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AMITY BUSINESS SCHOOL AMITY UNIVERSITY UTTAR PRADESH SECTOR 125, NOIDA - 201303, UTTAR PRADESH, INDIA 2010
DECLARATION
I, Pallavi Dhingra student of Masters of Business Administration from Amity Business School, Amity University Uttar Pradesh hereby declare that I have completed Summer Internship on STUDY OF PERFORMANCE MANAGEMENT SYSTEM AT UFLEX LTD. as part of the course requirement . I further declare that the information presented in this project is true and original to the best of my knowledge.
Date: 16/03/09
Place: Noida
Acknowledgement
The project Title Analysis of Performance Management System at UFLEX LIMITED has been conducted by me during 01/05/10 to 30/06/10 at UFLEX Ltd. My project work has been successfully accomplished due to cooperative efforts of many people.
I am deeply indebted to Mr. Hargovind Kakkar (Faculty of Amity Business School, Noida) for his precious & illustrious guidance offered. His inspiring guidance had always encouraged me and boosted my morale and without him this project could have not been a success. I owe enormous intellectual debt towards my industry guide Ms. Iti Jain, who has augmented my knowledge in the field of my research. They have helped me learn about the process and giving me valuable insight into the organization A special thanks to Mr. Dinesh Jain for giving me the opportunity of association with the organisation. Last but not the least, I feel indebted to all those persons and organization which have helped in the successful completion of this study.
Date: 16/03/09
Place: Noida
MBA( H.R)Clas2011
Acknowledgement. Certificate from the Faculty Guide Certificate from the Industry Guide Executive Summary..
CONTENTS
CHAPTER No. 1 2 TITLE INTRODUCTION OBJECTIVES AND RATIONALE OF THE PROJECT REVIEW OF LITERATURE 3 INTRODUCTION TO THE COMPANY 4 4.1 Company Profile 5 RESEARCH METHODOLOGY 5.1 RESEARCH DESIGN 5.2 RESEARCH TOOLS AND QUESTIONNAIRE 5.3 ACTION PLAN FOR DATA PAGE NO.
6 7
CHAPTER 1 INTRODUCTION
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. Performance management systems if properly designed and implemented can change the course of growth and pace of impact of organizations. 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. Effective performance management requires:
Identifying the parameters of performance and stating them very clearly. Setting performance standards Planning in participative ways where appropriate, performance of all constituents Identifying competencies and competency gaps that contribute/hinder to performance Planning performance development activities. Creating ownership. systematically deciding and communicating what needs to be done (aims, objectives, priorities and targets) a plan for ensuring that it happens (improvement, action or service plans) some means of assessing if this has been achieved (performance measures) information reaching the right people at the right time (performance reporting) so decisions are made and actions taken
A Performance Management System enables a business to sustain profitability and performance by linking the employees' pay to competency and contribution. It provides opportunities for concerted personal development and career growth. It brings all the employees under a single strategic umbrella. Most importantly, it gives supervisors and subordinates an equal opportunity to express themselves under structured conditions. Managing this process effectively isn't easy. It calls for a high level of coordination, channeled information flow, and timely review. Whether employees are at a single place, or spread across multiple locations, the use of technology can help simplify the complete process for more effective information management.
Performance management could be defined as it begins when the job is defined and ends when an employee leaves the company. Between these points, the following should be understood for a working performance management system. Developing clear job descriptions: Job descriptions are the first step in selecting the right person for the job, and setting that person up to succeed Job descriptions provides a framework so the applicants and new employees understand the expectations for the position.
Selection: Jobs have different requirements. This is the process of matching the skills and interests of a person to the requirements of a job. Finding a good job "fit" is exceptionally important. Use of a selection process maximizes input from potential co-workers and the person to whom the position will report.
Providing effective orientation, education, and training. Before a person can do the best job, he or she must have the information necessary to perform. This includes job-related, position-related, and company-related information; an excellent understanding of product and process use and requirements; and complete knowledge about customer needs and requirements.
Providing on-going coaching and feedback. People need ongoing, consistent feedback that addresses both their strengths and the weaker areas of their performance. Effective feedback focuses more intensely on helping people build on their strengths. Feedback is a two-way process that encourages the employee to seek help
Conducting quarterly or annual performance development discussions. If supervisors are giving employees frequent feedback and coaching, performance reviews can change from negative, evaluative, one-sided presentations to positive, planning meetings.
Designing effective compensation and recognition systems that reward people for their contributions: The power of an effective compensation system is frequently overlooked and downplayed in some employee motivation-related literature
Providing promotional/career development opportunities for staff: The supervisor plays a key role in helping staff develop their potential. Growth goals, changing and challenging job assignments and responsibilities, and cross-training contribute to the development of a more effective staff member.
