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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. SubramanianHead – 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
I
Introduction 1
II Statement of the Problem
IIIScope
ObjectiveNeed for the Study
IV Review of Literature
V
Methodology and Limitations of Study5.1 Research Design5.2 Data Source5.3 Research Approach / Instrument5.4 Sample Design5.5 Statistical Tools5.6 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 respondents2 Gender of the respondents 3. Marital status of the respondents4. Educational qualification of the respondents 5. Work Experience of the respondents 6. Income Range of the respondents7. Respondents on Department wise8. Respondents on Designation wise
9. Respondent’s view on the Individual Objective Setting
10. Agreement of the respondents on the outcome of the objectives
11. The agreement level of respondents on their Job12. The frequency of the Performance Appraisal Program
13. The preference ranking of the criterion level of Assessing the performance of the employees
14. The purpose of the Performance Appraisal Program
15. The extent of Self-Development by the Performance Appraisal Program
16. The agreement level on the implication of Performance Appraisal System
17. The awareness of the usage of the Appraisal Data by the HR Department
18. The kind of remedial measures taken based on the Performance Appraisal Program
19. The agreeableness of the Performance – Related Pay
20a. The respondent’s receipt of the Performance – Related pay
20b. Table represents the kinds of Performance Related Pay
21a. The existence of Periodic Review21b. The frequency of Periodic Review
22. Satisfaction Level of Performance Management System
LIST OF STATISTICAL TOOLS
STATISTICAL TOOL PURPOSE PAGE NO.
ONE WAY ANOVA
To establish if there is significant difference between the agreement levels of the respondent towards
various criteria on the job.
KOLOGROV-SMNROV TEST
The preference ranking of the criterion level of Assessing the performance of the employees
RANK CORRELATION
To find if there is any association between Analytical ability and
Technical Ability
LIKERT SCALE
The agreement level on the implication of Performance Appraisal
System
ONE WAY ANOVA
To establish if there is significant difference between the agreement level of the respondent towards the
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 centre2. 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
Scales5. Forced choice description method6. Forced distribution method7. Check lists8. Free form essay method9. Critical incidents10. Group appraisal11. 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
Purpose
Application
Factors rated
Techniques
Post – appraisal interview
Merit rating
Determine qualification forwage increase, transfer, promotion, lay-off
For hourly – paid worker
Heavy emphasis upon personal traits
Rating scales with simphasis upon scales, statistical manipulation of data for comparison purposes,
Superior communicated his rating to employee and tries to sell his evaluation to him ; seeks to have employee conform to his view
Employee appraisal
Development of the individual ; improved performance on the job ; and provided emotional security
For technical, professional, and managerial employee
Results, accomplishment performance
Mutual goal – setting, critical incidents ; group appraisal ; performance standards ; less quantitive
Superior simulates employee to analyse himself and set own objectives in line with job requirements superior is helper
Evaluation and detailed job description
Defined performance standardsDevelopment of coaching andCounseling skills Evidence of actual performance
Management of marginal Development
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
Job Performance Assessment
Performance Development
Appraisal Intative and target setting
Action Planning
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 SpecificM 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 Sampling
Stratified Random Sampling
Systematic Sampling
Cluster Sampling
Sequential Sampling
Multi – Stage Sampling
Quota Sampling
Convenience Sampling
On – the – spot 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.
n6∑di
2
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
[email protected] 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.
10%
80%
3%7%
Below 25
26 – 30
31 – 40
Above 40
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
22%
22
78%
0
20
40
60
80
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
57%
43%
Single
Married
TABLE – 4
EDUCATIONAL QUALIFICATION OF THE RESPONDENTS
Educational Qualifications No. of Respondents Percentage
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
22%
12%
4%61%
1%B.Com / Graduated
C.A. InterMBA
CA
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.
23%
63%
3% 11%
Below 6 months
Betw een 6 – 12 months
Betw een 1 & 2 years
Above 2 years
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.
