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COMPANY PROFILE
The two Iron-men, in its true pioneering spirit, contemplated the manufacture of Artificial Leather in 1954 and initiated manufacturing of Artificial Leather cloth in Malad, Mumbai and marketing it all over the country through Ahmedabad, Bangalore, Kolkata and Chennai.
In 1962 a plot was acquired at Kandivli, Mumbai and the manufacturing base was shifted here by the name of The National Leather Manufacturing Company (NLC). They imported Dornbusch coating lines and the best quality of Artificial Leathercloth became a reality!
The years passed by and there was no looking back as the Group was growing in leaps and bounds. It was just a beginning for the team which was later strengthened when Late Shri. Gandalal’s son, Late Mr.Kantilal Shah and Late Mr.Amrutlal Motasha joined the business.
MISSION AND VISSION -:
MISSION -: We aspire to build our local and international footprint through sustainbale growth and by creating value for all our stakeholders.
VISSION -: Customer-centric international organization providing quality products ,services and building trust of stakeholders.
DIFFERENT COMPANIES OF SAMSONS GROUP :
About VinyRoyalPlasticoates Private Limited (VPPL) :-
The pioneering entrepreneur of the group started the flagship company NLC in 1962. It is engaged in manufacturing of Artificial Leathercloth and is one of the largest manufacturers in the world with installed capacity of 13.5 million square meters with 3 Coating lines.
Infrastructure :
Specializes in Manufacturing PVC artificial leather to various Indian and International standards for automobile seat upholstery and trims.Collection of designs in natural leather like grains and fabric type patterns in a wide range of colours Choice of PVC Artificial, Leather with knit, woven and non woven backing fabric to suit a range of end users.A well equipped laboratory for testing raw material and the finished products. Modern and well laid out plant for production and storage.
DIFFERENT COMPANIES OF SAMSONS GROUP :
About VinyRoyalPlasticoates Private Limited (VPPL) :-
The pioneering entrepreneur of the group started the flagship company NLC in 1962. It is engaged in manufacturing of Artificial Leathercloth and is one of the largest manufacturers in the world with installed capacity of 13.5 million square meters with 3 Coating lines.
Infrastructure : Specializes in Manufacturing PVC artificial leather to various Indian and International standards for automobile seat upholstery and trims.Collection of designs in natural leather like grains and fabric type patterns in a wide range of colours Choice of PVC Artificial, Leather with knit, woven and non woven backing fabric to suit a range of end users.A well equipped laboratory for testing raw material and the finished products. Modern and well laid out plant for production and storage.
About Joyride :-
Joyride seat covers made from superior grade of leather cloths, Joyride offers better protection from harsh UV rays and keeps the seats cooler. The product is specially designed for Indian climate keeping in mind essential factors such as heat management, durability, environment and the value for money.
Durability and long life :Joyride offers all weather protection and comes with 3 years warranty.
About Royal Cushion Vinyl Products Ltd. :Royal Cushion Vinyl Products Ltd. has two plants spread across 130 acres of land, at Guardia, Halol, Gujarat, for manufacturing of Vinyl Floorings of different types for various end-users and Rigid Films. RCVPL caters to customers in over 40 countries worldwide.
Quality Policy :To achieve customer satisfaction by providing international quality products in all our product ranges.
About Vijayjyot :-
Vijayjyot seating components division is leading components manufacturer for Metro, Bus, Car, Cinema and Auditorium seats. The product line includes fabrication of Metal Frames (MS and SS), Polyurethane (PU) Foam and Upholstery / Trim Covers. We also manufacture and supply fully assembled Railway seats. Its seating components division provides one-stop solution to customers from design inception, proto-type sample, product development to commercial supplies. Facilities include Design center, Tool room, Weld shop with advanced technology like Multi Axis Bending Machine, Cutting & Sewing Machines and PU Machines. The plant is located in Halol, near Vadodara in state of Gujarat, INDIA.
About Royal Knitting :Initially Royal Knitting Pvt. Ltd [RKPL] established in 1983, produced knitted fabrics to meet the in-house requirements for leather cloth backing, for our sister concern - National Leather cloth Mfg. Co. and Vinyroyal Plasticoates Pvt. Ltd. Today RKPL’s installed capacity stands at 175 tones/month of circular knitted fabrics and 20 tones/month of warp knitted fabrics. Only 30% of the capacity is utilized to make supplies to group company, 50% supplies are made to other local Artificial Leathercloth manufacturers & exports and remaining 20% supplies go to OE customers such as Melba, Faze 3, Reliance, Shamkeen. In OE the fabric is applied for back scrim application in automotive upholstery. Production facility consists of 28 circular knitting machines (Single Jersey, Terry, Interlock) of Mayer & Cie make, 4 Orizio make, 2 Taifan make and 1 Fukuhara.
VIJAYJYOT COMPANY OVERVIEW
Vijayjoyt is leading manufacturer and marketer of automotive, cinema / auditorium, bus & railways seating systems of India. Its products are marketed under the brand name VIJAYJYOT. They are 2 decades old company in seating system having clienteles at home (India) and abroad.
Design & Development Facility :Its design & development facility is located in plant in Baska, near Baroda, Gujarat and plant in Pune, Maharastra. They have state of art of technology development centre where 20 dedicated engineers/ staff are involved in development of new products and applications round the clock for various segments of seating systems. They are an ISO/ TS 16949:2000 certified company.
Its people -: Their main focus is future growth of company lies with its human resource people. The human skills are updated with training inputs on a regular basis and also have a HR practices in our organization. Our top management is involved in HR policy within the organization, that a clear indication that we are people performance organization.
Marketing & Distribution They have a very wide spread sales and marketing network covering 4 regions of the country. Our representation is very strong even in overseas market like Middle East, Russia, Europe and North America. After sales service to all our customers are being monitored in the form of Customer Satisfaction Index. This is to assess and improve various parameters of services within our setup on the basis of customer's feedback.
Its Group -: The journey of samsons group started way back in 1932 by the confluence of two families Shahs' and Motashas' in the form of small trading house. Subsequenwas in 1954, Royal Knitting (fabric) in 1978 & Vijayjyot Seats Pvt. Ltd. ( VSPL) in 1989. Group turnover is around Rs. 200 crores (U$ 45 MIO).
INTRODUCTION
1.1 History of Performance Management :
No one knows precisely when formal methods of reviewing performance were first introduced. According to Koontz (1971), the emperors of the Wei dynasty (AD 221-265) in China had an ‘Imperial Ratter’ whose task was to evaluate the performance of the official family. Centuries later, Ignatius Loyola(1491-1556) established a system for formal rating of the members of the Society of Jesus (the Jesuits). The first formal monitoring systems, however, evolved out of the work of Federick Taylor and his followers before World War I. Rating for officers in the US armed services was introduced in the 1920s, & this spread to the UK, as did some of the factory-based US systems. Merit-rating came to the fore in the USA & the UK in the 1950s & 1960s, when it was sometimes rechristened performance appraisal. Management by objectives then came & went in the 1960s & 1970s and simultaneously, experiments were made with the critical incident technique & behaviourally anchored rating scales. A revised form of results-oriented performance appraisal emerged in the 1970s, which still exists today.
