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1. “EFFECTIVENESS OF PERFORMANCE APPRAISAL IN
PUBLIC SECTOR ENTERPRISES AND ITS EFFECT ON
EMPLOYEES MOTIVATIONS”
PROJECT REPORT SUBMITTED IN PARTIAL FULELLMENT OF REQUREMENT FOR
THE AWARD OF M.COM (HONS.) DEGREE UNDER RANCHI UNIVERSITY, RANCHI OF
MARWARI COLLEGE, RANCHI, JHARKHAND
SUBMITTED BY
NAME : GULAM SARWAR
CLASS : M.COM
SESSION : 2019-2021
CLASS ROLLS NO : 324
EXAM ROLLS NO : 19MCRMC910075
UNDER THE GUIDANCE OF-
DR. AMIT KUMAR
(ASSISTANT PROFERSSOR)
DEPARTMENT OF COMMERCE & MANAGEMENT
STUDIES
MARWARI COLLEGE, RANCHI
2. I GULAM SARWAR hereby declare that the project titled
“EFFECTIVENESS OF PERFORMANCE APPRAISAL IN
PUBLIC SECTOR ENTERPRISES AND ITS EFFECT ON
EMPLOYEES MOTIVATION” has been prepared by me and
submitted under M.COM curriculum. All the information,
facts and figures are collected by me and are first hand in
nature.
Any resemblance from existing work is purely
coincidental in nature.
Name of candidate : GULAM SARWAR
Class Rolls No : 324
Exam Rolls No : 19MCRMC910075
Session : 2019-2021
Registration : MCR19910075
Signature of the Candidate Project Guide
3. Date _______________
This is to certify that this project has been submitted by GULAM
SARWAR a student of M.COM (HONS), Semester-IV, Session-
2019-2021 bearing Exam Roll No: - 19MCRMC910075 of
Marwari College, Ranchi on a given topic “EFFECTIVENESS OF
PERFORMANCE APPRAISAL IN PUBLIC SECTOR
ENTERPRICES AND ITS EFFECT ON EMPLOYEES
MOTIVATION” under my guidance. This is for partial fulfillment
of award of M.COM (HONS), degree under Ranchi University,
Ranchi. The work done by him is appreciable of an outstanding
level.
I wish him for every success in his life.
PROJECT GUIDE
Date: ________________
Place: ________________
4. The satisfaction that accompanies the successful completion of
any task would be incomplete without the mention of people
whose ceaseless cooperation made it possible, whose constant
guidance and encouragement crown all efforts with success.
I am grateful to Dr. R R Sharma (H.O.D.), Commerce
Department, Marwari College, and Ranchi for his guidance,
inspiration and constructive suggestions that helpful for me in
the preparation and execution of this project.
I would also like to thank my project guide DR. AMIT
KUMAR faculty, Marwari College, and Ranchi for his
continuous support for completion of this project.
I would also express my thanks to my Friends and people who
have helped me in successful completion of the project.
Prof. (Dr.) Gyan Prkash Verma Dr. Amit Kumar
Principal Project guide
5. INDEX
SL. NO CONTENT PAGE
NO
1. INTRODUCTION 1-2
2. RESEARCH OF OBJECTIVE 2
3. THE CONCEPT OF PERFORMANCE
APPRAISAL
2-5
4. PERFORMANCE APPRAISAL OF
TECHNIQUES
6-8
5. OVERVIEW OF BENEFITS OF
PERFORMANCE APPRAISAL
8
6. OBJECTIVE OF PERFORMANCE
APPRAISAL
9
7. METHODS OF EVALUATION TECHNIQUE 9-10
8. BENEFITS OF APPRAISAL SYSTEM 11-14
9. THE PUBLIC SECTOR 14-16
10. PUBLIC SECTOR UNDERTAKING 16-17
11. ROLE OF PUBLIC SECTOR 17-18
12. THE PUBLIC SECTOR HRM 20-21
13. AIR INDIA LIMITED 23-42
6. 14. SCOPE OF PERFORMANC APPAISAL 43-44
15. FEATURE OF PERORMANCE APPRAISL 46-47
16. USING PERFORMANCE APPRAISAL TO
PROVIDE SUPERVISORY SUPPORT
47-48
17. MOTIVATION THROUGH PROVISION OF
FEEDBACK
48-50
18. EFFECTIVENESS OF PAS AND
MOTIVATION AT SHINE
COMMUNICATIONS
50-52
19. FINDING & CONCLUSIONS 52-55
20. REFERNCE & BIBLOGRAPHY 55
7. INTRODUCTION: -
Employee performance has traditionally been accorded prime
focus by human resource managers. As a result, a number of
performance appraisal techniques have over time been devised to
help establish employee’s performance. In the contemporary
times, the use of performance appraisals has been extended
beyond the rating of the employee’s performance to aspects such
as motivation. Accordingly, this study sought to investigate
effectiveness of performance appraisal system and its effect on
employee motivation. The study’s main objectives pertained to
establishing the moderating role of performance appraisal as a
motivation tools as well as potential of significant positive
outcomes when the organization uses performance appraisal as a
motivation tool. Further, the study finds that the use of more than
one appraisal techniques helps yield greater satisfaction and
consequently higher motivational level. The specific aspects of
performance appraisal systems (PAS) that help improve
motivation include the linking of performance to rewards; using
the PAS to help set objectives and benchmarks; as well as the use
of PA to help identify employee’s strength and weaknesses.
