Master programmes provides its students with an in depth study of
various managerial activities that are performed in any organization.
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DECLARATION
I hereby declare that the entire work embodied in the Project Report entitled An Analytical
Study of Performance Management System as a tool for Effective Performance at
Vijayjyot Seats Private Limited", has been carried out by me under the supervision and
guidance of Dr. Umesh R. Dangarwala, Associate Professor , Department of Commerce and
Business Management, Faculty of Commerce, The Maharaja Sayajirao University of Baroda,
Vadodara. The matter presented in this report incorporates the results of independent
investigations carried out by me. To the best of my knowledge, no part of this report has been
submitted for any Degree or Diploma to The Maharaja Sayajirao University of Baroda or any
other University/Institution in India or Abroad.
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TABLE OF CONTENTS
Bonafide Certificate
Acknowledgements
Certificate of Originality
Declaration
Student Project Guide Interaction Report
1 INTRODUCTION : 9 to 24
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1.14 Disadvantages/ Dangers of Poorly implemented PMS 21
1.15 Characteristics of an Ideal PMS 22
1.16 Performance Review 23
1.17 Tips for Successful Performance Review 23
1.18 Successful Performance Review Conversation Needs 24
1.19 Different techniques of Performance Review 24
2 COMPANY PROFILE 26 to 32
3 REVIEW OF LITERATURE 33 to 42
4 RESEARCH METHODOLOGY 43 to 47
4.1 Title of the Research Study 44
4.2 Duration of the Research Study 44
4.3 Basic Terms of Present Research Study 44
4.4 Rationale of the Research Study 44
4.5 Scope & Coverage of Research Study 44
4.6 Objectives of Research Study 45
4.7 Research Design 45
4.8 Sources of Information 45
4.9 Sampling Design 45
4.10 Data Collection, Analysis & Interpretation 46
4.11 Significance of Research Study 46
4.12 Limitations of Research Study 46
BIBLIOGRAPHY 97
QUESTIONNAIRE 99
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CHAPTER -1
INTRODUCTION
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CHAPTER-1
INTRODUCTION
1.1 History of Performance Management :
No one knows precisely when formal methods of reviewing performance were first
introduced. According to Koontz (1971), the emperors of the Wei dynasty (AD 221-265)
in China had an Imperial Ratter whose task was to evaluate the performance of the
official family. Centuries later, Ignatius Loyola(1491-1556) established a system for formal
rating of the members of the Society of Jesus (the Jesuits).
The first formal monitoring systems, however, evolved out of the work of Federick Taylor
and his followers before World War I. Rating for officers in the US armed services was
introduced in the 1920s, & this spread to the UK, as did some of the factory-based US
systems. Merit-rating came to the fore in the USA & the UK in the 1950s & 1960s, when
it was sometimes rechristened performance appraisal. Management by objectives then
came & went in the 1960s & 1970s and simultaneously, experiments were made with the
critical incident technique & behaviourally anchored rating scales. A revised form of
results-oriented performance appraisal emerged in the 1970s, which still exists today.
The first recorded use of the term performance management is in Beer and Ruh (1976).
Their thesis was that performance is best developed through practical challenges &
experiences on the job with guidance and feedback from superiors. They described the
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performance-management system at Corning Glass Works, the aim of which was to help
managers give feedback in a helpful & constructive way, and to aid in the creation of a
developmental plan.
The concept of performance management then lay fallow for some years, but began to
emerge in the USA in the mid-1980s as a new approach to managing performance.
However, one of the first books exclusively devoted to performance managements was not
published until 1987(Plachy 1987). In the UK the first published reference to performance
management was made at a meeting of the Institute of Personnel Management (IPM)
Compensation Forum in 1987 by Don Beattie, then personnel director, ICL, who
described how it was used as an essential contribution to a massive & urgent change
programme in the organisation and had become a part of the fabric of the business. Full
recognition of the existence of performance management was provided by the research
project conducted by the Institute of Personnel Management (1992).
it involves you understanding and acting on performance issues at each level of your
organization, from individuals, teams and directorates, through to the organization itself.
As well as involving performance measurement, systems and processes, performance
management is about managing people and the way people within an organisation
operate and work together. Issues such as leadership, decision making, involving others,
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motivation, encouraging innovation, and risk taking are just as important to bring about
improvement.
This definition further demonstrates the breadth of the subject highlighting some of the
activities involved in managing performance, requiring a range of different skills and
functional approaches. This provides challenges of terminology when we discuss the
subject. Academic research in particular tend to be undertaken in functional subject areas
and often within organisations managers sit in functions and take a functional perspective
on the subject of performance.
Despite this the clear multidisciplinary, the field of performance management has
developed from diverse origins. Different measurement and management techniques and
approaches have developed independently. Financial and particularly management
accounting have been concerned with measuring and controlling the financial performance
of organisations, operations have been concerned with shop floor performance often
focusing on improving throughput and efficiency whether that be from a manufacturing or
a service perspective, strategy have been concerned with developing plans to deliver future
objectives (including planned performance) and personnel (or HR) have been concerned
with managing the performance of people. It is relatively recently that performance
management from these disparate disciplines has begun to converge and recognise the
need for integration into a multidisciplinary approach to managing performance.
A r m s t r o n g ( 1 9 9 4 ) : -
Performance management is a process for establishing shared understanding about what is
to be achieved, and an approach to managing and developing people in a way which
increases the probability that it will be achieved in the short and longer term.
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American Compensation Association (1996):-
Performance management is a means of getting better result from the organization, teams
and individuals within and agreed framework of planned goals, objectives and standards.
The performance management process is the process by which the company manages its
performance in line with its corporate & functional strategies and objectives. The objective
of this process is to provide a pro-active closed loop system, where the corporate and
functional strategies are deployed to all business process, activities, tasks and personnel,
and feedback is obtained through the performance measurement system to enable
appropriate management decisions.
Lockett (1992) :-
IDS (1997) :-
A clear focus on how each employee can contribute to the overall success of the
organization lies at the heart of performance management systems.
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Philpott & Sheppard (1992) :-
Walters (1995) :-
Two simple propositions provide the foundation upon which performance management is
built :-
(1) When people (individuals & teams) know and understand what is expected of them,
and have taken part in forming these expectations, they will use their best endeavours
to meet them.
(2) The capacity to meet expectations depends on the levels of capability that can be
achieved by individuals and teams, the levels of support they are given by management
, and the processes, systems, and resources made available to them by the organization.
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managed, the support and resources they need and how their talent should be used. The
aim is to achieve consensus because, as Fletcher (1993) put it, our perceptions of what is
real and valid in the world depend on a consensus of shared beliefs. One of the aims of
performance management could be expressed as being to clarify the psychological
contract.
Detailed Aims :-
(2) Act as a lever for change in developing a more performance oriented culture.
(4) Enable individuals to develop their abilities, increase their job satisfaction and achieve
their full potential to their own benefit and that of the organization as a whole.
(6) Develop the constructive and open relationship between individuals and their managers
in a process of continuing dialogue which is linked to the work actually being done
throughout the year.
(7) Provide opportunities for individuals to express their aspirations and expectations
about their work.
(3) Provide a framework for supervisors and employees to communicate with each other.
(4) Provide ongoing opportunities for supervisors to coach and encourage personal
development.
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(5) Align individuals performance expectations with organizational goals.
The principles of performance management have been well summarized by IRS (1996) as
follows:-
It requires a management style that is open and honest and encourages to two-way
communication between superiors and subordinates.
Feedback loops enable the experience and knowledge and gained on the job by
individuals to modify corporate objectives.
It should apply to all staff, and it is not primarily concerned with linking
performance to financial reward.
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Procedural fairness- the procedures incorporated in performance management
should be operated fairly to limit the adverse effect on individuals;
Thirdly, Performance management is concerned with satisfying the needs and expectations
of all organizations stakeholders- owners, management, employees, customers, suppliers
and the general public. In particular, employees are treated as a partners in the enterprise
whose interests are respected and who have a voice on a matters that concerns them,
whose opinions are sought and listened to. Performance management should respect the
needs of individuals and teams as well as those of the organization, recognizing that they
will not always coincide.
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Performance management is about managing the organization. It is a natural process of
management, not a system or a technique (Fowler, 1990). It is a also about managing
within the context of the business (its internal & external environment). This will affect
how it is developed, what is sets out to do and how it operates. The context is very
important, and Jones (1995) goes as far as to say manage context, not performance.
