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Amity Business School: Submitted by Tanya Sharma M.B.A (HR) 2008-2010 (A0102308288)

The document is an internship report submitted by Tanya Sharma to Amity Business School. It discusses her internship studying the effectiveness of the performance management system at Dabur India Limited. The report includes an acknowledgments section thanking those who supported the internship. It also includes a certificate of approval from Dabur and a declaration signed by Tanya stating the report is her original work. The abstract provides an overview of the report which examines Dabur's use of Business Building Objectives (BBO) to set clear directions for employee contributions and assess performance. Tanya conducted research including understanding the BBO concept, interacting with guides at Dabur, surveying employees, and analyzing responses to understand perceptions of the system and

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0% found this document useful (0 votes)
814 views

Amity Business School: Submitted by Tanya Sharma M.B.A (HR) 2008-2010 (A0102308288)

The document is an internship report submitted by Tanya Sharma to Amity Business School. It discusses her internship studying the effectiveness of the performance management system at Dabur India Limited. The report includes an acknowledgments section thanking those who supported the internship. It also includes a certificate of approval from Dabur and a declaration signed by Tanya stating the report is her original work. The abstract provides an overview of the report which examines Dabur's use of Business Building Objectives (BBO) to set clear directions for employee contributions and assess performance. Tanya conducted research including understanding the BBO concept, interacting with guides at Dabur, surveying employees, and analyzing responses to understand perceptions of the system and

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Chaiten Gupta
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AMITY BUSINESS SCHOOL

SUMMER INTERNSHIP REPORT ON

TO STUDY THE EFFECTIVENESS OF PERFORMANCE MANAGEMENT SYSTEM AT DABUR INDIA LIMITED


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 from company

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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HUMAN RESOURCE MANAGEMENT


Human Resource Management (HRM) is a process of bringing people and organization together so that the goals of each are met. It is that part of the management process which is concerned with managing Human Resources in an organization. Simply put, Human Resource Management is a management function that helps managers recruit, select, train, and develops members for an organization. Human Resource Management is a series of integrated decisions that from the employment relationship: their quality contributes to the ability of organization and the employees to achieve their objective Human Resources Management is concerned with the people dimension in management. Since every organization is made up of people, acquiring their service, developing their skills/ motivating them to higher levels of performance and ensuring that they continue to maintain their commitment to the organization are essential to achieving organization objectives. This is true, regardless of the type of organization government business, education, health, recreation, or social action

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.

Ongoing Activities of Performance Management


Achieving the overall goal requires several ongoing activities, including identification and prioritization of desired results, establishing means to measure progress toward those results, setting standards for assessing how well results were achieved, tracking and measuring progress toward results, exchanging ongoing feedback among those participants working to achieve results, periodically reviewing progress, reinforcing activities that achieve results and intervening to improve progress where needed. Note that results themselves are also measures.

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

7. 8. 9. 10. 11. 12.

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.

The Development Objective:


To counsel and coach subordinates so that they improve their performance and develop competencies. To motivate subordinates through recognition and support. To strengthen supervisor subordinate relations. To diagnose individual and organization competencies, so that actions can taken on problem areas. To define the training requirements based on individual competency.

The performance management system process helps organisations do the following:


Define the performance requirements at individual level. Align the organisation efforts to meet the organization goals by setting targets at individual levels. Reviewing the performance during the course of the year and take required 12

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.

Objectives of Performance Appraisal


13

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.

Who are Raters ?.


Raters are immediate Supervisors, specialists from HR Department, Subordinates, Peers, Committees, Clients, Self-appraisals, or a combination of several.

PROCESS OF PERFORMANCE APPRAISAL


Performance Appraisal is a nine step process:Step 1 In this step the performance standards are established based on the Job Description and Job Specification. The standards should be clear, objective and incorporate all the factors. Step 2 Under this step, the Performance Standards are informed to all the employees including Appraisals. Step 3 In this step, the instruction given to appraisal are followed, measurement of employee performance by the appraisers through observation, interview, records and reports are done. Step 4 This step finds out the influence of various internal and external factors on actual performance. Step 5 This step is to comparing the actual performance with that of other employees and previous performance of the employee and others. Step 6 The sixth step of Performance Appraisal Process, the actual performance is 14

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.

15

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.

16

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

17

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.

1936 1972 1979

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

Public Limited Company Joint venture with Agrolimen of Spain

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.

18

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

Food Division/Project STARS

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

Professionals to manage the co.

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

Turnover of Rs1,000 Crores Dabur emerges Pharma Business

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

Dabur acquires Balsara

2005

Dabur announces bonus after 12 years

2006

Dabur crosses $2 Bin Market Cap, adopts US GAAP

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

Celebrating 10 years of Real

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

Foray into organized retail

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

Dabur foods merged with Dabur India

20

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.

21

3.

Dabur Manufacturing Facilities in India

22

DABUR INDIA LTD.