27%
31%
19%
18%5%
Below 10,000
10,000 – 20,000
20,001 – 30,000
30,001 – 40,000
Above 40,000
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.
21%
35%20%
12%
12%Healthcare
PMS
Lighting
Consumer Electronics
Administration
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.
33%
26%
24%
9% 8%Officer – Financial Services
Executives
Asst. Manager
Manager
Others
TABLE – 9
RESPONDENT’S VIEW ON THE INDIVIDUAL OBJECTIVE SETTING
Setting Individual Objectives based on No. of Respondents Percentage
Key Result Areas 23 23%
Performance Standards set 43 43%
Expected Performance development 34 34%
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.
23%
43%
34%
0%0%
10%
20%
30%
40%
50%
Key Result Areas PerformanceStandards set
ExpectedPerformancedevelopment
Others
TABLE – 10
AGREEMENT OF THE RESPONDENTS ON THE OUTCOME OF THE OBJECTIVES
Major Objectives which provides a basis for central decision making and
to boost morale
No. of Respondents Percentage
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.
33%
66%
1% 0%0%
10%
20%
30%
40%
50%
60%
70%
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 X2
2 X3 X32 X4 X4
2 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
126X1
2
3522X2
302X2
2
18390X3
52X3
2
766X4
18X4
2
88X5
2X5
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 = T 2 / N = (500) 2 / 22 = 11363.6
Step 2:
Total sum of squares
TSS = X12 + X2
2 + X32 + X4
2 + 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 Variation
Sum of Squares
Degrees of Freedom Variance F
BSS 10660 5 – 1 = 4 10660/4 = 2665 2665 / 43.8 = 60.8ESS 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
CRITERIA / AGREEMENT LEVEL
LIKERT SCALE
STRONGLY AGREE AGREE
NEITHER AGREE
NOR DISAGREE
DISAGREE HIGHLY DISAGREE
T = WEIGHTAGE
OF RESPONSE /
TOTAL RESPONDENTS2 1 0 -1 -2
Very High Mental stress
RESPNONSE 12 60 20 7 175 / 100 = 0.75WEIGHT 24 60 0 -7 -2
Monotony of Work
RESPNONSE 34 52 11 3 0 117 / 100 = 1.17WEIGHT 68 52 0 -3 -Frequent Updation
of knowledge
RESPNONSE 21 59 15 5 0
96 / 100 = 0.96WEIGHT 42 59 0 -5 -
High level of team leaders
assistance
RESPNONSE 25 69 4 1 1
116 / 100 = 1.16WEIGHT 50 69 0 -1 -2
Strong support
from sub-ordinates
RESPNONSE 34 62 2 2 0
128 / 100 = 1.28WEIGHT 68 62 0 -2 -
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.
0.75
1.17
0.96
1.161.28
0
0.2
0.4
0.6
0.8
1
1.2
1.4
Ver
y H
igh
Men
tal
stre
ss
Mon
oton
yof
Wor
k
Freq
uent
Upd
atio
n of
know
ledg
e
Hig
h le
vel
of te
amle
ader
sas
sist
ance
Stro
ngsu
ppor
tfro
m s
ub-
ordi
nate
s
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.
66%
11%
23%
0%
10%
20%
30%
40%
50%
60%
70%
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.
CRITERIA / AGREEMENT LEVEL
II III IV VT= WEIGHTAGE OF RESPONSE /
TOTAL RESPONDENTS5 4 3 2 1
Employee Output
RESPNONSE 16 11 24 41 8286 / 100 = 2.86
WEIGHT 80 44 72 82 8
Benefit to the Organization
RESPNONSE 10 3 6 12 69173 / 100 = 1.73
WEIGHT 50 12 18 24 69
Analytical Ability
RESPNONSE 13 8 31 30 18268 / 100 = 2.68
WEIGHT 65 32 93 60 18
Understanding Skills
RESPNONSE 41 29 21 8 1401 / 100 = 4.01
WEIGHT 205 116 63 16 1
Technical Ability
RESPNONSE 20 49 18 9 4372 / 100 = 3.72
WEIGHT 100 196 54 18 4Total 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.
