Page | 1

CERTIFICATE OF ORIGINALITY
Date
:

I, Miss.Priya Giri the undersigned hereby declare that the project report entitled, “An
Analytical Study of Performance Management System as tool for effective Performance: A
study of selected employees in AAKAR Architects Private Limited” submitted in partial
fulfillment for the award of the Master of Commerce Degree with specialization in Human
Resource Management for the Academic year 2018-2019 for the evaluation in lieu of the Annual
Examination to be held in March/April, 2019 is my own work and has been carried under the
guidance of Dr. Debpriya Das

The work is an original one and has not being submitted earlier to this university or to any other
institution/ organization for fulfillment of the requirement of a course or for award of any
Degree/ Diploma/ Certificate. All the sources of information used in this Project Report have
been duly acknowledged in it.

(Signature of the Student)

Miss.Priya Giri

Master of Business Administration (Specialization in Human Resource

Management) Department of Commerce and Business Management

Omkarnand Institute of management & Tewchnology

Uttrakhand Technical University

Page | 2
 PREFACE

Today we are at the doorstep of 21st Century, competition at the various levels is increasing
day by day. New and new developments are taking place and these days in all fields all over
India to make the life of the people more comfortable a luxurious.

Those in order to survive in market on should practical as well as theoretical knowledge about
all different fields existing market. In today’s competitive world edges is more significant than
theoretical knowledge. Today practical training and knowledge also plays an important role.

Master education brings its students in direct contact with the real corporate world thorough
industrial training. The Master programmes provides its students with an in depth study of
various managerial activities that are performed in any organization.

Page | 3
 TABLE OF CONTENTS

CHAPTER TITLE OF THE CHAPTER PAGE

NUMBER NUMBER

Bonafide Certificate
Acknowledgements
Certificate of Originality
Declaration
Student – Project Guide Interaction Report
1 INTRODUCTION : 9 to 24

1.1 History of Performance Management 10

1.2 What is Performance Management 11
1.3 Definitions of Performance Management 12
1.4 Aims of Performance Management 13
1.5 Principles of Performance Management 14
1.6 Concerns of Performance Management 15
1.7 Scope of Performance Management 15
1.8 Benefits of Performance Management 16
1.9 Defining Performance 17
1.10 Factors affecting Performance 17
1.11 Process for Managing Performance 18
1.12 Meaning of Performance Management System 18
1.13 Contribution of Performance Management System 21

Page | 4
 1.14 Disadvantages/ Dangers of Poorly implemented PMS 21

1.15 Characteristics of an Ideal PMS 22

1.16 Performance Review 23
1.17 Tips for Successful Performance Review 23
1.18 Successful Performance Review Conversation Needs 24
1.19 Different techniques of Performance Review 24
2 COMPANY PROFILE 26 to 32

3 REVIEW OF LITERATURE 33 to 42

4 RESEARCH METHODOLOGY 43 to 47
4.1 Title of the Research Study 44
4.2 Duration of the Research Study 44
4.3 Basic Terms of Present Research Study 44
4.4 Rationale of the Research Study 44
4.5 Scope & Coverage of Research Study 44
4.6 Objectives of Research Study 45
4.7 Research Design 45
4.8 Sources of Information 45
4.9 Sampling Design 45
4.10 Data Collection, Analysis & Interpretation 46
4.11 Significance of Research Study 46
4.12 Limitations of Research Study 46

5 DATA ANALYSIS & INTERPRETATIONS 48 to 92

6 FINDINGS, SUGGESSTIONS AND CONLUSION 93 to 96

BIBLIOGRAPHY 97

QUESTIONNAIRE 99

Page | 8
 CHAPTER -1
INTRODUCTION

Page | 9
 CHAPTER-1
INTRODUCTION
1.1 History of Performance Management :

No one knows precisely when formal methods of reviewing performance were first
introduced. According to Koontz (1971), the emperors of the Wei dynasty (AD 221-265)
in China had an ‘Imperial Ratter’ whose task was to evaluate the performance of the official
family. Centuries later, Ignatius Loyola(1491-1556) established a system for formal rating
of the members of the Society of Jesus (the Jesuits).

The first formal monitoring systems, however, evolved out of the work of Federick Taylor
and his followers before World War I. Rating for officers in the US armed services was
introduced in the 1920s, & this spread to the UK, as did some of the factory-based US
systems. Merit-rating came to the fore in the USA & the UK in the 1950s & 1960s, when it
was sometimes rechristened performance appraisal. Management by objectives then came
& went in the 1960s & 1970s and simultaneously, experiments were made with the critical
incident technique & behaviourally anchored rating scales. A revised form of results-oriented
performance appraisal emerged in the 1970s, which still exists today.

The first recorded use of the term ‘performance management’ is in Beer and Ruh (1976).
Their thesis was that ‘performance is best developed through practical challenges &
experiences on the job with guidance and feedback from superiors’. They described the

performance-management system at Corning Glass Works, the aim of which was to help
managers give feedback in a helpful & constructive way, and to aid in the creation of a
developmental plan.

The concept of performance management then lay fallow for some years, but began to
emerge in the USA in the mid-1980s as a new approach to managing performance. However,
one of the first books exclusively devoted to performance managements was not published
until 1987(Plachy 1987). In the UK the first published reference to performance
management was made at a meeting of the Institute of Personnel Management (IPM)
Compensation Forum in 1987 by Don Beattie, then personnel director, ICL, who described
how it was used as ‘an essential contribution to a massive & urgent change programme in
the organisation’ and had become a part of the fabric of the business. Full recognition of the
existence of performance management was provided by the research project conducted by
the Institute of Personnel Management (1992).

Page | 10
1.2 What is Performance Management ?

There are few comprehensive definitions of Performance Management. HM Treasury

describe Performance Management as “Managing the Performance of an organisation or
individual”. Whilst this is not a precise definition grounded in literature it demonstrates the
breadth of performance management and hence the difficulties in defining its scope, activities
and practices. It demonstrates that performance management is concerned with the
management of performance throughout the organisation and as a result is a
multidisciplinary activity.

Further, in their Glossary of Performance Terms the Improvement Development Agency

further suggest that –

“it involves you understanding and acting on performance issues at each level of your
organization, from individuals, teams and directorates, through to the organization itself.
As well as involving performance measurement, systems and processes, performance
management is about managing people and ‘the way people within an organisation operate
and work together’. Issues such as leadership, decision making, involving others,
motivation, encouraging innovation, and risk taking are just as important to bring about
improvement”.

This definition further demonstrates the breadth of the subject highlighting some of the
activities involved in managing performance, requiring a range of different skills and
functional approaches. This provides challenges of terminology when we discuss the
subject. Academic research in particular tend to be undertaken in functional subject areas
and often within organisations managers sit in functions and take a functional perspective
on the subject of performance.

Despite this the clear multidisciplinary, the field of performance management has developed
from diverse origins. Different measurement and management techniques and approaches
have developed independently. Financial and particularly management accounting have been
concerned with measuring and controlling the financial performance of organisations,
operations have been concerned with “shop floor” performance often focusing on improving
throughput and efficiency whether that be from a manufacturing or a service perspective,
strategy have been concerned with developing plans to deliver future objectives (including
planned performance) and personnel (or HR) have been concerned with managing the
performance of people. It is relatively recently that performance management from these
disparate disciplines has begun to converge and recognise the need for integration into a
multidisciplinary approach to managing performance.

Page | 11
1.3 Definitions of Performance Management :

Armstrong(1994):- Performance management is a process for establishing shared

understanding about what is to be achieved, and an approach to managing and developing
people in a way which increases the probability that it will be achieved in the short and longer
term.
American Compensation Association (1996):-

An effective performance management system aligns individual performance with the

organisation’s mission, vision and objectives.

Armstrong & Murlis (1994):-

Performance management is a means of getting better result from the organization, teams
and individuals within and agreed framework of planned goals, objectives and standards.

Bitici, Carrie & McDevitt (1997):-

The performance management process is the process by which the company manages its
performance in line with its corporate & functional strategies and objectives. The objective
of this process is to provide a pro-active closed loop system, where the corporate and
functional strategies are deployed to all business process, activities, tasks and personnel, and
feedback is obtained through the performance measurement system to enable appropriate
management decisions.

Lockett (1992) :-

The essence of performance management is the development of individuals with the

competence and commitment, working towards the achievement of shared meaningful
objectives within an organization which supports and encourages their achievement.

Hendry, Bardley and Perkins (1997) :-

A systematic approach to improving individuals and team performance in order to achieve

organizational goals.

IDS (1997) :-

A clear focus on how each employee can contribute to the overall success of the
organization lies at the heart of performance management systems.
Page | 12
 IRS Management Review (1996) :-

Performance management is a way of translating corporate goals in to achievable objectives

that cascade down throughout the organization to produce optimum results.
Philpott & Sheppard (1992) :-

Performance management aims to improve strategic focus and organizational effectiveness

throughout continuously securing improvements in the performance of individuals and
teams.

Walters (1995) :-

Performance management is about ‘directing and supporting employees to work as

effectively as possible in line with the needs of the organization’.

1.4 Aims of Performance Management :-

The Basic Aims :-

Two simple propositions provide the foundation upon which performance management is
built :-

(1) When people (individuals & teams) know and understand what is expected of them, and
have taken part in forming these expectations, they will use their best endeavours to meet
them.

(2) The capacity to meet expectations depends on the levels of capability that can be
achieved by individuals and teams, the levels of support they are given by management
, and the processes, systems, and resources made available to them by the organization.

These propositions imply that the basic aims of performance management

are to share understanding about what is to be achieved, to develop the capacity of people
and the organization to achieve it and to provide the support and guidance individuals and
teams need to improve their performance.

Another way of putting the overall and performance management is that

it exists to establish a culture in which individuals and group take responsibility for the
continuous improvement of the business process and of their own skills and contributions. It
is about sharing expectations. Managers can clarify their expectations of what they want
individuals team members and their teams as a whole to do, and individuals and groups can
communicate their expectations of what they should be able to do, of how they should be
Page | 13
managed, the support and resources they need and how their talent should be used. The aim
is to achieve consensus because, as Fletcher (1993) put it, ’our perceptions of what is real
and valid in the world depend on a consensus of shared beliefs.’ One of the aims of
performance management could be expressed as being to clarify the psychological contract.

Detailed Aims :-

In more details, the aims of performance management are two :-

(1) Help to achieve sustainable improvements in organizational performance.

(2) Act as a lever for change in developing a more performance oriented culture.

(3) Increase the motivation and commitment of employees.

(4) Enable individuals to develop their abilities, increase their job satisfaction and achieve
their full potential to their own benefit and that of the organization as a whole.

(5) Enhance the development of the team cohesion and performance.

(6) Develop the constructive and open relationship between individuals and their managers
in a process of continuing dialogue which is linked to the work actually being done
throughout the year.

(7) Provide opportunities for individuals to express their aspirations and expectations about
their work.

Aims Suggested by other Commentators :-

The American Compensation Association (1996) states that organizations rely on

performance management to :-

(1) Document job responsibilities.

(2) Help define performance expectations.

(3) Provide a framework for supervisors and employees to communicate with each other.

(4) Provide ongoing opportunities for supervisors to coach and encourage personal
development.
(5) Align individuals performance expectations with organizational goals.

Page | 14
(5).5 Principles of Performance Management :-

The principles of performance management have been well summarized by IRS (1996) as
follows:-

 It translate corporate goals into individuals, teams, department and divisional

goals.

