Amity Business School: Submitted by Tanya Sharma M.B.A (HR) 2008-2010 (A0102308288)
Amity Business School: Submitted by Tanya Sharma M.B.A (HR) 2008-2010 (A0102308288)
UNDER THE GUIDANCE OF INDUSTRY GUIDE Mr. ASHOK K .GUPTA Dy .Manager-HR Dabur India limited Sahibabad (UP) FACULTY GUIDE: Shikha Mishra Faculty guide(abs)
ACKNOWLEDGEMENT
Words often fail to express inner feelings of gratitude and indebtedness to ones benefactors, but then it is the only readily available medium through which the undersigned can express her sincere thanks to all those who are associated with her work in one way of the other. Completing a task is never one man effort. It is often the result of invaluable contribution of number of individuals in a direct or indirect manner that helps in sharing a making of success. I feel it my profound privilege to express my most sincere gratitude and indebtedness to my project guide Mr. Pawan Ponia, HR Officer who was instrumental in providing my direction, constant encouragement and co-operation in my attempt to take this project to its logical conclusion. I also want to thank Mr. Ashok.K.Gupta Dy.Manager-HR for having granted my this wonderful opportunity to pursue my summer project at DABUR . And to all the respondents who featured in my survey but remain as nameless entities, I present a deep bow of gratitude. And also to all those who have been of help directly or indirectly but have not featured here. I would like to thank all my teachers at Amity business school and especially my mentor Ms.Shikha Mishra without whose support this summer training would not have been possible. In brevity, it was pleasure working in the organization, which provided me the most congenial environment for learning.
CERTIFICATE OF APPROVAL
This is to certify that Tanya Sharma of MBA HR 2010, Enroll. No. A0102308288 has worked under my guidance for summer internship project. She has submitted this project titled A study on the Effectiveness of Performance Management System at Dabur India Limited . The information provided is authentic and has not been submitted elsewhere. Ms Shikha Mishra Faculty Amity Business School Amity University Uttar Pradesh
DECLARATION
I Tanya Sharma, student of Masters of Business Administration from Amity Business School, Amity University Uttar Pradesh hereby declare that I have done summer internship Project on TO study the effectiveness of Performance Management System at Dabur India Limited. as part of the course requirement. I further declare that the information presented in this project is true and original to the best of my knowledge.
UNDERTAKING
I solemnly declare that this report on Effectiveness of Performance Management System of Dabur India Limited has been compiled by me and has not been copied from any student /researcher/employee in any university/institution/organization or any other pace of distance learning under my knowledge. I have duly acknowledged the sources of primary data wherever they have been used in the project.
TANYA SHARMA
ABSTRACT
My report is an attempt to Study the Performance Management System practiced in DABUR INDIA LIMITED. The performance depends on the BBO(business building objectives) This system is very effective as it sets a clear direction for contribution of each individual in the organization. They are more tangible business targets and are measurable. Objective setting is an important part of performance management. The characteristics of a good objective (BBO) can be summed up by the acronym SMART. S- Specific M- Measurable A- Action oriented R-realistic T- Time bound The broad objective is to study the effectiveness of Performance Management System practiced in organization and the effect of introduction of (BBO) by virtue of level of understanding amongst the employees about the concept and how far have they accepted the concept of business building objective (BBO). I also intend to find out what all apprehension do they have regarding the (BBO). I started my project with the detailed study of the concept regarding BBO before understanding how DABUR performed the exercise. For this I read books, research papers, articles, etc. Secondly I interacted with my industry guide in order to understand what the I made a questionnaire on the topic to know what the employees of DABUR objectives due to which top management were thought of implementing BBO. actually feels about the BBO and its effectiveness, which can help in building organizational growth as well as employee satisfaction. Finally I compiled my research with the help of SPSS. I also gave my recommendations as to what all steps can possibly be taken to
improve the exercise to make it more efficient and acceptable by the employees.
CONTENTS
Declaration.. Certificate Acknowledgement... Abstract
S.NO.
TITLE
Page No.
1.
INTRODUCTION To the topic. To the company profile. Practice of Performance Management System at Dabur. Literature review RESEARCH METHODOLOGY DATA ANALYSIS CONCLUSION & RECOMMENDATION BIBLIOGRAPHY ANNEXURE 7-12 13-25 26-27 28-32 33-36 37-59 60-61
2. 3. 4. 5. 6. 7.
INTRODUCTION
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Performance Management Performance management system is the process of performance planning , performance monitoring and coaching , measuring individual performance linked to organizational goals, giving him or her feedback, rewarding the individual based on his or her achievements against set performance goals and required competencies , and working out a plan for his or her development. Performance management is a forward looking process for setting goals and regularly checking progress toward achieving those goals. A key aspect of performance management is performance measurement. Whatever the process being driven with performance management, clear and concise measures are required in order to properly define the desired goals. Most performance management systems fail to achieve the desired goals of the process owner or project sponsor because goal measurement is ambiguous, not specific enough, poorly communicated or because results cannot be measured effectively. Performance management is often confused with performance appraisal the latter only forming the final part of the performance management cycle. Performance appraisal is a backwards looking process and lagging 10
indicator of financial performance, only measuring what happened in the past. Performance management is a forward looking process and a leading indicator of financial performance because it drives a system or organisation towards a desired future goal.