The first recorded use of the term ‘performance management’ is in Beer and Ruh (1976). Their thesis was that ‘performance is best developed through practical challenges & experiences on the job with guidance and feedback from superiors’. They described theperformance-management system at Corning Glass Works, the aim of which was to help managers give feedback in a helpful & constructive way, and to aid in the creation of developmental plan . The concept of performance management then lay fallow for some years, but began to emerge in the USA in the mid-1980s as a new approach to managing performance. However, one of the first books exclusively devoted to performance managements was not published until 1987(Plachy 1987).
1.2 What is Performance Management ?
There are few comprehensive definitions of Performance Management. HM Treasury describe Performance Management as “Managing the Performance of an organisation or individual”. Whilst this is not a precise definition grounded in literature it demonstrates the breadth of performance management and hence the difficulties in defining its scope, activities and practices. It demonstrates that performance management is concerned with the management of performance throughout the organisation and as a result is a multidisciplinary activity. Further, in their Glossary of Performance Terms the Improvement Development Agency further suggest that –“ it involves you understanding and acting on performance issues at each level of your organization, from individuals, teams and directorates, through to the organization itself. As well as involving performance measurement, systems and processes, performance management is about managing people and ‘the way people within an organisation operate and work together’. Issues such as leadership, decision making, involving others, motivation, encouraging innovation, and risk taking are just as important to bring about improvement”. This definition further demonstrates the breadth of the subject highlighting some of the activities involved in managing performance, requiring a range of different skills and functional approaches. This provides challenges of terminology when we discuss the subject. Academic research in particular tend to be undertaken in functional subject areas and often within organization managers sit in functions and take a functional perspective on the subject of performance. Despite this the clear multidisciplinary, the field of performance management has developed from diverse origins. Different measurement and management techniques and approaches have developed independently. Financial and particularly management accounting have been concerned with measuring and controlling the financial performance of organisations, operations have been concerned with “shop floor performance often focusing on improving throughput and efficiency. ,
1.4 Aims of Performance Management :-
(1) Help to achieve sustainable improvements in organizational performance.
(2) Act as a lever for change in developing a more performance oriented culture.
(3) Increase the motivation and commitment of employees.
(4) Enable individuals to develop their abilities, increase their job satisfaction and achieve their full potential to their own benefit and that of the organization as a whole.
(5) Enhance the development of the team cohesion and performance.
(6) Develop the constructive and open relationship between individuals and their managers in a process of continuing dialogue which is linked to the work actually being done throughout the year.
(7) Provide opportunities for individuals to express their aspirations and expectations about their work.
Principles of Performance Management :The principles of performance management have been well summarized by IRS (1996) as follows :o It translate corporate goals into individuals, teams, department and divisional goals. o It help to clarify corporate goals. o It is a continuous and evolutionary process, in which performance improves over time. o It relies on consensus and cooperation rather than control on coercion. It encourages self-management of individual performance. o It requires a management style that is open and honest and encourages to two-way communication between superiors and subordinates. o It requires continuous feedback. o Feedback loops enable the experience and knowledge and gained on the job by individuals to modify corporate objective.
o It measures and assesses all performance against jointly agreed goals o It should apply to all staff, and it is not primarily concerned with linking performance to financial reward. o Performance management should operate in accordance with the following ethical principles as defined by Winstanely and Stuart- Smith (1996) :
Respect for the individuals – people should be treated as ‘ends in themselves’ and not merely as ‘means to other ends’
SCOPE OF PERFORMANCE MANAGEMENT
Performance management is about managing the organization. It is a natural process of management, not a system or a technique (Fowler, 1990). It is a also about managing within the context of the business (its internal & external environment). This will affect how it is developed, what is sets out to do and how it operates. The context is very important, and Jones (1995) goes as far as to say ‘manage context, not performance’.
Performance management concerns everyone in the business- not just managers. It rejects the cultural assumptions that only managers are accountable for the performance of their teams and replaces it with the belief that responsibility is shared between managers and team members. In a sense, managers should regard the people who report to them as a customers for the managerial contribution and services they can provide. Managers and their teams are jointly accountable for results and are jointly involved in agreeing what they need to do and how they need to do it, in monitoring performance & in taking action.
Benefits of Performance Management :-
The benefits to the organisation, managers and individuals of well- conceived and well-run performance management processes are summarised below :
For the Organisation :
o Align corporate, individual and team objectives.
o Improve performance.
o Motivate employees.
o
Increase commitment
Factors affecting Performance :-
Performance is affected by a number of factors, all of which should be taken into account. These Comprise Personal factors- the individual’s skill, competence, motivation and commitment.
o Leadership factors- the quality of encouragement, guidance and support provided by managers and team leaders.
o Team factors- the quality of support provided by colleagues.
o Systems factors- the system of work and facilities provided by the organisation.
o Contextual factors- internal and external environmental pressures and changes.
Meaning of Performance Management System :-
Performance management system (PMS) is the heart of any “people management processes’’ in organization. Organizations exist to perform. If properly designed and implemented it can change the course of growth and pace of impact of organizations. If people do not perform organizations don't survive. If people perform at their peak level organization can compete and create waves. In the past organizations as well as the HR function have wasted a lot of time by wrongly focusing on performance appraisals rather than performance management.
Characteristics of an Ideal PM System:
(1) Strategic congruence : The system should be congruent with the unit and organisation’s strategy. In other words, individual goals must be aligned with unit and organizational goals.
(2) Thoroughness : The system should be thorough regarding four elements :all employees should be evaluated, all major job responsibilities should be evaluated, the evaluation should include performance spanning the entire review period, not just the few weeks or months.
(3) Practicality: Systems that are too expensive, time consuming and convoluted will obviously not be effective. Good, easy-to- use systems are available for managers to help them make decisions.
(4)Specificity : A good system should be specific: it should provide detailed and concrete guidance to employees about what is expected of them an how they can meet these e x p e c t a t ions. (5) Identification of effective & ineffective performance : The performance management system should provide information that allows for the identification of effective and in effective performance.
(6) Reliability : A good system should include measures of performance that are consistent and free of error. For example, if two supervisors provided ratings of the same employee and performance dimensions, rating should be similar.
(7) Validity : The measures of performance should also be valid. In this context, validity refers to the fact that the measures include all relevant performance facets and do not include irrelevant performance fa
CHAPTER-2 RESEARCH METHODOLOGY
2.1 TITLE OF THE RESEARCH STUDY : “An Analytical Study of Performance Management System as a tool for Effective performance : A study of Selected employees in Vijayjyot Seats Private Limited”.
2.2 DURATION OF THE RESEARCH STUDY :
This study was carried out for duration of 2 month
2.3 BASIC TERMS OF PRESENT RESEARCH STUDY :
Performance -: Performance means both behaviors and results. Behaviors emanate from the performer and transform performance from abstraction to action. Not just the instruments for results, behaviours are also outcomes in their own. Right-: the product of metal and physical effort applied to tasks- and can bejudged apart from results (Brumbrach,1988). Management -: Management is the art of getting things done through and with people in formally organized group (According to Harold Koontz). System -:An organized, purposeful structure that consists of interrelated andinterdependent elements (components, entities, factors, members, parts etc.). These elements continually 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.(www.businessdictonary.com)
2.4 OBJECTIVES OF RESEARCH STUDY :
The objectives of the study are.......
o To empirically assess performance management as a tool for improving performance.
o To study the process and methods of existing performance management systems
o To identify the effects of performance review techniques on employee’s performance.
o To study of performance review techniques; employee’s performance; performance incentives and employee’s morale.
