Archit Report.docx

Project Report (Semester July – December 2018) “(Stock Management)” Submitted by (Archit Mangal) Student ID: 16BBAN057

Under the Guidance of

Faculty Internship Guide: Mrs. Sunita Sharma

Industry Guide: Mr. Ashok Mor

Designation: Assistant Professor

Designation: MD

Department of Management

JECRC UNIVERSITY, JAIPUR

July 1 Start Month

July 31, End Month

2018 Year

Declaration I hereby declare that the project work entitled “Performance Management” is an authentic record of my own work carried out at “S.S. Associates” as requirements of six months project semester for the award of degree of BBA, JECRC University, under the guidance of “Mr. Akshay Soni” and “Ms. Khushboo Khandelwal”, during July 1 to _July 31, 2018.

Signature of student Name of Student: Vedant Garg Student ID: 16BBAN089 Date: 20 November 2018

Certified that the above statement made by the student is correct to the best of our knowledge

Faculty Internship Guide : Ms. Khushboo Khandelwal

Industry Guide: Mr. Akshay Soni

Designation: Assistant Professor

Designation: HR Head

Preface

I would also like to thank Mr. Ronak Muchhal (Director) and Mr. Akshay Soni (HR head) my supervisor of S.S. Associates, and my colleague who helped me by providing informative instructions. I was closely attached with them during my internship tenure. Without them this project would have been very difficult.

While my internship involved a range of different tasks and smaller exploration, general areas can be identified as sticking out as the central subjects around which most of my work at the youth segment, Human resources Department ,”S.S. Associates” In the following, I have presented all these activities and discuss my role and contribution to each. As will it become clear in the course of reading and have an idea of my internship. My responsibilities are closely interrelated and overlapping and are presented here one by one merely for purpose of clarity and coherence of my internship. In closing I have tried to add an extra dimension in the paper that how the knowledge of academic courses can be utilized over hands on task.

Performance Management is basically a key process in any organisation and should assist the management and staff to focus on the key issues and business objectives to ensure sustainability. Performance Management is therefore much more than merely telling a person what to do and “policing” them until it is done. Rather, it is an integral part of the manager and the employee’s job.

The bottom-line reality is that we all need to know what is expected in a specific role – if that is lacking, uncertainty and frustration, resulting in

demotivation and ineffectiveness, is created. This in turn impacts negatively on company performance and long-term sustainability of the organisation.

Acknowledgements It gives me great pleasure to present the report entitled “Performance management in Human resources” in S.S. Associates .

First, with profound pleasure and proud privilege, I take this opportunity to express my deep sense of gratitude and indebtedness to the S.S. Associates for giving me the opportunity to undertake this project.

I would like to express my sincere gratitude to Mr. Ronak Muchhal (Director) for giving me this opportunity to complete my internship in this esteemed organization and for their kind support.

With great sense of gratitude, I also thank him for his experienced judgement, endless interest and constant encouragement without which it would not been possible for me to accomplish the project successfully. There is a saying “Hundred miles journey begins with one step”. It was my first step in the industry so that with immense gratitude and artful appreciation, I am grateful to Mr. Akshay Soni (HR Head) for providing his esteemed guidance and valuable support throughout the internship.

Last but not the least, I find my self-lacking in words to express sense of gratitude to my beloved parents for their encouragement, moral and emotional support.

-Vedant Garg

Table of Contents S.No .

Component

Page Number

A

Preface

4

B

Acknowledgement

5

C

Excecutive Summary

7

D

Firms’s Introduction

8-9

Introduction of

1

Performance Management

1.1

Performance Management

9-10

1.2

Effective performance

10-12

1.3

Features

20-22

1.4

Scope

2

Review of Literature

3

Methodology

3.1

Scope

25

3.2

Obejective of research

26

3.3

Research design

26

3.4

Sampling method

27

4

Analysis

22

Organisational 4.1

Performance

37-39

4.2

Measures

39-43

E

Conclusion

45

G

Recommendation

46-47

H

Reference

48

I

Appendix

49-52

Executive Summary In today’s rapidly changing business environment, Performance is understood as achievement of the organization in relation with its set goals. It includes outcomes achieved, or accomplished through contribution of individuals or teams to the organization‘s strategic goals. The term performance encompasses economic as well as behavioural outcomes. Brumbach views performance more comprehensively by encompassing both behaviors and results. He is of the view that behaviors as ‗outcomes in their own right‘, which ‗can be judged apart from results‘. Performance is an impact. The roles of any manage can be seen in three parts: Being, Doing and Relating.

Being it is concerned with the competencies of the manage that are relevant to his/her performance. It is preparedness of the mind of the manager.

Doing focuses on the manage activities that are variably effective at different levels in the organization: that affect performance of other roles dependent on the manage output, and the organizational performance as a whole. As someone said, ‗Ideas are funny little things. They won‘t work unless you do. Relating emphasizes the nature of relationships with members of the role network-vertical, horizontal or otherwise.

Performance has a linkage with the individual potential and how best it is realized by the individual. With regard to manage, his/her potential becomes the input to the productive process and performance is the output. Manager’s Potential is determined when a set of tasks are assigned to him. It is also related to performance standards set.