 It help to clarify corporate goals.

 It is a continuous and evolutionary process, in which performance improves over

time.

 It relies on consensus and cooperation rather than control on coercion.

 It encourages self-management of individual performance.

 It requires a management style that is open and honest and encourages to two-way
communication between superiors and subordinates.

 It requires continuous feedback.

 Feedback loops enable the experience and knowledge and gained on the job by
individuals to modify corporate objectives.

 It measures and assesses all performance against jointly agreed goals.

 It should apply to all staff, and it is not primarily concerned with linking
performance to financial reward.

Performance management should operate in accordance with the following ethical

principles as defined by Winstanely and Stuart- Smith (1996) :-

 Respect for the individuals – people should be treated as ‘ends in themselves’

and not merely as ‘means to other ends’;

 Mutual respect- the parties involved in performance management processes

should respect each other’s need and preoccupations;
 Procedural fairness- the procedures incorporated in performance management
should be operated fairly to limit the adverse effect on individuals;

 Transparency- people affected by decisions emerging from the performance

management process should have the opportunity to scrutinize the basis upon
which decisions were made.

Page | 15
(5)6 Concerns of Performance Management :-

Performance management is basically concerned with performance improvement in order to

achieve organizational, team and individual effectiveness. Organizations, as stated by
Lawson (1995), have ‘to get the right things done successfully’.

Secondly, performance management is concerned with employee development.

Performance improvement is not achievable unless there are effective processes of the
continuous development. This addresses the core competences of the organisation and the
capabilities of individuals and teams. Performance management should really be called
performance and development management.

Thirdly, Performance management is concerned with satisfying the needs and expectations
of all organization’s stakeholders- owners, management, employees, customers, suppliers
and the general public. In particular, employees are treated as a partners in the enterprise
whose interests are respected and who have a voice on a matters that concerns them, whose
opinions are sought and listened to. Performance management should respect the needs of
individuals and teams as well as those of the organization, recognizing that they will not
always coincide.

Finally, performance management is concerned with communication and involvement. It

creates climate in which a continuing dialogue between managers and the members of their
teams takes place to define expectations and shared information on the organization’s
mission, values and objectives. This establishes mutual understanding of what is to be
achieved and framework for managing and developing people to ensure that it will be
achieved. Performance management can contribute to the development of the high-
involvement organization by getting teams and individuals to participate in defining their
objectives and the means to achieve them.

(5)7 Scope of Performance Management :-

Performance management is about managing the organization. It is a natural process of

management, not a system or a technique (Fowler, 1990). It is a also about managing within
the context of the business (its internal & external environment). This will affect how it is
developed, what is sets out to do and how it operates. The context is very important, and
Jones (1995) goes as far as to say ‘manage context, not performance’.

Performance management concerns everyone in the business- not just managers. It rejects
the cultural assumptions that only managers are accountable for the performance of their

Page | 16
 teams and replaces it with the belief that responsibility is shared between managers and team
members. In a sense, managers should regard the people who report to them as a customers
for the managerial contribution and services they can provide. Managers and their teams are
jointly accountable for results and are jointly involved in agreeing what they need to do and
how they need to do it, in monitoring performance & in taking action.

(5) 8 Benefits of Performance Management :-

The benefits to the organisation, managers and individuals of well- conceived and well-run
performance management processes are summarised below :

For the Organisation :

 Align corporate, individual and team objectives.

 Improve performance.

 Motivate employees.

 Increase commitment.

 Underpin core values.

 Improve training and development process.

 Help to develop a learning organisation

 Enlarge the skill base.

 Provide for continuous improvement and development.

 Provide the basis for career-planning.

 Help to retain skilled employees.

 Support total quality and customer service initiatives.

 Support culture- change programmes.

For Managers :

 Provide the basis for clarifying performance and behaviour expectations.

 Afford a framework for reviewing performance and competence levels.

 Improve team and individual performance.

 Support leadership, motivating and teambuilding processes.

Page | 17
  Provide the basis for helping underperformers.

 May be used to develop or coach individuals.

 Offer the opportunity to spend structured ‘quality’ time with teams and team
members.

 Provide the basis for providing non-financial rewards to staff.

For Individuals :

 Greater clarity of roles and objectives.

 Encouragement and support to perform well.

 The provision of guidance and help in developing abilities and performance.

 Opportunities to spend ‘quality time’ with their managers.

 Opportunities to contribute to the formulation of objectives and plans and to

improvements in the way work is managed and carried out.

 An objective and fair basis for assessing performance.

(5)9 Defining Performance :-

If you can’t define performance, you can’t measure or manage it. It has been pointed out
by Bates & Holton (1995) that ‘Performance is a multi-dimensional construct, the
measurement of which varies, depending on a variety of factors.’ They also state that it is
important to determine whether the measurement objectives is to assess performance
outcomes or behaviour.

There are of course different views on what performance is. It can be regarded as simply the
record of outcomes achieved. On an individual basis, it is a record of a person’s
accomplishments. Kane (1996) argue that performance ‘is something that the person leaves
behind and that exists apart from the purpose’. Bernadin, Kane, Ross, Spina and Johnson
(1995) are concerned that-

Performance should be defined as the outcomes of work because they provide the strongest
linkage to the strategic goals of the organisation, customer satisfaction, and economic
contributions.

The Oxford English Dictionary defines performance as the ‘accomplishment, execution,

Page | 18
 carrying out, working out of anything ordered or undertaken’. This refers to outputs/
outcomes, but also states that performance is about doing the work, as well as being about
the results achieved. Performance could therefore be regarded as behaviour- the way in
which organisations, teams and individuals get work done. Campbell (1990) believes that
‘performance is behaviour they can be contaminated by systems factors’.

A more comprehensive view of performance is achieved if it is defined as embracing both

behaviour and outcomes. This is well put by Brumbrach (1988) :

Performance means both behaviours and results. Behaviours emanate from the performer
and transform performance from abstraction to action. Not just the instruments for results,
behaviours are also outcomes in their own right- the product of metal and physical effort
applied to tasks- and can be judged apart from results.

1.10 Factors affecting Performance :-

Performance is affected by a number of factors, all of which should be taken into

account. These Comprise :-

 Personal factors- the individual’s skill, competence, motivation and commitment.

 Leadership factors- the quality of encouragement, guidance and support provided

by managers and team leaders.

 Team factors- the quality of support provided by colleagues.

 Systems factors- the system of work and facilities provided by the organisation.

 Contextual factors- internal and external environmental pressures and changes.

1.11 Process for Managing Performance :-

It has been well said by Mohrman and Mohrman (1995) that managing performance is
‘running the business’. It is not a set of techniques and it is certainly not all about
‘performance management systems’. Kermally (1997) believes that ‘performance
management should support corporate strategy formulation and monitor value drivers,
i.e. those elements that really make the business profitable’.

If an all embracing or holistic approach to the management of performance is adopted, the

following aspects of what makes organisations, teams and individuals perform well must
be considered:

 The context of the organisation.

 Culture.

Page | 19
  Functionality.

 Job design

 Teamwork

 Organisational development.

 Purpose and value statements

 Strategic management.

 Human resource management.

1.12 Meaning of Performance Management System :-

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. 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.

Page | 20
A Performance Management System enables a business to sustain profitability and
performance by linking the employee’s pay to competency and contribution. It provides
opportunities for concerted 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,
channelled 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.

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

Page | 21
 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.

1.13 Contribution of Performance Management System :

There are many advantages associated with implementation of a performance

management system. A performance management system can make the following
important contributions :

(1) Motivation to perform is increased : Receiving feedback about one’s performance

increases the motivation for future performance . Knowledge about how one is doing &
recognition about one’s past success provide the fuel for future accomplishments.

(2) Self-esteem is increased : Receiving feedback about one’s performance fulfils a basic
human need to be recognized & valued at work. This in turn is likely to increase employee’s
self-esteem.

(3) Managers gain insight about subordinates : Direct supervisors & other managers in
charge of the appraisal gain new insights into the person being appraised. Also,
supervisors gain a better understanding of each individual’s contribution to the
organization.

(4) The definitions of job & criteria are clarified : The job of the person being appraised
may be clarified and defined more clearly. In other words, employees gain a better
understanding of the behaviours and results required of their specific position.

(5) Self-insight & development are enhanced : The participants in the system are likely to
develop a better understanding of themselves and of the kind of development activities that
are of value to them as they progress through the organization.

Page | 22
 (6) Administrative actions are more fair & appropriate : Performance management
systems provide valid information about performance that can be used for administrative
actions such as merit increases, promotions and transfer as well as terminations.

(7) Organizational goals are made clear : The goals of the unit and the organisation are
made clear, and the employee understands the link between what she does and
organizational success. PMS can help improve employee acceptance of these wider goals.

(8) Employees become more competent : An obvious contribution is that employee

performance is improved. In addition, there is a solid foundation for helping employees
become more successfully by establishing developmental plans.

1.14 Disadvantages/ Dangers of poorly implemented PM Systems :

(1) Increased turnover : If the process is not seen as fair, employees may become upset
and leave the organization. They can leave physically or with draw psychologically.

(2) Use of misleading information : If a standardized system is not in place, there are
multiple opportunities for fabricating information about an employee’s performance.

(3) Lowered self-esteem : Self-esteem may be lowered if feedback is provided in an

inappropriate and inaccurate way. This in turn can create employee resentment.

(4) Wasted time and money : Performance management systems cost money and quite a
bit of time. These resources are wasted when systems are poorly designed and
implemented.

(5) Damaged relationships : As a consequence of a deficit system, the relationship among

the individuals involved may be damaged, often permanently.

(6) Decreased motivation to perform : Motivation may be lowered for many reasons
including the feeling that superior performance is not translated into meaningful tangible
or intangible rewards.

(7) Employee burnout & job dissatisfaction : When the performance assessment
instrument is not seen as valid and the system is not perceived as fair, employees are likely
to feel increased levels of job burnout & job dissatisfaction.

(8) Increased risk of litigation : Expensive lawsuits may be filed by individuals who feel
they have been appraised unfairly.

Page | 23
1.15 Characteristics of an Ideal PM System:

(1) Strategic congruence: The system should be congruent with the unit and organisation’s
strategy. In other words, individual goals must be aligned with unit and organizational goals.

(2) Thoroughness : The system should be thorough regarding four elements :all employees
should be evaluated, all major job responsibilities should be evaluated, the evaluation should
include performance spanning the entire review period, not just the few weeks or months before
the review and feedback should be given on positive performance aspects as well as those that
are in need of improvement.
(3) Practicality: Systems that are too expensive, time consuming and convoluted will
obviously not be effective. Good, easy-to- use systems are available for managers to help them
make decisions.

(4) Specificity : A good system should be specific: it should provide detailed and concrete
guidance to employees about what is expected of them an how they can meet these e
x p e c t a t i o n s .

(5) Identification of effective & ineffective performance : The performance management system
should provide information that allows for the identification of effective and in effective
performance.

(6) Reliability : A good system should include measures of performance that are consistent and
free of error. For example, if two supervisors provided ratings of the same employee and
performance dimensions, rating should be similar.

(7) Validity : The measures of performance should also be valid. In this context, validity refers
to the fact that the measures include all relevant performance facets and do not include irrelevant
performance facets.

1.16 Performance Review :

Everybody who works for you needs to know where they stand and how they are doing
compared to your expectations of them. Many companies have formal review systems to
let employees know how their performances stack up. Reviews may be conducted as often
as every three months, but annual reviews are most popular.