Performance Performance is what is expected to be delivered by an individual or set of individuals within a time frame. Individual performance = ability X motivation x organisational support +orchance factors.
Basic Step
The following steps occur in a wide context of many activities geared towards performance1. 2. 3. 4. 5. 6. Review organizational goals to associate preferred organizational results in terms of units of performance, that is, quantity, quality, cost or timeliness. Specify desired results for the domain -- as guidance, focus on results needed by other domains (e.g., products or services need by internal or external customers) Ensure the domain's desired results directly contribute to the organization's results Weight, or prioritize, the domain's desired results Identify first-level measures to evaluate if and how well the domain's desired results were achieved Identify more specific measures for each first-level measure if necessary 11
Identify standards for evaluating how well the desired results were achieved (e.g., "below expectations", "meets expectations" and "exceeds expectations") Document a performance plan -- including desired results, measures and standards Conduct ongoing observations and measurements to track performance Exchange ongoing feedback about performance Conduct a performance appraisal (sometimes called performance review) If performance meets the desired performance standard, then reward for performance (the nature of the reward depends on the domain)
The performance management has two clear objectivesThe evaluation objective: Performance evaluation and assessment of the readiness of an individual to take on higher responsibilities. To provide feedback to individuals on their performance levels and on current competency levels. To generate data required for decisions on salary, bonus and promotions.
action to ensure performance. Evaluate individual performance and development requirements. Provide feedback to individuals on performance and development requirements. To take decisions on salaries, promotions, job transfers, training and development of individuals.
Why PM is important
Performance management matters to everyone who wants to see local communities better served by councils and their partners. Managers can use it to ensure that services are improving and are more efficient. Councillors can use it to ensure that policy decisions are being carried out and citizens are being well served. Increasingly, citizens and partners can use aspects of performance management, such as public reporting, to hold the council to account. Performance management is about good management, ensuring that your community, organisation and team goals are achieved. It helps to: ensure local authorities provide value for money motivate and manage staff identify and rectify poor performance at an early stage Increase user and public satisfaction.
PERFORMANCE APPRAISALIn simple terms, Performance Appraisal may be understood as the assessment of an individuals performance in a systematic way, the performance being measured against such factors as job knowledge, quality and quantity of output, initiative, leadership abilities, supervision, dependability, co-operation, judgment, versatility, etc. A formal definition of Performance Appraisal is : It is the systematic evaluation of the individuals with respect to his or her performance on the job and his or her potential for development Thus under Performance Appraisal, we not only evaluate the performance of a worker but also his potential for development.
The main purposes of employee assessment are :Training, and Transfers have been effective or not. Performance is concerned and to assist them with constructive criticism and guidance for the purpose of their development for dialogue between the superior and the subordinate, and improves understanding of personal goals and concern When to Appraise the appraisals are conducted whenever the supervisor or personnel managers feel it necessary. However systematic appraisals are conducted on a regular basis, say for example every six months or annually. Whos performance should be rate? To the question as to whose performance should be rated? That is, who can be Rate? The answer is obviously Employees! And when we say employees, it may be individual, group, teams, or division.
measured with the standards and finding out deviations. Step 7 The seventh step compares, the actual performance of the employee and other employees doing the same job and discuss with him about the reasons for the positive or negative deviations from the pre-set standards as the case may be. Step 8 This step suggest necessary changes in standards, job analysis, internal and external environment. Step 9 The last step is the follow-up of performance appraisal report. This step includes guiding, counseling, coaching and directing the employee or making arrangements for the training and development pf the employee in order to ensure improved performance.
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COMPANY PROFILE
INTRODUCTION
The name Dabur was Originally attached with Ayurveda but over the period of time it succeeded in diversifying its business. Dabur is the oldest consumer brand in India and well recognized across the country over the period of 100 years established in 1884 by Dr.S.K.Buraman for making healthcare products. Dabur has varieties of product portfolio. It has four Strategic Business Unit (SBU) i.e. Consumer Care Division (CCD), Consumer Health Care Division (CHD), Food Business Division (FBD), International Business Division (IBD) Dabur India Ltd is one of the largest FMCG Company in India with interests in Health Care, Personal Care and Food Products. Over more than 100 years, it has been dedicated to provide nature-based solutions for a healthy and holistic lifestyle. Through its comprehensive range of products, it touches the lives of all consumers, in all age groups, across all social boundaries. And this legacy has helped the company to develop a bond of trust with their consumers that guarantees them the best in all products carrying the Dabur name.
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FOUNDER
Founding Thoughts "What is that life worth which cannot bring comfort to others
COMPANY HISTORY
YEAR 1884 EVENT Birth of Dabur DETAILS The birth of Dabur in a small kolkatta pharmacy, where Dr. S.K. Burman launches his mission of making health care products. 1896 Setting up a manufacturing plant With growing popularity of Dabur products, Dr. Burman expands his operations by setting up a manufacturing plant for mass production of Early 1900s 1919 Establishment of Ayurvedic Medicines formulations. Dabur enters the specialized area of nature-based Ayurvedic Medicines, for which standardized products are not available in the market. The need to develop scientific processes & quality medicines leads to establishment of Research Laboratories. Research Laboratories checks for mass production of traditional ayurvedic
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1920
Expands further
Dabur expands further with new manufacturing units at Narendrapur & Daburgram. The distribution of Dabur products spreads to other states like Bihar & the North-East.