1. Introduction S.S. Associates, Indore M.P. is a private firm which deals in warehousing and carry & forwarding S.S. Associates basic function is to provide different range of services to exporters to ensure smooth and timely shipment of goods. Clearing and Forwarding Agents play a pivotal role in the selection of mode and route of transport. They are the specialized people to guide in selection of the shipping line/airline. Every exporter is concerned with distribution logistics to ensure, that the goods reach the final buyer, in specified time and at minimal cost in the condition they are sent. The essence of distribution logistics is the decision in respect of mode of transport to he used. Clearing agent advises exporter about the availability alternative modes of transport and guides exporter in decision-making about the final choice of transport to achieve optimal cost in transporting the goods, well within the delivery schedule. In addition to these activities, he undertakes most of the functions connected with exports such as marking, labelling, packing of goods, advising on trade laws, arranging local transportation as well as apprising developments on transportation and claiming duty-drawback claims on behalf of the exporter. An efficient clearing and forwarding agent, goes a long way to the exporter in the journey of exports to make the matters easier, comfortable and may be cheaper too. Above all, the agents act trouble-shooters for the exports, in case of movement problems. It is well said a real clearing agent can perform all the functions except selling the goods.

MISSION:

To provide reliable, cost effective, value added and integrated warehousing and logistics solutions in a socially and environment friendly manner.

VISION:

To emerge as a leading market facilitator by providing integrated warehousing infrastructure and other logistics services, supporting India’s growing economy with emphasis on stakeholder satisfaction.

Introduction of Performance Management

1.1 Performance Management

Performance management can be defined as a strategic and integrated approach to delivering sustained success to organization by improving the performance of the people who work in them and by developing the capabilities of teams and individual contributors. To perform well, employees need to know what is expected of them. The starting point is an Up-to-date job description that describes the essential functions, tasks, and responsibilities of the job. It also outlines the general areas of knowledge and skills required of the employee to be successful in the job. Performance expectations go beyond the job description. When you think about high quality on-the-job performance, you are really thinking about a range of expected job outcomes, such as 

What goods and services should the job produce?



What impact should the work have on the organization?



How do you expect the employee to act with clients, colleagues, and supervisors?



What are the organizational values the employee must demonstrate?



What are the processes, methods, or means the employee is expected to use?

In discussing performance expectations an employee should understand why the job exists, where it fits in the organization, and how the job’s responsibilities link to organization and department objectives. The range of performance expectations can be broad but cangenerally be broken into two categories:

Results (The goods and services produced by an employee often measured by Objectives or standards)

Actions & Behaviors (The methods and means used to make a product and the behaviors and values demonstrated during the process. Actions and Behaviors can be measured through performance dimensions.) Performance expectations serve as a foundation for communicating about performance throughout the year. They also serve as the basis for assessing employee performance. When you and an employee set clear expectations about the results that must be achieved the methods or approaches needed to achieve them, you establish a path for success.

1.2 An effective performance management system will: 

Be job specific, covering a broad range of jobs in the organization



Align with your organization’s strategic direction and culture



Be practical and easy to understand and use



Provide an accurate picture of each employee’s performance



Include a collaborative process for setting goals and reviewing performance based on two-way communication between the employee and manager



Monitor and measure results (what) and behaviors (how)



Include both positive feedback for a job well done and constructive feedback when improvement is needed



Provide training and development opportunities for improving performance



Ensure that employee work plans support the strategic direction of the organization



Establish clear communication between managers and employees about what they are expected to accomplish



Provide constructive and continuous feedback on performance



Identify and recognize employee accomplishments



Identify areas of poor performance and establish plans for improving performance



Support staff in achieving their work and career goals by identifying training needs and development opportunities



Support

administrative

decision-making

about

promotions,

terminations, compensation and rewards 

Provide legal documentation to demonstrate due diligence for legal challenges related to dismissal or vicarious liability (an employer can be held liable for the acts or omissions by its employees during the course of employment)

The establishment of an effective performance management system requires time and resources and therefore, the support of the board, the executive director and other senior managers. When developing a new performance management process, an organization can strike up a committee made up of employees, managers and board members to increase buy-in, understanding and support for the process. Management support to act upon the outcomes of the performance management process is also necessary to ensure that good performance is recognized, inadequate performance results in the necessary support and/or training to improve performance and consistently poor performance results in a change of responsibilities or termination, as appropriate. Whether you are introducing a new performance management system or if you are modifying an existing process, it is critical that you communicate the purpose and the steps in the performance management process to employees before it is implemented. Also remember to review your new performance management system after the first year and make adjustments as necessary.

An effective performance management process sets the foundation aligning the individual's efforts with the university's goals. 

By linking individual employee work efforts with the organization’s mission and objectives, the employee and the organization understand how that job contributes to the organization.



By focusing attention on setting clear performance expectations (results + actions & behaviors), it helps the employee know what needs to be done to be successful on the job.



Through the use of objectives, standards, performance dimensions, and other measures it focuses effort. This helps the department get done what needs to be done and provides a solid rationale for eliminating work that is no longer useful.



Through regular check-in discussions, which include status updates, coaching, and feedback, it promotes flexibility, allowing you and the employee to identify problems early and change the course of a project or work assignment.



