THE EFFECTIVENESS OF PERFORMANCE MANAGEMENT

(A STUDY AT ARDEE & CO MANUFACTURING OF METALS PVT. LTD.,

CHENNAI)

PROJECT REPORT

(A Report Submitted in Partial Fulfillment of the Requirements for the Degree of

Master of Business Administration in Pondicherry University)

Submitted by

Mr. HARISH .V

Enrolment No: 0802390240

MBA: HUMAN RESOURCE MANAGEMENT

DIRECTORATE OF DISTANCE EDUCATION

PONDICHERRY UNIVERSITY
PONDICHERRY - 605014

(2008 - 2010)
 CERTIFICATE OF THE GUIDE

This is to certify that the Project Work titled “THE EFFECTIVENESS OF

PERFORMANCE MANAGEMENT (A study at ARDEE & Co manufacturing of
metals Pvt. Ltd., Chennai)” is a bonafide work of Mr.HARISH.V Enroll No:
0802390240 carried out in partial fulfillment for the award of Degree of
MBA HRM of Pondicherry University under my guidance. This project work is
original and not submitted earlier for the award of any degree / diploma or
associateship of any other University/Institution.

Signature of the guide

Name and Official Address of the

Guide

Guide’s Academic Qualifications,

Designation and Experience

Place:
Date:
 STUDENTS’ DECLARATION

I, Mr. HARISH.V hereby declare that the Project Work titled “THE
EFFECTIVENESS OF PERFORMANCE MANAGEMENT (A study at ARDEE
& Co manufacturing of metals Pvt. Ltd., Chennai)” is the original work done by me
and submitted to the Pondicherry University in partial fulfillment of requirements for
the award of Master of Business Administration in HUMAN RESOURCE
MANAGEMENT is a record of original work done by me under the supervision
of Mr. Simon Joseph Professor of Loyola College.

Enroll No: 0802390240

Date :

Signature of the student

 13th April 2010

To Whom It May Concern :

This is to certify that Mr. V. Harish who is a final year management student with
Pondicherry University has done his project on “Effectiveness of Performance
Management” with ARDEE & Co manufacturing of metals Pvt. Ltd., Chennai from
the 11th of January 2010 to 14th April 2010.

During his stint with us, we found his character and conduct upto our level of
satisfaction.

Regards,

J. Subramanian
Head – Human Resources
 ABSTRACT

Performance Management is a systematical and data – oriented approach to

manage people at work that relies on positive reinforcement as the major way to
maximize performance.

The Performance Management process begins with the analysis and

description of the job. The performance manager identifies essential functions of the
job description and the strategic mission and goals of the department or organizational
unit. Standards of minimum acceptable performance are developed for the position
with the employee. Additionally, standards for performance which exceeds
expectations may be set to encourage the employee to strive for even better results.

The study, survey is conducted to assess the Performance Appraisal of the

Company. ARDEE & Co Manufacturers of chemicals treatment - Chennai club
ventured it self into a manufacturing industry.

This study will try to trace out all the problems related to the performance of
the employees and tries to bring out a good Performance Appraisal System.

The study creates awareness among the employee about performance appraisal
and attain productivity.

The Manufacturer industry is characterized by many critical factors like

monotony of work, mental stress, high level of change and so on. This study tries to
analyze each of these factors and tries to develop a good relationship between each
and every factor to establish a good Performance Management system.

The study takes into account every aspect of each and every individual’s
performance and the employee’s view on the current appraisal system followed in the
company.
 A more refined Performance Appraisal system, which tries to attain maximum
level of satisfaction by the employees, is proposed.

The results and findings bring about the company’s present managerial practices with
regard to the performance and states that it precedes in fine manner. The employees
are fully satisfied and they except improvement, which the company can execute. As
per the study, the company can make it ‘The Best’ by instigating the suggestions and
recommendations in their Performance Management.

The researcher has personally experienced the practical exposure on the corporate
practices and how the management theories, which he studied during the course, have
been put into practices. Also the analysis taught him how the manpower can be
properly utilized for a best Performance Management.
 ACKNOWLEDGEMENT

I wish to express my deepest sense of gratitude to the Co-ordinator Mr. Xavir for
providing me this excellent opportunity.

I am immensely grateful to Mr. J. Subramanian Head – Human Resources, ARDEE &

Co manufacturing of metals Pvt. Ltd., Chennai who allowed me to carry out my
project work in his organization successfully.

I also express my deepest sense of gratitude to my Guide, Professor Simon Joseph for
his expert guidance and encouragement with constant motivation in making this
project a success.

Finally, I am happy in specially thanking my colleagues, Friends, and Well – Wishers

for their constant support and Cooperation throughout the project.
 CONTENTS

S.NO TITLE PG.NO

Introduction
I 1

II Statement of the Problem

Scope
III Objective
Need for the Study

IV Review of Literature

Methodology and Limitations of Study

5.1 Research Design
5.2 Data Source
V 5.3 Research Approach / Instrument
5.4 Sample Design
5.5 Statistical Tools
5.6 Limitations of the Study

VI Company Profile

VII Analysis and Interpretation

VIII Findings

IX Suggestions

X Conclusion

Bibliography

Appendices
 LIST OF TABLES AND FIGURES

S.No. Title Page No.

1. Age group of respondents
2 Gender of the respondents
3. Marital status of the respondents
4. Educational qualification of the respondents
5. Work Experience of the respondents
6. Income Range of the respondents
7. Respondents on Department wise
8. Respondents on Designation wise
Respondent’s view on the Individual Objective
9.
Setting
Agreement of the respondents on the outcome of the
10.
objectives
11. The agreement level of respondents on their Job
12. The frequency of the Performance Appraisal Program
The preference ranking of the criterion level of
13.
Assessing the performance of the employees
14. The purpose of the Performance Appraisal Program
The extent of Self-Development by the Performance
15.
Appraisal Program
The agreement level on the implication of
16.
Performance Appraisal System
The awareness of the usage of the Appraisal Data by
17.
the HR Department
The kind of remedial measures taken based on the
18.
Performance Appraisal Program
19. The agreeableness of the Performance – Related Pay
The respondent’s receipt of the Performance –
20a.
Related pay
Table represents the kinds of Performance Related
20b.
Pay
21a. The existence of Periodic Review
21b. The frequency of Periodic Review
Satisfaction Level of Performance Management
22.
System
 LIST OF STATISTICAL TOOLS

STATISTICAL TOOL PURPOSE PAGE NO.

To establish if there is significant

difference between the agreement
ONE WAY ANOVA levels of the respondent towards
various criteria on the job.

The preference ranking of the

KOLOGROV-SMNROV criterion level of Assessing the
TEST performance of the employees

To find if there is any association

between Analytical ability and
RANK CORRELATION
Technical Ability

The agreement level on the

implication of Performance Appraisal
LIKERT SCALE
System

To establish if there is significant

difference between the agreement
level of the respondent towards the
ONE WAY ANOVA
various criteria on the implications of
Performance Appraisal System
CHAPTER – I
 I INTRODUCTION

Performance Management is a systematical and data-oriented approach to manage

people at work that rules on positive reinforcement as the major way to maximize
performance.

The Performance Management process begins with the analysis and description of the
job. The performance manager identifies essential functions of the job description and
the strategic mission and goals of the department or organizational unit. Standards of
minimum acceptable performance are developed for the position with the employee.
Additionally, standards for performance, which exceeds expectation, may be set to
encourage the employee to strive for even better results.

Throughout the appraisal period (typically one year), the performance manager
observes and provides behavioral feedback on the performance of the employee
following on the helping the employee to achieve successful performance. At the end
of the appraisal period, and in collaboration with the employee, the performance
manager prepares, writes, delivers and them produces a final copy of the written
performance appraisal.

At any point in the process, the employee and performance manager may identify
needs and create a plan for employee education, training or development in job or
career – related areas.

The issues related to performance management of teams and team members arise out
of the variety of reporting relationships and degree of independent responsibility that
teams and exercise, as well as, the need to reinforce team values and efforts without
undercutting individual responsibility.

Adaptation of performance management process with team in mind may be made

which are consistent with firm policy and procedures.
 Methods of Performance appraisal

Traditional Methods Modern Methods

1. Straight ranking method 1. Assessment centre

2. Man to man comparison method 2. Appraisal by result (or)
management by
objectives
3. Grading 3. Human asset accounting
Method
4. Graphic rating scales 4. Behaviorally achieves
rating
Scales
5. Forced choice description method
6. Forced distribution method
7. Check lists
8. Free form essay method
9. Critical incidents
10. Group appraisal
11. Field review method.

The Evaluation Process

Establish performance standards

Communicate performance expectations to employees

Measure actual performance

Compare actual performance with standards

Discuss the appraisal with the employee

If necessary, initiate corrective actions.