Assisting with exit interviews to understand WHY valued employees leave the organization: When a valued person leaves the company, it is necessary to understand why the person is leaving. This feedback will help the company improve its work environment for people. An improved work environment for people results in the retention of valued staff.
In this research project, I have studied, examined the traditional Performance management scenario of the company, the process, performance appraisal followed and the role of performance management in assessing the performance of the employee and procedure followed by the company for feedback session and the impact of PMS on overall working of Human Resource department and various other departments. In addition to the above, I have also learned about different forms used by the company for the same purpose. I have also suggested that company should design KEY RESULT AREAS for the employees in order for the better and realistic assessment of their performance. THE PROCESS OF PERFORMANCE MANAGEMENT SYSTEM IN THE COMPANY IS AS FOLLOWS:-
WORKMEN
Workmen dont fill the appraisal form it is 90 degree so their performance is only measured by their line manager.
Line manager
Line manager who have all the information about workmen performance, they report direct to unit head regarding individuals performance.
Unit head
Unit Head HOD fills the appraisal form according to report and self judgment, and forwards the same to unit HR, who in turn sends at to corporate HR head.
UNIT HR
Unit HR
Corporate HR discusses the cases. Whenever necessary discuss with Unit head and after finalization, gets the approval from CMD. CORPORATE HR HEAD
Since it is a 90 degree appraisal, every performance of workmen is measured by the line manager who directs the workmen. He is like an immediate boss. Line manager comes below the UNIT HEAD. A good
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number of line managers are directed by UNIT HR. line manager who have all the information about the workmen performance, they report directly to H.R. regarding individual performance. UNIT HEAD fills the appraisal form according to the given ratings, comments, and self judgments are sent to the UNIT HR. He marks the necessary changes in the filled form after his discussion with the UNIT HEAD. Then this is forwarded to the CORPORATE H.R. who in turn discusses each individual case and then gets the final approval from CMD. For salary appraisal & for the promotion if any. Every individual employee is presented with a copy, of his increments signed by CORPORATE HR which is the result of his appraisal. All the finalized forms come to Corporate HR. then Corporate HR send the report of performance measurement to all Appraisee. In that report it is clearly mentioned that The Appraisee appraised in form of promotion, in term of increasing salary, or get some suggestions to improve his performance. If any employee joins before its PMS cycle (Sep to Sep), then it is not included in cycle, Company doesnt count from joining date; it measures employee performance from its decided date.
EMPLOYEE
Fill self appraisal form which is provided by corporate HR at appraisal time, initiate the PM cycle
IMMEDIATE Immediate supervisor gives his rating SUPERVISORon given critical attributes and
comments on employees performance, & report to head of department.
Unit HR
and discuss with HR UNIT on it, then after discussion & verification, forward it to UNIT CEO.
UNIT CEO
CEO, receive all recommendation and finalizes the rating & pass it to corporate HR.
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CORPORATE HR
Receive all recommendation and prepare it with justification for above assessment & takes it to CMD for approval.
CMD
EMPLOYEE APPRAISED
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Corporate HR: in this stage , the Corporate HR is responsible for the final stage, He/She has to provide the final input on the form and he/she also has authority /discretion to replace/remove/change the given ratings to the employee incase he/she is not satisfied with overall comments & ratings provided by the stakeholders. Corporate HR will check and comments and measures it with the rating received by employee. This is the last stage in PMS cycle. The PMS cycle is over here but the PMS work needs to be closed by passing the form to corporate HR Head and finally to the CMD. After this workflow/PMS cycle, the increment/appraisal/promotion is decided.
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CHAPTER-2 OBJECTIVES
To study the process and methods of existing Performance management systems at U flex ltd.
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To trace the drawbacks in prevailing system and suggest the latest methodology with respect to same.
To support in bridging the gap between current performance and desired performance.
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Performance management can be defined as the ongoing communication process that involves both manager and the employee in:
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Identifying and describing essential job functions and relating them to the mission and goals of the organization Developing realistic and appropriate performance standards Giving and receiving feedback about performance Writing and communicating constructive performance appraisals Planning education and development opportunities to sustain improve or build on employee work performance.
Objective of PMS
To confirm the services of probationary employees upon their completing the probationary period satisfactorily To check the effective & efficiency of individuals, teams & organization To effect promotions based on competence and performance To access the training and development needs of the employees To decide upon the pay rise PM can be used to determine whether HR programmes such as selection, training, and transfer have been effective or not.
PMS Includes
Work plan A document that describes the work to be completed by an employee within the
performance cycle, the performance expected, and how the performance will be measured.
Corrective action plan A short-term action plan that is initiated when an employees
performance in order to excel in the current job or prepare for new responsibilities.
expectations, a summary of the employees actual performance relative to those expectations, an overall rating of the employees performance, and the supervisors and employees signatures.