By emphasizing that an annual review should simply be a summary of the conversations held between you and the employee during the entire cycle, it shifts the focus away from performance as an “annual event” to performance as an on-going process.



An effective performance management process, while requiring time to plan and implement, can save you and the employee time and energy.

Performance is understood as achievement of the organization in relation with its set goals. It includes outcomes achieved, or accomplished through contribution of individuals or teams to the organization‘s strategic goals. The term performance encompasses economic as well as behavioural outcomes. Brumbach views performance more comprehensively by encompassing both behaviors and results. He is of the view that behaviors as outcomes in their own right‘, which can be judged apart from results‘. Performance is an impact. The roles of any manage can be seen in three parts: Being, Doing and Relating.

Being it is concerned with the competencies of the managee that are relevant to his/her performance. It is preparedness of the mind of the manager. Doing focuses on the manage activities that are variably effective at different levels in the organization: that affect performance of other roles dependent on the manage output, and the organizational performance as a whole. As someone said, Ideas are funny little things. They won‘t work unless you do.‘ Relating emphasizes the nature of relationships with members of the role networkvertical, horizontal or otherwise. Performance has a linkage with the individual potential and how best it is realized by the individual. With regard to manage, his/her potential becomes the input to the productive process and performance is the output. Managee’s Potential is determined when a set of tasks are assigned to him. It is also related to performance standards set. Taskrelated activities refer to managee‘s or supervisors involvement to achieve the allocated task or meet expectations in the given task environment. Performance is what the managee’s actually achieve. Performance in a role refers to the extent to which the managees achieve the purpose for which the role is created.

Choice, not chance. The actual performance of a managee is a function of several forces, internals as well as external to the organization-some of choice, some of chance. Most organizations do not take these forces into account-

either systematically or intuitively-while building expectations from a managee. A managee in her task environment could be subject to some of the influences and factors shown in Exhibit

In this framework, Organizational Relevant Environment, Role Purpose or Objective, Stakeholder Expectations, Role Technology and Input Role or Vendor Contribution are inputs to the managee‘s performance. These are substantially known, and are the factors and forces, which organizational expectations from the Managee Performance can reasonably be predicted. Role Design, Managee Potential, Managerial Leadership, Competing and Collaborating Colleagues, and Group Climate are throughput factors that can be optimized by a manager to enhance the Managee Performance. These determine whether the organization‘s performance expectations from a managee are realistic. As such, throughput factors are the core concerns of P Performance Management. It can be argued that Role Design and Managee

Potential are, in fact, input factors. However, a manager can modify-enhance or stretch-these factors by improving the fit between the managee‘s capacities, resources and role requirements, Performance Management would assume these as throughput factors. Role Output or Managee Performance is the end-resultthe effect for which we work. This is the variable that is predicted or planned.

It is invariably observable and measurable. The behavior of all organisms is goal-directed. As such, people performance is not only a sequence of causes and effects; it is a chain of sub-goals and actions, leading towards the ultimate goal. In fact, when a managee has a goal, he/she behaves as if she is following some signposts that create a healthy expectancy in him/her to reach the goal.

Managee Potential corresponds to the role to which a managee is assigned and the inputs he/she receives to fulfill the role purpose. It stretches or contracts depending upon the Group Climate, the behavior of the Competing and Collaborating Colleagues, and the Managerial Leadership. The actual realization of a managee‘s potential depends heavily on: 

Group and Organizational Purpose.



Group or Organization Capacities and Resources.



Human Climate in the Group or the Organization.



Quality of Up-stream or Vendor Inputs.



Feedback on Performance.

Role Design is fashioned by the organizing process. The sole purpose of organizing and designing a role is to provide a vehicle for implementing performance plans and expectations. It determines the requisite competencies, knowledge and skills. Role design predominantly determines task-related attributes needed by the managee.

Managerial Leadership predominantly determines the behavioral attributes needed by the managee. Leadership role of the manager and managerial style of the leader are also major determinants of the managee‘s development and

his/her job satisfaction. Managerial leadership and group climate have considerable influence on each other

Group Climate - The internal psychological environment of the groupinfluences the behavior, style and performance of the managee. It is also, in turn influenced by the behavior and attitude of the managee. Group climate is after all, the collective outcome of the behavior and attitudes of all the members of the group-the managee and all his/her competing and collaborating colleagues, the manager or the leader. People in any group or organization are less anxious about work if both goal clarity and goal agreement are present. Considerable conflict arises when purposes are unclear or when people disagree on what the priorities should be. Without convergence on goals and priorities, groups or organizations cannot develop a climate that facilitates performance.

