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AMITY BUSINESS SCHOOL
SUMMER INTERNSHIP REPORT
ON
TO STUDY THE EFFECTIVENESS OF PERFORMANCE
MANAGEMENT SYSTEM AT DABUR INDIA LIMITED
Submitted BySubmitted ByTanya Sharma
M.B.A (HR) 2008-2010(A0102308288)
UNDER THE GUIDANCE OF INDUSTRY GUIDEMr. ASHOK K .GUPTA
Dy .Manager-HRDabur India limited
Sahibabad (UP)
FACULTY GUIDE: Shikha Mishra
Faculty guide(abs)
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ACKNOWLEDGEMENT
Words often fail to express inner feelings of gratitude and indebtedness to one’s
benefactors, but then it is the only readily available medium through which the
undersigned can express her sincere thanks to all those who are associated with her
work in one way of the other. Completing a task is never one man effort. It is often the
result of invaluable contribution of number of individuals in a direct or indirect
manner that helps in sharing a making of success.
I feel it my profound privilege to express my most sincere gratitude and indebtedness
to my project guide Mr. Pawan Ponia, HR Officer who was instrumental in providing
my direction, constant encouragement and co-operation in my attempt to take this
project to its logical conclusion.
I also want to thank Mr. Ashok.K.Gupta Dy.Manager-HR for having granted my this
wonderful opportunity to pursue my summer project at DABUR . And to all the
respondents who featured in my survey but remain as nameless entities, I present a
deep bow of gratitude. And also to all those who have been of help directly or
indirectly but have not featured here.
I would like to thank all my teachers at Amity business school and especially my
mentor Ms.Shikha Mishra without whose support this summer training would not
have been possible.
In brevity, it was pleasure working in the organization, which provided me the most
congenial environment for learning.
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Certificate from company
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CERTIFICATE OF APPROVAL
This is to certify that Tanya Sharma of MBA HR 2010, Enroll. No. A0102308288 has
worked under my guidance for summer internship project. She has submitted this
project titled “A study on the Effectiveness of Performance Management System at
Dabur India Limited .
The information provided is authentic and has not been submitted elsewhere.
Ms Shikha Mishra
Faculty
Amity Business School
Amity University
Uttar Pradesh
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DECLARATION
I Tanya Sharma, student of Masters of Business Administration from Amity Business
School, Amity University Uttar Pradesh hereby declare that I have done summer
internship Project on “TO study the effectiveness of Performance Management
System at Dabur India Limited.” as part of the course requirement.
I further declare that the information presented in this project is true and original to
the best of my knowledge.
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UNDERTAKING
I solemnly declare that this report on Effectiveness of Performance Management
System of Dabur India Limited has been compiled by me and has not been copied
from any student /researcher/employee in any university/institution/organization or
any other pace of distance learning under my knowledge.
I have duly acknowledged the sources of primary data wherever they have been used
in the project.
TANYA SHARMA
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ABSTRACT
My report is an attempt to Study the Performance Management System practiced in
DABUR INDIA LIMITED. The performance depends on the BBO(business building
objectives) This system is very effective as it sets a clear direction for contribution of
each individual in the organization. They are more tangible business targets and are
measurable.
Objective setting is an important part of performance management. The characteristics
of a good objective (BBO) can be summed up by the acronym SMART.
S- Specific
M- Measurable
A- Action oriented
R-realistic
T- Time bound
The broad objective is to study the effectiveness of Performance Management System
practiced in organization and the effect of introduction of (BBO) by virtue of level of
understanding amongst the employees about the concept and how far have they
accepted the concept of business building objective (BBO). I also intend to find out
what all apprehension do they have regarding the (BBO).
I started my project with the detailed study of the concept regarding BBO before
understanding how DABUR performed the exercise. For this I read books,
research papers, articles, etc.
Secondly I interacted with my industry guide in order to understand what the
objectives due to which top management were thought of implementing BBO.
I made a questionnaire on the topic to know what the employees of DABUR
actually feels about the BBO and its effectiveness, which can help in building
organizational growth as well as employee satisfaction.
Finally I compiled my research with the help of SPSS.
I also gave my recommendations as to what all steps can possibly be taken to
improve the exercise to make it more efficient and acceptable by the employees.
CONTENTS
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Declaration……………………………………………..Certificate………………………………………………Acknowledgement……………………………………...Abstract…………………………………………………
S.NO. TITLE Page No.
1. INTRODUCTION
To the topic.
To the company profile.
Practice of Performance Management System at Dabur.
7-12
13-25
26-27
2. Literature review 28-32
3. RESEARCH METHODOLOGY
33-36
4. DATA ANALYSIS 37-59
5. CONCLUSION & RECOMMENDATION 60-61
6. BIBLIOGRAPHY
7. ANNEXURE
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INTRODUCTION
HUMAN RESOURCE MANAGEMENT
Human Resource Management (HRM) is a process of bringing people and
organization together so that the goals of each are met. It is that part of the
management process which is concerned with managing Human Resources in an
organization. Simply put, Human Resource Management is a management function
that helps manager’s recruit, select, train, and develops members for an organization.
“Human Resource Management is a series of integrated decisions that
from the employment relationship: their quality contributes to the ability of
organization and the employees to achieve their objective”
“Human Resources Management is concerned with the people dimension in
management. Since every organization is made up of people, acquiring their service,
developing their skills/ motivating them to higher levels of performance and ensuring
that they continue to maintain their commitment to the organization are essential to
achieving organization objectives. This is true, regardless of the type of organization–
government business, education, health, recreation, or social action”
Performance Management -
Performance management system is the process of performance planning ,
performance monitoring and coaching , measuring individual performance linked to
organizational goals, giving him or her feedback, rewarding the individual based on
his or her achievements against set performance goals and required competencies ,
and working out a plan for his or her development.
Performance management is a forward looking process for setting goals and
regularly checking progress toward achieving those goals. A key aspect of
performance management is performance measurement. Whatever the process being
driven with performance management, clear and concise measures are required in
order to properly define the desired goals. Most performance management systems
fail to achieve the desired goals of the process owner or project sponsor because goal
measurement is ambiguous, not specific enough, poorly communicated or because
results cannot be measured effectively. Performance management is often confused
with performance appraisal the latter only forming the final part of the performance
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management cycle. Performance appraisal is a backwards looking process and lagging
indicator of financial performance, only measuring what happened in the past.
Performance management is a forward looking process and a leading indicator of
financial performance because it drives a system or organisation towards a desired
future goal.
Performance -
Performance is what is expected to be delivered by an individual or set of individuals
within a time frame.
Individual performance = ability X motivation x organisational support +or-
chance factors.
Ongoing Activities of Performance Management
Achieving the overall goal requires several ongoing activities, including
identification and prioritization of desired results, establishing means to measure
progress toward those results, setting standards for assessing how well results were
achieved, tracking and measuring progress toward results, exchanging ongoing
feedback among those participants working to achieve results, periodically reviewing
progress, reinforcing activities that achieve results and intervening to improve
progress where needed. Note that results themselves are also measures.
