THE EFFECTIVENESS OF PERFORMANCE MANAGEMENT

(A STUDY AT ARDEE & CO MANUFACTURING OF METALS PVT. LTD., CHENNAI)

PROJECT REPORT

(A Report Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Business Administration in Pondicherry University)

Submitted by

Mr. HARISH .V

Enrolment No: 0802390240 MBA: HUMAN RESOURCE MANAGEMENT

DIRECTORATE OF DISTANCE EDUCATION PONDICHERRY UNIVERSITY PONDICHERRY - 605014

(2008 - 2010)

CERTIFICATE OF THE GUIDE

This is to certify that the Project Work titled “THE EFFECTIVENESS OF PERFORMANCE MANAGEMENT (A study at ARDEE & Co manufacturing of metals Pvt. Ltd., Chennai)” is a bonafide work of Mr.HARISH.V Enroll No: 0802390240 carried out in partial fulfillment for the award of Degree of MBA HRM of Pondicherry University under my guidance. This project work is original and not submitted earlier for the award of any degree / diploma or associateship of any other University/Institution.

Signature of the guide

Name and Official Address of the Guide

Guide’s Academic Qualifications, Designation and Experience

Place:Date:

STUDENTS’ DECLARATION

I, Mr. HARISH.V hereby declare that the Project Work titled “THE EFFECTIVENESS OF PERFORMANCE MANAGEMENT (A study at ARDEE & Co manufacturing of metals Pvt. Ltd., Chennai)” is the original work done by me and submitted to the Pondicherry University in partial fulfillment of requirements for the award of Master of Business Administration in HUMAN RESOURCE MANAGEMENT is a record of original work done by me under the supervision of Mr. Simon Joseph Professor of Loyola College.

Enroll No: 0802390240

Date :

Signature of the student

13th April 2010

To Whom It May Concern :

This is to certify that Mr. V. Harish who is a final year management student with Pondicherry University has done his project on “Effectiveness of Performance Management” with ARDEE & Co manufacturing of metals Pvt. Ltd., Chennai from the 11th of January 2010 to 14th April 2010.

During his stint with us, we found his character and conduct upto our level of satisfaction.

Regards,

J. SubramanianHead – Human Resources

ABSTRACT

Performance Management is a systematical and data – oriented approach to

manage people at work that relies on positive reinforcement as the major way to

maximize performance.

The Performance Management process begins with the analysis and

description of the job. The performance manager identifies essential functions of the

job description and the strategic mission and goals of the department or organizational

unit. Standards of minimum acceptable performance are developed for the position

with the employee. Additionally, standards for performance which exceeds

expectations may be set to encourage the employee to strive for even better results.

The study, survey is conducted to assess the Performance Appraisal of the

Company. ARDEE & Co Manufacturers of chemicals treatment - Chennai club

ventured it self into a manufacturing industry.

This study will try to trace out all the problems related to the performance of

the employees and tries to bring out a good Performance Appraisal System.

The study creates awareness among the employee about performance appraisal

and attain productivity.

The Manufacturer industry is characterized by many critical factors like

monotony of work, mental stress, high level of change and so on. This study tries to

analyze each of these factors and tries to develop a good relationship between each

and every factor to establish a good Performance Management system.

The study takes into account every aspect of each and every individual’s

performance and the employee’s view on the current appraisal system followed in the

company.

A more refined Performance Appraisal system, which tries to attain maximum

level of satisfaction by the employees, is proposed.

The results and findings bring about the company’s present managerial practices with

regard to the performance and states that it precedes in fine manner. The employees

are fully satisfied and they except improvement, which the company can execute. As

per the study, the company can make it ‘The Best’ by instigating the suggestions and

recommendations in their Performance Management.

The researcher has personally experienced the practical exposure on the corporate

practices and how the management theories, which he studied during the course, have

been put into practices. Also the analysis taught him how the manpower can be

properly utilized for a best Performance Management.

ACKNOWLEDGEMENT

I wish to express my deepest sense of gratitude to the Co-ordinator Mr. Xavir for

providing me this excellent opportunity.

I am immensely grateful to Mr. J. Subramanian Head – Human Resources, ARDEE &

Co manufacturing of metals Pvt. Ltd., Chennai who allowed me to carry out my

project work in his organization successfully.

I also express my deepest sense of gratitude to my Guide, Professor Simon Joseph for

his expert guidance and encouragement with constant motivation in making this

project a success.

Finally, I am happy in specially thanking my colleagues, Friends, and Well – Wishers

for their constant support and Cooperation throughout the project.

CONTENTS

S.NO TITLE PG.NO

I

Introduction 1

II Statement of the Problem

IIIScope

ObjectiveNeed for the Study

IV Review of Literature

V

Methodology and Limitations of Study5.1 Research Design5.2 Data Source5.3 Research Approach / Instrument5.4 Sample Design5.5 Statistical Tools5.6 Limitations of the Study

VI Company Profile

VII Analysis and Interpretation

VIII Findings

IX Suggestions

X Conclusion

Bibliography

Appendices

LIST OF TABLES AND FIGURES

S.No. Title Page No.1. Age group of respondents2 Gender of the respondents 3. Marital status of the respondents4. Educational qualification of the respondents 5. Work Experience of the respondents 6. Income Range of the respondents7. Respondents on Department wise8. Respondents on Designation wise

9. Respondent’s view on the Individual Objective Setting

10. Agreement of the respondents on the outcome of the objectives

11. The agreement level of respondents on their Job12. The frequency of the Performance Appraisal Program

13. The preference ranking of the criterion level of Assessing the performance of the employees

14. The purpose of the Performance Appraisal Program

15. The extent of Self-Development by the Performance Appraisal Program

16. The agreement level on the implication of Performance Appraisal System

17. The awareness of the usage of the Appraisal Data by the HR Department

18. The kind of remedial measures taken based on the Performance Appraisal Program

19. The agreeableness of the Performance – Related Pay

20a. The respondent’s receipt of the Performance – Related pay

20b. Table represents the kinds of Performance Related Pay

21a. The existence of Periodic Review21b. The frequency of Periodic Review

22. Satisfaction Level of Performance Management System

LIST OF STATISTICAL TOOLS

STATISTICAL TOOL PURPOSE PAGE NO.

ONE WAY ANOVA

To establish if there is significant difference between the agreement levels of the respondent towards

various criteria on the job.

KOLOGROV-SMNROV TEST

The preference ranking of the criterion level of Assessing the performance of the employees

RANK CORRELATION

To find if there is any association between Analytical ability and

Technical Ability

LIKERT SCALE

The agreement level on the implication of Performance Appraisal

System

ONE WAY ANOVA

To establish if there is significant difference between the agreement level of the respondent towards the

various criteria on the implications of Performance Appraisal System

CHAPTER – I

I INTRODUCTION

Performance Management is a systematical and data-oriented approach to manage

people at work that rules on positive reinforcement as the major way to maximize

performance.

The Performance Management process begins with the analysis and description of the

job. The performance manager identifies essential functions of the job description and

the strategic mission and goals of the department or organizational unit. Standards of

minimum acceptable performance are developed for the position with the employee.

Additionally, standards for performance, which exceeds expectation, may be set to

encourage the employee to strive for even better results.

Throughout the appraisal period (typically one year), the performance manager

observes and provides behavioral feedback on the performance of the employee

following on the helping the employee to achieve successful performance. At the end

of the appraisal period, and in collaboration with the employee, the performance

manager prepares, writes, delivers and them produces a final copy of the written

performance appraisal.

At any point in the process, the employee and performance manager may identify

needs and create a plan for employee education, training or development in job or

career – related areas.

The issues related to performance management of teams and team members arise out

of the variety of reporting relationships and degree of independent responsibility that

teams and exercise, as well as, the need to reinforce team values and efforts without

undercutting individual responsibility.

Adaptation of performance management process with team in mind may be made

which are consistent with firm policy and procedures.

Methods of Performance appraisal

Traditional Methods Modern Methods

1. Straight ranking method 1. Assessment centre2. Man to man comparison method 2. Appraisal by result (or)

management by objectives

3. Grading 3. Human asset accounting Method

4. Graphic rating scales 4. Behaviorally achieves rating

Scales5. Forced choice description method6. Forced distribution method7. Check lists8. Free form essay method9. Critical incidents10. Group appraisal11. Field review method.

The Evaluation Process

Establish performance standards

Communicate performance expectations to employees

Measure actual performance

Compare actual performance with standards

Discuss the appraisal with the employee

If necessary, initiate corrective actions.