Through the medium of performance, an organization is able to effectively achieve what it sets out to. Indeed, it is the people‘s capacities and resources that determine an organization‘s capability to perform and to satisfy or influence its stakeholders. These capacities and resources reflect a measure of the internal state of an organization that is expressed through its results. Performance management is a way of systematically managing people for innovation, goal focus, productivity and satisfaction. It is a goal congruent win-win strategy. Its main objective is to ensure success to all managees i.e., all task teams who believe in its process, its approach and implementation with sincerity and commitment. The managee‘s success is reflected in organisations bottom line in terms of achieving its planned goals. PfM is an endless spiral, which links several processes such as performance planning, managing performance throughout the year, taking stock of managee‘s performance and potential. Also it includes recognizing and rewarding success at the end of the year. Performance Management links these processes in such a way that an individual managees‘ performance is always oriented towards achieving organisational goals. Performance Management creates positive goal oriented task motivation and aims at reducing intra-organisational conflict. It is realized that organisations could not be successful if they do not have a

good performance management system. Each manager needs to devise his/her own system of managing performance. While some norms of performance management are explicit others are not so clear even to the managers. It is said that standards or expectations that define good performance may be generally understood but are rarely specific. Performance Management is a holistic, largely participatory and goal congruent process of managing and supervising managers at work. It is understood as a systematic, organized approach to managing and rewarding performance by generating and sustaining positive managee (employee) motivation. It is neither the well-known system of performance appraisal nor the well talked about system of MBO. Its salient dimensions include performance standards- representing organizational goals and objectives, managee recognition and reward. According to Armstrong, Performance Management is a means of getting better results from the

organisations, teams and individuals by understanding and managing performance within the agreed framework of planned goals and competency requirements. Performance Management – Integrated Approach

Armstrong and Baron, defines Performance Management as a strategic and integrated approach in delivering sustained success to organisations by improving performance of people by developing the capabilities of teams and individuals. These experts consider Performance Management as a strategic tool since it is concerned with achievement of long-term organisational goals and effective functioning of organisations in its external environment. Performance Management effects four types of integrations namely, vertical, functional, human resource and goals. 

Vertical Integration – aligning objectives at organisational, individual and team levels and integrating them for effective performance. The individuals and teams agree upon to a dialogue to work within the broad framework of organisational goals and values.



Functional Integration – it deals with focusing several functional energies, plans, policies and strategies onto tasks in different levels and parts of the organisation.



Human resource Integration – this ensures effective integration of different subsystems of HRM to achieve organizational goals with optimum performance. These subsystems include people management, task monitoring, job design, motivation, appraisal and reward systems, and training and empowerment.

Goal integration – it focuses on arriving at congruence between the needs, aspirations and goals of the managee with that of the goals and objectives of the organization.

2. Review of Literature

WHAT

ARE

THE

PRINCIPLES

OF

AN

EFFECTIVE

PERFORMANCE MANAGEMENT

Quality and effectiveness of performance management is a reality in organisations only when certain basic and fundamental tenets/ principles or practices of management are followed. These include: 1. Transparency – decisions relating to performance improvement and measurement such as planning, work allocation, guidance and counseling and monitoring, performance review etc., should be effectively communicated to the managees and other members in the organisation. 2. Employee development and empowerment – effective participation of employees/ managees (individuals and teams) in the decision – making process and treating them as partners in the enterprise. Recognizing employees/ managees of their merit, talent and capabilities, rewarding and giving more authority and responsibility etc., come under the umbrella this principle. 3. Values – a fair treatment and ensuring due satisfaction to the stakeholders of the organisation, empathy and trust and treating people as human beings rather than as mere employees form the basic foundation, apart from others. 4. Congenial work environment – the management need to create a conducive and congenial work culture and climate that would help people to

share their experience knowledge and information to fulfill the managees aspirations and achieve organisational goals. The managees/ employees should be well informed about the organisational mission, objectives, values and the framework for managing and developing individuals and teams for better performance. 5. External environment – effective and contextual management of external environment to overcome the obstacles and impediments in the way of effective managerial performance.

WHAT ARE THE FEATURES OR CHARACTERISTICS OF EFFECTIVE PERFORMANCE MANAGEMENT

Performance Management is a complex concept that encompasses different dimensions of the organization and the people. The mission, the objectives and the goals of the organization should be well designed. Performance planning, development and reward systems enable the managees to realize their true potential in order to contribute for organizational growth and development. The managees‘performance and quality is a function of several prerequisites that managers need to take care of. The following constitute the prerequisites /characteristics to ensure effective practice of PfM: 1. Clarity of organisational goals – the managers need to clearly and precisely lay down the organisational goals, objectives and ensure that these are well informed to the managees and other employees and make them to realize what the organisation expects from them. The organizational goals need to be translated into individual, team and departmental/ divisional goals. 2. Evaluation – the individual, team, department/ divisional performance needs to be evaluated on continuous basis. The organization should develop an

evaluation system and process, which is designed and developed on scientific lines. 3. Cooperation but not control – the managers should nurture the practice of getting work done through the system of obtaining managees‘consensus rather than through control or coercion.

4. Self-management teams – the management need to encourage the individual and teams for self-management of their performance. This procedure creates in the managees a sense of responsibility and develops a spirit to work with commitment and evaluate his/her strengths and weaknesses from time to time and plan for reducing the performance gaps.

5. Leadership development – the managers need to identify such of the managees who have leadership potential and apart from sincerity and honesty to ensure better and effective two-way communication between the managers and the managees.

6. System of feedback – the organization must have a foolproof feedback system of managees/ individuals/ teams/ departments ‘performance. It should be monitored continuously and generate feedback loops for better performance management.

