A STUDY

OF PERSONNEL MANAGEMENT
WITH SPECIAL EMPHASIS ON
PERFORMANCE APPRAISAL SYSTEM
IN CROMPTON GREAVES LTD

INDEX

CHAPTER

CONTENTS

NO.
1

INTRODUCTION

COMPANY PROFILE

OBJECTIVES OF THE STUDY

RESEARCH METHODOLOGY

LITERATURE REVIEW

EVOLUTION OF PERFORMANCE

PAGE NO.

APPARAISAL
7

FINDINGS AND ANALYSIS

RECOMMENDATIONS

BIBLIOGRAPHY

INTRODUCTION
2

Personnel Management
In all organizations, there should be someone concerned with the welfare and
performance of persons who are a part of the operation. When an individual or a team
of individuals takes on this task of seeing to programs and setting policies that impact
everyone associated with the company, they are engaged in the process of personnel
management, sometimes referred to as human resources (HR) management

The

function of a personnel manager usually begins with the staffing process. The
manager may be focused on screening and interviewing applicants, with an eye to
placing individuals with the right skill sets in the right position within the company.
Along with placement, the HR manager may also oversee, or at least be involved in,
the creation of entry level training programs, as well as continuing education
opportunities for existing employees.
Determining company policies and procedures as they relate to personnel is another
important aspect of the personnel management process. HR functions often include
drafting vacation, sick leave, and bereavement policies that apply to all employees.
The personnel management

team is also often responsible for managing any

healthcare program provided to the employees as well.

One aspect of company organization that needs the input of effective personnel
management is the drafting of a company handbook. Establishing operation policies
and procedures, requirements for employment, commendation and disciplinary
procedures, and even something as simple as a dress code has to be compared with
state and federal guidelines before the handbook is ready for release to the company at
large. Personnel managers and the HR staff are ideal for drafting and reviewing the
company handbook.
Sometimes overlooked in the course of personnel management is the emotional
welfare of the employees. Increasingly, more personnel managers understand that a
well-adjusted employee is an asset to the company. To this end, many people in
charge of personnel management try to provide opportunities for employees who are
in need of counseling to receive support from the company.

This support often involves scheduling time during working hours for the counseling
sessions, and perhaps picking up the cost if insurance does not cover counseling. As
with continuing educational programs, counseling is seen as another way that the
company invests in the future relationship between the employee and the employer. A
good HR manager understands this and will strive to make sure this sort of support is
available.
Depending on the size of the organization, it may be possible for one person to handle
all personnel management functions. As a company grows, it may be necessary to
expand from a single personnel manager to a full-fledged personnel management or
Human Resources team. By understanding the needs of the company at each point in
its growth, management can readily see to the addition to the Human Resources team
over time.
Define Personnel Management

Administrative discipline of hiring and developing employees so that they become

more valuable to the organization. It includes (1) conducting job analyses, (2)
planning personnel needs, and recruitment, (3) selecting the right people for the job,
(4) orienting and training, (5) determining and managing wages and salaries, (6)
providing benefits and incentives, (7) appraising performance, (8) resolving disputes,
(9) communicating with all employees at all levels.

Performance management can be defined as a strategic and integrated approach to

delivering sustained success to organizations by improving the performance of the
human capital and by developing the capabilities of teams and individuals within that
organization (Armstrong and Baron, 2000). The process of performance management
therefore focuses not only with WHAT is produced but, also HOW it is produced.
It seeks to ensure that what has been produced is in line with the organizations needs
and these products have been produced in line with the organizations way of doing
things.

Performance management can be achieved through many different ways. These

include performance appraisal system and coaching. Performance appraisal system
can be described as a fairly old system of measuring employees performance that has
been in use in many organizations. However, Performance appraisal has not brought
in the amount of positive results that was expected of it. Armstrong and Mulis
(1994:86) quoted one manager describing performance appraisal as a dishonest
annual ritual. The question that arises then is: If Managers (the custodians of the
system) do not have confidence in their own system, what more employees (who
happen to be victims of the system)?
The meaning of the word appraisal is to fix a price or value for something. This is
used in finance in terms such as project appraisal or financial appraisal where a value
is attached to a project. Similarly performance appraisal is a process in which one
values the employee contribution and worth to the organization.
Performance appraisal can be defined as a system of measuring employees
performance relative to the assigned or agreed objectives. The process
starts with the supervisor and or with the subordinate agreeing on specific
objectives that need to be met on an agreed time period. The objectives
that are used in the Performance appraisal stem from the main
organizational objectives that are reduced to Departmental goals and now
to individual goals.
The performance appraisal system has to be transparent and the employee should be
taken into full confidence. In many cases employees themselves are given a chance to
conduct a self-appraisal. Performance appraisal is a case of joint problem solving by
the organization and the employee. However the organization must also take care of
future potential and not get bogged down by current performance.
Normally the immediate supervisor does the appraisal. Some organizations also have
a peer group performance appraisal where colleagues rate the performance.
The HR person must also ensure that line managers are properly trained for carrying
out the appraisal including interviewing techniques and on how to give feedback. The

managers must also be trained to look at the cases objectively outside of their personal
opinion of the candidate.

 Scope of work

To effect promotion based on competence and performance.

To assess the training & development needs of the employees.

To bridge the gap between the existing performance & desired

performance.

To help each employee to understand his own strengths &weakness.

They can be mechanism of increasing communication between the

employee &his.

Supervising officer so that each employee gets to know the difficulties of

his subordinates and attempt to solve them.

It provides legally defensible reasons for making promotion, transfer, and

reward and discharge decisions.

They can be instruments to provide an opportunity for employees for self

reflection And goal setting so that individually planned and monitored
development takes place.

They can assist in a variety of personnel decisions by generating data

about each employee periodically.

Develop inter personal relationship.

To help in salary increment.

To prevent grievance & in-disciplinary activities.

Provide information about the performance ranks.