Despite the above shortcomings in approaches to performance
appraisal, extant literature on performance management still
indicates that performance appraisal when undertake in the right
manner can contribute significantly to employee motivation
(Tuytens & Devos, 2021). When undertaken in the absence of
clear goals, performance appraisal can however have serious
ramifications in terms of employee dissatisfaction and
consequently a reduction in productivity and organizational
commitment (Malay, 2013). On the positive side, it has been
argued that performance appraisal provides an important avenue
8. to recognize employee incentive. Its importance is underscored
by Samarakone (2010) who indicates that beings in a number of
instances prefer negative recognition as opposed to no
recognition at all.
RESEARCH AIM AND OBJECTIVES
The study seeks to establish the link that exists between
performance appraisal and employees motivations. In order to
meet the general aim, the following specific objectives will be
pursued:
1. To analyses the types of performance appraisal and
motivation and their effectiveness at Shine
Communications.
2. To examine and explore the link between performance
appraisal and motivation at Shine Communications.
3. Which are the main types of performance appraisal and
motivation and how effective at they from an organizational
perspective?
4. How does performance appraisal influence employee
motivation?
THE CONCEPT OF PERFORMANCE APPRIASAL
While a number of organizations continue to use informal and
subjective performance evaluation practices to make reward
decisions, there is evidence that objective performance
evaluation practices and increasingly prevalent in the current
times (Gardner, 2008; Sheilds, 2007). Gardner (2008) describe
performance appraisal as the evaluation of an individual’s work
with the main aim of arriving at objective personnel decisions. It
is also considered as the process of obtaining, analyzing as well
as recording information that revolves about the relative worth
of the employee to the organization (Armstrong, 2009). This
takes place through the planned interaction between an
organization’s supervisors and employees in which the former
9. assess the performance of the latter. One of the main goals in this
case is the identification of strengths and weaknesses that from
the basis of recommending actions for improved employee
performance (Gardner, 2008).
1. TYPES OF PERFROMANCE APPRIASAL
The following Article Types of Performance Appraisal offers a
comprehensive overview of the kinds of performance appraisal.
Performance is defined as the application of knowledge, skills,
and abilities at one’s disposal to finish off a particular work. The
way an individual scores at the end on the basis of the job
responsibilities that he is into. Job performance is of two types:
contextual and task. Task performance relates to the sense of
cognitive ability, while contextual performance is related to
personality. Williams and Krane identified certain features that
define the state of ideal performance.
1. Risk-taking ability
2. Not being performance-oriented
3. Focusing on work
4. A sense of self-confidence
5. A sense of adapting to various situations
6. A sense of time and space management without affecting the
work.
Motivation, task-relevant attention, positive self-talk, and
cognitive regulation are other related factors. Crisis handling,
stress management, problem-solving ability, possessing proper
skills, agile management, adapting to situations, and fitness of the
body are the eight factors that determine an individual
performance.
2. TYPES OF PERFORMANCE APPRIALSALS
Managers are not very much in favor of performance appraisal
techniques, but still, it is required to have the knowledge of
10. various performance appraisal techniques so that we get to
choose the best possible option in the time of need. Here are a few
different types of appraisal methods:
1. THE 360-DEGREE APPRAISAL
This method involves giving out a questionnaire with
questions regarding a colleague’s performance they need to
fill it up. The manager can consider this feedback by
evaluating the performance at the end of the quarter/year.
2. GENERAL PERFORMANCE APPRAISAL
This method involves continuous interaction between the
employee and his manager, continuous setting of goals and
achieving them. Whether the employee has been able to do
justice the entire process or not ion evaluated at the end of
the year.
3. TECHNOLOGICAL/ADMINISTRATIVE PERFORMANCE
APPRAISAL
This appraisal technique concentrates on technical more
than any other aspect of performance on the job as the
employees involved have specialized skills. They’re judged
on the skills they possess and the activity they complete.
11. 4. MANAGER PERORMANCE APPRAISAL
A manager’s performance should also be appraised, and this
includes not just his/her performance on the job but also
relationship management with clients at her/her disposal.
Generally, anonymous feedback forms are received, which
are then considered for appraisal.