Performance management concerns everyone in the business- not just managers. It rejects
the cultural assumptions that only managers are accountable for the performance of their
teams and replaces it with the belief that responsibility is shared between managers and
team members. In a sense, managers should regard the people who report to them as a
customers for the managerial contribution and services they can provide. Managers and
their teams are jointly accountable for results and are jointly involved in agreeing what
they need to do and how they need to do it, in monitoring performance & in taking action.
The benefits to the organisation, managers and individuals of well- conceived and well-run
performance management processes are summarised below :
Improve performance.
Motivate employees.
Increase commitment.
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Help to retain skilled employees.
For Managers :
Offer the opportunity to spend structured quality time with teams and team
members.
For Individuals :
If you cant define performance, you cant measure or manage it. It has been pointed out
by Bates & Holton (1995) that Performance is a multi-dimensional construct, the
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measurement of which varies, depending on a variety of factors. They also state that it is
important to determine whether the measurement objectives is to assess performance
outcomes or behaviour.
There are of course different views on what performance is. It can be regarded as simply
the record of outcomes achieved. On an individual basis, it is a record of a persons
accomplishments. Kane (1996) argue that performance is something that the person
leaves behind and that exists apart from the purpose. Bernadin, Kane, Ross, Spina and
Johnson (1995) are concerned that-
Performance should be defined as the outcomes of work because they provide the
strongest linkage to the strategic goals of the organisation, customer satisfaction, and
economic contributions.
Performance means both behaviours and results. Behaviours emanate from the performer
and transform performance from abstraction to action. Not just the instruments for
results, behaviours are also outcomes in their own right- the product of metal and
physical effort applied to tasks- and can be judged apart from results.
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Personal factors- the individuals skill, competence, motivation and commitment.
Systems factors- the system of work and facilities provided by the organisation.
It has been well said by Mohrman and Mohrman (1995) that managing performance is
running the business. It is not a set of techniques and it is certainly not all about
performance management systems. Kermally (1997) believes that performance
management should support corporate strategy formulation and monitor value drivers,
i.e. those elements that really make the business profitable.
Culture.
Functionality.
Job design
Teamwork
Organisational development.
Strategic management.
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implemented it can change the course of growth and pace of impact of organizations. If
people do not perform organizations don't survive. If people perform at their peak level
organization can compete and create waves. In the past organizations as well as the HR
function have wasted a lot of time by wrongly focusing on performance appraisals rather
than performance management.
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or spread across multiple locations, the use of technology can help simplify the complete
process for more effective information management. Performance management could be
defined as it begins when the job is defined and ends when an employee leaves the
company. Between these points, the following should be understood for a working
performance management system :-
Developing clear job descriptions: Job descriptions are the first step in selecting the
right person for the job, and setting that person up to succeed Job descriptions provides
a framework so the applicants and new employees understand the expectations for the
position.
Selection: Jobs have different requirements. This is the process of matching the skills
and interests of a person to the requirements of a job. Finding a good job "fit" is
exceptionally important. Use of a selection process maximizes input from potential
co-workers and the person to whom the position will report.
Providing effective orientation, education, and training : Before a person can do the
best job, he or she must have the information necessary to perform. This includes
job-related, position-related, and company-related information; an excellent
understanding of product and process use and requirements; and complete knowledge
about customer needs and requirements.
Designing effective compensation and recognition systems : that reward people for
their contributions: The power of an effective compensation system is frequently
overlooked and downplayed in some employee motivation-related literature.
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challenging job assignments and responsibilities, and cross-training contribute to the
development of a more effective staff member.
Assisting with exit interviews to understand WHY valued employees leave the
organization: When a valued person leaves the company, it is necessary to understand
why the person is leaving. This feedback will help the company improve its work
environment for people. An improved work environment for people results in the
retention of valued staff.
(2) Self-esteem is increased : Receiving feedback about ones performance fulfils a basic
human need to be recognized & valued at work. This in turn is likely to increase
employees self-esteem.
(3) Managers gain insight about subordinates : Direct supervisors & other managers in
charge of the appraisal gain new insights into the person being appraised. Also,
supervisors gain a better understanding of each individuals contribution to the
organization.
(4) The definitions of job & criteria are clarified : The job of the person being appraised
may be clarified and defined more clearly. In other words, employees gain a better
understanding of the behaviours and results required of their specific position.
(5) Self-insight & development are enhanced : The participants in the system are likely
to develop a better understanding of themselves and of the kind of development activities
that are of value to them as they progress through the organization.
(6) Administrative actions are more fair & appropriate : Performance management
systems provide valid information about performance that can be used for administrative
actions such as merit increases, promotions and transfer as well as terminations.
(7) Organizational goals are made clear : The goals of the unit and the organisation are
made clear, and the employee understands the link between what she does and
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organizational success. PMS can help improve employee acceptance of these wider
goals.
(1) Increased turnover : If the process is not seen as fair, employees may become upset
and leave the organization. They can leave physically or with draw psychologically.
(2) Use of misleading information : If a standardized system is not in place, there are
multiple opportunities for fabricating information about an employees performance.
(4) Wasted time and money : Performance management systems cost money and quite a
bit of time. These resources are wasted when systems are poorly designed and
implemented.
(6) Decreased motivation to perform : Motivation may be lowered for many reasons
including the feeling that superior performance is not translated into meaningful tangible
or intangible rewards.
(7) Employee burnout & job dissatisfaction : When the performance assessment
instrument is not seen as valid and the system is not perceived as fair, employees are
likely to feel increased levels of job burnout & job dissatisfaction.
(8) Increased risk of litigation : Expensive lawsuits may be filed by individuals who feel
they have been appraised unfairly.
(1) Strategic congruence: The system should be congruent with the unit and organisations
strategy. In other words, individual goals must be aligned with unit and organizational goals.
(2) Thoroughness : The system should be thorough regarding four elements :all employees
should be evaluated, all major job responsibilities should be evaluated, the evaluation should
include performance spanning the entire review period, not just the few weeks or months
before the review and feedback should be given on positive performance aspects as well as
those that are in need of improvement.
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(3) Practicality: Systems that are too expensive, time consuming and convoluted will
obviously not be effective. Good, easy-to- use systems are available for managers to help them
make decisions.
(4) Specificity : A good system should be specific: it should provide detailed and concrete
guidance to employees about what is expected of them an how they can meet these
e x p e c t a t i o n s .
(6) Reliability : A good system should include measures of performance that are consistent
and free of error. For example, if two supervisors provided ratings of the same employee and
performance dimensions, rating should be similar.
(7) Validity : The measures of performance should also be valid. In this context, validity refers
to the fact that the measures include all relevant performance facets and do not include
irrelevant performance facets.
Everybody who works for you needs to know where they stand and how they are doing
compared to your expectations of them. Many companies have formal review systems to
let employees know how their performances stack up. Reviews may be conducted as
often as every three months, but annual reviews are most popular.
Each review should go over the goals that were set when the employee started the job or
during the last performance evaluation. Then the review should examine how well the
employee has done toward reaching these goals. The employee should be asked to rate
his or her performance, in addition to relying on objective measurements such as sales
figures. You and the employee should then discuss the desirability of trying to reach
goals that haven't yet been achieved, and you should both set goals for the future.
But reviews and evaluations are often justifiably viewed as little more than formalities
that accomplish little or nothing in the way of true feedback. To make formal evaluations
go more smoothly, and to eliminate any surprises on the employee's part, give feedback
at the time something occurs to warrant it.
Formal performance reviews are a crucial part of the ongoing dialogue between
managers and their employees. The objectives of the review conversation are to make
sure that the employee and manager share a clear definition of the job, an understanding
of performance expectations for the position, and an assessment of the employee's
performance.
Properly designed and realized process of employees appraisal is not only the necessary
basis of successful employee performance management, but also provides valuable
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information for other human resource management functions. Performance Appraisal is
important because it helps in Performance Feedback, Employee Training and
Development Decisions, Validation of Selection process, Promotions & Transfers,
Layoff Decisions, Compensation Decisions, Human Resource Planning (HRP), Career
Development and Develop Interpersonal Relationship.
