Final Report-on PMS

8/7/2019 Final Report-on PMS

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PERFORMANCE APPRAISAL SYSTEM

Performance appraisal is a method of evaluating the behavior of employees in the work

spot, normally including both the quantitative and qualitative aspects of job performance. It is the

process of evaluating the performance and qualification of the employees in terms of therequirements of the job for which he is employed, for purpose of administration including

placement, selection for promotions, providing financial rewards and other actions affecting all

members equally. It is the step where the management finds out how effective it has been at

hiring and placing the employees. Performance Appraisal is a process of evaluating an

employees performance of a job for purposes in terms of requirements.

FEATURES OF PERFORMANCE APPRIASAL

Performance appraisal is the systematic description of an employees job relevant

strengths and weaknesses.

The basic purpose is to find out how well the employee is performing the job and

establish a plan of improvement.

Appraisals are arranged periodically according to a definite plan.

Performance appraisal is not job evaluation. It refers to how well someone is doing the

assigned job.

Performance Appraisal is the continuous process in every large scale organization.

COMPONENTS OF APPRAISAL EVALUATION

Performance evaluation can be made for a variety of reasons like counseling, promotion,

research, salary, administration or a combination of these. So it is necessary to begin by stating

very clearly the objectives of the evaluation programs.

WHO WILL APPRAISE

The Appraisal can be accomplished by one or more individuals involving a combination

of the inundate supervisor or Boss and HOD.

WHAT FOR APPRAISE

What of the Performance appraisal means appraising non supervisory employees for

their current performance, and mangers for the future potential.


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WHY FOR THE APPRAISAL

Creating and maintaining a satisfactory level of performance of employees in their

present job.

Highlighting employee needs and opportunities for personal growth and development.

Aiding in decision making for promotions, transfer, layoffs and discharges and promoting

understanding between the supervisor and the subordinates.

WHEN WILL APPRAISE

When answers the query about the frequency of appraisal. In Visaka employees are

formally evaluated half yearly and annually.

HOW TO APPRAISE

How means the company must decide what different method are available and which

of these may be used for performance appraisal. In Visaka Industries the method of appraisal is

BARS.

COMMON RATING ERRORS

Whilst completing the appraisal form, the appraiser is advised exercise caution, as there amy be

several pitfalls which may skew the assessment.

1. Halo Effect

A person outstanding in one area tends to receive outstanding or better than average

ratings in other areas as well, even when such a rating is undeserved.

2. Negative Effect

A low rating in one area is lower than deserved ratings for other accomplishments.

3. Central Tendency

Assigning an average rating for all qualities.

4. Confrontation Avoidance:

Discomfort in giving negative feedback.

5. Initial Performance:

Rating an employee based solely on initial impressions of the performance.


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PERFORMANCE MANAGEMENT SYSTEM

Performance Management is defined as a strategic and integrated process that delivers

sustained success to organizations by improving employee performance through development of

competencies of individual employees and teams.

Performance management systems if properly designed and implemented can change the course

of growth and pace of impact of organizations. Its a process of creating high performance

organization through integration of organizational vision values, goals, strategies and people.

It is a method used to measure and improve the effectiveness of people in work place.

It is an ongoing communication between boss and subordinate in a bid to identify latters core

functions, relevant objective /goals, monitor the performance process and give constructive

feedback and also develop the competency based there on.

Performance management involves - enhancing performance of:

Individuals

Teams & Strategic Business Unit

Entire Organization

Importance of Performance Management

Helps to clarify the mission, vision, strategy and values of the organization.

Helps in improving various business processes.

Helps in attracting and retaining talent.

Facilitates competency mapping, training and development needs.

Assists management in validating their recruitment and selection processes.

Helps employees attain their full potential.

Factors Affecting Performance:

1) Personal Factors: The individuals skill, competence, motivation and commitment.

2) Leadership Factors: The supervisors support, encouragement and guidance.


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3) Team Factors: The quality of encouragement, guidance and support provided by team

leaders and members of the team.

4) System Factors: The system of work and facilities provided by the organization.

5) Contextual Factors: Internal and External environmental pressures and changes.

Features of Performance Management

It is a continuous process: setting goals, observing performance, giving coaching and

counseling, identifying development needs and giving feedback are the continous

activities.

It is a strategic process: The individual goals are linked to the strategic goals of the

organization.