There must be a system that would help to monitor and measure all performance against the set standards and the managees need to be informed of their shortcomings. The evaluation system should be made transparent so as to repose managee‘s faith in the system.

SCOPE OF PERFORMANCE MANAGEMENT

The Performance Management should conform to broad organizational framework. It should provide for managers and managee shared experiences, knowledge and vision. It encompasses all formal and informal measures and procedures adopted by organizations to increase corporate, team and individual

effectiveness.

Managees/

employees

should

be

enabled

continuously to develop knowledge, skill and capabilities. Performance Management has got to be understood in totality of the organization but not in various parts. Performance Management is designed and operated to ensure the interrelationship of each of these processes in the organization.

Performance Management assumes that the managers and team members share accountability for performance by jointly agreeing on common set of goals i.e., what they need to do and how they need to do it. They jointly implement the agreed plans and monitor outcomes. Performance Management is concerned with everything that people do at work. It deals with what people do (their work), how they do it (their behavior) and what they do it (their result).

Performance Management data generated by the appraising process is used primarily for deciding rewards. Including performance related pay. However, it is not the integral part of Performance Management process.

THE PROCESS OF PERFORMANCE MANAGEMENT

The process of performance management has the following steps: 

Performance planning



Day-to-day coaching



Day-to-day feedback



Check-in of quarterly performance

3. Methodology TITLE OF THE RESEARCH STUDY: To identity the effects of performance review techniques on employee's performance in “S.S. ASSOCIATES”.

DURATION OF THE RESEARCH STUDY :

This study was came out fix duration of 45 days.

BASIC TERMS OF PRESENT RESEARCH STUDY:

Performance: Performance means both behaviors and results. Behaviors emanate from the performer and transform performance from abstraction of action, Not just the instruments for results behavior also customers in

their own right- the product of metal and physical effort applied to tasks and can be judged apart from results (Brumbach, 1988).

MANAGEMENT:

Management is the art of getting things done through and with people in Anomaly organized group (According to Harold Koontz). System An organized, purposely structure that comes of interrelated and interdependent elements (compounds, entities, cores, members, parts etc.). These elements continue to influence one another directly or indirectly to maintain their activity and the existence of the system in order to achieve the goal of the system.

RATIONALE OF THE RESEARCH STUDY:

When it comes to performance, employee's performance is one the main in organizational success. Therefore, it is an need of the hour where organizational has to make very specific efforts for improving employee's performance 10 optimally utilize knowledge and skills of their employees. The proposed research study also would report on employee's feedback as well as expectations & experiences with regard to selected performance management system It also list out suggestions for overall improvement for employees effective performance The research study would make an attempt to find the impact of performance management system on effective employees performance.

3.1 SCOPE & COVERAGE OF RESEARCH STUDY :

The research was conducted in S.S. Associates. The research study was focus on performance management system in S.S. Associates. It also measure evaluate the effective performance on the basis of employee's overall awareness, expectations and satisfaction or dissatisfaction as an outcome of offering various kinds of creative & employee's morale as offered by the performance management system of S.S. Associates.

3.2 OBJECTIVES OF RESEARCH STUDY:

The objective of the study area

To empirically assess performance management as a tool for improving performance.



To identity the effects of performance review techniques on employee's performance.

3.3 RESEARCH DESIGN: The research design of this study considering is objective, scope & coverage was exploratory as well as descriptive in nature.

SOURCES OF INFORMATION PRIMARY DATA

The primary data has been from the selected courses & sent executive at various departments of S.S. Associates through circulation of the structured non-disguised questionnaire.

SECONDARY DATA The secondary data has been obtained from published as well as unpublished literature on the topic and from Books. Journals. News Papers, Articles, Thesis, Websites, Magazines etc.

SAMPLING DECISIONS SAMPLE SIZE

Appropriate number of sample size was put to used for the purpose of collecting primary data from the selected samples of different departments of the S.S. Associates

Sample size :- 54.

3.4 SAMPLING METHOD Non-probability sampling design based on convenience sampling method has been used for this research study.

SAMPLING FRAMES The representative sampling units in appropriate & justified size has been conveniently drawn from amongst different employees are various heterogeneous Socio economic age groups, occupations, educational qualifications gender who have availed incentives employees monk as offered by the performance management system of the S.S. Associates.

RESEARCH INSTRUMENT:

A structured non-disguised questionnaire has been more to get the relevant information from the respondents. The questionnaire consists of variety of questions presented to the respondents for their responses The researcher has been used questionnaire with the support & cooperation of the selected respondents of various departments at managerial and non-managerial level of S.S. Associates.

SAMPLING MEDIA:

Sampling media has been in the form of Filling up of questionnaire.

DATA COLLECTON ANALYSIS & INTERPRETATION:

The collected information and primary data has been subjected to data analysis and interpretation content analysis and statistical analysis. The collected primary data has been pre-coded consider in designing of the structured nondisguised questionnaire, The primary data has been scrutinized, edited and validated and thereafter it has been presented in the forms of tables, charts, graphs and diagrams as the case may be.

