Bhanutej Final Project (2)

8/8/2019 Bhanutej Final Project (2)

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Effectiveness Of Performance Management System In Hospitality sector

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1. INDUSTRY PROFILE:

HOSPITALITY INDUSTRY IN INDIA

Hospitality segment, just like many other segments in India is booming at anunprecedented pace. India faces a huge challenge of being "under roomed" while the

economy is growing rapidly. This provides for a huge opportunity for hospitality industry. A

lot of large real estate developers are also investing into this business to bridge the demand-

supply gap and leverage the opportunity.

A number of cities have blossomed with suburban "Silicon Valley" type Special Economic

Zones (SEZs). This is mostly driven due to strong growth in IT, BPO segments, increase in

foreign travelers, emphasized focus on tourism by government, affordable airlines fares, etc.

Several other factors such as Commonwealth Games in Delhi are fueling the need further.

The middle class is becoming more prosperous and native Indian tourist travel is growing

rapidly, particularly in places such as Goa, Kerala and Rajasthan.

Bangalore, Hyderabad, Chennai, Gurgaon, Pune and the suburbs of Mumbai are the areas

attracting international investment and as expected, are the cities with the largest

development pipelines. Combined, these cities account for 89 of the 161 projects in the

pipeline and 16,734 guestrooms, which is 68% of the rooms in India's total pipeline.

Of the 161 projects in India's pipeline, 100 will have 4 and 5 star designations. The other

61 are 1, 2 and 3 star developments. A number of them are new economy brands recently

designed for the Indian market place. Taj's Ginger Hotels is one such brand, Lemon Tree

and Red Fox are others in this category.

Almost all the major hotel operators such as Starwoods, Hilton, Intercontinental have

significant growth plans for India and have multiple projects in works or in pipeline.


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HOUSEKEEPING ORGANIZATIONS:THEIR HISTORY, PURPOSE,

STRUCTURES,AND PERSONNEL

By definition, hospitality is the cordial and generous reception and entertainment of

guests or strangers, either socially or commercially.From this definition we get the feeling

of the open house and the host with open arms, of a place where people are cared for.

Regardless of the reasons people go to a home away from home, the presumption is that they

need to be cared for there. They need a clean and comfortable place to rest or

sleep, food service, an area for socializing and meeting other people, access to stores and

shops, and a secure surrounding.Americans have often been described as a people on the

move, a mobile society. Even as our country expanded, we required bed and board.

Travelers in the early 1700s found hospitality similar to that in their countries of origin, even

though these new accommodations might have been in roadhouses, missions,or private

homes, and the housekeeping might have included no more than a bed of straw, changed

weekly.

Facilities in all parts of young America were commensurate with the demand of the

traveling public, and early records indicate that a choice was usually available; travelers

based the decision on where they expected to find good food, overnight protection, and

clean facilities. Even though the inns were crude, they were gathering places where anyone

could learn the news of the day, socialize, learn the business of the area, and rest.

The business of innkeeping has become the hotel industry of today, but the main

tenets remain: a clean, comfortable room, access to food and entertainment facilities, and

a courteous and concerned staff who mean it when they ask, May we be of service?

Housekeeping departments play a vital role in todays lodging industry. People involved

in housekeeping operations service guest rooms, maintain and service public and

special areas, and, in many instances, operate laund ries and recreational and health facilities.

The people of housekeeping are also a part of the overall team of hosts and hostesses

who welcome the hotels guests. They show concern and care when something goes wrong


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with the guests visit, and they are quick to initiate action that will make things right again.

Major hotel companies have been quick to recognize the value of housekeeping and

other service industry workers. Good hotel management does not see housekeeping

work as demeaning or menial. To the contrary, all high-quality hotel operationalmanagement

personnel have, at one time or another, performed housekeeping functions;

as a result, they understand the worth and value of the people who perform such functions

regularly.


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Garden & lawn

2. COMPANY PROFILE:

a. Background and inception of the company:

Dusters

y Leading Facilty Maintenance/ Management Services (FMS) company in Bangalore, IT capital ofIndia

y Second largest FMS company in India and amongst the top five players in the countryy Started in 1994, the company was transferred to the curent ownership in 1999y Lead by a team of experienced management and advisors who between them have a combined

FMS experience of nearly 50 years

y Client Base of 350+ including many worldwide reputed firmsy Client base growing at more than 30% and expected to remain high for the next few years


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Vision Statement

TO GROW AS A PREFERRED PARTNER PROVIDING BENCHMARKED SOFT SERVICES

WITH SKILLED AND COMMITED PEOPLE

Mission Statement

At Dusters Hospitality Services Pvt. Ltd., we pledge to provide distinctive quality and

unparalleled customer service as we strive to gain the respect and trust of our customers,

suppliers and partnered vendors.

The success of Dusters is determined by our success in operating as a unified team. We

have to earn the trust and respect of our customers every day in order to ensure the

customer makes the decision to choose our services.

Our success is built by creative & productive employees who are encouraged to make

suggestions while thinking "outside the box." Our job is essential to fulfilling our mission

everyday to the people who trust and respect us. The primary goal of Dusters and yours

as one of its employees is to live our mission and continue to be an industry leader. We

achieve this through dedicated hard work and commitment from every employee. It is the

desire of Dusters to have every employee succeed in their job, and be part of achieving

our goals.


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Work Flow System


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Chart showing the distribution of the market

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Sodexho Updater

services

ISS Dusters Express Others

Industry Distribution


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Products/Services Profile:

Services offered

Housekeeping services

y Dusters has a specialized and an experienced team who will work in coordination withtheir clients and deliver services in accordance with their standards and specification

y Daily sweeping and mopping of all the floor areay Cleaning of Dust, cobwebs as and when requiredy Cleaning of bathrooms, toilet blocks, wash basins, windows etc and provide air purifiers

for wash areas and wash basins

y Cleaning of window panels, glasses, partitions, scrubbing the floor tiles, etc.,y Disposal of wastesy Carpet shampooing consisting of a well experienced and a trained team specialized in

carpet shampooing.

Office assistance

y Executives who are experienced in handling day to day activities such as back officeassistance, maintenance of stationery filling and handling interdepartmental errand jobs

Lift marshal

y People who are experienced in operating different kinds of elevatorsFront tax

yExperienced in handling visitors/ customers and extending hospitality; and also attendinginbound and outbound calls

Mail room services

y Experienced executives for handling overall mail room management, collectingmaintaining, monitoring and tracking of couriers


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Caf services

y Dusters provide trained/ experienced executives for taking care of cleanliness of thecafeteria tables, chairs, glass panes and kitchen area.

Administrative / general

y Provides well experienced people in all aspects of office administration- word processing presentation formatting, contacts database maintenance, customer response, billing and

collection, appointment setting, calendar management, travel planning and coordination,

collecting and collating information, maintaining electronic records and databases,

maintaining mailing lists, sending mass mails etc.

Pantry services

y Pantry services include serving of tea and snacks to the customers, the daily arranging ofplates, fresh cups, clearing of used plate and cups, and the cleanliness of pantry area.

Reprographics

y Reprographics are responsible for the day to day bulk photocopying of dataHandyman services

y Dusters provide the manpower for handyman services such as electricians, plumbers,carpenter, masons and painters\

Help desk

y Receive calls/ mails and contacting the appropriate team members to respond to therequest for support as needed and also responding to caller for requests for assistance.