It is an integral approach: Links various aspects of HRM

RECRUITMENT AND

SELECTION

HUMAN RESOURCE

PLANNING

INDUSTRIAL

RELATIONS

PERFORMANCE

MANAGEMENT

TRAINING AND

DEVELOPMENT

MENTORING AND

COUNSELING

REWARD

MANAGEMENT


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PERFORMANCE MANAGEMENT Vs PERFORMANCE APPRAISAL

S.No PERFORMANCE APPRAISAL PERFORMANCE MANAGEMENT

1. Annual Exercise. Continuous process.

2. Emphasis is on ratings and evaluation. Emphasis is on performance planning, analysis,

review, development and improvement.

3. Rewards, recognition may be based on

the ratings.

Performance based pay is generally an integral

part of the system.

4. KPAs or KRAs are used for bringing

in objectivity.

KPAs and KRAs are used as planning

mechanism.

5. Ownership is mainly with the HR

department.

Ownership is with the line manager.HR

facilitates its implementation.

6. Development needs are identified at

the end of the year on the basis of the

appraisal .

Development needs are identified in the

beginning of the year on the basis of

competence levels required to do job.

7. Emphasis is on relative evaluation of

individuals

Emphasis is on performance improvement of

individual, teams and organization.

THE PERFORMANCE MANAGEMENT SYSTEM IN VISAKA

MODE OF PMS IN VIL:

Self appraisal and immediate boss = reporting supervisor appraisal

FLOWCHART OF PMS:

ACTIVITIES DESCRIPTION RESPONSIBILITY DEADLINE1)ORG. yearly

objective2)Strategic planning

Focus on financial measures viz

Liquidity,Revenue,Profitability&also Market share,Productivity &

customer orientation,

Diversification & Expansion of

the business

Top Management

Unit Level Goals Productivity,OTFD,Quality

improvement, systemdevelopment,cost saving incl.

rejection ratio, people

development,safety/Environment

Top Management &

Unit Head/HODs

28th Feb 2011

Planning to achieve Systematic outlining of activities Unit Head/HODs


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units Priorities to be undertaken to attain the

objectives

Dept level Goals Derived from unit goals / supportrequired by other departments

Unit Head/HODs 31st march

Individual Goals(KRA Setting)

Derived from Dept. goals andfocus on self and subordinate

development

Employees and IB 31st March

Action Plan In PDCA Format-Strategy to

achieve target

Employee 31st March

Periodical Review To refer KRA sheet and

Supportive documents

IB & Employee Half Yearly

Feedback and

Counseling

Discussion on Contribution and

developmental plans

IB During KRA review

PerformanceReward

Performance based increment andpromotion

Top Management &corporate HR

May-June

Career

Advancement

Job Enrichment/Job

Rotation/Career Progression Plan

IB & HOD,

Facilitated by HR

July

Training &

Development

Personal Development Plan IB & HR May

COMPONENTS OF PERFORMANCE MANAGEMENT SYSTEM

I. Performance Planning & Objective Setting

II. Performance Assessment

III. Career Development

IV. Rewards

Purpose of Performance Appraisal

To review the performance of the employees over a given period of time. To judge the gap between the actual and the desired performance. To help the management in exercising organizational control. To diagnose the training and development needs of the future. Provide information to assist in the HR decisions like promotions, transfers etc. Provide clarity of the expectations and responsibilities of the functions to be performed

by the employees.


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To judge the effectiveness of the other human resource functions of the organization suchas recruitment, selection, training and development.

To reduce the grievances of the employees. Helps to strengthen the relationship and communication between superior subordinates

and management employees.

GOAL SETTING:

Goal setting involves establishing specific, measurable and time bound objectives. In business,

goals encourage employees to put in substantial effort in order to meet business objective.

Goal setting influences individual performance in the following way:

1) Goals focus attention towards goal- relevant activities and away from goal-irrelevant

activities.

2) Goals serve as an energizer; higher goals will induce greater effort.

3) Goals influence persistence; higher energy to work around/manage constraints with

regard to resources.

4) Stretch goals, encourages application of cognitive knowledge, innovation, collaboration

and personal commitment in order to accomplish objectives.

Cumulative individual performance, when aligned, impacts the organizational Performance

in a big way.

ORGANIZATIONAL FINANCIAL GOALS:

Liquidity

Profitability

Growth

Factors related to key business purpose & deliverables

Revenue

New product

Market share

Cost effectiveness


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Diversification & Expansion of business

ORGANIZATIONAL NON-FINANCIAL GOALS:

Customer satisfaction

People development

Internal process optimization

Safety and Environment

Critical success factors for business & key deliverables to achieve Non Financial Goals:

1) Customer connect

Feedback mechanism

Response time

Complaint resolution

OTFD (on time full delivery)

Rejection Ratio

Quality

2) People Development

Growth & development of Team

Success planning

Skill Development

3) Internal Process optimization

Inter-departmental Services level agreements

Collaborative goals

Support & adherence to organizational process


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4) Safety and Environment

Initiatives, assuring safety of employees & companys property

Pollution free environment & arresting /reducing depletion of natural resources

KRAs: KEY RESULT AREAS

Goal, when broken down into deliverables against each critical element is called KRA.