 Item Former Emphasis Present Emphasis

Terminology Merit rating Employee appraisal

Purpose Determine qualification Development of the

forwage increase, transfer, individual ; improved
promotion, lay-off performance on the job ;
and provided emotional
security

Application For hourly – paid worker For technical, professional,

and managerial employee

Factors rated Heavy emphasis upon Results, accomplishment

personal traits performance

Techniques Rating scales with Mutual goal – setting,

simphasis upon scales, critical incidents ; group
statistical manipulation of appraisal ; performance
data for comparison standards ; less quantitive
purposes,

Post – appraisal interview Superior communicated Superior simulates

his rating to employee and employee to analyse
tries to sell his evaluation himself and set own
to him ; seeks to have objectives in line with job
employee conform to his requirements superior is
view helper
 Evaluation and detailed job description

Defined performance standards

Development of coaching and
Counseling skills Evidence of actual performance

Management of marginal
Development

Job Performance
Assessment

Appraisal Intative and

Performance target setting
Development

Action Planning

How, when and what way targets 1. A mutual proc

Are to be met staging of targets to be between
appraisal
Achieved and appraise

2. Neutral and
objective
Distinguish between personal and
Organizational 3. Balance between
positive
And Negative aspects

A) Target should be realistic and

attainable
CHAPTER II
 II STATEMENT OF THE PROBLEM

The study, survey is conducted to assess the Performance Appraisal of the

Company. ARDEE & Co manufacturing of metals Pvt. Ltd., has ventured itself into
the Manufacturing Industry.

Manufacturing industry is characterized by high rate of attrition. This study

will try to trace out all the problems related to the performance of the employees and
tries to bring out a good Performance Appraisal System.

The study tries to find out the percentage of the employees who are unaware
of the Performance Appraisal policy followed by the company.

The Manufacturer industry is characterized by many critical factors like

monotony of work, mental stress, high level of change and so on. This study tries to
analyze each of these factors and tries to develop a relationship between each and
every factor to establish a good Performance Management system.

The study takes into account every aspect of each and every individual’s
performance and the employee’s view on the current appraisal system followed in the
company.

A more refined Performance Appraisal system, which tries to attain maximum

level of satisfaction by the employees, is proposed.
CHAPTER III
Scope :

To explore the nuances, and utilization of performance management and appraisal

with a futuristic perspective.

To methodically analyse and disseminate the collected data and relate it to the
identification and solution to complex problems pertaining to the arena.

Objective :

1. To study the general view of the employee towards the performance

management practice.
2. To study the level of employee’s awareness on the appraisal program.
3. To study the effectiveness of the performance.
4. Management and suggest necessary measurers.
5. To find the various parameters based on which the employees are assessed in
the organization.
6. To find out the awareness level and the activities involved in Succession
Planning.
7. To find out the level of satisfaction with reference to the performance
management system.

NEED FOR STUDY

The company has been using performance management for quite some time, there
was a need for analyzing the present situation and the changes required in this aspect
by the employees. This study was undertaken to find out the change in preferences
and requirements of performance management.

Even though the company is doing well in its activities, this study is made to locate
the weaker areas in which the company is lacking and strengthening them in future.
CHAPTER IV
 IV REVIEW OF LITERATURE

The Literature available in the area of Performance Management and related subjects
has been reviewed selectively with a view to get an inoght into the Performance
Management. This review has facilitated selection of specific area for the study and
also in fixing the scope and objectives of the study. A brief account of the important
literature is given below.

Gary dessler has evaluated the Bank concept in Performance Management and
appraisal

a) All companies have some formal (or) informal mean of appraising their
employee’s performance.
1. Setting work standards
2. Assessing the employee’s actual performance relative to those
standards.
3. Providing feedback to the employee with the aim of motivating
him or her to eliminate performance deficiencies or to continue to
perform above par.

b) Performance appraisal evaluating an employees current and / or past

performance relative to his or her performance standards/
c) Performance Management a process that consolidates goal setting,
performance appraisal, and development into a single, common system, the
aim of which is to ensure that the employees performance is supporting the
company’s strategic aims.

Performance Management is the process that translates business objectives into

individual targets for the coming defined period and evaluated the person’s
performance over the previous period. The process includes:

1. Evaluating contribution against business objectives and demonstrated values

over the previous period.
2. differentiating in performance through calibrate ratings.
3. Aligning personal objectives with business objectives for the coming period.
4. Assessing required competencies and values.
 5. Identifying opportunities for people development.

The Performance Management process results in redefined key areas of

responsibilities, SMART – individuals targets and development needs.

Key aspects of the performance management process able.

a. Performance management policy and tools

b. Setting and evaluating individual targets.
c. Evaluating demonstrated and required competencies and values.
d. Defining developments needs.
e. Calibration process
f. Process monitoring and improvement planning.

Luis I Gomez – mejics have stated the challenges to effective performance

management in their 3rd edition and explain.

Flow managers ensure accurate measurement of work performance? The primary

means is to understand the barriers that stand in the way. Managers contract at least
five challenger in his area:

1. Rates errors and bias

2. The influence of liking
3. Organizational politics
4. Whether to focus on the individual or the group
5. Legal issues.

C.B. Manorics and S.V. Ganker have studied importance and purposes:

Performance appraisal has been consider as a most significant and indispensable tool
toran organization, for the information it provides is highly useful in making decision,
regarding various person aspect such as promotions and merit increases. Perform
measures also link information gathering and decision-making processes which
provide a basis for judging the effectiveness of personnel sub-divisions such as
recruiting, selection, training and compensations. Accurate information plays active
role in the organization as a whole. They help pinpoint work areas in the primary
systems (eg., Marketing, finance and production). It is earier for managers to see
which employees need training or counseling, because jobs are grouped by categories
(e.g., production foreman, salesman, financial analyzer etc.,). These categories can be
broken into small and smaller groups if necessary. If valid performance date are
available, timely, accurate, objective, han derdised and relevant, management can
maintain consistent promotions and compensation policies throughout the total
system.

M.C. Gregor says:

Little evidence of a Performance Management policy or process that supports

management and employees to improve individual and business performance.

Managers are provided with elementary tools (at least a form) to review the
performance of employees. The Performance management process is partly linked
with business objectives. Performance review is on an adhoc basis. Personal
development issues may be part of the discussion mainly a paper process and it is
linked to some of the business objectives.

Managers have yearly performance appraisal meeting with their staff. Usage is mean
red, but not enforced. Guide lines and formal appraisal forms are available. Basic
training is made available to support management to execute the process. Managers
are encouraged to link the outcome of the performance review to differentiate in
reward & recognition using. Some basic rules and regulations.

A basic policy on performance management is available. A yearly performance

appraisal process and tools are complemented through the organization. Individual –
and team target and performance reviews are connected to business objectives or to
key business performance indicator (like business balanced scorecard) that are
relevant for realigning long term and short term objectives. Performance management
measurement process is applied to differentiate between different perform levels.
Performance management process focuses on personal development. At least annually
actions and targets for self-development are agreed. Use of the performance appraisal
process is measured and relevant key performance indicators are in place.

The performance review is used to formulate specific evaluation statements,

identifying developments opportunities. Targets are formulated SMART

S  Specific
M  Measurable
A  Ambitions
R  Realistic
T  Time-bound

Management calibrates performance in accordance with the policy and takes

appropriate action based on performance scores. There is a formal reward and
recognition process in place and this is closely related to the performance
management process. The linkage between performance management and reward Mr.
PC Tripathi evaluated the implementation of the performance appraisal and merit
rating is one of the oldest and most universal practices of management. If refers to all
the formal procedure used in working organizations to evaluate the personalities and
contribution and potential of group members. Modern management makes some what
less use of the term ‘merit rating’ than what was common in earlier periods. In the
past emphan’s used to be on the evaluation of merits of an individual – his worth as a
person. The approach resulted in an appraisal system in which the employees merits
like initiative, dependability, personality, etc. Where compared with others and ranked
or rated.

‘Alistain Gold Smith’, ‘Dennis Nickson’, ‘Donald – Slo’, ‘Roy.C.Wood’, have

analysed the importance of reward oriented appraisal system, some effort is made to
establish a link between job and job-holder performance, and pay and other reward.
As one might expect, the nature of such linker are often contentions and controversial.
A survey of seven cases studies by the independent research organization income data
services (IDS) (1989) produced the following performance factors which are often
appraised.

1. Job knowledge and abilities – being able to reform in all aspects of a job to a
reasonable standard
2. Quality of outputs – including attention to detail and consistency in quality of
out put.
3. Productivity – individual work rates and outputs.
4. Attitude to work in terms of commitment, enthusiasm and apparent
motivation.
5. General demeanors and conduct – interms absences and reasons for absences
and overall punctuality.
6. Supervisory qualities – whether there is an ability to work independently and a
capacity to offer leadership to others.
7. Perceptual and anticipatory qualities – including a ability to interpret and
anticipate job requirements a demonstrate originality in problem – solving.
8. Co-operativeness and area oration – with other workers in a team oriented
environment.
9. Resources utilization – an ability to set persons priorities and plan and
organize work schedules.
10. Performance against targets – the most obvious measure, involving the level of
attainment of the employee.
CHAPTER V
 V METHODOLOGY AND LIMITATIONS OF STUDY

Research could be understood as an organized activity with specific focus / objectives

on a problem or issue supported by compilation of related tools of analysis and
deriving logically sound inferences based on originally. It is an “Organized inquiry”.