2.5 SCOPE & COVERAGE OF RESEARCH STUDY - :
The research was conducted in Vijayjyot Seats Private Limited. The research study was focus on performance management system in Vijayjyot seats private limited. It also measure & evaluate the effective performance on the basis of employee’s overall awareness, expectations & satisfaction or dissatisfaction as an outcome of offering various kinds of incentives & employee’s morale as offered by the performance management system of Vijayjyot seats (P) Ltd.
2.6 LIMITATIONS OF THE RESEARCH STUDY -:
The researcher has been use 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 responses as in conducting the research study has limited factor In lieu of the variation in the cooperation and involvement of selected employees at different departments of Vijayjyot Seats Private Limited, there may be inaccuracy of the responses given by them.
2.7 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 performance standard of the company. It has been create awareness of performance management system to improve effective performance and also to the different criteria of the Vijayjyot Seats Private Limited. This research study also assists to Vijayjyot Seats Private Limited authorities in the designing of the performance management system for improving performance. Organisation will be able to develop performance review techniques to control the performance of the employees.
2.8 RATIONALE OF THE RESEARCH STUDY :When it comes to performance, employee’s performance is one the main in organisational success. Therefore, it is an need of the hour where organizational has to make very specific efforts for improving employee’s performance to 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 an overall improvement for employees effective performance. The research study would make an attempt to find the impact of performance management system on effective employee’s performance.
2.9 RESEARCH DESIGN :The research design of this study considering its objectives, scope & coverage was exploratory as well as descriptive in nature
2.10 SOURCES OF INFORMATION : 2.10.1 PRIMARY DATA : The primary data has been obtained from the selected employees & senior executive at various departments of Vijayjyot Seats Private Limited through circulation of the structured non-disguised questionnaire.
2.10.2 SECONDARY DATA : The secondary data has been obtained from published as well as unpublished literature on the topic and from Books, Journals, News Papers, Research Articles, Thesis, Websites, Magazines etc.
2.10.3 SAMPLE SIZE
Appropriate number of sample size (i.e. 60) was put to used for the purpose of collecting primary data from the selected employees of different departments of theVijayjyot Seats Private Limited.
2.10.4 SAMPLING METHOD Non-probability sampling design based on convenient sampling method has been used for this research study. The representative sampling units in appropriate & justified size has been conveniently drawn from amongst different employees across various heterogeneous socioeconomic age groups, occupations, educational qualifications gender who have availed incentives & employee’s morale as offered by the performance management system of the Vijayjyot Seats Private Limited.
2.10.4 RESEARCH INSTRUMENT : A structured non-disguised questionnaire has been prepared 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 nonmanagerial level of Vijayjyot Seats Private Limited.
2.10.6 SAMPLING MEDIA Sampling media has been in the form of Filling up of questionnair
CHAPTER -3 REVIEW OF LITERATURE
Study by DDI (1997), Performance Management Practices is the most recent performance management study. It proves that successful organizations realize that performance management is a critical business tool in translating strategy into results. The CEOs in the majority of the 88 Organizations surveyed say their performance management system drives the key factors associated with both business and cultural strategies. Performance management systems directly influence five critical organizational outcomes : Financial performance, productivity, product or service quality, customer satisfaction & employee job satisfaction. When performance management systems are flexible & linked to strategic goals, organization are more likely to see improvement in the five critical areas : team objectives, non- manager training, appraiser accountability & links to quality management are the specific practices most strongly associated with positive outcomes.
Watkins (2007) puts it, most public sector business organization like those in Delta State of Nigeria have not given adequate attention to performance management review as a tool for improving performance even when recent studies suggest that performance review benefit organizational performance in both private & public sectors. Performance management has been described as a systematic approach to the management of people, using performance goal measurement, feedback and recognition as a means of motivating them to realize their maximum potentials. Public sector business organizations that strive to deliver quality services at competitive prices are those that embrace various performance review practices to assess their employee performance & motivate them with incentives.
Robert & Angelo (2001), The success or failure of public sector business organizations depends on the ability to attract, develop, retain, empower & reward a diverse array of appropriately skilled people and is the key to improving organizational performance. The explanation therefore is that human resourcemanagers in the public sector business concerns should embark on periodic performance management reviews of their employees in order to re-position their business organizations though owned by government for better performance & improved competitiveness
Study by Wm. Schiemann & Associates (1996), this national survey of cross-section of executives concluded that measurement-managed companies- especially those that measure employee performance- outperform those that downplay measurement. These research studied 122 organizations making between $27 million and $50 billion in sales. A higher percentage of measurement-managed companies were identified as industry leaders, as financially in the top third of their industry, and as successfully managing their change efforts. The research examined performance in six strategic performance areas deemed crucial to long-term success : Financial performance, operating efficiency, customer satisfaction, employee performance, innovation/change, community/environment. The findings revealed that the biggest measurement area separating successful from less successful firms is employee measurement. Successful industry leaders simply do a better job than non-leaders at measuring their workforce, which the study say is where real change won or lost. Study by Hewitt Associates (1994), The impact of performance management on organizational success substantiates that performance management system can have a significant impact on financial performance and productivity. The study used the Boston Consulting Group/HOLT financial database to track the financial performance of 437 publically held U.S. companies from 1990 through 1992.The study results showed that: Companies with performance programs have higher profits, better cash flows, stronger stock market performance and a greater stock value than companies without performance management. Productivity in firms without performance management is significantly
below the industry average, while productivity in firms with performance management is on par with the industry average. Companies with performance management significantly improved their financial performance and productivity after implementing performance management.
Williams (2002) identifies globalization, increased competition and the increasingly individualistic rather than collective employee relationship as some of the major drivers contributing to the increased visibility of performance management systems PMS). Faced with fast moving and competitive environments, companies are constantly searching for unique ways in which to differentiate themselves from their competition and are increasingly
The study by Eleni T. Stavrou, Christakis Charalambous and Stelios Spiliotis utilizes an innovative research methodology (kohonen’s Self-organizing Maps (SOMs), Neural Network Analysis) to explore the connection between human resource management as a source of competitive advantage and perceived organizational performance in the European Union’s private and public sectors. While practices in these two sectors did not differ significantly, three diverse but overlapping HRM models did emerge, each of which involved a different set of EU member states. Training & Development practices were strongly related toperformance in all three models and communication practices in two. These results show the usefulness of an innovative technique when applied to research so far conducted through traditional methodologies, and brings to the surface questions about the universal applicability of the widely accepted relationship between superior HRM and superior business Performance.
Sharmistha Bhattacharjee and Santoshi Sengupta (2011) studied that employees are the most valuable and dynamic assets of an organization. For achieving the strategic objective of sustained & speedy growth, managing human resource has been featured as a vital requirement in all organizations. It is a challenge to monitor the entire cycle of defining the competence requirement of the business, accessing existing competence in the organization and bridging the gap between the two. HR practices are crucial for any organization. Every phase from recruitment to exit interview is under the HR departmet.
The article of Javed Iqbal , Samina Naz, Mahnaz Aslam, Saba Arshad (2012), offers a survey of selected literature on performance management. Purpose is to identify key themes that govern the topic in the contemporary turbulent economic and business environment where employees are more uncertain that anything else because every day they face downsizing, volunteer retirement and “golden hand shakes’’ to get rid of them. Under these circumstances it is worthwhile to look into the ways by which they can be motivated to work under hard conditions. It is found that performance management processes, evaluation, its impact and factors are key themes. Researchers apply popular research approaches for data collection analysis and communication.