They provide people who have had prior experience in handling inbound inquiries and

providing accurate information


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Services support

Dusters provide experienced office boy who can do add and errand jobs like

y To provide efficient internal/ external delivery and collecting of mails and documentsy Handling daily bank deposits and cash withdrawalsy Cheque and cash collection from customersy Other tasks assigned by the superior.

Garden & Lawn Maintenance

Features

y Operations & Management of Daily Schedulesy Periodic Maintenancey Renewal / Replantingy Improvement of Aestheticsy Periodic Manu ring & Nutritiony Periodic Pesticide Controly Maintenance of Indoor Plants

Pest Control Services

Features

y Design Pest Control Schedulesy Plan Control Strategiesy Latest Equipment & Technologyy MIS / Reportingy Disposal & Removaly Use of Environment Friendly Chemicals


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Area of Operation:

National

Competitors in the Industry

ISS

ISS is one of the worlds largest facility services provider, with market presence in Europe, Asia,

U.S.A. and Australia. ISS has its operations in 50 countries and aspires to Lead Facility Services

globally. ISS has more than 4,50,000 employees and more than 125,000 business-to-business

customer.ISS Facility Services India Pvt. Ltd is headquartered in Mumbai and has Operations in

more than 19 cities.

Avon FMS

Avon FMS offers a range of support functions services such as building management and allied

services as well as manpower services to leading corporate houses in the country. AVON is one

among the select few service providers to have certification from ISO for high standards of

service rendered at client locations.

Paradigm Property and Facility Management Services

Paradigm Services started by a group of professionals from the Property/Facility and Real Estate

field is an upcoming organization with good resources to meet the requirements of demanding

global standards in infrastructure, processes and living ambience. Paradigm is an ISO

9000:2001 certified Company.

DMARC Services Pvt. Ltd.,

Incorporated in 2008, DMARC services Pvt. Ltd., is a facility management company having

experience in providing various services for industrial and commercial establishments in

Bangalore.


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Sodexho

Sodexho Facilities Management India Pvt. Ltd is a subsidiary of French MNC, Sodexho.

Headquartered in Paris, Mr.Michel Landel is currently the Chief Executive Officer of Sodexho.

Sodexho has been a major provider of Food and Facilities Management services in India for

more than 10 years.

Updater services

Acme Facility Management Services Pvt. Ltd

Carewel Facilities India Pvt. Ltd

Handiman Services Limited

4. SWOT ANALYSIS

STRENGTHS

y Large workforceDusters has a workforce of almost 9000 employees including the House keeping staff

deployed at the different sites and the back office staff. This is the largest workforce in a

facility management / maintenance service provider in South India. And with the merger

with TOTAL SOLUTIONS (Mumbai) the workforce is expected to increase to nearly

16000 employees.

y Presence in 5 main cities in the southDusters are proving their quality services in Bangalore, Mysore, Mangalore, Hyderabad

and Chennai in south India. Head office is located in Domlur, Bangalore. Dusters is also

present in Goa and Mumbai.

y 600+ Clients


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Dusters have a list of clients who are very big names in their respective fields. Some of

Dusters valued clients are Forum Mall, Golds Gym, Aditya Birla More, Reliance Com,

Central, IBM, HSBC, Honeywell, Big Bazaar, First source, Nokia, Kaati Zone,

Divyasree, FabIndia, The ORCHID and many more.

y Proper TrainingDusters provide training to the newly appointed House Keeping Staff on how to use the

various machineries while performing their jobs. This training is given to the HKS at a

6000sq ft. area in Whitefield.

y Merger with TOTAL SOLUTIONSDusters has gone into a merger with TOTAL SOLUTIONS from Mumbai. Now Dusters

will be able cater to the needs of the north Indian clients as well.

WEAKNESS

y No AdvertisingThe company unlike its competitors has no advertising done. The competitors are giving

out advertisements even though if they are small.

y Huge outstandingDuster lacks in proper collection of their outstanding and as a result the outstanding keeps

on increasing.

y No proper communicationThere is no proper communication between the departments or the people working in the

same department.

y Lack of trainingThere is no training provided to the back office staff on their recruitment. A lot of

mistakes are done due to the lack of training.


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y No Job descriptionA proper job description is not provided to the employees on their joining the company.

y No employee benefitsAccording to a recent survey conducted, majority of the employees said that they do not get any

employee benefits. Providing employee benefits will help the company to get more out of the

employees as it will be a motivating force to the employees.

OPPORTUNITIES

y Growing real estate and property management marketAfter recession the real estate business is booming, and this is an excellent opportunity

for the businesses who would like to expand. Dusters being number one in the market is

the top priority for these businesses to choose Dusters.

y Growth in BPO, IT sectorThe number of BPOs and IT companies being set up is high and these BPOs and IT

companies would always prefer to outsource their maintenance work to those who are

good in that field. Dusters has an excellent chance to meet the needs of their clients.

y Boom in retail sectorThe retail sector is recording a boom in its business. For example, Aditya Birla MORE

when established in Bangalore sought the services of Dusters and when they moved to

Mangalore, Dusters Mangalore provided services to them and the same followed when

MORE started in Mysore.

y InvestmentTVS Shriram Growth Fund I have invested in Dusters. This was done in November,

2009. Taking a cue from this investment Dusters can further expect more investment

from the foreign players who would like to enter the local FMS market. Dusters merger

with Total solutions from Mumbai is another reason for Dusters to expect further growth

in the market.


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y GlobalizationAs world markets continue to expand and the competitive field for companies enlarges,

facility management professionals will be asked to provide more and more work.

THREATS:

y Availability of manpowerFor any business one of the main problems is always loosing manpower to their

competitors or finding new employees. The same is the situation of Dusters. Dusters has

given the responsibility to their Area relationship Managers to hire people

y Large unorganized segment

y Growing competitors (local and international players)The number of competitors is constantly increasing in the market. Many international

companies from the same sector are setting up their base in Bangalore, along with the

international companies many local companies are also emerging.


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5. ANALYSIS OF FINANCIAL STATEMENT:

Balance sheet for the year ended 2008-2009

Liabilities as at 31-Mar-2009 Assets as at 31-Mar-2009


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Capital Account 100000.00 Fixed Assets 36067753.78

Share Capital Account 100000.00 BUILDING A/c 500929.00

Loans (Liability) 59924930.84 Cleaning Equipment 7830945.00

Bank OD A/c 42921183.42 Computers & Pheriperals 2344171.95

Secured Loans 6874332.62 Fixed Assets - Chennai 165775.00

Unsecured Loans 10090064.80 Fixed Assets - Goa

Advance for Sale of Asset 39350.00 Fixed Assets - Hyderabad 13525.00

American Express

3769 338254 31016

Furniture & Fixtures 1596373.95

Citi Bank OD Loan

Office Equipments 2000599.00

Current Liabilities 105609526.19 Plant & Machinery 12785229.43

Duties & Taxes 42417326.44 Vehicle - Four Wheeler 8802208.45

Provisions 11671724.00 Vehicle Two Wheeler 27997.00

Sundry Creditors 15271198.46 Provision for Depreciation

Deferred Tax Liability 156439.00 Current Assets 175651271.96

Medical Aid 541769.00 Closing Stock 743845.08

Met Life India Insurance -16088.00 Deposits (Asset) 4305168.73

Salaries Payable A/c 34845203.94 Loans & Advances (Asset) 1729515.00

Shamsher Puri Sundry Debtors 155009529.53

Shamsher Salary Payable A/c 721953.35 Cash-in-hand 194045.75

Suspense A/c Bank Accounts -6238511.61

Suspense A/c Recoverable Expenses 52675.60

47706119.19 TDS Receivable 13872289.31Opening Balance 10188979.87 Pre - Paid Expenses 592200.00

Current Period 37517139.32 Provision for Sales 4149275.00

Reimbursable Expenses -345392.43

Uniform Recoverable 1586632.00

Branch / Divisions 1621550.48

THE DUSTERS

B/DIVISION

Col. K P Puri

DHSPL GH* 1621550.48

Total 213340576.22 Total 213340576.22


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Mckensys 7S frame work with special reference to

organization study:

Current situation (Part-A)

Shared

Values

Strategy Structure Systems Style Staffs Skills

Shared

Values

Strategy

Structure

Systems

Style

Staffs

Skills

Future (Part-B)

Shared

Values

Strategy Structure Systems Style Staffs Skills

Shared

Values

Strategy

Structure

Systems

Style

Staffs

Skills


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a) Shared Values :As the employees and Employers is having a good relation between them .They share their

thoughts directly face to face in the current situation.

As there is no proper hierarchy maintained in the organisation it might lead to problems in

future. Their has to have a proper hierarchy maintained between the employees and the

employer and properly followed. While taking any decisions by the higher level.

b) Strategy :Strategy used by this organization is not so modernized . their has to be some changes in

terms of quality maintained by them.

c) Structure:As per to this organization the structure followed by this organization is correct .I dont think

there has to have any changes made in it.

d) Systems:e) Style :f) Staffs:g) Skills:


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EXECUTIVE SUMMARY

In this study I have tried to find out the perception of the Employees about Performance

Management System. Employees have their different perception, by analyzing the responses

given by them I have given some suggestions. Sample size of 50 has been taken. In the survey

both Executives and Non-executives were taken. Questionnaires were designed in such a way

that it was easy to understand and both Executives and Non- Executives can fill it. In the study

86% were Executives and 14% were Non-Executives, 80% were Male employees and 20% were

Female Employees. The age group was mainly between 45-55. Questions were mainly

Structured in the form of YES or NO, Ranking and Rating questions were used, suggestions for

improving Performance Management System were also asked in the questionnaires. Before

making the final questionnaires testing of the questionnaire was also done which help in knowing

the problem faced by the respondent i.e. may be some questions were not clearly understood, or

meaning of the question was not clear.

Following are some criteria which were taken into consideration while designing the

questionnaires:-

Simple Language was used.

Questions were not subjective.

Ambiguous Questions were avoided.

Questions were arranged in a logical order.

Complicated Questions were avoided.

In this study questions were asked taking the objective of the study in mind, and from

which correct analysis can be done and exact perception of the employees can be

known.


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OBJECTIVES OF THE STUDY

The study was .Perceptional Analysis of the Employees about Performance Management

System

Objective of the study are: -

Awareness of the employees towards the Performance Appraisal System. To find out that the employees were satisfied with the Performance Appraisal System. Was the Performance Appraisal System affective or not. What criteria were taken into consideration during Promotion? To provide suggestions for the improvement of the Performance Appraisal System.

METHODOLOGY

After being fully aware of the objectives of the study and the research problem, it was found

out that it was a descriptive research.

Data Collection: -

The survey was based on the Primary and Secondary data. The subject i.e. the employees of

Executive and Non-Executive level of the organization were given a set of questions in the form

of Questionnaire. These questions were focused on the awareness, effectiveness, importance and

satisfaction level of the employees.

Primary Data: -

Primary source include Questionnaires of Executive and Non-Executives.

Secondary Data: -

Secondary data includes information from manuals, internet, Personnel Management

textbook.

Sampling: -


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Random Sampling has been used in the survey. Sample size of 50 was taken. 86% were

Executives and 14% were Non-Executives, and the survey was conducted at the public sector

offices. The employees were given various questions to answer in the form of Questionnaire. I

conducted the survey at the organization I was able to get a response from 50 employees of

the organization.

PERFORMANCE APPRAISAL

Once the employee has been selected, trained and motivated, he is then appraised for his

performance. Performance Appraisal is the step where the management finds out how effective it

has been at hiring and placing employees. If any problems are identified, steps are taken to

communicate with the employee and to remedy them. A .performance appraisal. Is a process ofevaluating an employees performance of a job in terms of its requirements.

TERMINOLOGY USED

Employee appraisal techniques are said to have been used for the first time during the first

World War, when, at the instance of Walter Dill Scott, the US army adopted the .Man-to-

Man. rating system for evaluating military personnel. During the 1930 period rational wage

structure for hourly paid workers were adopted in industrial unit. Under this system, the policy of

giving grade wage increments on the basis of merit was expected. These early employees plans

were called merit-rating programmers, which continued to be so called up to the mid 50s. By

then, most of these plans were of the rating scale type, where emphasis was given to factors,

degrees and points. In the early 50s, however attention began to be devoted to the performance

appraisal of technical, professional and managerial personnel. Since then, as a result of

experiment and a great deal of study, the philosophy of performance appraisal has undergone

tremendous changes. Consequently, a change has also taken place in the terminology used. Now,

the older phrase merit rating is largely restricted to the rating of hourly paid employees, and is

used frequently in developing criteria for salary adjustment, transfer, promotion etc. The later

phrase, personnel appraisal, places emphasis on development on the individual as and widely

used to evaluate technical, professional and managerial personnel.


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Trends in Employee Appraisal

Item FormerEmphasis Present Emphasis

Terminology Merit Rating Employee Appraisal

Performance Appraisal

Purpose Determine qualification for

wage increase, transfer,promotion, lay off.

Development of the

individual, improvedperformance on the job, and

provide emotional security.Application For hourly paid workers For technical, professional and

managerial employees.

Factors Rated Heavy emphasis uponpersonal traits.

Results, accomplishment,performance.

Techniques Rating scales with emphasisupon scales, statistical

manipulation of data forcomparison purposes

Mutual goal setting, criticalincident, group appraisal,

performance standards, lessquantitative.

Post- Appraisal Interview Superior communicates hisrating to employees and tries

to sell his evaluation to him,seeks to have employees

conform to his view.

Superior stimulates employeeto analyze himself and set own

objectives in line with jobrequirements, superior is

helper and counselor.

IMPORTANCE AND PURPOSES

Performance appraisal has been considered as a most significant and indispensable tool for

an organization, for the information it provide is highly useful in making decisions regarding

various personal aspects such as promotions and merit increases. Performance measures also

link information gathering and decision-making processes, which provide a basis for judging

the effectiveness of personnel sub-division such as recruiting, selection, training and

compensation.

McGregor says: .Formal performance appraisal plans are designed to meet three needs, one


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of the organization and the other two of the individual, namely:

They provide systematic judgments to back up salary increases, transfers, demotion

or termination.

They are means of telling a subordinate how he is doing, and suggesting needed changes in his

behaviors attitudes, skills, or job knowledge. They let him know .where he stands. with the boss.