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2. Scale rated by identifying the best 4.Reduce the personal equally important in
score that best describes his or bias. evaluation of the
her performance for each trait. employees performance.
BARS combines elements from 1. Job behavior describe 1. Scale independence may
critical incident & graphic employee performance in not be valid/reliable.
rating scale approach. The a better way. 2. Behaviors are activity
6. Behaviorally supervisors rates employees 2. More objective. oriented rather than result
Anchored Rating according items on a numerical 3. More acceptances due oriented.
Scale (BARS) scale. to participation of 3.Very time consuming for
managers & employees. generating BARS.
4. Each job require
creating separate BARS
scale.
Employees are evaluated over a 1. Concepts are simple. 1. Expensive & difficult to
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period of time; say one or three 2. Highly flexible manage.
days, by observing their methodology. 2. Requires a large staff.
7. Assessment behaviors across a series of 3. Helps in selection & 3. Requires a great deal of
Centers selected exercises or work promotion decisions and time.
samples. for diagnosing employee 4. Only a limited no. of
development needs. people can be processed at
4. Exercise is hard to a time.
fake.
CHAPTER- 2
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COMPANY
PROFILE
CHAPTER 2
COMPANY PROFILE
The two Iron-men, in its true pioneering spirit, contemplated the manufacture of Artificial
Leather in 1954 and initiated manufacturing of Artificial Leather cloth in Malad, Mumbai and
marketing it all over the country through Ahmedabad, Bangalore, Kolkata and Chennai.
In 1962 a plot was acquired at Kandivli, Mumbai and the manufacturing base was shifted here
by the name of The National Leather Manufacturing Company (NLC). They imported
Dornbusch coating lines and the best quality of Artificial Leathercloth became a reality!
The years passed by and there was no looking back as the Group was growing in leaps and
bounds. It was just a beginning for the team which was later strengthened when Late Shri.
Gandalals son, Late Mr.Kantilal Shah and Late Mr.Amrutlal Motasha joined the business.
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Later, Mr.Arvind Motasha, son of Late Mr.Vadilal Motasha also joined and the team was
further strengthened.
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About Joyride :-
Joyride seat covers made from superior grade of leather cloths, Joyride offers better protection
from harsh UV rays and keeps the seats cooler. The product is specially designed for Indian
climate keeping in mind essential factors such as heat management, durability, environment
and the value for money.
Durability and long life :-
Joyride offers all weather protection and comes with 3 years warranty.
About Vijayjyot :-
Vijayjyot seating components division is leading components manufacturer for Metro, Bus,
Car, Cinema and Auditorium seats. The product line includes fabrication of Metal Frames (MS
and SS), Polyurethane (PU) Foam and Upholstery / Trim Covers. We also manufacture and
supply fully assembled Railway seats.
Its seating components division provides one-stop solution to customers from design
inception, proto-type sample, product development to commercial supplies. Facilities include
Design center, Tool room, Weld shop with advanced technology like Multi Axis Bending
Machine, Cutting & Sewing Machines and PU Machines. The plant is located in Halol, near
Vadodara in state of Gujarat, INDIA.
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About Royal Knitting :-
Initially Royal Knitting Pvt. Ltd [RKPL] established in 1983, produced knitted fabrics to meet
the in-house requirements for leather cloth backing, for our sister concern - National Leather
cloth Mfg. Co. and Vinyroyal Plasticoates Pvt. Ltd. Today RKPLs installed capacity stands at
175 tones/month of circular knitted fabrics and 20 tones/month of warp knitted fabrics.
Only 30% of the capacity is utilized to make supplies to group company, 50% supplies are
made to other local Artificial Leathercloth manufacturers & exports and remaining 20%
supplies go to OE customers such as Melba, Faze 3, Reliance, Shamkeen. In OE the fabric is
applied for back scrim application in automotive upholstery.
Production facility consists of 28 circular knitting machines (Single Jersey, Terry, Interlock) of
Mayer & Cie make, 4 Orizio make, 2 Taifan make and 1 Fukuhara.
Warp Knitting machines of Karl Mayer; of which 2 are KS-3 and 1 HKS-3M.
Raising machine of Daintipaolo. Future plans include setting up of in-house dyeing & finishing
line.
Its design & development facility is located in plant in Baska, near Baroda, Gujarat and plant
in Pune, Maharastra. They have state of art of technology development centre where 20
dedicated engineers/ staff are involved in development of new products and applications round
the clock for various segments of seating systems. They are an ISO/ TS 16949:2000 certified
company.
Its People :-
Their main focus is future growth of company lies with its human resource people. The
human skills are updated with training inputs on a regular basis and also have a
HR practices in our organisation. Our top management is involved in HR policy within the
organization, that a clear indication that we are people performance organization.
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They have a very wide spread sales and marketing network covering 4 regions of the country.
Our representation is very strong even in overseas market like Middle East, Russia, Europe
and North America. After sales service to all our customers are being monitored in the form of
Customer Satisfaction Index. This is to assess and improve various parameters of services
within our setup on the basis of customer's feedback.
Its group :-
The journey of samsons group started way back in 1932 by the confluence of two families
Shahs' and Motashas' in the form of small trading house. Subsequently, National Leathercloth
was in 1954, Royal Knitting (fabric) in 1978 & Vijayjyot Seats Pvt. Ltd. ( VSPL) in 1989.
Group turnover is around Rs. 200 crores (U$ 45 MIO).
INDUSTRIAL CERTIFICATION
Verification Type: Third-party verification service provider
Country/Territory: India
Registered Address: 60 CD, "SHLOK"GOVT. INDUSTRIAL
ESTATE,CHARKOP, KANDIVLI (WEST), Mumbai,
Maharashtra, India Zip: 400067
Legal Form: Private Organization
Registration No.: 053554
Issuing Authority: Ministry of Corporate Affairs
Date of Issue: 1989-09-20
Applicant Information
Name: Suvrat Mahesh Shah
Job Title: CEO
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Product Categories :
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CHAPTER -3
REVIEW OF
LITERATURE
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CHAPTER -3
REVIEW OF LITERATURE
Watkins (2007) puts 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 review benefit organizational performance in both private & public
sectors. Performance management has been described as a systematic approach to the
management of people, using performance goal measurement, feedback and
recognition as a means of motivating them to realize their maximum potentials. 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 & motivate them with incentives.
Robert & Angelo (2001), The success or failure of public sector business organizations
depends on the ability to attract, develop, retain, empower & reward a diverse array of
appropriately skilled people and is the key to improving organizational performance.
The explanation therefore is that human resource managers in the public sector
business concerns should embark on periodic performance management reviews of
their employees in order to re-position their business organizations though owned by
government for better performance & improved competitiveness.
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Study by Wm. Schiemann & Associates (1996), this national survey of cross-section
of executives concluded that measurement-managed companies- especially those that
measure employee performance- outperform those that downplay measurement.
These research studied 122 organizations making between $27 million and $50 billion
in sales. A higher percentage of measurement-managed companies were identified as
industry leaders, as financially in the top third of their industry, and as successfully
managing their change efforts. The research examined performance in six strategic
performance areas deemed crucial to long-term success : Financial performance,
operating efficiency, customer satisfaction, employee performance, innovation/change,
community/environment. The findings revealed that the biggest measurement area
separating successful from less successful firms is employee measurement. Successful
industry leaders simply do a better job than non-leaders at measuring their workforce,
which the study say is where real change won or lost.
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searching for unique ways in which to differentiate themselves from their competition
and are increasingly looking to their human resources to provide this differentiation.
This has led to much interest in the performance of employees, or more importantly,
how to get the most out of employees in order to sustain competitive success.
performance in all three models and communication practices in two. These results
show the usefulness of an innovative technique when applied to research so far
conducted through traditional methodologies, and brings to the surface questions
about the universal applicability of the widely accepted relationship between superior
HRM and superior business Performance.
Sharmistha Bhattacharjee and Santoshi Sengupta (2011) studied that employees are
the most valuable and dynamic assets of an organization. For achieving the strategic
objective of sustained & speedy growth, managing human resource has been featured
as a vital requirement in all organizations. It is a challenge to monitor the entire cycle
of defining the competence requirement of the business, accessing existing competence
in the organization and bridging the gap between the two. HR practices are crucial for
any organization. Every phase from recruitment to exit interview is under the HR
department. It is a challenge to monitor the entire cycle of defining the competence
requirement of the business, accessing existing competence in the organization and
bridging the gap between the two. In a manufacturing industry, with every technical
advancement business opportunities can show up. These opportunities can be
converted into business success only with performance alignment and competence
management.