Research Methodology is a way to systematically solve the research problem. In

research methodology we study the various steps that are adopted generally by a
researcher in studying his research problem along with the logic behind them.
Research also need to understand the assumptions underlying the various techniques
and they need to know the criteria by which they can decide that certain technique and
procedures will be applicable to certain problems and others will not.

The objectives of the research could be

1. It develops focus
2. It reveals characteristics
3. It determines frequency of occurrence
4. It tests hypothesis

The method used to collect data in questionnaire method.

 5.1. RESEARCH DESING

The conceptual structure within which research would be conducted is called

Research Design. Research Design is purely and simply the framework or plan for a
study that guides collection and analysis of the data for study that guides the
collection and analysis of data.

A Research Design could also be defined as the blue print specifying every stage of
action in course of research. Research Design is the arrangement of the collection and
analysis of data in a manner that aims to combine relevance to the research purpose
with economy in procedure.

Research Design is s purposeful scheme of action proposed to be carried out in a

sequence during the process of research focusing on the management problem to be
tackled.

Research can be approached in 4 ways

1. Historical Approach
2. Descriptive Approach
3. Case study Approach
4. Experimental Approach

Descriptive research design approach

In this approach, a problem is described by the researcher using Questionnaire or

Schedule. This research enables a researcher to explore new areas of investigation. A
researcher develops his hypothesis based on his knowledge about the subject matter of
study. When this approach is adopted, the researcher should be intelligent and alert to
elicit the information required from the respondents as accurately as possible.

Descriptive research design is concerned with research studies with a focus on the
portrayal of the characteristics of a group or individual or a situation. The main
objective of such studies is to acquire knowledge. Similarly, such studies are used to
examine the characteristics of the corporate sector or consumer behavior.

Descriptive study is a fact-finding technique with adequate interpretation. It has focus

on particular aspects or dimensions of the problem studied. A descriptive study aims
at identifying the various characteristics of a community or institution or problem to
study. A descriptive study also aims at a classification of a range of elements
comprising the subject matter of study.

Merits:

1. This research helps to test the conclusions and findings arrived on the basis of
laboratory studies.
2. It focuses directly on theoretical point.
3. It can highlight important methodological aspects of data collection
interpretation.
4. Direct contact between the researcher and the respondent is brought about in
this approach.
5. With the possibility of the direct contact with the respondent, the researcher is
able to elicit all the relevant information and eliminate irrelevant facts.

The researcher has selected this approach because the research is concerned on very
fragile and cognizant area which will have severe impact to all, the management,
employees and customers. A careful research has been carried out with employees by
the researcher.

5.2 DATA SOURCE

Data refers to information or facts. Often researchers understand by data only

numerical figures. It also includes descriptive facts, non-numerical information,
qualitative and quantitative information. The sources of data can be from Primary and
Secondary data.
Primary Data :

Primary data is known as the data collected for the first time through field study. Such
data collected with specific set of objectives to assess the current status of any
variable studied. The researcher has collected the primary data using the questionnaire
by paying individual attention.
Secondary Data :

Secondary data is known as the data collected from the already existing information
through references. Such data collected can be utilized to have in-depth study into the
concept taken for research. The researcher has collected the secondary data from the
Company profiles, Journals, Books and Websites. A fanatical knowledge has been
employees to draw the obligatory and germane data.

5.3 RESEARCH APPROACH / INSTRUMENT

The research was approached by way of Questionnaire through which the researcher
can draw the results by keeping all relevant areas of study.

Questionnaire

A questionnaire is a schedule consisting of a number of coherent and formulated

series of questions related to the various aspects of topic under study. In this method a
pre-printed list of questions arranged in sequence is used to elicit response from
informant. The questionnaire has been framed by covering almost the key concepts to
bring about lucid results.

The form of questions could be Open Ended and Close Ended. The researcher framed
most of the questions in close ended form.
 5.4 SAMPLE DESIGN

Sampling :

A sample is a small specimen or a separated part of the whole question., representing

its general qualities, as far as possible. The term Sampling refers to the investigation
part of the whole population.

Sampling Methods

The sampling could be

SAMPLING

RANDOM SAMPLING NON – RANDOM

SAMPLING

Simple Random Quota Sampling

Sampling

Convenience Sampling
Stratified Random
Sampling
On – the – spot
Systematic Sampling Sampling

Cluster Sampling

Sequential Sampling

Multi – Stage
Sampling
Convenience Sampling

When a sample is drawn according to one’s own conscience without any systematic
method, it is known as Convenience sampling. Though this method is unscientific and
the results may not be accurate it may throw light on some important aspects of the
study. As the company is engaged in serious and continuous job, the researcher used
convenient sampling, but the sample contains ubiquitous coverage of the employees.

Samples Size:

Sample Size is the constant drawn out of population. The sample size of the research
is 100.

Sampling Frame:

It is the list of population elements from which the sample is drawn. The sample has
been carefully framed from the employees of the factory of all categories and
designates.

Period of Study:

The research was done for 3 months in a period between January’05 and March’05.

Field Work:

The researcher had the preliminary study on the management activities and the
employees’ postures. Then a questionnaire was so prepared that is covers the study
within the company’s constraints. A sophisticated and well-designed sample was
drawn and data collected through the questionnaire from the sample with individual
attention.
 5.5 STATISTICAL TOOLS

For the research the following statistical tools have been used.

1. One-way ANOVA
2. Rank Correlation
3. Likert Scale
4. Kolmogrov – Sminrov Test

1) One-Way ANOVA

It is a statistical technique designed to test whether the means of more than 2

qualitative populations are equal where data are classified under one criterion.
Hypothesis consists of classifying and cross-statistical results and test whether the
means of a specified classification differ significantly.

Steps

a. Set up Null Hypothesis H0.

b. Find ‘T’, the total sum of all items of various samples given in the data.
c. Find the Correction Faction CF = T2 / n, where n is the total number of items
in the data.
d. Find the sum of squares of all items and find its total. Subtract it from the CF,
which gives sum of squares of deviations for total variance.
e. Find sum of squares between samples.
f. Find sum of squares within the samples.
g. Construct analysis of variance table.
h. Calculate the value F = Variance between Samples / Variance within Samples.
i. Find the tabulated value of F for the given degrees of freedom.
j. If calculated F < Tabulated F, accept null hypothesis and if it reverse reject it.
2) Rank Correlation

Mutual relation between two or more things is called Correlation.

In case of Qualitative data, arrange the variable or individual in the order of merit and
proficiency and arrange ranks and calculate the Rank Correlation Coefficient ‘r’ by
the following formula.

n
6∑di2
i=1

r=1- ________
n(n2-1)

Steps

a. Assign ranks to different values starting with rank 1 for the highest value in
the first series and last rank for the lowest value.
b. Similarly assign rank to the values in second series.
c. Determine the difference in the ranks of corresponding values in the two series
and denote by di, where I = 1, 2, 3, ….n.
d. Apply the formula ‘r’

3) Likert Scale

In Likert scale method, the respondents are asked to indicate on 5 point numeric scale
their degrees of agreement or disagreement with some pre-designed set of statements.
The direction of response scores for an unfavourable statement should be opposite to
the favorable to statement. Thus the Likert scale gathers the intensity of the attitude.
Some of the scores show the overall attitude of the respondent. Sometimes on each
statement, the distribution of the response patterns and formed as aggregations of
individual options. Then usual statistical procedures are employed to study the
response pattern. In general, subject finds it easy to respond.
4) Kolmogrov – Sminrov Test

This test is used for comparing the distribution on an ordinary scale. This test is
concerned with the degree of agreement between the distribution and some special
theoretical distribution. It determines whether the scores in the sample can be
reasonably through to have come from popularized having theoretical distribution.

In this test the tabulated value is calculated by the following formula.

Tabulated value = 1.36 / √n, where n = Greater Size

Calculated value = Maximum value of |O-E| column

5.6 LIMITATIONS OF THE STUDY

1. As the study was conducted only in one manufacturing company, the result
of the study cannot be generalized in other companies.
2. The respondent’s views are bound to have a certain degree of bias because
the study was conducted during the working hours.
3. The time period was too short to find out an alternative measure to
implement the same.
CHAPTER – VI
 VI COMPANY PROFILE

ARDEE manufactures several phosphating systems for light, medium and heavy zinc,
manganese and iron phosphate conversion coatings. These systems meet all current
IS specifications for phosphating, and are easy & economical to use. Also available
are, hot and cold blackening system, chromating system for aluminium and all the
support chemical products for various metal finishing needs.