SIGNIFICANCE OF THE RESEARCH STUDY:

This research study has covered the performance management system which help to find effective performance of the employees. The employees has been aware of the panel standard of the company. It has been create awareness of

performance management system to improve effective performance and also to the different criteria of the S.S. Associates. This research study also assists to S.S. Associates authorities in the designing of the performance management system for improving performance. Organization will be able to develop performance review techniques to control the performance of the employees.

LIMITATIONS OF THE RESEARCH STUDY : 

The researcher has used selected statistical tools which are relevant to research study & thus having limited generalizability.



The employees were reluctant to give correct information.



The investigator intended to cover only few areas of performance management system.



The sample size selected by the researcher is limited.



The time factor in collecting the research study has been limited factor.

In lieu of the variation in the parenting involvement of selected employees at different departments of S.S. Associates, there may be inaccuracy of the responses given by them.

GENERAL PROFILE OF RESPONDENTS:

(1) Gender –

Sr No.

Gender

Frequency

Percentage%

1

Male

50

92

2

Female

4

8

TOTAL

54

100

Gender

male female

(2) Age –

Sr. No.

Frequency Percentage%

1

20-25

12

22%

2

26-35

24

45%

3

56-50

18

33%

TOTAL 54

Age

20-25 26-35 Sales,Age Age, 0, 0%

100

56-50

Sales, 20-25, 12, 22%

Sales, 5650, 18, 33%

Sales, 2635, 24, 45%

(3) Qualification -

Sr. No.

Educational Qualification

Frequency

Percentage %

1

Graduate

22

37

2

Post Graduate

12

20

3

Diploma

6

10

4

Others

14

23

TOTAL

54

100%

The chart depicts that: 37% of the employees are graduate, 23% of the employees are others, 20% of the employees are post graduate, 10% of the employees are diploma holders.

Majority employees are Graduate.

Chart Title

graduate post graduate diploma others

(4) Job Experience –

Sr. No.

Job Experience

Frequency

Percentage%

1

Less than one

04

07

year

2

2-4 years

34

56

3

More than 4

16

37

54

100%

years TOTAL

From the above table, 56% of the employees have work experience of 2-4 years, 37% have work experience more than 4 years, 7% of the employees have the work experience of less than one year.

Chart Title Less than one year 04

2-4 years

More than 4 years

Que.1 Do you believe the current performance management system is improving performance?

Response

Frequency

Percentage%

YES

50

93

NO

4

7

TOTAL

54

100

From the above table 93% of the respondents believes that the current performance management system does affect the performance where as, 7% of the respondents do not believe that the current performance management system is going anywhere.

Majority of them believes that the current performance system does helps in improving performance.

Column1, no, 4, 7%

Column1, , 0, Chartno Title yes 0%

Column1, yes, 50, 93%

Que.2 Do you believe that Performance management helps me to motivate my team? (HR Perception)

From the above table all the HR professionals strongly agree that performance management helps to motivate team

Que.3 Do you believe performance management helps me to decide how Particulars

Frequency

Percentage%

Strongly Agree

3

100

Agree

0

00

Neutral

0

00

Disagree

0

00

Strongly Disagree

0

00

TOTAL

03

00

much to pay the members of my team ?

From the above table all the HR professionals believes that performance management helps to decide how to pay the each individual.

Que.4 Do you believe that Performance management helps developing the skill & capabilities of my team?

Particulars

Frequency

Percentage%

Strongly Agree

3

100

Agree

0

00

Neutral

0

00

Disagree

0

00

Strongly Disagree

0

00

TOTAL

03

00

From the above table all the HR professionals believes that performance management helps in developing the skill and capabilities of an employee.

Que.5 Do you believe that I am not comfortable with conducting the performance reviews?

Particulars

Frequency

Percentage%

Strongly Agree

1

33.33

Agree

0

00

Neutral

1

33.33

Disagree

1

33.33

Strongly Disagree

0

00

TOTAL

03

00

Particulars

Frequency

Percentage%

Strongly Agree

3

100

Agree

0

00

Neutral

0

00

Disagree

0

00

Strongly Disagree

0

00

TOTAL

03

00

From the above table all the 3 HR professional distinguish with their opinion of the fact that I am not comfortable conducting the performance review.

4. Analysis 4.1 ORGANIZATIONAL PERFORMANCE

Organizational Performance what it is? Performance is all of these. It‘s the end result of an activity. And whether that activity is hours of intense practice before a concert or race or whether it‘s carrying out job responsibilities as efficiently and effectively as possible, performance is what results from that activity.

Managers are concerned with organizational performance—the accumulated end results of all the organization‘s work processes and activities. It‘s a complex but important concept, and managers need to understand the factors that contribute to high organizational performance. After all, they don‘t want (or intend) to manage their way to mediocre performance. They want their organizations, work units, or work groups to achieve high levels of performance, no matter what mission, strategies, or goals are being pursued.

Why is Measuring Organizational Performance Important?

Managers measure and control organizational performance because it leads to better asset management, to an increased ability to provide customer value,

and to improved measures of organizational knowledge. In addition, measures of organizational performance do have an impact on an organization‘s reputation.

