academic internship project on performance management system

Summer Internship Report

On

STUDY OF PERFORMANCE MANAGEMENT SYSTEM ATUFLEX LTD.

BySEM SHAIKH

THE M.S. UNIVERSITY OF BARODA

In Partial Fulfillment of Award of Master of Commerce

2

DECLARATION

I, Sem Shaikh student of Masters of Commerce from The M.S. University of Baroda hereby declarethat I have completed Summer Internship on STUDY OF PERFORMANCE MANAGEMENTSYSTEM AT UFLEX LTD.” as part of the course requirement .

I further declare that the information presented in this project is true and original to the best of myknowledge.

Date: 15/05/2014 Sem Shaikh

Place: Vadodara

3

Acknowledgement

The project Title ‘“Analysis of Performance Management System at UFLEX LIMITED” has been

conducted by me during 01/01/2014 to 30/03/14 at UFLEX Ltd. My project work has been

successfully accomplished due to cooperative efforts of many people.

I am deeply indebted to Dr. U. M. Dangarwala for his precious & illustrious guidance offered. His

inspiring guidance had always encouraged me and boosted my morale and without him this project

could have not been a success.

I owe enormous intellectual debt towards my industry guide Mr. Bhavin, who has augmented my

knowledge in the field of my research. They have helped me learn about the process and giving me

valuable insight into the organization

A special thanks to Mr. Rajesh Solanki for giving me the opportunity of association with the

organisation.

Last but not the least, I feel indebted to all those persons and organization which have helped in the

successful completion of this study.

Date: 15/05/2014 Sem Shaikh

Place: Vadodara

4

Acknowledgement…………………………………………………………. i

Certificate from the Faculty Guide

Certificate from the Industry Guide

Executive Summary………………………………………………………..

CONTENTS

CHAPTER No. TITLEPAGE

NO.

1 INTRODUCTION

2OBJECTIVES AND RATIONALE OF THE

PROJECT

3REVIEW OF LITERATURE

4INTRODUCTION TO THE COMPANY

4.1 Company Profile

5 RESEARCH METHODOLOGY

5.1 RESEARCH DESIGN

5

5.2 RESEARCH TOOLS AND

QUESTIONNAIRE

5.3 ACTION PLAN FOR DATA

COLLECTION

5.4 DATA ANALYSIS

6 RESEARCH FINDINGS

7 CONCLUSION AND SUGGESTIONS

Bibliography

References………………………………………………………….

Annexure……………………………………………………………

6

CHAPTER – 1

INTRODUCTION

7

Performance management system (PMS) is the heart of any “people management “processes in

organization. Organizations exist to perform. If properly designed and implemented it can change the

course of growth and pace of impact of organizations. If people do not perform organizations don't

survive. If people perform at their peak level organization can compete and create waves.

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

growth and pace of impact of organizations. In the past organizations as well as the HR function have

wasted a lot of time by wrongly focusing on performance appraisals rather than performance

management.

Effective performance management requires:

Identifying the parameters of performance and stating them very clearly.

Setting performance standards

Planning in participative ways where appropriate, performance of all constituents

Identifying competencies and competency gaps that contribute/hinder to performance

Planning performance development activities.

Creating ownership.

systematically deciding and communicating what needs to be done (aims, objectives,

priorities and targets)

a plan for ensuring that it happens (improvement, action or service plans)

some means of assessing if this has been achieved (performance measures)

information reaching the right people at the right time (performance reporting) so

decisions are made and actions taken

A Performance Management System enables a business to sustain profitability and performance by

linking the employees' pay to competency and contribution. It provides opportunities for concerted

8

personal development and career growth. It brings all the employees under a single strategic umbrella.

Most importantly, it gives supervisors and subordinates an equal opportunity to express themselves

under structured conditions. Managing this process effectively isn't easy. It calls for a high level of

co-ordination, channeled information flow, and timely review. Whether employees are at a single

place, or spread across multiple locations, the use of technology can help simplify the complete

process for more effective information management.

Performance management could be defined as it begins when the job is defined and ends when an

employee leaves the company. Between these points, the following should be understood for a

working performance management system.

Developing clear job descriptions: Job descriptions are the first step in selecting the right person for

the job, and setting that person up to succeed Job descriptions provides a framework so the applicants

and new employees understand the expectations for the position.

Selection: Jobs have different requirements. This is the process of matching the skills and interests of

a person to the requirements of a job. Finding a good job "fit" is exceptionally important. Use of a

selection process maximizes input from potential co-workers and the person to whom the position

will report.

Providing effective orientation, education, and training. Before a person can do the best job, he

or she must have the information necessary to perform. This includes job-related, position-related,

and company-related information; an excellent understanding of product and process use and

requirements; and complete knowledge about customer needs and requirements.

Providing on-going coaching and feedback. People need ongoing, consistent feedback that

addresses both their strengths and the weaker areas of their performance. Effective feedback focuses

more intensely on helping people build on their strengths. Feedback is a two-way process that

encourages the employee to seek help

9

Conducting quarterly or annual performance development discussions. If supervisors are giving

employees frequent feedback and coaching, performance reviews can change from negative,

evaluative, one-sided presentations to positive, planning meetings.