COMPANY’S PREMIUM PRODUCTS FOR CONVERSION COATING

SYSTEMS

PHOSFINE-Z52 & PHOSFINE-Z41: Nickel activated heavy immersion zinc

phosphating system. Single additive package provides a uniform porous deposit.
Premium performance. Designed for fasteners, nuts, bolts, automotive components,
pulleys, hinges, oil field equipment and other types of assemblies. Also ideal as a
parting medium and lubricant carrier for cold heading, extrusion, rolling and drawing
and forming applications involving items such as rod, wire, and seamless tubing.
Produces a high quality, tight coating. Meets all automotive and military
specifications. Dense coating in the range of 2000-3000 mg/ft2.Meets Class A2 of
IS:3618-1966

PHOSFINE-Z20: Designed to deposit a light zinc/calcium phosphate coating on

ferrous or non-ferrous metals. Provides excellent corrosion barrier, or as a base for
solid film lubricants, for break-in applications and tenacious base for paint adhesion.
An essential pre-treatment system for high quality powder coating applications.
Coating weights in the range of 150-600 mg/ft2. Meets ClassC of IS:3618-1966

PHOSFINE-Z40: similar to Z-20, this process deposits a medium coating weight for
those installations that require both painting and oiling applications. Single additive
make-up and maintenance. Coating weight in the range of 600 to 1200 mg/ft2.Meets
ClassB of IS:3618-1966
PHOSFINE-M11: Heavy manganese phosphating system suitable for providing
corrosion protection on a variety of parts as well as a base for solid film lubricants,
break-in, anti-wear and anti-scuffing applications. Single additive package provides a
uniform porous deposit with a coating weight in the range of 3000-5000 mg/ft2.Meets
Class A1 of IS:3618-1966

FERROPHOS-Z: Single additive make-up and maintenance, iron phosphating

system at room temperature for iron, galvanised steel and aluminium. Degreasing,
derusting & light phosphating - all the 3-in-one operation. Can be used in immersion
or spray applications. Available with 3 grades, proving a complete, easy to use, single
additive product. Provides maximum salt spray protection . Meets Class D of IS:3618-
1966

PHOSFINE-ZC: Cold phosphating system. Designed to deposit an zinc phosphate

coating on ferrous and galvanised steel at room temperature. Fuel saving economic
system for painting pretreatment. Meets Class B/C of IS:3618-1966

PHOSFINE-ZCX: Cold phosphating system. Designed to deposit a heavy zinc

phosphate coating on ferrous and galvanised steel at room temperature. Fuel saving
economic system, coating similar to Phosfine Z 41. Meets Class A/B of IS:3618-1966

PHOSFINE-Z70: Chlorate accelerated zinc phosphating system intended for heavy

wire drawing applications.

FERROBLACK HOT: Black Oxidizing Treatment for ferrous metals and alloys by
hot process operating around 140°C.

FERROBLACK COLD: A Modern low temperature blackening system to

effectively replace conventional hot alkaline system. A single additive, liquid
concentrate which is used at 10 percent by volume in water to blacken carbon steels,
alloy steels, tool steels, as well as cast iron and forged steels at room temperature.

ALUGOLD: Room temperature chromatizing system deposits a light, passive,

golden coloured chromate conversion coating on aluminium and its alloys. A
decorative and anti corrosive finish. An essential pre-treatment system for high
quality powder coating applications.
ALUGREEN: A decorative green finish on Aluminium and its alloys.

OUR PREMIUM RANGE OF SUPPORT CHEMICALS

ALKALINE DEGREASER RD - 1 : Heavy Duty soak cleaner in powder form

mainly for ferrous for efficient removal of heavy oils & greases; used at 90° C.

ALKALINE DEGREASER RD - 2 : Light Duty detergent cleaner in powder form

for ferrous & non-ferrous, mainly recommenced for aluminum; used at 75° - 80° C.

EMULSION CLEANER: For efficient cleaning of ferrous & non-ferrous by wipe,

immersion or spray at room temperature. It functions as efficient and economic hot
spray cleaner by diluting with water to form emulsion; used up to 65° C.

METAL CLEANER : Solvent cleaner for all metals used at room temperature; used
by dip, spray or wipe.

RUSTBAN -120 : Acidic deoxidizing agent for fast derusting of ferrous metals used
at elevated temperatures used at 65° - 85° C.

RUSTBAN - 110 : Acidic rust solvent for use at room temperature and etch cleaner
for aluminum

RUSTBAN - 77 : Inhibited Acidic pre-cleaner with detergent for effective cleaning of

ferrous used from room Temperature upto 65°C

RUSTBAN - 111 : Economic derusting agent for use at room temperature, for faster
cleaning and over all economy.

RUSTEX - A : An efficient pickling agent for removing heat treatment scales and
mill scales from ferrous articles.

DESCALE - X : For efficient descaling of boilers, condensers, heat exchangers etc.;

used up to 65° C.
FINE LUBE : Fatty acid based lubrication powder for use in wire & tube drawing
and all such cold forming processes to facilitate trouble-free cold deformation. Used
after phosphating.

PASSIVEX - A : Chromate based mild acidic passivation concentrate for imparting

additional corrosion resistance for phosphated surface & to counteract the effect of
hardness of water. Used as a final rinse after phosphating and cold blackening
treatments.

DEWATERING FLUID - X 125 : It is used as a post treatment with phosphating,

blackening and in all such finishing systems where immediate removal of water from
components by drying is not possible. It displaces water instantly and gives a very
thin invisible oil film.This treatment must be followed by rust preventive oil
treatment.

ANCOR - 30 : Rust preventive, solvent deposited, type. Dries out within an hour
after application and leaves a thin protective oil film. An ideal oil for use after
phosphating. Used for indoor storage of ferrous articles.

INHIBITOR - H: Acid pickling inhibitor used with hydrochloric acid for efficient
pickling, free from pitting and brittle failures.

INHIBITOR - HH: Similar to COIN-100 but can be used up to 65° C.Used with HCl
in descaling of boilers.

INHIBITOR -S : Highly efficient non-foaming acid pickling inhibitor used in

pickling with sulphuric acid; up to 95° C. Highly stable at all acid concentrations.
Efficient in prevention of hydrogen embrittlement.

INHIBITOR - 123 : A premium performance inhibitor used in oil field acidizing,

descaling of heat exchangers, boilers, where a very high performance and stability at
elevated temperatures are desired. Used with HCl and various organic acids at
temperatures 80-100° C.

UNIWET - 75 : A foaming surfactant for use in pickling acids to prevent acid sprays,
metal pitting and to impart a clean metal surface. Used up to 65° C.
PHOSFINE - MA & PHOSFINE - MB : Activator & grain refiner to be used
together in PHOSFINE - M 11 pre-rinsing bath to build up coating with close
dimensional tolerance.

PHOSFINE ACCELERATOR - A : A chemical in powder form to quicken the

phosphating operation and to lower the temperature of operation. Used in cold and hot
phosphating operations.

ARDEE offers a wide range of phosphating and allied metal finishing &
support chemical products for your metal finishing needs. For further
information on our range of metal finishing and support chemicals or to
discuss your unique requirements, please contact us by phone / fax to 044-
23650610 / 044-23650782 or by mobile to 9940129761 or by e-mail to
doss@vsnl.com or write to ARDEE & CO., 4/34, West Sivan Koil Street,
Vadapalani, Chennai - 600 026, INDIA
CHAPTER – VII
 VII ANALYSIS AND INTERPRETATION

TABLE – 1

AGE GROUP OF THE RESPONDENTS

Age Group No. of Respondents Percentage

Below 25 10 10%

26 – 30 80 80%

31 – 40 3 3%

Above 40 7 7%

Total 100 100%

Source: Questionnaire

Inference:

The maximum respondent of 80% lies in the age group of 26-30 and a minimum of
3% in the age group of 31-40. The other respondents of 10% and 7% lie in the age
group of below 25 and above 40 respectively.

7% 10%
3%

Below 25
26 – 30
31 – 40
Above 40

80%
 TABLE – 2

GENDER OF THE RESPONDENTS

Gender No. of Respondents Percentage

Male 78 22%

Female 22 78%

Total 100 100%

Source: Questionnaire

Inference:

78% of the respondents are Female and 22% are Male.

78
80
60
40
22
20
22% 78%
0
Male Female
 TABLE – 3

MARITAL STATUS OF THE RESPONDENTS

Marital Status No. of Respondents Percentage

Single 57 57%

Married 43 43%

Total 100 100%

Source: Questionnaire

Inference:

57% of the respondents are unmarried and the remaining of 43% are Married

43%

Single
Married
57%
 TABLE – 4

EDUCATIONAL QUALIFICATION OF THE RESPONDENTS

Educational
No. of Respondents Percentage
Qualifications

B.Com / Graduated 22 22%

C.A. Inter 12 12%

MBA 4 4%

CA 61 61%

Others 1 1%

Total 100 100%

Source: Questionnaire

Inference:

The maximum of 61% has acquired CA, and a minimum respondent of 1% fall under
the other category. While 22% has acquired B.Com or graduates and 12% are CA
Inter.