Item Former Emphasis Present Emphasis

Terminology

Purpose

Application

Factors rated

Techniques

Post – appraisal interview

Merit rating

Determine qualification forwage increase, transfer, promotion, lay-off

For hourly – paid worker

Heavy emphasis upon personal traits

Rating scales with simphasis upon scales, statistical manipulation of data for comparison purposes,

Superior communicated his rating to employee and tries to sell his evaluation to him ; seeks to have employee conform to his view

Employee appraisal

Development of the individual ; improved performance on the job ; and provided emotional security

For technical, professional, and managerial employee

Results, accomplishment performance

Mutual goal – setting, critical incidents ; group appraisal ; performance standards ; less quantitive

Superior simulates employee to analyse himself and set own objectives in line with job requirements superior is helper

Evaluation and detailed job description

Defined performance standardsDevelopment of coaching andCounseling skills Evidence of actual performance

Management of marginal Development

How, when and what way targets 1. A mutual proc Are to be met staging of targets to be between

appraisal Achieved and appraise

2. Neutral and objective

Distinguish between personal and Organizational 3. Balance between

positive And Negative aspects

A) Target should be realistic and attainable

Job Performance Assessment

Performance Development

Appraisal Intative and target setting

Action Planning

CHAPTER II

II STATEMENT OF THE PROBLEM

The study, survey is conducted to assess the Performance Appraisal of the

Company. ARDEE & Co manufacturing of metals Pvt. Ltd., has ventured itself into

the Manufacturing Industry.

Manufacturing industry is characterized by high rate of attrition. This study

will try to trace out all the problems related to the performance of the employees and

tries to bring out a good Performance Appraisal System.

The study tries to find out the percentage of the employees who are unaware

of the Performance Appraisal policy followed by the company.

The Manufacturer industry is characterized by many critical factors like

monotony of work, mental stress, high level of change and so on. This study tries to

analyze each of these factors and tries to develop a relationship between each and

every factor to establish a good Performance Management system.

The study takes into account every aspect of each and every individual’s

performance and the employee’s view on the current appraisal system followed in the

company.

A more refined Performance Appraisal system, which tries to attain maximum

level of satisfaction by the employees, is proposed.

CHAPTER III

Scope :

To explore the nuances, and utilization of performance management and appraisal

with a futuristic perspective.

To methodically analyse and disseminate the collected data and relate it to the

identification and solution to complex problems pertaining to the arena.

Objective :

1. To study the general view of the employee towards the performance

management practice.

2. To study the level of employee’s awareness on the appraisal program.

3. To study the effectiveness of the performance.

4. Management and suggest necessary measurers.

5. To find the various parameters based on which the employees are assessed in

the organization.

6. To find out the awareness level and the activities involved in Succession

Planning.

7. To find out the level of satisfaction with reference to the performance

management system.

NEED FOR STUDY

The company has been using performance management for quite some time, there

was a need for analyzing the present situation and the changes required in this aspect

by the employees. This study was undertaken to find out the change in preferences

and requirements of performance management.

Even though the company is doing well in its activities, this study is made to locate

the weaker areas in which the company is lacking and strengthening them in future.

CHAPTER IV

IV REVIEW OF LITERATURE

The Literature available in the area of Performance Management and related subjects

has been reviewed selectively with a view to get an inoght into the Performance

Management. This review has facilitated selection of specific area for the study and

also in fixing the scope and objectives of the study. A brief account of the important

literature is given below.

Gary dessler has evaluated the Bank concept in Performance Management and appraisal

a) All companies have some formal (or) informal mean of appraising their

employee’s performance.

1. Setting work standards

2. Assessing the employee’s actual performance relative to those

standards.

3. Providing feedback to the employee with the aim of motivating

him or her to eliminate performance deficiencies or to continue to

perform above par.

b) Performance appraisal evaluating an employees current and / or past

performance relative to his or her performance standards/

c) Performance Management a process that consolidates goal setting,

performance appraisal, and development into a single, common system, the

aim of which is to ensure that the employees performance is supporting the

company’s strategic aims.

Performance Management is the process that translates business objectives into

individual targets for the coming defined period and evaluated the person’s

performance over the previous period. The process includes:

1. Evaluating contribution against business objectives and demonstrated values

over the previous period.

2. differentiating in performance through calibrate ratings.

3. Aligning personal objectives with business objectives for the coming period.

4. Assessing required competencies and values.

5. Identifying opportunities for people development.

The Performance Management process results in redefined key areas of

responsibilities, SMART – individuals targets and development needs.

Key aspects of the performance management process able.

a. Performance management policy and tools

b. Setting and evaluating individual targets.

c. Evaluating demonstrated and required competencies and values.

d. Defining developments needs.

e. Calibration process

f. Process monitoring and improvement planning.

Luis I Gomez – mejics have stated the challenges to effective performance

management in their 3rd edition and explain.

Flow managers ensure accurate measurement of work performance? The primary

means is to understand the barriers that stand in the way. Managers contract at least

five challenger in his area:

1. Rates errors and bias

2. The influence of liking

3. Organizational politics

4. Whether to focus on the individual or the group

5. Legal issues.

C.B. Manorics and S.V. Ganker have studied importance and purposes:

Performance appraisal has been consider as a most significant and indispensable tool

toran organization, for the information it provides is highly useful in making decision,

regarding various person aspect such as promotions and merit increases. Perform

measures also link information gathering and decision-making processes which

provide a basis for judging the effectiveness of personnel sub-divisions such as

recruiting, selection, training and compensations. Accurate information plays active

role in the organization as a whole. They help pinpoint work areas in the primary

systems (eg., Marketing, finance and production). It is earier for managers to see

which employees need training or counseling, because jobs are grouped by categories

(e.g., production foreman, salesman, financial analyzer etc.,). These categories can be

broken into small and smaller groups if necessary. If valid performance date are

available, timely, accurate, objective, han derdised and relevant, management can

maintain consistent promotions and compensation policies throughout the total

system.

M.C. Gregor says:

Little evidence of a Performance Management policy or process that supports

management and employees to improve individual and business performance.

Managers are provided with elementary tools (at least a form) to review the

performance of employees. The Performance management process is partly linked

with business objectives. Performance review is on an adhoc basis. Personal

development issues may be part of the discussion mainly a paper process and it is

linked to some of the business objectives.

Managers have yearly performance appraisal meeting with their staff. Usage is mean

red, but not enforced. Guide lines and formal appraisal forms are available. Basic

training is made available to support management to execute the process. Managers

are encouraged to link the outcome of the performance review to differentiate in

reward & recognition using. Some basic rules and regulations.

A basic policy on performance management is available. A yearly performance

appraisal process and tools are complemented through the organization. Individual –

and team target and performance reviews are connected to business objectives or to

key business performance indicator (like business balanced scorecard) that are

relevant for realigning long term and short term objectives. Performance management

measurement process is applied to differentiate between different perform levels.

Performance management process focuses on personal development. At least annually

actions and targets for self-development are agreed. Use of the performance appraisal

process is measured and relevant key performance indicators are in place.

The performance review is used to formulate specific evaluation statements,

identifying developments opportunities. Targets are formulated SMART

S SpecificM Measurable

A Ambitions

R Realistic

T Time-bound

Management calibrates performance in accordance with the policy and takes

appropriate action based on performance scores. There is a formal reward and

recognition process in place and this is closely related to the performance

management process. The linkage between performance management and reward Mr.

PC Tripathi evaluated the implementation of the performance appraisal and merit

rating is one of the oldest and most universal practices of management. If refers to all

the formal procedure used in working organizations to evaluate the personalities and

contribution and potential of group members. Modern management makes some what

less use of the term ‘merit rating’ than what was common in earlier periods. In the

past emphan’s used to be on the evaluation of merits of an individual – his worth as a

person. The approach resulted in an appraisal system in which the employees merits

like initiative, dependability, personality, etc. Where compared with others and ranked

or rated.

‘Alistain Gold Smith’, ‘Dennis Nickson’, ‘Donald – Slo’, ‘Roy.C.Wood’, have

analysed the importance of reward oriented appraisal system, some effort is made to

establish a link between job and job-holder performance, and pay and other reward.

As one might expect, the nature of such linker are often contentions and controversial.

A survey of seven cases studies by the independent research organization income data

services (IDS) (1989) produced the following performance factors which are often

appraised.

1. Job knowledge and abilities – being able to reform in all aspects of a job to a

reasonable standard

2. Quality of outputs – including attention to detail and consistency in quality of

out put.

3. Productivity – individual work rates and outputs.

4. Attitude to work in terms of commitment, enthusiasm and apparent

motivation.

5. General demeanors and conduct – interms absences and reasons for absences

and overall punctuality.

6. Supervisory qualities – whether there is an ability to work independently and a

capacity to offer leadership to others.

7. Perceptual and anticipatory qualities – including a ability to interpret and

anticipate job requirements a demonstrate originality in problem – solving.

8. Co-operativeness and area oration – with other workers in a team oriented

environment.

9. Resources utilization – an ability to set persons priorities and plan and

organize work schedules.

10. Performance against targets – the most obvious measure, involving the level of

attainment of the employee.

CHAPTER V

V METHODOLOGY AND LIMITATIONS OF STUDY

Research could be understood as an organized activity with specific focus / objectives

on a problem or issue supported by compilation of related tools of analysis and

deriving logically sound inferences based on originally. It is an “Organized inquiry”.