Characteristics:

They do not include routine work.

It always focuses on end result but not activities.

They should be written in specific term.

KRA is measurable and frame in time.

Aligned with organizational goal.

Achievable but challenging.

STEPS FOR SETTING KRA:

1) Identify the objectives under the three critical elements that impact the job.

a) To be done along with your reporting supervisor

b) Identify objectives relevant for the job under each of the three elements

c) Ask the following three questions for each of the identified objectives:

Performance: what is the desired outcome?

Process: What will I need to do to achieve it?

Measurement: How will we measure the success?

Selecting Objectives, they should be:

Linked to business priorities- must add value to the larger organization purposes

Linked to results not activities- Outcome driven not activity based.

Comprehensive should cover all performance areas of the role.


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Mutually exclusive-each KRA should address a distinct performance area and not

overlap.

Attainable-Ensure that objectives are stretched and challenging but attainable

Manageable number- Preferably not more than six to seven KRA for a person.

2) Set measurement standards

An element that allows for specific measurement of performance over a definite period of

time.

All areas of performance need to be expressed in measureable terms related to any of the

below:

Time

Quality

Cost

Volume

Percentage improvement

3) Write KRA statement

The KRA statement should be:

S- Specific: clearly specify the scope of job which needs to be done. Not vague or

ambiguous.

M-Measureable: In terms of cost and time, volume, percentage improvement.

A-Attainable: Should be attainable with a stretch

R-realistic: Should be realistically possible within the time frame and resources available

T-Time bound: Exp: Apr 2010- Mar2011

4) Set KRA Weightage

The total weight age of all KRAs is 100.Based on the significance, effort and time

involved and the overall impact of the deliverable, the weight age for individual KRA


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will be decided jointly by the IB and the individual. Weight age is signed to clarify

related importance of each KRA.

During appraisals the rating for each KRA will be based on performance, contributionand weight age assigned

Maximum weight age to KRA is 25%, Minimum weight age to KRA is 10%

Weightage should be given as 10%,15%,20%,25%

5) Setting action plan

The employees will prepare a documented action plan to how to achieve the target.

Action plan provides the how and when for the individual and guides him/her in

fulfilling their defined KRA.

KRA online format

Sr. No KRA Title Description Unit of

measurement(%)

Weight age Annual

Target

1 Absenteeism Reducing

Absenteeismfrom 9% to

6%

% 15% By march

2011

Example:

Action plan for the above KRA could have the following activities

1) Review last 12 months attendance data of habitual absentees in various departments

to know the trend

2) Data about the disciplinary action,

3) Prepare a flow chart for step by step action i.e, right from counseling through various

levels to amend.

Scope for change of KRA

1) In case any KRA is achieved in the mid of the year, the employee can undertake

another KRA in consultation with the IB.


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2) One employee can also be given a new KRA along with other KRAs in the mid of

the year based on the strategic requirement of the department or the organization.

3) In the above cases the weight age can be redistributed among KRAs based on the

magnitude of their contribution to the organizations objectives.

4) In case of change of existing KRA or inclusion of any new KRA in the mid of the

year, the IB or local HR will approach the corporate Super User for changing

the KRA plan of the concerned employee in the system.

PERFORMANCE REVIEW

Objective: To see whether the employee are on the right track viz a viz their

performance goals and to provide adequate resources and support for superior

performance. There are a few environmental factors which influence the

performance of the appraise. The appraise can mention about such factors during

review orally as well as in the review format with a view to get required support

to overcome the hindering factors.

Four facilitating factors:

To identify the factors help employees to reach the level of performance, he/she

achieved in relation to various KRAs and such factors are as follows:

Individual factors- Hard work, knowledge, past experience, competence.

IB Factor- Approachability, fast decision, good guidance, delegation,

support.

Organizational Factors-Flexible policy, staff support, good working

condition, open climate other department support.

External Factors- Liberalization in govt. policies, cooperation from govt.

official due to good rapport, Poor performance of competitors.

Hindering Factors:

Personal Factors- poor health problem or family problem

IB & Environmental factors- Delay in decision making, lack of guidance,

busy boss, resource problem.


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External Factors- Sudden change in economic, social and political climate,

Delay in supplies.

Developing Factors- The IB is to identify developmental needs for better

performance through creating an empathic atmosphere to share and discuss

subordinates tension and concerns and to encourage him with resource andother support for better performance.