No. of Respondents

1%
22%
B.Com / Graduated
C.A. Inter
MBA
12% CA
61%
4% Others
 TABLE – 5

WORK EXPERIENCE OF THE RESPONDENTS

Work Experience No. of Respondents Percentage

Below 6 months 23 23%

Between 6 – 12 months 63 63%

Between 1 & 2 years 3 3%

Above 2 years 11 11%

Total 100 100%

Source : Questionnaire

Inference :

The maximum of 63% have 6-12 months experience and a minimum of 3% have
between 1 & 2 years of experience. While 11% have more than 2 years of experience
and 23% have below 6 months of experience.

11% 23%
3%
Below 6 months
Betw een 6 – 12 months
Betw een 1 & 2 years
Above 2 years
63%
 TABLE – 6

INCOME RANGE OF THE RESPONDENTS

Income Range No. of Respondents Percentage

Below 10,000 27 27%

10,000 – 20,000 31 31%

20,001 – 30,000 19 19%

30,001 – 40,000 18 18%

Above 40,000 5 5%

Total 100 100%

Source : Questionnaire

Inference :

The maximum of 31% lie in the income range of 10,000 – 20,000 and the minimum
5% lie in the income range of above 40,000. While 19% lie between 20,001 & 30,000
and 18% lie in the range of 30,001 & 40,000.

5%
18% 27%
Below 10,000
10,000 – 20,000
20,001 – 30,000
30,001 – 40,000
19% Above 40,000
31%
 TABLE – 7

RESPONDENTS ON DEPARTMENT – WISE

Department No. of Respondents Percentage

Healthcare 21 21%

PMS 35 35%

Lighting 20 20%

Consumer Electronics 12 12%

Administration 12 12%

Total 100 100%

Source : Questionnaire

Inference :

The maximum of 35% respondents were from PMS and a minimum of 12% in
administration and Consumer Electronics. While 21% are in Healthcare and 20% are
in lighting.

12% 21%
12% Healthcare
PMS
Lighting
Consumer Electronics
20% Administration
35%
 TABLE – 8

RESPONDENTS - DESIGNATION – WISE

Designation No. of Respondents Percentage

Officer – Financial Services 33 33%

Executives 26 26%

Asst. Manager 24 24%

Manager 9 9%

Others 8 8%

Total 100 100%

Source : Questionnaire

Inference :

The maximum of 33% respondents are Officer – Financial Services and minimum of
8% are from other cadre. While 26% are Executives, 24% are Assistant Managers and
9% are Managers.

8%
9% Officer – Financial Services
33%
Executives
Asst. Manager

24% Manager
Others
26%
 TABLE – 9

RESPONDENT’S VIEW ON THE INDIVIDUAL OBJECTIVE SETTING

Setting Individual
No. of Respondents Percentage
Objectives based on

Key Result Areas 23 23%

Performance Standards set 43 43%

Expected Performance
34 34%
development
Others 0 0%

Total 100 100%

Source : Questionnaire

Inference :

43% respondents views are on the Performance Standard set, 34% on Expected
performance development and 23% on the Key result area.

50%
43%
40%
34%

30%
23%

20%

10%

0%
0%
Key Result Areas Performance Expected Others
Standards set Performance
development
 TABLE – 10

AGREEMENT OF THE RESPONDENTS ON THE OUTCOME OF THE

OBJECTIVES

Major Objectives which provides a

No. of
basis for central decision making and Percentage
Respondents
to boost morale

Strongly Agree 33 33%

Agree 66 66%

Disagree 1 1%

Strongly Disagree 0 0%

Total 100 100%

Source : Questionnaire

Inference :

33% respondents fully agree on the concept “Major Objectives which provides a basis
for central decision making and to boost morale”, 66% agree to it and 1% disagree to
it.

70% 66%

60%

50%

40%
33%
30%

20%

10%
1% 0%
0%
Strongly Agree Agree Disagree Strongly Disagree
 ONE WAY ANOVA

Null Hypothesis H0: There is no significance difference between the agreement levels
of the respondent towards the various criteria on the job.

X1 X12 X2 X22 X3 X32 X4 X42 X5 X52

12 144 60 3600 20 400 7 49 1 1

34 1156 52 2704 11 121 3 9 - -

21 441 59 3481 15 225 5 25 - -

25 625 69 4761 4 16 1 1 1 1

34 156 62 3844 2 4 2 4 - -

∑X1 ∑X12 ∑X2 ∑X22 ∑X3 ∑X32 ∑X4 ∑X42 ∑X5 ∑X52
126 3522 302 18390 52 766 18 88 2 2

TOTAL NUMBER OF ITEMS N = 22; TOTAL NUMBER OF CRITERIA n = 5

Step 1:

Total sum of all the items T = ∑X1 + ∑X2 + ∑X3 + ∑X4 + ∑X5

= 126 + 302 + 52 + 18 + 2 = 500

Correction Factor CF = T2 / N = (500)2 / 22 = 11363.6

Step 2:

Total sum of squares

TSS = ∑X12 + ∑X22 + ∑X32 + ∑X42 + ∑X52 – CF

= 3522 + 18390 + 766 + 88 + 2 – 11363.6 = 11404.4

Step 3:

Between Sum of Squares

BSS = (∑X1)2/n + (∑X2)2/n + (∑X3)2/n + (∑X4)2/n + (∑X5)2/n

= 1262 /5 + 3022 / 5 + 522 / 5 + 182 / 5 + 22 / 5 – 11363.6

= 3175.2 + 18240.8 + 540.8 + 64.8 + 2 – 11363.6

= 10660

Step 4:

Error Sum of Squares

ESS = TSS – BSS

= 11404.4 – 10660 = 744.4

Step 5: Anova Table

Source of Sum of Degrees of

Variance F
Variation Squares Freedom

BSS 10660 5–1=4 10660/4 = 2665

2665 / 43.8 =
60.8
ESS 744.4 22 – 5 = 17 744.4/17 = 43.8

From the above table, Calculated value of F = 60.8

Tabulated value of F = 2.96 (For degrees of freedom v1 = 4 ; v2 = 17)

Since the calculated value of F is greater than tabulated value of F, We reject H 0 at

5% level of significance.

Inference :

There is significance difference between the agreement levels of the respondent

towards the various criteria on their job.
 TABLE – 11

THE AGREEMENT LEVEL OF RESPONDENT ON THEIR JOB

T=
NEITHER
CRITERIA / WEIGHTAGE
STRONGLY AGREE HIGHLY
AGREEMENT LEVEL AGREE DISAGREE OF
AGREE NOR DISAGREE
RESPONSE /
DISAGREE
LIKERT SCALE TOTAL
2 1 0 -1 -2 RESPONDENTS
Very High RESPNONSE 12 60 20 7 1
Mental 75 / 100 = 0.75
WEIGHT 24 60 0 -7 -2
stress
Monotony RESPNONSE 34 52 11 3 0
117 / 100 = 1.17
of Work WEIGHT 68 52 0 -3 -
Frequent RESPNONSE 21 59 15 5 0
Updation
96 / 100 = 0.96
of WEIGHT 42 59 0 -5 -
knowledge
High level RESPNONSE 25 69 4 1 1
of team
116 / 100 = 1.16
leaders WEIGHT 50 69 0 -1 -2
assistance
Strong RESPNONSE 34 62 2 2 0
support WEIGHT 68 62 0 -2 -
128 / 100 = 1.28
from sub-
ordinates

Source : Questionnaire

Inference :

The respondents give more weightage to ‘Strong Support from sub-ordinates’ and less
weightage to ‘Very high mental stress’ in the agreement level of their job.

1.4 1.28
1.17 1.16
1.2
0.96
1
0.75
0.8
0.6
0.4
0.2
0
Very High

Monotony

Updation of

assistance

from sub-
knowledge

ordinates
High level
of Work

Frequent

support
Mental

Strong
stress

of team
leaders

T=Weightage of response / Total response

 TABLE – 12

FREQUENCY OF THE PERFORMANCE APPRAISAL PROGRAM

Period No. of Respondents Percentage

Once in 3 months 66 66%

Once in 6 months 11 11%

Once in a year 23 23%

Total 100 100%

Source : Questionnaire

Inference :

For the awareness on the frequency of the performance appraisal program, 66%
responded to once in 3 months, 11% to once in 6 months, 23% to once in a year.

70% 66%

60%

50%

40%

30%
23%
20%
11%
10%

0%
Once in 3 months Once in 6 months Once in a year
 TABLE – 13

THE PREFERENCE RANKING ON THE CRITERION LEVEL OF

ASSESSING THE PERFORMANCE OF THE EMPLOYEES

Kolmogrov – Simnrov Test

Null Hypothesis H0 : There is no significant relationship between the various criteria

for assessing the performance of the employees.