Basic Step –
The following steps occur in a wide context of many activities geared towards
performance-
1. Review organizational goals to associate preferred organizational results in
terms of units of performance, that is, quantity, quality, cost or timeliness.
2. Specify desired results for the domain -- as guidance, focus on results needed by
other domains (e.g., products or services need by internal or external customers)
3. Ensure the domain's desired results directly contribute to the organization's
results
4. Weight, or prioritize, the domain's desired results
5. Identify first-level measures to evaluate if and how well the domain's desired
results were achieved
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6. Identify more specific measures for each first-level measure if necessary
7. Identify standards for evaluating how well the desired results were achieved
(e.g., "below expectations", "meets expectations" and "exceeds expectations")
8. Document a performance plan -- including desired results, measures and
standards
9. Conduct ongoing observations and measurements to track performance
10. Exchange ongoing feedback about performance
11. Conduct a performance appraisal (sometimes called performance review)
12. If performance meets the desired performance standard, then reward for
performance (the nature of the reward depends on the domain)
The performance management has two clear objectives-
The evaluation objective:
◙ Performance evaluation and assessment of the readiness of an individual to take
on higher responsibilities.
◙ To provide feedback to individuals on their performance levels and on current
competency levels.
◙ To generate data required for decisions on salary, bonus and promotions.
The Development Objective:
◙ To counsel and coach subordinates so that they improve their performance and
develop competencies.
◙ To motivate subordinates through recognition and support.
◙ To strengthen supervisor subordinate relations.
◙ To diagnose individual and organization competencies, so that actions can taken
on problem areas.
◙ To define the training requirements based on individual competency.
The performance management system process helps organisations do
the following:
◙ Define the performance requirements at individual level.
◙ Align the organisation efforts to meet the organization goals by setting targets at
individual levels.
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◙ Reviewing the performance during the course of the year and take required
action to ensure performance.
◙ Evaluate individual performance and development requirements.
◙ Provide feedback to individuals on performance and development requirements.
◙ To take decisions on salaries, promotions, job transfers, training and
development of individuals.
Why PM is important
Performance management matters to everyone who wants to see local communities
better served by councils and their partners. Managers can use it to ensure that
services are improving and are more efficient. Councillors can use it to ensure that
policy decisions are being carried out and citizens are being well served. Increasingly,
citizens and partners can use aspects of performance management, such as public
reporting, to hold the council to account.
Performance management is about good management, ensuring that your community,
organisation and team goals are achieved. It helps to:
ensure local authorities provide value for money
motivate and manage staff
identify and rectify poor performance at an early stage
Increase user and public satisfaction.
PERFORMANCE APPRAISAL-
In simple terms, Performance Appraisal may be understood as the assessment
of an individual’s performance in a systematic way, the performance being measured
against such factors as job knowledge, quality and quantity of output, initiative,
leadership abilities, supervision, dependability, co-operation, judgment, versatility,
etc.
A formal definition of Performance Appraisal is :
“It is the systematic evaluation of the individuals with respect to his or her
performance on the job and his or her potential for development”
Thus under Performance Appraisal, we not only evaluate the performance of a worker
but also his potential for development.
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Objectives of Performance Appraisal
The main purposes of employee assessment are :-
Training, and Transfers have been effective or not. Performance is concerned
and to assist them with constructive criticism and guidance for the purpose of their
development for dialogue between the superior and the subordinate, and improves
understanding of personal goals and concern When to Appraise the appraisals are
conducted whenever the supervisor or personnel managers feel it necessary. However
systematic appraisals are conducted on a regular basis, say for example every six
months or annually.
Who’s performance should be rate?
To the question as to whose performance should be rated?
That is, who can be Rate?
The answer is obviously – Employees!
And when we say employees, it may be individual, group, teams, or division.
Who are Raters ?.
Raters are immediate Supervisors, specialists from HR Department, Subordinates,
Peers, Committees, Clients, Self-appraisals, or a combination of several.
PROCESS OF PERFORMANCE APPRAISAL
Performance Appraisal is a nine step process:-
Step 1 In this step the performance standards are established based on the Job
Description and Job Specification. The standards should be clear, objective and
incorporate all the factors.
Step 2 Under this step, the Performance Standards are informed to all the employees
including Appraisals.
Step 3 In this step, the instruction given to appraisal are followed, measurement of
employee performance by the appraisers through observation, interview, records and
reports are done.
Step 4 This step finds out the influence of various internal and external factors on
actual performance.
Step 5 This step is to comparing the actual performance with that of other employees
and previous performance of the employee and others.
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Step 6 The sixth step of Performance Appraisal Process, the actual performance is
measured with the standards and finding out deviations.
Step 7 The seventh step compares, the actual performance of the employee and other
employees doing the same job and discuss with him about the reasons for the positive
or negative deviations from the pre-set standards as the case may be.
Step 8 This step suggest necessary changes in standards, job analysis, internal and
external environment.
Step 9 The last step is the follow-up of performance appraisal report. This step
includes guiding, counseling, coaching and directing the employee or making
arrangements for the training and development pf the employee in order to ensure
improved performance.
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COMPANY PROFILE
INTRODUCTION
The name ‘Dabur’ was Originally attached with Ayurveda but over the period of time
it succeeded in diversifying its business. ‘Dabur’ is the oldest consumer brand in India
and well recognized across the country over the period of 100 years established in
1884 by Dr.S.K.Buraman for making healthcare products. Dabur has varieties of
product portfolio. It has four Strategic Business Unit (SBU) i.e. Consumer Care
Division (CCD), Consumer Health Care Division (CHD), Food Business Division
(FBD), International Business Division (IBD)
Dabur India Ltd is one of the largest FMCG Company in India with interests in
Health Care, Personal Care and Food Products. Over more than 100 years, it has been
dedicated to provide nature-based solutions for a healthy and holistic lifestyle.
Through its comprehensive range of products, it touches the lives of all consumers, in
all age groups, across all social boundaries. And this legacy has helped the company
to develop a bond of trust with their consumers that guarantees them the best in all
products carrying the Dabur name.
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FOUNDER
Founding Thoughts
"What is that life worth which cannot bring comfort to others”
COMPANY HISTORY
YEAR EVENT DETAILS
1884 Birth of Dabur The birth of Dabur in a small kolkatta pharmacy,
where Dr. S.K. Burman launches his mission of
making health care products.
1896 Setting up a
manufacturing plant
With growing popularity of Dabur products, Dr.
Burman expands his operations by setting up a
manufacturing plant for mass production of
formulations.
Early
1900s
Ayurvedic Medicines Dabur enters the specialized area of nature-based
Ayurvedic Medicines, for which standardized
products are not available in the market.
1919 Establishment of
Research Laboratories
The need to develop scientific processes & quality
checks for mass production of traditional ayurvedic
medicines leads to establishment of Research
Laboratories.
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1920 Expands further Dabur expands further with new manufacturing
units at Narendrapur & Daburgram. The distribution
of Dabur products spreads to other states like Bihar
& the North-East.