METHODOLOGY FOR PERFORMANCE ANALYSIS:

Steps to performance analysis

1) Be prepared

The IB & Subordinates both need to be prepared for the review.

The IB need to fix up the date, timing and place and communicate

the same to subordinate well in advance.

The subordinate before coming for appraisal meeting, need to do

self appraisal and evaluate own achievement of KRAs in the

prescribed review format in HRMS. The subordinates with

relevant data and documents to justify his achievements

The subordinate after assigning himself such rating he/she shouldlist down all factors, help him/ her in accomplishing what ever

he/she has accomplished. Similarly he/she should list out the

factors prevented him or her from doing better performance.

The subordinate should maintain a note book from the begging of

the year to note the facilitating and hindering factors.

The subordinate should assess his strength and weakness and also

to identify the areas of improvement so as to discuss with the IB

for suggestion and finalization of his or her development partduring the review process.

2) IB to conduct performance appraisal meeting

Greet with smiling face


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Start with positive note (mention about the good contribution and

strength shown during the year)

Explain normal distribution curve to the appraise. Give chance to

the appraise to speak about his achievements and shortcomings.

Evaluate each KRA.

Reflect and mutually agree upon the short falls or success.

Discuss and agree upon action plan, support and resource required

for improvement and document the same.

Discuss and agree upon the learning opportunities for upgrading

the skills.

Give a overall feedback on the performance.

Give appropriate rating on each KRA

Express trust and confidence in subordinate and encourage him/her

for overcoming the weakness and bigger contribution.

Confirm the agreement on all issues discuss with subordinates by

documenting the same and by putting the signatures.

3) IB Should no focus on previous year failures and should not criticize with

insulting words

Focus on only how to improve performance

Be specific to the performance related issues.

Give honest feedback

Do not focus on previous year failure area to rate the performance

of the current year.

Do not use discouraging words

4) Get on the record, it is important to document the key points of the

meeting if any one disagree with what was discussed or agreed in the

appraisal, the records can be checked


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PMS PART-II

Evaluation of critical behavior attributes

At present VIL, the performance of an employee is being appraised by the concerned IB on

certain set of identified behavioral skills. It is felt that the job holders must have those behavioral

skills, as the same make the job holder more effective in his role for higher contribution.

In abid to make the job holders, enriched with certain skills at various levels, the PMS will

continue to provide the scope for appraisal of identified behavioral skills of employee along with

KRA review.

The specific behavior skills will be identified every year by the IB in consultation with the

concerned employee and in coordination with the head HR at locations for an employee,

matching to his or her responsibilities and nature of job at the beginning of the year i.e.; whatskills are required for the job holder to discharge his new responsibilities in a superior manner.

The identification of soft skills feedback well as competency review will be done by job holder

and subsequently by IB in the competency template, available in the PMS module in HRMS. The

IB will also give feedback about the rating of behavioral skills to the subordinates during the

performance review .The IB and subordinate will discuss and agree upon the areas of

improvement in behavioral skills with action plan for further improvement.

PMS-PART-III

SELF APPRAISAL:


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Self assessment I

At present in VIL, there is an Employee Self Assessment process in operation in a prescribed

format. The objective is to get feedback about employees achievements in the last financial year

when he/she needs improvement to upgrade his/her competency and knowledge for higher

contribution in the ensuing g year.

This PMS policy will continue to provide the scope of the self assessment process in KRA

template on achievement of own KRA as well as assessment of a set of competencies, identified

for an employee in the competency template available in the PMS module under HRMS.

The training needs can be identified from the early review template, available in PMS module

under HRMS.

Self Assessment-II

The PMS policy provide an opportunity to the employee to assess his/her own contribution

against each KRA in VIL half yearly and yearly performance review and the same will be

reviewed by the IB who will subsequently give his/her own rating based on employees

achievement in the KRA half yearly or yearly template available in PMS module in HRMS.

APPEAL:

1st level:

If the appraise is not convinced with the rating of IB, he/she can

approach the reviewing officer to intervene.

The RO will discuss with the appraise and IB separately initially to

understand the issues and will verify the facts and figures

justifying the level of contribution and rating of the IB

commiserating with quantum of achievement in a specific KRA.

Subsequently the reviewing officer will call both the appraise and


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the IB for a collective discussion to resolve the matter. The

decision of the RO will be binding.

2nd level :

If the appraise is agreed with the decision of the RO, he can

approach the unit head at plant level through unit HR head.

The unit head after going through the relevant data will

take decision and can impress upon the IB and RO for an

amendment of rating, if the unit head feels justified.