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The research paper of Mohammad Tanvi Newaz (2012) provides an analysis and
evaluation of the role of performance management system in shaping psychological
contract at Sainsburys UK by a case study approach. Sainsburys has adopted the
performance management system to utilize the potential of their employees but result
of data analysis indicates that line managers have failed to achieve the objective of the
performance management system. This research analysis reveals how the line managers
of Sainsburys focus on short term goal i.e. financial success instead of long term goal
i.e. employee development. However, the performance management system of
Sainsburys comprises all the necessary components to play a significant role in
developing employees as well as facilitating the formation of a positive psychological
contract. But partial and inattentive implementation of the system makes the situation
unfavourable for the psychological contract to develop at Sainsburys UK.
The article of Javed Iqbal , Samina Naz, Mahnaz Aslam, Saba Arshad (2012), offers
a survey of selected literature on performance management. Purpose is to identify key
themes that govern the topic in the contemporary turbulent economic and business
environment where employees are more uncertain that anything else because every day
they face downsizing, volunteer retirement and golden hand shakes to get rid of
them. Under these circumstances it is worthwhile to look into the ways by which they
can be motivated to work under hard conditions. It is found that performance
management processes, evaluation, its impact and factors are key themes. Researchers
apply popular research approaches for data collection analysis and communication.
The paper of Akua Asantewaa Aforo and Kodjo Asafo-Adjei Antwi (2012) shows
that academic libraries have a performance appraisal system comprising setting of
goals, feedback, participation and incentives for performance. This study aimed at
evaluating the performance appraisal system in the KNUST and GIMPA libraries in
Ghana and give recommendations on improving the system. Questionnaires were
randomly administered to 46 staff members of these libraries.
The aim of this study of Akinyele S. T. (2010) was to evaluate the effectiveness of
performance appraisal system at private universities in Nigeria. The focus of the study
was on the administrative staff of Crawford University. The study evaluated the
purpose of performance appraisal in private universities and identifies relevant factors
for achieving an effective performance appraisal. A cross- sectional survey was
selected for this study because it was easy to undertake compared to longitudinal
survey and the results from the same can be inferred to the larger population. The
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study population was for all the administrative staff of Crawford University. The whole
populations of staff were selected as respondents. A structured questionnaire was used
to collect the data for analysis. The effectiveness of performance appraisal systems in
private universities are only based on training the members of staff involved in the
rating/ appraising process and are multi- rating systems. Conclusively because the
performance appraisal systems used in private universities are not effective and that
they exist just as a matter of formalities, the private universities cannot measure
members of staff performance, hence making it difficult to achieve the intended human
resource management objective.
The paper of Al Bento and Regina Bento (2006) proposes and tests a model to
explain three critical outcomes of Performance Management Systems: information
quality, effectiveness, and usefulness of the PMS to managerial decision-making.
Drawing from Organizational Information Processing Theory (OIPT), we examined
how those three outcomes may be influenced by factors that affect OIP requirements
(industry, size, and geographic scope of operations) and by organizational and
technological factors that affect OIP capabilities. Organizational factors included
management's decision-making style and organizational structure. Technological
factors included the types of technology used in the PMS (ERP; specialized tools such
as EIS and DSS; and generic tools such as Excel, Access and Lotus Notes), and the
degree of use of e-commerce and Internet technologies.
The study of George Ndemo Ochoti, Elijah Maronga, Stephen Muathe, Robert
Nyamao Nyabwanga, Peter Kibet Ronoh (2012) investigated the multifaceted factors
influencing employee Performance Appraisal System in the Ministry of State for
Provincial Administration, Nyamira District, Kenya. A target population of 76
employees was surveyed. A structured questionnaire was self-administered to the
employees to collect data. Multiple regression analysis technique was used to explain
the nature of the relationship between PAS and the factors that influence it. Results of
the study showed that all the five factors: Implementation process (X1), interpersonal
relationships (X2), rater accuracy (X3), informational factors (X4), and employee
attitudes (X5) had a significant positive relationship with the performance appraisal
system (Y). It shows that if these factors are taken into consideration by the ratees, the
raters and the government policy makers, the PAS can be a good performance
management tool.
The paper of Jawaria Andleeb Qureshi, Asad Shahjehan, Zia-ur-Rehman and Bilal
Afsar (2010) notifies that many organizations install Performance Management
Systems (PMS) formally and informally in their organizations, with the motivation to
achieve better organizational results. In practice, organizations have difficulty in
implementing a performance management system because its different dimensions are
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not taken into considerations enough. This article describes the findings of a
comparative analyses conducted between a standard performance management model
and performance management systems as applied by Local Development Organization
(LDO). Data was collected from 50 employees of the organization with a Cronbach
Alpha (0.935). Results identified barriers to implementation of effective PMS, also
recommendations and viable solutions are presented.
Research of Leena Toppo, Twinkle Prusty (2012) informs that performance appraisal
and performance management were one of the emerging issues since last decade. Many
organizations have shifted from employees performance appraisal system to
employees performance management system. This paper has focused to study the
evolution of employees performance appraisal system, critics the system suffered and
how the performance management system came to the practice. The main purpose of
this paper is to differentiate these two systems, employees performance appraisal and
management system. This paper uses a review of the literature to evaluate the
development of appraisal system and argues the critic areas of appraisal system.
Performance management eliminates the shortcomings of performance appraisal
system to the some extent.
There are, however, several models which have attempted to explain how HR policies
have an impact on firm performance, one such model adopted as a conceptual
framework in this paper is the People Process Framework (Gratton 1996). This
framework focuses on individual performance linked to organizational performance
and is designed to deliver short term business objectives as well as long term
sustainable success. The model clearly identifies a set of HR practices which have been
designed to link individual effort to the overall objectives of the business and also
strikes a balance between achieving short term goals and preparing the company for its
future long term success. The major focus of the research will be on the processes
which contribute to short term business success, given their direct relevance to PMS
and the crucial role of line managers in their implementation. These short term
processes are critical to the overall success of the business as they provide the
foundations to encourage sustained performance through clear identification of
objectives, continuous assessment of performance against those objectives, reward
strategies that emphasize the required behaviors and the provision of training and skills
which will improve performance. Implemented correctly, these processes should
enhance the individuals confidence in themselves and their company creating an
environment where employees want to perform rather than feeling like they
have to perform. Long term success is only possible therefore when the short term
processes generate this type of response.
Whittaker and Marchington (2003) found evidence in their study that line managers
spent very little time on people management issues, preferring instead to concentrate
on financial or business objectives. Hope Hailey et al (2005) report that line managers
are only measured on their technical role and not their people management
responsibilities. The appraisal process is therefore of secondary importance to them
and the appraisal is generally approached with little preparation, training or enthusiasm
(Cook and Crossman 2004, Holt-Larsen and Brewster 2003). To address this,
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Hendry et al (2000) argue that not only should line managers own the performance
management process but that they should be involved in its design, and only by
involving them at this stage will they buy-in to the process. Lack of management
buy-in can potentially frustrate the whole purpose of a performance management
system, leading to an inability to meet short-term goals as well as failure to address
longer term developmental opportunities (Weeks, 2005).
Lohr (1981) had stated that even Abraham Taylor (1856-1915) widely regarded as the
father of Scientific Management in his legendary thesis on performance improvement in
organizations had recognized the negative influences of groups on performance and
sought to break-up informal group activities through spatial and work-flow designs
and individual piece rate systems of pay. Taylor had based his management system on
production-line time studies. Instead of relying on traditional work methods, he
analyzed and timed steelworkers movements on a series of jobs. Using time study as
his base, he broke each job down into its components and designed the quickest and
best methods of performing each component (Idemobi et al 2010). In this way he
established how much workers should be able to do with the equipment and materials
at hand. He also encouraged employers to pay more productive workers at a higher
rate than others, using a scientifically correct rate that would benefit both company
and worker. Thus, workers were urged to surpass their previous performance
standards to earn more pay. Taylor called his plan the differential rate system. Rather
than quarrel over profits, both management and workers should try to increase
production and by so doing, he believed, profits would rise to such an extent that
labour and management would no longer have to fight over them.