Components of PMS
Performance Standards - establishment of organizational or system performance standards,
targets and goals and relevant indicators to improve public health practice
Performance Measures - application and use of performance indicators and measures Reporting of Progress - documentation and reporting of progress in meeting standards and
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quality improvement in public health policies, programs or infrastructure based on performance standards, measurements and reports.
The essence of the performance management system in organization is to recognize the importance of the employees towards achieving the organizational objectives. The basic requirement for this is that
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the employees personal goals should be perfectly aligned with the vision, mission and the values of the organization. The proposed conceptual framework also underscores the vital role of education, training and development in the envisioned successful organization. In this organization, continuous learning is a prerequisite to successful job performance and organizational effectiveness. Employees must be able to learn work, developing effective technical and people skills in order to assume new responsibilities, and keep pace with and anticipate the changing nature of work and our workplace.
For performance managers and employees, responding to these changes requires the ability to learn, adapt to change, solve problems creatively, and communicate effectively in diverse groups. In addition, employees must take personal and proactive responsibility for their careers to ensure future employability and advancement. The realities of the contemporary workplace will continue to challenge existing paradigms and should be considered in managing the performance of employees in a dynamic working environment.
PERFORMANCE MANAGEMENT SYSTEM Performance management system (PMS) is the heart of any people management process in organization. Organizations exist to perform. If properly designed and implemented it can change the course of growth and pace of impact of organizations. Performance management could be defined as it begins when the job is defined and ends when an employee leaves the company. Between these points, the following should be understood for a working performance management system.
Developing clear job descriptions: Job descriptions are the first step in selecting the right person for the job, and setting that person up to succeed Job descriptions provide a framework so the applicants and new employees understand the expectations for the position. Selection: Jobs have different requirements. This is the process of matching the skills and interests of a person to the requirements of a job. Finding a good job "fit" is exceptionally important. Use of a selection process maximizes input from potential co-workers and the person to whom the position will report.
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Providing effective orientation, education, and training. Before a person can do the best job, he or she must have the information necessary to perform. This includes job-related, position-related, and company-related information; an excellent understanding of product and process use and requirements; and complete knowledge about customer needs and requirements.
Providing on-going coaching and feedback. People need ongoing, consistent feedback that addresses both their strengths and the weaker areas of their performance. Effective feedback focuses more intensely on helping people build on their strengths. Feedback is a two-way process that encourages the employee to seek helpConducting quarterly performance development discussions. If supervisors are giving employees frequent feedback and coaching, performance reviews can change from negative, evaluative, one-sided presentations to positive, planning meetings. Designing effective compensation and recognition systems that reward people for their contributions: The power of an effective compensation system is frequently overlooked and downplayed in some employee motivation-related literature
Providing promotional/career development opportunities for staff: The supervisor plays a key role in helping staff develop their potential. Growth goals, changing and challenging job assignments and responsibilities, and cross-training contribute to the development of a more effective staff member.
Assisting with exit interviews to understand WHY valued employees leave the organization: When a valued person leaves the company, it is necessary to understand why the person is leaving. This feedback will help the company improve its work environment for people. An improved work environment for people results in the retention of valued staff.
There are three important areas that are covered in performance management. These are shown in the diagram below.
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Goals
Key result areas They deal with the outcomes or results managers are responsible to achieve. A KRA refers to a target that needs to be achieved by the appraisee in a given timeKey result areas deal with the ends and not means to them. The word key signifies the vital few results that are important. The results are the things that are intended consequences of the things you do. The word areas means that the results could be made up of clusters of related but specific results. There is no strict limitation but as a thumb rule the managers should have no more than four to five key results areas.K.R.A in the company are identified soon as a person is assigned with certain job role and responsibilities. They are uniquely identified on the basis of intersection of the level of operation & the vertical of operation.KRAs are the set of performance expectations from the appraisee.
Goals Goals are the tools used to achieve the results. Goals are how you turn intentions into action. The dictionary meaning of the goals is the end to which the design tends. To develop this concept let us go back a bit to the vision and mission of the organization and then link it to the goals. The vision that any company has is just like a destination. The vehicle that the company is use to reach this destination is nothing but the mission. The values of the company give a broad direction to journey. The organization should strive hard to reach the destination but never by compromising on the values. The distance covered in the direction of the destination could be the key result area for the organization and the speed of travel, stoppage times, and breakdowns could be the key performance indicators. And the goals will be the path or the road that the organization takes to reach the destination. That is the goal is the intention expressed by the organization to make a positive change in the direction of the long-term vision and mission of it.