Dabur India (Dr. S.K. Burman) Pvt. Ltd. Shift to Delhi Sahibabad Foundation
Dabur becomes a full-fledged company- Dabur India (Dr. S.K. Burman) Pvt. Ltd. A new manufacturing plant is set up in temporary premises in Faridabad, on the outskirts of Delhi. Commercial production starts in the new Sahibabad production facilities for ayurvedic medicines. Launch of full-fledged research operations in pioneering areas of health care with establishment of the Dabur Research Foundation. Dabur India Ltd. Comes into being after reverse merger with Vidogum Limited. Beginning a new chapter of strategic partnerships with international businesses, Dabur enters into a joint venture with Agrolimen of Spain. This new venture is to manufacture & market confectionary items in India. Dabur enters the specialized health care area of cancer treatment with its oncology formulation plant at Baddi in Himachal Pradesh.
factory/Dabur Research factory of Dabur, one of the largest & best equipped
1986 1992
1993
Cancer treatment
1994
Public issues
Dabur India Ltd. raises its first Public Issue. Due to market confidence in the company, shares issued at a high premium are oversubscribed 21 times.
1995
Joint Ventures
Extending its global partnerships, Dabur enters into joint ventures with Osem of Israel for food & Bongrain of France for cheese & other dairy products.
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1996
3 separate divisions
For better operation & management, 3 separate divisions created according to their product mixHealth Care Products Division, Family Products Division & Ayurvedic Specialties Limited.
1997
Dabur enters full-scale in the nascent processed foods market with the creation of the Food division. Project STARS (Strive To Achieve Record Success) is initiated to give a jump-start to the co. & accelerate its growth performance.
1998
With changing demands of business & to inculcate a spirit of corporate governance, the Burman family inducts professionals to manage the company. For the first time in the history of Dabur, a non-family professional CEO sits at the helm of the company.
2000 2003
Dabur establishes its market leadership status with a turnover of Rs. 1000 Crores. Dabur India approved the demerger of its pharmaceuticals business from the FMCG business into a separate co. as a part of plans to provide greater focus to both the businesses. As part of its inorganic growth strategy, Dabur India acquires Balsaras Hygiene & Home Products Businesses, a leading provider of Oral Care & Household Care products in the Indian markets, in a Rs 143 Cr all-cash deal. Dabur India announced issue of 1:1 bonus share to the shareholders of the co., i.e. one share for every one share held.
2004
2005
2006
Dabur India crosses the $2-billion mark in market capitalization. The company also adopted US GAAP in line with its commitment to follow global best practices & adopt highest standards of transparency & governance. 19
2007
Dabur India unveiled the new packaging & design for Real at the completion of 10 years of the brand. The new refined modern look depicts the natural goodness of the juice from freshly plucked fruits.
2007
Dabur India announced its foray into the organized retail business through a wholly-owned subsidiary, H&B Stores Ltd. Dabur will invest Rs 140 Cr by 2010 to establish its presence in the retail market in India with a chain of stores on the Health & Beauty format. Dabur India decides to merge its wholly-owned subsidiary Dabur Foods Ltd with itself to extract synergies & unlock operational efficiencies. The integration will also help Dabur sharpen focus on the high growth business of foods & beverages, & enter newer product categories in this space.
2008
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COMPANY DETAILS
1. Group Companies :
With a basket including personal care, health care and food products, Dabur India Limited has set up subsidiary Group Companies across the world that can manage its businesses more efficiently. Given the vast range of products, sourcing, production and marketing have been divested to five leading group companies that conduct their operations independently: 1 2 3 4 5 Dabur UK Dabur Nepal Dabur Egypt Dabur Oncology Newu
2.
Dabur Worldwide :
Dabur's mission of popularizing a natural lifestyle transcends national boundaries. Today there is global awareness of alternative medicine, nature-based and holistic lifestyles and an interest in herbal products. Dabur has been in the forefront of popularizing this alternative way of life, marketing its products in more than 50 countries all over the world.
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3.