Research Methodology is a way to systematically solve the research problem. In

research methodology we study the various steps that are adopted generally by a

researcher in studying his research problem along with the logic behind them.

Research also need to understand the assumptions underlying the various techniques

and they need to know the criteria by which they can decide that certain technique and

procedures will be applicable to certain problems and others will not.

The objectives of the research could be

1. It develops focus

2. It reveals characteristics

3. It determines frequency of occurrence

4. It tests hypothesis

The method used to collect data in questionnaire method.

5.1. RESEARCH DESING

The conceptual structure within which research would be conducted is called

Research Design. Research Design is purely and simply the framework or plan for a

study that guides collection and analysis of the data for study that guides the

collection and analysis of data.

A Research Design could also be defined as the blue print specifying every stage of

action in course of research. Research Design is the arrangement of the collection and

analysis of data in a manner that aims to combine relevance to the research purpose

with economy in procedure.

Research Design is s purposeful scheme of action proposed to be carried out in a

sequence during the process of research focusing on the management problem to be

tackled.

Research can be approached in 4 ways

1. Historical Approach

2. Descriptive Approach

3. Case study Approach

4. Experimental Approach

Descriptive research design approach

In this approach, a problem is described by the researcher using Questionnaire or

Schedule. This research enables a researcher to explore new areas of investigation. A

researcher develops his hypothesis based on his knowledge about the subject matter of

study. When this approach is adopted, the researcher should be intelligent and alert to

elicit the information required from the respondents as accurately as possible.

Descriptive research design is concerned with research studies with a focus on the

portrayal of the characteristics of a group or individual or a situation. The main

objective of such studies is to acquire knowledge. Similarly, such studies are used to

examine the characteristics of the corporate sector or consumer behavior.

Descriptive study is a fact-finding technique with adequate interpretation. It has focus

on particular aspects or dimensions of the problem studied. A descriptive study aims

at identifying the various characteristics of a community or institution or problem to

study. A descriptive study also aims at a classification of a range of elements

comprising the subject matter of study.

Merits:

1. This research helps to test the conclusions and findings arrived on the basis of

laboratory studies.

2. It focuses directly on theoretical point.

3. It can highlight important methodological aspects of data collection

interpretation.

4. Direct contact between the researcher and the respondent is brought about in

this approach.

5. With the possibility of the direct contact with the respondent, the researcher is

able to elicit all the relevant information and eliminate irrelevant facts.

The researcher has selected this approach because the research is concerned on very

fragile and cognizant area which will have severe impact to all, the management,

employees and customers. A careful research has been carried out with employees by

the researcher.

5.2 DATA SOURCE

Data refers to information or facts. Often researchers understand by data only

numerical figures. It also includes descriptive facts, non-numerical information,

qualitative and quantitative information. The sources of data can be from Primary and

Secondary data.

Primary Data :

Primary data is known as the data collected for the first time through field study. Such

data collected with specific set of objectives to assess the current status of any

variable studied. The researcher has collected the primary data using the questionnaire

by paying individual attention.

Secondary Data :

Secondary data is known as the data collected from the already existing information

through references. Such data collected can be utilized to have in-depth study into the

concept taken for research. The researcher has collected the secondary data from the

Company profiles, Journals, Books and Websites. A fanatical knowledge has been

employees to draw the obligatory and germane data.

5.3 RESEARCH APPROACH / INSTRUMENT

The research was approached by way of Questionnaire through which the researcher

can draw the results by keeping all relevant areas of study.

Questionnaire

A questionnaire is a schedule consisting of a number of coherent and formulated

series of questions related to the various aspects of topic under study. In this method a

pre-printed list of questions arranged in sequence is used to elicit response from

informant. The questionnaire has been framed by covering almost the key concepts to

bring about lucid results.

The form of questions could be Open Ended and Close Ended. The researcher framed

most of the questions in close ended form.

5.4 SAMPLE DESIGN

Sampling :

A sample is a small specimen or a separated part of the whole question., representing

its general qualities, as far as possible. The term Sampling refers to the investigation

part of the whole population.

Sampling Methods

The sampling could be

SAMPLING

RANDOM SAMPLING NON – RANDOM SAMPLING

Simple Random Sampling

Stratified Random Sampling

Systematic Sampling

Cluster Sampling

Sequential Sampling

Multi – Stage Sampling

Quota Sampling

Convenience Sampling

On – the – spot Sampling

Convenience Sampling

When a sample is drawn according to one’s own conscience without any systematic

method, it is known as Convenience sampling. Though this method is unscientific and

the results may not be accurate it may throw light on some important aspects of the

study. As the company is engaged in serious and continuous job, the researcher used

convenient sampling, but the sample contains ubiquitous coverage of the employees.

Samples Size:

Sample Size is the constant drawn out of population. The sample size of the research

is 100.

Sampling Frame:

It is the list of population elements from which the sample is drawn. The sample has

been carefully framed from the employees of the factory of all categories and

designates.

Period of Study:

The research was done for 3 months in a period between January’05 and March’05.

Field Work:

The researcher had the preliminary study on the management activities and the

employees’ postures. Then a questionnaire was so prepared that is covers the study

within the company’s constraints. A sophisticated and well-designed sample was

drawn and data collected through the questionnaire from the sample with individual

attention.

5.5 STATISTICAL TOOLS

For the research the following statistical tools have been used.

1. One-way ANOVA

2. Rank Correlation

3. Likert Scale

4. Kolmogrov – Sminrov Test

1) One-Way ANOVA

It is a statistical technique designed to test whether the means of more than 2

qualitative populations are equal where data are classified under one criterion.

Hypothesis consists of classifying and cross-statistical results and test whether the

means of a specified classification differ significantly.

Steps

a. Set up Null Hypothesis H0.

b. Find ‘T’, the total sum of all items of various samples given in the data.

c. Find the Correction Faction CF = T2 / n, where n is the total number of items

in the data.

d. Find the sum of squares of all items and find its total. Subtract it from the CF,

which gives sum of squares of deviations for total variance.

e. Find sum of squares between samples.

f. Find sum of squares within the samples.

g. Construct analysis of variance table.

h. Calculate the value F = Variance between Samples / Variance within Samples.

i. Find the tabulated value of F for the given degrees of freedom.

j. If calculated F < Tabulated F, accept null hypothesis and if it reverse reject it.

2) Rank Correlation

Mutual relation between two or more things is called Correlation.

In case of Qualitative data, arrange the variable or individual in the order of merit and

proficiency and arrange ranks and calculate the Rank Correlation Coefficient ‘r’ by

the following formula.

n6∑di

2

i = 1

r = 1 - ________ n(n2-1)

Steps

a. Assign ranks to different values starting with rank 1 for the highest value in

the first series and last rank for the lowest value.

b. Similarly assign rank to the values in second series.

c. Determine the difference in the ranks of corresponding values in the two series

and denote by di, where I = 1, 2, 3, ….n.

d. Apply the formula ‘r’

3) Likert Scale

In Likert scale method, the respondents are asked to indicate on 5 point numeric scale

their degrees of agreement or disagreement with some pre-designed set of statements.

The direction of response scores for an unfavourable statement should be opposite to

the favorable to statement. Thus the Likert scale gathers the intensity of the attitude.

Some of the scores show the overall attitude of the respondent. Sometimes on each

statement, the distribution of the response patterns and formed as aggregations of

individual options. Then usual statistical procedures are employed to study the

response pattern. In general, subject finds it easy to respond.

4) Kolmogrov – Sminrov Test

This test is used for comparing the distribution on an ordinary scale. This test is

concerned with the degree of agreement between the distribution and some special

theoretical distribution. It determines whether the scores in the sample can be

reasonably through to have come from popularized having theoretical distribution.

In this test the tabulated value is calculated by the following formula.

Tabulated value = 1.36 / √n, where n = Greater Size

Calculated value = Maximum value of |O-E| column

5.6 LIMITATIONS OF THE STUDY

1. As the study was conducted only in one manufacturing company, the result

of the study cannot be generalized in other companies.

2. The respondent’s views are bound to have a certain degree of bias because

the study was conducted during the working hours.

3. The time period was too short to find out an alternative measure to

implement the same.

CHAPTER – VI

VI COMPANY PROFILE

ARDEE manufactures several phosphating systems for light, medium and heavy zinc,

manganese and iron phosphate conversion coatings.   These systems meet all current

IS specifications for phosphating, and are easy & economical to use. Also available

are, hot and cold blackening system, chromating system for aluminium and all the

support chemical products for various metal finishing needs.

COMPANY’S PREMIUM PRODUCTS FOR CONVERSION COATING SYSTEMS

PHOSFINE-Z52 & PHOSFINE-Z41: Nickel activated heavy immersion zinc

phosphating system. Single additive package provides a uniform porous deposit.

