Pms Project On Paharpur Industries

PERFORMANCE MANAGEMENT SYSTEM PROJECT REPORT ON

Performance management system at “paharpur 3P”

Submitted under the partial fulfillment of continuous evaluation for internal marks/assessment of performance management system Submitted to: Submitted by: Ms. Parul Jhajhariya Kumar A0101907G14

Gayatri Ankita Gulati A0101907G07

AMITY BUSINESS SCHOOL, AMITY UNIVERSITY UTTAR PRADESH

ACKNOWLEDGEMENT

No work is ever complete without expressing gratitude when and where it is due. Our group would like to express our sincere gratitude towards our faculty Ms. Parul Jhajhariya for giving us this opportunity and for his constant guidance and support. Education is what remains after one has forgotten what one has learned in school. Working on this project has helped us understand the concept of Performance mangemnt system used in Paharpur 3P for which we are thankful to the HR manager Ms. Neeta Jaiswal for providing us with all the necessary data and information.

GAYATRI KUMAR A0101907G14 ANKITA GULATI A0101907G07

COMPANY PROFILE Paharpur's flexible packaging business leverages, with more vigour than ever before, the powerful Paharpur brand. The Paharpur Group continues to make available its potent resources and intellectual capital, and insist on business ethics, that takes its flexible packaging division to a position of strength and respect in the market in and outside India. Paharpur supports the development of cutting edge technology so as to raise the bar of the product offering and process quality, productivity, cost conservation and turnaround time to serve the markets of its choice. Thereby, it reaps the rewards of goodwill, profitability and return on its investment CORPORATE VISION To build a reputation in the industry by practicing a strategy that incorporates ethics, transparency, social responsibility, quality and commitment to our stakeholders in all our activities. CORPORATE MISSION Maintaining leadership through technology in the flexible packaging industry. PAHARPUR COMMITMENT Paharpur-3P is a division of Paharpur Cooling Towers Ltd. They have state of the art manufacturing facilities, strategically located near two major metro cities in Delhi and Chennai. More than 90% of our machines and equipment are imported and are in line with the latest international technology. They have been accredited several times with the Indian Star Award for excellence in packaging. Today, their sales turnover exceeds Rs. 1 billion (USD 23 million) and they plan to grow over three times by the end of this decade. At least one-third of the sales turnover is anticipated to come exports. PRIMARY COMPETITIVE ADVANTAGES • •

Superlative quality products Competitive prices

• • •

Customer satisfaction--the key motive Latest technology machines used Robust systems

PERFORMANCE MANAGEMENT SYSTEM ( PMS) Performance management system (PMS) is the heart of any " people management " process in organization. Organizations exist to perform. If people do not perform organizations don't survive. If people perform at their peak level organization can compete and create waves. Performance management is the process of creating a work environment or setting in which people are enabled to perform to the best of their abilities. Performance management is a whole work system that begins when a job is defined as needed. It ends when an employee leaves the organization. Most organizations focus on an annual evaluation process for employees and call that Performance Management. However, annual evaluations are often subjective and can lack specific measurements and supportive data to help the employee truly improve their behavior.

OBJECTIVES OF PMS A performance management system includes the following actions. •

Develop clear job descriptions.

•

Select appropriate people with an appropriate selection process.

•

Negotiate requirements and accomplishment-based performance standards, outcomes, and measures.

•

Provide effective orientation, education, and training.

•

Provide on-going coaching and feedback.

•

Conduct quarterly performance development discussions

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Design effective compensation and recognition systems that reward people for their contributions

•

Provide promotional/career development opportunities for staff

•

Assist with exit interviews to understand WHY valued employees leave the organization

KEY BENEFITS OF PMS •

PM focuses on results, rather than behaviors and activities

•

Aligns organizational activities and processes to the goals of the organization

• • •

Cultivates a system-wide, long-term view of the organization A clear understanding of job expectations feedback about performance

