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AN IN-DEPTH STUDY OF PERFORMANCE

MANAGEMENT

SYSTEM

PROJECT REPORT ON

AN IN-DEPTH STUDY OF PERFORMANCE MANAGEMENT

SYSTEM AT MINDA CORPORATION LIMITED

Towards the partial fulfillment of the Training in(HR) at Minda Corporation Ltd.

SUBMITTED BY

JYOTI SHARMA


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CANDIDATE DECLARATION

I hereby declare that the project titled AN IN DEPTH STUDY OF

PERFORMANCE MANAGEMENT SYSTEM AT MINDA CORPORATION

LTD. Noida is original and bonafide work carried out byme during the year

2010 under the guidance ofMr.B.Varaprasad.

I also declare that this Project is a result of my effort and no part of this research

has been published earlier or been submitted as a project by me for any degree or

diploma for any institute or Company.

JYOTI SHARMA


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CERTIFICATE

This is to certify that the dissertation titled AN IN DEPTH STUDY

OF PERFORMANCE MANAGEMENT SYSTEM AT MINDA

CORPORATION LTD submitted by JYOTI SHARMA student of

MBA (Global School Of Business) for the partial fulfillment of the

requirement of the MBA embodies the bonafied work done by her under

my supervision.

I also declare that this Project is a result of her effort and no part of this

research has been published earlier or been submitted as a project by herfor any degree or diploma for any institute or Company.

Signature of the mentor


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ACKNOWLEDGEMENTS

There are a number of important people I want to thank, without whose support,

guidance, encouragement, and help this work would not have been possible. I

would also like to give my greatest thanks to God who deserves the ultimate praise

and credit for all good things in my life.

I want to thankMr.B.Varaprasad(Member-HR) who has been my advisor and

mentor throughout my studies. Without sirs patient criticism, continual support,

effective teaching, and constant challenge and encouragement to give my very best

efforts to my undertakings, I would not have learned what I needed to nor been

prepared to complete this project and future work. Much of what I have learned

about the craft of research has come from Sir, and I am forever grateful for the

opportunity to have trained under his guidance.

I am grateful to Sirfor his generosity, mentoring, support, and sense of humor,

which have always served to keep my spirits light and my attitude positive.

As a student specializing in Human resource, I came to know about the

ground realities in topics like Performance management system with

special reference to Minda.


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ABSTRACT

Training is an integral part of the work situation and is closely related to

the career and promotion structure. So practical training could be taken

as a beginning of a process of in doctrines into the ways of a business

organization and it is the first step which would be helpful in future

prospect. Training makes the concept clear and help in facing the actual

situations.

I have done training at MINDA CORPORATION LIMITED,NOIDA in

Human Resource. During the training Programme, I got the opportunity

to learn valuable things regarding management. It was my fortune to get

the training in a very healthy atmosphere. The management of the

company offered learning situation, sufficient facilities and training

opportunities to fulfill the objectives of training.


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The project assigned to me was Performance Management System. In

my project report I have studied the procedure of Performance

Management System at MINDA.

The process of PMS from Setting Goals till Learning and Development

has been done in my project report. From the study and work of

Performance Management System I can say that it is an important tool

for Human Resource and also for the development of the employees.

This Project has really exposed me to a far new world and I sincerely

hope that MINDA CORPORATION LIMITED. Will find my study

equally valuable as found it in shaping my career.