1936 Dabur India (Dr. S.K.
Burman) Pvt. Ltd.
Dabur becomes a full-fledged company- Dabur
India (Dr. S.K. Burman) Pvt. Ltd.
1972 Shift to Delhi A new manufacturing plant is set up in temporary
premises in Faridabad, on the outskirts of Delhi.
1979 Sahibabad
factory/Dabur Research
Foundation
Commercial production starts in the new Sahibabad
factory of Dabur, one of the largest & best equipped
production facilities for ayurvedic medicines.
Launch of full-fledged research operations in
pioneering areas of health care with establishment
of the Dabur Research Foundation.
1986 Public Limited
Company
Dabur India Ltd. Comes into being after reverse
merger with Vidogum Limited.
1992 Joint venture with
Agrolimen of Spain
Beginning a new chapter of strategic partnerships
with international businesses, Dabur enters into a
joint venture with Agrolimen of Spain. This new
venture is to manufacture & market confectionary
items in India.
1993 Cancer treatment Dabur enters the specialized health care area of
cancer treatment with its oncology formulation
plant at Baddi in Himachal Pradesh.
1994 Public issues Dabur India Ltd. raises its first Public Issue. Due to
market confidence in the company, shares issued at
a high premium are oversubscribed 21 times.
1995 Joint Ventures Extending its global partnerships, Dabur enters into
joint ventures with Osem of Israel for food &
Bongrain of France for cheese & other dairy
products.
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1996 3 separate divisions For better operation & management, 3 separate
divisions created according to their product mix-
Health Care Products Division, Family Products
Division & Ayurvedic Specialties Limited.
1997 Food
Division/Project
STARS
Dabur enters full-scale in the nascent processed
foods market with the creation of the Food division.
Project STARS (Strive To Achieve Record Success)
is initiated to give a jump-start to the co. &
accelerate its growth performance.
1998 Professionals to
manage the co.
With changing demands of business & to inculcate
a spirit of corporate governance, the Burman family
inducts professionals to manage the company. For
the first time in the history of Dabur, a non-family
professional CEO sits at the helm of the company.
2000 Turnover of
Rs1,000 Crores
Dabur establishes its market leadership status with a
turnover of Rs. 1000 Crores.
2003 Dabur emerges
Pharma Business
Dabur India approved the demerger of its
pharmaceuticals business from the FMCG business
into a separate co. as a part of plans to provide
greater focus to both the businesses.
2004 Dabur acquires
Balsara
As part of its inorganic growth strategy, Dabur India
acquires Balsara’s Hygiene & Home Products
Businesses, a leading provider of Oral Care &
Household Care products in the Indian markets, in a
Rs 143 Cr all-cash deal.
2005 Dabur announces
bonus after 12 years
Dabur India announced issue of 1:1 bonus share to
the shareholders of the co., i.e. one share for every
one share held.
2006 Dabur crosses $2
Bin Market Cap,
adopts US GAAP
Dabur India crosses the $2-billion mark in market
capitalization. The company also adopted US
GAAP in line with its commitment to follow global
best practices & adopt highest standards of
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transparency & governance.
2007 Celebrating 10
years of Real
Dabur India unveiled the new packaging & design
for Real at the completion of 10 years of the brand.
The new refined modern look depicts the natural
goodness of the juice from freshly plucked fruits.
2007 Foray into
organized retail
Dabur India announced its foray into the organized
retail business through a wholly-owned subsidiary,
H&B Stores Ltd. Dabur will invest Rs 140 Cr by
2010 to establish its presence in the retail market in
India with a chain of stores on the Health & Beauty
format.
2008 Dabur foods
merged with Dabur
India
Dabur India decides to merge its wholly-owned
subsidiary Dabur Foods Ltd with itself to extract
synergies & unlock operational efficiencies. The
integration will also help Dabur sharpen focus on
the high growth business of foods & beverages, &
enter newer product categories in this space.
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COMPANY DETAILS
1. Group Companies :
With a basket including personal care, health care and food products, Dabur
India Limited has set up subsidiary Group Companies across the world that can
manage its businesses more efficiently. Given the vast range of products, sourcing,
production and marketing have been divested to five leading group companies that
conduct their operations independently:
1 Dabur UK
2 Dabur Nepal
3 Dabur Egypt
4 Dabur Oncology
5 Newu
2. Dabur Worldwide :
Dabur's mission of popularizing a natural lifestyle transcends national
boundaries. Today there is global awareness of alternative medicine, nature-based and
holistic lifestyles and an interest in herbal products. Dabur has been in the forefront of
popularizing this alternative way of life, marketing its products in more than 50
countries all over the world.
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3. Dabur Manufacturing Facilities in India
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DABUR INDIA LTD.
DABUR PRODUCTS
Categories:
1 Health Care
2 Home Care
3 Personal Care
4 Ayurvedic Specialties
5 Foods
6 International Range
HEALTH CARE PRODUCTS
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Dabur's Health Care and Range has a wide selection of herbal products, to provide
complete care for varying individual needs. It derives its products from the time-
tested heritage of Ayurveda, backed by the most modern scientific test and trials,
which ensure unfailing quality and safety in anything you pick.
Dabur Health Care Products Range:
1. Health Supplements
Dabur Chyawanprash
Dabur Chyawanprakash
Dabur Chyawanshakti
Dabur Chyawan Junior
Glucose-D
2. Digestives
Quit worrying about what all that yummy food will do to your stomach - keep
your digestion toned up with Dabur's range of Digestives. These Ayurveda-based
herbal solutions aid digestion as well as cure distressing stomach disorders, safely and
instantly.
1 Hajmola
2 Hajmola Candy
3 Pudin Hara( Liquid & Pearls)
4 Pudin Hara G
5 Dabur Hingoli
3. Natural Cures
Dabur's Natural Cures - natural and effective remedies for your everyday
health care. Made with Ayurveda-based medicinal and therapeutic herbs to give you
safe alternatives for a wholesome life.
1 Bhringraj Ayurvedic Tail
2 Super Thanda Tail
3 Badam Tail
4 Active Blood Purifier
5 Shilajit Gold
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6 Nature Care
7 Sat Isabgol
8 Shilajit
9 Shankha Pushpi
10 Sarbyna Strong
4. Baby Care
Give your baby the safe and tender care of nature - with Dabur's baby range of
products made with ayurvedic herbs and plant extracts. It makes your baby’s body fit
and healthy from within, and gives him the right foundation to become No. 1 in life.
1 Dabur Lal Tail
2 Dabur Janma Ghunti
HOME CARE PRODUCTS
Home Care Product Range:
1 Odomos
2 Odonil
3 Sanifresh
4 Odopic
5 Dazz
PERSONAL CARE PRODUCTS
1. Hair Care Oil
Whether you wear them long and dark, or prefer them light and bouncy, your
hair needs constant care. That's easy, if you give your hair the natural treatment. With
Dabur's range of herbal Hair Care products, to make your hair grow healthy, lustrous
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and full of life.