5. EMPLOYEES SELF-ASSESSMENT
This method is very unpopular among employees as nobody
can deal with rating himself or herself. The self-assessment
sheet is compared with the on filled up by the manager and
the differences are discussed.
6. PROJECT EVALUATION REVIEW
This method involves performance appraisal of the team
members involved at the end of every project and not at the
end of every year. This helps the team and its members
develop with each passing project.
7. SALES PERFORMANCE APPRAISAL
A salesperson is evaluated on the basis of his/her sales skills
and accomplishment of financial goals set previously. Goals
set in case of sales should be realistic and ways of achieving
them should be decided by the employee and the manager
concerned.
12. PERFORMANCE APPRAISAL TECHNIQUES
1. GRAPHIC RATING SCALE
• A graphic rating scale rates employees on fixed scales
as per the qualities they are required to possess. The
final score obtained classifies employees into various
tires and helps in their performance evaluation at the
end of the year. It is understandable and easily usable.
Behaviors can be quantified, and appraisal can be
simplified using this method.
• There are demerits to this method too. Temperament
varies from person to person. A few evaluators can be
very strict, and a few can be very lenient based on their
fixed agenda. Though it helps to identify the best and
the worst performing individuals, it does not separate
average individuals.
2. ESSAY PERFORMANCE APPRAISAL METHOD
• It is also called the “Free From method.” It includes a
fact-based performance description of employees with
instances to support it, and based on this; she/her is
evaluated on the job.
• It is a qualitative technique and not a quantitative
technique. So, evaluation using this method id difficult.
Moreover, one needs to have detailed knowledge
13. regarding the job and the firm in order to use this
method.
3. CHECKLIST SCALE
• A checklist is prepared on the basis of Yes or No with
regard to the traits of an employee. If an employee has
a particular trait, then it is marked as yes or else no. the
evaluation of the rater and the actual HR evaluation are
two separate things altogether, and it is not a details
evaluation.
4. WORK STANDARDS APPROACH
• The management of a firm establishes fixed standards
and the final deliverable prepared by the team involves
has to be as per those points, and then, each member is
evaluated. So, the employee knows his/her job and its
terms clearly. It just does not help in making
individualistic appraisals.
5. RANKING APPRAISAL
• A manager is required to rank employees put into the
same job and then evaluate them. The employees are
ranked chronologically in either increasing or
decreasing order. The problem is it cannot be used on a
very larger team and its members.
6. MBOs
• MBO (management by objectives) involves setting
objectives for the employees on the job, which they
have to accomplish and are further appraised on
that basis. SMART Goals i.e. goals that are Specific,
Measurable, Actionable, Relevant, and Time-bound
are set so that biased can be prevented.
14. OVERVIEW OF BENEFITS OF PERFORMANCE APPRAISAL
An organization’s productivity, profitability, and sustainable
growth are dependent on the efficient and effective utilization of
human resources. People or human resources are one of the most
important assets for effective operations, and their skillful
application is directly related to the organization’s overall
performance. Various factors, including organization culture,
unbiased appraisal system, the prospect of career growth, job
responsibility, and so on, stimulate an employee’s performance or
productivity level. In this topic, we are going to learn about the
Benefits of Performance Appraisal.
The Appraisal system must be unbiased because it provides
adequate feedback about an employee’s performance level, but it
also gives data to managers for future job assignments and
compensation and supports as a basis for transforming or
changing the behavior pattern toward more effective habits which
delivers results.
15. OBJECTIVES OF PERFORMANCE APPRAISAL
The organization adopts various performances rating system with
certain objectives in mind.
Those objectives are:-
• To provide inputs for making decisions regarding
transfers, promotions.
• To provide data for identifying the requirements of
training and development programs for individuals.
• To help to make decisions for offering confirmation to
the employees who have completed the probationary
period.
• To take decisions regarding the kike of employee’s
salary, incentives or variable pay.
• To enable clarification of expectations and facilitate
communication between superiors and subordinates.
• To help employees to realize their performance level
• To collect data and keep the record for different
organizational purposes.
METHODS OR EVALUATION TECHNIQUE
In terms of designing the evaluation technique, each company
considers various factors such as the size of employees, work
schedule, company goal, and so on. Whatever method is used, it is
important to select the right method for assessing the individual’s
quality and quantity of work. There are many methods of merit
rating which can be classified into two categories –
1. Traditional method
2. Modern method.
16. TRADITIONAL METHOD
❖ Ranking method
❖ Forced Distribution
❖ Forced Choice method and Checklist method
❖ Paired Comparison
❖ Grading
❖ Critical Incident method
❖ Graphic Scale
❖ Essay method
❖ Field Review
❖ Confidential Report
MODERN METHOD
❖ Management by Objective (MBO)
❖ Behaviorally anchored rating scales
❖ Assessment centers
❖ 360-degree appraisal system
❖ Cost Accounting method
17. BENEFITS OF APPRAISAL SYSTEM
Though there are some debates regarding the merit rating system
it considers adding little value to the organizations performance,
the annual reviews are taken by management and staff as a
painful process. Sometimes it acts as detrimental to performance
management.