Although the use of goal setting is primarily used to improve performance, there are
other benefits such as: to clarify expectations, to improve job satisfaction, to enhance
self-esteem through attainment of goals and to improve quality of work (Locke and
Latham 1984).Appraisal provides the mechanism to provide effective feedback on
achievement of which is an important factor in improving performance (Williams 2002).
Fletcher (2004) describes it as a high risk activity for managers, given the many
pitfalls associated with it and Newton and Findlay (1996) highlight the fallibility of
appraisals as they are open to manager manipulation. Despite the criticisms, the use of
performance appraisal is widespread and perceived to be an effective part of a
performance management system (CIPD 2005a).
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type of reward and how it is linked to performance management varies by organization
(IDS 2003). There are many differing views on the effectiveness of PRP (Williams
2002) and whether or not it contributes to improved performance. It has been argued
that PRP is a process of control, rather than contributing to real development (Hendry
et al 2000).
(Gratton 1996)There has been a change in scope of the appraisal process in recent
years, with an increasing focus on employee development, as more and more
businesses focus on how targets are achieved rather than just the achievement itself.
This has led to a combination of both objectives (outputs) and competencies (inputs,
Taylor, 2005) and the recognition that personal development planning (PDPs) are a
fundamental part of a PMS. By offering employees the opportunity of enhancing their
skills through training, levels of self-confidence will improve and performance will be
enhanced (White 1999).
Robert and Angelo, (2001) The success or failure of public sector business
organizations hinges on the ability to attract, develop, retain, empower and reward a
diverse array of appropriately skilled people and is the key to improving organizational
performance The explanation therefore is that human resource managers in the public
sector business concerns should embark on periodic performance management reviews
of their employees in order to re-position their business organizations though owned
by government for better performance and improved competitiveness.
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Sung & Ashton,(2005)It is the business strategy that gives the high performance
working practices their dynamism and provides the framework against which
performance can be evaluated and improved. Thus, the concern is not with the specific
type or number of practices employed, but the way they are linked to organizational
performance.
Results from the Watson Wyatt Worldwide (2004) study suggest that PM systems
should recognize high performers and confront poor performers as soon as possible,
eliminate paper forms, and utilize a user-friendly automation. Researchers from
Watson Wyatt Worldwide also assert that if PM systems are designed and
implemented properly, they can lead to positive impact on individual performance as
well as better financial results for the organization (i.e., improvement in shareholder
value).
A study conducted by McDonald and Shield of Hewitt Associates found that companies
that used performance management programs had greater profits, better cash flow,
stronger stock market performance and greater stock value than companies that did not.
Not only performance management improved financial performance, but it also
improved productivity; companies with such programs had higher sales per employees
(Rheem, 1995). Nonetheless, performance management has been mistaken as performance
evaluation. As a matter of fact, both performance management and performance evaluation
are related but they are not exactly the same concept. Performance management is a
systematic process for improving organizational performance by developing the performance
of individuals and teams; it is a mean of getting better results from the organization, teams,
and individuals by understanding and managing performance within an agreed framework of
planned goals, standards, and competence requirement
(Armstrong, 2006). While performance evaluation is a process of assess and rate past
performance of individuals or groups (Oct 2004). Performance evaluation is just a part of
performance management.
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CHAPTER-4
RESEARCH
METHODOLOGY
CHAPTER-4
RESEARCH METHODOLOGY
4.1 TITLE OF THE RESEARCH STUDY :
Performance : Performance means both behaviours and results. Behaviours emanate from
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just the instruments for results, behaviours are also outcomes in their own
right- the product of metal and physical effort applied to tasks- and can be
Management :Management is the art of getting things done through and with people in
The research was conducted in Vijayjyot Seats Private Limited. The research study was
focus on performance management system in Vijayjyot seats private limited. It also
measure & evaluate the effective performance on the basis of employees overall
awareness, expectations & satisfaction or dissatisfaction as an outcome of offering various
kinds of incentives & employees morale as offered by the performance management
system of Vijayjyot seats (P) Ltd.
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4.6 OBJECTIVES OF RESEARCH STUDY :
The research design of this study considering its objectives, scope & coverage was
exploratory as well as descriptive in nature.
The primary data has been obtained from the selected employees & senior executive
at various departments of Vijayjyot Seats Private Limited through circulation of the
structured non-disguised questionnaire.
The secondary data has been obtained from published as well as unpublished
literature on the topic and from Books, Journals, News Papers, Research Articles,
Thesis, Websites, Magazines etc.
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4.9.1 SAMPLE SIZE:
Appropriate number of sample size (i.e. 60) was put to used for the purpose of
collecting primary data from the selected employees of different departments of the
Vijayjyot Seats Private Limited.
The representative sampling units in appropriate & justified size has been
conveniently drawn from amongst different employees across various heterogeneous
socio- economic age groups, occupations, educational qualifications,
gender who have availed incentives & employees morale as offered by the
performance management system of the Vijayjyot Seats Private Limited.
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4.10 DATA COLLECTION, ANALYSIS & INTERPRETATION :
The collected information and primary data has been subjected to data analysis and
interpretation, content analysis and statistical analysis. The collected primary data has
been pre-coded considering the designing of the structured non-disguised questionnaire.
The primary data has been scrutinized, edited and validated and thereafter it has been
presented in the forms of tables, charts, graphs and diagrams as the case may be.
This research study has covered the performance management system which help to find
effective performance of the employees. The employees has been aware of the
performance standard of the company. It has been create awareness of performance
management system to improve effective performance and also to the different criteria of
the Vijayjyot Seats Private Limited. This research study also assists to Vijayjyot Seats
Private Limited authorities in the designing of the performance management system for
improving performance. Organisation will be able to develop performance review
techniques to control the performance of the employees.
The researcher has been use selected statistical tools which are relevant to
research study & thus having limited generalizability.
The time factor in collecting the responses as in conducting the research study has
limited factor.
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In lieu of the variation in the cooperation and involvement of selected employees
at different departments of Vijayjyot Seats Private Limited, there may be
inaccuracy of the responses given by them.
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CHAPTER5
DATA ANALYSIS &
INTERPRETATIONS
CHAPTER 5
DATA ANALYSIS & INTERPRETAION
Section A : General Profile of Respondents:
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(1) Gender :
TABLE: 1
Sr. Gender Frequency Percentage
No. (%)
1. Male 52 87
2. Female 08 13
Total 60 100
Interpretation : From the above table, 87% of employees lies under the male
category and 13% employees lies under the Female category.
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(2) Age :
TABLE: 2
Sr. No Age Frequency Percentage (%)
1 20-25 12 21
2 26-35 24 41
3 36-50 20 35
4 50 above 02 3
Total 60 100%
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(3) Qualification :
TABLE: 3
Sr. No Educational Qualification Frequency Percentage (%)
1 Under Graduate 6 10
2 Graduate 22 37
3 Post Graduate 12 20
4 Diploma 6 10
5 Others 14 23
Total 60 100%
TABLE: 4
Sr. No Job Experience Frequency Percentage (%)
1 Less than one year 04 07
2 2-10 years 34 56
3 More than 10 years 22 37
Total 60 100%
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Interpretation : From the above table, 56% of the respondents have work
experience of 2-10 years, 37% of the respondents have work experience of
more than 10 years, and 7% of the respondents have work experience of less
than one year.
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Interpretation : From the above table, 87% respondents are in favour of
organization operate formal performance management system, 13% respondents are
not in favour of organization operate in formal performance management system.
(2) If yes, which of the following groups of employees do this processes apply to?
TABLE: 6
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Sr. No. Levels Frequency
1 Senior Managers 2
2 Other Managers/ Team leaders 10
3 Technical/ clerical 40
4 Professionals 00
5 Manual/ Blue-collar 00
Total 52
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managers/ team leaders do this process applied and remaining 02 respondents (i.e.
senior managers) do this process applied.
(3) What are the techniques that are used in your organisation for assessing
performance?
TABLE: 7
Sr. Techniques Frequency Percentage (%)
No.
1 Observation 6 10
2 Assessment & Development Centre 2 03
3 Checklist 52 87
Total 60 100
(4) Please indicate which of the following methods of performance appraisal from a
part of your system?