•

Advice and steps for improving performance

•

Rewards for good performance

SETTING UP A PMS The goal of a performance management system is to help boost employee performance and, ultimately, the productivity of the business. For it to be effective, a performance management system should incorporate the following critical elements: Updated job description Job descriptions should clearly describe the employee's current duties and performance expectations. Position descriptions should be specific, clearly defining the job function, required skills, deadlines and goals, and should delineate expectations for the employee's relations with peers and customers Guidelines for Improvement Institute basic policies to cope with employee weaknesses and poor performance. Decide if we will provide training or mentoring for employees exhibiting subpar performance. Set guidelines that outline how long it should it take an employee to improve and what steps will be taken if the employee fails to show improvement Employee Input Solicit and evaluate staff suggestions for the performance management program. Incorporate employee input into the program or system as needed Compensation and Rewards When the employees perform well they should be compensated. Rewards keep morale high, generate loyalty and foster additional improvement. But closely linking pay hikes and promotions to performance appraisals is a contested issue. Regardless of how and when you choose to compensate your employees, an above-average appraisal deserves acknowledgment. Make sure they should be consistently reward employees for their hard work.

PERFORMANCE APPRAISAL Performance appraisal which is also known as employee appraisal is one of the major part of performance management system to reach organizational goals and appraise employees.It is a method by which the job performance of an employee is evaluated (generally in terms of quality, quantity, cost and time). Performance appraisal is a part of career developments

Generally, the aims of a scheme are: •

Give

feedback on performance to employees. •

Identify employee training needs.

•

Document criteria used to allocate organizational rewards.

•

Form a basis for personnel decisions: salary increases, promotions, disciplinary actions, etc.

•

Provide the opportunity for organizational diagnosis and development.

•

Facilitate communication between employee and administrator.

•

Validate selection techniques and human resource policies to meet federal Equal Employment Opportunity requirements.

DEVELOPING A GOOD APPRAISAL SYSTEM End of the year appraisals are always a matter of heartburn and disgruntlement among employees. It is only very rarely that all employees find the appraisal system fair and reflective of their real performance. For managements too, conducting such appraisals is a matter of trepidation. This is more so for companies that are still to develop a strong

performance evaluation system. But appraisals have to be done and they are critical for rewarding and retaining talent. They are also important for attracting talent as good performance evaluation systems help to build the employer brand.. Here are some suggestions for creating and implementing a fair, accurate, and discerning employee review system: •

Document everything

•

Set clear goals

•

Make the process user-friendly

•

Allow for flexibility

•

Make it participatory

•

Set achievable goals

•

Adjust your business plan

VARIOUS KINDS OF PERFORMANCE APPRAISAL SYSTEMS  Personality based performance appraisal system: Here the appraiser is supposed to rate the personality traits of the person being appraised. This is not in much in organisations as it very subjective and judgmental. It could also be biased and prejudiced.

 Competence based performance appraisal system: Here the job analysis is used and the employee is appraised for the skills he exhibits. For e.g. if his job entails dealing with the clients then he is judged foe his effectiveness in dealing with them. This enables both the organisation and the employee as to what deficiencies are to be overcome and can be useful in providing training to the employee to better his performance.  Result based performance appraisal system: This system concentrates on the final results achieved by the employee irrespective of his personality or deficiencies. This is totally related to the job and concentrates on the end results that are more important to the organization. Thus Performance Appraisal is the process to establish the competency and the learning gap in addition to reward system. Performance increment would depend on the performance appraisal input for the department and the management for decision making. Human Resources would craft the notice and letter to communicate to the employees. This is also an important issue. Human Resources is the corporate communicator and is responsible for employees communication.

360 DEGREE PERFORMANCE APPRAISALS 360 degree feedback, also known as 'multi-rater feedback', is the most comprehensive appraisal where the feedback about the employees’ performance comes from all the sources that come in contact with the employee on his job. 360 degree respondents for an employee can be his/her peers, managers (i.e. superior), subordinates, team members, customers, suppliers/ vendors - anyone who comes into contact with the employee and can provide valuable insights and information or feedback regarding the “on-the-job” performance of the employee.

Why It's Important Measures a leader's skill in the 22 Core and Adaptive leadership competencies most critical for job performance. Leaders rate themselves and receive ratings from their peers, supervisor(s), subordinates and others (such as customers). This process increases self-awareness and drives skill development. Results are delivered in a report that highlights strengths, areas for improvement, and differences/similarities in views of behavior. Report includes e-learning featuring clips of Hollywood movies, television, and historical events plus a complete online Goal Tracking System to ensure lasting change. 360 degree appraisal has four integral components: 1. Self appraisal 2. Superior’s appraisal 3. Subordinate’s appraisal 4.peer appraisal.