Each review should go over the goals that were set when the employee started the job or
during the last performance evaluation. Then the review should examine how well the
employee has done toward reaching these goals. The employee should be asked to rate his
or her performance, in addition to relying on objective measurements such as sales figures.
You and the employee should then discuss the desirability of trying to reach goals that
haven't yet been achieved, and you should both set goals for the future.

Page | 24
 But reviews and evaluations are often justifiably viewed as little more than formalities that
accomplish little or nothing in the way of true feedback. To make formal evaluations go
more smoothly, and to eliminate any surprises on the employee's part, give feedback at the
time something occurs to warrant it.

Formal performance reviews are a crucial part of the ongoing dialogue between managers
and their employees. The objectives of the review conversation are to make sure that the
employee and manager share a clear definition of the job, an understanding of performance
expectations for the position, and an assessment of the employee's performance.

Properly designed and realized process of employee’s appraisal is not only the necessary
basis of successful employee performance management, but also provides valuable
information for other human resource management functions. Performance Appraisal is
important because it helps in Performance Feedback, Employee Training and
Development Decisions, Validation of Selection process, Promotions & Transfers, Layoff
Decisions, Compensation Decisions, Human Resource Planning (HRP), Career
Development and Develop Interpersonal Relationship.

1.17 Tips for Successful Performance Review :

 Frequent Conversations Prepare Managers and Employees for the Annual
Review.

 Keep Job/Position Descriptions Up-to-Date.

 Document the Conversations.

 Create a Reciprocal Process.

 Start with a Self-Appraisal.

1.18 Successful Performance Review Conversation Needs :

 Careful planning by manager and employee.
 Constructive communication.
 Collaborative attitude.
 Openness to giving and receiving feedback.
 Commitment to "continuous improvement".
 High level of accountability—good follow-through on commitments made during
conversation.
 Openness to redefining or readjusting goals as needed (for the department and/or
for the employee).

Page | 25
1.19 Different Techniques of Performance Review :

Sr. Technique Key Idea Advantages Disadvantages

No.

Ranking employees from best to 1. Fastest. 1. Less objective.

worst on a particular trait, 2. Transparent. 2. Morale problems. who
1. Ranking Method choosing highest then lowest, 3. Cost effective. are not rated at or near the
until all ranked 4. Simple & easy to use. top of the list.
3. Suitable for small
workforce.

A scale that lists a number of 1. Simple. 1. Rating may be

traits & a range of performance 2. Easily Constructed. subjective.
Graphic Rating for each, the employee is then 3. Easy to use. 2. Each characteristics is

Page | 26
2. Scale rated by identifying the best
score that best describes his or
her performance for each trait.
Keeping a record of
uncommonly good or
undesirable examples of
3. Critical Incident employee’s work related
behaviour & reviewing it with
the employee at predetermined
times.
Evaluator writes an explanation
about employee’s strength &
weakness points, previous
4. Narrative Essays performance, positional &
suggestion for his or her
improvement at the end of
evaluation time
Employees are evaluated how
well they accomplished a
specific set of objectives that
5. Management by have been determined to
Objectives critical in the successful
completion of job.
BARS combines elements from
critical incident & graphic
rating scale approach. The
6. Behaviorally supervisors rates employee’s
Anchored Rating according items on a numerical
Scale (BARS) scale.
Employees are evaluated over a
4.Reduce the personal equally important in
bias. evaluation of the
employee’s performance.
1. Easy & economic to 1. Time consuming &
develop & administer. laborious to summarize &
2. Based on direct analyze the data.
observations. 2.Difficult to convince
3. It is time tested & people to share their
provides more face time. critical incidents through a
survey.
1. Report actually shows 1. Time consuming.
employee’s performance. 2. Supervisor may write a
2. Can cover all factors. biased essay.
3. Examples are given. 3. Effective writers are
4. Provides feedback. very difficult to find.
1. Easy to implement & 1. Difficult to employees
measure. agree on goals.
2. Employee motivated 2. Misses intangibles like
as he is aware of honesty, integrity,
expected roles & quality etc.
accountability. 3. Time consuming,
3. Facilitates employee complicated, lengthy &
counseling & guidance. expensive.
1. Job behavior describe 1. Scale independence may
employee performance in not be valid/reliable.
a better way. 2. Behaviors are activity
2. More objective. oriented rather than result
3. More acceptances due oriented.
to participation of 3.Very time consuming for
managers & employees. generating BARS.
4. Each job require
creating separate BARS
scale.
1. Concepts are simple. 1. Expensive & difficult to
Page | 28
 period of time; say one or three
days, by observing their
7. Assessment behaviors across a series of
Centers selected exercises or work
samples.
It relies on the input of an
employee’s, superior,
colleagues, subordinates,
sometimes customers, suppliers
and/or spouses.
8. 360 Degree
2. Highly flexible manage.
methodology. 2. Requires a large staff.
3. Helps in selection & 3. Requires a great deal of
promotion decisions and time.
for diagnosing employee 4. Only a limited no. of
development needs. people can be processed at
4. Exercise is hard to a time.
fake.
1. Excellent employee 1. Time consuming & very
development tool. costly.
2. Accurate, reliable & 2. Sensitive to
credible system. organization & national
3. Legally more culture.
defensible 3. May damage
4. More objective being self-esteem of employees
multi-rate system. if the feedback is brutal.
4.Difficult to implement in
cross-functional teams.
5.Prone to political &
social games played by
people.
CHAPTER- 2
Page | 29
COMPANY
PROFILE

Page | 30
CHAPTER -3
REVIEW OF
LITERATURE

Page | 31
 CHAPTER -3
REVIEW OF LITERATURE

 Study by DDI (1997), Performance Management Practices is the most recent

performance management study. It proves that successful organizations realize that
performance management is a critical business tool in translating strategy into results.
The CEOs in the majority of the 88 Organizations surveyed say their performance
management system drives the key factors associated with both business and cultural
strategies. Performance management systems directly influence five critical
organizational outcomes : Financial performance, productivity, product or service
quality, customer satisfaction & employee job satisfaction. When performance
management systems are flexible & linked to strategic goals, organization are more likely
to see improvement in the five critical areas : team objectives, non- manager training,
appraiser accountability & links to quality management are the specific practices most
strongly associated with positive outcomes.

 Watkins (2007) puts it, most public sector business organization like those in Delta State
of Nigeria have not given adequate attention to performance management review as a
tool for improving performance even when recent studies suggest that performance
review benefit organizational performance in both private & public sectors. Performance
management has been described as a systematic approach to the management of people,
using performance goal measurement, feedback and recognition as a means of
motivating them to realize their maximum potentials. Public sector business
organizations that strive to deliver quality services at competitive prices are those that
embrace various performance review practices to assess their employee performance &
motivate them with incentives.

 Robert & Angelo (2001), The success or failure of public sector business organizations
depends on the ability to attract, develop, retain, empower & reward a diverse array of
appropriately skilled people and is the key to improving organizational performance.
The explanation therefore is that human resource managers in the public sector business
concerns should embark on periodic performance management reviews of their
employees in order to re-position their business organizations though owned by
government for better performance & improved competitiveness.

Page | 32
  Study by Wm. Schiemann & Associates (1996), this national survey of cross-section of
executives concluded that measurement-managed companies- especially those that
measure employee performance- outperform those that downplay measurement.

These research studied 122 organizations making between $27 million and $50 billion in
sales. A higher percentage of measurement-managed companies were identified as
industry leaders, as financially in the top third of their industry, and as successfully
managing their change efforts. The research examined performance in six strategic
performance areas deemed crucial to long-term success : Financial performance,
operating efficiency, customer satisfaction, employee performance, innovation/change,
community/environment. The findings revealed that the biggest measurement area
separating successful from less successful firms is employee measurement. Successful
industry leaders simply do a better job than non-leaders at measuring their workforce,
which the study say is where real change won or lost.

 Study by Hewitt Associates (1994), The impact of performance management on

organizational success substantiates that performance management system can have a
significant impact on financial performance and productivity. The study used the Boston
Consulting Group/HOLT financial database to track the financial performance of 437
publically held U.S. companies from 1990 through 1992.The study results showed that:
Companies with performance programs have higher profits, better cash flows, stronger
stock market performance and a greater stock value than companies without
performance management. Productivity in firms without performance management is
significantly below the industry average, while productivity in firms with performance
management is on par with the industry average. Companies with performance
management significantly improved their financial performance and productivity after
implementing performance management.

 Williams (2002) identifies globalization, increased competition and the increasingly

individualistic rather than collective employee relationship as some of the major drivers
contributing to the increased visibility of performance management systems (PMS).
Faced with fast moving and competitive environments, companies are constantly

Page | 33
 searching for unique ways in which to differentiate themselves from their competition
and are increasingly looking to their “human resources” to provide this differentiation.
This has led to much interest in the performance of employees, or more importantly,
how to get the most out of employees in order to sustain competitive success.

 The study by Eleni T. Stavrou, Christakis Charalambous and Stelios Spiliotis utilizes
an innovative research methodology (kohonen’s Self-organizing Maps (SOMs), Neural
Network Analysis) to explore the connection between human resource management as
a source of competitive advantage and perceived organizational performance in the
European Union’s private and public sectors. While practices in these two sectors did
not differ significantly, three diverse but overlapping HRM models did emerge, each of
which involved a different set of EU member states.
Training & Development practices were strongly related to
performance in all three models and communication
practices in two. These results show the usefulness of an innovative technique when
applied to research so far conducted through traditional methodologies, and brings to
the surface questions about the universal applicability of the widely accepted relationship
between superior HRM and superior business Performance.

 Sharmistha Bhattacharjee and Santoshi Sengupta (2011) studied that employees are
the most valuable and dynamic assets of an organization. For achieving the strategic
objective of sustained & speedy growth, managing human resource has been featured as
a vital requirement in all organizations. It is a challenge to monitor the entire cycle of
defining the competence requirement of the business, accessing existing competence in
the organization and bridging the gap between the two. HR practices are crucial for any
organization. Every phase from recruitment to exit interview is under the HR
department. It is a challenge to monitor the entire cycle of defining the competence
requirement of the business, accessing existing competence in the organization and
bridging the gap between the two. In a manufacturing industry, with every technical
advancement business opportunities can show up. These opportunities can be converted
into business success only with performance alignment and competence management.







Page | 34
 
 The research paper of Mohammad Tanvi Newaz (2012) provides an analysis and
evaluation of the role of performance management system in shaping psychological
contract at Sainsbury’s UK by a case study approach. Sainsbury’s has adopted the
performance management system to utilize the potential of their employees but result of
data analysis indicates that line managers have failed to achieve the objective of the
performance management system. This research analysis reveals how the line managers
of Sainsbury’s focus on short term goal i.e. financial success instead of long term goal
i.e. employee development. However, the performance management system of
Sainsbury’s comprises all the necessary components to play a significant role in
developing employees as well as facilitating the formation of a positive psychological
contract. But partial and inattentive implementation of the system makes the situation
unfavourable for the psychological contract to develop at Sainsbury’s UK.

 The article of Javed Iqbal , Samina Naz, Mahnaz Aslam, Saba Arshad (2012), offers
a survey of selected literature on performance management. Purpose is to identify key
themes that govern the topic in the contemporary turbulent economic and business
environment where employees are more uncertain that anything else because every day
they face downsizing, volunteer retirement and “golden hand shakes’’ to get rid of them.
Under these circumstances it is worthwhile to look into the ways by which they can be
motivated to work under hard conditions. It is found that performance management
processes, evaluation, its impact and factors are key themes. Researchers apply popular
research approaches for data collection analysis and communication.