TABLE: 8
Sr. No. Methods Frequency Percentage (%)
1 Written Essay Method 50 83
2 Graphical Rating Scale 04 7
3 Ranking Method 04 7
4 360 Degree Appraisal 00 00
5 Self Appraisal 02 3
6 Critical Incident 00 00
Assessment
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Total 60 100
(5) Please rate your satisfaction with the following part of your current performance
management system :
TABLE: 9
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2 Satisfied 08 13
3 Neutral 00 00
4 Unsatisfied 00 00
5 Very Unsatisfied 00 00
Total 60 100%
Interpretation : From the above table, 87% respondents are very satisfied about
performance planning/ goal setting of current performance management system, 13%
respondents are satisfied about performance planning/goal setting of current performance
management system.
2. Performance Evaluation :
TABLE: 10
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Interpretation : From the above table, 87% respondents are very satisfied about
performance evaluation of current performance management system, 13% respondents
are unsatisfied about performance evaluation of current performance management system.
3. Development Planning :
TABLE: 11
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Interpretation : From the above table, 83% respondents are very satisfied about
development planning of current performance management system, 3% respondents are
satisfied about development planning of current performance management system, 14%
respondents are unsatisfied about development planning of current performance
management system.
TABLE: 12
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Interpretation : From the above table, 70% respondents are very satisfied about 360
degree feedback of current performance management system, 14% respondents are
satisfied about 360 degree feedback of current performance management system, 13%
respondents are neutral about 360 degree feedback of current performance management
system.
Majority of respondents are very satisfied about 360 degree feedback of current
performance management system.
TABLE: 13
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Interpretation: From the above table, 87% respondents are very satisfied about
coaching & mentoring of current performance management system,13% respondents are
neutral about coaching & mentoring of current performance management system.
Majority respondents are very satisfied about coaching & mentoring of current
performance management system.
6. Training:
TABLE: 14
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Interpretation : From the above table, 87% respondents are very satisfied about
training of current performance management system,10% respondents are very unsatisfied
about training of current performance management system, 3% respondents are
unsatisfied about training of current performance management system.
7. Leadership Development :
TABLE: 15
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Interpretation : From the above table, 83% respondents are very satisfied about
leadership development of current performance management system, 10% respondents
are very unsatisfied about leadership development of current performance management
system, 4% respondents are satisfied and 3 % respondents are unsatisfied about
leadership development of current performance management system.
8. Rewards :
TABLE: 16
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Interpretation : From the above table, 80% respondents are very satisfied about
rewards of current performance management system, 6% respondents are satisfied about
rewards of current performance management system, 7 % respondents are unsatisfied
about rewards of current performance management system, 7% respondents are very
unsatisfied about rewards of current performance management system.
9. Discipline :
TABLE: 17
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Interpretation : From the above table,73% respondents are very satisfied about
discipline of current PMS,15% respondents are satisfied about discipline of current
performance management system, 9% respondents are unsatisfied about discipline of
current performance management system,3% respondents are very unsatisfied about
discipline of current performance management system.
TABLE: 18
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Interpretation : From the above table, 83% respondents are very satisfied about
effectiveness of current PMS, 7% respondents are unsatisfied about effectiveness of
current PMS, 10% respondents are very unsatisfied about effectiveness of current PMS.
(6) What are the major elements of your business strategy at present? (give rank in order of
importance, with one being most importance).
TABLE: 19
Ran Business Strategy Frequenc
k y
1 Increase Productivity 40
2 Increase Efficiency 50
3 Improve Quality 42
4 Reduce production time 50
5 Expand Market 42
6 Reduce cost 42
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Interpretation : From the above table, 40 respondents give rank 1st to the Increase
Productivity, 50 respondents give rank 2nd to the Increase Efficiency,42 respondents give
rank 3rd to the improve quality, 50 respondents give rank 4th to the reduce production
time, 42 respondents give rank 5th to the expand market, 42 respondents give rank 6th to
the reduce cost.
(7) Are you believe the current performance management system improving
performance?
TABLE: 20
Response Frequency Percentage (%)
Yes 50 83
No 10 17
Total 60 100
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Interpretation : From the above table, 83% respondents are believed the current
performance management system improving performance, 17% respondents are believed the
current performance management system not improving performance.
Page | 75
TABLE: 21
Particulars Frequency Percentage (%)
Strongly Agree 05 100
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 00 00
Total 05 100
Interpretation : From the above table, all HR professionals are strongly agree with PM
helps to them motivate team.
TABLE: 22
Particulars Frequency Percentage (%)
Strongly Agree 05 100
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 00 00
Total 05 100
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Interpretation : From the above table, all HR professionals are strongly agree with PM
helps to decide what to pay members of their teams.
TABLE: 23
Particulars Frequency Percentage (%)
Strongly Agree 05 100
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 00 00
Total 05 100
Interpretation : From the above table, all HR professionals are strongly agree with PM
helps them to develop the skills & capabilities of their team.
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(4) Performance management helps my team to perform better :
TABLE: 24
Particulars Frequency Percentage (%)
Strongly Agree 05 100
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 00 00
Total 05 100
Interpretation : From the above table, all HR professionals are strongly agree with PM
helps their team perform better.
TABLE: 25
Particulars Frequency Percentage (%)
Strongly Agree 05 100
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 00 00
Total 05 100
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Interpretation : From the above table, all HR professionals are strongly agree with PM
helps them to communicate their team what is expected of them.
TABLE: 26
Particulars Frequency Percentage (%)
Strongly Agree 01 20
Agree 01 20
Neutral 00 00
Disagree 00 00
Strongly Disagree 03 60
Total 05 100
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Interpretation: From the above table, It is concluded that 60% HR professionals
perception strongly disagree about performance review is they are not comfortable with
conducting performance reviews, 20% HR professionals are strongly agree with the
comfortable of conducting performance review, and 20% HR professionals are agree about
they are comfortable with conducting performance review.
(7) Performance management is generally only of use to the personnel department, not
individual line managers :
TABLE: 27
Particulars Frequency Percentage (%)
Strongly Agree 00 00
Agree 00 00
Neutral 00 00
Disagree 01 20
Strongly Disagree 04 80
Total 05 100
Interpretation: From the above table,80% of the HR professionals are strongly disagree
about the PM is generally use to the only personnel department, not individual line managers
and 20% of HR professionals are disagree about the PM is use to only personnel department,
not individual line managers.
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It is here concluded that majority of HR professionals are believed PM is use to not only to
the personnel department but also to the individual line managers.
TABLE: 28
Particulars Frequency Percentage (%)
Strongly Agree 00 00
Agree 00 00
Neutral 01 20
Disagree 03 60
Strongly Disagree 01 20
Total 05 100
Interpretation : From the above table, 60% HR professionals are disagree about
information generated from performance review is unproductive & of no value, 20% HR
professionals are strongly disagree about information generated from performance review is
unproductive & of no value; and 20% are neutral about information generated from
performance review is unproductive & of no value.
Majority are strongly disagree about info. generated from performance review is unproductive
& of no value.
(9) The time I spend on performance reviews could be used more productively
elsewhere :
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TABLE: 29
Particulars Frequency Percentage (%)
Strongly Agree 00 00
Agree 03 60
Neutral 00 00
Disagree 02 40
Strongly Disagree 00 00
Total 05 100
Interpretation : From the above table, 60% HR professionals are agree about time spend by
them on performance review is more productively elsewhere, 40% HR professionals are
disagree about time spend by them on performance review is more productively elsewhere.
(10) The current performance management system works well & does not need to
change :
TABLE: 30
Particulars Frequency Percentage (%)
Strongly Agree 05 100
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 00 00
Total 05 100
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Interpretation : The above charts shows that, all HR professionals strongly agree with
current performance management system works well & does not need to change.
(11) I am satisfied that I give consistent & fair rating to members of my team :
TABLE: 31
Particulars Frequency Percentage (%)
Strongly Agree 00 00
Agree 05 100
Neutral 00 00
Disagree 00 00
Strongly Disagree 00 00
Total 05 100
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Interpretation : The above chart shows that, all HR professionals are agree with they are
satisfied about they give consistent & fair rating to members of their team.
TABLE: 32
Particulars Frequency Percentage (%)
Strongly Agree 00 00
Agree 01 20
Neutral 00 00
Disagree 00 00
Strongly Disagree 04 80
Total 05 100
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Interpretation: The above chart shows that, 80% HR professionals are strongly disagree
with they are satisfied that performance review techniques use in assessing employees
performance more effective, and 20% HR professionals are agree with that.