Self appraisal gives a chance to the employee to look at his/her strengths and weaknesses, his achievements, and judge his own performance. Superior’s appraisal forms the traditional part of the 360 degree appraisal where the employees’ responsibilities and actual performance is rated by the superior. Subordinates appraisal gives a chance to judge the employee on the parameters like communication and motivating abilities, superior’s ability to delegate the work, leadership qualities etc. Also known as internal customers, the correct feedback given by peers can help to find employees’ abilities to work in a team, co-operation and sensitivity towards others.

Self assessment is an indispensable part of 360 degree appraisals and therefore 360 degree Performance appraisal have high employee involvement and also have the strongest impact on behavior and performance. It provides a "360-degree review" of the employees’ performance and is considered to be one of the most credible performance appraisal methods. 360 degree appraisal is also a powerful developmental tool because when conducted at regular intervals (say yearly) it helps to keep a track of the changes others’ perceptions about the employees. A 360 degree appraisal is generally found more suitable for the managers as it helps to assess their leadership and managing styles.

PAHARPUR 3P’S PMS SYSTEM Performance Philosophy Paharpur 3p strongly believes that people are valuable and critical for its success and the success of the organization depends on creating an environment in which the performance of people is valued. This would require the organization to be able to distinguish between performers & non-performers. Creating a “performance” culture would also mean that it would encourage, provide counsel and reasonable support for non performers to join the main stream of performers and demonstrate the performance levels required. The PMS system is a tool to enable building a Performance Culture within the Company.

The Key Drivers of the PMS The Mission, Vision and Values of the company set the contour for the way the company operates. The PMS system reinforces these beliefs.

Paharpur 3P’s PMS aims at: Driving employee behavior to align with the organization’s Vision, Mission and Values and ensure achievement of Results Paharpur 3P’s PMS system intends to: (1) Build Transparency and Openness by providing a platform for open and frank communication on performance and development needs (2) Bring greater clarity in role expectations by enabling discussion and agreement on objectives to be achieved (3) Bring about greater ownership for the goals to be achieved and the tasks to be accomplished by enabling a formal discussion and seeing it in the context of the overall organisation objectives (4) Enable development by both structured feedback to the individual and using inputs from the system to build development programs

PMS Process Key Role Players The PMS process is a participative process. All the participants play an important part in making the process effective and meaningful. The roles of the various participants in this process are described below: Appraisee: The individual whose performance is being appraised. Appraiser: The immediate reporting authority of the appraise. Reviewing Manager: The reporting authority of the Appraiser, who will provide additional inputs in the appraisal and also provide a check and feedback

Moderation Committee: A Cross Functional Team depending upon Levels that plays the role of providing a check and feedback in appraisals across the organization and enables greater consistency. Functional head: Approval heads of the organization HR: Facilitator for the entire process. RATING METHOD FOLLOWED AT PAHARPUR 3-P FOR PMS Graphic rating method Graphic rating scales are one of the most common methods of performance appraisal. Graphic rating scales require an evaluator to indicate on a scale the degree to which an employee demonstrates a particular trait, behavior, or performance result. Rating forms are composed of a number of scales, each relating to a certain job or performance-related dimension, such as job knowledge, responsibility, or quality of work. Each scale is a continuum of scale points, or anchors, which range from high to low, from good to poor, from most to least effective, and so forth. Rating scale : 1to 3 Where 1 being the least and 3 being the highest scale. This scaling rates have following characteristics • • •

Performance dimensions are clearly defined. Scales are behaviorally based so that a rater is able to support all ratings with objective, observable evidence Points, or anchors, on each scaled dimension are brief, unambiguous, and relevant to the dimension being rated

Advantages to company 1.Standardization of content permitting comparison of employees. 2. Ease of development use and relatively low development and usage cost. 3. Reasonably high rater and ratee acceptance BARS - Behaviorally Anchored Rating Scales Behaviorally anchored rating scales (BARS) are rating scales whose scale points are defined by statements of effective and ineffective behaviors.