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Performance Management in Employee perspective Till now we have seen how the performance management can be used to improve the business processes and to achieve success in moving towards the mission and vision of the organization. Now we will concentrate our effort on performance management in to effectively utilize the human capital that the organization has. We will not discuss the exact performance management framework for the employee performance management because this framework will vary from industry to industry and also from organization to organization. But nevertheless we will discuss how to arrive at the framework in detail. Performance management in the HR perspective. Performance management can be defined as the ongoing communication process that involves both manager and the employee in:
Identifying and describing essential job functions and relating them to the mission and goals of the organization Developing realistic and appropriate performance standards Giving and receiving feedback about performance Writing and communicating constructive performance appraisals Planning education and development opportunities to sustain, improve or build on employee work performance.
People believe that they have stake in the organization. People feel motivated because they know where the organization is moving. Infighting and politics ceases to exist. . But many a times measuring the performance can not be that simple to be measured in terms of direct performance indicators. Many a times non-quantifiable parameters could also be the performance
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areas. For example brand loyalty. In such kind of cases we have to go for Indirect Performance measures. The essence of the performance management system in organization is to recognize the importance of the employees towards achieving the organizational objectives. The basic requirement for this is that the employees personal goals should be perfectly aligned with the vision, mission and the values of the organization.
The proposed conceptual framework also underscores the vital role of education, training and development in the envisioned successful organization. In this organization, continuous learning is a prerequisite to successful job performance and organizational effectiveness. Employees must be able to learn work, developing effective technical and people skills in order to assume new responsibilities, and keep pace with and anticipate the changing nature of work and our workplace.
For performance managers and employees, responding to these changes requires the ability to learn, adapt to change, solve problems creatively, and communicate effectively in diverse groups. In addition, employees must take personal and proactive responsibility for their careers to ensure future employability and advancement. The realities of the contemporary workplace will continue to challenge existing paradigms and should be considered in managing the performance of employees in a dynamic working environment.
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UFLEX INDUSTRIES LTD. CMD Mr. Ashok Chaturvedi UFLEX is a Multi Million Group headquartered at Noida, on the periphery of New Delhi, India and having manufacturing facilities in India & Dubai. UAE, offices in Europe and North America and market presence in 80 countries around the world. Flex facility enjoys ISO 9001 and ISO 14001 certifications and has FDA and BGA approvals. For their products, U Flex is part of the D&B Global Database and winner of various prestigious national and international awards like the top exporter of BOPET and BOPP films, and the Worldstar award for packaging excellence. FPA, AIMCAL and the Dupont Awards in 2004-2005 are the latest in this series. UFLEX Group came into existence in 1983 and has grown into one of the biggest multi integrated packaging groups in the world. Uflex Limited, the India-based flexible packaging giant, began its existence nearly two decades ago and has come a long way since then offering a vast array of innovative products and services that enrich life, improve performance and create value for the customers and shareholders . The group is a multi faceted organization which has backward integrated its operations from manufacture of Polyester chips, Films (BOPET, BOPP and CPP - both in plain and metallized form), Coated Film, Laminates, Pouches, Holographic films Gravure cylinders, Inks and adhesives to all types of packaging & printing machines, offering total flexible packaging solutions to the entire world.
They manufacture in-house Polyester chips, BOPET / BOPP / COATED / METALLISED / CPP Films, Packaging machines, converting equipment, inks, adhesives, Flexible Laminates and Pouches and have emerged as a one stop shop committed to providing customers with competitive advantage, placing top priority to customer success. With consistent quality, production expertise, continuous innovation in products and technologies, a dedicated work force and a highly motivated corporate team, the Uflex group is expanding at an immense pace. The Film Division of Uflex Limited is one of the largest manufacturer, supplier and exporter of a variety of Plastic Films in the world. Mission We believe in using our creativity and aesthetic potential in providing flexible packaging solutions which make packaging easier, faster, more efficient and user friendly. In this way we too have a share in contributing to the conservation of resources by enhancing the shelf life of the perishable products. Vision
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At UFLEX we believe that, to eventually emerge as a World leader in providing total Flexible Packaging solutions, we need a customer focused approach. The way to being a world class player is paved with state-of-the-art facilities blended with world class practices. And it shall be our endeavor to be placed amongst the top ten international players by the year 2005. Endeavour Their endeavor is to enhance stake holders value. PRINCIPLES People Related People come first whatever they do Each individual is the organizations responsibility first Each individual is competent and capable of taking responsibility for himself Each individual is unique and talented Each individual is working in the interest of the organization NO individual is a write off
Work related High priority to quality and process improvements Focus on customer expectations Environment friendly manufacturing Working with facts and data Working on causes not only on phenomena Cost efficiency , Respect for people
UFLEX Converting Division- The $150million flagship company of the Flex group is India's largest manufacturer of flexible packaging materials. It is a one-stop shop offering a wide range of packaging
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solutions. Its vertical integration thrust laid the foundation of two strategic Hi-tech divisions manufacturing BOPET and BOPP films. Both these units are today among the largest in India. UFLEX Chemicals Division- Originating from the backward integration thrust of Uflex Limited, the Company is now an independent entity, developing and manufacturing Polyester Chips, wide range of Adhesives and Printing inks. UFLEX Chemicals has diversified into Info Tech Industry offering call centre services and software solutions. UFLEX Engineering Division- Established with a view to expand the end use of flexible packaging. It is now one of the foremost engineering companies in India. It offers a wide range of proven sophisticated PLC controlled FFS packaging machines and converting equipment. The projects division of UFLEX Ltd. offers specialized services in planning, design, monitoring and execution of all Civil and Electromechanical works. UFLEX Foods - A 100% Export oriented State-of-the-art freeze dried mushroom manufacturing plant is set in the sylvan resort town of Dehradun in the foothills of the Himalayas.