Designing effective compensation and recognition systems that reward people for their

contributions: The power of an effective compensation system is frequently overlooked and

downplayed in some employee motivation-related literature

Providing promotional/career development opportunities for staff: The supervisor plays a key

role in helping staff develop their potential. Growth goals, changing and challenging job assignments

and responsibilities, and cross-training contribute to the development of a more effective staff

member.

Assisting with exit interviews to understand WHY valued employees leave the organization:

When a valued person leaves the company, it is necessary to understand why the person is leaving.

This feedback will help the company improve its work environment for people. An improved work

environment for people results in the retention of valued staff.

In this research project, I have studied, examined the traditional Performance management scenario of

the company, the process, performance appraisal followed and the role of performance management

in assessing the performance of the employee and procedure followed by the company for feedback

session and the impact of PMS on overall working of Human Resource department and various other

departments. In addition to the above, I have also learned about different forms used by the company

for the same purpose. I have also suggested that company should design KEY RESULT AREAS for

the employees in order for the better and realistic assessment of their performance.

THE PROCESS OF PERFORMANCE MANAGEMENT SYSTEM IN THE COMPANY IS AS

FOLLOWS:-

10

PERFORMANCE MANAGEMENT SYSTEM IN UFLEX:

WORKMAN FORCE

(90 DEGREE APPRAISAL)

APPRAISAL CYCLE

11

Since it is a 90 degree appraisal, every performance of workmen is measured by the line manager whodirects the workmen. He is like an immediate boss. Line manager comes below the UNIT HEAD. Agood number of line managers are directed by UNIT HR. line manager who have all the informationabout the workmen performance, they report directly to H.R. regarding individual performance.UNIT HEAD fills the appraisal form according to the given ratings, comments, and self judgments aresent to the UNIT HR. He marks the necessary changes in the filled form after his discussion with theUNIT HEAD. Then this is forwarded to the CORPORATE H.R. who in turn discusses eachindividual case and then gets the final approval from CMD. For salary appraisal & for the promotionif any. Every individual employee is presented with a copy, of his increments signed by CORPORATEHR which is the result of his appraisal.

All the finalized forms come to Corporate HR. then Corporate HR send the report of performancemeasurement to all Appraisee. In that report it is clearly mentioned that The Appraisee appraised inform of promotion, in term of increasing salary, or get some suggestions to improve his performance.

If any employee joins before its PMS cycle (Sep to Sep), then it is not included in cycle, Companydoesn’t count from joining date; it measures employee performance from its decided date.

WORKMEN

Line manager

Workmen don’t fill the appraisal form it is90 degree so their performance is onlymeasured by their line manager.

Unit head

Unit HRUNIT HR

Line manager who have all the information aboutworkmen performance, they report direct to unithead regarding individual’s performance.

Unit Head HOD fills the appraisal form according to report andself judgment, and forwards the same to unit HR, who in turnsends at to corporate HR head.

Corporate HR discusses the cases. Whenevernecessary discuss with Unit head and afterfinalization, gets the approval from CMD.

CORPORATE HR HEAD

12

STAGES OF PMS CYCLE (FOR STAFF- 180 DEGREE APPRAISAL)

13

EMPLOYEE APPRAISED

CHAIREMAN APPROVEDTHE FORM

CORPORATE HR

Receive all recommendation and prepareit with justification for above assessment& takes it to CMD for approval.

EMPLOYEE

Fill self appraisal form which is providedby corporate HR at appraisal time, initiatethe PM cycle

IMMEDIATE SUPERVISOR

Immediate supervisor gives his rating on givencritical attributes and comments on employee’sperformance, & report to head of department.

HEAD OF DEPARTMENT

Head of department compare the ratings and discusswith HR UNIT on it, then after discussion &verification, forward it to UNIT CEO.

Unit HR

UNIT CEO

CEO, receive all recommendation and finalizesthe rating & pass it to corporate HR.

CMD

14

Stages of Performance appraisal system:

Employee: employee is the one who actually starts the PMS cycle. He/she initiate the PMSthrough filling up the form provided by HR Deptt. This cycle comprises of 75 daysapproximately.PMS starts from employee and usually ends at corporate HR people, who finallyprovides their inputs on the basis of comments and ratings provided by various stakeholdersinvolved in PMS cycle.

Immediate boss: as soon as the employee fills up the forms and submits it to next level in PMScycle, it is the responsibility of the immediate boss of the employee to submits the form to nextlevel of approval after submitting/providing the rating as well as his/her comments.

Head of Department: when HOD gets the form from second level of PMS, he/she compares theratings and comments which are given by employee & immediate boss. and he/She will review thesame and discussion is done with the Business Unit HR. on the basis of the comments providedby immediate boss & employee, HOD provides his comments as well as the ratings(with dueinteraction/discussion with Unit HR).

UNIT CEO: This is the fourth level of PMS cycle. In this stage the form is received by Unit CEOand he/she confess the same with stakeholders included, receive all the recommendation andfinalize the rating then pass it to Corporate HR.

Corporate HR: in this stage , the Corporate HR is responsible for the final stage, He/She has toprovide the final input on the form and he/she also has authority /discretion toreplace/remove/change the given ratings to the employee incase he/she is not satisfied withoverall comments & ratings provided by the stakeholders. Corporate HR will check and commentsand measures it with the rating received by employee.