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INDEX

CONTENTS

1) CANDIDATE DECLARATION

2) CERTIFICATE

3) ACKNOWLEDGEMENT

4) ABSTRACT

5) CHAPTER 1: INTRODUCTION

5.1 Introduction of the study

5.2 Significance of the Study

5.3 Review of existing literature

5.4 Objectives Of the study

6) CHAPTER 2: RESEARCH METHODOLOGY

7)CHAPTER 3: DESCRIPTIVE WORK

7.1 Key factors affecting PMS

7.2 PMS Methodology

7.3 Performance Assessment

7.4 Annual Increment

7.5 Types of Errors in PMS

8) CHAPTER 4: DATA ANALYSIS AND INTERPRETATION

9)CHAPTER 5: FINDINGS & RECOMMENDATIONS

10) CONCLUSION

11) BIBLOGRAPHY


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INTRODUCTION

The concept of Performance Management has been one of the most

important and positive developments in the sphere of Human Resource

Management in recent years. Performance Management is, of course,

about performance. It is important to clarify what performance means,

because if performance cannot be defined, performance appraisal cant

be done properly an eventually performance management system cannot

be successfully implemented. Performance appraisal which is key to

Performance Management System may be defined as a structured formal

interaction between a subordinate and supervisor, that usually takes the

form of a periodic interview (annual and semi-annual), in which the

work performance of the subordinate is examined and discussed, with a

view to identifying weaknesses and strengths as well as opportunities for

improvement and skills development.


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Organizations are now looking forward to obtain competitive edge

through highly developed employee skills by adopting an efficient

Performance Management system. The efficiency of an

organization depends directly on the capability and talent of its

personnel, and how motivated and satisfied they are. This study throws

light on the effectiveness of implementing Performance

Management System in the organization and how Performance appraisal

as a key to Performance Management System helps to increase

productivity of employees, which makes the organization

Efficient.

APPRAISAL- the word means to fix a price or value for something.

So it is a process in which one values the employees contribution and

worth to the organization.


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SIGNIFICANCE OF STUDY

Today leading organizations are using every available tool with greater

vigor to create a more efficient and profitable business. One of these

tools, is Performance Management, historically has

been viewed as an effective highly political and time consuming task yet

there is hardly a single organization in the world that does not want a

performance management system focused on

results and backed by commitment.

The performance appraisal is the key element in the performance

management process. When used effectively the performance appraisal

can provide accurate feedback on past performance,

significantly enhance employees productivity and satisfaction and offer

feedback to employees on how to improve. For that reason performance


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appraisal is one of the most important responsibilities of supervisor or

manager.


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REVIEW OF EXISTING LITERATURE

There are different views on what performance is. It can be regarded as

simply the record of outcomes achieved. On the individual basis, it

would then be the record of a persons

accomplishments (Bernadine et al, 1995; Kane, 1996).

On the other hand, it has also been suggested that performance is

behavior and should be distinguished from the outcomes because the

outcomes can be contaminated by systems

Prevalent in the organization (Campbell, 1990).

Performance means both Behavior and result Behavior, emanates from

the performer and transforms performance from abstraction to action.

Not just the instrument for result, behavior is


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also the outcome in its own right and can be judged apart from the result

(Brumbrach, 1988).

Performance Management is a continuous process of identifying,

measuring, and developing the performance of individuals and teams

and aligning performance with the strategic goals of the organization

(Herman Aguinis, 2007)

The concept of performance management has been one of the most

important and positive developments in the sphere of Human Resource

Management in recent years. The phrase

Performance Management was first coined by Beer and Ruth in 1976.

It became recognized, as a distinctive approach in mid 1980s, because of

the growing realization that a more continuous

and integrated approach was needed to manage and reward performance.

Performance Management System is the process of performance

planning, Performance Monitoring and Coaching, Measuring Individual

Performance linked to organizational goals, giving him/her feedback,

rewarding the individual based on his/her achievements against set


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performance goals and required competencies, and working out a plan

for his/her development.

(Dr. R K Sahu,2007)

Sound PMS of an organization is directly related to the satisfaction of

the employees. Performance appraisal is always result based rather than

be effort based. This sometimes leaves

the employees dissatisfied. However in case of good PM, the appraisal

process must be transparent which allows the employees to interact with

their managers and clarify their queries.

Under a performance appraisal system employees must be able to see

some benefits to them, which is important for personal development of

employees. This result in the employee

satisfaction, which increases productivity as the performance of an

organization, depends directly on the performance of its people. (Dr. R

K Sahu, 2007).


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OBJECTIVE OF STUDY

The followings are the objectives of my study:-

o To make a study of Minda Corporation Ltd(Noida) as a whole

o Organizational benefit of PERFORMANCE MANAGEMENT

SYSTEM.

o Recognizing the Training Needs & Identification of type of

training.

o To study about different appraisal methods.

o To study and analyse the appraisal system and practices prevailing

in Minda Corporation.

o To suggest effective measure to improve the Performance system

of the company.