Premium performance. Designed for fasteners, nuts, bolts, automotive components,

pulleys, hinges, oil field equipment and other types of assemblies. Also ideal as a

parting medium and lubricant carrier for cold heading, extrusion, rolling and drawing

and forming applications involving items such as rod, wire, and seamless tubing.

Produces a high quality, tight coating. Meets all automotive and military

specifications. Dense coating in the range of 2000-3000 mg/ft2.Meets Class A2 of

IS:3618-1966

PHOSFINE-Z20: Designed to deposit a light zinc/calcium phosphate coating on

ferrous or non-ferrous metals. Provides excellent corrosion barrier, or as a base for

solid film lubricants, for break-in applications and tenacious base for paint adhesion.

An essential pre-treatment system for high quality powder coating applications.

Coating weights in the range of 150-600 mg/ft2. Meets ClassC of IS:3618-1966

PHOSFINE-Z40: similar to Z-20, this process deposits a medium coating weight for

those installations that require both painting and oiling applications. Single additive

make-up and maintenance. Coating weight in the range of 600 to 1200 mg/ft2.Meets

ClassB of IS:3618-1966

PHOSFINE-M11: Heavy manganese phosphating system suitable for providing

corrosion protection on a variety of parts as well as a base for solid film lubricants,

break-in, anti-wear and anti-scuffing applications. Single additive package provides a

uniform porous deposit with a coating weight in the range of 3000-5000 mg/ft2.Meets

Class A1 of IS:3618-1966

FERROPHOS-Z: Single additive make-up and maintenance, iron phosphating

system at room temperature for iron, galvanised steel and aluminium. Degreasing,

derusting & light phosphating - all the 3-in-one operation. Can be used in immersion

or spray applications. Available with 3 grades, proving a complete, easy to use, single

additive product. Provides maximum salt spray protection . Meets Class D of IS:3618-

1966

PHOSFINE-ZC: Cold phosphating system. Designed to deposit an zinc phosphate

coating on ferrous and galvanised steel at room temperature. Fuel saving economic

system for painting pretreatment. Meets Class B/C of IS:3618-1966

PHOSFINE-ZCX: Cold phosphating system. Designed to deposit a heavy zinc

phosphate coating on ferrous and galvanised steel at room temperature. Fuel saving

economic system, coating similar to Phosfine Z 41. Meets Class A/B of IS:3618-1966

PHOSFINE-Z70: Chlorate accelerated zinc phosphating system intended for heavy

wire drawing applications.

FERROBLACK HOT: Black Oxidizing Treatment for ferrous metals and alloys by

hot process operating around 140°C.

FERROBLACK COLD: A Modern low temperature blackening system to

effectively replace conventional hot alkaline system. A single additive, liquid

concentrate which is used at 10 percent by volume in water to blacken carbon steels,

alloy steels, tool steels, as well as cast iron and forged steels at room temperature.

ALUGOLD: Room temperature chromatizing system deposits a light, passive,

golden coloured chromate conversion coating on aluminium and its alloys. A

decorative and anti corrosive finish. An essential pre-treatment system for high

quality powder coating applications.

ALUGREEN: A decorative green finish on Aluminium and its alloys.

OUR PREMIUM RANGE OF SUPPORT CHEMICALS

ALKALINE DEGREASER RD - 1 : Heavy Duty soak cleaner in powder form

mainly for ferrous for efficient removal of heavy oils & greases; used at 90° C.

ALKALINE DEGREASER RD - 2 : Light Duty detergent cleaner in powder form

for ferrous & non-ferrous, mainly recommenced for aluminum; used at 75° - 80° C.

EMULSION CLEANER: For efficient cleaning of ferrous & non-ferrous by wipe,

immersion or spray at room temperature. It functions as efficient and economic hot

spray cleaner by diluting with water to form emulsion; used up to 65° C.

METAL CLEANER : Solvent cleaner for all metals used at room temperature; used

by dip, spray or wipe.

RUSTBAN -120 : Acidic deoxidizing agent for fast derusting of ferrous metals used

at elevated temperatures used at 65° - 85° C.

RUSTBAN - 110 : Acidic rust solvent for use at room temperature and etch cleaner

for aluminum

RUSTBAN - 77 : Inhibited Acidic pre-cleaner with detergent for effective cleaning of

ferrous used from room Temperature upto 65°C

RUSTBAN - 111 : Economic derusting agent for use at room temperature, for faster

cleaning and over all economy.

RUSTEX - A : An efficient pickling agent for removing heat treatment scales and

mill scales from ferrous articles.

DESCALE - X : For efficient descaling of boilers, condensers, heat exchangers etc.;

used up to 65° C.

FINE LUBE : Fatty acid based lubrication powder for use in wire & tube drawing

and all such cold forming processes to facilitate trouble-free cold deformation. Used

after phosphating.

PASSIVEX - A : Chromate based mild acidic passivation concentrate for imparting

additional corrosion resistance for phosphated surface & to counteract the effect of

hardness of water. Used as a final rinse after phosphating and cold blackening

treatments.

DEWATERING   FLUID - X 125 : It is used as a post treatment with phosphating,

blackening and in all such finishing systems where immediate removal of water from

components by drying is not possible. It displaces water instantly and gives a very

thin invisible oil film.This treatment must be followed by rust preventive oil

treatment.

ANCOR - 30 : Rust preventive, solvent deposited, type. Dries out within an hour

after application and leaves a thin protective oil film. An ideal oil for use after

phosphating. Used for indoor storage of ferrous articles.

INHIBITOR - H: Acid pickling inhibitor used with hydrochloric acid for efficient

pickling, free from pitting and brittle failures.

INHIBITOR - HH: Similar to COIN-100 but can be used up to 65° C.Used with HCl

in descaling of boilers.

INHIBITOR -S : Highly efficient non-foaming acid pickling inhibitor used in

pickling with sulphuric acid; up to 95° C. Highly stable at all acid concentrations.

Efficient in prevention of hydrogen embrittlement.

INHIBITOR - 123 : A premium performance inhibitor used in oil field acidizing,

descaling of heat exchangers, boilers, where a very high performance and stability at

elevated temperatures are desired. Used with HCl and various organic acids at

temperatures 80-100° C.

UNIWET - 75 : A foaming surfactant for use in pickling acids to prevent acid sprays,

metal pitting and to impart a clean metal surface. Used up to 65° C.

PHOSFINE - MA & PHOSFINE - MB : Activator & grain refiner to be used

together in PHOSFINE - M 11 pre-rinsing bath to build up coating with close

dimensional tolerance.

PHOSFINE   ACCELERATOR - A : A chemical in powder form to quicken the

phosphating operation and to lower the temperature of operation. Used in cold and hot

phosphating operations.

ARDEE offers a wide range of phosphating and allied metal finishing &

support  chemical products for your metal finishing needs. For further

information on our range of metal finishing and support chemicals or to

discuss your unique requirements, please contact us by phone / fax to  044-

23650610  /  044-23650782  or  by mobile to   9940129761   or by e-mail to

doss@vsnl.com     or  write to  ARDEE  & CO., 4/34, West Sivan Koil Street,

Vadapalani, Chennai - 600 026,  INDIA

CHAPTER – VII

VII ANALYSIS AND INTERPRETATION

TABLE – 1

AGE GROUP OF THE RESPONDENTS

Age Group No. of Respondents Percentage

Below 25 10 10%

26 – 30 80 80%

31 – 40 3 3%

Above 40 7 7%

Total 100 100%

Source: Questionnaire

Inference:

The maximum respondent of 80% lies in the age group of 26-30 and a minimum of

3% in the age group of 31-40. The other respondents of 10% and 7% lie in the age

group of below 25 and above 40 respectively.

10%

80%

3%7%

Below 25

26 – 30

31 – 40

Above 40

TABLE – 2

GENDER OF THE RESPONDENTS

Gender No. of Respondents Percentage

Male 78 22%

Female 22 78%

Total 100 100%

Source: Questionnaire

Inference:

78% of the respondents are Female and 22% are Male.

78

22%

22

78%

0

20

40

60

80

Male Female

TABLE – 3

MARITAL STATUS OF THE RESPONDENTS

Marital Status No. of Respondents Percentage

Single 57 57%

Married 43 43%

Total 100 100%

Source: Questionnaire

Inference:

57% of the respondents are unmarried and the remaining of 43% are Married

57%

43%

Single

Married

TABLE – 4

EDUCATIONAL QUALIFICATION OF THE RESPONDENTS

Educational Qualifications No. of Respondents Percentage

B.Com / Graduated 22 22%

C.A. Inter 12 12%

MBA 4 4%

CA 61 61%

Others 1 1%

Total 100 100%

Source: Questionnaire

Inference:

The maximum of 61% has acquired CA, and a minimum respondent of 1% fall under

the other category. While 22% has acquired B.Com or graduates and 12% are CA

Inter.