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RESEARCH DESIGN
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Research design is the plan, structure, and strategy of investigation conceived so as to obtain answers to research questions and to control variance According to Kerlinger.
The plan is an outline of the research scheme on which the researcher is to work. The structure of the research is a more specific outline or the scheme and the strategy shows how the research will be carried out, specifying the methods to be used in the collection and analysis of the data.Research design is the blueprint of the research it lays down the method and procedure for the collection of requisite information and its measurement and analysis with a view to arriving at certain meaningful conclusions at the end of the proposed study
Research design used in the project The Research method followed in this project is Descriptive Research. I chose the mentioned research method as the basic objective of the project was to examine Performance management system prevailing in the company, suggest some suitable changes in existing system in order to make it more positive and meaningful in achievement of desired organizational goals.
Descriptive studies Descriptive studies are undertaken when the researcher is interested in knowing the characteristics of certain groups such as age, sex, education level, occupation or income. It can also be conducted when he wants to know the proportion of people in a given population who have behaved in a particular manner, making projections of a certain things; or determining the relationship between two or more variables. The objective of such a study is to answer the who, what, where, and how of the subject under investigation. Descriptive studies are well structured. It is therefore, necessary that the researcher gives sufficient thought to framing research questions and deciding the types of data to be collected and the procedure to be used for this purpose. If you are not careful in the initial stages you may find that either the data collected are inadequate or the procedure used is cumbersome and expensive. The data and records of the employees are also examined to understand the purpose well. Then the research was designed as a good research design facilitates the study and makes it an efficient as
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possible. A systematic research with structured and specified steps in specified sequence was designed and is as follows:
Step1: The objective is specified with sufficient precision to ensure that data collected is relevant. Step 2: The data collection method to be used is questionnaires, interviews and observations. While designing data collection procedure, adequate safeguards against bias and unreliability are ensured. Step 3: The questions are prepared in a clear, understandable manner. Step 4: The sampling design used is stratified random sampling, under this sampling design; every item of the universe has an equal chance of inclusion in the sample.
Sampling Design Sample size: Random sampling technique was adopted to choose the respondents for the sample. This technique was used keeping in view the scope of the study, which try to cover different departments and cadres of people. The sample drawn is 50 which are from the whole population. Sample universe: UFLEX INDUSTRIES LTD., SECTOR- 4, NOIDA
Research tools : The instrument used by me for collecting the information is QUESTIONNAIRE which contained questions covering various aspects related to performance management system. It contained open ended questions, questions based on likert scale and close ended questions.
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To obtain the data free from errors, I performed every step carefully while collecting and recording information and tried to get complete, comprehensible and consistent data The data for the present research study was collected through two methods: 1. Primary data collection method 2. Secondary data collection method
PRIMARY DATA COLLECTION The primary data are those which are collected afresh and for the first time. These data are obtained by a study specifically designed to fulfill the data needs of the problems at hand. Such data are original in character. Collected through:
1. Interview method: Direct personal interview method was used to collect the information from the respondents (employees) by personally visiting and meeting the people from whom data have to be collected. This method was used because the project includes an intensive study of a limited field. Moreover, the data needed for the purpose is more of personal nature which can be collected through directly communicating with the employees in order to increase its reliability. The information thus collected is original, accurate and in depth. The interview was unstructured as it was characterized by flexibility of approach to questioning and did not follow a system of pre-determined questions and standardized techniques of recording information. The method of unstructured interview was chosen so as to have greater freedom to ask, in case of need, supplementary questions or at times to change the sequence of questions.
2. Questionnaire method:
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In this method, a questionnaire was made consisting of a number of questions to be answered and filled by the respondents (employees) on their own. This method was used in order to enable the respondents to answer the questions as per their convenience and to provide those adequate to give well thought out answers. Thus this further increases accuracy. Secondary data: The secondary data are those which have already been collected by someone else and which have already been passed through the statistical processes. Thus such data is not originally collected rather obtained from published or unpublished sources.
Methods of secondary data collection: Company Journals, Magazines, Internet, Books and newspapers. . The collection of the secondary data was done through published sources and Unpublished sources of Performance management.