1 Amla Hair Oil
2 Amla Lite Hair Oil
3 Vatika Hair Oil
4 Anmol Sarson Amla
2. Hair Care Shampoo
Whether you wear them long and dark, or prefer them light and bouncy, your
hair needs constant care. That's easy, if you give your hair the natural treatment. With
Dabur's range of herbal Hair Care products, to make your hair grow healthy, lustrous
and full of life.
1 Vatika Henna Conditioning Shampoo
2 Vatika Anti-Dandruff Shampoo
3 Vatika Root Strengththening Shampoo
3. Skin Care
1 Gulabari Rose Water
2 Gulabari Face Freshener
3 Gulabari Hydrating Rose Cream
4 Gulabari Hydrating Rose Lotion
5 Vatika Fairness Face Pack
6 Vatika Saffron Glow Soap with Sandal
4. Oral care
Oral Care is critical, not just for a radiant smile, but also because unhealthy
gums and teeth can lead to other serious health problems. A routine of oral care with
regular brushing, flossing and rinsing is a must. So make it your routine, with help
from Dabur’s range of Oral Care products, designed to suit every individual’s special
needs.
1 Dabur Red Toothpaste
2 Babool Toothpaste
3 Meswak Toothpaste
4 Promise Toothpaste
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5 Dabur Lal Dant Manjan
6 Dabur Binaca Toothbrush
DABUR FOODS
“Where necessity is the mother of invention”
About Dabur Foods
Dabur Foods, a 100% subsidiary of US $ 3 billion Dabur Group realized the
potential of the processed & packaged food industry (4th largest in the world), began
operations as a separate division in the year 1999. It established brands in a market
where the barrier to accept packaged food is high, and the fledging processed food
industry was in a nascent stage in India. Today, Dabur Foods has kept its promise not
only to the Indian consumers but to the world by providing them the very best
products in packaged food class.
Dabur Foods has now turned into a leading food marketing company that along
with product also provides a range of services to its consumers:
1. Providing choice: A range of leading brands to choose from – Real Fruit
Juice, Coolers, Hommade, Lemoneez and Capsico.
2. Providing services: The dedicated food services division that partners various
institutions and develops customized products to serve the needs of these
institutions.
3. Redefining exports: A unique exporter who develops market across the world
benefiting them with the authentic taste of traditional Indian juices and paste.
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Vision
Dedicated to the Health and Well Being of every Household.
Mission
“To be the leader in the Natural Fruits and Beverages Industry.”
Striving to deliver this by:
1 Consistently delighting the consumer through quality products.
2 Being the company of choice for business partners.
3 Delivering higher returns to stakeholders.
Guiding Principles
1 Ownership
2 Passion for Winning
3 People Development
4 Consumer Focus
5 Team Work
6 Innovation
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PERFORMANCE APPRAISAL SYSTEM FOLLOWED IN
DABUR INDIA LIMITED
In DABUR INDIA LTD they have system of Performance Appraisal of their
employees. The main objective of this Performance Appraisal System is to evaluate
the performance, promote their employees and to arrange for various training
programs. If they require foe enhancing their skill in their respective areas and in
contribution enhancement.
Employees are evaluated by how well they accomplish a specific set of objectives that
have been determined to be critical in the successful completion of their job. This
approach is frequently referred to management by objective but company has given it
the name as BBO which stands for Business Building Objectives.
Business Building objectives help to set s clear direction for contribution of individual
in the organiqation.It can be consisting of 4 steps –
1) Goal setting.
2) Action planning.
3) Self control.
4) And periodic reviews.
Dabur use very constructive Performance Appraisal process while evaluating its
employees. Its evaluation is based on quantitative wise and objective wise. Company
set goals to its employee by properly reporting with its employees and then evaluating
them unto what extent it has been achieved and if there is failure in reaching the target
what are the cause and reason behind it. Every evaluator has his or her own value
system which acts as a standard against which appraisal are made.
Outcomes of Performance Appraisal
A five scale is used for rating the contribution along each business building
objectives:
RATING SCORE
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a) Outstanding (OS) 5
b) Strong (ST) 4
c).Good (GD) 3
d) Satisfactory (SF) 2
e) Below Expectation (BE) 1
a) Outstanding – if the performance evaluated by the Management turns out to be
outstanding .if the employee performs in such a way as to collect 3 consecutive
outstanding performances into his / her credit, he / she get promoted.
b) Strong – if performance evaluated by the management turns out to be strong .If
the employee performs in such a way as to collect 3 consecutive strong
performance into his/her credit, he /she gets promoted.
c) Good – if the performance evaluated by the Management turns out to be good
then the management send the employee to the training program to improve
his /her skill to perform.
d) Satisfactory – if the performance evaluated by the management turns out to be
satisfactory then management try to find reasons and give solutions according to
the problem.
e) Below Expectation – if the performance evaluated by the management turns out
to be below average. And if the employee collects 3 below average to his/her
credit, he /she dismissed.
Duration of Appraisal System:
Time constraints enable the employee to show or project his/her capabilities in
terms of performance as per the duration allowed. Performance Appraisal System
carried out annually (April to march)
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LITERATURE REVIEW
Articles summary
According to T V Rao the concept of performance appraisal has changed over the
years. Performance has been usually equated with annual appraisals which measure
the entire year’s effort of an employee in terms of numbers. Drawing from his own
experiences of designing Integrated HRD systems for various companies, the author
stresses upon the importance of understanding the nature, potential, and complexities
of performance management systems (PMS). Evaluating an employee’s performance
on the basis of numbers assigned by another appraiser without an awareness of the
context in which the ratings are assigned could inflict serious injustice to the
performer. It should be Change from ‘Appraisal’ to ‘Management’ and focus on
“Contributions and Improvement”PMS should be recognized as comprehensive multi
dimensional system. The time allocate should be adequate and legislated and if
required it can be planned into the company calendar. The whole process should be
decentralized .PMS should be a part of the budgeting process and integrate with other
systems of the company and for this technology can be used as support
PMS must be implemented rigorously and it should be given it the seriousness it
deserves .The outlook has to shift from an annual exercise to the on-going activities.
Appraisal focuses on ratings while improvements focus on work, stakeholders, service
levels, productivity, motivation effort and all such performance-related variables
According to Changrui Ren the importance of performance management in supply
chains has long been recognized from a variety of functional disciplines. But much of
the work has focused on designing performance measures with less concern for the
other stages of the entire performance management process. In this paper, an
integrated, efficient and effective performance management system, "active
performance management system", is presented. The system covers the entire
performance management process including measures design, analysis, and dynamic
update. The analysis of performance measures using causal loop diagrams, qualitative
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inference and analytic network process is mainly discussed in this paper. A real world
case study is carried out throughout the paper to explain how the framework works. A
software tool, supply chain performance analyzer, is also introduced. Some related
topics and further research directions are discussed as concluding remarks.