 The paper of Akua Asantewaa Aforo and Kodjo Asafo-Adjei Antwi (2012) shows that
academic libraries have a performance appraisal system comprising setting of goals,
feedback, participation and incentives for performance. This study aimed at evaluating
the performance appraisal system in the KNUST and GIMPA libraries in Ghana and give
recommendations on improving the system. Questionnaires were randomly administered
to 46 staff members of these libraries.

 The aim of this study of Akinyele S. T. (2010) was to evaluate the effectiveness of
performance appraisal system at private universities in Nigeria. The focus of the study
was on the administrative staff of Crawford University. The study evaluated the purpose
of performance appraisal in private universities and identifies relevant factors for
achieving an effective performance appraisal. A cross- sectional survey was selected for
this study because it was easy to undertake compared to longitudinal survey and the
results from the same can be inferred to the larger population. The
Page | 35
 study population was for all the administrative staff of Crawford University. The whole
populations of staff were selected as respondents. A structured questionnaire was used
to collect the data for analysis. The effectiveness of performance appraisal systems in
private universities are only based on training the members of staff involved in the rating/
appraising process and are multi- rating systems. Conclusively because the performance
appraisal systems used in private universities are not effective and that they exist just as
a matter of formalities, the private universities cannot measure members of staff
performance, hence making it difficult to achieve the intended human resource
management objective.

 The paper of Al Bento and Regina Bento (2006) proposes and tests a model to explain
three critical outcomes of Performance Management Systems: information quality,
effectiveness, and usefulness of the PMS to managerial decision-making. Drawing from
Organizational Information Processing Theory (OIPT), we examined how those three
outcomes may be influenced by factors that affect OIP requirements (industry, size, and
geographic scope of operations) and by organizational and technological factors that
affect OIP capabilities. Organizational factors included management's decision-making
style and organizational structure. Technological factors included the types of
technology used in the PMS (ERP; specialized tools such as EIS and DSS; and generic
tools such as Excel, Access and Lotus Notes), and the degree of use of e-commerce and
Internet technologies.

The study of George Ndemo Ochoti, Elijah Maronga, Stephen Muathe, Robert
Nyamao Nyabwanga, Peter Kibet Ronoh (2012) investigated the multifaceted factors
influencing employee Performance Appraisal System in the Ministry of State for
Provincial Administration, Nyamira District, Kenya. A target population of 76
employees was surveyed. A structured questionnaire was self-administered to the
employees to collect data. Multiple regression analysis technique was used to explain the
nature of the relationship between PAS and the factors that influence it. Results of the
study showed that all the five factors: Implementation process (X1), interpersonal
relationships (X2), rater accuracy (X3), informational factors (X4), and employee attitudes (X5)
had a significant positive relationship with the performance appraisal system (Y). It shows that
if these factors are taken into consideration by the ratees, the raters and the government policy
makers, the PAS can be a good performance management tool.

 The paper of Jawaria Andleeb Qureshi, Asad Shahjehan, Zia-ur-Rehman and Bilal
Afsar (2010) notifies that many organizations install Performance Management
Systems (PMS) formally and informally in their organizations, with the motivation to
achieve better organizational results. In practice, organizations have difficulty in
implementing a performance management system because its different dimensions are

Page | 36
 not taken into considerations enough. This article describes the findings of a comparative
analyses conducted between a standard performance management model and
performance management systems as applied by Local Development Organization
(LDO). Data was collected from 50 employees of the organization with a Cronbach
Alpha (0.935). Results identified barriers to implementation of effective PMS, also
recommendations and viable solutions are presented.

 Research of Leena Toppo, Twinkle Prusty (2012) informs that performance appraisal
and performance management were one of the emerging issues since last decade. Many
organizations have shifted from employee’s performance appraisal system to
employee’s performance management system. This paper has focused to study the
evolution of employee’s performance appraisal system, critics the system suffered and
how the performance management system came to the practice. The main purpose of
this paper is to differentiate these two systems, employee’s performance appraisal and
management system. This paper uses a review of the literature to evaluate the
development of appraisal system and argues the critic areas of appraisal system.
Performance management eliminates the shortcomings of performance appraisal system
to the some extent.

There are, however, several models which have attempted to explain how HR policies
have an impact on firm performance, one such model adopted as a conceptual
framework in this paper is the “People Process Framework” (Gratton 1996). This
framework focuses on individual performance linked to organizational performance and
is designed to deliver short term business objectives as well as long term sustainable
success. The model clearly identifies a set of HR practices which have been designed to
link individual effort to the overall objectives of the business and also strikes a balance
between achieving short term goals and preparing the company for its future long term
success. The major focus of the research will be on the processes which contribute to
short term business success, given their direct relevance to PMS and the crucial role of
line managers in their implementation. These short term processes are critical to the
overall success of the business as they provide the foundations to encourage sustained
performance through clear identification of objectives, continuous assessment of
performance against those objectives, reward strategies that emphasize the required
behaviors and the provision of training and skills which will improve performance.
Implemented correctly, these processes should enhance the individuals confidence in
themselves and their company creating an environment where employees “want to”
perform rather than feeling like they
“have to” perform. Long term success is only possible therefore when the short term
processes generate this type of response.

 Whittaker and Marchington (2003) found evidence in their study that line managers
spent very little time on people management issues, preferring instead to concentrate on
financial or business objectives. Hope Hailey et al (2005) report that line managers are
only measured on their technical role and not their people management responsibilities.
The appraisal process is therefore of secondary importance to them and the appraisal is
generally approached with little preparation, training or enthusiasm (Cook and
Crossman 2004, Holt-Larsen and Brewster 2003). To address this,

Page | 37
 Hendry et al (2000) argue that not only should line managers own the performance
management process but that they should be involved in its design, and only by
involving them at this stage will they “buy-in” to the process. Lack of management
“buy-in” can potentially frustrate the whole purpose of a performance management
system, leading to an inability to meet short-term goals as well as failure to address
longer term developmental opportunities (Weeks, 2005).

 Lohr (1981) had stated that even Abraham Taylor (1856-1915) widely regarded as the
father of Scientific Management in his legendary thesis on performance improvement in
organizations had recognized the negative influences of groups on performance and
sought to break-up informal group activities through spatial and work-flow designs and
individual piece rate systems of pay. Taylor had based his management system on
production-line time studies. Instead of relying on traditional work methods, he
analyzed and timed steelworkers’ movements on a series of jobs. Using time study as his
base, he broke each job down into its components and designed the quickest and best
methods of performing each component (Idemobi et al 2010). In this way he established
how much workers should be able to do with the equipment and materials at hand. He
also encouraged employers to pay more productive workers at a higher rate than others,
using a “scientifically correct” rate that would benefit both company and worker. Thus,
workers were urged to surpass their previous performance standards to earn more pay.
Taylor called his plan the differential rate system. Rather than quarrel over profits, both
management and workers should try to increase production and by so doing, he believed,
profits would rise to such an extent that labour and management would no longer have
to fight over them.

 Timmons (1992) had opined that competitiveness is a major issue in foreign

competition, and if a country’s export promotion drive is to yield the desired results,
competitiveness in particular must be optimized. He further posited that the declining
productivity in business organizations which leads to un-competitiveness is a major
cause of monetary problems and inflation, and governments obviously should be
interested in the level of competitiveness arising from productivity improvement.

 Although the use of goal setting is primarily used to improve performance, there are
other benefits such as: to clarify expectations, to improve job satisfaction, to enhance
self-esteem through attainment of goals and to improve quality of work (Locke and
Latham 1984).Appraisal provides the mechanism to provide effective feedback on
achievement of which is an important factor in improving performance (Williams 2002).

 Fletcher (2004) describes it as a “high risk activity” for managers, given the many
pitfalls associated with it and Newton and Findlay (1996) highlight the fallibility of
appraisals as they are open to manager manipulation. Despite the criticisms, the use of
performance appraisal is widespread and perceived to be an effective part of a
performance management system (CIPD 2005a).

 Many organizations have looked to improve performance by linking it to pay;

performance related pay (PRP) can take many different forms (Williams 2002) and the
Page | 38
 type of reward and how it is linked to performance management varies by organization
(IDS 2003). There are many differing views on the effectiveness of PRP (Williams 2002)
and whether or not it contributes to improved performance. It has been argued that PRP
is a process of control, rather than contributing to real development (Hendry et al 2000).

 (Gratton 1996)There has been a change in scope of the appraisal process in recent years,
with an increasing focus on employee development, as more and more businesses focus
on how targets are achieved rather than just the achievement itself. This has led to a
combination of both objectives (outputs) and competencies (inputs, Taylor, 2005) and
the recognition that personal development planning (PDPs) are a fundamental part of a
PMS. By offering employees the opportunity of enhancing their skills through training,
levels of self-confidence will improve and performance will be enhanced (White 1999).

 Willcoxson, (2000) High performance is considered to be achievable in different ways,

two of which are the humanistic and rational process perspectives. According to
proponents of the humanistic perspective, high performance is attributed to investment
in the ‘softer’ people aspects of organizational life. Through valuing, trusting,
developing and empowering employees, encouraging cooperative modes of operating
and stakeholder engagement, organizations can achieve high performance. Emphasis is
also placed on organizational culture as a key element of success or failure (Willcoxson,
2000).

 In essence the productivity of an organization is jointly determined by the efficiency with

which the organization utilizes several available factors of production which invariably
are scarce relative to the demand for them. As it were therefore, one can conceive of an
equilibrium condition in productivity terms within given and stated constraints in an
organization. Like the price scenario, several factors operate to make it difficult to
optimize the use of human and other resources in the organization such that the
equilibrium condition is not achieved easily. Ouchi (1981) clearly pointed this out when
he addressed the issue of what he labelled “the organizational dilemma” meaning that the
organization’s search for rationality (technological determinism) and the human beings
search for happiness (as in the Doctrine of Hedonism).

 Robert and Angelo, (2001) The success or failure of public sector business
organizations hinges on the ability to attract, develop, retain, empower and reward a
diverse array of appropriately skilled people and is the key to improving organizational
performance The explanation therefore is that human resource managers in the public
sector business concerns should embark on periodic performance management reviews
of their employees in order to re-position their business organizations though owned by
government for better performance and improved competitiveness.

Page | 39
 

 Sung & Ashton,(2005)It is the business strategy that gives the high performance
working practices their dynamism and provides the framework against which
performance can be evaluated and improved. Thus, the concern is not with the specific
type or number of practices employed, but the way they are linked to organizational
performance.

 Results from the Watson Wyatt Worldwide (2004) study suggest that PM systems
should recognize high performers and confront poor performers as soon as possible,
eliminate paper forms, and utilize a user-friendly automation. Researchers from Watson
Wyatt Worldwide also assert that if PM systems are designed and implemented properly,
they can lead to positive impact on individual performance as well as better financial
results for the organization (i.e., improvement in shareholder value).

 A common weakness in the implementation of performance management systems noted

by de Waal (2004) is the focus only on the “structural side”, that is, “the structure that
needs to be in place to be able to use performance management such as critical success
factors & key performance indicators, possibly supported by a balance scorecard”. De
Waal (2004) argues that successful implementation also requires attention to the
“behavioral side” that is, the necessary performance-driven behavior required from
organizational members to achieve the desired objectives. According to de Waal (2004),
appropriate behaviors, including attitudes and beliefs, depend on a range of factors
including management style, the perceived relevance of performance indicators, the
degree to which employees feel they can influence change, and the quality of
communication within the organization.
(Source : http://eprints.jcu.edu.au/26275/ ).