No. of Respondents

22%

12%

4%61%

1%B.Com / Graduated

C.A. InterMBA

CA

Others

TABLE – 5

WORK EXPERIENCE OF THE RESPONDENTS

Work Experience No. of Respondents Percentage

Below 6 months 23 23%

Between 6 – 12 months 63 63%

Between 1 & 2 years 3 3%

Above 2 years 11 11%

Total 100 100%

Source : Questionnaire

Inference :

The maximum of 63% have 6-12 months experience and a minimum of 3% have

between 1 & 2 years of experience. While 11% have more than 2 years of experience

and 23% have below 6 months of experience.

23%

63%

3% 11%

Below 6 months

Betw een 6 – 12 months

Betw een 1 & 2 years

Above 2 years

TABLE – 6

INCOME RANGE OF THE RESPONDENTS

Income Range No. of Respondents Percentage

Below 10,000 27 27%

10,000 – 20,000 31 31%

20,001 – 30,000 19 19%

30,001 – 40,000 18 18%

Above 40,000 5 5%

Total 100 100%

Source : Questionnaire

Inference :

The maximum of 31% lie in the income range of 10,000 – 20,000 and the minimum

5% lie in the income range of above 40,000. While 19% lie between 20,001 & 30,000

and 18% lie in the range of 30,001 & 40,000.

27%

31%

19%

18%5%

Below 10,000

10,000 – 20,000

20,001 – 30,000

30,001 – 40,000

Above 40,000

TABLE – 7

RESPONDENTS ON DEPARTMENT – WISE

Department No. of Respondents Percentage

Healthcare 21 21%

PMS 35 35%

Lighting 20 20%

Consumer Electronics 12 12%

Administration 12 12%

Total 100 100%

Source : Questionnaire

Inference :

The maximum of 35% respondents were from PMS and a minimum of 12% in

administration and Consumer Electronics. While 21% are in Healthcare and 20% are

in lighting.

21%

35%20%

12%

12%Healthcare

PMS

Lighting

Consumer Electronics

Administration

TABLE – 8

RESPONDENTS - DESIGNATION – WISE

Designation No. of Respondents Percentage

Officer – Financial Services 33 33%

Executives 26 26%

Asst. Manager 24 24%

Manager 9 9%

Others 8 8%

Total 100 100%

Source : Questionnaire

Inference :

The maximum of 33% respondents are Officer – Financial Services and minimum of

8% are from other cadre. While 26% are Executives, 24% are Assistant Managers and

9% are Managers.

33%

26%

24%

9% 8%Officer – Financial Services

Executives

Asst. Manager

Manager

Others

TABLE – 9

RESPONDENT’S VIEW ON THE INDIVIDUAL OBJECTIVE SETTING

Setting Individual Objectives based on No. of Respondents Percentage

Key Result Areas 23 23%

Performance Standards set 43 43%

Expected Performance development 34 34%

Others 0 0%

Total 100 100%

Source : Questionnaire

Inference :

43% respondents views are on the Performance Standard set, 34% on Expected

performance development and 23% on the Key result area.

23%

43%

34%

0%0%

10%

20%

30%

40%

50%

Key Result Areas PerformanceStandards set

ExpectedPerformancedevelopment

Others

TABLE – 10

AGREEMENT OF THE RESPONDENTS ON THE OUTCOME OF THE OBJECTIVES

Major Objectives which provides a basis for central decision making and

to boost morale

No. of Respondents Percentage

Strongly Agree 33 33%

Agree 66 66%

Disagree 1 1%

Strongly Disagree 0 0%

Total 100 100%

Source : Questionnaire

Inference :

33% respondents fully agree on the concept “Major Objectives which provides a basis

for central decision making and to boost morale”, 66% agree to it and 1% disagree to

it.

33%

66%

1% 0%0%

10%

20%

30%

40%

50%

60%

70%

Strongly Agree Agree Disagree Strongly Disagree

ONE WAY ANOVA

Null Hypothesis H0: There is no significance difference between the agreement levels

of the respondent towards the various criteria on the job.

X1 X12 X2 X2

2 X3 X32 X4 X4

2 X5 X52

12 144 60 3600 20 400 7 49 1 1

34 1156 52 2704 11 121 3 9 - -

21 441 59 3481 15 225 5 25 - -

25 625 69 4761 4 16 1 1 1 1

34 156 62 3844 2 4 2 4 - -

X1

126X1

2

3522X2

302X2

2

18390X3

52X3

2

766X4

18X4

2

88X5

2X5

2

2

TOTAL NUMBER OF ITEMS N = 22; TOTAL NUMBER OF CRITERIA n = 5

Step 1:

Total sum of all the items T = X1 + X2 + X3 + X4 + X5

= 126 + 302 + 52 + 18 + 2 = 500

Correction Factor CF = T 2 / N = (500) 2 / 22 = 11363.6

Step 2:

Total sum of squares

TSS = X12 + X2

2 + X32 + X4

2 + X52 – CF

= 3522 + 18390 + 766 + 88 + 2 – 11363.6 = 11404.4

Step 3:

Between Sum of Squares

BSS = (X1)2/n + (X2)2/n + (X3)2/n + (X4)2/n + (X5)2/n

= 1262 /5 + 3022 / 5 + 522 / 5 + 182 / 5 + 22 / 5 – 11363.6

= 3175.2 + 18240.8 + 540.8 + 64.8 + 2 – 11363.6

= 10660

Step 4:

Error Sum of Squares

ESS = TSS – BSS

= 11404.4 – 10660 = 744.4

Step 5: Anova Table

Source of Variation

Sum of Squares

Degrees of Freedom Variance F

BSS 10660 5 – 1 = 4 10660/4 = 2665 2665 / 43.8 = 60.8ESS 744.4 22 – 5 = 17 744.4/17 = 43.8

From the above table, Calculated value of F = 60.8

Tabulated value of F = 2.96 (For degrees of freedom v1 = 4 ; v2 = 17)

Since the calculated value of F is greater than tabulated value of F, We reject H 0 at

5% level of significance.

Inference :

There is significance difference between the agreement levels of the respondent

towards the various criteria on their job.

TABLE – 11

THE AGREEMENT LEVEL OF RESPONDENT ON THEIR JOB

CRITERIA / AGREEMENT LEVEL

LIKERT SCALE

STRONGLY AGREE AGREE

NEITHER AGREE

NOR DISAGREE

DISAGREE HIGHLY DISAGREE

T = WEIGHTAGE

OF RESPONSE /

TOTAL RESPONDENTS2 1 0 -1 -2

Very High Mental stress

RESPNONSE 12 60 20 7 175 / 100 = 0.75WEIGHT 24 60 0 -7 -2

Monotony of Work

RESPNONSE 34 52 11 3 0 117 / 100 = 1.17WEIGHT 68 52 0 -3 -Frequent Updation

of knowledge

RESPNONSE 21 59 15 5 0

96 / 100 = 0.96WEIGHT 42 59 0 -5 -

High level of team leaders

assistance

RESPNONSE 25 69 4 1 1

116 / 100 = 1.16WEIGHT 50 69 0 -1 -2

Strong support

from sub-ordinates

RESPNONSE 34 62 2 2 0

128 / 100 = 1.28WEIGHT 68 62 0 -2 -

Source : Questionnaire

Inference :

The respondents give more weightage to ‘Strong Support from sub-ordinates’ and less

weightage to ‘Very high mental stress’ in the agreement level of their job.

0.75

1.17

0.96

1.161.28

0

0.2

0.4

0.6

0.8

1

1.2

1.4

Ver

y H

igh

Men

tal

stre

ss

Mon

oton

yof

Wor

k

Freq

uent

Upd

atio

n of

know

ledg

e

Hig

h le

vel

of te

amle

ader

sas

sist

ance

Stro

ngsu

ppor

tfro

m s

ub-

ordi

nate

s

T=Weightage of response / Total response

TABLE – 12

FREQUENCY OF THE PERFORMANCE APPRAISAL PROGRAM

Period No. of Respondents Percentage

Once in 3 months 66 66%

Once in 6 months 11 11%

Once in a year 23 23%

Total 100 100%

Source : Questionnaire

Inference :

For the awareness on the frequency of the performance appraisal program, 66%

responded to once in 3 months, 11% to once in 6 months, 23% to once in a year.

66%

11%

23%

0%

10%

20%

30%

40%

50%

60%

70%

Once in 3 months Once in 6 months Once in a year

TABLE – 13

THE PREFERENCE RANKING ON THE CRITERION LEVEL OF ASSESSING THE PERFORMANCE OF THE EMPLOYEES

Kolmogrov – Simnrov Test

Null Hypothesis H0 : There is no significant relationship between the various criteria

for assessing the performance of the employees.