TABLE: 33
Particulars Frequency Percentage (%)
Strongly Agree 01 20
Agree 03 60
Neutral 00 00
Disagree 01 20
Strongly Disagree 00 00
Total 05 100
Interpretation : From the above table, 60% HR professionals are agree about performance
review techniques more impact on employees performance, employees incentive & morale,
20% are strongly agree and 20 % are disagree about performance review techniques more
impact on employees performance, employees incentive & morale.
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(14) The documentation associated with performance management is unclear &
unhelpful :
TABLE: 34
Particulars Frequency Percentage (%)
Strongly Agree 00 00
Agree 00 00
Neutral 00 00
Disagree 01 20
Strongly Disagree 04 80
Total 05 100
Interpretation : From the above table,80% HR professionals are strongly disagree about
documentation associated with performance management is unclear & unhelpful, 20% HR
professionals are disagree about documentation associated with performance management is
unclear & unhelpful.
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Section D : Perception of Employees/ Individuals :
TABLE: 35
Particulars Frequency Percentage (%)
Strongly Agree 46 84
Agree 00 00
Neutral 00 00
Disagree 09 16
Strongly Disagree 00 00
Total 55 100
Interpretation : From the above table, 84% respondents are strongly agree about they have
authority to determine their work objectives , 16% respondents are disagree about they have
no authority to determine their work objectives.
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TABLE: 36
Particulars Frequency Percentage (%)
Strongly Agree 44 80
Agree 02 4
Neutral 00 00
Disagree 09 16
Strongly Disagree 00 00
Total 55 100
Interpretation : From the above table, 80% respondents are strongly agree for they have
received a lot of feedback on their performance, 4% respondents are agree for they have
received a lot feedback on their performance ;and 16% respondents are disagree for they have
not received a lot of feedback on their performance.
TABLE: 37
Particulars Frequency Percentage (%)
Strongly Agree 44 80
Agree 02 4
Neutral 00 00
Disagree 00 00
Strongly Disagree 09 16
Total 55 100
Page | 88
Interpretation : The above chart shows that, 80% respondents are strongly agree for the
most important thing about their job is the pay,4% respondents are agree for the most
important thing about their job is the pay and; 16% respondents are strongly disagree for the
most important thing about their job is the pay.
Majority respondents are in favour of the most important thing about their job is the pay.
TABLE: 38
Particulars Frequency Percentage (%)
Strongly Agree 09 16
Agree 02 4
Neutral 00 0
Disagree 02 4
Strongly Disagree 42 76
Total 55 100
Page | 89
Interpretation : The above chart depicts that, 76% respondents are strongly disagree about
hard work is not necessarily recognized or rewarded,4% respondents are disagree; and 4%
respondents are agree and 16% respondents are strongly agree about hard work is not
necessarily recognized or rewarded.
Majority respondents are not in favour of hard work is not necessarily recognized or
rewarded.
TABLE: 39
Particulars Frequency Percentage (%)
Strongly Agree 44 80
Agree 00 00
Neutral 00 00
Disagree 04 7
Strongly Disagree 07 13
Total 55 100
Page | 90
Interpretation : From the above table, 80% respondents are strongly agree about they fully
understand their organizations business goals & objectives, 7% respondents are disagree and
13% respondents are strongly disagree about they fully understand their organizations
business goals & objectives.
Majority respondents are fully understand their organizations business goals & objectives.
TABLE: 40
Particulars Frequency Percentage (%)
Strongly Agree 09 16
Agree 02 4
Neutral 00 00
Disagree 00 00
Strongly Disagree 44 80
Total 55 100
Page | 91
Interpretation : Above chart depicts that, 80% respondents are strongly disagree about their
work objectives are unrealistic & difficult to achieve, 16% respondents are strongly agree and;
4% respondents are agree about their work objectives are unrealistic & difficult to achieve.
Most of the respondents are know their work objectives are not unrealistic & difficult to
achieve.
TABLE: 41
Particulars Frequency Percentage (%)
Strongly Agree 44 80
Agree 00 00
Neutral 00 00
Disagree 02 4
Strongly Disagree 09 16
Total 55 100
Page | 92
Interpretation : From the above table, 44 respondents are strongly agree for they have
autonomy over the way they perform their work, 04 respondents are disagree; and 09
respondents are strongly disagree for they have autonomy over the way they perform their
work.
Majority respondents have autonomy over the way they perform their work.
TABLE: 42
Particulars Frequency Percentage (%)
Strongly Agree 42 76
Agree 02 4
Neutral 00 00
Disagree 11 20
Strongly Disagree 00 00
Total 55 100
Page | 93
Interpretation : From the above table, 76% respondents are strongly agree about their
organization communicates well, 4% respondents are agree ;and 20% respondents are
disagree about that.
TABLE: 42
Particulars Frequency Percentage (%)
Strongly Agree 44 80
Agree 00 00
Neutral 00 00
Disagree 04 7
Strongly Disagree 07 13
Total 55 100
Page | 94
Interpretation : The above chart depicts that, 80% respondents are strongly agree about
performance management helps them to do their job better, 7% respondents are disagree and;
13% respondents are strongly disagree about performance management helps them to do job
better.
TABLE: 43
Particulars Frequency Percentage (%)
Strongly Agree 44 80
Agree 00 00
Neutral 00 00
Disagree 02 4
Strongly Disagree 09 16
Total 55 100
Page | 95
Interpretation : From the above table,44 respondents are strongly agree about performance
management helps them to develop their skill & potential,09 respondents are strongly disagree
and 02 respondents are disagree about performance management helps them to develop their
skill & potential.
TABLE: 44
Particulars Frequency Percentage (%)
Strongly Agree 40 73
Agree 04 7
Neutral 00 00
Disagree 04 7
Strongly Disagree 07 13
Total 55 100
Page | 96
Interpretation : The above chart shows that, 40 respondents are strongly agree with they
get useful feedback from their performance management review,4 respondents are agree and
another 04 respondents are disagree ; and remaining 07 respondents are strongly disagree with
they get useful feedback from their performance management review.
(12) I am not satisfied with the way my manager/ team leader conducts my
performance review :
TABLE: 45
Particulars Frequency Percentage (%)
Strongly Agree 07 13
Agree 04 7
Neutral 00 0
Disagree 04 7
Strongly Disagree 40 73
Total 55 100
Interpretation : The above chats depicts that, 73% respondents are strongly disagree,7%
respondents are disagree,7% respondents are agree; and 13% respondents are strongly agree
about they are not satisfied with the way their manager/ team leader conduct performance
review.
Majority of them satisfied with the way their manager/ team leader conduct performance
review.
Page | 97
(13) Performance management helps me to improving performance :
TABLE: 46
Particulars Frequency Percentage (%)
Strongly Agree 44 80
Agree 00 00
Neutral 00 00
Disagree 02 4
Strongly Disagree 09 16
Total 55 100
Interpretation : From the above table,80% respondents are strongly agree,4% respondents
are disagree and; 16% respondents are strongly disagree about performance management
helps them to improving performance.
TABLE: 47
Particulars Frequency Percentage (%)
Strongly Agree 00 00
Page | 98
Agree 00 00
Neutral 00 00
Disagree 02 4
Strongly Disagree 53 96
Total 55 100
Interpretation : The above chart depicts that, 96% respondents are strongly disagree and 4
% respondents are disagree about the assessment of their performance are consistent, fair &
unbiased.
Majority respondents are not satisfied with assessments of their performance are consistent,
fair & unbiased.
(15) The system of performance management used here works well & does not need to
change :
TABLE: 48
Particulars Frequency Percentage (%)
Strongly Agree 44 80
Agree 00 00
Neutral 00 00
Disagree 04 7
Strongly Disagree 07 13
Total 55 100
Page | 99
Interpretation : From the above table, 80% respondents are strongly agree, 7% respondents
are disagree and; 13% respondents are strongly disagree about system of performance
management used in organization works well & does not need to change.
Majority respondents are believed in system of performance management works well & not
need to change.