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RESEARCH METHODOLOGY

Research process includes research design, which tells about the nature

of the study. Research comprises defining and redefining problems, and

suggested solutions, collection, organizing a

devaluating data, making deductions and reaching conclusion. This

research is an exploratory research.

Research Design

The following procedure will be adopted in the project:

A survey of the employees at different levels at MINDA

CORPORATION LIMITED. will be done with the help of a structured

questionnaire.

Sample Size

The sample size of the employees would be around 100.


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Sources of Data Collection

The study is primarily based on primary data. Secondary data is

collected through companys records, books related to the topic, HR

magazines and journals, and data from the Internet will also be taken.

Analysis Pattern

After the collection of data from the primary and secondary sources that

will be properly arranged and tabulated to make analysis and

interpretation.


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KEY FACTORS AFFECTING PERFORMANCE MANAGEMENT

Ability: Ability is one of the important factors affecting performance

management system. Performance Management of an employee depends

upon the ability of an employee. The more able the employee is, the

more he/she is important to the organization. Character traits, skills and

knowledge, which are used in the performance, are termed as the ability

of an employee. It is always present and will not vary widely over short

periods of time. Apart from ability many people who are not motivated

keep their performance to an acceptable level by expending only 20-

30% of their ability. Managers who know how to motivate their

employees can achieve 80-90% ability levels and consequently higher

levels of performance. The amount of effort i.e. manual or mental


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energy that a person is prepared to expend on a job to reach a certain

level of

performance varies according to incentive and motivation to the

employee. (Likert, 1976).

Motivation: Motivation factors are present in the job itself. They

include such things as opportunity for recognition, achievement, and

growth. Hence, a leader that recognizes employee efforts and helps

employees achieve and grow can help improve satisfaction, as long as

pay is perceived as fair.

Thus, regularly spending time with employees focusing on development

and achievement adds value.

Maslow and basic needs (1940s & 50s) - broader view extending beyond

the work place. Proposed a hierarchy of needs - the lowest level needs


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are dominant till satisfied and performance is affected if the needs

according to these levels are not taken care of which can lead to the

dissatisfaction of an employee.

Physiological (food, shelter)

Safety (insurance, security, protection from harm)

Love (peer groups, recreation, affection, acceptance)

Self- actualization (creativity, growth, achieving ones potential)

Esteem (achievement, status, self respect, recognition).


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Also Herzbergs motivation theory focused on two factors, Motivation

and Hygiene. Hygiene factors such as pay if perceived as unacceptable

lead to job dissatisfaction, if perceived as

acceptable lead only to a state of no dissatisfaction. Hence, a large raise

may result in a temporary euphoria, but would not lead to job

satisfaction.

Career development: This indicates some key learnings relevant for

our study and has hence been reproduced. While managing careers we

are essentially managing a process of enhancing performance of

individuals and groups to help them contribute concretely towards

enhancing shareholder value. Careers are built in corporations where

basics of people management are adhered to with sincerity and

commitment are made only when the intellect merges conclusively with

the commercial and cultural realities of an organization and this cannot

happen unless

intellect is given its rightful place through effective performance

appraisal. Ever since companies decided that maybe they should


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measure how their workers are doing and give the better performers a

raise, employers have married employee performance appraisals with

annual salary reviews. Within a short period of time, the argument began

over whether the two should be linked and, if so, to what extent. One

facet of that ongoing debate is whether the size of pay increase

differences makes a difference and whether increasing pay for good

performance is a motivator for even better work the next year.

Feedback: Performance Management System cannot be effective

without feedback. As a basic human tendency people tend to make

judgments about those working with them. In the absence of a

meticulously structured objective system of appraisal, people will tend

to judge the work performance of others, including subordinates

informally and arbitrarily based on their likes, dislikes, biases and

prejudices. The multi rater feedback process is called 360 Degree

Feedback.The powerful process is perhaps one of the most effective and


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widely used initiatives to develop leadership capability, identify

potential, and develop strong bonds between teams and for enhancing

key competencies in organizations. The focus of a 360-Degree

implementation today, continues to be on development. Rarely do

companies use it for performance appraisals, rewards and recognition,

collecting data on employees or succession planning.