 A study conducted by McDonald and Shield of Hewitt Associates found that companies
that used performance management programs had greater profits, better cash flow,
stronger stock market performance and greater stock value than companies that did not.
Not only performance management improved financial performance, but it also improved
productivity; companies with such programs had higher sales per employees (Rheem,
1995). Nonetheless, performance management has been mistaken as performance evaluation.
As a matter of fact, both performance management and performance evaluation are related but
they are not exactly the same concept. Performance management is a systematic process for
improving organizational performance by developing the performance of individuals and
teams; it is a mean of getting better results from the organization, teams, and individuals by
understanding and managing performance within an agreed framework of planned goals,
standards, and competence requirement

(Armstrong, 2006). While performance evaluation is a process of assess and rate past
performance of individuals or groups (Oct 2004). Performance evaluation is just a part of
performance management.

Page | 40
Page | 41
Page | 42
 CHAPTER-4
RESEARCH
METHODOLOGY

Page | 43
 CHAPTER-4
RESEARCH METHODOLOGY
4.1 TITLE OF THE RESEARCH STUDY :

“An Analytical Study of Performance Management System as a tool for Effective performance :
A study of Selected employees in AAKAR Architects Private Limited”.

4.2 DURATION OF THE RESEARCH STUDY :

This study was carried out for duration of 2 month.

4.3 BASIC TERMS OF PRESENT RESEARCH STUDY :

Performance : Performance means both behaviours and results. Behaviours emanate from

the performer and transform performance from abstraction to action. Not

just the instruments for results, behaviours are also outcomes in their own

right- the product of metal and physical effort applied to tasks- and can be

judged apart from results (Brumbrach,1988).

Management :Management: is the art of getting things done through and with people

in formally organized group (According to Harold Koontz).

System : An organized, purposeful structure that consists of interrelated and

interdependent elements (components, entities, factors, members, parts

etc.). These elements continually influence one another (directly or

indirectly) to maintain their activity and the existence of the system, in

order to achieve the goal of the system.(www.businessdictonary.com)

4.4 RATIONALE OF THE RESEARCH STUDY :

When it comes to performance, employee’s performance is one the main in organisational

success. Therefore, it is an need of the hour where organizational has to make very specific
efforts for improving employee’s performance to optimally utilize knowledge and skills of
their employees. The proposed research study also would report on employee’s feedback as
well as expectations & experiences with regard to selected performance management

Page | 44
 system. It also list out suggestions for an overall improvement for employees effective
performance. The research study would make an attempt to find the impact of performance
management system on effective employee’s performance.

4.5 SCOPE & COVERAGE OF RESEARCH STUDY :

The research was conducted in AAKAR Architects Private Limited. The research study was
focus on performance management system in AAKAR Architects private limited. It also
measure & evaluate the effective performance on the basis of employee’s overall
awareness, expectations & satisfaction or dissatisfaction as an outcome of offering various
kinds of incentives & employee’s morale as offered by the performance management system
of AAKAR Architects (P) Ltd.
4.6 OBJECTIVES OF RESEARCH STUDY :

The objectives of the study are.......

 To empirically assess performance management as a tool for improving

performance.

 To study the process and methods of existing performance management systems.

 To identify the effects of performance review techniques on employee’s

performance.

 To study of performance review techniques; employee’s performance; performance

incentives and employee’s morale.

4.7 RESEARCH DESIGN :

The research design of this study considering its objectives, scope & coverage was
exploratory as well as descriptive in nature.

4.8 SOURCES OF INFORMATION :

4.8.1 PRIMARY DATA :

The primary data has been obtained from the selected employees & senior executive
at various departments of AAKAR Architects Private Limited through circulation of
the structured non-disguised questionnaire.
Page | 45
 4.8.2 SECONDARY DATA :

The secondary data has been obtained from published as well as unpublished literature
on the topic and from Books, Journals, News Papers, Research Articles, Thesis,
Websites, Magazines etc.

4.9 SAMPLING DECISIONS:

4.9.1 SAMPLE SIZE:

Appropriate number of sample size (i.e. 30) was put to used for the purpose of
collecting primary data from the selected employees of different departments of the
AAKAR Architects Private Limited.

4.9.2 SAMPLING METHOD:

Non-probability sampling design based on convenient sampling method has been used
for this research study.

4.9.3 SAMPLING FRAME :

The representative sampling units in appropriate & justified size has been conveniently
drawn from amongst different employees across various heterogeneous socio-
economic age groups, occupations, educational qualifications,gender who have availed
incentives & employee’s morale as offered by the performance management system
of the AAKAR Architects Private Limited.

4.9.4 RESEARCH INSTRUMENT :

A structured non-disguised questionnaire has been prepared to get the relevant

information from the respondents. The questionnaire consists of variety of questions
presented to the respondents for their responses. The researcher has been used
questionnaire with the support & cooperation of the selected respondents of various
departments at managerial and non-managerial level of AAKAR Architects Private
Limited.

4.9.5 SAMPLING MEDIA :

Sampling media has been in the form of Filling up of questionnaire.

Page | 46
4.10 DATA COLLECTION, ANALYSIS & INTERPRETATION :

The collected information and primary data has been subjected to data analysis and
interpretation, content analysis and statistical analysis. The collected primary data has been
pre-coded considering the designing of the structured non-disguised questionnaire. The
primary data has been scrutinized, edited and validated and thereafter it has been presented
in the forms of tables, charts, graphs and diagrams as the case may be.

4.11 SIGNIFICANCE OF THE RESEARCH STUDY :

This research study has covered the performance management system which help to find
effective performance of the employees. The employees has been aware of the
performance standard of the company. It has been create awareness of performance
management system to improve effective performance and also to the different criteria of
the AAKAR Architects Private Limited. This research study also assists to AAKAR
Architects Private Limited authorities in the designing of the performance management
system for improving performance. Organisation will be able to develop performance
review techniques to control the performance of the employees.

4.12 LIMITATIONS OF THE RESEARCH STUDY :

 The researcher has been use selected statistical tools which are relevant to
research study & thus having limited generalizability.

 The employees were reluctant to give correct information.

 The investigator intended to cover only few areas of performance management

system.

 The sample size selected by the researcher is limited.

 The time factor in collecting the responses as in conducting the research study has
limited factor.
 In lieu of the variation in the cooperation and involvement of selected employees at
different departments of AAKAR Architects Private Limited, there may be
inaccuracy of the responses given by them.

Page | 47
 CHAPTER–5
DATA ANALYSIS &
INTERPRETATIONS

Page | 48
 CHAPTER – 5
DATA ANALYSIS & INTERPRETAION
Section A : General Profile of Respondents:
(1) Gender :

TABLE: 1
Sr. Gender Frequency Percentage
No. (%)
1. Male 12 40
2. Female 18 60
Total 30 100

Interpretation : From the above table, 40% of employees lies under the male
category and 60% employees lies under the Female category.

Majority of the employees lies under the Male category.

(2) Age :

TABLE: 2
Sr. No Age Frequency Percentage (%)
1 20-25 8 26
2 26-35 12 40
3 36-50 10 34

Total 30 100%

Interpretation : The chart depicts that :

26% respondents tend to age between 26-35,
40% respondents tend to age between 36-50,
34% respondents tend to age between 20-25 and;

Majority of the respondents tend to age between 26-35.

Page | 49
(3) Qualification :

TABLE: 3
Sr. No Educational Qualification Frequency Percentage (%)
1 Under Graduate 3 10
2 Graduate 10 34
3 Post Graduate 6 20
4 Diploma 4 14
5 Others 7 22
Total 30 100%

Interpretation : The chart depicts that :

10% respondents are Graduate,
34% respondents are others,
20% respondents are Post Graduate,
14% respondents are Diploma and;
22 % respondents are Under Graduate.

Majority respondents are Graduate.

(4) Job Experience :

TABLE: 4
Sr. No Job Experience Frequency Percentage (%)
1 Less than one year 3 10
2 2-10 years 23 76
3 More than 10 years 4 14
Total 30 100%

Interpretation : From the above table, 10% of the respondents have work
experience of 2-10 years, 76% of the respondents have work experience of more
than 10 years, and 14% of the respondents have work experience of less than one
year.

Majority of the employees in the organization have a work experience of 1-5

years.

Section B : Nature of Current Performance Management System :

(1) Do your Organization operate formal performance management system?
 TABLE: 5
Sr. No. Response Frequency Percentage (%)
1 Yes 22 74
2 No 08 26
Total 30 100

Interpretation : From the above table, 74% respondents are in favour of

organization operate formal performance management system,26% respondents are
not in favour of organization operate in formal performance management system.

(2) If yes, which of the following groups of employees do this processes apply to?

TABLE: 6
Sr. No. Levels Frequency

1 Senior Managers 2
2 Other Managers/ Team leaders 6
3 Technical/ clerical 15
4 Professionals 4
5 Manual/ Blue-collar 3
Total 30
Interpretation : From the above table, out of 30 respondents, 15 respondents from Technical/ clerical
employees do this process applied,6 respondents from other
 managers/ team leaders do this process applied and remaining 02 respondents (i.e.
senior managers) do this process applied.

Mostly this process applied to Technical/ clerical group of employees.

(3) What are the techniques that are used in your organisation for assessing
performance?

TABLE: 7
Sr. Techniques Frequency Percentage (%)
No.
1 Observation 6 20
2 Assessment & Development Centre 4 14
3 Checklist 20 66
Total 30 100

Interpretation : From the above table, 20% respondents are in favour of

checklist techniques that are used in organisation for assessing performance,14%
respondents are in favour of observation techniques that are used in organisation
for assessing performance, and 66% respondents are in favour of assessment &
development centres techniques that are used in organisation for assessing
performance.

Majority respondents believed in Checklist techniques that are used in

organisation for assessing performance.

(4) Please indicate which of the following methods of performance appraisal from a
part of your system?

TABLE: 8
Sr. No. Methods Frequency Percentage (%)
1 Written Essay Method 15 50
2 Graphical Rating Scale 08 7
3 Ranking Method 04 7
4 360 Degree Appraisal 00 00
5 Self Appraisal 08 3
6 Critical Incident 00 00
Assessment

Total 30 100

Interpretation : From the above table, out of 30 respondents, 15 respondents that

are believed in Written essay method of performance appraisal from a part of system,
8 respondents are believed in graphical rating scale of performance appraisal from a
part of system, 4 respondents are believed in ranking method of performance appraisal
 from a part of system and; 8 respondents are believed in self-appraisal of performance
appraisal from a part of system. None of the respondents are believed in 360 degree
appraisal & critical incident assessment of performance appraisal from a part of
system.

Majority of respondents are believed in Written essay method of performance

appraisal from a part of system.

(5) Please rate your satisfaction with the following part of your current performance
management system :

1. Performance Planning/ Goal Setting :

TABLE: 9

Sr. No Particulars Frequency Percentage (%)

1 Very Satisfied 21 70
2 Satisfied 09 30
3 Neutral 00 00
4 Unsatisfied 00 00
5 Very Unsatisfied 00 00
Total 30 100%
Interpretation : From the above table, 70% respondents are very satisfied about
performance planning/ goal setting of current performance management system, 30%
respondents are satisfied about performance planning/goal setting of current performance
management system.