This is the last stage in PMS cycle. The PMS cycle is over here but the PMS work needs to beclosed by passing the form to corporate HR Head and finally to the CMD.

After this workflow/PMS cycle, the increment/appraisal/promotion is decided.

17

CHAPTER-2

OBJECTIVES

18

To study the process and methods of existing Performance management systems at U flex ltd.

To study the effectiveness of performance appraisal and methods in the company.

To trace the drawbacks in prevailing system and suggest the latest methodology with respect

to same.

To support in bridging the gap between current performance and desired performance.

To Introduce KEY RESULT AREAS instead of self achievement in sales department.

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CHAPTER-3

REVIEW OF LITERATURE

20

Performance management can be defined as the ongoing communication process that involves both

manager and the employee in:

• Identifying and describing essential job functions and relating them to the mission and goals of

the organization

• Developing realistic and appropriate performance standards

• Giving and receiving feedback about performance

• Writing and communicating constructive performance appraisals

• Planning education and development opportunities to sustain improve or build on employee

work performance.

Objective of PMS

To confirm the services of probationary employees upon their completing the probationary

period satisfactorily

To check the effective & efficiency of individuals, teams & organization

To effect promotions based on competence and performance

To access the training and development needs of the employees

To decide upon the pay rise

21

PM can be used to determine whether HR programmes such as selection, training, and

transfer have been effective or not.

PMS Includes

Work plan – A document that describes the work to be completed by an employee within the

performance cycle, the performance expected, and how the performance will be measured.

Corrective action plan – A short-term action plan that is initiated when an employee’s

performance fails to meet expectations. Its purpose is to achieve an improvement in

performance.

Individual development plan – An action plan for enhancing an employee’s level of

performance in order to excel in the current job or prepare for new responsibilities.

Performance appraisal – A confidential document that includes the employee’s performance

expectations, a summary of the employee’s actual performance relative to those expectations,

an overall rating of the employee’s performance, and the supervisor’s and employee’s

signatures.

HIGHLIGHTS OF THE SYSTEM

The appraiser and the appraisee jointly set the Key Result Areas (KRA’s) and assign mutually

agreed weight age expressed as a percentage.

Simple mathematical relationship between set weight age and accomplishment gives a final

numerical score on KRA’s

22

To evaluate all management personnel on company values and leadership attributes a new

section has been added entitled “Values in Action”

Components of PMS

Performance Standards - establishment of organizational or system performance standards,

targets and goals and relevant indicators to improve public health practice

Performance Measures - application and use of performance indicators and measures

Reporting of Progress - documentation and reporting of progress in meeting standards and

targets and sharing of such information through feedback

Quality Improvement - establishment of a program or process to manage change and achieve

quality improvement in public health policies, programs or infrastructure based on

performance standards, measurements and reports.

23

The essence of the performance management system in organization is to recognize the importance of

the employees towards achieving the organizational objectives. The basic requirement for this is that

the employees’ personal goals should be perfectly aligned with the vision, mission and the values of

the organization.

The proposed conceptual framework also underscores the vital role of education, training and

development in the envisioned successful organization. In this organization, continuous learning is a

24

prerequisite to successful job performance and organizational effectiveness. Employees must be able

to learn work, developing effective technical and people skills in order to assume new responsibilities,

and keep pace with and anticipate the changing nature of work and our workplace.

For performance managers and employees, responding to these changes requires the ability to learn,

adapt to change, solve problems creatively, and communicate effectively in diverse groups. In

addition, employees must take personal and proactive responsibility for their careers to ensure future

employability and advancement.

The realities of the contemporary workplace will continue to challenge existing paradigms and should

be considered in managing the performance of employees in a dynamic working environment.

PERFORMANCE MANAGEMENT SYSTEM

Performance management system (PMS) is the heart of any “people management” process in

organization. Organizations exist to perform. If properly designed and implemented it can change the

course of growth and pace of impact of organizations. Performance management could be defined as

it begins when the job is defined and ends when an employee leaves the company. Between these

points, the following should be understood for a working performance management system.

Developing clear job descriptions: Job descriptions are the first step in selecting the right person for

the job, and setting that person up to succeed Job descriptions provide a framework so the applicants

and new employees understand the expectations for the position.

Selection: Jobs have different requirements. This is the process of matching the skills and interests of

a person to the requirements of a job. Finding a good job "fit" is exceptionally important. Use of a

selection process maximizes input from potential co-workers and the person to whom the position

will report.

25

Providing effective orientation, education, and training. Before a person can do the best job, he or she

must have the information necessary to perform. This includes job-related, position-related, and

company-related information; an excellent understanding of product and process use and

requirements; and complete knowledge about customer needs and requirements.

Providing on-going coaching and feedback. People need ongoing, consistent feedback that addresses

both their strengths and the weaker areas of their performance. Effective feedback focuses more

intensely on helping people build on their strengths. Feedback is a two-way process that encourages

the employee to seek help Conducting quarterly performance development discussions. If supervisors

are giving employees frequent feedback and coaching, performance reviews can change from

negative, evaluative, one-sided presentations to positive, planning meetings. Designing effective

compensation and recognition systems that reward people for their contributions: The power of an

effective compensation system is frequently overlooked and downplayed in some employee

motivation-related literature

Providing promotional/career development opportunities for staff: The supervisor plays a key role in

helping staff develop their potential. Growth goals, changing and challenging job assignments and

responsibilities, and cross-training contribute to the development of a more effective staff member.