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DABUR PRODUCTS
Categories: 1 2 3 4 5 6 Health Care Home Care Personal Care Ayurvedic Specialties Foods International Range
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Dabur's Health Care and Range has a wide selection of herbal products, to provide complete care for varying individual needs. It derives its products from the timetested heritage of Ayurveda, backed by the most modern scientific test and trials, which ensure unfailing quality and safety in anything you pick. Dabur Health Care Products Range: 1. Health Supplements Dabur Chyawanprash Dabur Chyawanprakash Dabur Chyawanshakti Dabur Chyawan Junior Glucose-D 2. Digestives Quit worrying about what all that yummy food will do to your stomach - keep your digestion toned up with Dabur's range of Digestives. These Ayurveda-based herbal solutions aid digestion as well as cure distressing stomach disorders, safely and instantly. 1 2 3 4 5 3. Hajmola Hajmola Candy Pudin Hara( Liquid & Pearls) Pudin Hara G Dabur Hingoli
Natural Cures Dabur's Natural Cures - natural and effective remedies for your everyday
health care. Made with Ayurveda-based medicinal and therapeutic herbs to give you safe alternatives for a wholesome life. 1 2 3 4 5 Bhringraj Ayurvedic Tail Super Thanda Tail Badam Tail Active Blood Purifier Shilajit Gold 24
6 7 8 9
10 Sarbyna Strong 4. Baby Care Give your baby the safe and tender care of nature - with Dabur's baby range of products made with ayurvedic herbs and plant extracts. It makes your babys body fit and healthy from within, and gives him the right foundation to become No. 1 in life. 1 2 Dabur Lal Tail Dabur Janma Ghunti
PERSONAL CARE PRODUCTS 1. Hair Care Oil Whether you wear them long and dark, or prefer them light and bouncy, your hair needs constant care. That's easy, if you give your hair the natural treatment. With Dabur's range of herbal Hair Care products, to make your hair grow healthy, lustrous 25
and full of life. 1 2 3 4 2. Amla Hair Oil Amla Lite Hair Oil Vatika Hair Oil Anmol Sarson Amla Hair Care Shampoo Whether you wear them long and dark, or prefer them light and bouncy, your hair needs constant care. That's easy, if you give your hair the natural treatment. With Dabur's range of herbal Hair Care products, to make your hair grow healthy, lustrous and full of life. 1 2 3 3. 1 2 3 4 5 6 4. Vatika Henna Conditioning Shampoo Vatika Anti-Dandruff Shampoo Vatika Root Strengththening Shampoo Skin Care Gulabari Rose Water Gulabari Face Freshener Gulabari Hydrating Rose Cream Gulabari Hydrating Rose Lotion Vatika Fairness Face Pack Vatika Saffron Glow Soap with Sandal Oral care Oral Care is critical, not just for a radiant smile, but also because unhealthy gums and teeth can lead to other serious health problems. A routine of oral care with regular brushing, flossing and rinsing is a must. So make it your routine, with help from Daburs range of Oral Care products, designed to suit every individuals special needs. 1 2 3 4 Dabur Red Toothpaste Babool Toothpaste Meswak Toothpaste Promise Toothpaste 26
5 6
DABUR FOODS
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Vision
Dedicated to the Health and Well Being of every Household.
Mission
To be the leader in the Natural Fruits and Beverages Industry. Striving to deliver this by: 1 2 3 Consistently delighting the consumer through quality products. Being the company of choice for business partners. Delivering higher returns to stakeholders.
Guiding Principles
1 2 3 4 5 6 Ownership Passion for Winning People Development Consumer Focus Team Work Innovation
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a) Outstanding (OS) b) Strong (ST) c).Good (GD) d) Satisfactory (SF) e) Below Expectation (BE) a)
5 4 3 2 1
Outstanding if the performance evaluated by the Management turns out to be outstanding .if the employee performs in such a way as to collect 3 consecutive outstanding performances into his / her credit, he / she get promoted.
b)
Strong if performance evaluated by the management turns out to be strong .If the employee performs in such a way as to collect 3 consecutive strong performance into his/her credit, he /she gets promoted.
c)
Good if the performance evaluated by the Management turns out to be good then the management send the employee to the training program to improve his /her skill to perform.
d)
Satisfactory if the performance evaluated by the management turns out to be satisfactory then management try to find reasons and give solutions according to the problem.
e)
Below Expectation if the performance evaluated by the management turns out to be below average. And if the employee collects 3 below average to his/her credit, he /she dismissed.
LITERATURE REVIEW
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Articles summary
According to T V Rao the concept of performance appraisal has changed over the years. Performance has been usually equated with annual appraisals which measure the entire years effort of an employee in terms of numbers. Drawing from his own experiences of designing Integrated HRD systems for various companies, the author stresses upon the importance of understanding the nature, potential, and complexities of performance management systems (PMS). Evaluating an employees performance on the basis of numbers assigned by another appraiser without an awareness of the context in which the ratings are assigned could inflict serious injustice to the performer. It should be Change from Appraisal to Management and focus on Contributions and ImprovementPMS should be recognized as comprehensive multi dimensional system. The time allocate should be adequate and legislated and if required it can be planned into the company calendar. The whole process should be decentralized .PMS should be a part of the budgeting process and integrate with other systems of the company and for this technology can be used as support PMS must be implemented rigorously and it should be given it the seriousness it deserves .The outlook has to shift from an annual exercise to the on-going activities. Appraisal focuses on ratings while improvements focus on work, stakeholders, service levels, productivity, motivation effort and all such performance-related variables According to Changrui Ren the importance of performance management in supply chains has long been recognized from a variety of functional disciplines. But much of the work has focused on designing performance measures with less concern for the other stages of the entire performance management process. In this paper, an integrated, efficient and effective performance management system, "active performance management system", is presented. The system covers the entire performance management process including measures design, analysis, and dynamic update. The analysis of performance measures using causal loop diagrams, qualitative inference and analytic network process is mainly discussed in this paper. A real world case study is carried out throughout the paper to explain how the framework works. A 31