The value created by Michael Jordan and other assets of the Bulls (coach Phil Jackson; other talented team players including Scottie, Pippen and Dennis Rodman; experienced marketing, operations, and financial employees; and other resources including the arena and practice facilities, available capital, etc) was possible only because they were managed extremely well as a portfolio of assets. That‘s what managers at high-performing companies do— they manage the organizational assets in ways that exploit their value. Asset management is the process of acquiring, managing, renewing, and disposing of assets as needed, and of designing business models to take advantage of the value from these assets. It‘s not just the top-level managers who are concerned with asset management. Managers at all organizational levels and in all work areas manage their available assets—people, information, equipment, and so forth—by making decisions that they hope will lead to high levels of performance. Because achieving high levels of organizational performance is important in both the short run and long run, managers look for ways to better manage their assets so that they look good on the key performance measures used by both internal and external evaluators. Increased Ability to Provide Customer Value providing value to customers is important for organizations. If customers aren‘t receiving something of value from their interactions with organizations, they‘ll look elsewhere. Managers should monitor how well they‘re providing customer value, and they can do that when they measure performance. For example, at IBM‘s Industry Solutions Laboratories in Hawthorne, New York, Stuttgart, Germany, and Yamato, Japan, customers interact with IBM researchers to come up with technological solutions that meet their unique and challenging needs. For instance, Britain‘s Safeway Stores PLC and the Hawthorne Lab collaborated on a consumer application that gives top customers the ability to conveniently create and maintain personalized grocery shopping lists and preorder groceries using a portable handheld device. And the Hawthorne Lab completed a project

for Southwest Airlines that automated the crew-pairing process-a company logistics nightmare in which 2,700 pilots, 4,500 flight attendants, and more than 2,400 daily departures had to be logistically coordinated. It was important for the lab‘s managers to be able to measure how well they solved customer problems and to gauge their ability to provide customer value.

Impact on Organizational Reputation You knows that your personal reputation is important in what others think of you. It influences whether they will ask you for advice, listen to what you have to say, or trust you to complete assigned tasks. Organizations strive to have good reputations, as well. They want others—customers, suppliers, competitors, community, and so forth—to think highly off them. The advantages of a strong correlation between an organization‘s financial performance and its reputation. Which leads to the other? It‘s not always clear which comes first, but we do know it‘s difficult to have one without the other. In fact, a study of reputation and financial performance showed a strong correlation between good reputation and strong financial measures such as earnings growth and total return.

4.2 Measures of Organizational Performance

There are three ways of measuring organizational performance. Generally applied measures are –

1. Productivity

2. Organizational Effectiveness,

3. Organizational Ranking.

Peter F. Drucker the well-known management guru was of the view that an organization‘s employees need to see the connection between what they do and the outcomes. He said, ―The focus of the organization must be on performance… The spirit of organization is high performance standards, for

the group as well as for each individual. But before employees can see this connection and work toward achieving high performance, managers need to specify the performance outcomes that will be measured. The most frequently used

organizational

performance

measures

include

organizational

productivity, organizational effectiveness, and industry rankings.

Productivity is defined as the overall output of goods or services produced divided by the inputs needed to generate that output. Organizations strive to be productive. They want the most goods and services produced using the least amount of inputs. Output is measured by the sales revenue an organization receives when those goods and services are sold (selling price x number sold). Input is measured by the costs of acquiring and transforming the organizational resources into the outputs. It‘s management‘s job to increase productivity by reducing the input cost and increasing the output price (selling price). Doing this means being more efficient in performing the organization‘s work activities. So, organizational productivity becomes a measure of how efficiently employees do their work. ―We are increasing our company‘s capability by increasing the capability of our employees.‖ Ford was investing in its future productivity by making employees more efficient in their job-related use of the Internet, said the Chief Information Officer of Ford Motors.

Organizational effectiveness is a measure of how appropriate organizational goals are and how well an organization is achieving those goals. It‘s a common performance measure used by managers. Other descriptions of organizational effectiveness have been suggested by management researchers. For instance, the systems resource model or organizational effectiveness proposes that effectiveness is measured by the organization‘s ability to exploit its environment in acquiring scarce and valued resources. The process model emphasizes the transformation processes of the organization and how well the organization converts inputs into desired

outputs. Then, finally, the multiple constituencies‘model says that several different effectiveness measures should be used, reflecting the different criteria of the organization‘s constituencies. For example, customers, advocacy groups, suppliers, and security analysts each would have their own measures of how well the organization was performing. Although each of these different effectiveness models may have merit in measuring certain aspects of organizational effectiveness, the bottom line for managers continues to be how well the organization accomplishes its goals. That‘s what guides managerial decisions in designing strategies, work processes, and work activities, and in coordinating the work of employees.

Ranking of Industries is determined by specific performance measures. For instance, Fortune‘s Top Performing Companies of the Fortune 500 are determined by financial results including, profits, return on revenue, and return on shareholder‘s equity; growth in profits for 1 year, 5 years, and 10 years; and revenues per employee, revenues per dollar of assets, and revenues per dollar of equity. Industry Week’s Best Managed Plants are determined by organizational accomplishments and demonstrations of superior management skills in the areas of financial performance, innovation, leadership, globalization, alliances and partnerships, employee benefits and education, and community involvement. Thus, different agencies apply different parameters or measures through which performance of organizations is decided to rank the Industry/organization. PERFORMANCE MANAGEMENT IN SMME’S

In the last few years, small, medium and micro enterprises (SMMEs) developed into an important role player in the South African economy. SMMEs are viewed as a key source of employment, and one of the objectives of the National Skills Development Strategy is to stimulate and support skills development initiatives in SMMEs. In view of this, performance management should be an important aspect in SMMEs, but it often is not applied.