According to Derek Stockly Human resource management is directly related to the
overall performance of the organization. Identifying and planning for training can be
linked to many corporate processes. Many important initiatives are undertaken by
organizations. These can include technology upgrades, quality processes, industrial
issues and the like. Total quality management, benchmarking, re-engineering and the
move to self-managing teams, are all concerned with performance. In human
resources management, training, performance management (including performance
appraisal and salary administration), recruitment and selection, and employee
relations' activities are all concerned with performance. Each makes an important
contribution. The first step to a sound organization is to keep all programs and
initiatives aligned to a framework of increased performance. This ensures that each
activity complements the others occurring at the same time. The relationship between
internal and external factors is also important.
If organizations lose sight of the basic goal of performance improvement, if they treat
these or other programs as the ends rather than the means, then they are doomed to
difficult times, if not outright failure.. The first step to a sound organization is to keep
all programs and initiatives aligned to a framework of increased performance. This
ensures that each activity complements the others occurring at the same time. The
relationship between internal and external factors is also important. Within the
performance framework, the second step is to achieve the best outcome from each
activity. Improvements and achievements can be made in all areas, even the
traditional ones such as training. A co-coordinated approach understood by staff leads
to confidence. Confidence leads to trust. Trust provides the foundation for a positive
cultural environment, which in turn provides the driving force necessary to achieve
performance improvements.
The article that I have found on ebscohost.com says that High demand and
competition for employee and managerial talent has led to increasing interest in
understanding the potential benefits of using high-performance work systems
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(HPWS) as a means to maximize firms’ competitive advantage. HPWS refer to a
group of separate but interconnected HR management practices, including
comprehensive recruitment and selection procedures, incentive compensation and
performance management systems, and extensive employee involvement and training,
which are designed to enhance employee and firm performance outcomes through
improving
Workforce competence, attitudes, and motivation. the key purpose of this research is
to provide an initial examination of the cross-level linkages between establishment
level shows and employee-level outcomes, as mediated by establishment level climate
the primary contribution involves the amalgamation of research on HPWS,
organizational climate, and employee attitudes, which provides a more explicit
integration of micro and macro views of the management of human resources in work
organizations
In this article Graham Yemm has given ideas to become better at getting the
performance manager want from their teams. In order to manage people for
performance you need to clearly establish what good performance is for each person
and role defining good performance not only means setting up of goals it include what
the outputs and results are - and how they are being achieved. Managing for
performance is an ongoing process and not an occasional intervention or snapshot.
Performance Appraisal usually reviews past behavior and so provide an opportunity to
reflect on past performance. But to be successful they should also be used as a basis
for making development and improvement plans and reaching agreement about what
should be done in the future. The authors talk about the common mistake made by
organization when they say that they have performance appraisal in their organization
but this is not the case .then the author has given the way out, how to apply complete
Performance management system Firstly, everyone should have clearly defined
standards of performance and/or key performance indicators (kepi’s). These are same
for all those doing similar roles and provide a baseline for performance. There are two
types of these - the quantitative and the qualitative. Make sure you think of this as a
key priority - so give it time! Make sure that the kepi’s are clearly stated, written
down and everyone has a copy.. As your team members work through their action
plans and you have your regular reviews. During these reviews ask for what needs to
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be improved, what has gone well and what is going to happen next. When the goal is
achieved, carry on and set the next goal, get the action plans - and continue as before.
Then the author has reminded that people just want to know what is expected of
them, be given the support to do it and then told how they are doing. will give you the
performance.
According to By: Ola Kazeem Falodun Performance appraisal as a positive part of
the performance management process has come a very long way in the history of
human resource management. Performance appraisal is one of the central pillars of
the performance management which is directly related to the organizational
performance and have a direct and significant impact on it. Performance appraisal has
been, and is still the strength of performance management,.
The main focus of this work is centered on Assessing critically how the formal
appraisal system can contribute to the performance management process
Identifying and explaining a range of methods of appraisal, considering their
objectives and limitations. Explaining how an appraisal system can be successfully
introduced and maintained within an organization. Analyzing an appraisal system in
an organization
In carrying out this work, the researcher discovered that there is a strong relationship
between performance appraisal and performance management, it can affect the
organizational performance both positively and negatively, and should be dealt with
care and expert knowledge and experience.
OBJECTIVE AND RESEARCH METHODOLOGY
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Research is an organized inquiry designed and carried out to provide information to
solve the problem. The fact, search is an art of scientific investigation of a certain
problem. “Research is the process of systematically obtaining accurate answers to
significant and pertinent questions by the use of the scientific methods gathering and
interpreting information”
SIGNIFICANCE
The main significance of the project is to identify the level of motivation, job
satisfaction and performance among the employees after & before the
conduction of Performance Appraisal Exercise.
MANAGERIAL USEFULNESS OF THE STUDY
To point out and suggest the organization to adopt remedial actions to remove
those loopholes, aiming to improve the productivity and RESEARCH
METHODOLOGY
OBJECTIVE
To study the Employee Satisfaction.
To study the Organizational Growth.
To study the Performance Appraisal Program.
To study the effectiveness of three different factors and to find which
factor among the three is less effective.
SCOPE OF THE STUDY
To find out the loopholes (if any) in the Performance Management
System at Dabur India Ltd.
To have an overlook over the changes and improvements made in the
Company
METHODOLOGY
Research Methodology is a way to systematically solve the research problem
involving a study of various steps that are adopted by the researcher in studying
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his/her research problem. Qualitative and quantitative technology to get the required
data and interpreted.
Data Collection
There are two methods for collecting the data. They are:
1) Primary Data
2) Secondary Data
1. Primary data :
There are several methods of collecting Primary data. These are given below.
A- Observation method: The observation method is the most commonly used method
especially in studies relating to behavioral sciences. Under the observation method the
information is sought by way of investigator’s own direct observation without asking
from the respondent.
B:- Interview method: The interview method of collecting data involves presentation
of oral verbal and stimuli reply in terms of oral verbal responses. This method can be
used through personal interviews and if possible through telephonic interviews.
C:- Questionnaires;- This method of data collection is quite popular particularly in
case of enquiries. It is being adopted by private individuals, research purposes,
private and public organizations and even by governments. In this method
questionnaires are sent to the persons of concern with the request to answer the
questions and return the questionnaires. The respondents have to answer the questions
on their own.
In this project I have used questionnaires as one of the primary sources of collecting
data.
2. Secondary Data
When an investigator uses the data that has been already collected by others is
called Secondary Data. The secondary adapt could be collected from Journals,
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Reports and various publications, web sites. The advantages of the secondary data can
be- it is economical, both in terms of money and time spent.
Sample Designing
Type of Sampling: Random sampling technique was adopted to choose the
respondents for the sample. This technique was used keeping in view the scope of the
study, which try to cover different departments.
Sample Size: The sample size taken into consideration includes simple of around 80
related people in various different departments
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LIMITATIONS
Every Study suffers from certain limitations and so does this project. So, the
applicability of the findings and recommendations is subjected to the following
mentioned constraints/limitations
Respondents were reluctant to give their views on data or open to other
Shortage of time duration for the research work
Hiding of some true facts by the respondents due to the fear of the management
Though care has been taken, judgment errors may have occurred
Employees being very busy did not get enough time to give responses whole-
heartedly
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ANALYSIS AND INTERPRETATION
Question 1
Frequency Table
Performance Management System is essential for the success of the employees of the company.