TABLE: 49
Particulars Frequency Percentage (%)
Strongly Agree 44 80
Agree 00 00
Neutral 00 00
Disagree 04 7
Strongly Disagree 07 13
Total 55 100
Page | 100
Interpretation : The above chart depicts that,80% respondents are strongly agree, 7%
respondents are disagree and; 13% respondents are strongly disagree about the information
disclosed in performance reviews is used sensitively & productively by the organization.
(17) Performance management does not help to develop careers, only improve work
performance :
TABLE: 50
Particulars Frequency Percentage (%)
Strongly Agree 02 3
Agree 00 00
Neutral 02 4
Disagree 07 13
Strongly Disagree 44 80
Total 55 100
Page | 101
Interpretation : From the above table,80% respondents are strongly disagree, 13%
respondents are disagree,4% respondents are neutral and; 3% respondents are strongly agree
about performance management does not help to develop careers, only improve work
performance.
Majority respondents are believed that performance management help not only to develop
careers but also improve work performance.
TABLE: 51
Particulars Frequency Percentage (%)
Strongly Agree 00 00
Agree 02 3
Neutral 13 24
Disagree 00 00
Strongly Disagree 40 73
Total 55 100
Page | 102
Interpretation : The above chart describes that, 73% respondents are strongly disagree,24%
respondents are neutral and; 3% respondents are agree with performance management is only
use to personnel people.
Majority respondents are in favour of performance management not only use to personnel
people.
TABLE: 52
Particulars Frequency Percentage (%)
Strongly Agree 44 80
Agree 00 00
Neutral 00 00
Disagree 11 20
Strongly Disagree 00 00
Total 55 100
Page | 103
Interpretation : The above chart shows that, 80% of respondents are strongly agree and
20% respondents are disagree about performance review techniques more impact on their
performance incentives & morale.
Majority of respondents are think that performance review techniques more impact on their
performance incentives & morale.
(20) Performance management has no value for individuals, only for organization :
TABLE: 53
Particulars Frequency Percentage (%)
Strongly Agree 11 20
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 44 80
Total 55 100
Page | 104
Interpretation : The above chart shows that, 80% respondents are strongly disagree and
20% respondents are strongly agree with performance management has no value for
individuals, only for organization.
Majority of respondents are believed performance management has value not only to the
organization but also to the individuals also.
TABLE: 54
Particulars Frequency Percentage (%)
Strongly Agree 11 20
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 44 80
Total 55 100
Page | 105
Interpretation : From the above table, 80% respondents are strongly disagree and 20%
respondents are strongly agree about they find difficult to discuss work problem with their line
manager.
Majority respondents are find no difficult to discuss work problems with their line manager.
(22) Performance management is a two-way process, with both manager & employee
expressing their views :
TABLE: 55
Particulars Frequency Percentage (%)
Strongly Agree 42 76
Agree 02 4
Neutral 00 00
Disagree 02 4
Strongly Disagree 09 16
Total 55 100
Page | 106
Interpretation : The above table shows that, 76% respondents are strongly agree,4%
respondents are agree, another 4% respondents are disagree ;and 16% respondents are
strongly disagree for performance management is two-way process, with both manager &
employee expressing their views.
Majority respondents are believed that performance management is two-way process, with
both manager & employee expressing their views.
Page | 107
CHAPTER-6
FINDINGS,
SUGGESTIONS &
CONCLUSIONS
Page | 108
CHAPTER-6
FINDINGS, SUGGESTIONS & CONCLUSIONS
FINDINGS :
All respondents have aware about the current performance management system.
All HR professionals and majority of respondents told they are satisfied with
current performance management system works well and no need to change.
Majority of respondents are told the checklist techniques used in organization for
assessing performance.
Some HR professionals are told that performance review techniques more impact
on employees performance, employees incentive & morale, but some of them
are not agree with that.
Page | 109
All HR professional are told that they are some of the extent satisfied that they
give consistent & fair ratings to members of their team.
RECOMMENDATIONS :
Page | 110
Performance review conducting in a such a way that all employees are rated
consistent, fair & unbiased.
It would also enable them to achieve the goals for which they
were set up as well as remain influential instruments of public service delivery and
development.
CONCLUSION:
It is concluded from the survey that all respondents are aware about the current
performance management system and does not need to change. Current
performance management system works well and that improve the performance
of the employees.
Page | 111
This study has shown that performance management is a comprehensive
approach to planning and sustaining improvements in the performance of
employees so as to meet the standards.
Page | 112
BIBLIOGRAPHY:
Page | 113
Risher, H (2003) Refocusing performance management for high performance,
Compensation and Benefits Review, October, pp 2030.
T.V. Rao (2005); Performance Management & Appraisal System : 4th Edition,
SAGE Publication.
Geeta Kumari, Neha Kaleramna and K.M. Pandey (2010), Study on performance
management system of private companies : a case study of endurance Pvt. Ltd.
Dr. Satyawan Baroda, Chhavi Sharma and Jyoti Kandpal Bhatt (2012), 360 degree
feedback Appraisals- An Innovative approach of performance management system,
International Journal of Management & Information Technology, Vol.1 , No.2,
pp.53-66.
Page | 114
Milica Jaksic & Milos Jaksic (2012), Performance Management and Employee
Satisfaction, Montenegrin Journal of Economics, Vol.9, No. 1, pp.85-92.
WEBLIOGRAPHY:
http://www.samsons.com
http://www.sachajournals.com
http://www.doaj.org
http://www.businessdictionary.com
http://www.sibson.com
http://www.Performanceappraisal.com
http://www.performance-management-made-easy.com/
http://www.vsrdjournals.com
http://www.emeraldinsight.com/journals.htm?articleid=1585214
http://www.humanresources.about.com
http://www.citehr.com/
QUESTIONNAIRE
QUESTIONNAIRE ON AN ANALYTICAL STUDY OF
PERFORMANCE MANAGEMENT SYSTEM AS A TOOL FOR
EFFECTIVE PERFORMANCE : A STUDY OF SELECTED
EMPLOYEES IN VIJAYJYOT SEATS PRIVATE LIMITED
Page | 115
Performance Management System as a tool for effective performance in
Vijayjyot Seats Private Limited.
I will grateful to you if you spare your valuable time & efforts with your valuable
views on the subject of the research study.
(1) Gender :
1. Male
2.Female
(2) Age :
1. 20-25
2. 26-35
3. 36-50
4. 50+
2. 2-10 years
Page | 116
(1) Does your organization operate formal performance management system ?
1.Yes
2. No
(2) If yes, which of the following groups of employees do these processes apply to ?
1. Senior Managers
3. Technical/ Clerical
4. Professional
5. Manual/ Blue-collar
(3) What are the techniques that are used in your organization for assessing performance ?
1. Observation
2. Assessment & Development Centers
3. Checklist
4.Other (Please specify) _____________________
(4) Please indicate which of the following methods of performance appraisal from a part of
your system?
(1) Written Essay Method
(2) Graphical Rating Scales
(3) Ranking Method
(4) 360 degree appraisal
(5) Self appraisal
(6) Critical Incident Assessment
(5) Using the following scale, please rate your satisfaction with the following parts of your
current performance management system.
Page | 117
8. Rewards
9. Discipline
10. Effectiveness of current
Performance Management System
(6) What are the major elements of your business strategy at present? (please give rank in
order of your importance, with 1 being most importance).
Sr. No. 1 2 3 4 5 6
1. Reduce Costs
2. Increase Productivity
3. Expand/ Develop markets
4. Increase Efficiency
5. Reduce Production Time
6. Improve Quality
(7) Are you believe the current performance management system improving performance ?
1. Yes
2. No
Page | 118
9 The time I spend on performance reviews could be
used more productively elsewhere
10 The current performance management system works
well & does not need to change
11 I am satisfied that I give consistent & fair ratings to
members of my team
12 I am satisfied that performance review techniques
use in assessing employees performance more
effective
13 Performance review techniques more impact on
employees performance , employees incentive &
morale
14 The documentation associated with performance
management is unclear & unhelpful
Please indicate the extent to which you agree or disagree with the following statements.
Page | 119
17 Performance management does not help to develop
careers, only improve work performance
18 Performance management is only use to personnel people
19 Performance review techniques more impact on my
performance, incentives & morale
20 Performance management has no value for individuals,
only for organization
21 I find it difficult to discuss work problems with my line
manager
22 Performance management is a two-way process, with both
manager & employee expressing their views
Page | 120