software tool, supply chain performance analyzer, is also introduced. Some related topics and further research directions are discussed as concluding remarks. According to Derek Stockly Human resource management is directly related to the overall performance of the organization. Identifying and planning for training can be linked to many corporate processes. Many important initiatives are undertaken by organizations. These can include technology upgrades, quality processes, industrial issues and the like. Total quality management, benchmarking, re-engineering and the move to self-managing teams, are all concerned with performance. In human resources management, training, performance management (including performance appraisal and salary administration), recruitment and selection, and employee relations' activities are all concerned with performance. Each makes an important contribution. The first step to a sound organization is to keep all programs and initiatives aligned to a framework of increased performance. This ensures that each activity complements the others occurring at the same time. The relationship between internal and external factors is also important. If organizations lose sight of the basic goal of performance improvement, if they treat these or other programs as the ends rather than the means, then they are doomed to difficult times, if not outright failure.. The first step to a sound organization is to keep all programs and initiatives aligned to a framework of increased performance. This ensures that each activity complements the others occurring at the same time. The relationship between internal and external factors is also important. Within the performance framework, the second step is to achieve the best outcome from each activity. Improvements and achievements can be made in all areas, even the traditional ones such as training. A co-coordinated approach understood by staff leads to confidence. Confidence leads to trust. Trust provides the foundation for a positive cultural environment, which in turn provides the driving force necessary to achieve performance improvements. The article that I have found on ebscohost.com says that High demand and competition for employee and managerial talent has led to increasing interest in understanding the potential benefits of using high-performance work systems (HPWS) as a means to maximize firms competitive advantage. HPWS refer to a group of separate but interconnected HR management practices, including 32
comprehensive recruitment and selection procedures, incentive compensation and performance management systems, and extensive employee involvement and training, which are designed to enhance employee and firm performance outcomes through improving Workforce competence, attitudes, and motivation. the key purpose of this research is to provide an initial examination of the cross-level linkages between establishment level shows and employee-level outcomes, as mediated by establishment level climate the primary contribution involves the amalgamation of research on HPWS, organizational climate, and employee attitudes, which provides a more explicit integration of micro and macro views of the management of human resources in work organizations
In this article Graham Yemm has given ideas to become better at getting the performance manager want from their teams. In order to manage people for performance you need to clearly establish what good performance is for each person and role defining good performance not only means setting up of goals it include what the outputs and results are - and how they are being achieved. Managing for performance is an ongoing process and not an occasional intervention or snapshot. Performance Appraisal usually reviews past behavior and so provide an opportunity to reflect on past performance. But to be successful they should also be used as a basis for making development and improvement plans and reaching agreement about what should be done in the future. The authors talk about the common mistake made by organization when they say that they have performance appraisal in their organization but this is not the case .then the author has given the way out, how to apply complete Performance management system Firstly, everyone should have clearly defined standards of performance and/or key performance indicators (kepis). These are same for all those doing similar roles and provide a baseline for performance. There are two types of these - the quantitative and the qualitative. Make sure you think of this as a key priority - so give it time! Make sure that the kepis are clearly stated, written down and everyone has a copy.. As your team members work through their action plans and you have your regular reviews. During these reviews ask for what needs to be improved, what has gone well and what is going to happen next. When the goal is achieved, carry on and set the next goal, get the action plans - and continue as before. 33
Then the author has reminded that people just want to know what is expected of them, be given the support to do it and then told how they are doing. will give you the performance. According to By: Ola Kazeem Falodun Performance appraisal as a positive part of the performance management process has come a very long way in the history of human resource management. Performance appraisal is one of the central pillars of the performance management which is directly related to the organizational performance and have a direct and significant impact on it. Performance appraisal has been, and is still the strength of performance management,. The main focus of this work is centered on Assessing critically how the formal appraisal system can contribute to the performance management process Identifying and explaining a range of methods of appraisal, considering their objectives and limitations. Explaining how an appraisal system can be successfully introduced and maintained within an organization. Analyzing an appraisal system in an organization In carrying out this work, the researcher discovered that there is a strong relationship between performance appraisal and performance management, it can affect the organizational performance both positively and negatively, and should be dealt with care and expert knowledge and experience.
problem. Research is the process of systematically obtaining accurate answers to significant and pertinent questions by the use of the scientific methods gathering and interpreting information
SIGNIFICANCE
The main significance of the project is to identify the level of motivation, job satisfaction and performance among the employees after & before the conduction of Performance Appraisal Exercise.
OBJECTIVE
To study the Employee Satisfaction. To study the Organizational Growth. To study the Performance Appraisal Program. To study the effectiveness of three different factors and to find which factor among the three is less effective.
METHODOLOGY
Research Methodology is a way to systematically solve the research problem involving a study of various steps that are adopted by the researcher in studying his/her research problem. Qualitative and quantitative technology to get the required 35
Data Collection
There are two methods for collecting the data. They are: 1) 2) Primary Data Secondary Data
1.
Primary data :
There are several methods of collecting Primary data. These are given below.
A- Observation method: The observation method is the most commonly used method especially in studies relating to behavioral sciences. Under the observation method the information is sought by way of investigators own direct observation without asking from the respondent. B:- Interview method: The interview method of collecting data involves presentation of oral verbal and stimuli reply in terms of oral verbal responses. This method can be used through personal interviews and if possible through telephonic interviews. C:- Questionnaires;- This method of data collection is quite popular particularly in case of enquiries. It is being adopted by private individuals, research purposes, private and public organizations and even by governments. In this method questionnaires are sent to the persons of concern with the request to answer the questions and return the questionnaires. The respondents have to answer the questions on their own. In this project I have used questionnaires as one of the primary sources of collecting data.