Assisting with exit interviews to understand WHY valued employees leave the organization: When a

valued person leaves the company, it is necessary to understand why the person is leaving. This

feedback will help the company improve its work environment for people. An improved work

environment for people results in the retention of valued staff.

There are three important areas that are covered in performance management. These are shown in the

diagram below.

26

K e

y

res

u l t

are

as

Th

ey

dea

l

wit

h the outcomes or results managers are responsible to achieve. A KRA refers to a target that needs to

be achieved by the appraisee in a given time. Key result areas deal with the ends and not means to

them. The word ‘key’ signifies the vital few results that are important. The results are the things that

are intended consequences of the things you do. The word ‘areas’ means that the results could be

made up of clusters of related but specific results. There is no strict limitation but as a thumb rule the

managers should have no more than four to five key results areas.K.R.A in the company are identified

soon as a person is assigned with certain job role and responsibilities. They are uniquely identified on

the basis of intersection of the level of operation & the vertical of operation.KRA’s are the set of

performance expectations from the appraisee.

K.R.A’s are set on the combination of following features:-

Project Requirements: These are of technical nature

KeyPerformanceIndicators

Goals

Key Result Areas

27

Goals

Goals are the tools used to achieve the results. Goals are how you turn intentions into action. The

dictionary meaning of the goals is ‘the end to which the design tends’. To develop this concept let us

go back a bit to the vision and mission of the organization and then link it to the goals.

The vision that any company has is just like a destination. The vehicle that the company is use to

reach this destination is nothing but the mission. The values of the company give a broad direction to

journey. The organization should strive hard to reach the destination but never by compromising on

the values. The distance covered in the direction of the destination could be the ‘key result area’ for

the organization and the speed of travel, stoppage times, and breakdowns could be the ‘key

performance indicators’. And the goals will be the path or the road that the organization takes to

reach the destination. That is the goal is the intention expressed by the organization to make a

positive change in the direction of the long-term vision and mission of it.

28

Performance Management in Employee perspective

Till now we have seen how the performance management can be used to improve the business

processes and to achieve success in moving towards the mission and vision of the organization. Now

we will concentrate our effort on performance management in to effectively utilize the human capital

that the organization has. We will not discuss the exact performance management framework for the

employee performance management because this framework will vary from industry to industry and

also from organization to organization. But nevertheless we will discuss how to arrive at the

framework in detail.

Performance management in the HR perspective.

Performance management can be defined as the ongoing communication process that involves both

manager and the employee in:

• Identifying and describing essential job functions and relating them to the mission and goals of

the organization • Developing realistic and appropriate performance standards • Giving and

receiving feedback about performance • Writing and communicating constructive performance

appraisals • Planning education and development opportunities to sustain, improve or build on

employee work performance.

Advantages of performance management

• People believe that they have stake in the organization.

• People feel motivated because they know where the organization is moving.

• Infighting and politics ceases to exist.

.

But many a times measuring the performance can not be that simple to be measured in terms of direct

performance indicators. Many a times non-quantifiable parameters could also be the performance

29

areas. For example brand loyalty. In such kind of cases we have to go for Indirect Performance

measures.

The essence of the performance management system in organization is to recognize the importance of

the employees towards achieving the organizational objectives. The basic requirement for this is that

the employees’ personal goals should be perfectly aligned with the vision, mission and the values of

the organization.

The proposed conceptual framework also underscores the vital role of education, training and

development in the envisioned successful organization. In this organization, continuous learning is a

prerequisite to successful job performance and organizational effectiveness. Employees must be able

to learn work, developing effective technical and people skills in order to assume new responsibilities,

and keep pace with and anticipate the changing nature of work and our workplace.

For performance managers and employees, responding to these changes requires the ability to learn,

adapt to change, solve problems creatively, and communicate effectively in diverse groups. In

addition, employees must take personal and proactive responsibility for their careers to ensure future

employability and advancement.

The realities of the contemporary workplace will continue to challenge existing paradigms and should

be considered in managing the performance of employees in a dynamic working environment.

30

CHAPTER-4

INTRODUCTION TO THE

COMPANY

31

UFLEX INDUSTRIES LTD.

CMD – Mr. Ashok Chaturvedi

UFLEX is a Multi Million Group headquartered at Noida, on the periphery of New Delhi, India and

having manufacturing facilities in India & Dubai. UAE, offices in Europe and North America and

market presence in 80 countries around the world. Flex facility enjoys ISO 9001 and ISO 14001

certifications and has FDA and BGA approvals. For their products, U Flex is part of the D&B Global

Database and winner of various prestigious national and international awards like the top exporter of

BOPET and BOPP films, and the Worldstar award for packaging excellence. FPA, AIMCAL and the

Dupont Awards in 2004-2005 are the latest in this series. UFLEX Group came into existence in 1983

and has grown into one of the biggest multi integrated packaging groups in the world. Uflex Limited,

the India-based flexible packaging giant, began its existence nearly two decades ago and has come a

long way since then offering a vast array of innovative products and services that enrich life, improve

performance and create value for the customers and shareholders

. The group is a multi faceted organization which has backward integrated its operations from

manufacture of Polyester chips, Films (BOPET, BOPP and CPP - both in plain and metallized form),

Coated Film, Laminates, Pouches, Holographic films Gravure cylinders, Inks and adhesives to all

types of packaging & printing machines, offering total flexible packaging solutions to the entire

w o r l d .