Compensation: Compensation reviews are another matter. In a

compensation review, the goal is to establish the employee's value to the

corporation, based on their duties and responsibilities, potential, and

their own financial goals. If employees have a great performance review,

they're going to expect a great compensation package, and that might be

difficult. They may view themselves and their worth higher than the

company does, hence dissatisfaction. Any number of factors can come

into play in compensation review, including the company's economic

health and how much it can prudently afford to pay, as well as the

employee's skill level, responsibilities, and longevity not only with the


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company, but in their current position. Some companies have a salary

range for various positions that can take experience, seniority, and skill

levels into account. But increases are frequently based more on the

economy and how the company's doing than on actual performance.

Most leaders try to give larger increases to higher performing

employees, and smaller increases lower performers.

IN ESSENCE, Performance Management System is the most important

tool for every organization and there are several benefits that a PMS

system can offer in making an organization more efficient and effective.

The biggest success factor in all our initiatives has been the

Managements commitment to fostering a culture of transparency and

collaboration, without which no system can be effective, however good

they are. (Robbins, Low, Morel ;1986.

FOCUS OF THE PROBLEM


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The study focuses on understanding and effectiveness of Performance

Management System in Minda Corporation Limited. The study throws

light on the positive impact and motivating employees with the

performance management system to build the necessary commitment for

the organization.


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PMS METHODOLOGY

PMSprocess consists of four steps:

1. Goal setting

2. Monitoring and feedback

3. Rewards and recognition

4. Learning and development

1. SETTING GOAL:

Setting goal to achieve organizational objective.

Helping people to understand goals.

What need to be done?

How will it be measured?


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2. MONITORING AND FEEDBACK:

Conduct review and give feedback.

How well are employees are meeting there goal.

Address issues on performance during the appraisal period.

3.REWARD AND RECOGNITION:

Monitory / non monitory

4.LEARNING AND DEVELOPMENT:

Developmental needs are identified, agreed and planned for.

Learning and developmental opportunities provided.

MANAGERS ROLE IN PMS:

Managers play a crucial link between organization and individual

employees. Their action and attitude are key drivers for the success of


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any performance management system. The managers role in PMS

described below:

Set goals for employees.

Create clear expectation for employees

Provide honest and timely feedback.

Be fair, reasonable and consistent

Work towards employees growth and development

Communicate honestly and directly.

Provide opportunities for learning through coaching.

EMPLOYEES ROLE IN PMS:

The role of employees in the performance management system is

equally critical as that of manager. The employees role is described

below:


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Ask question so as to understand clearly what is expected.

Involve and participate in goal setting exercise.

Perform work as per assign standard.

Take charge of your own development.

Create opportunities to seek and give feedback to your manager.


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SETTING GOALS:

Goals have to be S.M.A.R.T.

S- SPECIFIC set clear concrete goal.

M- MEASURABLE- quantity, quality, cost and time

A- ACHIEVABLE- realistic should stretch you.

R- RESULT ORIENTED- Deliverable, accomplishments.

T- TIME BOUND- deadliness, dates.

FOR EXAMPLE:

TO ESTABLISH ALTERNATE VENDORS FOR TOP 10 CRITICAL

ITEMS FOR HOME UPS LINE OF PRODUCTS BY JUNE 2007

EMPLOYEES APPRAISAL PROCESS:


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The performance will be assessed as per various parameters set in

performance management system. These are:

1. Assessment of performance against goal.

2. Assessment of skills and knowledge.

3. Assessment of attributes and behavior

.

1. ASSESSMENT OF PERFORMANCE AGAINST GOAL:

The performance for the year is assessed on the basis of RESULT/

DELIVERABLES achieved by end of the year against the goals.

2. ASSESSMENT OF KNOWLEDGE AND SKILLS:

Assessment of knowledge and skills is based on:

Professional and technical knowledge.

Professional and technical skills.

Communication skills.


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WEIGHTAGES:

Weightage allocated to each objective. The total of the entire objective

comes to 100%.

The weightage allocated are;

INDIVIDUAL PERFORMANCE:

Against agreed goals / objective which carries a weightage of 40%.