They are said to be behaviorally anchored in that the scales represent a continuum of descriptive statements of behaviors ranging from least to most effective. An evaluator must indicate which behavior on each scale best describes an employee's performance. The employee at paharpur 3- is evaluated on job specific behaviour which are associated with the success in the position The person is evaluated for each job specific behaviour on a scale of 3. With 3 being the highest and 1 being the lowest) Management by Objectives At Paharpur 3P Management by objectives (MBO) involves setting specific measurable goals with each employee and then periodically discussing his/her progress toward these goals. The term MBO almost always refers to a comprehensive organization-wide goal setting It consist of six main steps: Set the organization?s goals. Establish organization-wide plan for next year and set goals. 2. Set departmental goals. Here department heads and their superiors jointly set goals for their departments 3. Discuss and allocate department goals. Department heads discuss the department's goals with all subordinates in the department (often at a department-wide meeting) and ask them to develop their own individual goals; in other words, how can each employee contribute to the department's attaining its goals? 4. Define expected results (set individual goals). Here, department heads and their subordinates set short-term performance targets. 5. Performance review and measure the results. Department heads compare actual performance for each employee with expected results. 6. Provide feedback. Department heads hold periodic performance review meetings with subordinates to discuss and evaluate progress in achieving expected results. The employee is evaluated on goals and objectives associated with sucees in the position “Goals or Objectives” are specific statements or requirements agreed upon. “Measurement Method” reflects evaluation basis for expected results. “Results achieved” are accomplishments during the evaluation period The person is evaluated for each goal and objective on a scale of 3. With 3 being the highest and 1 being the lowest)

ATTRIBUTES COVERED FOR EVALUATING AN EMPLOYEE •

Achievement Motivation: Inherent desire to exceed targets & stretch ability to the fullest. High energy level. Assertive & result oriented.

•

Developing People: Evaluates subordinate performance & potential. Mentors & counsels.

•

Leadership: Can control & motivate a team to achieve set objectives. Inspires pride in the organization.

•

Job Knowledge: On the job knowledge of the assessee, keeping in view his ability to handle diverse job related situations

•

Approach to New Business Development / Process Enhancement: Initiative towards developing and improvising the existing business / systems and processes.

• • • •

Interpersonal Skills Communication Dependability / Punctuality Discipline

TIMING: The appraisal is performed annually in the organisation SELF APPRAISAL Self appraisal is an important part of the Performance appraisal process where the employee himself gives the feedback or his views and points regarding his performance. Usually this is done with the help of a self appraisal form where the employee rates himself on various parameters, tells about his training needs, if any, talks about his accomplishments, strengths, weaknesses, problems faced TIPS FOR SELF – APPRAISAL

Be honest Always be truthful and honest while telling your accomplishments or failures. Don’t exaggerate your strengths and don’t hide your weaknesses. Don’t make personal judgments for anybody. Do the preparation

It’s always better to prepare yourself before the meeting. Get all the lists in place, prepare all the evidences and references. Be objective Objectivity is important in self – appraisal. Don’t exaggerate or downplay your achievements or failures. Be specific and concise in your statements and if possible support them with examples or references or evidences with dates. For example: "I responded to all queries within 48 hours" is better than just saying "My customer service was good." Positive attitude Have a positive attitude towards the whole appraisal process. Be co-operative. Don’t hesitate from taking the responsibility of your failures as well as the achievements. Demonstrate enthusiasm to improve in future and take all his suggestions calmly. Don’t complain or demonstrate a negative attitude. Cover all the aspects Apart from your strengths, weaknesses, accomplishments and failures, express the opportunities you would like have for your development and improvement. Suggest ways to overcome the problems faced. Assess your capabilities, behaviours and skills and competence.

AT PAHAR PUR 3-P the employee perform the self appraisal mentioning about his:

.

•

Major Responsibilities: What are the major responsibilities in his current work profile.

•

What are the Key Result Areas i.e. what are the activities he does in order to accomplish the tasks he is responsible for. Also, to give comprehensive details of the various reports / MIS / Database being maintained by the employee. THE PERFORMANCE APPRAISAL PROCESS

Appraisee fills self appraisal part of Performance Appraisal Form and forwards to the Appraiser.