They manufacture in-house Polyester chips, BOPET / BOPP / COATED / METALLISED / CPP

Films, Packaging machines, converting equipment, inks, adhesives, Flexible Laminates and Pouches

and have emerged as a “one stop shop” committed to providing customers with competitive

advantage, placing top priority to “customer success”. With consistent quality, production expertise,

continuous innovation in products and technologies, a dedicated work force and a highly motivated

corporate team, the Uflex group is expanding at an immense pace. The Film Division of Uflex Limited

is one of the largest manufacturer, supplier and exporter of a variety of Plastic Films in the world.

32

Mission

“We believe in using our creativity and aesthetic potential in providing flexible packaging solutions

which make packaging easier, faster, more efficient and user friendly. In this way we too have a share

in contributing to the conservation of resources by enhancing the shelf life of the perishable

products.”

Vision

“At UFLEX we believe that, to eventually emerge as a World leader in providing total Flexible

Packaging solutions, we need a customer focused approach.

The way to being a world class player is paved with state-of-the-art facilities blended with world class

practices. And it shall be our endeavor to be placed amongst the top ten international players by the

year 2005.”

Endeavour

Their endeavor is to enhance stake holder’s value.

PRINCIPLES

People Related

People come first whatever they do

Each individual is the organization’s responsibility first

Each individual is competent and capable of taking responsibility for himself

Each individual is unique and talented

Each individual is working in the interest of the organization

NO individual is a write off

Work related

High priority to quality and process improvements

Focus on customer expectations

Environment friendly manufacturing

Working with facts and data

Working on causes not only on phenomena

Cost efficiency , Respect for people

UFLEX Converting Division- The $150million flagship company of the Flex group is India's largest

manufacturer of flexible packaging materials. It is a one-stop shop offering a wide range of packaging

33

solutions. Its vertical integration thrust laid the foundation of two strategic Hi-tech divisions

manufacturing BOPET and BOPP films. Both these units are today among the largest in India.

UFLEX Chemicals Division- Originating from the backward integration thrust of Uflex Limited, the

Company is now an independent entity, developing and manufacturing Polyester Chips, wide range of

Adhesives and Printing inks. UFLEX Chemicals has diversified into Info Tech Industry offering call

centre services and software solutions.

UFLEX Engineering Division- Established with a view to expand the end use of flexible packaging.

It is now one of the foremost engineering companies in India. It offers a wide range of proven

sophisticated PLC controlled FFS packaging machines and converting equipment.

The projects division of UFLEX Ltd. offers specialized services in planning, design, monitoring and

execution of all Civil and Electromechanical works.

UFLEX Foods - A 100% Export oriented State-of-the-art freeze dried mushroom manufacturing

plant is set in the sylvan resort town of Dehradun in the foothills of the Himalayas.

34

CHAPTER-5

RESEARCH

METHODOLOGY

RESEARCH DESIGN

35

“Research design is the plan, structure, and strategy of investigation conceived so as to obtain

answers to research questions and to control variance” According to Kerlinger.

The plan is an outline of the research scheme on which the researcher is to work. The structure of the

research is a more specific outline or the scheme and the strategy shows how the research will be

carried out, specifying the methods to be used in the collection and analysis of the data.Research

design is the blueprint of the research it lays down the method and procedure for the collection of

requisite information and its measurement and analysis with a view to arriving at certain meaningful

conclusions at the end of the proposed study

Research design used in the project

The Research method followed in this project is ‘Descriptive Research’. I chose the mentioned

research method as the basic objective of the project was to examine Performance management

system prevailing in the company, suggest some suitable changes in existing system in order to make

it more positive and meaningful in achievement of desired organizational goals.

Descriptive studies

Descriptive studies are undertaken when the researcher is interested in knowing the characteristics of

certain groups such as age, sex, education level, occupation or income. It can also be conducted when

he wants to know the proportion of people in a given population who have behaved in a particular

manner, making projections of a certain things; or determining the relationship between two or more

variables. The objective of such a study is to answer the “who, what, where, and how” of the subject

under investigation. Descriptive studies are well structured. It is therefore, necessary that the

researcher gives sufficient thought to framing research questions and deciding the types of data to be

collected and the procedure to be used for this purpose. If you are not careful in the initial stages you

may find that either the data collected are inadequate or the procedure used is cumbersome and

expensive.

36

The data and records of the employees are also examined to understand the purpose well. Then the

research was designed as a good research design facilitates the study and makes it an efficient as

possible. A systematic research with structured and specified steps in specified sequence was designed

and is as follows:

Step1: The objective is specified with sufficient precision to ensure that data collected is relevant.

Step 2: The data collection method to be used is questionnaires, interviews and observations. While

designing data collection procedure, adequate safeguards against bias and unreliability are ensured.

Step 3: The questions are prepared in a clear, understandable manner.

Step 4: The sampling design used is stratified random sampling, under this sampling design; every

item of the universe has an equal chance of inclusion in the sample.

RESEARCH TOOLS AND QUESTIONNAIRE

Sampling Design

Sample size: Random sampling technique was adopted to choose the respondents for the sample.