2.
Secondary Data
When an investigator uses the data that has been already collected by others is
called Secondary Data. The secondary adapt could be collected from Journals, Reports and various publications, web sites. The advantages of the secondary data can 36
Sample Designing
Type of Sampling: Random sampling technique was adopted to choose the respondents for the sample. This technique was used keeping in view the scope of the study, which try to cover different departments. Sample Size: The sample size taken into consideration includes simple of around 80 related people in various different departments
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LIMITATIONS
Every Study suffers from certain limitations and so does this project. So, the applicability of the findings and recommendations is subjected to the following mentioned constraints/limitations Respondents were reluctant to give their views on data or open to other Shortage of time duration for the research work Hiding of some true facts by the respondents due to the fear of the management Though care has been taken, judgment errors may have occurred Employees being very busy did not get enough time to give responses wholeheartedly
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Bar Chart
Question 2
Frequency Table The Performance provides opportunity for each appraises to know what the Management really expect out of him. Cumulative Frequency Percent Valid Percent Percent Valid Disagree 1 1.2 1.2 1.2 Agree 38 47.5 47.5 48.8 Strongly agree 41 51.2 51.2 100.0 Total 80 100.0 100.0
Bar Chart
Question 3
Frequency Table You are satisfied with the existing Performance Appraisal method followed in the company. Frequency Valid Agree 48 Strongly agree 32 Total 80 Percent 60.0 40.0 100.0 Valid Percent 60.0 40.0 100.0 Cumulative Percent 60.0 100.0
Bar Chart
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Question 4
Frequency Table Do you agree that self appraisal prior to Performance Appraisal facilitates you to get high rating? Cumulative Frequency Percent Valid Percent Percent Valid Disagree 1 1.2 1.2 1.2 Neither agree nor 7 8.8 8.8 10.0 disagree Agree 36 45.0 45.0 55.0 Strongly agree 36 45.0 45.0 100.0 Total 80 100.0 100.0
Bar Chart
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Question 5
Frequency Table In your opinion are you capable of achieving the goals set for you. Cumulative Frequency Percent Valid Percent Percent Valid Disagree 3 3.8 3.8 3.8 Neither agree nor 12 15.0 15.0 18.8 disagree Agree 44 55.0 55.0 73.8 Strongly agree 21 26.2 26.2 100.0 Total 80 100.0 100.0
Bar Chart
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Question 6
Frequency Table Your Performance Appraisal has scope for assessment of job related competencies as well as personality dimension. Valid Cumulative Frequency Percent Percent Percent Valid Strongly Disagree 9 11.2 11.2 11.2 Disagree 5 6.2 6.2 17.5 Neither agree nor disagree 7 8.8 8.8 26.2 Agree 43 53.8 53.8 80.0 Strongly agree 16 20.0 20.0 100.0 Total 80 100.0 100.0
Bar Chart
statement. But the major facts which shows the cracks in the confidence of the employees is the 17% of the figure who do not agree to the statement, which is a number is not very big but for a firm like this its important to understand the fact that negativism spreads more quickly than positivism.
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Question 7
Frequency Table The drive for growth in the organization is the most common motive for conducting Performance Appraisal in the organization. Valid Cumulative Frequency Percent Percent Percent Valid Strongly Disagree 1 1.2 1.2 1.2 Neither agree nor disagree 10 12.5 12.5 13.8 Agree 31 38.8 38.8 52.5 Strongly agree 38 47.5 47.5 100.0 Total 80 100.0 100.0
Bar Chart
employees strongly agree than just agree. This means that the employees have a lot of confidence in the statement but on the other hand we also see that 10% of the employees also are confused suggesting that the Company is not very effective in explain to the employees the importance of Performance appraisal, but the ones which understood the concept are very clear in the minds about the programme
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Question 8
Frequency Table Performance Management System paves opportunities. way for career growth and Cumulative Percent 6.2 10.0 23.8 72.5 100.0
Valid Strongly Disagree Disagree Neither agree nor disagree Agree Strongly agree Total
Valid Frequency Percent Percent 5 6.2 6.2 3 3.8 3.8 11 13.8 13.8 39 48.8 48.8 22 27.5 27.5 80 100.0 100.0
Bar Chart
also has a unique fact other graphs didnt which was the increased number of employees disagreeing to the statement which is a noticeable 10%, which comprises of % strongly disagreeing to the statement. Over to that we also see another nearly 14% not sure either way , which if looked at together with the disagree figures, seems to be a very disturbing figure for the Co. This represents to us that the employees think that they have unwillingly accepted the Performance Appraisal Programme instead of taking it is a career growth move.