Still appraising system is assumed as a performance measuring
standard that has been fixed to give feedback to the employees to
improve their performance level by eradicating deficiencies. It is
acclaimed as an investment for the company, and this acclamation
is quite justifiable after considering the following benefits.
1. ASSIST TO ENHANCE EMPLOYEE PERFORMANCE
The evaluation process needs supervisors to note
insufficiencies in employees’ performance and communicate
to the respective employees accordingly. The manager or
supervisor can give suggestions to overcome their deficits.
The logical appraisal system helps the line mangers and HR
people to design policies and programs for the progress of
employees and business. Even it supports to plan daily work
agreeably to assign the right people to assign the right
people to an accurate job. The evaluation process must be
unbiased and equally viewed that it can stimulate the
development of every employee’s careers.
18. 2. PROMOTIONS AND TRANSFERS
The merit evaluation system helps to recognize talented
employees to groom them as competent. The organization
admits the hard work and accomplishments of employees by
giving promotion, deputation, and transfer. The evaluation
system certifies that promotion and transfer are only offered
on the basis of performance, not on seniority and nepotism.
3. HIKE IN SALARY AND COMPENSATION
The rating system gives a clear view of an employee’s
performance level, which is compensated by an
enhancement in salary and offering other fringe benefits. A
good point rating can be achieve only through the appraisal
system, which offers handsome compensation packages like
a bonus, extra reimbursement, various allowance, and
requisites. Almost in all organizations, different categories of
employees are paid good compensation packages for their
high level of performance, which revealed in the evaluation
system.
4. PLANNING GOR PROVIDING TRAINING AND
DEVELOPMENT
Through the appraisal procedure, the superiors can
comprehend their subordinates’ strengths and weaknesses,
which also help the HR department design a training and
development program. The content and method of training
vary according to the requirement of employee. Even the
appraisal system decreases the attrition rate because
appreciation and bonus enhance the stability of an
employee.
19. 5. IMPROVE RELATIONSHIP BETWEEN MANAGEMENT
GROUP AND EMPLOYEES
After the appraisal, the employees get the opportunity to
discuss their concern with superiors who are not only
helpful resolving any grievance or dispute but also improve
the liaison between the management group and employees.
6. BE INTEGRATED WITH STRATEGIC VISION
One of the important purposes of conducting an appraisal is
to communicate employee goals that are a part of the
organization’s strategic vision.
7. THE TOOL OF INSPIRATION
Performance appraisal acts as an inspirational tool for the
employees because its process of weighing up the
performance level and the recognition system after
achieving the goal can boost the employees’ efficiency and
productivity level.
8. DELECT VALUED PERFORMERS
Evaluation system aids in recognizing potential employees
in the organization. At the time of taking personnel decisions
like who will be promoted to an influential position or who
will be laid-off, the employers take the decision on the basis
of performance history, skill level, and experience. The
appraisal system is also helpful for taking inventory of
quality people in the organization. As per the valuation, the
HR department takes the decision to recruit new employees
or upgrade the existing workforce.
If the performance appraisal system is properly executed, it
can become a powerful tool to establish an organizational
culture where each employee acts for the broad strategic
vision of the organization.
20. THE PUBLIC SECTOR
The public sector represents both, state institutions and part
of the national economy for which the state has special
responsibilities since it is the founder of the enterprise, i.e.
the unit of local authority. The public sector is comprised of
companies which perform activities of general interest to all
citizens: state institutions, electricity companies, oil
industry, banking and insurance services, some forms of
transportation, utilities, postal and telecommunications
services, etc.
Beside administrative bodies and special administrative
organizations within the organizational structure of the
state, non-government bodies can perform administrative
activates as regulated by Law on Public Enterprises (2005).
In different countries this field is often called public sector.
However, our regulations do not always allow this kind of
classification. That is why classification of forms and aspects
of non-governmental bodies with public authorities is
conducted by determining basic elements which are
regulated by valid legal and other regulations. According to
this, non-governmental bodies can be separated into two
categories in our country (2009)
• Public institutions
• Public agencies.
The concept of public services was first introduced in France
in the 19th century. The most extensive development of the
public service took place in Franc where an institute for this
public service was established. Also, it is perceived that the
public service is in the domain of administration which is
21. conducted under the rule of public law, i.e. the public service
is separated into two concepts:
• The formal
• The material
1. The Formal: - The formal part is comprised of the bearer
of the service, it is important that the service is conducted
by some public entity which characterizes the service as
public service.