This technique was used keeping in view the scope of the study, which try to cover different

departments and cadres of people. The sample drawn is 50 which are from the whole population.

Sample universe: UFLEX INDUSTRIES LTD., SECTOR- 4, NOIDA

Research tools : The instrument used by me for collecting the information is QUESTIONNAIRE

which contained questions covering various aspects related to performance management system. It

contained open ended questions, questions based on likert scale and close ended questions.

ACTION PLAN FOR DATA COLLECTION

37

To obtain the data free from errors, I performed every step carefully while collecting and recording

information and tried to get complete, comprehensible and consistent data The data for the present

research study was collected through two methods:

1. Primary data collection method

2. Secondary data collection method

PRIMARY DATA COLLECTION

The primary data are those which are collected afresh and for the first time. These data are obtained

by a study specifically designed to fulfill the data needs of the problems at hand. Such data are

original in character.

Collected through:

Methods of primary data collection:

The primary data has been collected through following methods:

1. Interview method:

Direct personal interview method was used to collect the information from the respondents

(employees) by personally visiting and meeting the people from whom data have to be collected. This

method was used because the project includes an intensive study of a limited field. Moreover, the data

needed for the purpose is more of personal nature which can be collected through directly

communicating with the employees in order to increase its reliability. The information thus collected

is original, accurate and in depth.

The interview was unstructured as it was characterized by flexibility of approach to questioning and

did not follow a system of pre-determined questions and standardized techniques of recording

information. The method of unstructured interview was chosen so as to have greater freedom to ask,

in case of need, supplementary questions or at times to change the sequence of questions.

38

2. Questionnaire method:

In this method, a questionnaire was made consisting of a number of questions to be answered and

filled by the respondents (employees) on their own. This method was used in order to enable the

respondents to answer the questions as per their convenience and to provide those adequate to give

well thought out answers. Thus this further increases accuracy.

Secondary data:

The secondary data are those which have already been collected by someone else and which have

already been passed through the statistical processes. Thus such data is not originally collected rather

obtained from published or unpublished sources.

Methods of secondary data collection:

Company Journals, Magazines, Internet, Books and newspapers. . The collection of the secondary

data was done through published sources and Unpublished sources of Performance management.

The methods of collecting primary and secondary data differ since primary data are to be originally

collected, while in case of secondary data the nature of data collection work is merely that of

compilation.

DATA ANALYSIS

SECTION B: NATURE OF CURRENT PERFORMANCE MANAGEMENTSYSTEMS:

Q1. Does your organization operate a formal performance management system?

39

OPTIONS

NO. OFRESPONDENTS

PERCENTAGE

YES

NO

50

0

50

0

Q2.What is the degree of performance management system prevailing in your company?

a) 80º b) 90º c) 270º d) 360º

40

OPTIONS NO. OFRESPONDENTS

PERCENTAGE

80º

90º

270º

360º

0

50

0

0

50

0

0

0

Q3. Please indicate which of the following methods of performance appraisal

Form a part of your system?

41

a) Written Essay method f) Critical Incident assessment

b) Graphic rating scales g) Behavioral Assessment (BARS)

c) Ranking method h) Paired Comparison Method

d) 360 degree appraisal i) Forced distribution method

e) Self appraisal j) Balance Score card

k) Any other pls. specify_______________


PERCENTAGE

Written Essay method

Graphic rating scales

Ranking method

360 degree appraisal

Self appraisal

Critical Incidentassessment

Behavioral Assessment(BARS)

46

14

0

0

50

0

0

92

28

0

0

10

0

42

Paired ComparisonMethod

Forced distributionmethod

Balance Score card

Any other pls.specify_______________

0

0

0

0

0

0

0

0

0

43

4. Who sets the performance goals/requirements for individuals?

a) Senior Managers b) Line managers/Team leaders

c) HR professionals d) Appraisee

e) Appraiser & Appraisee e) others (pls. specify)

OPTIONS NO. OF RESPONDENTS PERCENTAGE

Senior Managers

Line managers/Teamleaders

HR professionals

36

27

27

72

54

54

44

Appraisee

Appraiser & Appraisee

others (pls. specify)

10

27

0

20

54

0

Q5. What are the determinants for job performance in your organization?

45

Organizational Culture Technology

Competency of the employee Intelligence

Attitude Aptitude


PERCENTAGE

Organizational Culture

Technology

Competency of the employee

Attitude

Intelligence

0

5

41

9

5

0

10

82

18

10

46

Aptitude 9 18

6. In general, how effective has your organization’s performance management

Processes proved in improving overall performance?

a) Effective b) Moderately effective c) Ineffective d) Don’t Know


PERCENTAGE

47

7. Do you expect any changes in The Current Performance Management System In your

Organization?

a) Yes b) No


PERCENTAGE

YES

NO

9

9

18

18

48

INTERPRETATION

The analysis shows that Uflex ltd follow formal Performance management system although the natureof Performance management is traditional they are not in pace with the latest development in thisfield. Also, maximum responses show that degree of Performance appraisal followed is 90º.amongstvarious methods of performance appraisal Self appraisal is used on a large scale in Uflexltd. It alsoindicates that senior managers lay down performance requirements for employees, although linemanagers and HR professionals contribute as well to the above purpose. Being a semi governmentorganization performance management practices are not followed on a large scale in the company butstill majority of population says that while measuring performance of employee Competency ofemployee plays a major role apart from Intelligence, attitude, aptitude of the employee. Majority ofemployees feel that current Performance management processes has proved quite effective inimproving the overall performance of employee in the company. Despite of all these aspects ofPerformance management employees still feel that there should be some changes in the currentperformance management practices so that employees of theUFlex ltd can work more effectivelytowards fulfilling the organizational goals and take company to higher levels.