2.86
1.73
2.68
4.01 3.72
00.5
11.5
22.5
33.5
44.5
Employe
e Outp
ut
Benefi
t to th
e Org
aniza
tion
Analyt
ical A
bility
Under
stand
ing Skil
ls
Tech
nical
Ability
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 di2
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 = 5n(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 appraisal program No. of Respondent Percentage
To encourage the employees 49 49%
To promote the employees 21 21%
To identify the strength & weakness of employees 16 16%
To offer apt training programs to the employees 7 7%
To satisfy the company’s norms & regulations 7 7%
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
49%
21% 16%7% 7%
100%
0%
20%
40%
60%
80%
100%
120%
To encouragethe employees
To promotethe employees
To identify thestrength &
weakness ofemployees
To offer apttraining
programs tothe employees
To satisfy thecompany’snorms &
regulations
Others
TABLE – 15
EXTENT OF SELF DEVELOPMENT BY THE PERFORMANCE APPRAISAL PROGRAM
Extent of Self - Development No. of Respondent Percentage
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
47%53%
0%0%
10%
20%
30%
40%
50%
60%
Very great extent Some extent Not at all
TABLE – 16
THE AGREEMENT LEVEL ON THE IMPLICATION OF PERFORMANCE APPRAISAL SYSTEM
CRITERIA / AGREEMENT LEVEL
LIKERT SCALE
Strongly Agree Agree
Neither Agree nor Disagree
Disagree Highly Disagree
T = WEIGHTAGE OF RESPONSE /
TOTAL RESPONDENTS
2 1 0 -1 -2Healthy
Discussions between
appraiser and the appraise
RESPNONSE 17 78 4 1 0
111 / 100 = 1.11WEIGHT 34 78 0 -1 0
Identifying the training needs of
the employee
RESPNONSE 17 81 1 1 0114 / 100 = 1.14WEIGHT 34 81 0 -1 0
Planning promotional / incremental
schemes
RESPNONSE 29 62 2 7 0
113 / 100 = 1.13WEIGHT 58 62 0 -7 0
Reviewing various job
requirements
RESPNONSE 15 74 6 4 198 / 100 = 0.98WEIGHT 30 74 0 -4 -2
Obtaining overall feedback about its functioning
style
RESPNONSE 18 57 23 1 1
9 / 100 = 0.9WEIGHT 36 57 0 -1 -2
Increase Employee
productivity
RESPNONSE 22 74 2 2 0116 / 100 = 1.16WEIGHT 44 74 0 -2 0
Comfortable achievement of the company’s
target
RESPNONSE 23 59 13 2 3
100 / 100 = 1WEIGHT 46 59 0 -2 -3
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.
1.11 1.14 1.13
0.980.9
1.16
1
0
0.2
0.4
0.6
0.8
1
1.2
1.4
HealthyDiscussions
betweenappraiser andthe appraise
Identifyingthe trainingneeds of theemployee
Planningpromotional /incrementalschemes
Reviewingvarious job
requirements
Obtainingoverall
feedbackabout its
functioningstyle
IncreaseEmployee
productivity
Comfortableachievement
of thecompany’s
target
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 X2
2 X3 X32 X4 X4
2 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
141X1
2
2981X2
485X2
2
34171X3
51X3
2
759X4
18X4
2
76X5
5X5
2
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 = T 2 / N = (700) 2 / 31 = 15806.5
Step 2:
Total sum of squares
TSS = X12 + X2
2 + X32 + X4
2 + 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 Variation
Sum of Squares
Degrees of Freedom Variance F
BSS 21063.4 7 – 1 = 6 21063.4/6 = 3510.6 3510.6/47 = 74.7ESS 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 the HR department No. of Respondents Percentage
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.