T= WEIGHTAGE
CRITERIA / AGREEMENT II III IV V OF RESPONSE /
LEVEL TOTAL
5 4 3 2 1 RESPONDENTS

Employee RESPNONSE 16 11 24 41 8
286 / 100 = 2.86
Output WEIGHT 80 44 72 82 8
Benefit to the RESPNONSE 10 3 6 12 69
173 / 100 = 1.73
Organization WEIGHT 50 12 18 24 69
Analytical RESPNONSE 13 8 31 30 18
268 / 100 = 2.68
Ability WEIGHT 65 32 93 60 18
Understanding RESPNONSE 41 29 21 8 1
401 / 100 = 4.01
Skills WEIGHT 205 116 63 16 1
Technical RESPNONSE 20 49 18 9 4
372 / 100 = 3.72
Ability WEIGHT 100 196 54 18 4
Total 15

O1 E1 |O1 - E1|
0.194 0.2 0.008
0.117 0.2 0.083
0.163 0.2 0.037
0.272 0.2 0.072
0.252 0.2 0.052

Where E = 1/5 = 0.2

Calculated Value = Highest VALUE = 0.083

Table Value = 1.36 / √n = 1.36 / √100 = 0.136

Since tabulated value > Calculated value, Reject H0.

Inference :

There is significant difference relationship between the various criteria for assessing
the performance of the employees.

4.5 4.01 3.72

4
3.5 2.86
3 2.68
2.5 1.73
2
1.5
1
0.5
0
ty

ty
n
t
pu

ills
io

ili

i li
Ab
at

Ab
ut

Sk
z
O

al
ni

al
ng
ee

tic

ic
rg

hn
nd
oy

y
O

al

ta
pl

c
An
e

Te
Em

rs
th

e
to

nd
fit

U
ne
Be
 RANK CORELATION

As the Analytical Ability and the Technical Ability are closer, we will find whether
there is any linking between them.

x0 Rank xi y0 Rank yi di = xi - yi di 2

13 4 20 2 2 4

8 5 49 1 4 16

31 1 18 3 -2 3

30 2 9 4 -2 3

18 3 4 5 -2 3

Total ∑ di2 32

R(x,y) =1- 6 ∑ di2

Where n = 5
n(n2 - 1)

=1- 6 x 32

5 (52 - 1)

= 1- 192

120

Inference :

Since the rank correlation 0.6 is maximum and also positive, the Analytical ability
and the Technical Ability have a common linking in the employee’s preference level
of assessing the performance.
 TABLE – 14

PURPOSE OF THE PERFORMANCE APPRAISAL PROGRAM

Purpose of the performance

No. of Respondent Percentage
appraisal program

To encourage the employees 49 49%

To promote the employees 21 21%

To identify the strength & weakness of

16 16%
employees
To offer apt training programs to the
7 7%
employees
To satisfy the company’s norms &
7 7%
regulations

Total 100 100%

Source : Questionnaire

Inference :

Maximum of 49% felt that it is to encourage the employees and minimum of 7% felt
it to offer apt training program to the employees and another 7% to satisfy the
company’s norms and regulations. Others 21% felt it is to promote the employees and
16% to identify the strength and weakness of the employees.

Purpose of the performance appraisal program

120%
100%
100%

80%

60% 49%

40%
21%
16%
20% 7% 7%
0%
To encourage To promote To identify the To offer apt To satisfy the Others
the employees the employees strength & training company’s
weakness of programs to norms &
employees the employees regulations
 TABLE – 15

EXTENT OF SELF DEVELOPMENT BY THE PERFORMANCE

APPRAISAL PROGRAM

Extent of Self -
No. of Respondent Percentage
Development
Very great extent 47 47%

Some extent 53 53%

Not at all 0 0%

Total 100 100%

Source : Questionnaire

Inference :

47% had self development by the Performance Appraisal Program to very great extent
and 53% had some extent of self development.

Extent of Self development by Performance Appraisal Program

60%
53%
50% 47%

40%

30%

20%

10%
0%
0%
Very great extent Some extent Not at all
 TABLE – 16

THE AGREEMENT LEVEL ON THE IMPLICATION OF PERFORMANCE

APPRAISAL SYSTEM

CRITERIA / AGREEMENT Neither T = WEIGHTAGE

Strongly Highly
LEVEL Agree Agree nor Disagree OF RESPONSE /
Agree Disagree
Disagree TOTAL
LIKERT SCALE RESPONDENTS
2 1 0 -1 -2
Healthy RESPNONSE 17 78 4 1 0
Discussions
between 111 / 100 = 1.11
WEIGHT 34 78 0 -1 0
appraiser and the
appraise
Identifying the RESPNONSE 17 81 1 1 0
training needs of 114 / 100 = 1.14
WEIGHT 34 81 0 -1 0
the employee
Planning RESPNONSE 29 62 2 7 0
promotional /
113 / 100 = 1.13
incremental WEIGHT 58 62 0 -7 0
schemes
Reviewing RESPNONSE 15 74 6 4 1
various job 98 / 100 = 0.98
WEIGHT 30 74 0 -4 -2
requirements
Obtaining overall RESPNONSE 18 57 23 1 1
feedback about
9 / 100 = 0.9
its functioning WEIGHT 36 57 0 -1 -2
style
Increase RESPNONSE 22 74 2 2 0
Employee 116 / 100 = 1.16
WEIGHT 44 74 0 -2 0
productivity
Comfortable RESPNONSE 23 59 13 2 3
achievement of
100 / 100 = 1
the company’s WEIGHT 46 59 0 -2 -3
target

Source : Questionnaire

Inference :

The respondents give more weightage to ‘Increase employee productivity’ and less
weightage to ‘Obtaining overall feedback about its functioning style’ in the agreement
level.
1.4
1.14 1.13 1.16
1.2 1.11
0.98 1
1 0.9

0.8

0.6

0.4

0.2

0
Healthy Identifying Planning Reviewing Obtaining Increase Comfortable
Discussions the training promotional / various job overall Employee achievement
between needs of the incremental requirements feedback productivity of the
appraiser and employee schemes about its company’s
the appraise functioning target
style
 ONE WAY ANOVA

Null Hypothesis H0: There is no significance difference between the agreement levels
of the respondent towards the various criteria on the implication of Performance
Appraisal System.

X1 X12 X2 X22 X3 X32 X4 X42 X5 X52

17 289 78 6084 4 16 1 1 0 0

17 289 81 6561 1 1 1 1 0 0

29 841 62 3844 2 4 7 49 0 0

15 225 74 5476 6 36 4 16 1 1

18 324 47 3249 23 529 1 1 1 1

22 484 74 5476 2 4 2 4 0 0

23 529 59 3481 213 169 22 4 3 9

∑X1 ∑X12 ∑X2 ∑X22 ∑X3 ∑X32 ∑X4 ∑X42 ∑X5 ∑X52
141 2981 485 34171 51 759 18 76 5 11

TOTAL NUMBER OF ITEMS N = 31; TOTAL NUMBER OF CRITERIA n = 7

Step 1:

Total sum of all the items T = ∑X1 + ∑X2 + ∑X3 + ∑X4 + ∑X5

= 141 + 485 + 51 + 18 + 5 = 700

Correction Factor CF = T2 / N = (700)2 / 31 = 15806.5

Step 2:

Total sum of squares

TSS = ∑X12 + ∑X22 + ∑X32 + ∑X42 + ∑X52 – CF

= 2981 + 34171 + 759 + 76 + 11 – 15806.5 = 22191.5

Step 3:

Between Sum of Squares

BSS = (∑X1)2/n + (∑X2)2/n + (∑X3)2/n + (∑X4)2/n + (∑X5)2/n

= 1412 / 7 + 4852 / 7 + 512 / 7 + 182 / 7 + 52 / 3 – 15806.5

= 2840.1 + 33603.6 + 371.6 + 46.3 + 8.3 – 15806.5 = 21063.4

Step 4:

Error Sum of Squares

ESS = TSS – BSS

= 22191.5 – 21063.4 = 1128.1

Step 5: Anova Table

Source of Sum of Degrees of

Variance F
Variation Squares Freedom

BSS 21063.4 7–1=6 21063.4/6 = 3510.6

3510.6/47 =
74.7
ESS 1128.1 31 – 7 = 24 1128.1 / 24 = 47

From the above table, Calculated value of F = 74.7

Tabulated value of F = 2.51 (For degrees of freedom v1 = 6 ; v2 = 24)

Since the calculated value of F is greater than tabulated value of F, We reject H 0 at

5% level of significance.

Inference :

There is significance difference between the agreement levels of the respondent

towards the various criteria on the implication of the Performance Appraisal System.
 TABLE – 17

AWARENESS ON THE USAGE OF THE APPRAISAL DATA BY THE

DEPARTMENT

Usage of the appraisal data by

No. of Respondents Percentage
the HR department
Yes 86 86%

No 4 4%

Not aware 10 10%

Total 100 100%

Source : Questionnaire

Inference :

86% respondent felt that the appraisal data is being used by the HR Department and
47% felt it is not used and 10% were not aware of the usage.