INDIVIDUALS KNOWLEDGE AND SKILLS:

The application of skills and knowledge carries a Weightage of 35%.

INDIVIDUAL ATTRIBUTES AND BEHAVIOUR:

The demonstration of behavior / attributes carries a Weightage of 25%.


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LEVEL AT MINDA CORPORATION :

There are different levels at Minda, these are describe as:

1. STAFF: DRIVERS, ELECTRICIAN, PEON, COOK, FIELD ASSISSTANT,

WIREMAN, TESTER, TESTING ENGINEER, TECHNICIAN.

2. LEVEL 4: Supervisory Level

3. LEVEL 5: Engineer or officer.

4. LEVEL 6: Deputy Manager

5. LEVEL 7: Manager

6. LEVEL 8: DGM

7. LEVEL 9: GM8.LEVEL 10: Associate Vice-President

9.LEVEL 11: Vice- President

10.LEVEL 12: President,MD

PERFORMANCE ASSESSMENT:

The performance of an employee is measured through series of steps. There are

Various step involved in it. The first being the SELF- ASSESSMENT FORM, the

second being the KRA REVIEW FORM, and the final being the COMPETANCY

REVIEW FORM. At different levels there is different type of form

EXPLANATION:

There are three parts for assessing the employees performance. PART A- self-

appraisal, PART

B- KRA evaluation sheet, and PART C- Competency review form. The detail of

which is

described below:

1. PART A SELF APPRAISAL:

This is to be filled by the employee himself. This is filled in order to have a

review of the employees capabilities. This form is reviewed and the employees

strong


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points according to him are viewed.

For example:

WHAT DO YOU THINK HAS BEEN YOUR MOST IMPORTANT

CONTRIBUTION TO THE DEPARTMENT OR ORGANIZATION IN LASTR

YEAR?

This form basically shows what employees feel that he has done in the last year.

2. PART B- KRA EVALUATION SHEET:

Key result areas are such critical areas of performance, which

Though constitute few in number, would have major impact on business/ targets

of the Units / function. KRA setting is the process that converts organizational

Objectives into employee objectives. KRA setting for the next year should be done

jointly between appraiser and appraisee and keeping in mind the resources and

action that may be required for successful completion the targets, the agreed KRAbecome the standard against employees achievement will be evaluated. KRA

setting helps in role/KRA clarity and regular review of progress made.

3. PART C- COMPETANCY REVIEW FORM:

This is also termed as performance assessment rating form. In this

form the performance of the employees is judged on certain parameters. The

parameters being:

Job knowledge and skills, innovation and creativity, energy, act with integrity

and work habits, compliance to system and procedure, credibility and ethics, work

output and its quality, focus on result, team work, and self accountability.

Towards the end of the form total score is given there which is average of the score

of parameter, and accordingly ranking is given.

In the excel sheet than the following data are entered i.e. the KRA rating and

the performance evaluation sheet and accordingly the software derived the

desired ranking and accordingly the appraisal and salary correction is done.

RATINGS:

1. BELOW AVERAGE:

Does not fully meet the requirements.

Excessive supervision required.


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2. AVERAGE:

Adequate performance, meets requirement.

Need push to perform better.

3. ABOVE AVERAGE:

Consistently higher performance than expected.

Challenging assignments are normally handled.

4. OUTSTANDING:

Exceptional performance which leaves nothing to be desired.

Challenging assignment consistently well handled.

ANNUAL INCREMENT:

PERIODICITY & CYCLE OF INCREMENTo Increment cycle would be on financial year basis, i.e., April to March.

o Increments and promotions would be effective from 01st of April.

ELIGIBILITY

o Increment would be given to all confirmed employees as of 31st March.

o Increments would also be given to employees whose last increment was effective

from 01st October 2006 or before that on pro-rata basis.

o All functional heads will give performance rating and promotion

recommendation

in the performance appraisal form for employees in their department which willbe

used for giving annual increments.

o Trainees and probationers will be eligible for performance review and

increment in the next review cycle only.