DABUR PRODUCTS
Categories: 1 2 3 4 5 6 Health Care Home Care Personal Care Ayurvedic Specialties Foods International Range

HEALTH CARE PRODUCTS

23

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

Nature Care Sat Isabgol Shilajit Shankha Pushpi

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

HOME CARE PRODUCTS

Home Care Product Range: 1 2 3 4 5 Odomos Odonil Sanifresh Odopic Dazz

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 Lal Dant Manjan Dabur Binaca Toothbrush

DABUR FOODS

Where necessity is the mother of invention

About Dabur Foods


Dabur Foods, a 100% subsidiary of US $ 3 billion Dabur Group realized the potential of the processed & packaged food industry (4th largest in the world), began operations as a separate division in the year 1999. It established brands in a market where the barrier to accept packaged food is high, and the fledging processed food industry was in a nascent stage in India. Today, Dabur Foods has kept its promise not only to the Indian consumers but to the world by providing them the very best products in packaged food class. Dabur Foods has now turned into a leading food marketing company that along with product also provides a range of services to its consumers: 1. Providing choice: A range of leading brands to choose from Real Fruit Juice, Coolers, Hommade, Lemoneez and Capsico. 2. Providing services: The dedicated food services division that partners various institutions and develops customized products to serve the needs of these institutions. 3. Redefining exports: A unique exporter who develops market across the world benefiting them with the authentic taste of traditional Indian juices and paste.

27

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

28

PERFORMANCE APPRAISAL SYSTEM FOLLOWED IN DABUR INDIA LIMITED


In DABUR INDIA LTD they have system of Performance Appraisal of their employees. The main objective of this Performance Appraisal System is to evaluate the performance, promote their employees and to arrange for various training programs. If they require foe enhancing their skill in their respective areas and in contribution enhancement. Employees are evaluated by how well they accomplish a specific set of objectives that have been determined to be critical in the successful completion of their job. This approach is frequently referred to management by objective but company has given it the name as BBO which stands for Business Building Objectives. Business Building objectives help to set s clear direction for contribution of individual in the organiqation.It can be consisting of 4 steps 1) Goal setting. 2) Action planning. 3) Self control. 4) And periodic reviews. Dabur use very constructive Performance Appraisal process while evaluating its employees. Its evaluation is based on quantitative wise and objective wise. Company set goals to its employee by properly reporting with its employees and then evaluating them unto what extent it has been achieved and if there is failure in reaching the target what are the cause and reason behind it. Every evaluator has his or her own value system which acts as a standard against which appraisal are made.

Outcomes of Performance Appraisal


A five scale is used for rating the contribution along each business building objectives: RATING SCORE 29

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.

Duration of Appraisal System:


Time constraints enable the employee to show or project his/her capabilities in terms of performance as per the duration allowed. Performance Appraisal System carried out annually (April to march)

LITERATURE REVIEW

30

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.

OBJECTIVE AND RESEARCH METHODOLOGY


Research is an organized inquiry designed and carried out to provide information to solve the problem. The fact, search is an art of scientific investigation of a certain 34

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.

MANAGERIAL USEFULNESS OF THE STUDY


To point out and suggest the organization to adopt remedial actions to remove those loopholes, aiming to improve the productivity and RESEARCH METHODOLOGY

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.

SCOPE OF THE STUDY


To find out the loopholes (if any) in the Performance Management System at Dabur India Ltd. To have an overlook over the changes and improvements made in the Company

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 and interpreted.

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

be- it is economical, both in terms of money and time spent.

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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ANALYSIS AND INTERPRETATION


Question 1
Frequency Table Performance Management System is essential for the success of the employees of the company. Valid Cumulative Frequency Percent Percent Percent Valid Neither agree nor disagree 4 5.0 5.0 5.0 Agree 39 48.8 48.8 53.8 Strongly agree 37 46.2 46.2 100.0 Total 80 100.0 100.0

Bar Chart

Analysis and Interpretation


In DABUR INDIA LIMITED 49% employees agree that Performance Management System is essential for the success of the employees of the company and 46% employees strongly agree to the above fact where as 5% employees were not able to decide whether they agree or not .There were options of disagree and strongly disagree provided but non of the employee disagreed to the fact that Performance 39

Management System is an essential for the success of employee of the company.

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

Analysis and Interpretation


From the above analysis I came to know 51% of the employees strongly agree and 47% of employees agree that Performance provides opportunity for each appraises to know what the management really expects out of them. Whereas only 1% disagreed to the above statement which is a very small number to make any significance. This concludes that they understand and agree to the fact that the performance does provide them the opportunity to know what the management wants and expects from them. 40

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

Analysis and Interpretation


It is cleared from the analysis that the whole population were satisfied with the Performance Appraisal Method followed in the company as 60% employees agree to the fact and 40% strongly agree to this. This can be a biased answer as well because the employees will hesitate to voice their opinions against the management.