Frequency PercentValid Percent
Cumulative Percent
Valid Neither agree nor disagree 4 5.0 5.0 5.0
Agree 39 48.8 48.8 53.8
Strongly agree 37 46.2 46.2 100.0
Total 80 100.0 100.0
Bar Chart
Analysis and Interpretation
In DABUR INDIA LIMITED 49% employees agree that Performance Management
System is essential for the success of the employees of the company and 46%
employees strongly agree to the above fact where as 5% employees were not able to
decide whether they agree or not .There were options of disagree and strongly
disagree provided but non of the employee disagreed to the fact that Performance
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Management System is an essential for the success of employee of the company.
Question 2
Frequency Table
The Performance provides opportunity for each appraises to know what the Management really expect out of him.
Frequency Percent Valid PercentCumulative Percent
Valid Disagree 1 1.2 1.2 1.2
Agree 38 47.5 47.5 48.8
Strongly agree 41 51.2 51.2 100.0
Total 80 100.0 100.0
Bar Chart
Analysis and Interpretation
From the above analysis I came to know 51% of the employees strongly agree and
47% of employees agree that Performance provides opportunity for each appraises to
know what the management really expects out of them. Whereas only 1% disagreed to
the above statement which is a very small number to make any significance. This
concludes that they understand and agree to the fact that the performance does
provide them the opportunity to know what the management wants and expects from
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them.
Question 3
Frequency Table
You are satisfied with the existing Performance Appraisal method followed in
the company.
Frequency Percent Valid PercentCumulative Percent
Valid Agree 48 60.0 60.0 60.0
Strongly agree 32 40.0 40.0 100.0
Total 80 100.0 100.0
Bar Chart
Analysis and Interpretation
It is cleared from the analysis that the whole population were satisfied with the
Performance Appraisal Method followed in the company as 60% employees agree to
the fact and 40% strongly agree to this. This can be a biased answer as well because
the employees will hesitate to voice their opinions against the management.
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Question 4
Frequency Table
Do you agree that self appraisal prior to Performance Appraisal facilitates you to get high rating?
Frequency Percent Valid PercentCumulative Percent
Valid Disagree 1 1.2 1.2 1.2
Neither agree nor disagree
7 8.8 8.8 10.0
Agree 36 45.0 45.0 55.0
Strongly agree 36 45.0 45.0 100.0
Total 80 100.0 100.0
Bar Chart
Analysis and Interpretation
From the above data I came to know almost 90% employees are either agree or
strongly agree that Self Appraisal prior to Performance Appraisal facilitates to get
high rating whereas 9% of employees were not clear about their views and only 1%
disagree to it. This shows that a big majority does agree to the statement but nearly
10% also is not sure which shows us signs of confusion in the mind of the employees.
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Question 5
Frequency Table
In your opinion are you capable of achieving the goals set for you.
Frequency Percent Valid PercentCumulative Percent
Valid Disagree 3 3.8 3.8 3.8
Neither agree nor disagree
12 15.0 15.0 18.8
Agree 44 55.0 55.0 73.8
Strongly agree 21 26.2 26.2 100.0
Total 80 100.0 100.0
Bar Chart
Analysis and Interpretation
The bar chat shows that 26% of employees strongly agree and 55% agree to the fact
that they are capable of achieving goals set foe them by the management where are
4% of them were disagree from the above fact and 15% of them were not clear about
their views. This very clearly shows us that the majority understand and think they are
capable of achieving their goals but a good number of employees are confused again
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with a few who think the management expect a bit too much from them.
Question 6
Frequency Table
Your Performance Appraisal has scope for assessment of job related competencies as well as personality dimension.
Frequency PercentValid Percent
Cumulative Percent
Valid Strongly Disagree 9 11.2 11.2 11.2
Disagree 5 6.2 6.2 17.5
Neither agree nor disagree 7 8.8 8.8 26.2
Agree 43 53.8 53.8 80.0
Strongly agree 16 20.0 20.0 100.0
Total 80 100.0 100.0
Bar Chart
Analysis and Interpretation
The above analysis exhibits that 54% employees agree and 20% strongly agree to the
fact that their Performance Appraisal has scope foe assessment of job related
competencies as well as personality dimension but 11% and 6% employees disagree
and 8% of them were confused. This is a very interesting fact that we have here,
which shows us that more than half of the employees are agree to the statement but
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are not very confident about it and about one forth of employee totally going with the
statement. But the major facts which shows the cracks in the confidence of the
employees is the 17% of the figure who do not agree to the statement, which is a
number is not very big but for a firm like this its important to understand the fact that
negativism spreads more quickly than positivism.
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Question 7
Frequency Table
The drive for growth in the organization is the most common motive for conducting Performance Appraisal in the organization.
Frequency PercentValid Percent
Cumulative Percent
Valid Strongly Disagree 1 1.2 1.2 1.2
Neither agree nor disagree 10 12.5 12.5 13.8
Agree 31 38.8 38.8 52.5
Strongly agree 38 47.5 47.5 100.0
Total 80 100.0 100.0
Bar Chart
Analysis and Interpretation
In these diagram we see that 47.7% employees strongly agree , 38.8 % simply agree,
10% are not sure and finally 1.2% don’t agree to the statement which says that thee
drive for growth in the organization is the most common motive for conducting
Performance Appraisal in the organization. What we see from these charts is
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something very peculiar and different from other results, which is the fact that more
employees strongly agree than just agree. This means that the employees have a lot of
confidence in the statement but on the other hand we also see that 10% of the
employees also are confused suggesting that the Company is not very effective in
explain to the employees the importance of Performance appraisal, but the ones which
understood the concept are very clear in the minds about the programme
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Question 8
Frequency Table
Performance Management System paves way for career growth and opportunities.
Frequency PercentValid Percent
Cumulative Percent
Valid Strongly Disagree 5 6.2 6.2 6.2
Disagree 3 3.8 3.8 10.0
Neither agree nor disagree 11 13.8 13.8 23.8
Agree 39 48.8 48.8 72.5
Strongly agree 22 27.5 27.5 100.0
Total 80 100.0 100.0
Bar Chart
Analysis and Interpretation
The above bar chart shows that 49% of employees agree and 27% strongly agree to
the fact that Performance Management System helps the employees in creating career
growth and opportunity for themselves but 4% were disagree and 6% strongly
disagree to it and 14% employees neither agree nor disagree to this fact. This graph
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also has a unique fact other graphs didn’t which was the increased number of
employees disagreeing to the statement which is a noticeable 10%, which comprises
of % strongly disagreeing to the statement. Over to that we also see another nearly
14% not sure either way , which if looked at together with the disagree figures, seems
to be a very disturbing figure for the Co. This represents to us that the employees
think that they have unwillingly accepted the Performance Appraisal Programme
instead of taking it is a career growth move.