CRITERIA / AGREEMENT LEVEL

II III IV VT= WEIGHTAGE OF RESPONSE /

TOTAL RESPONDENTS5 4 3 2 1

Employee Output

RESPNONSE 16 11 24 41 8286 / 100 = 2.86

WEIGHT 80 44 72 82 8

Benefit to the Organization

RESPNONSE 10 3 6 12 69173 / 100 = 1.73

WEIGHT 50 12 18 24 69

Analytical Ability

RESPNONSE 13 8 31 30 18268 / 100 = 2.68

WEIGHT 65 32 93 60 18

Understanding Skills

RESPNONSE 41 29 21 8 1401 / 100 = 4.01

WEIGHT 205 116 63 16 1

Technical Ability

RESPNONSE 20 49 18 9 4372 / 100 = 3.72

WEIGHT 100 196 54 18 4Total 15

O1 E1 |O1 - E1|

0.194 0.2 0.008

0.117 0.2 0.083

0.163 0.2 0.037

0.272 0.2 0.072

0.252 0.2 0.052

Where E = 1/5 = 0.2

Calculated Value = Highest VALUE = 0.083

Table Value = 1.36 / √n = 1.36 / √100 = 0.136

Since tabulated value > Calculated value, Reject H0.

Inference :

There is significant difference relationship between the various criteria for assessing

the performance of the employees.

2.86

1.73

2.68

4.01 3.72

00.5

11.5

22.5

33.5

44.5

Employe

e Outp

ut

Benefi

t to th

e Org

aniza

tion

Analyt

ical A

bility

Under

stand

ing Skil

ls

Tech

nical

Ability

RANK CORELATION

As the Analytical Ability and the Technical Ability are closer, we will find whether

there is any linking between them.

x0 Rank xi y0 Rank yi di = xi - yi di2

13 4 20 2 2 4

8 5 49 1 4 16

31 1 18 3 -2 3

30 2 9 4 -2 3

18 3 4 5 -2 3

Total ∑ di2 32

R(x,y) = 1 - 6 ∑ di2

Where n = 5n(n2 - 1)

= 1 - 6 x 32

5 (52 - 1)

= 1 - 192

120

Inference :

Since the rank correlation 0.6 is maximum and also positive, the Analytical ability

and the Technical Ability have a common linking in the employee’s preference level

of assessing the performance.

TABLE – 14

PURPOSE OF THE PERFORMANCE APPRAISAL PROGRAM

Purpose of the performance appraisal program No. of Respondent Percentage

To encourage the employees 49 49%

To promote the employees 21 21%

To identify the strength & weakness of employees 16 16%

To offer apt training programs to the employees 7 7%

To satisfy the company’s norms & regulations 7 7%

Total 100 100%

Source : Questionnaire

Inference :

Maximum of 49% felt that it is to encourage the employees and minimum of 7% felt

it to offer apt training program to the employees and another 7% to satisfy the

company’s norms and regulations. Others 21% felt it is to promote the employees and

16% to identify the strength and weakness of the employees.

Purpose of the performance appraisal program

49%

21% 16%7% 7%

100%

0%

20%

40%

60%

80%

100%

120%

To encouragethe employees

To promotethe employees

To identify thestrength &

weakness ofemployees

To offer apttraining

programs tothe employees

To satisfy thecompany’snorms &

regulations

Others

TABLE – 15

EXTENT OF SELF DEVELOPMENT BY THE PERFORMANCE APPRAISAL PROGRAM

Extent of Self - Development No. of Respondent Percentage

Very great extent 47 47%

Some extent 53 53%

Not at all 0 0%

Total 100 100%

Source : Questionnaire

Inference :

47% had self development by the Performance Appraisal Program to very great extent

and 53% had some extent of self development.

Extent of Self development by Performance Appraisal Program

47%53%

0%0%

10%

20%

30%

40%

50%

60%

Very great extent Some extent Not at all

TABLE – 16

THE AGREEMENT LEVEL ON THE IMPLICATION OF PERFORMANCE APPRAISAL SYSTEM

CRITERIA / AGREEMENT LEVEL

LIKERT SCALE

Strongly Agree Agree

Neither Agree nor Disagree

Disagree Highly Disagree

T = WEIGHTAGE OF RESPONSE /

TOTAL RESPONDENTS

2 1 0 -1 -2Healthy

Discussions between

appraiser and the appraise

RESPNONSE 17 78 4 1 0

111 / 100 = 1.11WEIGHT 34 78 0 -1 0

Identifying the training needs of

the employee

RESPNONSE 17 81 1 1 0114 / 100 = 1.14WEIGHT 34 81 0 -1 0

Planning promotional / incremental

schemes

RESPNONSE 29 62 2 7 0

113 / 100 = 1.13WEIGHT 58 62 0 -7 0

Reviewing various job

requirements

RESPNONSE 15 74 6 4 198 / 100 = 0.98WEIGHT 30 74 0 -4 -2

Obtaining overall feedback about its functioning

style

RESPNONSE 18 57 23 1 1

9 / 100 = 0.9WEIGHT 36 57 0 -1 -2

Increase Employee

productivity

RESPNONSE 22 74 2 2 0116 / 100 = 1.16WEIGHT 44 74 0 -2 0

Comfortable achievement of the company’s

target

RESPNONSE 23 59 13 2 3

100 / 100 = 1WEIGHT 46 59 0 -2 -3

Source : Questionnaire

Inference :

The respondents give more weightage to ‘Increase employee productivity’ and less

weightage to ‘Obtaining overall feedback about its functioning style’ in the agreement

level.

1.11 1.14 1.13

0.980.9

1.16

1

0

0.2

0.4

0.6

0.8

1

1.2

1.4

HealthyDiscussions

betweenappraiser andthe appraise

Identifyingthe trainingneeds of theemployee

Planningpromotional /incrementalschemes

Reviewingvarious job

requirements

Obtainingoverall

feedbackabout its

functioningstyle

IncreaseEmployee

productivity

Comfortableachievement

of thecompany’s

target

ONE WAY ANOVA

Null Hypothesis H0: There is no significance difference between the agreement levels

of the respondent towards the various criteria on the implication of Performance

Appraisal System.

X1 X12 X2 X2

2 X3 X32 X4 X4

2 X5 X52

17 289 78 6084 4 16 1 1 0 0

17 289 81 6561 1 1 1 1 0 0

29 841 62 3844 2 4 7 49 0 0

15 225 74 5476 6 36 4 16 1 1

18 324 47 3249 23 529 1 1 1 1

22 484 74 5476 2 4 2 4 0 0

23 529 59 3481 213 169 22 4 3 9

X1

141X1

2

2981X2

485X2

2

34171X3

51X3

2

759X4

18X4

2

76X5

5X5

2

11

TOTAL NUMBER OF ITEMS N = 31; TOTAL NUMBER OF CRITERIA n = 7

Step 1:

Total sum of all the items T = X1 + X2 + X3 + X4 + X5

= 141 + 485 + 51 + 18 + 5 = 700

Correction Factor CF = T 2 / N = (700) 2 / 31 = 15806.5

Step 2:

Total sum of squares

TSS = X12 + X2

2 + X32 + X4

2 + X52 – CF

= 2981 + 34171 + 759 + 76 + 11 – 15806.5 = 22191.5

Step 3:

Between Sum of Squares

BSS = (X1)2/n + (X2)2/n + (X3)2/n + (X4)2/n + (X5)2/n

= 1412 / 7 + 4852 / 7 + 512 / 7 + 182 / 7 + 52 / 3 – 15806.5

= 2840.1 + 33603.6 + 371.6 + 46.3 + 8.3 – 15806.5 = 21063.4

Step 4:

Error Sum of Squares

ESS = TSS – BSS

= 22191.5 – 21063.4 = 1128.1

Step 5: Anova Table

Source of Variation

Sum of Squares

Degrees of Freedom Variance F

BSS 21063.4 7 – 1 = 6 21063.4/6 = 3510.6 3510.6/47 = 74.7ESS 1128.1 31 – 7 = 24 1128.1 / 24 = 47

From the above table, Calculated value of F = 74.7

Tabulated value of F = 2.51 (For degrees of freedom v1 = 6 ; v2 = 24)

Since the calculated value of F is greater than tabulated value of F, We reject H 0 at

5% level of significance.

Inference :

There is significance difference between the agreement levels of the respondent

towards the various criteria on the implication of the Performance Appraisal System.

TABLE – 17

AWARENESS ON THE USAGE OF THE APPRAISAL DATA BY THE DEPARTMENT

Usage of the appraisal data by the HR department No. of Respondents Percentage

Yes 86 86%

No 4 4%

Not aware 10 10%

Total 100 100%

Source : Questionnaire

Inference :

86% respondent felt that the appraisal data is being used by the HR Department and

47% felt it is not used and 10% were not aware of the usage.