Research of Leena Toppo, Twinkle Prusty (2012) informs that performance appraisal and performance management were one of the emerging issues since last decade. Many organizations have shifted from employee’s performance appraisal system to employee’s performance management system. This paper has focused to study the evolution of employee’s performance appraisal system, critics the system suffered and how the performance management system came to the practice. The main purpose of this paper is to differentiate these two systems, employee’s performance appraisal and management system. This paper uses a review of the literature to evaluate the development of appraisal system and argues the critic areas of appraisal system. Performance management eliminates the shortcomings of performance appraisal system to the some extent
The aim of this study of Akinyele S. T. (2010) was to evaluate the effectiveness of performance appraisal system at private universities in Nigeria. The focus of the study was on the administrative staff of Crawford University. The study evaluated the purpose of performance appraisal in private universities and identifies relevant factors for achieving an effective performance appraisal. A cross- sectional survey was selected for this study because it was easy to undertake compared to longitudinal survey and the results from the same can be inferred to the larger population.
Whittaker and Marchington (2003) found evidence in their study that line managers spent very little time on people management issues, preferring instead to concentrate on financial or business objectives. Hope Hailey et al (2005) report that line managers are only measured on their technical role and not their people management responsibilities. The appraisal process is therefore of secondary importance to them and the appraisal is generally approached with little preparation, training or enthusiasm (Cook and Crossman 2004, Holt-Larsen and Brewster 2003). To address this,
Hendry et al (2000) argue that not only should line managers own the performance management process but that they should be involved in its design, and only by involving them at this stage will they “buy-in” to the process. Lack of management “buy-in” can potentially frustrate the whole purpose of a performance management system, leading to an inability to meet short-term goals as well as failure to address longer term developmental opportunities (Weeks, 2005)
Lohr (1981) had stated that even Abraham Taylor (1856-1915) widely regarded as the father of Scientific Management in his legendary thesis on performance improvement in organizations had recognized the negative influences of groups on performance and sought to break-up informal group activities through spatial and work-flow designs and individual piece rate systems of pay.
Research of Leena Toppo, Twinkle Prusty (2012) informs that performance appraisal and performance management were one of the emerging issues since last decade. Many organizations have shifted from employee’s performance appraisal system to employee’s performance management system. This paper has focused to study the evolution of employee’s performance appraisal system, critics the system suffered and how the performance management system came to the practice. The main purpose of this paper is to differentiate these two systems, employee’s performance appraisal and management system. This paper uses a review of the literature to evaluate the development of appraisal system and argues the critic areas of appraisal system. Performance management eliminates the shortcomings of performance appraisal system to the some extent
CHAPTER–5 DATA ANALYSIS & INTERPRETATION
(1) Gender : What is the percentage of male and female category
TABLE 1 Sr.
Gender
Frequency
No.
Percentage (%)
1.
Male
52
87
2.
Female
08
13
Total
60
100
gender 13%
male
female 87%
Interpretation : From the above table, 87% of employees lies under the male category and 13% employees lies under the Female category. Majority of the employees lies under the Male category.
(2) Experience : How many years of experience the respondents have ?
Sr. No
Job Experience
Frequency
Percentage (%)
1
Less than one year
04
7
2
2-10 years
34
56
3
More than 10 years
22
37
Total
60
100%
TABLE: 2
job Experience 7% 37% less than one year 56%
2-10 year more than 10 year
Interpretation : From the above table, 56% of the respondents have work experience of 2-10 years, 37% of the respondents have work experience of more than 10 years, and 7% of the respondents have work experience of less than one year. Majority of the employees in the organization have a work experience of 1-5 y
Response 13%
YES NO 87%
interpretation : From the above table, 87% respondents are in favour of organization operate formal performance management system, 13% respondents are not in favour of organization operate in formal performance management system.
4) Performance evaluation How many percentage of people are satisfied about performance evaluation of current performance of management system?
TABLE :4 Sr. No
Particulars
Frequency
Percentage (%)
1 2 3 4 5
Very Satisfied Satisfied Neutral Unsatisfied Very Unsatisfied Total
52 00 00 08 00 60
87 00 00 13 00 100%
PERFORMANCE 0% 0%
0% 13%
very satisfied satisfied neutral 87%
unsatisfied very unsatisfied
Interpretation : From the above table, 87% respondents are very satisfied about performance evaluation of current performance management system, 13% respondents are unsatisfied about performance evaluation of current performance management system.
(5) Development planning How many percentage of respondents are very satisfied about development planning of current performance of management system?
TABLE :5 Sr. No
Particulars
Frequenc y
Percentage (%)
1 2 3 4 5
Very Satisfied Satisfied Neutral Unsatisfied Very Unsatisfied Total
50 02 00 08 00
83 3 00 14 00
60
100%
development planning 0% 3% 0%
14%
very satisfied satisfied neutral 83%
unsatisfied very unsatisfied
Interpretation : From the above table, 83% respondents are very satisfied about development planning of current performance management system, 3% respondents are satisfied about development planning of current performance management system, 14% respondents are unsatisfied about development planning of current performance management system. Majority respondents are very satisfied about development planning of current performance management system
(6). 360 Degree Feedback :
How many percentage of respondent are very satisfied and neutral about 360 degree feedback of current performance management system ?
TABLE :6 Sr. No 1 2 3 4 5
Particulars Very Satisfied Satisfied Neutral Unsatisfied Very Unsatisfied Total
Freque ncy 42
Percentage (%)
08 08 02 00
14 13 03 00
60
100%
70
development planning 0% 3% 0%
14%
very satisfied satisfied neutral 83%
unsatisfied very unsatisfied
S Interpretation : From the above table, 70% respondents are very satisfied about 360 degree feedback of current performance management system, 14% respondents are satisfied about 360 degree feedback of current performance management system, 13% respondents are neutral about 360 degree feedback of current performance management system. Majority of respondents are very satisfied about 360 degree feedback of current performance management system. 37
Interpretation : From the above table, 70% respondents are very satisfied about 360 degree feedback of current performance management system, 14% respondents are satisfied about 360 degree feedback of current performance management system, 13% respondents are neutral about 360 degree feedback of current performance management system. Majority of respondents are very satisfied about 360 degree feedback of current performance management system. 37
Interpretation : From the above table, 70% respondents are very satisfied about 360 degree feedback of current performance management system, 14% respondents are satisfied about 360 degree feedback of current performance management system, 13% respondents are neutral about 360 degree feedback of current performance management system. Majority of respondents are very satisfied about 360 degree feedback of current performance management system. 37
Interpretation : From the above table, 70% respondents are very satisfied about 360 degree feedback of current performance management system, 14% respondents are satisfied about 360 degree feedback of current performance management system, 13% respondents are neutral about 360 degree feedback of current performance management system. Majority of respondents are very satisfied about 360 degree feedback of current performance management system. 37
Majority of respondents are very satisfied about 360 degree feedback of current performance management system. 37
Interpretation : From the above table, 70% respondents are very satisfied about 360 degree feedback of current performance management system, 14% respondents are satisfied about 360 degree feedback of current performance management system, 13% respondents are neutral about 360 degree feedback of current performance management system. Majority of respondents are very satisfied about 360 degree feedback of current performance management system. 37
implemented it can change the course of growth and pace of impact of organizations. If people do not perform organizations don't survive. If people perform at their peak level organization can compete and create waves. In the past organizations as well as the HR function have wasted a lot of time by wrongly focusing on performance appraisals rather than performance management.