Appraiser reviews self appraisal and fills in ratings on Goals and Competencies in the appraisal Form *

Appraiser and Appraisee to participate in the Performance Review Meeting ** participate

Appraiser enters final Ratings on the Form and forwards to the Reviewer

Form and Comments Reviewed By Reviewer

Moderation by Committee

Final Rating & Awards

Communication of the Final Rating and Rewards by Appraiser to the Appraisee

PERFORMANCE REVIEW - THE MEETING

At paharpur 3P performance review meetings are regarded as conversation with a purpose. They are considered extremely important for the development and health of the organization. The purpose of the performance review meetings is to reach mutually agreed conclusions about the development of the individual and his performance and if applicable, any areas for improvement, including how such improvements are to be achieved The purpose of performance and development reviews is to enable the employees to engage in a dialogue and get the support of the manager about the individual’s performance and development. They should be more like free- flowing, open meetings in which views are exchanged so that agreed conclusions can be reached. The three key elements of performance review meetings are: 1. Feedback - Providing information on how a person has been doing. 2. Measurement – assessing results against agreed targets and standards. 3. Exchange of views - Ensuring that the discussion involves a full, free and frank exchange of views about what has been achieved, what needs to be done to achieve more and what employees think about their work the way they are managed and their aspirations. Review discussion meetings include the following: •

Review of progress on tasks and activities in relation to the employee’s performance plan,

•

The developmental initiatives taken by the employee himself and those planned by the management for the employee.

•

Identification of variances in terms of delays, requisite quality and shortfall in help planned for the employee, if any

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Analyzing the causes of the delay, the problems faced and the solutions adopted.

•

Preparation of action steps for solving identified problems and contingency plans for anticipated problems.

TIMING: It is performed on the annual basis in the organization

ANNEXURES PAHARPUR INDUSTRIES

LIMITED PERFORMANCE PLANNING AND EVALUATION FORM

Incumbent: Designation: Division / Unit:

Performance Period: _________ To ___________ Scheduled Evaluation Date: __________________

Date of Goal Setting: ________________________ Signature of Incumbent: _____________________ Signature of Superior: _______________________

Major Responsibilities: What are your major responsibilities in your current work profile? (to be filled by appraisee)

What are your Key Result Areas i.e. what are the activities you do in order to accomplish the tasks you are responsible for? Also, please give comprehensive details of the various reports / MIS / Database being maintained by you? (to be filled by appraisee)

Training & Development: List 2-3 development needs and activities that can enhance productivity, performance, competence and professional growth. (to be filled by appraiser) Technical: Behavioral:

A. GOALS AND OBJECTIVES ASSOCIATED WITH SUCCESS IN THIS POSITION A

“Goals or Objectives” are specific statements or requirements agreed upon. “Measurement Method” reflects evaluation basis for expected results. “Results achieved” are accomplishments during the evaluation period. (Evaluate the person for each goal and objective on a scale of 3. With 3 being the highest and 1 being the lowest)

1

Goal or Objective:

Weight for goal

Score

Weight for goal

Score

Weight for goal

Score

Measurement Method:

2

Goal or Objective:

Measurement Method:

3

Goal or Objective:

Measurement Method:

Approved Head Mnfg./ Mktg/ HR & Fin

GOALS AND OBJECTIVES ASSOCIATED WITH SUCCESS IN THIS POSITION

“Goals or Objectives” are specific statements or requirements agreed upon. “Measurement Method” reflects evaluation basis for expected results. “Results achieved” are accomplishments during the evaluation period. (Evaluate the person for each goal and objective on a scale of 3. With 3 being the highest and 1 being the lowest) 4

Goal or Objective:

Weight for goal

Score

Weight for goal

Score

Weight for goal

Score

Measurement Method:

5

Goal or Objective:

Measurement Method:

6

Goal or Objective:

Measurement Method:

Weightage of Job related attributes (60) Approved Head Mnfg./ Mktg/ HR & Fin B. JOB SPECIFIC BEHAVIORS ASSOCIATED WITH SUCCESS IN THIS POSITION

Check boxes for behaviors that will be evaluated. As with goals and objectives, careful discussion of expectations should occur. Put Weightage for each behaviour terms. Use last box for job specific behaviors. Evaluate the person for each job specific behaviour on a scale of 3. With 3 being the highest and 1 being the lowest) Achievement Motivation: Inherent desire to exceed Weight Score targets & stretch ability to the fullest. High energy level. Assertive & result oriented. Developing People: Evaluates subordinate performance & potential. Mentors & counsels.