2. Performance Evaluation :

TABLE: 10

Page | 64

Sr. No Particulars Frequency Percentage (%)

1 Very Satisfied 21 30
2 Satisfied 00 00
3 Neutral 00 00
4 Unsatisfied 09 30
5 Very Unsatisfied 00 00
Total 30 100%
Interpretation : From the above table, 70% respondents are very satisfied about
performance evaluation of current performance management system, 10% respondents are
unsatisfied about performance evaluation of current performance management system.

3. Development Planning :

TABLE: 11

Sr. No Particulars Frequency Percentage (%)

1 Very Satisfied 24 80
2 Satisfied 02 7
3 Neutral 00 00
4 Unsatisfied 04 13
5 Very Unsatisfied 00 00
Total 30 100%

Page | 65
Interpretation : From the above table, 80% respondents are very satisfied about
development planning of current performance management system,7% respondents are
satisfied about development planning of current performance management system, 13%
respondents are unsatisfied about development planning of current performance
management system.

Majority respondents are very satisfied about development planning of current

performance management system

4. 360 Degree Feedback :

TABLE: 12

Sr. No Particulars Frequency Percentage (%)

1 Very Satisfied 16 54
2 Satisfied 04 14
3 Neutral 05 16
4 Unsatisfied 05 16
5 Very Unsatisfied 00 00
Total 30 100%

Interpretation : From the above table, 54% respondents are very satisfied about 360
degree feedback of current performance management system, 14% respondents are
satisfied about 360 degree feedback of current performance management system, 16%
respondents are neutral about 360 degree feedback of current performance management
system.

Majority of respondents are very satisfied about 360 degree feedback of current
performance management system.

5. Coaching &/or Mentoring :

TABLE: 13

Sr. No Particulars Frequency Percentage (%)

1 Very Satisfied 22 73
2 Satisfied 00 00
3 Neutral 08 27
4 Unsatisfied 00 00
5 Very Unsatisfied 00 00
Total 30 100%

Page | 66
Interpretation: From the above table, 73% respondents are very satisfied about coaching
& mentoring of current performance management system,27% respondents are neutral
about coaching & mentoring of current performance management system.

Majority respondents are very satisfied about coaching & mentoring of current
performance management system.

6. Training:

TABLE: 14

Sr. No Particulars Frequency Percentage (%)

1 Very Satisfied 22 73
2 Satisfied 00 00
3 Neutral 00 00
4 Unsatisfied 02 7
5 Very Unsatisfied 06 20
Total 30 100%

Page | 67
Interpretation : From the above table, 73% respondents are very satisfied about training
of current performance management system,7% respondents are very unsatisfied about
training of current performance management system, 20% respondents are unsatisfied
about training of current performance management system.

Majority respondents are very satisfied about training of current PMS.

7. Leadership Development :

TABLE: 15

Sr. No Particulars Frequency Percentage (%)

1 Very Satisfied 22 73
2 Satisfied 02 7
3 Neutral 00 00
4 Unsatisfied 02 7
5 Very Unsatisfied 04 13
Total 30 100%

Interpretation : From the above table, 73% respondents are very satisfied about
leadership development of current performance management system, 7% respondents
are very unsatisfied about leadership development of current performance management
system, 7% respondents are satisfied and 13 % respondents are unsatisfied about
leadership development of current performance management system.

Majority respondents are very satisfied about leadership development of current

performance management system.

8. Rewards :

TABLE: 16

Sr. No Particulars Frequency Percentage (%)

1 Very Satisfied 18 60
2 Satisfied 04 13
3 Neutral 00 00
4 Unsatisfied 06 20
5 Very Unsatisfied 02 7
Total 30 100%

Page | 68
Interpretation : From the above table, 60% respondents are very satisfied about rewards
of current performance management system, 13% respondents are satisfied about rewards
of current performance management system, 20 % respondents are unsatisfied about
rewards of current performance management system, 7% respondents are very unsatisfied
about rewards of current performance management system.

Majority of respondents are very satisfied about rewards of current PMS.

9. Discipline :

TABLE: 17

Sr. No Particulars Frequency Percentage (%)

1 Very Satisfied 18 60
2 Satisfied 05 17
3 Neutral 00 00
4 Unsatisfied 05 17
5 Very Unsatisfied 02 6
Total 30 100%

Interpretation : From the above table,60% respondents are very satisfied about
discipline of current PMS,17% respondents are satisfied about discipline of current
performance management system, 17% respondents are unsatisfied about discipline of
current performance management system,6% respondents are very unsatisfied about
discipline of current performance management system.

Majority of respondents are very satisfied about discipline of current PMS.

10.Effectiveness of Current PMS :

TABLE: 18

Sr. No Particulars Frequency Percentage (%)

1 Very Satisfied 24 80
2 Satisfied 00 00
3 Neutral 00 00
4 Unsatisfied 02 7
5 Very Unsatisfied 04 13
Total 30 100%

Page | 69
 Interpretation : From the above table, 80% respondents are very satisfied about
effectiveness of current PMS, 7% respondents are unsatisfied about effectiveness of
current PMS, 13% respondents are very unsatisfied about effectiveness of current PMS.

Majority of respondents are very satisfied about effectiveness of current PMS.

(6) What are the major elements of your business strategy at present? (give rank in order of
importance, with one being most importance).

TABLE: 19
Ran Business Strategy Frequenc
k y
1 Increase Productivity 40
2 Increase Efficiency 50
3 Improve Quality 42
4 Reduce production time 50
5 Expand Market 42
6 Reduce cost 42

Interpretation : From the above table, 40 respondents give rank 1st to the Increase
Productivity, 50 respondents give rank 2nd to the Increase Efficiency,42 respondents give
rank 3rd to the improve quality, 50 respondents give rank 4th to the reduce production time,
42 respondents give rank 5th to the expand market, 42 respondents give rank 6th to the
reduce cost.

Increase productivity is major elements of business strategy at present.

(7) Are you believe the current performance management system improving
performance?

TABLE: 20
Response Frequency Percentage (%)
Yes 25 84
No 05 16
Total 30 100

Page | 70
Interpretation : From the above table, 84% respondents are believed the current performance
management system improving performance, 16% respondents are believed the current
performance management system not improving performance.

Majority of them are believed the current PMS improving performance.

Section C: Perception of HR Professionals about PMS :

(1) Performance management helps me to motivate my team:

TABLE: 21
Particulars Frequency Percentage (%)
Strongly Agree 02 100
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 00 00
Total 02 100

Interpretation : From the above table, all HR professionals are strongly agree with PM
helps to them motivate team.

(2) Performance management helps me decide what to pay members of my teams :

TABLE: 22
Particulars Frequency Percentage (%)
Strongly Agree 02 100
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 00 00
Total 02 100

Page | 71
Interpretation : From the above table, all HR professionals are strongly agree with PM
helps to decide what to pay members of their teams.

(3) Performance management helps me to develop the skills & capabilities of my

team:

TABLE: 23
Particulars Frequency Percentage (%)
Strongly Agree 02 100
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 00 00
Total 02 100

Interpretation : From the above table, all HR professionals are strongly agree with PM
helps them to develop the skills & capabilities of their team.

(4) Performance management helps my team to perform better :

TABLE: 24
Particulars Frequency Percentage (%)
Strongly Agree 02 100
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 00 00
Total 02 100

Interpretation : From the above table, all HR professionals are strongly agree with PM
helps their team perform better.

(5) Performance management helps me to communicate to my team what is expected

of them:

TABLE: 25
Particulars Frequency Percentage (%)
Strongly Agree 02 100
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 00 00
 Total 02 100

Interpretation : From the above table, all HR professionals are strongly agree with PM
helps them to communicate their team what is expected of them.

(6) I am not comfortable with conducting performance reviews :

TABLE: 26
Particulars Frequency Percentage (%)
Strongly Agree 01 50
Agree 01 50
Neutral 00 00
Disagree 00 00
Strongly Disagree 00 00
Total 02 100

Interpretation: From the above table, It is concluded that 0% HR professional’s perception

strongly disagree about performance review is they are not comfortable with conducting
performance reviews, 50% HR professionals are strongly agree with the comfortable of
conducting performance review, and 50% HR professionals are agree about they are
comfortable with conducting performance review.

Majority are comfortable with conducting performance review.

(7) Performance management is generally only of use to the personnel department, not
individual line managers :

TABLE: 27
Particulars Frequency Percentage (%)
Strongly Agree 00 00
Agree 00 00
Neutral 00 00
Disagree 01 50
Strongly Disagree 01 50
Total 02 100

Interpretation: From the above table,50% of the HR professionals are strongly disagree
about the PM is generally use to the only personnel department, not individual line managers
and 50% of HR professionals are disagree about the PM is use to only personnel department,
not individual line managers.
It is here concluded that majority of HR professionals are believed PM is use to not only to
the personnel department but also to the individual line managers.
(8) The information generated from performance reviews is unproductive & of no
value :

TABLE: 28
Particulars Frequency Percentage (%)
Strongly Agree 00 00
Agree 00 00
Neutral 00 00
Disagree 01 50
Strongly Disagree 01 50
Total 02 100

Interpretation : From the above table, 50% HR professionals are disagree about information
generated from performance review is unproductive & of no value, 50% HR professionals are
strongly disagree about information generated from performance review is unproductive & of
no value

Majority are strongly disagree about info. generated from performance review is unproductive
& of no value.

(9) The time I spend on performance reviews could be used more productively
elsewhere :

TABLE: 29
Particulars Frequency Percentage (%)
Strongly Agree 00 00
Agree 02 60
Neutral 00 00
Disagree 00 40
Strongly Disagree 00 00
Total 02 100

Interpretation : From the above table,100% HR professionals are agree about time spend by
them on performance review is more productively elsewhere

The current performance management system works well & does not need to change :

TABLE: 30
Particulars Frequency Percentage (%)
Strongly Agree 02 100
Agree 00 00
Neutral 00 00
 Disagree 00 00
Strongly Disagree 00 00
Total 02 100

Interpretation : The above charts shows that, all HR professionals strongly agree with
current performance management system works well & does not need to change.

(10) I am satisfied that I give consistent & fair rating to members of my team :

TABLE: 31
Particulars Frequency Percentage (%)
Strongly Agree 00 00
Agree 02 100
Neutral 00 00
Disagree 00 00
Strongly Disagree 00 00
Total 02 100

Interpretation : The above chart shows that, all HR professionals are agree with they are
satisfied about they give consistent & fair rating to members of their team.

(11) I am satisfied that performance review techniques use in assessing employee’s

performance more effective :

TABLE: 32
Particulars Frequency Percentage (%)
Strongly Agree 00 00
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 02 100
Total 02 100

Interpretation: The above chart shows that, 100% HR professionals are strongly disagree
with they are satisfied that performance review techniques use in assessing employee’s
performance more effective
Performance review techniques more impact on employee’s performance, employee’s incentive
& morale :

TABLE: 33
Particulars Frequency Percentage (%)
 Strongly Agree 00 00
Agree 02 100
Neutral 00 00
Disagree 00 00
Strongly Disagree 00 00
Total 02 100

Interpretation : From the above table, 100% HR professionals are agree about performance
review techniques more impact on employee’s performance, employee’s incentive & morale,

(12) The documentation associated with performance management is unclear &

unhelpful :

TABLE: 34
Particulars Frequency Percentage (%)
Strongly Agree 00 00
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 02 100
Total 02 100

Interpretation : From the above table,100% HR professionals are strongly disagree about
documentation associated with performance management is unclear & unhelpful

Section D : Perception of Employees/ Individuals :

(1) I have authority to determine my work objectives :

TABLE: 35
Particulars Frequency Percentage (%)
Strongly Agree 21 70
Agree 00 00
Neutral 00 00
Disagree 09 30
Strongly Disagree 00 00
Total 30 100

Interpretation : From the above table, 70% respondents are strongly agree about they have
authority to determine their work objectives , 30% respondents are disagree about they have no
authority to determine their work objectives.