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Question 9Frequency Table
Were all the employees educated about the Business Building Objectives and were they
aware of Appraisal ratings.
Frequency Percent Valid Percent
Cumulative
Percent
Valid Strongly Disagree 7 8.8 8.8 8.8
Disagree 4 5.0 5.0 13.8
Neither agree nor disagree 12 15.0 15.0 28.8
Agree 41 51.2 51.2 80.0
Strongly agree 16 20.0 20.0 100.0
Total 80 100.0 100.0
Bar Chart
Analysis and Interpretation52% of employees did agree and 20% strongly agree to the fact that they were having
properly educated about the Performance Appraisal System followed in the company
but 5% were disagree and 9% were strongly disagree to the above fact but 15%
employees were neither agree nor disagree . This also shows us the lack of
management’s communication with the employees which has resulted in a very high
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number of strongly disagree (nearly 10%) as well as another 5 % disagree. Clearly the
management is to be blamed for this as the total number of the not agree to the
statement have risen to a total of nearly 30% which is not acceptable under any
circumstances.
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Question 10
Frequency Table
There is fair connection between pay and performance.
Frequency PercentValid Percent
Cumulative Percent
Valid Strongly Disagree 3 3.8 3.8 3.8
Disagree 2 2.5 2.5 6.2
Neither agree nor disagree 3 3.8 3.8 10.0
Agree 30 37.5 37.5 47.5
Strongly agree 42 52.5 52.5 100.0
Total 80 100.0 100.0
Bar Chart
Analysis and Interpretation
The frequency table interprets that 52%of the employees strongly agree and 37%
agree that there is a fair connection between pay and performance but 4% employees
strongly disagree and 2% disagree to the above fact. This also shows us a very
positive aspect of the company’s implication of policies and procedures as only 6% of
the people are not saying yes to the statement that they gets remunerated fairly to the
amount of work they do. Also more than half of employees are strongly agreeing to
the statement which reflects that they are very happy with the pay scale.
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Question 11
Frequency Table
Are you satisfied with Performance Appraisal system in your department .
Frequency PercentValid Percent
Cumulative Percent
Valid Disagree 1 1.2 1.2 1.2
Neither agree nor disagree 11 13.8 13.8 15.0
Agree 38 47.5 47.5 62.5
Strongly agree 30 37.5 37.5 100.0
Total 80 100.0 100.0
Bar Chart
Analysis and Interpretation
From the 80 respondents 30 employees were strongly agree and 38 were agree to the
fact that they are very much satisfied with the Performance Appraisal System being
carried in their department but among 80, 11are neither in the favor nor against it and
only 1 of them were disagreed. This represents that majority of the employees are
satisfied with the PAP but there is still room for doubt as 10% employees are again in
disarray whether to go for or against the statement, with a negligent 1% unsatisfied.
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Question 12
Frequency Table
In your opinion , maintaining a proper appraisal system in the organization
will increase the morale of the employees.
Frequency Percent
Valid
Percent
Cumulative
Percent
Valid Strongly Disagree 1 1.2 1.2 1.2
Neither agree nor disagree 5 6.2 6.2 7.5
Agree 42 52.5 52.5 60.0
Strongly agree 32 40.0 40.0 100.0
Total 80 100.0 100.0
Bar Chart
Analysis and Interpretation
The above bar chart shows that from the 80 respondents 42 and 32 were agree and
strongly agree to the fact that maintaining a proper appraisal system in the whole
organization will surely increase the moral of the employees but 1 of them strongly
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disagree to this fact and 5 of them were not clear about their views. This represents to
us that 74 out of 80 employees are going for the statement which clearly shows that
they understand that proper appraisal system is needed to increase their morale but 5
employees yet cannot make up their mind; this means the organization is able to
communicate with the employees but not very effectively.
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Question 13
Frequencies
In case your appraisal is not up to the mark , your superior corrects you.
Frequency PercentValid Percent
Cumulative Percent
Valid Strongly Disagree 4 5.0 5.0 5.0
Disagree 3 3.8 3.8 8.8
Neither agree nor disagree 9 11.2 11.2 20.0
Agree 49 61.2 61.2 81.2
Strongly agree 15 18.8 18.8 100.0
Total 80 100.0 100.0
Bar Chart
Analysis and Interpretation
In the diagram we see that 49 employees are agreeing to the statement while another
15 strongly agree but on the darker side we see that 3 employees not are agree with
another 4 strongly disagreeing, and the rest 9 who cant take a decision that if in a
situation their appraisal is not up to the mark their supervisors correct them. Thus if
we add the numbers we see that a total of 20 % employees do not agree to the
statement, which is not a very bog number but can’t also be neglected. Where as a
good number of 80 % still go in favor of the statement.
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Question 14
Frequency Table
The training that the organization provides you at the time of joining is effective .
Frequency PercentValid Percent
Cumulative Percent
Valid Strongly Disagree 7 8.8 8.8 8.8
Disagree 4 5.0 5.0 13.8
Neither agree nor disagree 7 8.8 8.8 22.5
Agree 27 33.8 33.8 56.2
Strongly agree 35 43.8 43.8 100.0
Total 80 100.0 100.0
Bar Chart
Analysis and Interpretation
Here we see that a high number of 43.8% strongly agree and another 33.8% agreeing
to the statement that training provided at the time of joining is effective for them. But
on the other darker side we also see that 4 employees out of 80 disagree while another
7 strongly discarding the statement which makes it a total of 13.8% not agreeing to
the statement, with another 7 still people confused. This is another point of concern
for the management as it seems that they have not been able to completely satisfy all
the employees with the type and method of training provided to them at the point
when they started their job.
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Question 15
Frequency Table
How do you recognize the best performance in your organization.
Frequency PercentValid Percent
Cumulative Percent
Valid Monetary rewards 33 41.2 41.2 41.2
Recognition among peers 1 1.2 1.2 42.5
Career advancement 26 32.5 32.5 75.0
All the above 20 25.0 25.0 100.0
Total 80 100.0 100.0
Bar Chart
Analysis and Interpretation
Here we see the three different types of recognition that can be provided by the
management to its employees. As we see monetary rewards top the list with 41.2%
employees choosing it, next stands career advancement which is at 32.5% , where as
recognition amongst peers look to be very discarded and only been opted by 1 in 80
employees and finally another 20 believe all of those are important. Thus for the
employees money is the most important thing and while career advancement coming
later and all round recognition following closely behind it.
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Question 16
Frequency Table
Are you satisfied with the company as a place to work.
Frequency PercentValid Percent
Cumulative Percent
Valid Agree 33 41.2 41.2 41.2
Strongly agree 47 58.8 58.8 100.0
Total 80 100.0 100.0
Bar Chart
Analysis and Interpretation
This is a another very good picture to see from any point of view be it for prospective
employees, current employees or the management’s, as we see that 100% employees
agree that Dabur is a satisfactory place to work where nearly 60 % employees
strongly agreeing to the same. This also shows us that the employees are very
satisfied with the overall effort of the company to keep the employees happy and
make it a good place of work for them. The best thing about it is that not even 1
employee even opted for neither nor which shows a very high level of satisfaction in
the eyes of the employees.