The superior uses them as a base for coaching and counseling the individual by the

superior. On the basis of merit rating or appraisal procedures of companies in India, the main

objectives of employee performance appraisal are:

To enable an organization to maintain and inventory of the number and quality of all

managers and to identify and meet their training needs and aspirations; To determine increments

rewards, and provide a reliable index for promotions and transfers to positions of greater

responsibility;

To maintain individual and group development by informing the employee of his

performance standard;

To suggest ways of improving the employees performance when he is not found to

be up to the mark during the review period;

To identify training and development needs and to evaluate effectiveness of training

and development programmers;

To plan career development, human resources planning based on potentialities It will, thus, be

seen that performance appraisal is an important tool of personnel management. It is a judgment

of the characteristics, traits and performance of employees and has a wide range of utility. For

example:

It unifies the appraisal procedure so that all employees are rated in the same manner, utilizing

the same approach so that the ratings obtained of separate personnel are comparable.

It provides information, which is useful in making and enforcing important decisions about

selection, training, promotions, pay increases, lay-offs, discharges, salary adjustments, etc.

It provides information in the form of records about ratings, which may be produced as

evidence when decisions on rating are challenged in a court of law.

It serves to stimulate and guide employee development. Appraisal programmer provide

information on the weaknesses of employees and enable to gauge their own value and

accomplishments and to know what they are doing. The weaknesses provide the bases for


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an individual development programmed.

The seven criteria for assessing performance are:

Quality: The degree to which the process or result of carrying out an activity

approaches perfection.

Quantity: The amount produced, expressed in monetary terms, numbers of units or

number of completed activity cycles.

Timeliness: The degree to which an activity or a result produced.

Cost Effectiveness: The degree to which the use of the organizations resources is

maximized in the sense of getting the highest gain.

Need For Supervision: The degree to which a job performance can carry out a job

function without supervisory assistance.

Interpersonal Impact: The degree to which a performer promotes feelings of selfesteem,

goodwill and co-operation among co-workers and subordinates.

Training: Need for training for improving his skills knowledge The above criteria relate to

past performance and behavior of an employee. There is also the need for assessing the potential

of an employee for future performance, particularly when the

employee is tipped for assuming greater responsibilities.

Approaches To Performance Appraisal

Generally speaking three approaches are used in making performance appraisal:

A casual, unsystematic, and often haphazard appraisal: This method was commonly used

in the past, but now it has given place to a more formal method, the main basis being seniority or

quantitative measures of quantity and quality of output for the rank-and-file personnel.

The traditional and highly systematic measurement of: Employee characteristics, and

employee contribution, or both. It evaluates all the performance in the same manner, utilizing the

same approach, so that the ratings obtained of separate personnel are comparable.


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The behavior approach, emphasizing mutual goal-setting: This approach is based on the

behavioral value of fundamental trust in the goodness, capability and responsibility of human

beings.

THE EVALUATION PROCESS

The process of evaluation begins with the establishment of .performance standards. At the time

of designing a job and formulating a job description, performance standards are usually

developed for the position. These standards should be clear and not vague, and objective enough

to be understood and measured. These standards should be discussed with the supervisor to find

out which different factors are to be incorporated, weights and points to be given to each factor

and these then should be indicated on the Appraisal Form, and later on used for appraising the

performance of the employee.

The next step is to communicate these standards to the employees, for the employees left to

themselves, would find it difficult to guess what is expected of them. To make communication

effective, .feedback. is necessary from the subordinate to the manager. Satisfactory feedback

ensures that the information communicated by the manager has been received and understood in

the way it was intended.

The third step is the .measurement of performance.. To determine what actual performance is, it

is necessary to acquire information about it. We should be concerned wit

how we measure and what we measure. Four sources of information are frequently used to

measure actual performance: personal observation, statistical reports, oral reports, and written

reports.

The fourth step is the comparison of actual performance with standards. The employee is

appraise d and judged of his potential for growth and advancement. At the next stage, the results

of appraisal are discussed periodically with the employees, where good points, weak points, and

difficulties are indicated and discussed so that the performance is improved. The information that

subordinate receive about his assessment has a great impact on his self-esteem and on his


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subsequent performance. Conveying good news is considerably less difficult for both the manger

and the subordinate than when performance has been below expectation.

Thefinal step is the initiation of corrective action when necessary; immediate corrective action

can be of two types. One is immediate and deals predominantly with symptoms. The other is

basic and delves into causes.

Immediate corrective action is often described as .putting our fires., whereas basic corrective

action gets to the source of deviation and seeks to adjust the difference permanently.

ESTABLISH PERFORMANCE STANDARDS

COMMUNICATE PERFORMANCE EXPECTATION TO EMPLOYEES

MEASURE ACTUAL PERFORMANCE

COMPARE ACTUAL PERFORMANCEWITH STANDARDS

DISCUSS THE APPRAISALWITH THE EMPLOYEE

IF NECESSARY, INITIATE CORRECTIVE ACTION

METHODS, TECHNIQUES OR TOOLS FOR APPRAISING

PERFORMANCE

Several methods and techniques are available for measurement of the performance of an

employee. The methods and scales differ for obvious reasons.

First, they differ in the sources of traits or qualities to be appraised. The qualities may differ

because of differences in job requirements, statistical requirements and the opinions of the

management.

Second, they differ because of the different kinds of workers who are being rated, viz,, factory

workers, executives or salesmen.


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Third, the variations may be caused by the degree of precision attempted in an evaluation.

Finally, they may differ because of the methods used to obtained weightings for various

traits.

Methods of Performance Appraisal

Traditional Method Modern Method1. Straight Ranking Method 1. Assessment Centre

2. Man-to-man Comparison Method 2. MBO

3. Grading 3. Human Asset AccountingMethod

4. Graphic Rating Scales 4. Behaviorally AnchoredRating Scale

5.Forced Choice DescriptionMethod

6. Forced Distribution Method7. Check Lists

8. Free Form Essay Method9. Critical Incidents

10. Group Appraisal11. Field Review Method

Traditional Methods

Straight Ranking Method:

It is the oldest and simplest method of performance appraisal, by which the man and his

performance are considered as an entity by the rater. No attempt is made to fractionalize the

ratee or his performance; the . whole man. is compared with the .whole man., that is, the

ranking of a man in a work group is done against that of another. The relative position of

each man is tested in terms of his numerical rank.

This is a simplest method for separating the most efficient from the least efficient, and relatively

easy to develop and use. But the greatest limitation of this method is that in practice it is very

difficult to compare a single individual with human beings having varying behavior traits.

PairedComparison Technique:


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By this technique, each employee is compared with every trait with all the other person in

pairs one at a time. With this technique, judgment is easier and simpler than with the ordinary

ranking method. The number of times each individual is compared with another is tallied on

a piece of paper. These number yield rank order of the entire group. This method is not suitable

when a group is large because, in that case, the number of judgment becomes excessively large.

Man-to-Man Comparison Method:

The USA army used this technique during the First World War. By this method, certain factors

are selected for the purpose of analysis, and the rater for each factor designs a scale. A scale of

man is also created for each selected factor. The drawback of this technique is that, it is not of

much use because designing of scales is a complicated task.

Grading Method:

Under this system the rater consider certain features and marks them according to a scale.

Selected features may be analytical ability, co-operative ness, dependability, self-expression,

job knowledge, judgment, leadership and organizing ability etc. They may be- Aoutstanding,

B- very good, C- good or average, D- fair, E- poor, and (B- negative) very poor or hopeless.