Majority of them have authority to determine their work objectives.

(2) I receive a lot of feedback on my performance :

 TABLE: 36
Particulars Frequency Percentage (%)
Strongly Agree 24 80
Agree 02 6
Neutral 00 00
Disagree 04 14
Strongly Disagree 00 00
Total 30 100

Interpretation : From the above table, 80% respondents are strongly agree for they have
received a lot of feedback on their performance, 6% respondents are agree for they have
received a lot feedback on their performance ;and 14% respondents are disagree for they have
not received a lot of feedback on their performance.

Majority respondents are received a lot feedback on their performance.

(3) The most important thing about my job is the pay:

TABLE: 37
Particulars Frequency Percentage (%)
Strongly Agree 20 67
Agree 02 6
Neutral 00 00
Disagree 00 00
Strongly Disagree 08 27
Total 30 100

Interpretation : The above chart shows that, 67% respondents are strongly agree for the most
important thing about their job is the pay,6% respondents are agree for the most important thing
about their job is the pay and; 27% respondents are strongly disagree for the most important
thing about their job is the pay.

Majority respondents are in favour of the most important thing about their job is the pay.

(4) Hard work is not necessarily recognized or rewarded :

TABLE: 38
Particulars Frequency Percentage (%)
Strongly Agree 05 17
Agree 02 7
Neutral 00 0
Disagree 02 6
Strongly Disagree 21 70
 Total 30 100

Interpretation : The above chart depicts that, 70% respondents are strongly disagree about
hard work is not necessarily recognized or rewarded 7% respondents are disagree; and 6%
respondents are agree and 70% respondents are strongly agree about hard work is not
necessarily recognized or rewarded.

Majority respondents are not in favour of hard work is not necessarily recognized or rewarded.

(5) I fully understand my organization’s business goals & objectives :

TABLE: 39
Particulars Frequency Percentage (%)
Strongly Agree 24 80
Agree 00 00
Neutral 00 00
Disagree 02 7
Strongly Disagree 04 13
Total 30 100

Interpretation : From the above table, 80% respondents are strongly agree about they fully
understand their organization’s business goals & objectives, 7% respondents are disagree and
13% respondents are strongly disagree about they fully understand their organization’s
business goals & objectives.

Majority respondents are fully understand their organization’s business goals & objectives.

(6) My work objectives are unrealistic & difficult to achieve :

TABLE: 40
Particulars Frequency Percentage (%)
Strongly Agree 04 13
Agree 02 7
Neutral 00 00
Disagree 00 00
Strongly Disagree 24 80
Total 30 100
Interpretation : Above chart depicts that, 80% respondents are strongly disagree about their
work objectives are unrealistic & difficult to achieve, 13% respondents are strongly agree and;
7% respondents are agree about their work objectives are unrealistic & difficult to achieve.

Most of the respondents are know their work objectives are not unrealistic & difficult to
achieve.

(7) I have autonomy over the way I perform my work :

TABLE: 41
Particulars Frequency Percentage (%)
Strongly Agree 24 80
Agree 00 00
Neutral 00 00
Disagree 02 4
Strongly Disagree 04 16
Total 30 100

Interpretation : From the above table, 24 respondents are strongly agree for they have
autonomy over the way they perform their work, 02 respondents are disagree; and
04respondents are strongly disagree for they have autonomy over the way they perform their
work.

Majority respondents have autonomy over the way they perform their work.

(8) My organization communicates well :

TABLE: 42
Particulars Frequency Percentage (%)
Strongly Agree 21 70
Agree 02 7
Neutral 00 00
Disagree 07 23
Strongly Disagree 00 00
Total 30 100

Interpretation : From the above table, 70% respondents are strongly agree about their
organization communicates well, 7% respondents are agree ;and 23% respondents are disagree
about that.
Majority of them believed in their organization communicates well.

(9) Performance management helps me to do my job better :

TABLE: 42
Particulars Frequency Percentage (%)
Strongly Agree 24 80
Agree 00 00
Neutral 00 00
Disagree 02 7
Strongly Disagree 04 13
Total 30 100

Interpretation : The above chart depicts that, 80% respondents are strongly agree about
performance management helps them to do their job better, 7% respondents are disagree and;
13% respondents are strongly disagree about performance management helps them to do job
better.

(10) Performance management helps me to develop my skill & potential :

TABLE: 43
Particulars Frequency Percentage (%)
Strongly Agree 24 80
Agree 00 00
Neutral 00 00
Disagree 02 7
Strongly Disagree 04 13
Total 30 100

Interpretation : From the above table,24respondents are strongly agree about performance
management helps them to develop their skill & potential,02 respondents are strongly disagree
and 04 respondents are disagree about performance management helps them to develop their
skill & potential.

(11) I get useful feedback from my performance management review :

TABLE: 44
 Particulars Frequency Percentage (%)
Strongly Agree 18 60
Agree 02 07
Neutral 00 00
Disagree 02 07
Strongly Disagree 08 26
Total 30 100

Interpretation : The above chart shows that, 18 respondents are strongly agree with they get
useful feedback from their performance management review,2 respondents are agree and
another 02 respondents are disagree ; and remaining 08 respondents are strongly disagree with
they get useful feedback from their performance management review.

(12) I am not satisfied with the way my manager/ team leader conducts my
performance review :

TABLE: 45
Particulars Frequency Percentage (%)
Strongly Agree 05 16
Agree 02 7
Neutral 00 0
Disagree 02 7
Strongly Disagree 21 70
Total 30 100
Interpretation : The above chats depicts that, 70% respondents are strongly disagree,7%
respondents are disagree,7% respondents are agree; and 16% respondents are strongly agree
about they are not satisfied with the way their manager/ team leader conduct performance
review.

Majority of them satisfied with the way their manager/ team leader conduct performance review.

(13) Performance management helps me to improving performance :

TABLE: 46
Particulars Frequency Percentage (%)
Strongly Agree 24 80
Agree 00 00
Neutral 00 00
Disagree 02 6
Strongly Disagree 04 14
Total 30 100

Interpretation : From the above table,80% respondents are strongly agree,6% respondents
are disagree and; 14% respondents are strongly disagree about performance management helps
them to improving performance.

Majority respondents are believed performance management helps them to improving

performance.

(14) Assessments of my performance are consistent, fair & unbiased :

 TABLE: 47
Particulars Frequency Percentage (%)
Strongly Agree 00 00
Agree 00 00

Neutral 00 00
Disagree 03 10
Strongly Disagree 27 90
Total 30 100
nterpretation : The above chart depicts that, 90% respondents are strongly disagree and 10
% respondents are disagree about the assessment of their performance are consistent, fair &
unbiased.

Majority respondents are not satisfied with assessments of their performance are consistent,
fair & unbiased.

(15) The system of performance management used here works well & does not need to
change :

TABLE: 48

Particulars Frequency Percentage (%)

Strongly Agree 24 80
Agree 00 00
Neutral 00 00
Disagree 02 7
Strongly Disagree 04 13
Total 30 100
Interpretation : From the above table, 80% respondents are strongly agree, 7% respondents
are disagree and; 13% respondents are strongly disagree about system of performance
management used in organization works well & does not need to change.

Majority respondents are believed in system of performance management works well & not
need to change.

(16) The information disclosed in performance reviews is used sensitively &

productively by the organization :

TABLE: 49
Particulars Frequency Percentage (%)
Strongly Agree 24 80
Agree 00 00
Neutral 00 00
Disagree 02 7
Strongly Disagree 04 13
Total 55 100

Interpretation : The above chart depicts that,80% respondents are strongly agree, 7%
respondents are disagree and; 13% respondents are strongly disagree about the information
disclosed in performance reviews is used sensitively & productively by the organization.

Majority respondents are in favour of information disclosed in performance reviews is used

sensitively & productively by the organization.

(17) Performance management does not help to develop careers, only improve work
performance :

TABLE: 50
Particulars Frequency Percentage (%)
Strongly Agree 01 03
Agree 00 00
Neutral 01 03
Disagree 04 14
Strongly Disagree 24 80
Total 30 100

Page | 84
Interpretation : From the above table,80% respondents are strongly disagree, 14%
respondents are disagree,3% respondents are neutral and; 3% respondents are strongly agree
about performance management does not help to develop careers, only improve work
performance.

Majority respondents are believed that performance management help not only to develop
careers but also improve work performance.

(18) performance management is only use to personnel people :

TABLE: 51
Particulars Frequency Percentage (%)
Strongly Agree 00 00
Agree 02 6
Neutral 07 24
Disagree 00 00
Strongly Disagree 21 70
Total 30 100

Interpretation : The above chart describes that, 70% respondents are strongly disagree,24%
respondents are neutral and; 6% respondents are agree with performance management is only
use to personnel people.

Majority respondents are in favour of performance management not only use to personnel
people.

(19) Performance review techniques more impact on my performance incentives &

morale :

TABLE: 52
Particulars Frequency Percentage (%)
Strongly Agree 24 80
Agree 00 00
Neutral 00 00
Disagree 06 20
Strongly Disagree 00 00
Total 30 100

Page | 85
Interpretation : The above chart shows that, 80% of respondents are strongly agree and 20%
respondents are disagree about performance review techniques more impact on their
performance incentives & morale.

Majority of respondents are think that performance review techniques more impact on their
performance incentives & morale.

(20) Performance management has no value for individuals, only for organization :

TABLE: 53
Particulars Frequency Percentage (%)
Strongly Agree 06 20
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 24 80
Total 30 100

Interpretation : The above chart shows that, 80% respondents are strongly disagree and 20%
respondents are strongly agree with performance management has no value for individuals,
only for organization.

Majority of respondents are believed performance management has value not only to the
organization but also to the individuals also.

(21) I find it difficult to discuss work problems with my line manager :

TABLE: 54
Particulars Frequency Percentage (%)
Strongly Agree 06 20
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 24 80
Total 30 100

Page | 86
Interpretation : From the above table, 80% respondents are strongly disagree and 20%
respondents are strongly agree about they find difficult to discuss work problem with their line
manager.

Majority respondents are find no difficult to discuss work problems with their line manager.

(22) Performance management is a two-way process, with both manager & employee
expressing their views :

TABLE: 55
Particulars Frequency Percentage (%)
Strongly Agree 21 70
Agree 01 3
Neutral 00 00
Disagree 01 3
Strongly Disagree 07 24
Total 30 100

Interpretation : The above table shows that, 70% respondents are strongly agree,3%
respondents are agree, another 3% respondents are disagree ;and 24% respondents are strongly
disagree for performance management is two-way process, with both manager & employee
expressing their views.

Majority respondents are believed that performance management is two-way process, with both
manager & employee expressing their views.

Page | 87
 CHAPTER-6
FINDINGS,
SUGGESTIONS &
CONCLUSIONS

Page | 88
 CHAPTER-6
FINDINGS, SUGGESTIONS & CONCLUSIONS

FINDINGS :
 All respondents have aware about the current performance management system.