Weight

Score

Leadership: Can control & motivate a team to achieve set objectives. Inspires pride in the organization.

Weight

Score

Job Knowledge: On the job knowledge of the assessee, keeping in view his ability to handle diverse job related situations.

Weight

Score

Approach to New Business Development / Process Enhancement: Initiative towards developing and improvising the existing business / systems and processes. Interpersonal Skills:

Weight

Score

Weight

Score

Communication:

Weight

Score

Dependability / Punctuality:

Weight

Score

Discipline:

Weight

Score

Job specific behavior (specify)

Weight

Score

Weightage of Behaviour related attributes (40) Approved Head Mnfg./ Mktg/ HR & Fin C. EFFECTIVENESS AT WORK: Rate the appraisee on a scale of 3 for each of the attribute, with 3 being the highest and 1 being lowest.

S. No.

ATTRIBUTE

Weigh t

1 2 3 4 5 6

Weightage of Job related attributes 7

Achievement Motivation

8

Developing People

9

Leadership

10

Job Knowledge

11

12 13 14

15 16

17

60

Approach to New Business Development/ Process Enhancement Interpersonal Skills Communication Dependability/ Punctuality Discipline

Job Specific Behaviour (specify) Weightage of Behavior related attributes

40

FH (If applicable)

Head – Mfg./ Mktg.

Head HR

Numeric Score *

Must Total

100 TOTAL SCORE

* Multiply the weight times the numeric equivalent of the rating D. OVERALL ASSSESSMENT FOR THE PERIOD: Tick in the appropriate column for both contribution and personal effectiveness. Level of Contribution/Effectiveness

Rating On Contribution

On Personal Effectiveness

Significantly & consistently exceeds requirements of the job Consistently meets requirements of the job Occasionally meets requirements of the job Does not meet requirements of the job E. PROMOTABILITY: Degree of readiness for promotion a. Ready ( ) b. Not ready ( ) c. Will be ready in ______ years Promotion recommended

(

)

If yes, do you have a specific position/job available?

Yes (

)

Please specify: F. SUMMARY: TOTAL SCORE:

/ 300

CONTRIBUTION RATING: PERSONAL EFFECTIVENESS RATING:

G. REMARKS OF: •

FUNCTIONAL HEAD

Signature :

Date:

No (

)

•

HEAD HRD: Mention the percentage increase to be given on the basis of total score of effectiveness at work, contribution rating and personal effectiveness rating. Increment Rate: Signature :

Date:

PERIOD UNDER REVIEW: DUE DATE: PERSONAL DETAILS DATE OF BIRTH:

DATE OF JOINING:

CONFIRMED ON:

ATTENDANCE:

QUALIFICATIONS: Academic:_______________________________________________________________ _______________________________________________________________________ ________ Professional:_____________________________________________________________ _______________________________________________________________________ __________ TOTAL EXPERIENCE:

PRIOR TO PIL:

IN PIL

EMOLUMENTS RECORD: (To be prepared by Manager Coordination )

– Personnel &

AFTER REVIEW WITH EFFECT FROM: Salary Components Basic HRA Conveyance Special Allowance Books & Periodicals Business Meeting Children Education Allowance Gas & Electricity Conveyance Expense Telephone

1 year earlier

Present

Recommended w.e.f.

Any Other TOTAL I PF LTA Medical Bonus TOTAL II TOTAL ( I & II)

Manager - Personnel & Coordination CEO

Head HRD

Director

&

BIBLIOGRAPHY Search Engines  www.google.com  www.altavista.com The major websites surfed were  www.pilpack.com  www.tradeindia.com Books Referred  Human Resource Management by VSP Rao