Otherwise the rating given by the RO will sustain. The unit

head at branch level will be the final appealing authority

under the PMS to prevail over the IB and RO for redressal

of grievance.

Where the unit head is the IB, if any such appraise is

aggrieved with the rating of his/her IB, will put forth his

grievance before the vice president-technical in case of AC

division and President-Marketing in case of textile

division.The division of these authority wil be considered

as final and will prevail upon the division of the IB.


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METHODOLOGY

OBJECTIVES OF STUDY:

To evaluate the functioning of the Performance Management system in this organization.

To know whether the Performance appraisal system of the organization is able to assess

employees performance correctly.

To understand the pitfalls of Performance appraisal system

To know whether the employees are getting adequate or useful feedback or not.

To know whether the performance of the employees are recognized and whether they are

rewarded for their performance or not.

To understand the KRA setting.


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To understand the effectiveness of performance management over performance appraisal.

METHODOLOGY:-

The total data required for the study has been collected by using primary data andsecondary data. It was made in a systematic manner, as follows.

Primary Data:-

In the due course of the study the primary data was collected through a structured

questionnaire. The questionnaire is one in which all questions and answers are specified. Hence,

there is less scope for the comments made in the own word of the respondents. The questionnaireis prepared.

Secondary Data:-

The secondary data is collected from various sources available with the organizations like

1 Organizational websites

2 Books & Manuals3 Organizations literature (Induction Manual)

Sample Size:

The sample size for Performance Appraisal is 15 & Performance Management system is 30.

Sampling Techniques:

Random & cluster sampling techniques are used.

LIMITATIONS:

The study is conducted with the available data gathered from the organization and

analysis was made accordingly.

The questionnaires for Performance Appraisal were distributed through E-mail so there

was no personal interaction contrary to the Performance Management questionnaires.

The responses for Performance Management system was confined to two locations i.e

Nagpur & Vijayawada Factory, where the PMS was completely implemented.


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COMPANY PROFILE

ORGANIZATION PROFILE

Present activities of the company

The Company is a multi products/location establishment, presently engaged in the manufacture

and marketing of Building Products and Synthetic Blended Yarn.

Brief history of the company


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The Company was incorporated under the Indian Companies Act, 1956 on 18 th June 1981 as

Visaka Asbestos Cement Products Limited. With effect from 9th August 1990, the name of the

Company was changed to Visaka Industries Limited.

The Company has a Rs. 606.35 crores in 2008-09 and it is a dividend paying Company, engaged

in the business of Building Products and Synthetic Blended Yarn.

Process and Technology

The Companys Spinning Unit employs the latest spinning machines based on the Air Jet

Spinning Technology procured from Murata of Japan and Visaka is the biggest leader of Air Jet

spinning in the world with highest productivity and efficiency. The Companys three Asbestos

Cement Sheet Manufacturing Units operating above 100%of capacity utilization with ISI

accreditation .These units employ a continuous technology.

Geographical Coverage of Units

UNIT LOCATION

A.C.DIVISION-1

Patancheru

Andhra Pradesh

A.C.DIVISION-2

Paramathi

Tamilnadu

A.C.DIVISION-3

Midnapore

West Bengal

A.C.DIVISION-4

Tumkur

Karnataka

A.C.DIVISION-5

Raebareli

Uttar Pradesh

A.C.DIVISION-6

Vijayawada

Andhra Pradesh

A.C.DIVISION-7

Pune

Maharashtra

Textile Division

Non-Asbestos (V-Boards)

Maharashtra


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Everybody has a pride to work in Visaka with a religious feeling that Organisation First.

Everybody is committed to do what they do with a feeling that he/she is the owner of the

company & is always responsible for his/her deed.

Visakas Image:

The company stands for its image in the society. It is the expectation of the Company that its

employees should contribute in such a way, which will boost up the companys image. As a

result of which both the company along with its employees will be known for its culture in

the public. Every employee should act as an ambassador of the company in magnifying the

image of the company through his/her attitude, integrity, behavior and character by that the

people in the society would take the name of VISAKA with respect. Always we should see

that the Visakas flag flies high in the global arena.

PERFORMANCE APPRAISAL SYSTEM

DATA ANALYSIS & INTERPRETATION

1 Is the Performance Appraisal system participatory?

YES NO

13 2


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INTERPRETATION

According to the survey, Eighty seven percent of the respondents agree that the

performance appraisal system is participatory. Thirteen percent of the respondents

are of opinion that appraisal system is not participatory. It depicts that these

thirteen percent respondents do not accept the appraisal procedure and are of the

views that there should be change in the system.