Key challenges in SMMEs that impact on effective performance management include: 

Strategy is not always clear, defined or formalised



Decisions are not taken to lower levels (“family business” syndrome)



SMMEs often experience the following dilemma’s:



There is little time



Few resources and finances



Little support



Inadequate managerial skills

In order to ensure Performance Management is effective in SMME’s, the following can be considered: 

Keep it simple



Make sure you have a formal defined strategy before you implement performance management



Link the targets of individuals to key business objectives



Where appropriate, make use of available resources (consultants, donor projects, etc).

PERFORMANCE AND REWARD

Over the past few years Indian Corporates have increasingly started to link reward to performance. “Consequence” management is a term that is used more and more – the underlying assumption is that direct reward (or the withholding thereof) will strongly impact on the employee’s motivation to perform better.

The following assumptions often underpin the link between performance and reward: 

What gets measured gets done



What gets rewarded is sustained



Measures give rewards relevance, and rewards give measures meaning



The majority of workers want recognition for achievement



Reward has a high retention value

This aspect of the Performance Management process is however very complex and highly emotional and often fails to deliver the expected positive results. Dilemmas in reward can often be traced back to issues such as: 

Lack of objectivity



Lack of transparency



Affordability

Performance-based pay and rewards often fail because of the following:



Lack of objective and quantitative measures



Poor link between pay and performance (no immediate reinforcement)



The aspects that get rewarded are not linked to strategy – the “wrong” behaviour and achievements are sustained



Poor communication regarding objectives, benefits and procedures (the “rules of the game”)

5. Conclusions Effective management of individual and team performance is a crucial and central requirement to ensure stakeholder requirements, organisational strategy and business goals are attained. This requires accurate data regarding performance levels of business units, teams and individuals, and therefore the need for a standardised and formal performance management system. An effective performance management system is the centre of an integrated HR System and the performance data feeds into a variety of processes and systems, for example: 

Career planning



Rewards



Training and development



Disciplinary decisions



Promotions, etc

Despite the importance of performance management, most organisations find it difficult to implement, manage and sustain performance management systems and processes effectively. It is therefore crucial to ensure adequate planning, evaluation and training is done that will support a sustainable process. This is possibly one of the reasons why performance management systems have evolved and changed significantly over the years – each new

approach an attempt to make it better, more effective and more acceptable to end-users..

6. Recommendations/ Learning

Important requirements for an effective performance-based reward strategy include:



Establish a pay-for-performance work culture



Ensure employee acceptance



Ensure a clear line of sight



Set high, but attainable standards of performance



Standards should be clear, well defined and accepted



Rewards should be simple and understandable



Effective administration

Rewards for performance can include:



Performance-based increases (annual increments)



Individual and team-based incentives



Performance bonuses



Commissions



Gain-sharing (where staff share in the gains of cost reductions or improved productivity in the form of cash rewards)



Profit-sharing (where a portion of the profits of a company is distributed amongst staff, allowing them to share in the financial success of the company)



Employee share ownership plans (ESOP’s)

 Suggestion schemes

7. References

Websites:

www.google.com

www.pdfcoke.com

Books:

Performance Management (Robert Bacel, 2011)

Performance management system and strategies (D K Bhattacharyya 2011)

8. Appendix NATURE

OF

CURRENT

PERFORMANCE

MANAGEMENT

SYSTEM:

Do your organization operate formal performance management system?

Sr. No.

Response

Frequency

Percentage%

1

Yes

44

81

2

No

10

19

TOTAL

54

100

From the above table, 87% respondents are in favour of organization operate formal performance management system, 13% respondents are not in favour of organization operate in formal performance management system.

Column1, No, 10, 19%

Column1, Yes , 0,No 0%

Column1, , 0, 0%

Column1, Yes , 44, 81%

(1) If yes, which of the following groups of employees do this processes apply to?

Sr No.

Levels

Frequency

1

Senior managers

2

2

Other managers

10

3

Professionals

30

4

Technical/clerical

12

TOTAL

54

From the above table, out of 54 respondents, 30 from the professionals do this process applied, 10 from the others, 12 from the technical, 2 from the senior managers do this process applied.

Mostly this process is applied to professionals group of employees.

Senior managers 2

Other managers

Professionals

(2) What are the techniques that are used in your organisation for assessing performance?

Sr. No.

Techniques

Frequency

Percentage%

1

Observation

6

10

2

Assessment &

2

03

Checklist

46

87

TOTAL

54

100

Development Centre

3

From the above table, 87% of the respondents are in favour of checklist techniques that are used in organization for assessing performance, 10% respondents are in favour of observation techniques that are used in organisation for assessing performance, 3% respondents are in favour of

assessment & development centres techniques that are used in organisation for assessing performance.

Majority respondents believed in checklist techniques that are used in organisation for assessing performance.

observation assessment & development checklist