QUANTUM OF INCREMENT:

o A fixed percentage increase in CTC will be given as annual

increment depending upon the performance rating as per the table


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below:

Rating % age increase in CTC

Excellent 20%

Very Good 15%

Good 10%

Average 6%

Below Average No Increment

o Employees across the level and function will get the same

percentage increase if their performance rating is same.

o Quantum of increment will be on pro-rata basis depending up on the date of

joining or date of last increment.

o In case an employee does not get any increment because of ineligibility as

mentioned above, he will get increment in the next increment cycle for the entire

period.

SALARY CORRECTION

o Over and above performance based increment, salary correction would also be

considered depending upon the role and criticality of the position and to bring

internal equity.However, such cases has to be strictly restricted

TYPES OF ERROR IN PMS:

TYPES OF ERRORS

While evaluating performance of the candidate under the PMS few types of errorcan take place that are as follows

STRICTNESS ERROR:

It occurs when the appraiser artificially assigns all or certain group of employees

low performance ratings and consequently all or certain scores cluster at the

bottom of the rating scales.


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CENTRAL TENDENCY:

It is the tendency of the appraiser to avoid using the extremes of rating scales and

to cluster the ratings around the mid point.

SPILL OVER EFFECT:

It is the tendency of the appraiser to carry in mind the past performance of the

appraise in view while making evaluation on the present Performance.

RECENCY EFFECT:

Some times the raters assign ratings on the basis of recent behavior they have seen

in their appraises forgetting about past behavior over a period. This is called

recency effect. After performance evaluation system we find source for the type of

training to be given to employees. According to the review of performance

assessment we recognize the type of training the employee need for hisdevelopment. The departmental head gives the feedback regarding the performance

of the employees and accordingly the HR department reviews the assessment and

provides the type of training the employee required. Sometime the employee

himself mentions the type of training he or she needs. Training the important part

for development of any employee as it help to increase the knowledge of the

employee in the area were they are lacking.


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QUETIONNAIRE ANALYSIS


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Ques1. PLEASE INDICATE THE EXTENT TO WHICH YOU AGREE/ DISAGREE

WITH THE FOLLOWING STATEMENTS:

A) PERFORMANCE RELATED PAY IS AN ESSENTIAL PART OF PERFORMANCEMANAGEMENT (PM).

B) THE FOCUS OF PM SHOULD BE DEVELOPMENTAL


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C) THE MAIN OBJECTIVE OF PM SHOULD BE TO MOTIVATE INDIVIDUALS.


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D) PM DISTRACTS PEOPLE FROM MORE IMPORTANT CORE ACTIVITIES


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E) PM SHOULD BE DISTANCED AS FAR AS POSSIBLE FROM COMPENSATION.


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F) PM IS ABOUT INDIVIDUAL AND THEIR LONG TERM DEVELOPMENT


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G) PM DOES NOT HELP TO DEVELOP CAREERS ONLY BUT ALSO IMPROVE

WORK PERFORMANCE


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H) PM IS ABOUT DECIDING HOW MUCH TO PAY PEOPLE


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I) PM PROVIDES A WAY OF KEEPING A RECORD OF AN INDIVIDUALS

PROGRESS AND PERFORMANCE


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J) PM IS ABOUT GETTING PEOPLLE TO WORK HARDER


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K) PM HAS NO VALUE FOR INDIVIDUALS, ONLY FOR ORGANISATION


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L) PM MOTIVATES PEOPLE AND MAKES THEM FEEL PART OF THE

ORGANISATION


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QUES 2. PLEASE INDICATE WHICH OF THE FOLLOWING FEATURES OF PM

PROCESSES ARE INCLUDED IN YOUR ARRANGEMENTS, AND HOW EFFECTIVE

YOU BELIEVE THIS TO BE.

A. ANNUAL APPRAISAL


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B. BI-ANNUAL APPRAISAL

C) SELF APPRAISAL


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D) SUBORDINATE FEEDBACK

E) COMPETENCY ASSESSMENT


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F) OBJECTIVE SETTING AND REVIEW

G) PERFORMANCE RELATED PAY


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H) COACHING & MENTORING

I) CAREER MANAGEMENT


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J) PERSONAL DEVELOPMENT PLANS

QUES.3. WHAT DO YOU UNDERSTAND BY THE TERM PERFORMANCE

MANAGEMENT?