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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

Analysis and Interpretation


From the above data I came to know almost 90% employees are either agree or strongly agree that Self Appraisal prior to Performance Appraisal facilitates to get high rating whereas 9% of employees were not clear about their views and only 1% disagree to it. This shows that a big majority does agree to the statement but nearly 10% also is not sure which shows us signs of confusion in the mind of the employees.

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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

Analysis and Interpretation


The bar chat shows that 26% of employees strongly agree and 55% agree to the fact that they are capable of achieving goals set foe them by the management where are 4% of them were disagree from the above fact and 15% of them were not clear about their views. This very clearly shows us that the majority understand and think they are capable of achieving their goals but a good number of employees are confused again with a few who think the management expect a bit too much from them.

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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

Analysis and Interpretation


The above analysis exhibits that 54% employees agree and 20% strongly agree to the fact that their Performance Appraisal has scope foe assessment of job related competencies as well as personality dimension but 11% and 6% employees disagree and 8% of them were confused. This is a very interesting fact that we have here, which shows us that more than half of the employees are agree to the statement but are not very confident about it and about one forth of employee totally going with the 44

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

Analysis and Interpretation


In these diagram we see that 47.7% employees strongly agree , 38.8 % simply agree, 10% are not sure and finally 1.2% dont agree to the statement which says that thee drive for growth in the organization is the most common motive for conducting Performance Appraisal in the organization. What we see from these charts is something very peculiar and different from other results, which is the fact that more 46

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

Analysis and Interpretation


The above bar chart shows that 49% of employees agree and 27% strongly agree to the fact that Performance Management System helps the employees in creating career growth and opportunity for themselves but 4% were disagree and 6% strongly disagree to it and 14% employees neither agree nor disagree to this fact. This graph 48

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

Analysis and Interpretation


52% of employees did agree and 20% strongly agree to the fact that they were having properly educated about the Performance Appraisal System followed in the company but 5% were disagree and 9% were strongly disagree to the above fact but 15% employees were neither agree nor disagree . This also shows us the lack of managements communication with the employees which has resulted in a very high

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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

Cumulative Percent 3.8 6.2 10.0 47.5 100.0

Bar Chart

Analysis and Interpretation


The frequency table interprets that 52%of the employees strongly agree and 37% agree that there is a fair connection between pay and performance but 4% employees strongly disagree and 2% disagree to the above fact. This also shows us a very positive aspect of the companys implication of policies and procedures as only 6% of the people are not saying yes to the statement that they gets remunerated fairly to the amount of work they do. Also more than half of employees are strongly agreeing to the statement which reflects that they are very happy with the pay scale.

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

Analysis and Interpretation


From the 80 respondents 30 employees were strongly agree and 38 were agree to the fact that they are very much satisfied with the Performance Appraisal System being carried in their department but among 80, 11are neither in the favor nor against it and only 1 of them were disagreed. This represents that majority of the employees are satisfied with the PAP but there is still room for doubt as 10% employees are again in disarray whether to go for or against the statement, with a negligent 1% unsatisfied.

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

Analysis and Interpretation


In the diagram we see that 49 employees are agreeing to the statement while another 15 strongly agree but on the darker side we see that 3 employees not are agree with another 4 strongly disagreeing, and the rest 9 who cant take a decision that if in a situation their appraisal is not up to the mark their supervisors correct them. Thus if we add the numbers we see that a total of 20 % employees do not agree to the statement, which is not a very bog number but cant also be neglected. Where as a good number of 80 % still go in favor of the statement. 56

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

Analysis and Interpretation


Here we see that a high number of 43.8% strongly agree and another 33.8% agreeing to the statement that training provided at the time of joining is effective for them. But on the other darker side we also see that 4 employees out of 80 disagree while another 7 strongly discarding the statement which makes it a total of 13.8% not agreeing to the statement, with another 7 still people confused. This is another point of concern for the management as it seems that they have not been able to completely satisfy all the employees with the type and method of training provided to them at the point when they started their job. 57

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

Analysis and Interpretation


Here we see the three different types of recognition that can be provided by the management to its employees. As we see monetary rewards top the list with 41.2% employees choosing it, next stands career advancement which is at 32.5% , where as recognition amongst peers look to be very discarded and only been opted by 1 in 80 employees and finally another 20 believe all of those are important. Thus for the employees money is the most important thing and while career advancement coming later and all round recognition following closely behind it.

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

Cumulative Percent 41.2 100.0

Bar Chart

Analysis and Interpretation


This is a another very good picture to see from any point of view be it for prospective employees, current employees or the managements, as we see that 100% employees agree that Dabur is a satisfactory place to work where nearly 60 % employees strongly agreeing to the same. This also shows us that the employees are very satisfied with the overall effort of the company to keep the employees happy and make it a good place of work for them. The best thing about it is that not even 1 employee even opted for neither nor which shows a very high level of satisfaction in the eyes of the employees.

CHI-SQUARE TEST
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k (Oi Ei)
i=1 Ei

2 = Chi square. Oi = Observed Value. Ei = Expected Value. K = Number of categories. Df = ( k-1 )

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

186 155 400

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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