2. The material: - The material part, the material compound
is important. The service must have significance for the
community. The social community determines certain
activities of the public service character because of the
significance that service has for general interest.
The Law on Public Enterprises of performing activities of general
interest (2000) stipulates that public enterprises conduct
activities of general interest established by the state, i.e. local
authorities. The importance of the public sector is reflected in fact
that it materializes through the realization of public interest set in
various fields, which are important for society as a whole. In that
sense, from the aspect of organizing and management of the
public sector and especially public enterprises, it is of great
importance to consider the overview of determinants of public
interest, without prejudice to their activities, which is reflected in
the fact that these are business entities. Public entities have their
own assets which they manage in accordance with law which
determine the legal position, laws which determine the activities
conducted with the goal of achieving public interest, a founding
act and contract. The public enterprise is responsible for its
activities. Bodies of the public enterprise are: steering board,
director and supervisor board. The public entity can also appoint
a board of directors if stated so in the founding act or the statue of
the enterprise.
22. PUBLIC SECTOR UNDERTAKINGS
Public Sector Undertakings are a major part of the Indian
economy that comprises public services and enterprises and it
provides services that benefit the entire society. This article gives
details on the objectives of setting up PSU’s, their role in the up
liftmen of society, problems, and reforms undertaken by them.
PUBLIC SECTOR – 3 MAJOR CLASSIFILCATIONS
The public sector can be classified into: -
1. Departmental Undertaking – Directly managed by concerned
ministry or department. (E.g. Railways, Post. etc.)
2. Non-Departmental Undertaking - PSU (E.g. HPCL, IOCL, etc.)
3. Financial Institution (E.g. SBI, UTI, LIC, etc.)
The rationale behind the establishment of PSU’s was
Industrialization and the establishment of Capital Goods
Industries and Basic Industries. The organizations that are not a
part of the public sector are termed as private sector that works
to raise profit for the organization.
SETTING UP PUBLIC SECTOR UNIT (PSU)
1. To create an industrial base in the country
2. To generate a better quality of employment
3. To develop basis infrastructure in the country
4. To provide resources to the government
5. To promote exports and reduce imports
6. To reduce inequalities and accelerate the economic growth
and development of a country.
23. ROLE OF PUBLIC SECTOR IN THE UNLIFTMENT OF SOCIETY
The public sector plays a major role in uplifting the economic
condition of society in various ways.
The major role of the Public sector is explained below: -
1. Public Sector & Capital formation: -
This sector has been a
major reason for the
generation of capital in
the Indian economy. A
large amount of the
capital comes from the
Public sector Units in
India.
2. Creation of Employment Opportunities: -
Public sector has
brought about a major
change in ht
employment sector in
the country. They
provide a lot of
opportunities under
various domains and
thus help in uplifting
the Indian economy
and society.
3. Development of Different Regions: -
The establishment of
major factories and
plants has boosted the
socio-economic
24. development of
different regions across
the country.
Inhabitants of the
region are impacted
positively concerning
the availability of
facilities like electricity,
water supply,
township, etc.
4. Upliftment of Research Development: -
Public sector units have
been investing a lot to
introduce advanced
technology, automated
equipment, and
instruments. This
investment would
result in the overall
cost of production.
25. PUBLIC SECTOR UNDERTAKINGS (PSU) – PROBLEMS
The major problems of PSUs can be stated below: -
❖ Inappropriate investment decisions
❖ Improper Pricing Policy
❖ Excessive overhead cost
❖ Lack of Autonomy & Accountability
❖ Overtaking
❖ Trade Unionism
❖ Under Utilization of capacity
PUBLIC SECTOR UNDERTAKING – REFORMS
The major PSU reforms are given below: -
❖ New Industrial Policy 1991
❖ Voluntary Retirement Scheme, 1998 (Golden Handshake)
❖ Administered Price Mechanism
❖ The Policy of Navratnas
• The government gave them a significant degree of
autonomy so they can perform better.
❖ The policy of Mini Ratnas (Presently 60 PSUs have been
granted this status)
❖ The Policy of Maharatnas (category created in 2010)
• Net profit should be 2500 crore
• Net worth should be 10000 crore
• Turnover should be 20000 crore
• PSU also be a Navratna and must be listed in Stock
Exchange
• PSU also must have a significant global presence.
• In 2010 Govt. granted 4 Navratna Maharatnas status to
ONGC, IOCL, SAIL, and NTPC. After sometime Govt.
granted this status to CIL.
26. THE PUBLICE SECTOR HRM
In the focus of HRM is managing people in an organization with
the aim to reach their maximum capacity of productivity.
According to Stone (2011) HRM deals with a set of subareas such
as hiring, development, training, motivation, reward
management, performance measures and conditions of
employment. While managing people, the legal framework has to
be kept in mind.