A) PERFORMANCE APPRAISAL OR REVIEW


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B) REGULAR MEETINGS WITH BOSS TO REVIEW PROGRESS

C) ASSESSMENT OF TRAINING AND DEVELOPMENTAL NEEDS


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D) PERSONAL DEVELOPMENT PLANS

E) PAY BASED ON PERFORMANCE RATINGS


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QUES 4 HAVE YOU CARRIED OUT ALL THE REQUIREMENTS OF YOUR OWN

ORGANISATIONS PM ARRANGEMENTS IN THE LAST YEAR.


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QUES 5 IF YES, WHAT ACTIONS WERE CARRIED OUT AS A RESULT?

A) IMPLEENTED A PROGRAMME OF SELF DEVELOPMENT.

B) RECEIVED A PAY RISE

C) IDENTIFIED CAREER DEVELOPMENT


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D) AGREED IMPROVEMENTS TO BE DONE

QUES 6 PLEASE INDICATE THE EXTENT TO WHICH YOU AGREE OR DISAGREE

WITH THE FOLLOWING SATATEMENTS

A) I HAVE THE AUTHORITY TO DETERMINE MY WORK OBJECTIVES


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B) I RECEIVE A LOT OF FEEDBACK ON MY PERFORMANCE


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C) THE MOST IMPORTANT THING ABOUT MY JOB IS PAY


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D) HARD WORK IS NOT NECESSARILY RECOGNIZED OR REWARDED IN MYORGANIZATION.


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E) MY ORGANISATION VALUES MY CONTRIBUTION


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F) I FULLY UNDERSTAND MY ORGANISATIONAL GOALS AND OBJECTIVES


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G) I KNOW WHAT IS EXPECTED OF ME BY MY ORGANISATION


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H) MY WORK OBJECTIVES ARE UNREALISTIC AND DIFFICULT TO ACHIEVE


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I) I HAVE THE AUTONOMY OVER THE WORK I PERFORM


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J) MY ORGANISATION IS COMMITTED TO MY TRAINING AND DEVELOPMENT


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K) MY ORGANISATION COMMUNICATES WELL


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L) MY WORK COLLEAGUES AND I HAVE RESPECT FOR EACH OTHER


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M) I FEEL I AM CONSTANTLY BEING COMPARED WITH MY WORK

COLLEAGUES


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N) MY WORK COLLEAGUES AND I WORK AS A TEAM


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QUES 7 PLEASE INDICATE THE EXTENT TO WHICH YOU AGREE AR DISAGREE

WITH THE FOLLOWING STATEMENTS REGARDING PM AS IT APPLIES TO YOU

PERSONALLY IN YOUR CURRENT ROLE.

A) PM HELPS ME TO DO MY JOB BETTER


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B) PM HELPS ME TO DEVELOP MY SKILLS & POTENTIAL

C) THE OBJECTIVE & PERFORMANCE STANDARDS AGREED WITH MY

MANAGER ARE REALISTIC


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D) I GET USEFUL FEEDBACK FROM MY PM REVIEW

E) ASSESSMENT OF MY PERFORMANCE STANDARDS ARE CONSISTENT, FAIR

AND UNBIASED


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F) I FEEL MOTIVATED AFTER A REVIEW MEETING

G) I DO NOT UNDERSTAND HOW MY BOSS DECIDES MY RATING


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H) BOSSES GIVE THE BEST RATING TO PEOPLE THEY LIKE

I) I FULLY UNDERSTAND HOW MY OBJECTIVES & STANDARDS RELATE TO

THE BUSINESS NEEDS


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J) I HAVE RECEIVED ADEQUATE TRAINING IN PM

K) TIME SPENT ON PM IS WORTH WHILE


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FINDINGS

From the various graphs and diagrams we are able to judge a few things that

employees feel about the current performance appraisal process. These findings are

based on the total research process and the analysis. These findings will help tomake recommendations that could be implemented to improve and increase

efficiency of the system.

According to employees:

Pay is an important part of performance management.

Performance management slightly distracts people from more important core

activities.