49

SECTION – C: PERCEPTIONS OF HR PROFESSIONALS ABOUT PERFORMANCEMANAGEMENT SYSTEMS:


PERCENTAGE

Retentionstrategy

a) StronglyDisagree

0 0

b) Disagree 0 0

c) Neutral 14 28

d) Agree 36 72

e) StronglyAgree

0 0


PERCENTAGE

RewardAllocation

50

f) StronglyDisagree

0 0

g) Disagree 0 0

h) Neutral 14 28

i) Agree 36 72

j) StronglyAgree

0 0


PERCENTAGE

Identification of training and developmentneeds

strongly Disagree 0 0

Disagree 0 0

Neutral 14 28

Agree 36 72

51

Strongly Agree 0 0

Facilitates promotions, transferand termination decisions


Disagree 0 0

Neutral 14 28

Agree 36 72

Strongly Agree 0 0

52

To clarify an employee’sjob requirements


Disagree 0 0

Neutral 23 46

Agree 27 54

Strongly Agree 0 0

53

Identifying barriers toperformance


Disagree 0 0

Neutral 0 0

Agree 36 72

Strongly Agree 14 28

54

Motivational strategy


Disagree 0 0

Neutral 0 0

Agree 40 80

Strongly Agree 9 18

55

2) What according to you is the most challenging aspect of performance management?

a) Determining the evaluation criteria b) Creating a rating instrumentc) Lack of competenced) Errors in rating and evaluatione) Resistance


PERCENTAGE

Determining the evaluation criteria 32 64

Creating a rating instrument 14 28

56

Lack of competence 5 10

Errors in rating and evaluation 0 0

Resistance 0 0

In this section, I tried to figure out the knowledge and opinions of employees about Performancemanagement in general. I listed down the few parameters to know the reason of undertakingperformance management system in the company. There are mixes responses, according toemployees Reward allocation i.e. giving rewards on the basis of performance and Motivation beingthe major reason for implementing Performance management system. Besides this, retention, toidentify training and development needs, to take decisions on promotions, transfers and terminations,identifying barriers to performance are also some of the prominent causes for implementingPerformance management. Also, majority of employees says determining evaluation criteria foremployees is the most challenging aspect of performance management system, apart from creatingrating instrument are challenging aspects as well.

SECTION – D: PROCESS OF PERFORMANCE MANAGEMENT

57

Q1. To what extent do you agree that the following statements describe Performance ManagementProcesses in your Organization?


PERCENTAGE

Performance Related Pay is an essential part ofPerformance management


Disagree 0 0

Neutral 0 0

Agree 0 0

Strongly Agree 0 0

58


PERCENTAGE

Line managers Own and operate ThePerformance Management Processes


Disagree 25 50

Neutral 0 0

Agree 0 0

Strongly Agree 0 0

59


PERCENTAGE

Performancemanagement motivatesindividuals


Disagree 0 0

Neutral 0 0

Agree 23 46

Strongly Agree 27 54


PERCENTAGE

Performance management is used tomanage organizational culture

60


Disagree 0 0

Neutral 25 50

Agree 25 50

Strongly Agree 0 0


PERCENTAGE

The effectiveness of Performance management ismeasured in Qualitative rather than Quantitativeterms


Disagree 0 0

Neutral 10 20

Agree 40 80

Strongly Agree 0 0

61


PERCENTAGE

The aims and Objectives of performance management arewell communicated and fully understood.


Disagree 32 64

Neutral 0 0

Agree 14 28

Strongly Agree 0 0

62

2. Do you give an overall rating for performance?

a) Yes b) No


PERCENTAGE

YES

NO

50

0

100

0

63

3. If yes, what sort of feedback do you give?a) Numerical/alphabetical b) Verbal (all positive)

c) Verbal (positive and negative) d) Combination of the above

e) Others (pls. specify)


PERCENTAGE

Numerical/alphabetical

Verbal (all positive) 0 0

Verbal (positive and negative) 0 0

Combination of the above 50 100

Others (pls. specify) 0 0

64


PERCENTAGE

a. Coaching


Disagree 0 0

Neutral 31 62

Agree 18 36

Strongly Agree 0 0

65

NO. OFRESPONDENTS

PERCENTAGE

b. Training and development


Disagree 0 0

Neutral 22 44

Agree 27 54

Strongly Agree 0 0

66

NO. OFRESPONDENTS

PERCENTAGE

c. Career Management and development


Disagree 0 0

Neutral 41 82

Agree 9 18

Strongly Agree 0 0

67

d. Succession Planning


Disagree 0 0

Neutral 18 36

Agree 32 64

Strongly Agree 0 0

Q5. Did the following people receive training in performance management

Techniques? (Please tick as many boxes as appropriate)