Usage of Appraisal data by the HR department

100%
86%

80%

60%

40%

20% 10%
4%
0%
Yes No Not aware
 TABLE – 18

KIND OF REMEDIAL MEASURES TAKEN BASED ON THE

PERFORMANCE APPRAISAL PROGRAM

Kind of remedial measures taken based No. of

Percentage
on the performance appraisal program Respondents

Plan unique training programmes 26 26%

Offer effective counseling session 44 44%

Restructuring the performance

10 10%
management system
Re-organizing the company’s expected
7 7%
standards

Others 0 0%

Unaware 13 13%

Total 100 100%

Source : Questionnaire

Inference :

44% felt that performance appraisal program offers effective counseling session, 26%
felt that it plans unique training programs, 7% felt it recognizes the company’s
expected standards, 10% on restructuring the performance management system and
13% were unaware of it.

50%
44%
45%
40%
35%
30% 26%
25%
20%
15% 13%
10%
10% 7%
5% 0%
0%
Plan unique Offer effective Restructuring the Re-organizing the Others Unaw are
training counseling performance company’s
programmes session management expected
system standards
 TABLE – 19

AGREEABLENESS OF THE PREFORMANCE RELATED – PAY

Agreeableness No. of Respondents Percentage

Agree 91 91%

Disagree 9 9%

Total 100 100%

Source : Questionnaire

Inference :

91% respondents were agreeing on the performance – related pay while 9% were
disagreeing on it.

Agreeableness of Performance Related pay

100% 91%

80%

60%
Agreeableness of
Performance Related pay
40%

20%
9%

0%
Agree Disagree
 TABLE – 20a

RESPONDENT’S RECEIPT OF THE PERFORMANCE – RELATED PAY

Received No. of Respondents Percentage

Yes 86 86%

No 14 14%

Total 100 100%

Source : Questionnaire

Inference :

86% respondents were recipient of the performance – related pay while 14% were non
– recipient.

Recipient of Performance - related pay

100%
86%
80%

60%
Recipient of Performance
- related pay
40%

20% 14%

0%
Yes No
 TABLE – 20b

KIND OF PERFORMANCE RELATED – PAY

Kind of Performance-Related Pay No. of Respondents Percentage

Merit Pay 52 52%

Individual Bonuses 1 1%

Team Bonuses 0 0%

Company-wide Schemes 4 4%

Share Schemes 0 0%

Incentive Gifts 12 12%

Skill based pay 30 30%

Others 1 1%

Total 100 100%

Source : Questionnaire

Iference :

52% received merit pay, 30% received skill based pay while other 1% received
individual bonuses, 4% received company-wide schemes, 12% received incentive
gifts and 1% received other benefits.

1% Merit Pay

30% Individual Bonuses

Team Bonuses
Company-wide Schemes
Share Schemes
52%
Incentive Gifts

12% Skill based pay

1% Others
0%
TABLE – 21a
4%
0%
 EXISTENCE OF PERIODIC REVIEW

Existence No. of Respondents Percentage

Yes 96 96%

No 4 4%

Total 100 100%

Source : Questionnaire

Inference :

96% responded on the existence of a periodic review, while 4% responded for non-
existence.

Existence of Periodic review

120%

96%
100%

80%

Existence of Periodic
60%
review
40%

20%
4%
0%
Yes No

TABLE – 21b
 FREQUENCY OF PERIODIC REVIEW

Frequency of periodic review No. of Respondents Percentage

Once in 6 months 30 30%

Once in 1 year 64 64%

Based on Company’s Profit tenure 4 4%

Others 2 2%

Total 100 100%

Source : Questionnaire

Inference :

64% responded that periodic review is conducted once in a year, 30% responded that
it was conducted once in 6 months, 4% responded that it is conducted based on the
company’s profit tenure and 2% as others.

Once in 6 months
4% 2%
30%
Once in 1 year

Based on Company’s
Profit tenure
64% Others

TABLE – 22a
 THE ADOPTION OF SUCCESSION PLANNING

Adoption No. of Respondents Percentage

Yes 83 83%

No 5 5%

Unaware 12 12%

Total 100 100%

Source : Questionnaire

Inference :

83% responded that the succession planning is adopted, whereas 5% responded for
non-adoption and 12% were unaware on succession planning.

100%

83%
80%

60%

40%

20% 12%
5%

0%
Yes No Unaware

TABLE – 22b
 KIND OF SUCCESSION PLANNING

Kind of Succession Planning No. of Respondents Percentage

Periodic Audit of Existing executives 10 12.05%

Implementation of Effective Appraisal

45 54.22%
Plans

Planning of Individual Career Paths 7 8.43%

Organizing of Routine Career

10 12.05%
Counseling
Offering of Accelerated Promotion
6 7.23%
Schemes
Implementation of Planned
5 6.02%
Recruitment Policies

Others 0 0%

Total 100 100%

Source : Questionnaire

Inference :

54.22% responded that Effective Appraisal Plans are implemented, 12.05% each
responded towards Periodic Audit of existing executives and organizing of Routine
Career Counseling. Also 8.43% responded that Individual Career paths are planned,
7.23% responded that Accelerated Promotion Schemes are offered and 6.02%
responded on implementation of Planned Recruitment Policies.

Periodic Audit of Existing

executives

Implementation of
Effective Appraisal Plans

7% 6% 0% 12%
Planning of Individual
12%
Career Paths

8% Organizing of Routine
Career Counseling
55%

TABLE – 23 Offering of Accelerated

Promotion Schemes

Implementation of
Planned Recruitment
Policies
Others
 SATISFACTION LEVEL OF PERFORMANCE MANAGEMENT SYSTEM

Satisfaction Level No. of Respondents Percentage

100% 31 31%
90% 24 24%
80% 18 18%
70% 11 11%
60% 13 13%
50% 1 1%
40% 1 1%
30% 0 1%
20% 0 0%
10% 0 0%
0% 0 0%
Total 100 100%

Source : Questionnaire

Inference :

As per table -23, the satisfaction levels of Performance Management System of

respondent are 31% towards 100% level, 24% level towards 90% level, 18% towards
80%, 11% towards 70%, 13% towards 60% and 1% each towards 50%, 40% and
30%.

Respondents on the Satisfaction Level of Performance Management System

40%

31%
30%
24%

20% 18%
13%
11%
10%

1% 1% 1% 0% 0% 0%
0%
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
CHAPTER – VIII
 VIII FINDINGS

1. The maximum respondent of 80% lie in the age group of 26-30 and a
minimum of 3% in the age group of 31-40. The other respondents of 10% and
7% lie in the age group of below 25 and above 40 respectively. (Ref Table - 1)

2. 78% of the respondents are Female and 22% are Male. (Ref Table - 2)

3. 57% of the respondents are unmarried and the remaining of 43% are Married.
(Ref Table - 3)

4. The maximum of 61% has acquired CA, and a minimum respondent of 1% fall
under the other category. While 22% has acquired B.Com or graduates and
12% are CA Inter. (Ref Table - 4)

5. The maximum of 63% have 6-12 months experience and a minimum of 3%

have between 1 & 2 years of experience. While 11% have more than 2 years
of experience and 23% have below 6 months of experience. (Ref Table - 5)

6. The maximum of 31% lie in the income range of 10,000 – 20,000 and the
minimum 5% lie in the income range of above 40,000. While 19% lie between
20,001 & 30,000 and 18% lie in the range of 30,001 & 40,000. (Ref Table - 6)

7. The maximum of 35% respondents were from PMS and a minimum of 12% in
administration and Consumer Electronics. While 21% are in Healthcare and
20% are in lighting. (Ref Table - 7)

8. The maximum of 33% respondents are Officer – Financial Services and

minimum of 8% are from other cadre. While 26% are Executives, 24% are
Assistant Managers and 9% are Managers. (Ref Table - 8)

9. 43% respondents views are on the performance Standards set, 34% on

Expected performance development and 23% on the Key result area. (Ref
Table - 9)
10. 33% respondents fully agree on the concept “Major Objectives which provides
a basis for central decision making and to boost morale”, 66% agree to it and
1% disagrees to it. (Ref Table - 10)

11. There is significance difference between the agreement levels of the

respondent towards the various criteria on their job.

12. Since the rank correlation 0.6 is maximum and also positive, the Analytical
ability and the Technical Ability have a common linking in the employee’s
preference level of assessing the performance.

13. The respondents give more weightage to ‘Strong Support from sub-ordinates’
and less weightage to ‘Very high mental stress’ in the agreement level of their
job. (Ref Table - 11)

14. For the awareness on the frequency of the performance appraisal program,
66% responded to once in 3 months, 11% to once in 6 months, 23% to once in
a year. (Ref Table - 12)

15. There is significance difference between the agreement levels of the

respondent towards the various criteria on the implication of Performance
Appraisal System.