TABLE – 18

Usage of Appraisal data by the HR department

86%

4%10%

0%

20%

40%

60%

80%

100%

Yes No Not aware

KIND OF REMEDIAL MEASURES TAKEN BASED ON THE PERFORMANCE APPRAISAL PROGRAM

Kind of remedial measures taken based on the performance appraisal program

No. of Respondents Percentage

Plan unique training programmes 26 26%

Offer effective counseling session 44 44%

Restructuring the performance management system 10 10%

Re-organizing the company’s expected standards 7 7%

Others 0 0%

Unaware 13 13%

Total 100 100%

Source : Questionnaire

Inference :

44% felt that performance appraisal program offers effective counseling session, 26%

felt that it plans unique training programs, 7% felt it recognizes the company’s

expected standards, 10% on restructuring the performance management system and

13% were unaware of it.

TABLE – 19

26%

44%

10%7%

0%

13%

0%5%

10%15%20%25%30%35%40%45%50%

Plan uniquetraining

programmes

Offer effectivecounseling

session

Restructuring theperformancemanagement

system

Re-organizing thecompany’sexpectedstandards

Others Unaw are

AGREEABLENESS OF THE PREFORMANCE RELATED – PAY

Agreeableness No. of Respondents Percentage

Agree 91 91%

Disagree 9 9%

Total 100 100%

Source : Questionnaire

Inference :

91% respondents were agreeing on the performance – related pay while 9% were

disagreeing on it.

TABLE – 20a

Agreeableness of Performance Related pay

91%

9%

0%

20%

40%

60%

80%

100%

Agree Disagree

Agreeableness ofPerformance Related pay

RESPONDENT’S RECEIPT OF THE PERFORMANCE – RELATED PAY

Received No. of Respondents Percentage

Yes 86 86%

No 14 14%

Total 100 100%

Source : Questionnaire

Inference :

86% respondents were recipient of the performance – related pay while 14% were non

– recipient.

TABLE – 20b

Recipient of Performance - related pay

86%

14%

0%

20%

40%

60%

80%

100%

Yes No

Recipient of Performance- related pay

KIND OF PERFORMANCE RELATED – PAY

Kind of Performance-Related Pay No. of Respondents Percentage

Merit Pay 52 52%

Individual Bonuses 1 1%

Team Bonuses 0 0%

Company-wide Schemes 4 4%

Share Schemes 0 0%

Incentive Gifts 12 12%

Skill based pay 30 30%

Others 1 1%

Total 100 100%

Source : Questionnaire

Iference :

52% received merit pay, 30% received skill based pay while other 1% received

individual bonuses, 4% received company-wide schemes, 12% received incentive

gifts and 1% received other benefits.

TABLE – 21a

52%

0%

4%

0%

12%

30%

1%

1%

Merit PayIndividual Bonuses

Team Bonuses

Company-wide Schemes

Share Schemes

Incentive GiftsSkill based pay

Others

EXISTENCE OF PERIODIC REVIEW

Existence No. of Respondents Percentage

Yes 96 96%

No 4 4%

Total 100 100%

Source : Questionnaire

Inference :

96% responded on the existence of a periodic review, while 4% responded for non-

existence.

TABLE – 21b

Existence of Periodic review

96%

4%

0%

20%

40%

60%

80%

100%

120%

Yes No

Existence of Periodicreview

FREQUENCY OF PERIODIC REVIEW

Frequency of periodic review No. of Respondents Percentage

Once in 6 months 30 30%

Once in 1 year 64 64%

Based on Company’s Profit tenure 4 4%

Others 2 2%

Total 100 100%

Source : Questionnaire

Inference :

64% responded that periodic review is conducted once in a year, 30% responded that

it was conducted once in 6 months, 4% responded that it is conducted based on the

company’s profit tenure and 2% as others.

TABLE – 22a

30%

64%

4% 2% Once in 6 months

Once in 1 year

Based on Company’sProfit tenure

Others

THE ADOPTION OF SUCCESSION PLANNING

Adoption No. of Respondents Percentage

Yes 83 83%

No 5 5%

Unaware 12 12%

Total 100 100%

Source : Questionnaire

Inference :

83% responded that the succession planning is adopted, whereas 5% responded for

non-adoption and 12% were unaware on succession planning.

TABLE – 22b

83%

5%12%

0%

20%

40%

60%

80%

100%

Yes No Unaware

KIND OF SUCCESSION PLANNING

Kind of Succession Planning No. of Respondents Percentage

Periodic Audit of Existing executives 10 12.05%

Implementation of Effective Appraisal Plans 45 54.22%

Planning of Individual Career Paths 7 8.43%

Organizing of Routine Career Counseling 10 12.05%

Offering of Accelerated Promotion Schemes 6 7.23%

Implementation of Planned Recruitment Policies 5 6.02%

Others 0 0%

Total 100 100%

Source : Questionnaire

Inference :

54.22% responded that Effective Appraisal Plans are implemented, 12.05% each

responded towards Periodic Audit of existing executives and organizing of Routine

Career Counseling. Also 8.43% responded that Individual Career paths are planned,

7.23% responded that Accelerated Promotion Schemes are offered and 6.02%

responded on implementation of Planned Recruitment Policies.

TABLE – 23

12%

55%

8%

12%7% 6% 0%

Periodic Audit of Existingexecutives

Implementation ofEffective Appraisal Plans

Planning of IndividualCareer Paths

Organizing of RoutineCareer Counseling

Offering of AcceleratedPromotion Schemes

Implementation ofPlanned RecruitmentPolicies

Others

SATISFACTION LEVEL OF PERFORMANCE MANAGEMENT SYSTEM

Satisfaction Level No. of Respondents Percentage100% 31 31%90% 24 24%80% 18 18%70% 11 11%60% 13 13%50% 1 1%40% 1 1%30% 0 1%20% 0 0%10% 0 0%0% 0 0%

Total 100 100%

Source : Questionnaire

Inference :

As per table -23, the satisfaction levels of Performance Management System of

respondent are 31% towards 100% level, 24% level towards 90% level, 18% towards

80%, 11% towards 70%, 13% towards 60% and 1% each towards 50%, 40% and

30%.

Respondents on the Satisfaction Level of Performance Management System

31%

24%

18%

11%13%

1% 1% 1% 0% 0% 0%0%

10%

20%

30%

40%

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

CHAPTER – VIII

VIII FINDINGS

1. The maximum respondent of 80% lie in the age group of 26-30 and a

minimum of 3% in the age group of 31-40. The other respondents of 10% and

7% lie in the age group of below 25 and above 40 respectively. (Ref Table - 1)

2. 78% of the respondents are Female and 22% are Male. (Ref Table - 2)

3. 57% of the respondents are unmarried and the remaining of 43% are Married.

(Ref Table - 3)

4. The maximum of 61% has acquired CA, and a minimum respondent of 1% fall

under the other category. While 22% has acquired B.Com or graduates and

12% are CA Inter. (Ref Table - 4)

5. The maximum of 63% have 6-12 months experience and a minimum of 3%

have between 1 & 2 years of experience. While 11% have more than 2 years

of experience and 23% have below 6 months of experience. (Ref Table - 5)

6. The maximum of 31% lie in the income range of 10,000 – 20,000 and the

minimum 5% lie in the income range of above 40,000. While 19% lie between

20,001 & 30,000 and 18% lie in the range of 30,001 & 40,000. (Ref Table - 6)

7. The maximum of 35% respondents were from PMS and a minimum of 12% in

administration and Consumer Electronics. While 21% are in Healthcare and

20% are in lighting. (Ref Table - 7)

8. The maximum of 33% respondents are Officer – Financial Services and

minimum of 8% are from other cadre. While 26% are Executives, 24% are

Assistant Managers and 9% are Managers. (Ref Table - 8)

9. 43% respondents views are on the performance Standards set, 34% on

Expected performance development and 23% on the Key result area. (Ref

Table - 9)

10. 33% respondents fully agree on the concept “Major Objectives which provides

a basis for central decision making and to boost morale”, 66% agree to it and

1% disagrees to it. (Ref Table - 10)

11. There is significance difference between the agreement levels of the

respondent towards the various criteria on their job.

12. Since the rank correlation 0.6 is maximum and also positive, the Analytical

ability and the Technical Ability have a common linking in the employee’s

preference level of assessing the performance.

13. The respondents give more weightage to ‘Strong Support from sub-ordinates’

and less weightage to ‘Very high mental stress’ in the agreement level of their

job. (Ref Table - 11)

14. For the awareness on the frequency of the performance appraisal program,

66% responded to once in 3 months, 11% to once in 6 months, 23% to once in

a year. (Ref Table - 12)

15. There is significance difference between the agreement levels of the

respondent towards the various criteria on the implication of Performance

Appraisal System.