Graphic orLinearRatingScale:

This is the most commonly used method of performance appraisal. Under it, a printed form,

one for each person to be rated. According to jucius, these factors are: employee characteristics

and employee contribution. In employee characteristics are included such qualities as initiative,

leadership, co-operative ness, dependability, industry, attitude, enthusiasm, loyalty, creative

ability, decisiveness, analytical ability, emotional ability, and co-ordination. In the employee

contribution are include the quantity of work, the responsibility assumed, specific goals

achieved, regularity of attendance, leadership offered, attitude towards superiors and associates,

versatility, etc..,

This method was introduced by Walter D. Scott to get the judgment of superiors on

subordinates. The tow important features of this system are:


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(a) The person who is making the judgment is freed from direct .quantitative. terms in

making his decision of merit on any quality; and

(b) The person who is making the judgment can make as fine a discrimination of merit

as he chooses.

These two facts eliminate the restrictions on natural judgments, which other rating methods

impose.

To ensure the success of this method, one should:

(a) Obtain the descriptions of persons at two extremes of the performance scale;

(b) Analyze these descriptions into simple behavioral qualities and present these either as

a statement or as trait names;

(c) Establish the descriptions value;

(d) Pair the statement or trait names and preference value;

(e) Pair high and low preference values forming an item;

(f) Prefer instructions for the rater, asking him to choose one .best fit. and one .least

appropriate. statement for the employees;

(g) Validate the technique, determine discriminating responses, and assign weights;

(h) Prepare a scoring key on the basis of responses and weights;

ForcedChoice Description Method:

This method was evolved after a great deal of research conducted for the military services during

World War II. It attempts to correct a rater.s tendency to give consistently high or consistently

low ratings to all the employees. The use of this method calls for objective reporting and

minimum subjective judgment. Under this method, the rating elements are several sets of air

phrase or adjectives relating to job proficiency or personal qualifications. The rater is asked to

indicate which of the four phrases is most and least descriptive pf the employee.

The following statements are illustrative of the type of statements that are used:

(a) Makes little effort and individual instruction;

(b) Organizes the work well;

(c) Lacks the ability to make people feel at ease;

(d) Has a cool, even temperament;


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(e) Is punctual and careful;

(f) Is a hard worker and co-operative;

(g) Is dishonest and disloyal;

(h) Is overbearing and disinterested in work.

This method has certain drawbacks such as while choosing two statements from each series;

the rater is unable to introduce personal bias or halo effect, as only one of the favorable and of

the unfavorable phrases in each series is related to success or failure in the job. Further, he also

does not know how .How. or .Low. he is evaluating the individual because he has no access to

the scoring key. This increases the overall objectivity of this method.

ForcedDistribution Method:

This system is used to eliminate or minimize raters bias, so that all personnel may not be placed

at the higher end or at the lower end of the scale. It requires the rater to appraise an employee

according to a pre-determined distribution scale. For this purpose, a five-point performance scale

is used without any descriptive statement. Employees are placed between the two extremes of

good and bad performances.

In addition to job performance, employees are rated for promotability. A three-point scale is

often used for this purpose:

Very likely promotional material;

May or may not be promotional material; and

Very unlikely to be promotional material.

Checklist Method

Under this method, the rater does not evaluate employee performance; he supplies reports

about it and the final rating is done by the personnel department. A series of questions are

presented concerning an employee to his behavior. The rater, then, checks to indicate if the

answer to a question about an employee is positive or negative. The value of each question

may be weighted equally or certain questions may be weighted more heavily than others.

This method suffers from bias on the part of the rater because he can distinguish positive and

negative questions. Secondly, a separate checklist must be developed for different classes of job.


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This process can be expensive and time consuming. Thirdly, it is difficult to assemble, analyze,

and weigh a number of statements about employee characteristics and contributions.

Free Essay Method:

Under this method, the supervisor makes a free form, open-ended appraisal of an employee

in his own words and puts down his impressions about the employee. He takes note of these

factors:

Relations wit fellow supervisors and personnel assigned to him;

General organization and planning ability;

Job knowledge and potential;

Employee characteristics and attitudes;

Understanding and application of company policy and procedures;

Production, quality and cost control;

Physical conditions; and

Development needs for future.

There are several advantages of this method. An essay can provide a good deal of

information, specially if the supervisor is asked. The explanation will give specific

information about the employee, and can reveal even more about the supervisor.

However, there are certain drawbacks too:

It contains a subjective evaluation of the reported behavior of an individual and may

effect such employment decisions as promotion, lay-off, etc.

Some appraisers may be good at narrative appraisal, while others may not have the

facility to write a descriptive report.

The appraisal may be loaded with a flowery language about the quality of the ratee

than with the actual evaluation of performance.

Under this system the supervisor is required to devote considerable time and thought

to the procedure. He has to be critical. The appraisal depends more on the appraiser.s

literary skills than on an employees abilities and performance.

Rater bias is easily introduced into such ratings, since the essay is in the supervisor.s


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own words.

Critical Incident Method:

This method was developed following research conducted by the armed forces in the United

States during World War II. The essence of this system is that it attempts to measure workers.

performance in terms of certain .events. or .episodes. that occur in the performance of the ratee.s

job. These events are known as critical incidents. The basis of this method is

the principle that .there are certain significant acts in each employee.s behavior and performance

which make all the difference between success and failure on the job.. However, this method has

significant limitations. These includes:

Negative incidents are generally more noticeable than positive ones.

The recording of incidents is a chore to the supervisor and may be put off and easily

forgotten.

Very close supervision may result, which may not be to the liking of an employee.

Managers may unload a series of complaints about incidents during an annual

performance review session.

The feedback may be too much at one time and appear as a punishment.

Group Appraisal Method:

Under this method, employees are rated by an appraisal group, consisting of their supervisor and

three or four other supervisors who gave some knowledge of their performance. The supervisor

explains to the group the nature of his subordinates. duties. The group then discusses the

standards of performance for that job, the actual performance of the jobholder, and the causes of

their particular level of performance, and offers suggestions for future improvement, if any. The

advantage of this method is that it is thorough, very simple and is devoid of any bias.


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FieldReview Method:

Under this method, a trainer employee from the personnel department interviews line supervisors

to evaluate their respective subordinates. The appraiser is fully equipped with definite test

questions, usually memorized in advance, which he puts to the supervisor. The supervisor is

required to give his opinion about the progress of his subordinates, the level of the performance

of each subordinate, his weaknesses, good points, outstanding ability, promo ability, and the

possible plans of action in cases requiring further consideration.

This system is useful for a large organization, and does not suffer from the weaknesses, which

are evident in other systems. The over-all ratings are obtained by largely using a threeway

categorization, viz., outstanding, satisfactory and unsatisfactory. It relieves the supervisor of the

need for filling out appraisal forms. The main defect is that it keeps two management

representatives busy with the appraisal.

General Demerits Of Traditional Techniques

Many of the above traditional performance evaluation techniques have internal weaknesses.

Managers generally are not qualified to assess personality traits, and most managers

are even not properly trained to conduct evaluation and performance interviews. They

have very vague notions of the purpose of evaluations. Hence, they do a poor job.

Some managers discourage good performance by over-emphasizing shortcomings and

almost neglecting good work.

Others have little effect on poor workers because they tend to sugarcoat their criticisms.

Consequently the real message is lost.Rater.s personality also plays an important part in the effectiveness of evaluation

programmes. Some raters are by temperament, overtly harsh and give low rating;

some raters play favorites, some are victims of .halo. effect.

The relative status of raters in their organization is a factor that is important to the


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validity of performance appraisal. Using more raters or endorsements by a superior reduces rater

bias and increases validity of appraisals.