If the HRM is effective and efficient it has to provide competitive
advantage to the organization. Unlike earlier times, nowadays the
business environment is very dynamic and changing fast. To be
able to keep in pace with the market, HRM has to ‘think out of the
box’. In this way, the effective deployment and management,
highlighting motivation, of people within organizations is
becoming a powerful tool to respond to the complexity of the
environment and achieve competitive advantage.
As well as the private sector, public sector organizations have to
focus on hiring and developing employees’ which will contribute
to the success of it. Payment system, benefit regulations,
condition and policies of employment have to be set. The public
sector focuses on public interest outcomes, what make the
application of strategic HRM complex.
There is a set of fact are put forward to the uniqueness of the
public sector (Lawton & Rose, 1994):
❖ Public sector organizations are not exposed to the
competitive world of the market and hence have no
incentives to reduce costs or operate efficiently.
27. ❖ Objectives are usually ill-defined and expressed in vague
terms such as serving the public, maintaining law and order,
reducing inequality, removing poverty or improving health.
❖ Strategic planning is more difficult because of the different
mandates of politicians.
❖ The accountability and transparency of the public sector has
to be greater, because of the pressure and requirements of
the stakeholders.
❖ The functions of the public sector are limited by statue.
❖ The public sector is funded by taxation and not by charging
for its services.
NEW PUBLIC MANAGEMENT
With the increasing requests for administrative system to conduct
quality tasks in a democratic transition it was necessary to go
through some transformation in order to find new organizational
and functioning forms. This led to the development of a new
approach called New Public Management. HRM became more and
more important, because it was clear that human resources have
a significant role in functioning of organizations. NPM practices
that were usually used in the private sector are becoming more
prevalent in the public sector. The public sector management and
all its components are now rather flexible than bureaucratic and
facing clients’ needs more than ever before.
The facts of the changing dimensions of public sector employment
indicate that HRM has a major impact on understanding the
elements of the ‘new’ public sector. NPM has largely affected the
changes. As mentioned before, multi skills, restructured career
paths, decentralization, greater emphasis on equity and the
removal of rigid employment categories have been some of the
benefits of NPM.
28. According to Borins (1995), NPM should rely on several key
ideas:
i. The government should provide high quality service in
accordance with the needs of citizens.
ii. Autonomy of public managers, especially of central
governing bodies, should be increased.
iii. Organizations and individuals should be evaluated and
rewarded on the basis of how successfully they accomplish
required objectives.
iv. Managers must ensure appropriate human and technological
resources necessary to accomplish certain goals.
v. Public sectors mangers must appreciate the values of
competitiveness and keep an open approach on what
belongs to the public and what to the private sector.
Contemporary leadership is based on inspiring constant changes
and quality adjustment of changed conditions in the environment,
authorizing and motivating employees to study and advance, to
constantly enhance themselves and the part of the organizational
process on which they are working. That is the process in which
employees take personal responsibility for the success in
completing tasks goals of the entire organization (Kavran, 2003).
Although the public and private sector have different orientations,
HRM has to be similar focusing on hiring and retain the most
appropriated people, with the help of talent and knowledge
management, motivation, and performance and reward systems.
In the state administration, here should be “as much market as it
is possible and such state controls as necessary”.
29. ONE EXMAPLE OF PUBLIC SECTOR
AIR INDIA LIMITED
Type Statutory corporation
Industry Aviation
Founded 30 March 2007
Founder Tata Group
Headquarters Airlines Housed, New Delhi
Key People Ashwani Lohani
(Chairman % MD)
IRSME
Services ➢ Airline
➢ Air Travel
➢ Ground Handling
➢ Lodging and Fooding
➢
Revenue Rs. 142.551 billion
(US$2.0 billion) (2011)
Owner Government of India
(10%)
Number of Employees 28,085(2011)
30. 9,993 (2020)
Parent Ministry of Civil Aviation,
Government of India
Divisions ➢ Hotel Corporation of India
Limited
➢ Air India
➢ Air India Air Transport
Services Limited
➢ Air India Engineering
Services Limited
➢ Air India Express
➢ Alliance
Website www.airindia.com
INTRODUCTION
Air India Limited is a statutory corporation that
was formed as National Aviation Company of India Limited by the
Government of India to oversee the merger of Air India and
Indian Airlines. It is under the jurisdiction of Ministry of Civil
Aviation, Government of India. The statutory corporation was
renamed as Air India Limited on 26 October 2010. It was
incorporated on 30 March 2007 as a statutory corporation based
at the Air India Building in Nariman Point, Mumbai. To
corporation was created to facilitate the merger of the two main
state-owned airlines in India: Air India with its subsidiary Air
India Express and Indian, together with its subsidiary Alliance Air
(was called Air India Regional for about 6 years from 2011 to
march 2017).