The methods of collecting primary and secondary data differ since primary data are to be originally collected, while in case of secondary data the nature of data collection work is merely that of compilation.
DATA ANALYSIS
OPTIONS
NO. OF RESPONDENTS
PERCENTAGE
37
YES
50
50
NO
60 50 40 30 20 10 0 1
50
Q1 YES NO
0 2
a) 80
b) 90
c) 270
d) 360
PERCENTAGE
80
50
38
90
50
270
360
Q3. Please indicate which of the following methods of performance appraisal Form a part of your system? a) Written Essay method b) Graphic rating scales c) Ranking method d) 360 degree appraisal e) Self appraisal f) Critical Incident assessment g) Behavioral Assessment (BARS) h) Paired Comparison Method i) Forced distribution method j) Balance Score card k) Any other pls. specify_______________
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OPTIONS
NO. OF RESPONDENTS
PERCENTAGE
46
92
14
28
Ranking method
Self appraisal
50
10
0 0
0 0
0 0
40
41
60 50 40 30 20 10 0 0 0 0 0 0 0 0 0 14 46 50 Written essay method Graphic rating scales ranking method 360 appraisal self-appraisal critical incident assesment BARS paired comparison method forced distribution method balance score card other..
4. Who sets the performance goals/requirements for individuals? a) Senior Managers c) HR professionals e) Appraiser & Appraisee OPTIONS b) Line managers/Team leaders d) Appraisee e) others (pls. specify) NO. OF RESPONDENTS PERCENTAGE
te G ne ra ss ph a ic y m ra et ra ti ng hod nk in sca g l 36 m e s cr iti 0 eth ca ap o d li nc self pra id -a isa en pp pa t a ra l ire ss i sa d es l fo co rc m m ed p en di aris BA t st ri b on R ba ut i m e S la on tho nc d e met sc ho or e d ca r ot d he r. .
W rit
Senior Managers
36
72
27
54
HR professionals
27
54
Appraisee
10
20
42
27
54
40 35 30 25 20 15 10 5 0
s pr of es si on al s ap ap pr pr ai ai se se e r& ap pr ai se e s an ag er le ad er ot he rs
Senior managers line managers/ team leaders HR professionals appraisee appraiser & appraisee others
Se ni or m
s/ t
ea m
an ag er
Q5. What are the determinants for job performance in your organization? Organizational Culture Competency of the employee Attitude Technology Intelligence Aptitude
lin e
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OPTIONS
NO. OF RESPONDENTS
PERCENTAGE
Organizational Culture
Technology
10
41
82
Attitude
18
Intelligence
10
Aptitude
18
44
45 40 35 30 25 20 15 10 5 0 0
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o rg anis ational c u ltu re tec h nology c om pe tenc y of em ployee a ttitude inte lligenc e 9 5 5 9 a ptitude
org anis ation al hno logy c om petenc y a ttitude tec c u lture of em plo yee
intelligenc e aptitu de
6. In general, how effective has your organizations performance management Processes proved in improving overall performance? a) Effective b) Moderately effective c) Ineffective d) Dont Know
OPTIONS
NO. OF RESPONDENTS
PERCENTAGE
45
40 35 30 25 20 15 10 5 0
36
0 don't know
7. Do you expect any changes in The Current Performance Management System In your Organization? a) Yes b) No
OPTIONS
NO. OF RESPONDENTS
PERCENTAGE
YES
18
NO
18
46
10 9 8 7 6 5 4 3 2 1 0
YES NO
YES
NO
INTERPRETATION
The analysis shows that Uflex ltd follow formal Performance management system although the nature of Performance management is traditional they are not in pace with the latest development in this field. Also, maximum responses show that degree of Performance appraisal followed is 90.amongst various methods of performance appraisal Self appraisal is used on a large scale in Uflexltd. It also indicates that senior managers lay down performance requirements for employees, although line managers and HR professionals contribute as well to the above purpose. Being a semi government organization performance management practices are not followed on a large scale in the company but still majority of population says that while measuring performance of employee Competency of employee plays a major role apart from Intelligence, attitude, aptitude of the employee. Majority of employees feel that current Performance management processes has proved quite effective in improving the overall performance of employee in the company. Despite of all these aspects of Performance management employees still feel that there should be some changes in the current performance management practices so that employees of theUFlex ltd can work more effectively towards fulfilling the organizational goals and take company to higher levels.