MODERN METHOD OF APPRAISAL AND CAREER

DEVELOPMENTAs we have seen, most traditional methods emphasize either on the task or the worker.s

personality, while making an appraisal. In order to bring about a balance between these

two, modern methods have been developed. Of such methods, the most important are:

1. Appraisal by Results or Management by Objectives.

2. Assessment Centre Method.

3. Human Asset Accounting Method.4. Behaviorally Anchored Rating Scales.

APPRAISAL BY RESULTS OR MANAGEMENT BY OBJECTIVES

(MBO)

This method has been evolved by Peter Drucker. MBO is potentially a powerful philosophy of

managing and an effective way for operational sing the evaluation process. It seeks to minimize

external controls and maximize internal motivation through joint goal setting between themanager and the subordinate and increasing the subordinate.s own control of his work. It

strongly reinforces the importance of allowing the subordinate to participate actively in the

decisions that affect him directly.

Management by objectives can be described as .a process whereby the superior and subordinate

managers of an organization jointly identify its common goals, define each individual.s major

areas of responsibility in terms of results expected of him and use these

measures as guides for operating the unit and assessing the contributions of each of its members..

Objectives ofMBO:

MBO has an objective in itself. The objective is to change behavior and attitudes towards getting

the job done. In other words, it is results oriented; it is performance that counts. It is

management system and philosophy that stress goals rather than methods. It provides


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responsibility and accountability and recognizes that employees have needs for achievement and

self-fulfillment. It meets these needs by providing opportunities for participation in goal-setting

process. Subordinates become involve in planning their own careers.

MBO Process:

Although MBO has something of an aura of mystery about it, it really is fairly simple

procedure. It consists of five basic steps as follows.

1. Set organization goals, i.e., establishment of an organization . wide strategy and goals. Such

goals are expressed clearly and concisely and can be measured accurately. They have to be

periodically revised. They should be challenging: high enough to provide motivation, but not so

high that the are out of reach.

2. Joint goal setting, i.e., establishment of short-term performance targets between the

management and the subordinate in a conference between them. The individual manager must

clarify in his own mind the responsibilities of their subordinates. Organization Charts and Job

Descriptions may be used.

The manager may ask his subordinates how he personally can help achieve these goals, and

request suggestions. The goals set should be flexible enough to accommodate new ideas, and

they should stress individual responsibility. The goals should be specific, and clear and should be

quantified for easier measurement;

3. Performance reviews, i.e., frequent performance review meetings between the managers and

the subordinate. During the initial stages of the MBO programme, monthly review may be used

and then extended to quarterly reviews. For maximum effectiveness, reviews probably should be

made more often than once each year.

4. Set check posts, i.e, establishment of major check post to measure progress. The quirk of

human nature demands that the manger be constantly alert and exercise sound judgment.

However, as subordinate learns to establish objectives and direct activities towards their goals,

the rate of control and amount of checking gradually can be decreased.

5. Feedback, The employees who receive frequent feedback concerning their Performance are

more highly motivated than those who do not feedback that is specific, relevant, and timely helps

satisfy the need most people fell about knowing where they stand. Thus, under MBO

programme, an employee and his supervisor meet and together define, establish, and set certain


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goals or objectives which the employee would attempt to achieve within the period of prescribed

time. They also discuss the ways and methods of measuring employee progress. The goals,

which are set, are work-related and career oriented. The employee periodically meets his

supervisor to evaluate the employee.s goals progress. If necessary, these goals may be revised.

Frequent feedback and supervisor subordinate interaction are the other key features of this

method. The supervisor plays supportive, counseling and coaching roles.

In sum, the three foundations of MBO are:

Goal-setting

Feedback

Participation

BENEFITS OF MBO PROGRAMME:

MBO is an important performance tool. It has certain advantages.

MBO helps and increase employee motivation because it relates overall goals to the

individual.s goals; and helps to increase an employee.s understanding of where the

organization is and where it is heading.

Managers are more likely to compete with themselves than with other managers. The

kind of evaluation can reduce internal conflicts that often arise when manger compete

with each other to obtain scarce resources.

MBO results in a .means ends. chain. Management at succeeding lower levels in the

organization established targets, which are integrated with those at the next higher level. Thus, it

can help insure that trinity is ultimately aimed toward organization.s goals.

MBO reduces role conflict ambiguity. Role conflict exist when a person is faced with

conflicting demands from two or more supervisors; and role ambiguity exist when a person is

uncertain as to how he will be evaluated, or what he has to achieve. Such MBO aims at providing

clear targets and their order or priority, it reduces both these situations.

MBO provides more objective appraisal criteria. The targets that emerge from the MBO

process provide a sound set of criteria for evaluating the manager.s performance.

MBO forces and aids in planning. By forcing top management to establish a strategy


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and goals for the entire organization; and by requiring other mangers to set their targets and plan

how to reach them.

MBO identifies problems better and early. Frequent performance review sessions make this

possible.

MBO identifies performance deficiencies and enables the management and the employees to

set individualized self-improvement goals and thus proves effective in training and development

of people.

MBO helps the individual manger to develop personal leadership, especially the skills of

listening, planning, counseling, motivating and evaluating. This approach to managing instills a

personal commitment to respond positively to the organizations major concerns as well as to the

development of human assets. Such a manger has a far greater chance to move ahead within the

management hierarchy than the non- MBO type.

MBO has some drawbacks also:

MBO programme takes a great deal of time, energy and from completing on the part of

managers. An individual becomes so enmeshed in performing assigned functions that he often

loses sight of the goal, the reason for performance. It has been called .the activity trap. by

Odiorne. It requires a great deal of investment of the top management time and effort before it

arrives at realistic targets and reviews the performance.

MBO is far from panacea. Those executives who have been involved very often find it difficult

to apply MBO concepts to their own work habits. They find it hard to think about the results of

work rather than the work itself. They tend to over emphasize goals that are easy to quantify,

sometimes forgetting that workers often behave almost like children at play. when the game no

longer challenges, interest is soon lost.

In some areas, such as cutting costs or increasing scales, measuring performance is a

straightforward and more or less objective matter. But in many other areas, such as subordinate

development, appraising performance can be an acute problem.

Many times neither the manager knows the rationale and value of MBO, nor the

subordinates are clear about the goals. This unnecessarily becomes more exasperating.

There is sometimes a .tug of war. in which the subordinate tries to set the lowest

targets possible and the supervisor the highest.


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2. ASSESSMENT CENTRE METHOD:

The Assessment center concept was initially applied to military situations by Simoniet in the

army in the 1930s and the war Office Selection Board of the British army in the 1960s. The

purpose of this method was and is to test candidates in a social situation, using a number of

assessors and a variety of procedures. The most important feature of the assessment center is

job-related simulations. These stimulations involve characteristics that managers feel are

important to the job success. The evaluators observe and evaluate participants as they perform

activities commonly found in these higher-level jobs.

Under this method, many evaluators join together to judge employee performance in several

situations with the use of a variety of criteria. It is used mostly to help select employees for

the first level supervisory positions. Assessments are made to determine employee potential

for purpose of promotion. The assessment is generally done with the help of a couple of

employees and involves a paper-and-pencil test, interviews and situational exercises. Some

of the other features of this system are:

(a) The use of situational exercises

(b) Evaluators are drawn from experienced managers with proven ability at different levels of

management;

(c) They evaluate all employees, both individually and collectively, and each candidate is given

one of the three categories: more than acceptable, less than acceptable and unacceptable;

(d) A summary report is prepared by the members, and feedback on a face-to-face basis

is administered to all the candidates who ask for it.