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Question 9
Frequency Table
Were all the employees educated about the Business Building Objectives and were they aware of Appraisal ratings. Cumulative Frequency Valid Strongly Disagree Disagree Neither agree nor disagree Agree Strongly agree Total 7 4 12 41 16 80 Percent 8.8 5.0 15.0 51.2 20.0 100.0 Valid Percent 8.8 5.0 15.0 51.2 20.0 100.0 Percent 8.8 13.8 28.8 80.0 100.0
Bar Chart
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number of strongly disagree (nearly 10%) as well as another 5 % disagree. Clearly the management is to be blamed for this as the total number of the not agree to the statement have risen to a total of nearly 30% which is not acceptable under any circumstances.
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Question 10
Frequency Table There is fair connection between pay and performance. Valid Frequency Percent Percent Valid Strongly Disagree 3 3.8 3.8 Disagree 2 2.5 2.5 Neither agree nor disagree 3 3.8 3.8 Agree 30 37.5 37.5 Strongly agree 42 52.5 52.5 Total 80 100.0 100.0
Bar Chart
Question 11
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Frequency Table Are you satisfied with Performance Appraisal system in your department . Valid Cumulative Frequency Percent Percent Percent Valid Disagree 1 1.2 1.2 1.2 Neither agree nor disagree 11 13.8 13.8 15.0 Agree 38 47.5 47.5 62.5 Strongly agree 30 37.5 37.5 100.0 Total 80 100.0 100.0
Bar Chart
Question 12
Frequency Table 53
In your opinion , maintaining a proper appraisal system in the organization will increase the morale of the employees. Valid Frequency Valid Strongly Disagree 1 Neither agree nor disagree 5 Agree 42 Strongly agree 32 Total 80 Percent 1.2 6.2 52.5 40.0 100.0 Percent 1.2 6.2 52.5 40.0 100.0 Cumulative Percent 1.2 7.5 60.0 100.0
Bar Chart
Analysis and Interpretation The above bar chart shows that from the 80 respondents 42 and 32 were agree and strongly agree to the fact that maintaining a proper appraisal system in the whole organization will surely increase the moral of the employees but 1 of them strongly disagree to this fact and 5 of them were not clear about their views. This represents to us that 74 out of 80 employees are going for the statement which clearly shows that they understand that proper appraisal system is needed to increase their morale but 5 employees yet cannot make up their mind; this means the organization is able to communicate with the employees but not very effectively. 54
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Question 13
Frequencies In case your appraisal is not up to the mark , your superior corrects you. Valid Cumulative Frequency Percent Percent Percent Valid Strongly Disagree 4 5.0 5.0 5.0 Disagree 3 3.8 3.8 8.8 Neither agree nor disagree 9 11.2 11.2 20.0 Agree 49 61.2 61.2 81.2 Strongly agree 15 18.8 18.8 100.0 Total 80 100.0 100.0
Bar Chart
Question 14
Frequency Table The training that the organization provides you at the time of joining is effective . Valid Cumulative Frequency Percent Percent Percent Valid Strongly Disagree 7 8.8 8.8 8.8 Disagree 4 5.0 5.0 13.8 Neither agree nor disagree 7 8.8 8.8 22.5 Agree 27 33.8 33.8 56.2 Strongly agree 35 43.8 43.8 100.0 Total 80 100.0 100.0
Bar Chart
Question 15
Frequency Table How do you recognize the best performance in your organization. Valid Cumulative Frequency Percent Percent Percent Valid Monetary rewards 33 41.2 41.2 41.2 Recognition among peers 1 1.2 1.2 42.5 Career advancement 26 32.5 32.5 75.0 All the above 20 25.0 25.0 100.0 Total 80 100.0 100.0
Bar Chart
Question 16
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Frequency Table Are you satisfied with the company as a place to work. Valid Frequency Percent Percent Valid Agree 33 41.2 41.2 Strongly agree 47 58.8 58.8 Total 80 100.0 100.0
Bar Chart
CHI-SQUARE TEST
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k (Oi Ei)
i=1 Ei
Frequencies
TES Observed N 7 6 29 221 217 480 Expected N 96.0 96.0 96.0 96.0 96.0 Residual -89.0 -90.0 -67.0 125.0 121.0
1 2 3 4 5 Total
TOG Observed N 10 8 41 Expected N 80.0 80.0 80.0 Residual -70.0 -72.0 -39.0 60
1 2 3
4 5 Total
80.0 80.0
106.0 75.0
PAP Observed N 53 14 54 191 88 400 Expected N 80.0 80.0 80.0 80.0 80.0 Residual -27.0 -66.0 -26.0 111.0 8.0
1 2 3 4 5 Total
Test Statistics TES TOG PAP a b Chi-Square 5.289E2 3.558E2 2.268E2b df 4 4 4 Asymp. Sig. .000 .000 .000 a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 96.0. b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 80.0.
Analysis
In the above statistical test some assumptions were taken to get the correct results. The assumptions are as follows: Null Hypothesis on the bases of all 3 factors the employees are satisfied with the Performance Management System.
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Alternative Hypothesis on the bases of all 3 factors the employees are not satisfied with the Performance Management System. Since the calculated value of Chi square in all 3 factors are lower than the table value (table value = 9.49 at 4 degree of freedom) the null hypothesis is accepted. But in this degree is different so the most effective factor for Performance Management is TES then TOG then PAP. For the effectiveness of Performance Management System the organization should concentrate more on PAP.