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OPTIONS Retention strategy a) Strongly Disagree b) Disagree c) Neutral d) Agree e) Strongly Agree
NO. OF RESPONDENTS
PERCENTAGE
0 0 14 36 0
0% 0% 0%
0 0 28 72 0
OPTIONS Reward Allocation f) Strongly Disagree g) Disagree h) Neutral i) Agree j) Strongly Agree
NO. OF RESPONDENTS
PERCENTAGE
0 0 14 36 0
0 0 28 72 0
48
0%
82%
OPTIONS
Identification of training and development needs strongly Disagree Disagree Neutral Agree Strongly Agree 0 0 14 36 0 0 0 28 72 0
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Facilitates promotions, transfer and termination decisions strongly Disagree Disagree Neutral Agree Strongly Agree 0 0 14 36 0 0 0 28 72 0
50
0 0 23 27 0
0 0 46 54 0
0 0 0 36 14
0 0 0 72 28
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Motivational strategy
0 0 0 40 9
0 0 0 80 18
52
40
agree
strongly agree
2) What according to you is the most challenging aspect of performance management? a) b) c) d) e) Determining the evaluation criteria Creating a rating instrument Lack of competence Errors in rating and evaluation Resistance
OPTIONS
PERCENTAGE
64
14
28
Lack of competence
10
53
Resistance
35 30 25 20 15 10 5 0 a) determining the evaluation criteria c)lack of competence 14 32
a) determining the evaluation criteria b)creating arating instrument c)lack of competence d)errors in rating and evaluation 5 0 0 e) resistance e) resistance
In this section, I tried to figure out the knowledge and opinions of employees about Performance management in general. I listed down the few parameters to know the reason of undertaking performance management system in the company. There are mixes responses, according to employees Reward allocation i.e. giving rewards on the basis of performance and Motivation being the major reason for implementing Performance management system. Besides this, retention, to identify training and development needs, to take decisions on promotions, transfers and terminations, identifying barriers to performance are also some of the prominent causes for implementing Performance management. Also, majority of employees says determining evaluation criteria for employees is the most challenging aspect of performance management system, apart from creating rating instrument are challenging aspects as well.
Q1. To what extent do you agree that the following statements describe Performance Management Processes in your Organization?
OPTIONS
NO. OF RESPONDENTS
PERCENTAGE
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Performance Related Pay is an essential part of Performance management strongly Disagree Disagree Neutral Agree Strongly Agree 50 0 0 0 0 100 0 0 0 0
OPTIONS
NO. OF RESPONDENTS
PERCENTAGE
55
Line managers Own and operate The Performance Management Processes strongly Disagree Disagree Neutral Agree Strongly Agree 25 25 0 0 0 50 50 0 0 0
NO. OF RESPONDENTS
PERCENTAGE
0 0 0 23 27
0 0 0 46 54
56
NO. OF RESPONDENTS
PERCENTAGE
0 0 25 25 0
0 0 50 50 0
57
OPTIONS The effectiveness of Performance management is measured in Qualitative rather than Quantitative terms strongly Disagree Disagree Neutral Agree Strongly Agree
NO. OF RESPONDENTS
PERCENTAGE
0 0 10 40 0
0 0 20 80 0
0%
80%
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OPTIONS The aims and Objectives of performance management are well communicated and fully understood. strongly Disagree Disagree Neutral Agree Strongly Agree
NO. OF RESPONDENTS
PERCENTAGE
0 32 0 14 0
0 64 0 28 0
35 30 25 20 15 10 5 0 0 strongly disagree
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0 strongly agree
OPTIONS
NO. OF RESPONDENTS
PERCENTAGE
YES
50
100
59
NO
60 50 50
40 YES NO
30
20
10 0 0 YES NO
3. If yes, what sort of feedback do you give? a) Numerical/alphabetical c) Verbal (positive and negative) e) Others (pls. specify)
OPTIONS Numerical/alphabetical Verbal (all positive) Verbal (positive and negative) Combination of the above Others (pls. specify)
NO. OF RESPONDENTS
PERCENTAGE
0 0 50 0
0 0 100 0
60
60 50 40 30 20 10 0
l/a lp ha be
50
e)others(pls specify)
a) nu m
er ica
NO. OF RESPONDENTS
PERCENTAGE
0 0 31 18 0
0 0 62 36 0
61
35 30 25 20 15 10 5 0 0 1 0 2
31
1 18 2 3 4 5
0 3 4 5
NO. OF RESPONDENTS b. Training and development strongly Disagree Disagree Neutral Agree Strongly Agree 0 0 22 27 0
PERCENTAGE
0 0 44 54 0
62
27
NO. OF RESPONDENTS c. Career Management and development strongly Disagree Disagree Neutral Agree Strongly Agree 0 0 41 9 0
PERCENTAGE
0 0 82 18 0
63
41
strongly agree
Q5. Did the following people receive training in performance management Techniques? (Please tick as many boxes as appropriate)
OPTIONS
NO. OF
PERCENTAGE
64
RESPONDENTS All Employees Heads of departments HR Team Other Managers/team leaders Appraisers None 45 5 5 5 5 0 90 10 10 10 10 10
50 45 40 35 30 25 20 15 10 5 0
45 a) all employees b)heads of departments c)HR team d)Other managers/team leaders e) Appraisers 5 5 5 5 0 c)HR team d)Other managers/team leaders a) all employees b)heads of departments e) Appraisers f) none f) none
SECTION D: PROCESS OF PERFORMANCE MANAGEMENT In this segment, I tried to take an overview of Performance management system of Uflex ltd. with respect to various aspects. Majority of employees says that performance related pay is not followed in the company, line managers doesnt operate the performance management processes. Also, performance management plays a major role in motivating individuals and it is used to manager organizational culture. In the company, Effectiveness of performance management system is measured in both Qualitative as well as Quantitative terms. Majority of employees are of the opinion that aims and objectives of performance management are not well communicated i.e. system is not transparent employees are not fully aware of the performance management practices in the company. The company gives overall rating for the performance and the feedback is combination of Numerical values, verbal and alphabetical. Coaching and career management are important facet of the companys process along with Training and development and succession planning. The most important part is all employees receives training with respect to performance management techniques.