PROFILE
Air India is the flag carrier airline of India, owned by
Air India Limited, a government of India enterprise. The airline
operated a fleet of Airbus and Boeing aircrafts serving various
31. domestic and international airports. It has its headquarters
located at the Indian Airlines House, New Delhi.
It has two major domestic hubs at Indira Gandhi
International Airport (New Delhi) a Chhatrapati Shivaji
International Airport (Mumbai). Its secondary hubs are at
Chennai International Airport (Chennai) and NetajiSubhsh
Chandra Bose International Airport (Kolkata). However,
international hub is being planned at Dubai International Airport,
Dubai. Its fleet size is 133 which include youngest fleets providing
superior flight experience. As of June 2014 Air India serves
131destinations. There are 26,000 employees working in Air
India (FY 2013/2013).
Air India was one the largest operator in
Indian sub continent with the market share of over 60%.
Indifference financial performance and services, labour trouble
pushed it to 4th place in India behind low cost carriers like Spice
Jet and its full service rivalry Jet Airways. As of January 2014, Air
India is the 3rd largest carrier in India, after Indigo and Jet
Airways with the market share of just above 19%. History of Air
India – Air India is the India’s National Airline. Its history can be
traced to October 15th 1932. On this day J. R. D. Tata, the father of
civil aviation in India and founder of Air India, took off from Drigh
Road Airport, Karachi in a tiny, light single engine de Havilland
Puss Moth on his fight of Bombay via Ahmadabad. Air India
earlier was known as Tata Airlines. After the World War II,
Regular commercial service in India went back to normal, Tata
Airlines changing its name to air India and becoming a public
limited company on the 29th of July 1946. On March 8th, 1948 Air
India International limited was formed to start Air India’s
International operations. On the 8th of June 1948, Air India
introduced a regular service from Bombay to London, and two
years later, Air India started regular flights to Nairobi.
32. SUBSIDIARY COMPANIES
▪ Hotel Corporations of India
▪ Air India Charter Limited
▪ Air India Air Transport Services Limited
▪ Air Engineering Services Limited
▪ Airline Allied Services Limited
▪ Vayudoot Limited
MISSION: -
To be rated among top five airlines in Asia Pacific by customers
and distribution partners.
OBJECTIVE: -
Achieve unit revenue, unit cost, profitability and service level
target, based on benchmark parameters.
VISION: -
▪ To rationalize all business processes around passenger and
departure control applications using industry standards
with a view to enhance revenues and reduce cost.
▪ Upgrade participation levels with various Global
Distribution System (GDS) to the highest level.
▪ Provide for various modes of booking and check-in and thus
extend the convenience to the customers.
▪ Timely and accurate revenue determination per flight
departure due to uplift to e-ticket coupons and speedier
interline settlements.
▪ Ensure that NACIL hosted system has incorporated latest
Industry Standard (IS) changes relevant for all PSS
applications as per requirements.
▪ Provide the Customers using the airline IBE for passenger
services an experience to cherish.
33. ▪ Provide a world class Frequent Flyer system with
comprehensive interface with other frequent flyer system of
Global Alliances partner airlines.
ORGANIZATIONAL CHART:
Ministry of Civil Aviation
CMD
BOD
Joint MD
Executive Director
General Manager
Deputy General Manager
Chie Manager
Senior Manager
Manager
35. SWOT ANALYSIS OF AIR INDIA
1. Strength
i. Strong backing by the Government of India
ii. Brand new fleet of aircraft and owns most updated
fleet
iii. Its information systems are advanced
iv. Known for its unique and high quality “Maharaja”
advertising
v. Presence in nearly 54 countries
vi. Flying to 61 destinations within India
2. Weakness
i. Labour problem and political intervention is a cause of
worry
ii. Financial crises leading to payment issues of
employees
iii. Low profitability and utilization of capacity
iv. Airline high cost structure and compulsion of being a
public sector unit are the reasons it had been making a
loss
3. Opportunities
i. Dedicated set of customers
ii. Can leverage on brand new fleet
iii. Expansion of routes and international destinations
iv. Solving international issues regarding workforce can
highly boost image and operations
v. The routes agreement is easier to achieve
vi. The number of foreign visitors and investors of India is
increasing rapidly
vii. Complementary industry like tourism will increase
demand of airline services
36. viii. Customers and getting wealthier, tend to be less price
conscious and prefer o choose quality service over cost
4. Threats
i. Rising labour costs
ii. Rising fuel cost
iii. Faces imminent aggressive competition from world
leading airlines and price wars triggered by domestic
players
iv. Losing market share due to other airlines
AIR INDIA LIMITED MOTIVATES EMPLOYEES
A simple definition of motivation is that it is the description
of person’s motive to action. It is ‘what makes us do what we do.’