 Majority HR professionals told they are comfortable with conducting performance

review, but some of the HR professionals are not feel comfortable with conducting
performance review.

 All HR professionals and majority of respondents told they are satisfied with
current performance management system works well and no need to change.

 Majority of respondents are told the checklist techniques used in organization for
assessing performance.

 Most of the respondents are believe in current performance management system

improving their performance.

 Majority of HR professional are not satisfied that performance review techniques

use in assessing employee’s performance more effective.

 Some HR professionals are told that performance review techniques more impact
on employee’s performance, employee’s incentive & morale, but some of them are
not agree with that.

 Most of respondents told that increase productivity is major elements of business

strategy at present.

 Very Most of the respondents told that performance management help to improving
their performance.

Page | 89
 All HR professional are told that they are some of the extent satisfied that they
give consistent & fair ratings to members of their team.

RECOMMENDATIONS :

 Employees do not have enough knowledge about the performance

management system and performance review techniques that are used in
assessing their performance.

 HR professionals of the organization should apply strategic & integrative

approach to performance management.

 HR professionals should communicate well and involve the employees

during the performance management reviews. This will create a climate in
which a continuing dialogue between managers & members of their teams
takes place to define expectations and share information, mission, values and
objectives.

 After performance reviews, the employee’s should be rewarded with

incentives that will be commensurate with their efforts. This will a long way
in boosting the morale of the employee’s.
 Performance review conducting in a such a way that all employees are rated
consistent, fair & unbiased.

 Organization can also use another methods of performance appraisal (like.

Assessment Centre, Critical incident Assessment) for assessing performance
of employee’s.

 Organization should conduct periodic performance review for better

performance of employees and improved competitiveness.

If all these recommendations are put in place by organization, this

has a great capacity to turn around the fortunes of these corporation.It would also
enable them to achieve the goals for which they were set up as well as remain
influential instruments of public service delivery and development.
Page | 90
CONCLUSION:

It is concluded from the survey that all respondents are aware about the current
performance management system and does not need to change. Current
performance management system works well and that improve the performance
of the employee’s.
This study has shown that performance management is a comprehensive
approach to planning and sustaining improvements in the performance of
employees so as to meet the standards.

Most of the HR professionals are not feel comfortable with conducting

performance review. So create a trust in them about performance review
techniques and maintaining good relationship with employee’s for improving
their performance and accomplishing goals & objectives of the organization.

Page | 91
BIBLIOGRAPHY:

 Armstrong, M. (2004); Handbook of Human Resources Management Practice (9th

Edition) London: Kogan Page.

 Armstrong M. And Baron A. (1998); Performance Management: The New realities.

London: IPD.

 Akata, G.O. (2003); Strategic Performance Management: Your key to Business

Success; Ibadan Spectrum Books Limited.

 Beer, M. And Ruh, R. A. (1976); Employee Growth Through Performance

Management, Harvard Business review, 13:32-37.

 Fajana, S. (2002); Human Resources Management : An Introduction. Lagos

Laboffin and Company.

 Brumbach, G B (1988) Some ideas, issues and predictions about performance

management, Public Personnel Management, Winter, pp 387–402.

 Mohrman, AM and Mohrman, S A(1995) Performance management is ‘running the

business’, Compensation and Benefits Review, July–August, pp 69–75.
 Risher, H (2003) Refocusing performance management for high performance,
Compensation and Benefits Review, October, pp 20–30.

 Skule, S. (2004) ‘Learning Conditions at Work: A Framework to Understand and

Assess Informal Learning in the Workplace’, International Journal of Training and
Development, 8:1, pp. 1-13.

 Wood, S. (1999) ‘Human Resource Management and Performance’, International

Journal of Management Review, 1:4, pp. 367-413.

 T.V. Rao (2005); Performance Management & Appraisal System : 4th Edition,
SAGE Publication.

Page | 92
 Idemboi, Ellis I. And Oneyeizugbe, Chinedu (2011), ‘Performance management as
an imperative for effective performance’, Sacha Jouranla of Policy and Strategic

Studies, Vol. 1 Number 2, pp. 46-54.

 Geeta Kumari, Neha Kaleramna and K.M. Pandey (2010), ‘Study on performance
management system of private companies : a case study of endurance Pvt. Ltd.

 Maharashtra, India’ , International Journal of Innovation, Management &

Technology, Vol.1, No.5, pp. 521-526.

 Rajesh K. Yadav and Nishant Dabhade (2013), ‘Performance management system in

Maharatna companies’, International Letters of Social and Humanistic Sciences’ ,
Vol.4, pp.49-69.

 Sharmistha Bhattacharjee and Santoshi Sengupta (2011), ‘A Study of performance

management in a corporate firm’, International Journal of Business & Management
Research’, Vol.1 ,No.8, pp. 496-513.

 Dr. Sanjeevni Gangwani (2012), ‘Employee survey on Performance Appraisal

System’, International Journal of Social Sciences & Interdisciplinary Research, Vol.1
, No. 6, pp. 124-141.

 Dr. Satyawan Baroda, Chhavi Sharma and Jyoti Kandpal Bhatt (2012), ‘360 degree
feedback Appraisals- An Innovative approach of performance management system’,
International Journal of Management & Information Technology, Vol.1 , No.2, pp.53-
66.
 Milica Jaksic & Milos Jaksic (2012), ‘Performance Management and Employee
Satisfaction’, Montenegrin Journal of Economics, Vol.9, No. 1, pp.85-92.

 Ashima Aggarwal, Gour Sundar and Mitra Thakur (2013), ‘Techniques of

performance appraisal- review’, International Journal of Engineering & Advanced
Technology, Vol.2, Issue .3, pp.617-621.

WEBLIOGRAPHY:

 http://www.samsons.com
Page | 93
 http://www.sachajournals.com
 http://www.doaj.org
 http://www.businessdictionary.com
 http://www.sibson.com
 http://www.Performanceappraisal.com

 http://www.performance-management-made-easy.com/
 http://www.vsrdjournals.com
 http://www.emeraldinsight.com/journals.htm?articleid=1585214
 http://www.humanresources.about.com
 http://www.citehr.com/

Page | 94
 QUESTIONNAIRE
“QUESTIONNAIRE ON AN ANALYTICAL STUDY OF
PERFORMANCE MANAGEMENT SYSTEM AS A TOOL FOR
EFFECTIVE PERFORMANCE : A STUDY OF SELECTED
EMPLOYEES IN VIJAYJYOT SEATS PRIVATE LIMITED”

Respected Sir/ Madam,

I am Priya Giri student of M.B.A (Final) with specialization in Human Resource

Management of Omkarnand Institute of management & Technology, Uttrakhand
Technical University pursuing a research project on
“Performance Management System as a tool for effective performance in
AAKAR Architects Private Limited”.

I will grateful to you if you spare your valuable time & efforts with your valuable
views on the subject of the research study.

Section – A : General Profile of Respondents :

Name :

(1) Gender :

1. Male

2.Female

(2) Age :

1. 20-25

2. 26-35

3. 36-50

Page | 95
 4. 50+

(3) Qualification :

(4) Job Experience in AAKAR Architects :

1. Less than 1 year

2. 2-10 years

3. More than 10 years

(5) Designation :

(6) Department :

Section – B : Nature of Current Performance Management Systems :

Does your organization operate formal performance management system ?
1.Yes
2. No

(1) If yes, which of the following groups of employees do these processes apply to ?
1. Senior Managers

2. Other Managers/ Team Leaders

3. Technical/ Clerical

4. Professional

5. Manual/ Blue-collar

6. Other (Please Specify)

(2) What are the techniques that are used in your organization for assessing performance ?
1. Observation
2. Assessment & Development Centers
3. Checklist
4.Other (Please specify)

(3) Please indicate which of the following methods of performance appraisal from a part of
your system?
(1) Written Essay Method
(2) Graphical Rating Scales
(3) Ranking Method

Page | 96
 (4) 360 degree appraisal
(5) Self appraisal
(6) Critical Incident Assessment

(5) Using the following scale, please rate your satisfaction with the following parts of your
current performance management system.

Sr. Very Satisfied Neutral Unsatisfied Very

No. Satisfied Unsatisfied

1. Performance Planning/ Goal Setting

2. Performance Evaluation
3. Development Planning
4. 360- degree feedback
5. Coaching &/or Mentoring
6. Training
7. Leadership Development

Page | 97
 8. Rewards
9. Discipline
10. Effectiveness of current
Performance Management System

(6) What are the major elements of your business strategy at present? (please give rank in
order of your importance, with 1 being most importance).

Sr. No. 1 2 3 4 5 6
1. Reduce Costs
2. Increase Productivity
3. Expand/ Develop markets
4. Increase Efficiency
5. Reduce Production Time
6. Improve Quality

(7) Are you believe the current performance management system improving performance ?
1. Yes
2. No

Section – C : Perceptions of HR Professionals about Performance Reviews

only :
Please indicate the extent to which you agree or disagree with the following statements
regarding performance management.

Sr. Statements Strongly Agree Neutral Disagree Strongly

No. Agree Disagree
1 Performance management helps me to motivate my
team
2 Performance management helps me decide what to
pay members of my teams
3 Performance management helps me to develop the
skills & capabilities of my team
4 Performance management helps my team to perform
better

Strongly Agree Neutral Disagree Strongly

Agree Disagree
5 Performance management helps me to communicate
to my team what is expected of them
6 I am not comfortable with conducting performance
reviews
7 Performance management is generally only of use to
the personnel department, not individual line
managers
8 The information generated from performance
reviews is unproductive & of no value

Page | 118
9 The time I spend on performance reviews could be
used more productively elsewhere
10 The current performance management system works
well & does not need to change
11 I am satisfied that I give consistent & fair ratings to
members of my team
12 I am satisfied that performance review techniques
use in assessing employee’s performance more
effective
13 Performance review techniques more impact on
employee’s performance , employee’s incentive &
morale
14 The documentation associated with performance
management is unclear & unhelpful

Section – D : Perception of Employees/ Individuals :

Please indicate the extent to which you agree or disagree with the following statements.

Sr. Strongly Agree Neutral Disagree Strongly

Statements Agree Disagree
No.
1 I have authority to determine my work objectives
2 I receive a lot of feedback on my performance
3 The most important thing about my job is the pay
4 Hard work is not necessarily recognized or rewarded
5 I fully understand my organization’s business goals &
objectives
6 My work objectives are unrealistic & difficult to achieve
7 I have autonomy over the way I perform my work
8 My organization communicates well
9 Performance management helps me to do my job better
10 Performance management helps me to develop my skill &
potential
11 I get useful feedback from my performance management
review
12 I am not satisfied with the way my manager/team leader
conducts my performance review
13 Performance management helps me to improving
performance
14 Assessments of my performance are consistent, fair &
unbiased

Strongly Agree Neutra Disagre Strongly

Agree l e Disagre
e
15 The system of performance management used here works
well and does not need to change
16 The information disclosed in performance reviews is used
sensitively & productively by the organization

Page | 119
17 Performance management does not help to develop
careers, only improve work performance
18 Performance management is only use to personnel people
19 Performance review techniques more impact on my
performance, incentives & morale
20 Performance management has no value for individuals,
only for organization
21 I find it difficult to discuss work problems with my line
manager
22 Performance management is a two-way process, with both
manager & employee expressing their views

Thank you for your Time & Experience

Page | 120