16. Maximum of 49% felt that it is to encourage the employees and minimum of
7% felt it to offer apt training program to the employees and another 7% to
satisfy the company’s norms and regulations. Others 21% felt it is to promote
the employees and 16% to identify the strength and weakness of the
employees. (Ref Table - 14)

17. 47% had self development by the Performance Appraisal Program to very
great extent and 53% had some extent of self development. (Ref Table - 15)
18. The respondents give more weightage to ‘Increase employee productivity’ and
less weightage to ‘Obtaining overall feedback about its functioning style’ in
the agreement level. (Ref Table - 16)

19. 86% respondent felt that the appraisal data is being used by the HR
Department and 47% felt it is not used and 10% were not aware of the usage,
(Ref Table – 17)

20. 44% felt that performance appraisal program offers effective counseling
session, 26% felt that it plans unique training programs, 7% felt it recognizes
the company’s expected standards, 10% on restructuring the performance
management system and 13% were unaware of it. (Ref Table - 18)

21. 91% respondents were agreeing on the performance – related pay while 9%
were disagreeing on it. (Ref table - 19)

22. 86% respondents were recipient of the performance – related pay while 14%
were non – recipient. (Ref Table – 20a)

23. 52% received merit pay, 30% received skill based pay while other 1%
received individual bonuses, 4% received company-wide schemes, 12%
received incentive gifts and 1% received other benefits. (Ref Table – 20b)

24. 96% responded on the existence of a periodic review, while 4% responded for
non-existence. (Ref Table – 21a)

25. 64% responded that periodic review is conducted once in a year, 30%
responded that it was conducted once in 6 months, 4% responded that it is
conducted based on the company’s profit tenure and 2% as others. (Ref Table
– 21b)

26. 83% responded that the succession planning is adopted, whereas 5%

responded for non-adoption and 12% were unaware on succession planning.
(Ref Table – 22a)
27. 54.22% responded that Effective Appraisal Plans are implemented, 12.05%
each responded towards Periodic Audit of existing executives and organizing
of Routine Career Counseling. Also 8.43% responded that Individual Career
paths are planned, 7.23% responded that Accelerated Promotion Schemes are
offered and 6.02% responded on implementation of Planned Recruitment
Policies.

28. As per table – 23, the satisfaction levels of Performance management System
of respondent are 31% towards 100% level, 24% level towards 90% level,
18% towards 80%, 11% towards 70%, 13% towards 60% and 1% each
towards 50%, 40% and 30%.
CHAPTER – XI
 IX SUGGESTIONS

1. The employees are less aware on their individual objectives. So a proper mean
can be made for them to understand their objectives so that they can do their job
more effectively.

♦ Manufacturing Industry’s attrition rate is very high compared to any

other industry today and the main cause for this high rate of attrition is because
the employees are not sure of their individual objectives, which leads to long-term
growth of the organization.

2. The performance appraisal program is not in detail in the employee’s minds.

Making the employees aware on hem can make appraisal perfect.

♦ Most of the employees were not aware of the frequency or the criteria
used by the organization for assessing the performance level of the employees.

♦ Proper information about the performance appraisal programs of the

organization must be disseminated to the employees during the induction program
conducted by the HR at the time of joining the organization.

3. Organizing workshop and counseling sessions for the employees to motivate

them effectively which will be reflected in the production through efficient
involvement on their job.

♦ Programs for self-development of every employee must be organized

for the employee to work efficiently.

4. The recruitment procedure can also be refined so that only candidates with
effective working skills can be taken.

5. The employees are not fully aware about the activities involved in Succession
Planning.
6. The company must have a complete session with the employees about their
needs and to find out their view on Performance Appraisal.

7. Employees should be allowed to give their suggestions and proper measures

can be taken to fulfill their needs.

8. An effective way of assessing the employees Performance must be present.

9. The company must organize a meeting with all the employees once in every 1
or 2 months to discuss about the various matters and each and every employee
must be informed about the period of review for Performance Appraisal.

10. The employees should also be aware of the basis on which the company
assesses them.

11. Each and every employee from all the levels must be completely aware of the
Individual and the Company’s objectives on the whole.
CHAPTER – X
 X CONCLUSION

The analysis of this research study on “The effectiveness of Performance

Management” in “ARDEE & Co manufacturing of metals Pvt. Ltd., Chennai”, states
that research was done to do an in-depth analysis on the Performance Management.
The objectives set for the analysis were fully consummated.

The results and findings bring about the company’s present managerial practices with
regard to the performance and states that it proceeds in fine manner. The employees
are fully satisfied and they expect improvement, which the company can execute. As
per the study, the company can make it ‘The Best’ by instigating the suggestions and
recommendations in their Performance Management.

The researcher has personally experienced the practical exposure on the corporate
practices and how the management theories, which he studied during the course, have
been put into practices. Also the analysis taught him how the manpower can be
properly utilized for a best Performance Management.
 Bibliography

• Luis I Gomez, David B. Balkin, Robert L. Lardy – Employee Development

Part IV 2004, 3rd edition

• Neale Frances, “Handbook of Performance Management”, 2002 Jaico

Publishing House, Mumbai.

• Robbins Stephen P & Coutler Mary, “Management”, Pentice – Hall of India

Private Limited, New Delhi.

• Gary Dessler – Training and Development of Performance Manager and

Appraisal.

• C.B. Mamoria and S.V. Gankar – Personal Management, 2nd Edition

 QUESTIONNAIRE

A study on the effectiveness of performance management

ARDEE &Co manufacturing of metals Pvt .ltd

Personal details:

1. Name: _____________________

2. Age:
o Below 20
o 21-30
o 31-40
o 40 above

3. Gender:
o Male
o Female

4. Marital status:
o Single
o Married

5. Education:
o Graduate
o Post Graduate
o Others Specify ___________________

6. Work Experience:
o Below 1 year
o Between 1 & 3 years
o Between 3 & 5 years
o Above 5 years

7. Income range (monthly)

o Below 10,000
o Between 10,000-20,000
o Between 20,000-40,000
o Between 40,000- 50,000
o Above 50,000

8. Grade:
o Officer
 o Executive
o Asst. manager
o Senior manager

9. How are the individual objectives set in your firm?

o Based on Key Result Areas

o Based on performance standards set
o Based on the performance development expected
o Others _______

10. Major objectives were to provide a basis for central decision making (about
pay and promotion) and to boost morale

o Fully agree
o Agree
o Disagree
o Fully disagree

11. Please read the following statement and state your agreement level on the
same:

Strongly agree neither agree disagree highly

Agree nor disagree
disagree

Very mental stress ( ) ( ) ( ) ( ) ( )

Monotony of work ( ) ( ) ( ) ( ) ( )

Frequent updating
Of knowledge ( ) ( ) ( ) ( ) ( )

High level of team

Leader’s assistance ( ) ( ) ( ) ( ) ( )

Strong Support from

Subordinates ( ) ( ) ( ) ( ) ( )

Additional Perks ( ) ( ) ( ) ( ) ( )

12. Please mention the frequency of performance appraisal program conducted

in your organization
o Once in 3 month
 o Once in 6 month

o Once in a year

13. According to you, on what parameters should the performance of employees

be assessed in an organization?

o Employee output

o Benefit to the organization

o Analytical ability

o Understanding skills

o Technical ability

14. According to you for what purpose is this performance appraisal system
practiced in your organization?

o To encourage the employees

o To promote the employees

o To identify the strength & weakness of employees

o To offer apt training programs to the employees

o To satisfy the company’s norms and regulations

o Others _____________

15. Does the performance appraisal system lead towards your self-development
in the organization?

o To very great extent

o To some extent

o Not at all

16. Please read the following statement and state your agreement level on the
same

Strongly agree neither agree disagree

highly
 Agree nor disagree
disagree
Healthy discussion between
the appraise and apraisee
developing mutual
understanding between
them ( ) ( ) ( ) ( )
( )

Identify the training needs

Of the employee ( ) ( ) ( ) ( ) ( )

Planning the promotional/

increment schemes ( ) ( ) ( ) ( )
( )

Reviewing various job

requirement obtaining
overall feedback about its
functioning style ( ) ( ) ( ) ( )
( )

Increase employee
productivity ( ) ( ) ( ) ( )
( )

Comfortable achievement of
the company’s target ( ) ( ) ( ) ( )
( )

17. Do you think the H.R department for enforcing various job rotation and job
enrichment techniques in your organization uses the appraisal data?

o Yes
o No
o Not aware

18. What kind of remedial measures are being taken in your organization based
on the performance appraisal program?

o Plans unique training programs

o Offers effective counseling sessions
o Restructuring the performance management system
o Re-organizes the company’s expected standards
o Others_______________________(if any please specify)
o Unaware
19. Many employees support performance –related pay, expecting their pay will
be higher as a result. Do you agree?

o Agree
o Disagree

20. Have you so far received any performance related pay in your organization?

o Yes
o No

If yes, please specify the relevant

o Merit pay
o Individual bonus
o Team bonus
o Company-wide schemes
o Share schemes
o Incentive gifts
o Skill based pay
o Others _______________(if any please specify)

21. IS there any periodic review practiced for the employees in your
organization?

o Yes
o No

If yes please specify the reviewed period

o Once in 6months
o Once in a year
o Based on company’s profit tenure
o Others__________________(if any please specify)

22. On the whole please mention your level of satisfaction with reference to the
performance management system followed in your organization? (Please
encircle your choice)
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
_________

23. Is succession planning adapted in your organization?

o Yes
o No
o Unaware