2Do you think that the prime goal of the Organization is well

communicated to every employee?

YES NO

12 3

INTERPRETATION

Eighty percent of the respondents are aware of the goals and target they have to

achieve whereas twenty percent of the respondents are unknown about the

organizational goals which depicts that either the organizational goals are not well


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communicated to these set of respondents or the understanding level of them is

low.

3Does an employee know the annual goals of the Organization &

his/her Immediate Boss?

YES NO

12 3

INTERPRETATION

Knowledge about the annual goals of the organization and his/ her immediate boss

is essential for any employee in order to contribute to the organizational

development. According to the survey, eighty percent of the respondents know

about the annual goals of the organization whereas twenty percent of the


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respondents are not aware about it which means that these twenty percent

respondents are not active and participatory.

4Does your current system tell employees at the beginning of the

year that what they are expected to perform during the yearinstead of at the end of year?

YES NO

11 4

INTERPRETATION

In every organization the employees are well communicated about what they

expected to do during the year at the beginning itself but twenty seven percent of


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the respondents deny with this fact which shows that there might be barriers in the

flow of information.

5Does your appraisal system have any scope for periodical review

of performance of employee?

YES NO

10 5

INTERPRETATION

Thirty three percent of the respondents are of the opinion that there is no scope for

periodical review. This can be attributed to the few departments which are directly


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involved in the production activities. They might be busy with the routine schedule

which does not provide them the time to go for periodical review.

6Do you think that any employee, not performing well is given feedback by his/her IB to improve in the middle of the year rather thanwait till end of the year?

YES NO

11 4

INTERPRETATION

According to the survey, twenty seven percent of the respondents do not provide

feedback to the low performing employees. This could be due to not carrying out


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periodical review or the irresponsibility of the Immediate Boss. It might also be that

the IBs wait for the final appraisal period due to which they do not guide the low

performers to perform better through their feedback.

7Whether the appraisal rating is opened to the employees through aface to face review with IB and subsequently both employee &

Boss make the developmental plan.

YES NO

9 6

INTERPRETATION


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INTERPRETATION

The more transparent is the system the more better it is for the organization and

the employees. The employees should be made aware about the assessment of

their IBs so as to help them improve themselves and perform better in the future.

Ninety three percent of the respondents agree with this fact.

9 Is the present Appraisal system transparent?

YES NO

10 5

INTERPRETATION


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As per the survey, sixty seven percent of the respondents say that the Appraisal

system is transparent whereas thirty three percent of them believe that the system

is not transparent because they might feel that there are biases shown during

rating.

10 Is the appraisal system integrated to annual increment process?

YES NO

14 1


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INTERPRETATION

As per the survey, ninety three percent respondents agree that the appraisal system is integrated

to the annual increment process which means that the employees are paid for their hard work and

are accustomed to it.

11

Does the appraisal system identify the training needs at thebeginning of the year for development of skill to achieve the targetset for the year?

YES NO

12 3


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INTERPRETATION

Though it may look unusual, ninety three percent i.e majority of the respondents agree that

Immediate bosses counsel the employee to overcome the weak areas.

Only seven percent are of the different opinion.

13

Do you feel that the employees are happy with the presentPerformance Appraisal system?

YES NO

10 5


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INTERPRETATION

Sixty seven percent of the respondents feel that they are happy with the present Appraisalsystem. The remaining thirty three percent are not at all happy with the present system. This

could be due to the thought that the system is not transparent and does not provide scope for

developing.

15

Does Performance Appraisal helps in charting the career graph foryour employees within the organizations?

YES NO

11 4


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INTERPRETATION

According to the survey, seventy three percent respondents accept that the performance appraisal

system helps in charting the career graph of the employees whereas twenty seven percent do not

agree with it.

16 Are the High performing employees identified?

YES NO

12 3


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INTERPRETATION

Eighty percent respondents say that the high performing employees are identified whereas

twenty percent are against it which means there must be bias in practice which fails to identify

the actual performers.

PERFORMANCE MANAGEMENT SYSTEM

DATA ANALYSIS AND INTERPRATATION

1Whether the organization goals are communicated to you? If yes,do you understand the goal and your responsibility for attaining

these goals?

YES NO

25 4


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INTERPRETATION

In order to achieve the targets, the individual goals are to be aligned to the organizational goals.

In the survey we found out that eighty three percent of the respondents feel that the individual

goals are aligned to the organizational goals, while remaining seventeen percent are in

contradiction to the above view. These small percent of the respondents may be of the ground

level that doesnt have the clarity of the organizational goals.

2(b)

Are your goals designed in consultation with immediate Boss?