All Employees Other Managers/team leaders

68

Heads of departments Appraisers

HR Team None


PERCENTAGE

All Employees 45 90

Heads of departments 5 10

HR Team 5 10

Other Managers/team leaders 5 10

Appraisers 5 10

None 0 10

SECTION – D: PROCESS OF PERFORMANCE MANAGEMENT

69

In this segment, I tried to take an overview of Performance management system of Uflex ltd. withrespect to various aspects. Majority of employees says that performance related pay is not followed inthe company, line managers doesn’t operate the performance management processes. Also,performance management plays a major role in motivating individuals and it is used to managerorganizational culture. In the company, Effectiveness of performance management system ismeasured in both Qualitative as well as Quantitative terms. Majority of employees are of the opinionthat aims and objectives of performance management are not well communicated i.e. system is nottransparent employees are not fully aware of the performance management practices in the company.The company gives overall rating for the performance and the feedback is combination of Numericalvalues, verbal and alphabetical. Coaching and career management are important facet of thecompany’s process along with Training and development and succession planning. The mostimportant part is all employees receives training with respect to performance management techniques.

70

CHAPTER-6

RESULTS

71

There is communication gap between higher level & staff level. So unsatisfied employee

cannot keep his/her comments and cannot oppose the final decision which is finally made by

only higher authority.

HERE IS THE SAMPLE OF KEY RESULT AREAS DESIGNED BY ME FOR THE

SALES DEPARTMENT:

KEY RESULT AREAS: SALES EXECUTIVES

K.R.A 1 - To deliver presentations of products at customer sites and at conferences and exhibitions.

K.R.A 2 – To maintain Company’s contact management database with accurate, up-to-date contact

and activity details

K.R.A 3 - To Meet annual sales targets and Produce monthly sales report.

K.R.A 4 - To Maintain contact with existing and potential customers to promote sales and deliver

detailed account plans

72

K.R.A 5 - Understand the market in which the company operates and how the company’s products

and services are used within that market

K.R.A 6 - Ensure that company has an in depth understanding of the users of company products and

their ongoing needs.

ASSISTANT MANAGER

K.R.A 1 - To Recruit and train sales force and assist in the management of the overall sales operation

for the Improvement business at a specific branch location.

K.R.A 2 - To assure total program success through motivating, coaching and developing a high

performance sales team.

K.R.A 3 -To Work closely with the Sales Department Head to learn and develop skills necessary to

lead a successful sales team.

K.R.A 4 - To look after the dealer/distributor network for increasing sales and maintaining

relationship with them.

K.R.A 5 - Visiting Corporate, Relationship Building, Selling Financial Products

K.R.A 6 – To do Researches, writes and implements policies, standards, procedures and best practice

documentation.

SALES DEPUTY MANAGER

K.R.A 1 – To develop and execute as well print, special issues/supplements, newsletters, catalogues

of the B2B magazines. Sell for awards, expos’, exhibitions, seminars.

K.R.A 2 – To Ensure that monthly targets for advertisements and collection of outstanding payments

are met and maintaining accurate sales forecasts and reports

73

K.R.A 3 - To Provide continuous communication to the customers about their samples, orders and

other logistics issues

K.R.A 4 - To Maintain excellent communication and coordination with Supply Chain, R&D,

Quality, Finance and Marketing

K.R.A 5 – To arrange for meeting revenue targets by developing, managing and growing the

business.

.K.R.A 6 - To Develop and promote market (country/region) specific products, execute market

specific policies.

SALES MANAGER

K.R.A 1 - Developing a business plan and sales strategy for the market that ensures attainment of

company sales goals and profitability

K.R.A 2 - Prepare action plans by individuals as well as by team for effective search of sales leads

and prospects.

K.R.A 3 - Provides timely feedback to senior management regarding performance. And Reporting to

Management about Performance of Sales Team.

K.R.A 4 - To Understand departmental financial data to determine what is happening in your

department. Review financial data that affects your department's profit centers

. K.R.A 5 – To Meet daily with salesman. And Offer them the coaching, counseling, advice,

support, motivation or information they need in order to help them meet their sales objectives

K.R.A 6 - Provides timely, accurate, competitive pricing on all completed prospect applications

submitted for pricing and approval, while striving to maintain maximum profit margin

75

CHAPTER-7

CONCLUSION AND

SUGGESTIONS

There is Traditional/ Biased Performance management system in the sense that all theauthority lies in the hands of senior management irrespective of the performance level ofindividuals.

It is inferred that Performance management system is crucial for any organization, soorganization must invest in specific technology oriented products and services, software &hardware to improve the performance of employees.

Performance management system is quite traditional in the company, recent technologies arenot adopted.

78

CHAPTER-8

BIBLIOGRAPHY

References

1) Rao T.V( Performance Management and appraisal system) 2005 fourth printing

2) Sahu R.K (Performance Management System) 2007 edition

3) Michael Armstrong and angela Baron(Managing Performance Management in action) 2005

first edition

4) Decenzo ,A David , Robbins P Stephens ( Personnel and human Resource Management)

Ashok K Ghosh Publications 2007 Edition

79

Websites

www.citehr.com

www.Performanceappraisal.com

www.123manage.com

www.tvrls.com

www.humanresourceabout.com

www.chrmglobal.com

82

ANNEXURE

academic internship project on performance management system

Education