CONCLUSION
The conclusion can be drawn after going through graphs, and the result of the test that my null hypothesis has been accepted which is, all employees are satisfied by existing Performance Management System .As the study has been divided in three parameters .Employee Satisfaction (TES), Organisational Growth (TOG), and Performance Appraisal Program (PAP) and to assess which parameter is the most effective. The reason of using TOG was that the organisational growth is very much connected to the effectiveness of the management, as company cant grow until they have a proper management system which is also interlinked with TES as the employees working for the company. Employees should also be happy and satisfied with their work, and if they are not it clearly represents that the company is being poorly managed. The reason of choosing PAP as my third and last parameter was because if a company doesnt have a proper appraisal programme i.e. the people dont receive the appreciation for their work in monetary and non monetary terms, the satisfaction at work will again decrease causing problem s to the company, on a longer run and also making the company to less likely place for perspective employees. And after applying the chi square test it came out that Employee Satisfaction is the most effective followed by Organisational Growth and the management needs to work upon Performance Appraisal Program.
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Even though the Performance Management System is Effective but the data analysis also reflects that the people dont receive the appreciation for their work in monetary and non monetary terms, the satisfaction at work will again decrease causing problem s to the company, on a longer run and also making the co to less likely place for perspective employees.
RECOMMENDATION
1. The company should come out with a better Performance Appraisal Program as the study reflected that there is less acceptance in employee regarding existing Performance Appraisal Program. 2. The evaluating system must be biannually instead of annually .As it will be an added advantage for both organisation as well as employee in terms of communication being frequently done. 3. Make a system of giving periodic feedback thus it will help in achieving higher target for its employees. 4. Company should make an effort to align the outcomes of Performance Appraisal System to identify the Training and Development needs. BIBLIOGRAPHY: Articles: 1. LESSONS FROM EXPERIENCE: A NEW LOOK AT PERFORMANCE MANAGEMENT SYSTEM By: T V Rao (VIKALPA VOLUME 33 NO 3 JULY SEPTEMBER 2008) 63
2.ACTIVE PERFORMANCE MANAGEMENT BY Changrui Ren Dept. of Autom., Tsinghua Univ., Beijing, China; 3.HUMAN RESOURCE ISSUES NEEDS CONSTANT ATTENTION By :Derek Stockly 5.THROUGH THE LOOKING GLASS OF A SOCIAL SYSTEM: CROSSLEVEL EFFECTS OF HIGH-PERFORMANCE WORK SYSTEM ON EMPLOYEES ATTITUDES 6. MANAGING PEOPLE FOR PERFORMANCE By Graham Yemm 7.PERFORMANCE APPRAISAL AS A POSITIVE PART OF THE
PERFORMANCE MANAGEMENT PROCESS (A Case of Mofas Shipping-Line) By: Ola Kazeem Falodun KINGSGATE Ireland , March 2008
ANNEXURE
QUESTONNAIRE
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Dear Respondent, Iam a student of AMITY BUSINESS SCHOOL, NOIDA.This questionnaire is a part of study on performance management system. I assure you that the information provided by you will be kept confidential and it will be used for the academic purposes.
1. Performance Management System is essential for the success of the employees of the company 1. 2. 3. 4. 5. . 2 The Performance provides opportunity for each appraises to know what the Management really expect out of him. 1. 2. 3. 4. 5. Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree
3. You are satisfied with the existing Performance Appraisal method followed in the company. 1. 2. 3. 4. 5. . Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree
4. Do you agree that self appraisal prior to Performance Appraisal facilitates you to get high rating . 1. 2. 3. 4. 5. Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree 65
. 5. In your opinion are you capable of achieving the goals set for you. 1. 2. 3. 4. 5. . 6. Your Performance Appraisal has scope for assessment of job related competencies as well as personality dimension. 1. 2. 3. 4. 5. . 7. According to you is drive for growth in the organization the most common motive to conducting Performance Appraisal in the organization. 1. 2. 3. 4. 5. . . 8 Performance Management System paves way for career growth and opportunities. 1. 2. 3. 4. 5. . 9. Were all the employees educated about the Balance Score Card and were they aware of Appraisal ratings. 1. Strongly Disagree 2. Disagree 3. Neither Agree nor Disagree 66 Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree
4. Agree 5. Strongly Agree . . 10 There is fair connection between pay and performance. . 1. Strongly Disagree 2. Disagree 3. Neither Agree nor Disagree 4. Agree 5. Strongly Agree
11. Are you satisfied with performance appraisal system in your department. 1. 2. 3. 4. 5. Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree
12. In your opinion , maintaining a proper appraisal system in the organization will increase the morale of the employees. 1. 2. 3. 4. 5. Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree
13. In case your appraisal is not up to the mark , your superior corrects you. 1. Strongly Disagree 2. Disagree 3. Neither Agree nor Disagree 4. Agree 5. Strongly Agree
14. The training that the organization provides you at the time of joining is effective .
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1. 2. 3. 4. 5.
Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree
15. How do you recognize the best performance in your organization. 1. 2. 3. 4. 5. Monetary reward Recognition among peers Career advancement All the above None of the above
16. Are you satisfied with the company as a place to work. 1. 2. 3. 4. 5. Strongly Disagree Disagree Neither agree nor disagree Agree Strongly Agree
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