Purpose ofAssessment Centers:

Assessment centers are used for the following purpose:

1. To measure potential for first level supervision, sales and upper management positions; and

also for higher levels of management for development purposes.

2. To determining individual training and development needs of employees.

3. To select recent college students for entry level positions.

4. To provide more accurate human resource planning information.


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5. To make an early determination of potential.

6. To assist in implementing affirmative action goals.

3. 360 DEGREE PERFORMANCE APPRAISAL:

The appraisal may be any person who has through knowledge about the job done by contents to

be appraised, standards of contents and who observes the employee while performing a job. The

appraiser should be capable of determining what is more important and what is relatively less

important. He should asses the performance without bias. The appraisers are supervisor, peers,

subordinates employees themselves users of service and consultants. Performance appraisal by

all these parties is called 360 degree appraisal.

4. HUMAN ASSET ACCOUNTING METHOD:

The human asset accounting method refers to activity devoted to attaching money estimates to

the value of a firm. internal human organization and its external customer goodwill. If able, well-

trained personnel leave a firm, the human organization is worthless; if they join it, its human

asset are increased. If distrust and conflict prevail, the human enterprise is devalued. If teamwork

and high morale prevail, the human organization is a very valuable asset. The current value of a

firm.s human organization can be appraised by developed procedures, by undertaking periodic

measurement of .key causal. and .intervening enterprise. variables. They key causal variables

include the structure of an organization.s management policies,

decisions, business leadership, strategies, skills and behavior. The intervening variables reflect

the internal state and health of an organization. They include loyalties, attitudes, motivations, and

collective capacity for effective interaction, communication and decisionmaking These two types

of variable measurements must be made over several years to provide the needed data for the

computation of the human asset accounting.

5. BEHAVIOURALLY ANCHORED RATING SCALES (BARS):

This is a new appraisal technique which has recently been developed. Its supporter claim that

it provides better, more equitable appraisals as compared to other techniques. The procedure

for BARS is usually five stepped.


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1. Generally Critical Incident:

Persons with knowledge of the job to be appraised are asked to described specific illustrations of

effective performance behavior.

2. Develop Performance Dimensions:

These people then cluster the incidents into a smaller set of performance dimensions. Each

cluster is then defined.

3.Reallocate Incidents:

Any group of people who also know the job then reallocate the original critical incidents. They

are given the cluster.s definitions, and critical incidents, and asked to redesign each incident to

the dimension it best describes. Typically a critical incident is retained if somepercentage of this group assign it to the same cluster as the previous group did.

4. Scale ofIncidents:

This second group is generally asked to rate the behavior described in the incident as to how

effectively or ineffectively it represents performance on the

appropriate dimension.

5.Develop Final Instrument:

A subset of incidents are used as .behavior anchors. for the performance dimensions.HOWAPPRAISAL MAY BE MADE SUCCESSFUL?

The rater must be thoroughly well-versed in the philosophy and nature of the rating system.

Factors and factor scales must be thoroughly defined, analyzed, and discussed. The success of an

appraisal programme depends upon:

The existence of an atmosphere of confidence and trust so that both supervisor and employee

may discuss matters frankly and offer suggestions which may be beneficial for the organization

and for an improvement of the employee.

The supervisor must very thoroughly evaluate the employees performance so that he

is capable of meeting challenges about his ratings of his subordinate.

The result of performance rather than personality traits should be given due weight.

Suggestions for improvement should be directed towards the objective facts of the job. Plans for


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the future must be developed jointly after consultation with subordinates. The individual as a

person should never be criticized.

The supervisor should try to analyze the strengths and weaknesses of an employee

and advise him on correcting the weaknesses.

The appraisal programme should be less time-consuming and less costly. At the same

time, it should bring the maximum benefit.

Which particular technique is to be adopted for appraisal should be governed by such

factors as the size, financial resources, philosophy and objectives of an organization.

The result of the appraisal, particularly when they are negative, should be immediately

communicated to the employees, so that they may try to improve their performance.

A post-appraisal interview should be arranged so that employees may be supplied with

feedback and the organization may know the difficulties under which employees work, so that

their training needs may be discovered.

ETHICS OF APPRAISAL:

In any performance appraisal, due consideration must be given to the ethics of appraisal, failing

which many organizational problems may crop up and the very purpose of appraisal may be

defeated. M.S.Kellog has suggested the following dos and donts.

Dont appraise without knowing why the appraisal is needed;

Appraise on the basis of representative information;

Appraise on the basis of sufficient information;

Appraise on the basis of relevant information;

Be honest on your assessment of all the facts you have obtained;

Dont write on thing and say another;

In offering an appraisal, make it plain that this is only your personal opinion of the

facts as you see them;Pass on appraisal information only to those who have good reason to want it;

Dont imply the existence of an appraisal that has not been made;

Dont accept anothers appraisal without knowing the basis on which it was made.

1.Introduction to Performance Management System (PMS)


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1.1Philosophy of Performance Management SystemTo build a culture of performance by aligning individual and organizational objectives andencouraging open communication and continuous feedback.

1.2Objectives To accomplish the overall organizational vision and mission by linking individual

Performance to company objectives

To cascade companys strategic goals to individual level To promote professional excellence To encourage two-way communication between the executive and the reporting officer

And bring about transparency in the performance assessment process

To evaluate the potential of the executive to assume higher responsibilities in theOrganization

To provide a source of talent for meeting the organizations growth requirements througha process of mapping the competencies and potential of executives

To translate future skill requirements of the organization into individual developmentplans,

To identify high performers and recognize them through rewards and incentives, and To facilitate fulfillment of individual aspirations

PMS Cycle

2.1 Performance Assessment years

Performance assessment years have been set up as follows:

For E6 and above:

The performance assessment year commences from 1stApril of each year and continues until


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31stMarch of the following year

For E1 . E5:

The performance assessment year commences from 1st January of each year and continues

until 31stDecember of the same year.

2.2 PMS ProcessThe PMS process is broadly divided into the following stages:

Performance Planning Mid Year Review Annual Assessment Normalization Feedback, coaching and Counseling

2.2.1 Performance Planning

Performance Planning is the process of:

Defining expectations i.e. the work to be done, the results/targets to be achieved andSkills/competencies needed to achieve these objectives

Setting .Measures. and .Targets., determining priorities and weight ages of results to beachieved

Identifying and allocating appropriate resources (such as manpower, tools, training,Budget etc.) To enable the executive to achieve the targets. While defining work

objectives and measures, it is necessary to ensure that:

Goals/ Targets/ Objectives are SMART (Specific, Measurable, Agreed, Realistic andTime bound)

Results are substantially within the executive.s control Measures relate to results Data is available for measurement Agreement on mutually agreeable and achievable performance targets is arrived at after

Sufficient discussion between reporting officer and executive has taken place.

2.2.2 Mid Year Review

Performance management is not an event but an ongoing process. Mid year reviews help in


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the following ways:

Reinforcing good performance in time

Updating the status of targets i.e. progress review

Identifying areas for .mid-course. correction

Revisiting KPAs and goals, if necessary

Assessing resource and skill requirements affecting the individual.s performance

Discussion and feedback on functional competencies, managerial competencies,

Potential competencies and core values actualization

Providing early warnings of non-performance, i.e. avoiding year end surprises

2.2.3 Annual Assessment

The objectives of Annual Assessment are to:

Discuss and arrive at an assessment of performance with respect to agreed targets

Assess the competencies, potential and core values actualization by the individual

Agree upon improvement plans and development needs for the individual.