The two Iron-men, in its true pioneering spirit, contemplated the manufacture of Artificial Leather in 1954 and initiated manufacturing of Artificial Leather cloth in Malad, Mumbai and marketing it all over the country through Ahmedabad, Bangalore, Kolkata and Chennai.
In 1962 a plot was acquired at Kandivli, Mumbai and the manufacturing base was shifted here by the name of The National Leather Manufacturing Company (NLC). They imported Dornbusch coating lines and the best quality of Artificial Leathercloth became a reality!
The years passed by and there was no looking back as the Group was growing in leaps and bounds. It was just a beginning for the team which was later strengthened when Late Shri. Gandalal’s son, Late Mr.Kantilal Shah and Late Mr.Amrutlal Motasha joined the business.
MISSION AND VISSION -:
MISSION -: We aspire to build our local and international footprint through sustainbale growth and by creating value for all our stakeholders.
VISSION -: Customer-centric international organization providing quality products ,services and building trust of stakeholders.
DIFFERENT COMPANIES OF SAMSONS GROUP :
About VinyRoyalPlasticoates Private Limited (VPPL) :-
The pioneering entrepreneur of the group started the flagship company NLC in 1962. It is engaged in manufacturing of Artificial Leathercloth and is one of the largest manufacturers in the world with installed capacity of 13.5 million square meters with 3 Coating lines.
Infrastructure :
Specializes in Manufacturing PVC artificial leather to various Indian and International standards for automobile seat upholstery and trims.Collection of designs in natural leather like grains and fabric type patterns in a wide range of colours Choice of PVC Artificial, Leather with knit, woven and non woven backing fabric to suit a range of end users.A well equipped laboratory for testing raw material and the finished products. Modern and well laid out plant for production and storage.
DIFFERENT COMPANIES OF SAMSONS GROUP :
About VinyRoyalPlasticoates Private Limited (VPPL) :-
The pioneering entrepreneur of the group started the flagship company NLC in 1962. It is engaged in manufacturing of Artificial Leathercloth and is one of the largest manufacturers in the world with installed capacity of 13.5 million square meters with 3 Coating lines.
Infrastructure : Specializes in Manufacturing PVC artificial leather to various Indian and International standards for automobile seat upholstery and trims.Collection of designs in natural leather like grains and fabric type patterns in a wide range of colours Choice of PVC Artificial, Leather with knit, woven and non woven backing fabric to suit a range of end users.A well equipped laboratory for testing raw material and the finished products. Modern and well laid out plant for production and storage.
About Joyride :-
Joyride seat covers made from superior grade of leather cloths, Joyride offers better protection from harsh UV rays and keeps the seats cooler. The product is specially designed for Indian climate keeping in mind essential factors such as heat management, durability, environment and the value for money.
Durability and long life :Joyride offers all weather protection and comes with 3 years warranty.
About Royal Cushion Vinyl Products Ltd. :Royal Cushion Vinyl Products Ltd. has two plants spread across 130 acres of land, at Guardia, Halol, Gujarat, for manufacturing of Vinyl Floorings of different types for various end-users and Rigid Films. RCVPL caters to customers in over 40 countries worldwide.
Quality Policy :To achieve customer satisfaction by providing international quality products in all our product ranges.
About Vijayjyot :-
Vijayjyot seating components division is leading components manufacturer for Metro, Bus, Car, Cinema and Auditorium seats. The product line includes fabrication of Metal Frames (MS and SS), Polyurethane (PU) Foam and Upholstery / Trim Covers. We also manufacture and supply fully assembled Railway seats. Its seating components division provides one-stop solution to customers from design inception, proto-type sample, product development to commercial supplies. Facilities include Design center, Tool room, Weld shop with advanced technology like Multi Axis Bending Machine, Cutting & Sewing Machines and PU Machines. The plant is located in Halol, near Vadodara in state of Gujarat, INDIA.
About Royal Knitting :Initially Royal Knitting Pvt. Ltd [RKPL] established in 1983, produced knitted fabrics to meet the in-house requirements for leather cloth backing, for our sister concern - National Leather cloth Mfg. Co. and Vinyroyal Plasticoates Pvt. Ltd. Today RKPL’s installed capacity stands at 175 tones/month of circular knitted fabrics and 20 tones/month of warp knitted fabrics. Only 30% of the capacity is utilized to make supplies to group company, 50% supplies are made to other local Artificial Leathercloth manufacturers & exports and remaining 20% supplies go to OE customers such as Melba, Faze 3, Reliance, Shamkeen. In OE the fabric is applied for back scrim application in automotive upholstery. Production facility consists of 28 circular knitting machines (Single Jersey, Terry, Interlock) of Mayer & Cie make, 4 Orizio make, 2 Taifan make and 1 Fukuhara.
VIJAYJYOT COMPANY OVERVIEW
Vijayjoyt is leading manufacturer and marketer of automotive, cinema / auditorium, bus & railways seating systems of India. Its products are marketed under the brand name VIJAYJYOT. They are 2 decades old company in seating system having clienteles at home (India) and abroad.
Design & Development Facility :Its design & development facility is located in plant in Baska, near Baroda, Gujarat and plant in Pune, Maharastra. They have state of art of technology development centre where 20 dedicated engineers/ staff are involved in development of new products and applications round the clock for various segments of seating systems. They are an ISO/ TS 16949:2000 certified company.
Its people -: Their main focus is future growth of company lies with its human resource people. The human skills are updated with training inputs on a regular basis and also have a HR practices in our organization. Our top management is involved in HR policy within the organization, that a clear indication that we are people performance organization.
Marketing & Distribution They have a very wide spread sales and marketing network covering 4 regions of the country. Our representation is very strong even in overseas market like Middle East, Russia, Europe and North America. After sales service to all our customers are being monitored in the form of Customer Satisfaction Index. This is to assess and improve various parameters of services within our setup on the basis of customer's feedback.
Its Group -: The journey of samsons group started way back in 1932 by the confluence of two families Shahs' and Motashas' in the form of small trading house. Subsequenwas in 1954, Royal Knitting (fabric) in 1978 & Vijayjyot Seats Pvt. Ltd. ( VSPL) in 1989. Group turnover is around Rs. 200 crores (U$ 45 MIO).
INTRODUCTION
1.1 History of Performance Management :
No one knows precisely when formal methods of reviewing performance were first introduced. According to Koontz (1971), the emperors of the Wei dynasty (AD 221-265) in China had an ‘Imperial Ratter’ whose task was to evaluate the performance of the official family. Centuries later, Ignatius Loyola(1491-1556) established a system for formal rating of the members of the Society of Jesus (the Jesuits). The first formal monitoring systems, however, evolved out of the work of Federick Taylor and his followers before World War I. Rating for officers in the US armed services was introduced in the 1920s, & this spread to the UK, as did some of the factory-based US systems. Merit-rating came to the fore in the USA & the UK in the 1950s & 1960s, when it was sometimes rechristened performance appraisal. Management by objectives then came & went in the 1960s & 1970s and simultaneously, experiments were made with the critical incident technique & behaviourally anchored rating scales. A revised form of results-oriented performance appraisal emerged in the 1970s, which still exists today.