16. Maximum of 49% felt that it is to encourage the employees and minimum of

7% felt it to offer apt training program to the employees and another 7% to

satisfy the company’s norms and regulations. Others 21% felt it is to promote

the employees and 16% to identify the strength and weakness of the

employees. (Ref Table - 14)

17. 47% had self development by the Performance Appraisal Program to very

great extent and 53% had some extent of self development. (Ref Table - 15)

18. The respondents give more weightage to ‘Increase employee productivity’ and

less weightage to ‘Obtaining overall feedback about its functioning style’ in

the agreement level. (Ref Table - 16)

19. 86% respondent felt that the appraisal data is being used by the HR

Department and 47% felt it is not used and 10% were not aware of the usage,

(Ref Table – 17)

20. 44% felt that performance appraisal program offers effective counseling

session, 26% felt that it plans unique training programs, 7% felt it recognizes

the company’s expected standards, 10% on restructuring the performance

management system and 13% were unaware of it. (Ref Table - 18)

21. 91% respondents were agreeing on the performance – related pay while 9%

were disagreeing on it. (Ref table - 19)

22. 86% respondents were recipient of the performance – related pay while 14%

were non – recipient. (Ref Table – 20a)

23. 52% received merit pay, 30% received skill based pay while other 1%

received individual bonuses, 4% received company-wide schemes, 12%

received incentive gifts and 1% received other benefits. (Ref Table – 20b)

24. 96% responded on the existence of a periodic review, while 4% responded for

non-existence. (Ref Table – 21a)

25. 64% responded that periodic review is conducted once in a year, 30%

responded that it was conducted once in 6 months, 4% responded that it is

conducted based on the company’s profit tenure and 2% as others. (Ref Table

– 21b)

26. 83% responded that the succession planning is adopted, whereas 5%

responded for non-adoption and 12% were unaware on succession planning.

(Ref Table – 22a)

27. 54.22% responded that Effective Appraisal Plans are implemented, 12.05%

each responded towards Periodic Audit of existing executives and organizing

of Routine Career Counseling. Also 8.43% responded that Individual Career

paths are planned, 7.23% responded that Accelerated Promotion Schemes are

offered and 6.02% responded on implementation of Planned Recruitment

Policies.

28. As per table – 23, the satisfaction levels of Performance management System

of respondent are 31% towards 100% level, 24% level towards 90% level,

18% towards 80%, 11% towards 70%, 13% towards 60% and 1% each

towards 50%, 40% and 30%.

CHAPTER – XI

IX SUGGESTIONS

1. The employees are less aware on their individual objectives. So a proper mean can

be made for them to understand their objectives so that they can do their job more

effectively.

Manufacturing Industry’s attrition rate is very high compared to any other

industry today and the main cause for this high rate of attrition is because the

employees are not sure of their individual objectives, which leads to long-term

growth of the organization.

2. The performance appraisal program is not in detail in the employee’s minds.

Making the employees aware on hem can make appraisal perfect.

Most of the employees were not aware of the frequency or the criteria used by the

organization for assessing the performance level of the employees.

Proper information about the performance appraisal programs of the organization

must be disseminated to the employees during the induction program conducted

by the HR at the time of joining the organization.

3. Organizing workshop and counseling sessions for the employees to motivate them

effectively which will be reflected in the production through efficient involvement

on their job.

Programs for self-development of every employee must be organized for the

employee to work efficiently.

4. The recruitment procedure can also be refined so that only candidates with

effective working skills can be taken.

5. The employees are not fully aware about the activities involved in Succession

Planning.

6. The company must have a complete session with the employees about their needs

and to find out their view on Performance Appraisal.

7. Employees should be allowed to give their suggestions and proper measures can

be taken to fulfill their needs.

8. An effective way of assessing the employees Performance must be present.

9. The company must organize a meeting with all the employees once in every 1 or 2

months to discuss about the various matters and each and every employee must be

informed about the period of review for Performance Appraisal.

10. The employees should also be aware of the basis on which the company assesses

them.

11. Each and every employee from all the levels must be completely aware of the

Individual and the Company’s objectives on the whole.

CHAPTER – X

X CONCLUSION

The analysis of this research study on “The effectiveness of Performance

Management” in “ARDEE & Co manufacturing of metals Pvt. Ltd., Chennai”, states

that research was done to do an in-depth analysis on the Performance Management.

The objectives set for the analysis were fully consummated.

The results and findings bring about the company’s present managerial practices with

regard to the performance and states that it proceeds in fine manner. The employees

are fully satisfied and they expect improvement, which the company can execute. As

per the study, the company can make it ‘The Best’ by instigating the suggestions and

recommendations in their Performance Management.

The researcher has personally experienced the practical exposure on the corporate

practices and how the management theories, which he studied during the course, have

been put into practices. Also the analysis taught him how the manpower can be

properly utilized for a best Performance Management.

Bibliography

Luis I Gomez, David B. Balkin, Robert L. Lardy – Employee Development Part IV 2004, 3rd edition

Neale Frances, “Handbook of Performance Management”, 2002 Jaico Publishing House, Mumbai.

Robbins Stephen P & Coutler Mary, “Management”, Pentice – Hall of India Private Limited, New Delhi.

Gary Dessler – Training and Development of Performance Manager and Appraisal.

C.B. Mamoria and S.V. Gankar – Personal Management, 2nd Edition

QUESTIONNAIRE

A study on the effectiveness of performance management ARDEE &Co manufacturing of metals Pvt .ltd

Personal details:

1. Name: _____________________

2. Age:o Below 20o 21-30o 31-40o 40 above

3. Gender:o Maleo Female

4. Marital status: o Singleo Married

5. Education: o Graduate o Post Graduateo Others Specify ___________________

6. Work Experience:o Below 1 year o Between 1 & 3 years o Between 3 & 5 yearso Above 5 years

7. Income range (monthly) o Below 10,000o Between 10,000-20,000o Between 20,000-40,000o Between 40,000- 50,000o Above 50,000

8. Grade: o Officer

o Executive o Asst. managero Senior manager

9. How are the individual objectives set in your firm?

o Based on Key Result Areaso Based on performance standards set o Based on the performance development expected o Others _______

10. Major objectives were to provide a basis for central decision making (about pay and promotion) and to boost morale

o Fully agree o Agree o Disagree o Fully disagree

11. Please read the following statement and state your agreement level on the same:

Strongly agree neither agree disagree highly Agree nor disagree disagree

Very mental stress ( ) ( ) ( ) ( ) ( )

Monotony of work ( ) ( ) ( ) ( ) ( )

Frequent updating Of knowledge ( ) ( ) ( ) ( ) ( )

High level of teamLeader’s assistance ( ) ( ) ( ) ( ) ( )

Strong Support from Subordinates ( ) ( ) ( ) ( ) ( )

Additional Perks ( ) ( ) ( ) ( ) ( )

12. Please mention the frequency of performance appraisal program conducted in your organization

o Once in 3 month

o Once in 6 month

o Once in a year

13. According to you, on what parameters should the performance of employees be assessed in an organization?

o Employee output

o Benefit to the organization

o Analytical ability

o Understanding skills

o Technical ability

14. According to you for what purpose is this performance appraisal system practiced in your organization?

o To encourage the employees

o To promote the employees

o To identify the strength & weakness of employees

o To offer apt training programs to the employees

o To satisfy the company’s norms and regulations

o Others _____________

15. Does the performance appraisal system lead towards your self-development in the organization?

o To very great extent

o To some extent

o Not at all

16. Please read the following statement and state your agreement level on the same Strongly agree neither agree disagree highly

Agree nor disagree disagreeHealthy discussion betweenthe appraise and apraiseedeveloping mutual understanding betweenthem ( ) ( ) ( ) ( ) ( )

Identify the training needs Of the employee ( ) ( ) ( ) ( ) ( ) Planning the promotional/increment schemes ( ) ( ) ( ) ( ) ( )

Reviewing various job requirement obtaining overall feedback about its functioning style ( ) ( ) ( ) ( ) ( )

Increase employee productivity ( ) ( ) ( ) ( ) ( )

Comfortable achievement of the company’s target ( ) ( ) ( ) ( ) ( )

17. Do you think the H.R department for enforcing various job rotation and job enrichment techniques in your organization uses the appraisal data?

o Yeso Noo Not aware

18. What kind of remedial measures are being taken in your organization based on the performance appraisal program?

o Plans unique training programs o Offers effective counseling sessionso Restructuring the performance management system o Re-organizes the company’s expected standards o Others_______________________(if any please specify)o Unaware

19. Many employees support performance –related pay, expecting their pay will be higher as a result. Do you agree?

o Agree o Disagree

20. Have you so far received any performance related pay in your organization?

o Yeso No

If yes, please specify the relevant o Merit payo Individual bonuso Team bonuso Company-wide schemes o Share schemes o Incentive gifts o Skill based pay o Others _______________(if any please specify)

21. IS there any periodic review practiced for the employees in your organization?

o Yeso No

If yes please specify the reviewed period o Once in 6months o Once in a yearo Based on company’s profit tenure o Others__________________(if any please specify)

22. On the whole please mention your level of satisfaction with reference to the performance management system followed in your organization? (Please encircle your choice)________________________________________________________________________________________________________________________________________________________________________________________________________________________

23. Is succession planning adapted in your organization?

o Yeso Noo Unaware

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