2.2.4 Normalization

The objectives of the Normalization System in PMS are to:

Ensure parity and integrity by minimizing variation in rating by different reporting

officers across various departments and locations

Enhance objectivity and transparency in the appraisal system

To view individual performance from the perspective of organizational Achievement.

2.2.5 Feedback, Coaching and Counseling

In order to make PMS an open system and to enhance development orientation across the

organization; feedback, coaching and counseling are essential components. Communicating

the final performance results of the executive and providing developmental feedback are

critical to this process.


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2.2.5.1 Feedback

Providing feedback on performance presents the following benefits:

Creates transparency making PMS more acceptable to individuals

Reinforces good performance on time

Enables development of coaching and mentoring relationship between reporting

Officer and executive

Ensures that organizational objectives are achieved to an acceptable standard and in

an acceptable form Providing performance feedback is a delicate matter and the reporting officer

should create suitable conditions for providing performance feedback in the most effective

manner. (Refer to appendix for tips to reporting officers on conducting effective appraisal

meetings.) In general:

Feedback should be focused on the specific performance actions and not on the Personality of

the executive

Feedback should be generated after reviewing all achievements and issues. Throughout the

assessment period and not focused on isolated incidents

Feedback calls for maintaining a log of critical incidents occurring during the Assessment

period for recording both achievements and failures with details, as an aid to memory during

performance discussions with the executive

Feedback be given as regularly as possible so that enough opportunities are Created

for executive to bridge performance gaps through self-development.

2.2.5.2 Coaching and Counseling

Coaching is an on-the-job approach to help individuals to develop and raise their skills and

levels of competence.

Coaching typically consists of:


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Performance 30 60

general 13 26

others 3 6

total 50 100

Interpretation:

According to the above table we can say that the goal setting is different for different departments withregardance to their work profile.

Table no 3: I had the opportunity to bring out issues to bring out all my issuesduring the last feedback?

8%

60%

26%

6%

basis of the goal setting

target

performance

general

others

Attributes No of

respondents


50/70


50

REVAITM,BENGALURU.

Interpretation:

According to the above table we can say that the goal setting is different for different departments with

regardance to their work profile.

Table no 4: My manager was receptive during the feedback session?

0

5

10

15

20

25

30

strongly

agree

agree strongly

disagree

disagree neutral

0

26

0

5

19

Strongly

Agree

0

S.Disagree 0

Disagree 05

Neutral 19

Agree 26

Total 50

Attributes No of

respondents


51/70


51

REVAITM,BENGALURU.

Interpretation:

As per the above table and Graph We can say that the feed back session with the manager was

effective.

strongly

agree

agree strongly

disagree

disagree neutral

5

18

0

5

22

Feed Back

Strongly Agree 5

S.Disagree 0

Disagree 05

Neutral 22

Agree 18

Total 50


52/70


52

REVAITM,BENGALURU.

Table no 5: All issues were addressed or planned to be addressed?

Interpretation:

As per the table shown above the interpretation would be the issues are addressed and planned to be

addressed to the manager.

0

5

10

15

20

25

30

stronglyagree

agree stronglydisagree

disagree neutral

0

28

04

18

Attributes No of

respondents

Strongly Agree 0

S.Disagree 0

Disagree 04

Neutral 18

Agree 24

Total 50


53/70


53

REVAITM,BENGALURU.

Table no 6: The discussion really helped in improving my performance?

Interpretation:

As per the above data we can interpret that the performance of the employees had improved after the

discu

ssion with the manager.

0 5 10 15 20 25

strongly agree

agree

strongly disagree

disagree

neutral

11

24

0

5

10

Attributes No of

respondents

Strongly Agree 11

S.Disagree 0

Disagree 05

Neutral 10

Agree 24

Total 50


54/70


54

REVAITM,BENGALURU.

Table no 7: My relationship with my manager improved after the discussion

Interpretation:

As the relationship with the manager is improved after the discussion we can interpret that the discussion

is useful.

7

27

0 5

13

0

5

10

15

20

25

30

strongly agree agree strongly

disagree

disagree neutral

Relationship Improvement

Attributes No of

respondents

Strongly Agree 07

S.Disagree 0

Disagree 05

Neutral 13

Agree 27

Total 50


55/70


55

REVAITM,BENGALURU.

Table no 8: Do you perceive fairness in performance evaluation?

Interpretation:

The Number of employees who had opted for is for the fairness in the performance evaluation so we

can say that the evaluation can be done accordingly.

66%

34%

Chart Title

yes

No

Attributes Response

Yes 33

No 17

Total 50


56/70


56

REVAITM,BENGALURU.

Table no 9: How would you rate your level of satisfaction for the PerformanceAppraisal System?

Attributes Response

H.Satisfied 3

Satisfied 21

Neutral 19

Disagree 7

H.dissatisfied 0

Total 50

Interpretation: As we can see the data above that the level of satisfaction is fair and we can say that

0

5

10

15

20

25

Highly

Satisfied

Satisfied Neutral Dis Agree highly

Dissatisfied

3

21 197

0


57/70


57

REVAITM,BENGALURU.

The employees are satisfied with the performance appraisal system.

Table no 9: There was progress on the

last review discussion?

Interpretation: The Data clearly states that the Progress in the last review discussion was very good

and the employees are making it useful.

64%

36%

Review Discussion

yes

No

Attributes Response

Yes 32

No 18

Total 50


58/70


58

REVAITM,BENGALURU.

Table no 10: Rate the Importance of following characteristics of a good

Performance Management System?

Attributes Description

Not Important 1

Somewhat Important 8

Important 15

Very. Important 20

Extremely Important 6

Total 50

Interpretation: The opinion of the employees differs from each other andit mainly depends on theemployees preferences.

0

2

4

68

10

12

14

16

18

20

Not

Important

Somewhat

Important

Important Very

Important

Extremely

Important

1

8

15

20

6


59/70


59

REVAITM,BENGALURU.

Table no 11: Is Performance Appraisal linked with the following?

Interpretation: There is much weightage for the salary and there is a link with the Performance.

66%

34%

Salary

yes

no


Yes 33

No 17

Total 50


60/70


60

REVAITM,BENGALURU.

Interpretation: Equal Priority is given to the promotion half of their opinion is that its not muchprioritized.

50%50%

Promotion

yes

no


Yes 25

No 25

Total 50


61/70


62/70


62

REVAITM,BENGALURU.

Table no 11: Does the organization provide any training to the employees whoare less productive?

60%

40%

Training

Yes

No


Yes 27

No 23

Total 50


63/70


63

REVAITM,BENGALURU.

FINDINGS AND RECOMMENDATIONS

The goal-setting process was done for 34% of employees and it was not done for66%of employees.

The mid review was conducted for 98% of the employees and it was notconducted for one employee as the person was on a long leave.

The annual performance review was conducted for 99% of employees and it didnot happen for one employee who was onsite.

Nearly 66% of the employees agree that they had an opportunity to bring out theirissues during the feedback process and 7% of the employees disagree for the same

as they feel there was no enough time to discuss during the review session

Bhanutej Final Project (2)

Documents

Transcript of Bhanutej Final Project (2)