The first recorded use of the term ‘performance management’ is in Beer and Ruh (1976). Their thesis was that ‘performance is best developed through practical challenges & experiences on the job with guidance and feedback from superiors’. They described theperformance-management system at Corning Glass Works, the aim of which was to help managers give feedback in a helpful & constructive way, and to aid in the creation of developmental plan . The concept of performance management then lay fallow for some years, but began to emerge in the USA in the mid-1980s as a new approach to managing performance. However, one of the first books exclusively devoted to performance managements was not published until 1987(Plachy 1987).
1.2 What is Performance Management ?
There are few comprehensive definitions of Performance Management. HM Treasury describe Performance Management as “Managing the Performance of an organisation or individual”. Whilst this is not a precise definition grounded in literature it demonstrates the breadth of performance management and hence the difficulties in defining its scope, activities and practices. It demonstrates that performance management is concerned with the management of performance throughout the organisation and as a result is a multidisciplinary activity. Further, in their Glossary of Performance Terms the Improvement Development Agency further suggest that –“ it involves you understanding and acting on performance issues at each level of your organization, from individuals, teams and directorates, through to the organization itself. As well as involving performance measurement, systems and processes, performance management is about managing people and ‘the way people within an organisation operate and work together’. Issues such as leadership, decision making, involving others, motivation, encouraging innovation, and risk taking are just as important to bring about improvement”. This definition further demonstrates the breadth of the subject highlighting some of the activities involved in managing performance, requiring a range of different skills and functional approaches. This provides challenges of terminology when we discuss the subject. Academic research in particular tend to be undertaken in functional subject areas and often within organization managers sit in functions and take a functional perspective on the subject of performance. Despite this the clear multidisciplinary, the field of performance management has developed from diverse origins. Different measurement and management techniques and approaches have developed independently. Financial and particularly management accounting have been concerned with measuring and controlling the financial performance of organisations, operations have been concerned with “shop floor performance often focusing on improving throughput and efficiency. ,
1.4 Aims of Performance Management :-
(1) Help to achieve sustainable improvements in organizational performance.
(2) Act as a lever for change in developing a more performance oriented culture.
(3) Increase the motivation and commitment of employees.
(4) Enable individuals to develop their abilities, increase their job satisfaction and achieve their full potential to their own benefit and that of the organization as a whole.
(5) Enhance the development of the team cohesion and performance.
(6) Develop the constructive and open relationship between individuals and their managers in a process of continuing dialogue which is linked to the work actually being done throughout the year.
(7) Provide opportunities for individuals to express their aspirations and expectations about their work.
Principles of Performance Management :The principles of performance management have been well summarized by IRS (1996) as follows :o It translate corporate goals into individuals, teams, department and divisional goals. o It help to clarify corporate goals. o It is a continuous and evolutionary process, in which performance improves over time. o It relies on consensus and cooperation rather than control on coercion. It encourages self-management of individual performance. o It requires a management style that is open and honest and encourages to two-way communication between superiors and subordinates. o It requires continuous feedback. o Feedback loops enable the experience and knowledge and gained on the job by individuals to modify corporate objective.
o It measures and assesses all performance against jointly agreed goals o It should apply to all staff, and it is not primarily concerned with linking performance to financial reward. o Performance management should operate in accordance with the following ethical principles as defined by Winstanely and Stuart- Smith (1996) :
Respect for the individuals – people should be treated as ‘ends in themselves’ and not merely as ‘means to other ends’
SCOPE OF PERFORMANCE MANAGEMENT
Performance management is about managing the organization. It is a natural process of management, not a system or a technique (Fowler, 1990). It is a also about managing within the context of the business (its internal & external environment). This will affect how it is developed, what is sets out to do and how it operates. The context is very important, and Jones (1995) goes as far as to say ‘manage context, not performance’.
Performance management concerns everyone in the business- not just managers. It rejects the cultural assumptions that only managers are accountable for the performance of their teams and replaces it with the belief that responsibility is shared between managers and team members. In a sense, managers should regard the people who report to them as a customers for the managerial contribution and services they can provide. Managers and their teams are jointly accountable for results and are jointly involved in agreeing what they need to do and how they need to do it, in monitoring performance & in taking action.
Benefits of Performance Management :-
The benefits to the organisation, managers and individuals of well- conceived and well-run performance management processes are summarised below :
For the Organisation :
o Align corporate, individual and team objectives.
o Improve performance.
o Motivate employees.
o
Increase commitment
Factors affecting Performance :-
Performance is affected by a number of factors, all of which should be taken into account. These Comprise Personal factors- the individual’s skill, competence, motivation and commitment.
o Leadership factors- the quality of encouragement, guidance and support provided by managers and team leaders.
o Team factors- the quality of support provided by colleagues.
o Systems factors- the system of work and facilities provided by the organisation.
o Contextual factors- internal and external environmental pressures and changes.
Meaning of Performance Management System :-
Performance management system (PMS) is the heart of any “people management processes’’ in organization. Organizations exist to perform. If properly designed and implemented it can change the course of growth and pace of impact of organizations. If people do not perform organizations don't survive. If people perform at their peak level organization can compete and create waves. In the past organizations as well as the HR function have wasted a lot of time by wrongly focusing on performance appraisals rather than performance management.
Characteristics of an Ideal PM System:
(1) Strategic congruence : The system should be congruent with the unit and organisation’s strategy. In other words, individual goals must be aligned with unit and organizational goals.
(2) Thoroughness : The system should be thorough regarding four elements :all employees should be evaluated, all major job responsibilities should be evaluated, the evaluation should include performance spanning the entire review period, not just the few weeks or months.
(3) Practicality: Systems that are too expensive, time consuming and convoluted will obviously not be effective. Good, easy-to- use systems are available for managers to help them make decisions.
(4)Specificity : A good system should be specific: it should provide detailed and concrete guidance to employees about what is expected of them an how they can meet these e x p e c t a t ions. (5) Identification of effective & ineffective performance : The performance management system should provide information that allows for the identification of effective and in effective performance.
(6) Reliability : A good system should include measures of performance that are consistent and free of error. For example, if two supervisors provided ratings of the same employee and performance dimensions, rating should be similar.
(7) Validity : The measures of performance should also be valid. In this context, validity refers to the fact that the measures include all relevant performance facets and do not include irrelevant performance fa
CHAPTER-2 RESEARCH METHODOLOGY
2.1 TITLE OF THE RESEARCH STUDY : “An Analytical Study of Performance Management System as a tool for Effective performance : A study of Selected employees in Vijayjyot Seats Private Limited”.
2.2 DURATION OF THE RESEARCH STUDY :
This study was carried out for duration of 2 month
2.3 BASIC TERMS OF PRESENT RESEARCH STUDY :
Performance -: Performance means both behaviors and results. Behaviors emanate from the performer and transform performance from abstraction to action. Not just the instruments for results, behaviours are also outcomes in their own. Right-: the product of metal and physical effort applied to tasks- and can bejudged apart from results (Brumbrach,1988). Management -: Management is the art of getting things done through and with people in formally organized group (According to Harold Koontz). System -:An organized, purposeful structure that consists of interrelated andinterdependent elements (components, entities, factors, members, parts etc.). These elements continually 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.(www.businessdictonary.com)
2.4 OBJECTIVES OF RESEARCH STUDY :
The objectives of the study are.......
o To empirically assess performance management as a tool for improving performance.
o To study the process and methods of existing performance management systems
o To identify the effects of performance review techniques on employee’s performance.
o To study of performance review techniques; employee’s performance; performance incentives and employee’s morale.