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CHAPTER-6 RESULTS
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There is communication gap between higher level & staff level. So unsatisfied employee cannot keep his/her comments and cannot oppose the final decision which is finally made by only higher authority.
HERE IS THE SAMPLE OF KEY RESULT AREAS DESIGNED BY ME FOR THE SALES DEPARTMENT: KEY RESULT AREAS: SALES EXECUTIVES
K.R.A 1 - To deliver presentations of products at customer sites and at conferences and exhibitions. K.R.A 2 To maintain Companys contact management database with accurate, up-to-date contact and activity details K.R.A 3 - To Meet annual sales targets and Produce monthly sales report. K.R.A 4 - To Maintain contact with existing and potential customers to promote sales and deliver detailed account plans K.R.A 5 - Understand the market in which the company operates and how the companys products and services are used within that market K.R.A 6 - Ensure that company has an in depth understanding of the users of company products and their ongoing needs.
ASSISTANT MANAGER
K.R.A 1 - To Recruit and train sales force and assist in the management of the overall sales operation for the Improvement business at a specific branch location. K.R.A 2 - To assure total program success through motivating, coaching and developing a high performance sales team.
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K.R.A 3 -To Work closely with the Sales Department Head to learn and develop skills necessary to lead a successful sales team. K.R.A 4 - To look after the dealer/distributor network for increasing sales and maintaining relationship with them. K.R.A 5 - Visiting Corporate, Relationship Building, Selling Financial Products K.R.A 6 To do Researches, writes and implements policies, standards, procedures and best practice documentation. SALES DEPUTY MANAGER
K.R.A 1 To develop and execute as well print, special issues/supplements, newsletters, catalogues of the B2B magazines. Sell for awards, expos, exhibitions, seminars. K.R.A 2 To Ensure that monthly targets for advertisements and collection of outstanding payments are met and maintaining accurate sales forecasts and reports K.R.A 3 - To Provide continuous communication to the customers about their samples, orders and other logistics issues K.R.A 4 To Maintain excellent communication and coordination with Supply Chain, R&D,
K.R.A 5 To arrange for meeting revenue targets by developing, managing and growing the business. .K.R.A 6 - To Develop and promote market (country/region) specific products, execute market specific policies. SALES MANAGER K.R.A 1 - Developing a business plan and sales strategy for the market that ensures attainment of company sales goals and profitability
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K.R.A 2 - Prepare action plans by individuals as well as by team for effective search of sales leads and prospects. K.R.A 3 - Provides timely feedback to senior management regarding performance. And Reporting to Management about Performance of Sales Team. K.R.A 4 - To Understand departmental financial data to determine what is happening in your department. Review financial data that affects your department's profit centers . K.R.A 5 To Meet daily with salesman. And Offer them the coaching, counseling, advice, support, motivation or information they need in order to help them meet their sales objectives K.R.A 6 - Provides timely, accurate, competitive pricing on all completed prospect applications submitted for pricing and approval, while striving to maintain maximum profit margin
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There is Traditional/ Biased Performance management system in the sense that all the authority lies in the hands of senior management irrespective of the performance level of individuals.
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organization must invest in specific technology oriented products and services, software & hardware to improve the performance of employees. Performance management system is quite traditional in the company, recent technologies are not adopted.
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CHAPTER-8 BIBLIOGRAPHY
References 1) Rao T.V( Performance Management and appraisal system) 2005 fourth printing 2) Sahu R.K (Performance Management System) 2007 edition 3) Michael Armstrong and angela Baron(Managing Performance Management in action) 2005 first edition 4) Decenzo ,A David , Robbins P Stephens ( Personnel and human Resource Management) Ashok K Ghosh Publications 2007 Edition
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ANNEXURE
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