They feel that performance management should not be distanced as far as

possible from compensation

Performance management helps improve performance also along with

developing careers.

People strongly agree that performance management has value for

individuals along with the organization.

Performance management motivates people.

They think that annual appraisals are more effective than bi-annual

appraisals.

Self-appraisal plays a very important role.

The first and foremost step of performance management system should be

objective setting.

Coaching and mentoring should be introduced in a system.

Performance management according to them includes:

Performance appraisal


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Assessment of training and developmental needs

Personal development plans

Pay based on performance ratings.

Around 90% of the employees surveyed carried out the requirements related to

performance management and as a result received a pay rise,

agreed improvements to be done.

Employees at Minda have the authority to determine their work objectives.

Employees disagree that the most important thing about their job is the pay.

They agree that hard work is recognized or rewarded in their organization.

Employees slightly disagree that the organization is committed to theirtraining and development.

Employees agree that performance management develops their skills and

potential.


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LIMITATIONS OF THE STUDY

1. The scope of the project is limited to the Minda Corporation Ltd

2. The time for the project is not sufficient to undergo all the procedures.

3. Employees may face time constraint while giving information.

4. Budget might be a constraint.


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CONCLUSION

Performance management system should be developed in order to

improve the over all performance of employees. It should include the

following steps:

a) Performance planning

b) Performance monitoring or review

c) Performance rating

d) Performance rewarding

e) Performance developing

A) PERFORMANCE PLANNING

It enables the employees to develop role clarity and provides a sense of

direction. It also provides a norm or standard against which employees

can review their performance.

Objective:

I. To set clear performance goals for each employee.


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II. To ensure commitment to perform

III. To enable objective performance appraisal

B) PERFORMANCE MONITORING / REVIEW

Monitoring well means consistently measuring performance and

providing ongoing feedback to employees and work groups on their

progress toward reaching their goals. The performance

review should be conducted quarterly by the immediate superior to

encourage performance, for raising the resources or for any course

corrections in which the appraisee will offer his assessment of

accomplishment of the activities. He would analyze his performance by

identifying the Facilitating and Inhibiting factors.

The Facilitating factors are those factors, which have helped in

accomplishing the objective.

The Inhibiting factors are those factors, which have prevented

accomplishing the objectives.

This will include self-appraisal and performance appraisal.


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Objective:

I. To assess accomplishment of the planned goals/ targets/ activities.

II. To provide a rational basis for rewards

III. To identify training and development needs

C) PERFORMANCE RATING

Rating means evaluating employee or group performance against the

elements and standards in an employees performance plan and

assigning a summary rating of record.

Objective:

I. Final assessment in the form of ratings or assignments of points

becomes very useful for development as well as administrative

decisions.

II. Once the ratings are available, it is easy to identify individuals who

can perform certain functions well or those who have demonstrated

certain managerial and human capabilities.


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D) PERFORMANCE REWARDING

Rewarding means recognizing employees, individually and as members

of groups, for their performance and acknowledging their contributions

to the organizations mission. Rewards

should be in monetary as well as non-monetary terms. Rewards having

recognition / prestige but having no financial value should be envisaged

for those types of exemplary performance which

may not have a bearing on the Performance appraisal ratings directly.

This may be in the form of appreciation (in writing) by superior, or head

of the division.

Objective:

I. To provide motivation for sustaining / improving performance.

II. To ensure that annual increments are strictly on the basis of merit i.e.

performance against targets.


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PERFORMANCE DEVELOPMENT

Developing in this instance means increasing the capacity to perform

through training, giving assignments that introduce new skills or higher

levels of responsibility, improving work

processes, or other methods. Giving them appropriate training sessions

should develop those employees who have failed to give desirable

results. Providing employees with training and

developmental opportunities encourages good performance, strengthens

job-related skills and competencies, and helps employees keep up with

changes in the workplace, such as the

introduction of new technology. Performance development plans should

be made in order to improve employees overall performance


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BIBLIOGRAPHY

SOURSES are:

Websiteswww.google.com

www.citehr.com

www.ask.com

www.articles911.com

Magazines

Human capital

icfai journals

Books:

which are full of information on performance management System and

its tool are also secondary data for the research.

Documents

projecton PMS