TABLE – 18
Usage of Appraisal data by the HR department
86%
4%10%
0%
20%
40%
60%
80%
100%
Yes No Not aware
KIND OF REMEDIAL MEASURES TAKEN BASED ON THE PERFORMANCE APPRAISAL PROGRAM
Kind of remedial measures taken based on the performance appraisal program
No. of Respondents Percentage
Plan unique training programmes 26 26%
Offer effective counseling session 44 44%
Restructuring the performance management system 10 10%
Re-organizing the company’s expected standards 7 7%
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.
TABLE – 19
26%
44%
10%7%
0%
13%
0%5%
10%15%20%25%30%35%40%45%50%
Plan uniquetraining
programmes
Offer effectivecounseling
session
Restructuring theperformancemanagement
system
Re-organizing thecompany’sexpectedstandards
Others Unaw are
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.
TABLE – 20a
Agreeableness of Performance Related pay
91%
9%
0%
20%
40%
60%
80%
100%
Agree Disagree
Agreeableness ofPerformance Related pay
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.
TABLE – 20b
Recipient of Performance - related pay
86%
14%
0%
20%
40%
60%
80%
100%
Yes No
Recipient of Performance- related pay
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.
TABLE – 21a
52%
0%
4%
0%
12%
30%
1%
1%
Merit PayIndividual Bonuses
Team Bonuses
Company-wide Schemes
Share Schemes
Incentive GiftsSkill based pay
Others
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.
TABLE – 21b
Existence of Periodic review
96%
4%
0%
20%
40%
60%
80%
100%
120%
Yes No
Existence of Periodicreview
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.
TABLE – 22a
30%
64%
4% 2% Once in 6 months
Once in 1 year
Based on Company’sProfit tenure
Others
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.
TABLE – 22b
83%
5%12%
0%
20%
40%
60%
80%
100%
Yes No Unaware
KIND OF SUCCESSION PLANNING
Kind of Succession Planning No. of Respondents Percentage
Periodic Audit of Existing executives 10 12.05%
Implementation of Effective Appraisal Plans 45 54.22%
Planning of Individual Career Paths 7 8.43%
Organizing of Routine Career Counseling 10 12.05%
Offering of Accelerated Promotion Schemes 6 7.23%
Implementation of Planned Recruitment Policies 5 6.02%
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.
TABLE – 23
12%
55%
8%
12%7% 6% 0%
Periodic Audit of Existingexecutives
Implementation ofEffective Appraisal Plans
Planning of IndividualCareer Paths
Organizing of RoutineCareer Counseling
Offering of AcceleratedPromotion Schemes
Implementation ofPlanned RecruitmentPolicies
Others
SATISFACTION LEVEL OF PERFORMANCE MANAGEMENT SYSTEM
Satisfaction Level No. of Respondents Percentage100% 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
31%
24%
18%
11%13%
1% 1% 1% 0% 0% 0%0%
10%
20%
30%
40%
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 20o 21-30o 31-40o 40 above
3. Gender:o Maleo Female
4. Marital status: o Singleo Married
5. Education: o Graduate o Post Graduateo Others Specify ___________________
6. Work Experience:o Below 1 year o Between 1 & 3 years o Between 3 & 5 yearso Above 5 years
7. Income range (monthly) o Below 10,000o Between 10,000-20,000o Between 20,000-40,000o Between 40,000- 50,000o Above 50,000
8. Grade: o Officer
o Executive o Asst. managero Senior manager
9. How are the individual objectives set in your firm?
o Based on Key Result Areaso 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 teamLeader’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 disagreeHealthy discussion betweenthe appraise and apraiseedeveloping mutual understanding betweenthem ( ) ( ) ( ) ( ) ( )
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 Yeso Noo 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 sessionso 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 Yeso No
If yes, please specify the relevant o Merit payo Individual bonuso Team bonuso 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 Yeso No
If yes please specify the reviewed period o Once in 6months o Once in a yearo 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 Yeso Noo Unaware
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