YES NO

29 0


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INTERPRETATION

In the previous Appraisal system, around seventy three percent of the respondents felt that their

immediate bosses had clearly stated their goals, but in the Performance Management system the

KRA settings of the employees is done in consultation with their immediate bosses. So it is

obvious that the every respondent would support this statement.

2(c)

Do you have any action plan as to how to achieve your KRAs?

YES NO

25 4


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INTERPRETATION

KRAs to be achieved should be reasonable and match the job profile of the employee. Anythingwhich is not within their reach can bring pressure on the employee and reduce his capabilities of

doing the work efficiently. Here ninety seven percent of the respondents feel that their KRAs are

within their reach as these are initially prepared by themselves.

4Do you feel that the PMS helps in identifying gap in individual'sperformance?

YES NO

26 3


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INTERPRETATION

The main concern in Performance Appraisal System was biasness in the rating. The new system

has got more support in terms of transparency compared to the old one. Ninety three percent of

respondents are of the opinion that the current system would reduce biasness to large extent.

7 Does this system motivate you to contribute more towards

organizational goals?

YES NO

28 1


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INTERPRETATION

Ninety seven percent of respondents say they are being motivated to contribute more towards

their organizational goals with the introduction of PMS; this is because the KRAs are preparedby themselves and in consultation with their immediate bosses. So they are aware of what they

have to perform.

8Do you feel that the existing system is effective one or any furtherimprovement is required to improve the system?

YES NO

21 8


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INTERPRETATION

Seventy two percent of the respondents feel that the existing system is effective as it is

transparent , where as twenty eight percent feel it is not effective as the ground level employees

requires training to understand PMS more better.

9Do you feel the current system is better than earlier Appraisal

system in Visaka?

YES NO28 1

INTERPRETATION

Ninety seven percent of the respondents feel that the current system is better than the earlier

appraisal system, because they feel it is more transparent, focuses on performance improvement

of individuals, teams and organization and ensures fair appraisal.


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Vision, Mission & Goals should be designed, so as to direct the employees in a right

direction.

Focus should be there on Career development plan so as to retain talented employees and

help motivate them to perform better.

Performance Management audit has to be conducted so as to check the effectiveness of

the system.

Succession planning needs to be clearly defined in the company policy.

CONCLUSION

It has been a knowledgeable and explorative experience at VISAKA INDUSTRIES where the

study on performance management system has been carried out .it was a great opportunity to

work with some of the big guns of the organization like the vice president HR who had immense

knowledge about the subject and who was an ideal guide in the study. Learning about the past

system at VISAKA INDUSTRIES gave us an idea as to how performance appraisal system

works practically in a production based organization. This experience gave us the much requiredinsight on how all the departments and their processes are interlinked to each other based on

which the performance management system has been designed. A transition from the present

appraisal system to the much talked about performance management system is highly essential to

VISAKA INDUSTRIES if it wants to improve the overall effectiveness of the organization by

upgrading the performance levels of the individuals.


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PERFORMANCE REVIEW & PERFORMANCE APPRAISAL

Period of Appraisal: 1st

April 2010 to 31st

March 2011

Appraised by Immediate Boss & Head of the Department

EMPLOYEE INFORMATION

Employee Name Mr. Anjaneyulu Pola Employee Code 10110

Date of Birth 20-Dec-1967 Date of Joining 26-Aug-1992

Location Corporate Office Designation Sr. Accounts Officer

Qualifications PGDIM, B.Com

Previous Experience 5 Years

Visakas Experience 18 Years 8 Months

Experience in present

position

2 Years

FACTORS OF ASSESSMENT

Performance Ratings Point per each rating Overall rating

Excellent 10 80 & above

Good 08 60 & above

Average 06 50 & above

Poor 04 Below 50

a) Job Knowledge and Learning IB HOD

1. Demonstrates a basic knowledge of all aspects of job and applies this


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e) Organising and Resource utilization IB HOD

1. Ability of organising the things properly and effective utilisation of

resources: tools and equipment, human resources and in terms money:

cost effectiveness.