2.5 SCOPE & COVERAGE OF RESEARCH STUDY - :
The research was conducted in Vijayjyot Seats Private Limited. The research study was focus on performance management system in Vijayjyot seats private limited. It also measure & evaluate the effective performance on the basis of employee’s overall awareness, expectations & satisfaction or dissatisfaction as an outcome of offering various kinds of incentives & employee’s morale as offered by the performance management system of Vijayjyot seats (P) Ltd.
2.6 LIMITATIONS OF THE RESEARCH STUDY -:
The researcher has been use 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 responses as in conducting the research study has limited factor In lieu of the variation in the cooperation and involvement of selected employees at different departments of Vijayjyot Seats Private Limited, there may be inaccuracy of the responses given by them.
2.7 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 performance standard of the company. It has been create awareness of performance management system to improve effective performance and also to the different criteria of the Vijayjyot Seats Private Limited. This research study also assists to Vijayjyot Seats Private Limited authorities in the designing of the performance management system for improving performance. Organisation will be able to develop performance review techniques to control the performance of the employees.
2.8 RATIONALE OF THE RESEARCH STUDY :When it comes to performance, employee’s performance is one the main in organisational success. Therefore, it is an need of the hour where organizational has to make very specific efforts for improving employee’s performance to 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 an overall improvement for employees effective performance. The research study would make an attempt to find the impact of performance management system on effective employee’s performance.
2.9 RESEARCH DESIGN :The research design of this study considering its objectives, scope & coverage was exploratory as well as descriptive in nature
2.10 SOURCES OF INFORMATION : 2.10.1 PRIMARY DATA : The primary data has been obtained from the selected employees & senior executive at various departments of Vijayjyot Seats Private Limited through circulation of the structured non-disguised questionnaire.
2.10.2 SECONDARY DATA : The secondary data has been obtained from published as well as unpublished literature on the topic and from Books, Journals, News Papers, Research Articles, Thesis, Websites, Magazines etc.
2.10.3 SAMPLE SIZE
Appropriate number of sample size (i.e. 60) was put to used for the purpose of collecting primary data from the selected employees of different departments of theVijayjyot Seats Private Limited.
2.10.4 SAMPLING METHOD Non-probability sampling design based on convenient sampling method has been used for this research study. The representative sampling units in appropriate & justified size has been conveniently drawn from amongst different employees across various heterogeneous socioeconomic age groups, occupations, educational qualifications gender who have availed incentives & employee’s morale as offered by the performance management system of the Vijayjyot Seats Private Limited.
2.10.4 RESEARCH INSTRUMENT : A structured non-disguised questionnaire has been prepared 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 nonmanagerial level of Vijayjyot Seats Private Limited.
2.10.6 SAMPLING MEDIA Sampling media has been in the form of Filling up of questionnair
CHAPTER -3 REVIEW OF LITERATURE
Study by DDI (1997), Performance Management Practices is the most recent performance management study. It proves that successful organizations realize that performance management is a critical business tool in translating strategy into results. The CEOs in the majority of the 88 Organizations surveyed say their performance management system drives the key factors associated with both business and cultural strategies. Performance management systems directly influence five critical organizational outcomes : Financial performance, productivity, product or service quality, customer satisfaction & employee job satisfaction. When performance management systems are flexible & linked to strategic goals, organization are more likely to see improvement in the five critical areas : team objectives, non- manager training, appraiser accountability & links to quality management are the specific practices most strongly associated with positive outcomes.
Watkins (2007) puts it, most public sector business organization like those in Delta State of Nigeria have not given adequate attention to performance management review as a tool for improving performance even when recent studies suggest that performance review benefit organizational performance in both private & public sectors. Performance management has been described as a systematic approach to the management of people, using performance goal measurement, feedback and recognition as a means of motivating them to realize their maximum potentials. Public sector business organizations that strive to deliver quality services at competitive prices are those that embrace various performance review practices to assess their employee performance & motivate them with incentives.
Robert & Angelo (2001), The success or failure of public sector business organizations depends on the ability to attract, develop, retain, empower & reward a diverse array of appropriately skilled people and is the key to improving organizational performance. The explanation therefore is that human resourcemanagers in the public sector business concerns should embark on periodic performance management reviews of their employees in order to re-position their business organizations though owned by government for better performance & improved competitiveness
Study by Wm. Schiemann & Associates (1996), this national survey of cross-section of executives concluded that measurement-managed companies- especially those that measure employee performance- outperform those that downplay measurement. These research studied 122 organizations making between $27 million and $50 billion in sales. A higher percentage of measurement-managed companies were identified as industry leaders, as financially in the top third of their industry, and as successfully managing their change efforts. The research examined performance in six strategic performance areas deemed crucial to long-term success : Financial performance, operating efficiency, customer satisfaction, employee performance, innovation/change, community/environment. The findings revealed that the biggest measurement area separating successful from less successful firms is employee measurement. Successful industry leaders simply do a better job than non-leaders at measuring their workforce, which the study say is where real change won or lost. Study by Hewitt Associates (1994), The impact of performance management on organizational success substantiates that performance management system can have a significant impact on financial performance and productivity. The study used the Boston Consulting Group/HOLT financial database to track the financial performance of 437 publically held U.S. companies from 1990 through 1992.The study results showed that: Companies with performance programs have higher profits, better cash flows, stronger stock market performance and a greater stock value than companies without performance management. Productivity in firms without performance management is significantly
below the industry average, while productivity in firms with performance management is on par with the industry average. Companies with performance management significantly improved their financial performance and productivity after implementing performance management.
Williams (2002) identifies globalization, increased competition and the increasingly individualistic rather than collective employee relationship as some of the major drivers contributing to the increased visibility of performance management systems PMS). Faced with fast moving and competitive environments, companies are constantly searching for unique ways in which to differentiate themselves from their competition and are increasingly
The study by Eleni T. Stavrou, Christakis Charalambous and Stelios Spiliotis utilizes an innovative research methodology (kohonen’s Self-organizing Maps (SOMs), Neural Network Analysis) to explore the connection between human resource management as a source of competitive advantage and perceived organizational performance in the European Union’s private and public sectors. While practices in these two sectors did not differ significantly, three diverse but overlapping HRM models did emerge, each of which involved a different set of EU member states. Training & Development practices were strongly related toperformance in all three models and communication practices in two. These results show the usefulness of an innovative technique when applied to research so far conducted through traditional methodologies, and brings to the surface questions about the universal applicability of the widely accepted relationship between superior HRM and superior business Performance.
Sharmistha Bhattacharjee and Santoshi Sengupta (2011) studied that employees are the most valuable and dynamic assets of an organization. For achieving the strategic objective of sustained & speedy growth, managing human resource has been featured as a vital requirement in all organizations. It is a challenge to monitor the entire cycle of defining the competence requirement of the business, accessing existing competence in the organization and bridging the gap between the two. HR practices are crucial for any organization. Every phase from recruitment to exit interview is under the HR departmet.
The article of Javed Iqbal , Samina Naz, Mahnaz Aslam, Saba Arshad (2012), offers a survey of selected literature on performance management. Purpose is to identify key themes that govern the topic in the contemporary turbulent economic and business environment where employees are more uncertain that anything else because every day they face downsizing, volunteer retirement and “golden hand shakes’’ to get rid of them. Under these circumstances it is worthwhile to look into the ways by which they can be motivated to work under hard conditions. It is found that performance management processes, evaluation, its impact and factors are key themes. Researchers apply popular research approaches for data collection analysis and communication.