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CHI-SQUARE TEST
kχ2 = Σ ( Oi – Ei ) i=1 Ei
χ2 = Chi square.
Oi = Observed Value.
Ei = Expected Value.
K = Number of categories.
Df = ( k-1 )
Frequencies
TES
Observed N Expected N Residual1 7 96.0 -89.02 6 96.0 -90.03 29 96.0 -67.04 221 96.0 125.05 217 96.0 121.0Total
480
TOG
Observed N Expected N Residual1 10 80.0 -70.0
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2 8 80.0 -72.03 41 80.0 -39.04 186 80.0 106.05 155 80.0 75.0Total
400
PAP
Observed N Expected N Residual1 53 80.0 -27.02 14 80.0 -66.03 54 80.0 -26.04 191 80.0 111.05 88 80.0 8.0Total
400
Test Statistics
TES TOG PAP
Chi-Square 5.289E2a 3.558E2b 2.268E2b
df 4 4 4
Asymp. Sig. .000 .000 .000
a. 0 cells (.0%) have expected frequencies less than 5. The
minimum expected cell frequency is 96.0.
b. 0 cells (.0%) have expected frequencies less than 5. The
minimum expected cell frequency is 80.0.
Analysis
In the above statistical test some assumptions were taken to get the correct results.
The assumptions are as follows:
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Null Hypothesis –on the bases of all 3 factors the employees are satisfied with the
Performance Management System.
Alternative Hypothesis –on the bases of all 3 factors the employees are not satisfied
with the Performance Management System.
Since the calculated value of Chi square in all 3 factors are lower than the table value
(table value = 9.49 at 4 degree of freedom) the null hypothesis is accepted. But in this
degree is different so the most effective factor for Performance Management is TES
then TOG then PAP. For the effectiveness of Performance Management System the
organization should concentrate more on PAP.
CONCLUSION
The conclusion can be drawn after going through graphs, and the result of the test
that my null hypothesis has been accepted which is, all employees are satisfied by
existing Performance Management System .As the study has been divided in three
parameters .Employee Satisfaction (TES), Organisational Growth (TOG), and
Performance Appraisal Program (PAP) and to assess which parameter is the most
effective. The reason of using TOG was that the organisational growth is very much
connected to the effectiveness of the management, as company can’t grow until they
have a proper management system which is also interlinked with TES as the
employees working for the company. Employees should also be happy and satisfied
with their work, and if they are not it clearly represents that the company is being
poorly managed. The reason of choosing PAP as my third and last parameter was
because if a company doesn’t have a proper appraisal programme i.e. the people don’t
receive the appreciation for their work in monetary and non monetary terms, the
satisfaction at work will again decrease causing problem s to the company, on a
longer run and also making the company to less likely place for perspective
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employees. And after applying the chi square test it came out that Employee
Satisfaction is the most effective followed by Organisational Growth and the
management needs to work upon Performance Appraisal Program.
Even though the Performance Management System is Effective but the data analysis
also reflects that the people don’t receive the appreciation for their work in monetary
and non monetary terms, the satisfaction at work will again decrease causing problem
s to the company, on a longer run and also making the co to less likely place for
perspective employees.
RECOMMENDATION
1. The company should come out with a better Performance Appraisal Program
as the study reflected that there is less acceptance in employee regarding
existing Performance Appraisal Program.
2. The evaluating system must be biannually instead of annually .As it will be an
added advantage for both organisation as well as employee in terms of
communication being frequently done.
3. Make a system of giving periodic feedback thus it will help in achieving
higher target for its employees.
4. Company should make an effort to align the outcomes of Performance
Appraisal System to identify the Training and Development needs.
BIBLIOGRAPHY:
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Articles:
1. LESSONS FROM EXPERIENCE: A NEW LOOK AT PERFORMANCE
MANAGEMENT SYSTEM By: T V Rao (VIKALPA VOLUME 33 NO 3 JULY –
SEPTEMBER 2008)
2.ACTIVE PERFORMANCE MANAGEMENT BY Changrui Ren
Dept. of Autom., Tsinghua Univ., Beijing, China;
3.HUMAN RESOURCE ISSUES NEEDS CONSTANT ATTENTION By :Derek
Stockly
5.THROUGH THE LOOKING GLASS OF A SOCIAL SYSTEM: CROSS-
LEVEL EFFECTS OF HIGH-PERFORMANCE WORK SYSTEM ON
EMPLOYEES’ ATTITUDES
6. MANAGING PEOPLE FOR PERFORMANCE By Graham Yemm
7.PERFORMANCE APPRAISAL AS A POSITIVE PART OF THE
PERFORMANCE MANAGEMENT PROCESS
(A Case of Mofas Shipping-Line)
By: Ola Kazeem Falodun
KINGSGATE Ireland , March 2008
ANNEXURE
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QUESTONNAIRE
Dear Respondent,Iam a student of AMITY BUSINESS SCHOOL, NOIDA.This questionnaire is a part of study on performance management system. I assure you that the information provided by you will be kept confidential and it will be used for the academic purposes.
1. Performance Management System is essential for the success of the employees of the company
1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree
.
2 The Performance provides opportunity for each appraises to know what the Management really expect out of him.
1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree
5. Strongly Agree
3. You are satisfied with the existing Performance Appraisal method followed in the company.
1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree
.
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4. Do you agree that self appraisal prior to Performance Appraisal facilitates you to get high rating .
1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree
.
5. In your opinion are you capable of achieving the goals set for you.
1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree
.
6. Your Performance Appraisal has scope for assessment of job related competencies as well as personality dimension.
1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree
.
7. According to you is drive for growth in the organization the most common motive to conducting Performance Appraisal in the organization.
1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree
.
.
8 Performance Management System paves way for career growth and opportunities.
1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree
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.
9. Were all the employees educated about the Balance Score Card and were they aware of Appraisal ratings.
1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree
.
.
10 There is fair connection between pay and performance..
1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree
11. Are you satisfied with performance appraisal system in your department.
1. Strongly Disagree 2. Disagree 3. Neither Agree nor Disagree 4. Agree 5. Strongly Agree
12. In your opinion , maintaining a proper appraisal system in the organization will increase the morale of the employees.
1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree
13. In case your appraisal is not up to the mark , your superior corrects you.
1. Strongly Disagree2. Disagree
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3. Neither Agree nor Disagree4. Agree5. Strongly Agree
14. The training that the organization provides you at the time of joining is effective .
1. Strongly Disagree2. Disagree3. Neither Agree nor Disagree4. Agree5. Strongly Agree
15. How do you recognize the best performance in your organization.
1. Monetary reward 2. Recognition among peers 3. Career advancement 4. All the above 5. None of the above
16. Are you satisfied with the company as a place to work.
1. Strongly Disagree2. Disagree3. Neither agree nor disagree4. Agree5. Strongly Agree
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