2. Maximizing the productivity

Weighted Average

f) Decision Making IB HOD

1. Close analysis of the job and relevant facts

2. Evaluate various alternatives

3. A realistic plan of action

Weighted Average

g) Team Work of co-operation IB HOD

1. Spontaneous co-operation whenever required

2. Contributes by sharing knowledge

3. Enhances team performances through personal effectiveness

4. Looks team performances through personal effectiveness

5. Looks beyond the requirement of job and other suggestions for the

improvement of team performance

6. Leadership qualities.

Weighted Average

h) Problem Solving IB HOD

1. Solves problems logically/Manages situations

2. Seeks own knowledge and experience base in trouble shooting


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3. Demonstrates creativity in problem solving

Weighted Average

i) Personal Effectiveness IB HOD

1. Displays emotional control and maturity by showing the ability to not

personalise issues in work situation

2. Seeks and reinforces positive feedback and works on shortcomings

3. Applies time management skills by respecting time of others and self

4. Ability to treat specific information as confidential

Weighted Average

j) Organisational commitment & conduct IB HOD

1. Upholds Visaka Image

2. Gives priority to customers/suppliers above personal interests

3. Provides constructive criticism and valuable suggestions.

4. Attitude

5. Punctuality

6. Obedience / Subordination

Weighted Average

OVERALL PERFORMANCE RATING

Recommendation for promotion to the next position and specific comments as achievements and

justification for promotion.


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Present Designation: To be Promoted As:

TRAINING & DEVELOPMENT NEEDS

Specify the areas where need to be trained.

1.

2.

3.4.

5.

Signature of Immediate Boss Signature of HOD Personnel Dept.

Date:

PART - B

SELF ASSESSMENT FORM

Period of Appraisal: 1st April 2010 to 31st March 2011


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Name: Designation:

Department:

1. Your specific achievements in the present job in the last 1 year

2. To fulfill the above achievements what way your superiors/colleagues/sub-ordinates helped you?

3. What is the role you are playing in the organization to meet the organizational goals?

4. What is that gives you satisfaction in your job and what additional responsibilities you propose to

shoulder?

5. What are your suggestions on the existing working environment?

6. Write your objectives for the next one year along with the action plan.

7. Specify your strengths and weaknesses.


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Strengths: Weaknesses:

8. What type of training programme& support from the company will be helpful to you to improve youroverall performance?

Signature of Employee.

Date:

Note: if required use separate Sheet.

QUESTIONNAIRE

We, Krishna Praveen Puli and Aayushi Jain the students of Gitam University have prepared this

questionnaire as a part of our study on Performance Management System. The data collection is solely for

the project purpose and will be kept confidential and undisclosed to the outsiders. Your kind cooperation

would be mutually beneficial.

Questions & Answer

1- Is the Performance Appraisal system participatory?

2- Do you think that the prime goal of the Organization is well communicated to everyemployee?

NAME OF RESPONDER: DESIGNATION:

NUMBER OF APPRAISALS DONE TILL DATE: NUMBER OF EMPLOYEES

APPRAISED BY YOU:

NO

YES


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13- Do you feel that the employees are happy with the present Performance Appraisal

system?

14- Does the organization feel the need of competency development of employees for theirsuperior contribution in productivity & culture development and higher customer

satisfaction?

15-Does Performance Appraisal helps in charting the career graph for your employees within

the organizations?

16- Are the High performing employees identified?

QUESTIONNAIRE ON PERFORMANCE MANAGEMENT SYSTEM

1) Have you been educated by the HR department about the PMS concept and your

responsibility under the new system?

2) Is there transparency in the current system?

a) Whether the organization goals are communicated to you? If yes, do you understand

the goal and your responsibility for attaining these goals?

b) Are your goals (KRAs) aligned to the organizational goals?

c) Are your goals designed in consultation with immediate Boss?

NO

YES

NO

YES

OS

NO

YES

NO

YES

NO

YES

NO

YES

NOYES


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d) Do you have any action plan as to how to achieve your KRAs?

3) Are you involved in the KRA setting?

4) Do you feel that your Kras are reasonable and within the reach?

5) Do you feel that the PMS helps in identifying gap in individuals performance?

6) Do the PMS help in individual development (Skill & Performance)?

7) Do you think that the present system is free from biasness?

8) Does this system motivate you to contribute more towards organizational goals?

9) Do you require further coaching for better understanding of PMS concept and doubts

clarification?

10) Do you feel that the existing system is effective one or any further improvement is

required to improve the system? If yes, please feel free to give your suggestions.

11) Do you feel the current system is better than earlier Appraisal system in Visaka? If

yes/No state the reasons.

NO

YES

OS

OS

NO

YES

OS

OS

OS

OS

OS


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12) Did you face any problems while implementing PMS? If so mention.

BIBLIOGRAPHY

BOOKS

Performance Management, A.S KOHLI, TAPOMOY DEB

Performance Management and Appraisal Systems, T.V. RAO

Performance Managementand Culture,SETHI DIPTI GAGAN

Booklet on the companys profile

OS

OS


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WEBSITE

www.citehr.com

www.visaka.in

www.wikipedia.com

Final Report-on PMS

Documents