Research of Leena Toppo, Twinkle Prusty (2012) informs that performance appraisal and performance management were one of the emerging issues since last decade. Many organizations have shifted from employee’s performance appraisal system to employee’s performance management system. This paper has focused to study the evolution of employee’s performance appraisal system, critics the system suffered and how the performance management system came to the practice. The main purpose of this paper is to differentiate these two systems, employee’s performance appraisal and management system. This paper uses a review of the literature to evaluate the development of appraisal system and argues the critic areas of appraisal system. Performance management eliminates the shortcomings of performance appraisal system to the some extent
The aim of this study of Akinyele S. T. (2010) was to evaluate the effectiveness of performance appraisal system at private universities in Nigeria. The focus of the study was on the administrative staff of Crawford University. The study evaluated the purpose of performance appraisal in private universities and identifies relevant factors for achieving an effective performance appraisal. A cross- sectional survey was selected for this study because it was easy to undertake compared to longitudinal survey and the results from the same can be inferred to the larger population.
Whittaker and Marchington (2003) found evidence in their study that line managers spent very little time on people management issues, preferring instead to concentrate on financial or business objectives. Hope Hailey et al (2005) report that line managers are only measured on their technical role and not their people management responsibilities. The appraisal process is therefore of secondary importance to them and the appraisal is generally approached with little preparation, training or enthusiasm (Cook and Crossman 2004, Holt-Larsen and Brewster 2003). To address this,
Hendry et al (2000) argue that not only should line managers own the performance management process but that they should be involved in its design, and only by involving them at this stage will they “buy-in” to the process. Lack of management “buy-in” can potentially frustrate the whole purpose of a performance management system, leading to an inability to meet short-term goals as well as failure to address longer term developmental opportunities (Weeks, 2005)
Lohr (1981) had stated that even Abraham Taylor (1856-1915) widely regarded as the father of Scientific Management in his legendary thesis on performance improvement in organizations had recognized the negative influences of groups on performance and sought to break-up informal group activities through spatial and work-flow designs and individual piece rate systems of pay.
Research of Leena Toppo, Twinkle Prusty (2012) informs that performance appraisal and performance management were one of the emerging issues since last decade. Many organizations have shifted from employee’s performance appraisal system to employee’s performance management system. This paper has focused to study the evolution of employee’s performance appraisal system, critics the system suffered and how the performance management system came to the practice. The main purpose of this paper is to differentiate these two systems, employee’s performance appraisal and management system. This paper uses a review of the literature to evaluate the development of appraisal system and argues the critic areas of appraisal system. Performance management eliminates the shortcomings of performance appraisal system to the some extent
CHAPTER–5 DATA ANALYSIS & INTERPRETATION
(1) Gender : What is the percentage of male and female category
TABLE 1 Sr.
Gender
Frequency
No.
Percentage (%)
1.
Male
52
87
2.
Female
08
13
Total
60
100
gender 13%
male
female 87%
Interpretation : From the above table, 87% of employees lies under the male category and 13% employees lies under the Female category. Majority of the employees lies under the Male category.
(2) Experience : How many years of experience the respondents have ?
Sr. No
Job Experience
Frequency
Percentage (%)
1
Less than one year
04
7
2
2-10 years
34
56
3
More than 10 years
22
37
Total
60
100%
TABLE: 2
job Experience 7% 37% less than one year 56%
2-10 year more than 10 year
Interpretation : From the above table, 56% of the respondents have work experience of 2-10 years, 37% of the respondents have work experience of more than 10 years, and 7% of the respondents have work experience of less than one year. Majority of the employees in the organization have a work experience of 1-5 y
Response 13%
YES NO 87%
interpretation : From the above table, 87% respondents are in favour of organization operate formal performance management system, 13% respondents are not in favour of organization operate in formal performance management system.
4) Performance evaluation How many percentage of people are satisfied about performance evaluation of current performance of management system?
TABLE :4 Sr. No
Particulars
Frequency
Percentage (%)
1 2 3 4 5
Very Satisfied Satisfied Neutral Unsatisfied Very Unsatisfied Total
52 00 00 08 00 60
87 00 00 13 00 100%
PERFORMANCE 0% 0%
0% 13%
very satisfied satisfied neutral 87%
unsatisfied very unsatisfied
Interpretation : From the above table, 87% respondents are very satisfied about performance evaluation of current performance management system, 13% respondents are unsatisfied about performance evaluation of current performance management system.
(5) Development planning How many percentage of respondents are very satisfied about development planning of current performance of management system?
TABLE :5 Sr. No
Particulars
Frequenc y
Percentage (%)
1 2 3 4 5
Very Satisfied Satisfied Neutral Unsatisfied Very Unsatisfied Total
50 02 00 08 00
83 3 00 14 00
60
100%
development planning 0% 3% 0%
14%
very satisfied satisfied neutral 83%
unsatisfied very unsatisfied
Interpretation : From the above table, 83% respondents are very satisfied about development planning of current performance management system, 3% respondents are satisfied about development planning of current performance management system, 14% respondents are unsatisfied about development planning of current performance management system. Majority respondents are very satisfied about development planning of current performance management system
(6). 360 Degree Feedback :
How many percentage of respondent are very satisfied and neutral about 360 degree feedback of current performance management system ?
TABLE :6 Sr. No 1 2 3 4 5
Particulars Very Satisfied Satisfied Neutral Unsatisfied Very Unsatisfied Total
Freque ncy 42
Percentage (%)
08 08 02 00
14 13 03 00
60
100%
70
development planning 0% 3% 0%
14%
very satisfied satisfied neutral 83%
unsatisfied very unsatisfied
S Interpretation : From the above table, 70% respondents are very satisfied about 360 degree feedback of current performance management system, 14% respondents are satisfied about 360 degree feedback of current performance management system, 13% respondents are neutral about 360 degree feedback of current performance management system. Majority of respondents are very satisfied about 360 degree feedback of current performance management system. 37
Interpretation : From the above table, 70% respondents are very satisfied about 360 degree feedback of current performance management system, 14% respondents are satisfied about 360 degree feedback of current performance management system, 13% respondents are neutral about 360 degree feedback of current performance management system. Majority of respondents are very satisfied about 360 degree feedback of current performance management system. 37
Interpretation : From the above table, 70% respondents are very satisfied about 360 degree feedback of current performance management system, 14% respondents are satisfied about 360 degree feedback of current performance management system, 13% respondents are neutral about 360 degree feedback of current performance management system. Majority of respondents are very satisfied about 360 degree feedback of current performance management system. 37
Interpretation : From the above table, 70% respondents are very satisfied about 360 degree feedback of current performance management system, 14% respondents are satisfied about 360 degree feedback of current performance management system, 13% respondents are neutral about 360 degree feedback of current performance management system. Majority of respondents are very satisfied about 360 degree feedback of current performance management system. 37
Majority of respondents are very satisfied about 360 degree feedback of current performance management system. 37
Interpretation : From the above table, 70% respondents are very satisfied about 360 degree feedback of current performance management system, 14% respondents are satisfied about 360 degree feedback of current performance management system, 13% respondents are neutral about 360 degree feedback of current performance management system. Majority of respondents are very satisfied about 360 degree feedback of current performance management system. 37
implemented it can change the course of growth and pace of impact of organizations. If people do not perform organizations don't survive. If people perform at their peak level organization can compete and create waves. In the past organizations as well as the HR function have wasted a lot of time by wrongly focusing on performance appraisals rather than performance management.
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