The most complex and valuable resources of every organization
are the employees working in it. It has to be considered that
people should be highly motivated and their efforts should also be
aligned with the goals of the organization.
‘DRIVES WITHIN A PERSON THAT ACCOUNT FOR THE
DEGREE, DIRECTION AND PERSISTENCE OF EFFORTS
EXTENDED AT WORK.’
Motivation is an employee’s intrinsic enthusiasm about the
drive to accomplish activities related to work. Motivation is that
internal drive that causes and individual, to decide to take action.
Every employee has activities, events, people, and goals in his or
her life that he or she finds motivating. So, motivation about some
aspects of life exists in each person’s consciousness and actions.
37. The trick for employer is to figure out how to inspire employees’
motivation at work. To create a work environment in which an
employees is motivated about work, involves both intrinsically
satisfying and extrinsically encouraging factors. Employee
motivation is the combination of fulfilling the employee’s need
and expectations from work and the workplace factors that
enable employee motivation. These variables make employee
motivation challenging. Many employers fail to understand the
significance of motivation in accomplishing their mission and
vision. Even when they understand the importance of motivation,
they lack the skill and knowledge to provide a work environment
that fosters employee motivation.
MOTIVATORS –
A. Desire for pleasure (positive motivators) – represents
desirable qualities that we want to achieve and will
usually direct our actions to attain one or more of
them.
B. Avoidance of pain discomfort (negative motivators) –
we usually attempt to avoid them. They do motivate us
to take actions buy only in trying to avoid this.
AIR INDIA LIMITED POSITIVE AND NEGATIVE MOTIVATORS
COMPRISE
“Connection and belonging, Independence, Constancy,
Change, Power and control, Progress, Achievement, Recognition,
Stimulation, Possession, Self expression, Contribution, Meaning
purpose and values and Physical conditions.”
38. Every factor may act as positive or negative motivators i.e. it
varies from person to person. Ex: An employee works harder and
harder so as to get connected with the upper management and
stay connected with the group he belongs to. On the other hand he
may work harder and harder so as he does not lose the
recognition he gets from upper management.
Employee performance is frequently described as a joint
function of ability and motivation, and one o the primary tasks
facing anger is motivating employees to perform the best of their
ability.
Pinder (1998) describes work motivation as the set of
internal and external forces that initiate work related behavior,
and determine its forms, direction, intensity and duration; work
motivation is a middle range concept that deals only with
phenomena related to people in a work context. Pinder (1998)
said that an essential feature of this definition is that work
motivation is an invisible, internal and hypothetical construct,
and that researchers, have to rely on established theories to guide
them in measuring work motivation.
DIMENSIONS OF JOB SATISFACTION:
➢ Individual factors include personality, education and
qualifications, intelligence and abilities, age, marital status,
orientation to work.
➢ Social factors include relationships with the co workers,
group working and norms, opportunities for interaction,
informal organization.
➢ Organizational factors include nature and size, formal
structure, HR policies and procedures, employee relations,
39. nature of work, technology and work organization,
supervision and styles of leadership, management systems,
and working conditions.
➢ Environmental factors include economic, social, technical
and government influences.
Objective of the Air India Limited
The study has been initiated keeping in view of the merger
of the two airlines Erstwhile Indian Airlines Ltd and Air India in
the year 2007, which has led to lot of changes which has directly
or indirectly had a very strong impact due to the changes
implemented in the merged scenario.
The major challenges and issues of merger were:-
❖ Unified work practices
❖ Man power integration
❖ Pay parity
❖ Carrier progression
❖ Succession planning
During the initial phase of the merger there were a lot of
ambiguities concerning the above factors. However the
recent initiative & recommendation implemented by the
Justice Dharmadikari Committee instituted by the Ministry
of Civil Aviation/Govt. of India, has given a yardstick for the
management for integrating both the companies as per the
vision & mission of the merged entity. In the view of the
above statement of problems and changes of employee’s
perception morale and motivation level due to the fear of the
unknown had come down multilevel as also due to the
surmounting losses which company has been trying to
overcome in the past years as a result of which employees
were getting delayed salary, par payment and a big cluster of
cost cutting measures has been a very de-motivating factor
40. for the employee, there by resulting low productivity and
ambiguous work culture.
Therefore the management is very keen on to examine,
analyze and find out various factors affecting motivation of
employees. The primary objective of this study is to know
various motivation facilities extended to the employees at
Air India Limited and to see up to what extent these factors
are related with the Job satisfaction i.e. whether these
factors, provided by the company, leads to job satisfaction or
not. Secondary Objectives includes-
o To involve participation from employees.
o To check whether various factors are co-related to job
satisfaction.
o To suggest measures in improving the motivation
techniques use by the company.
o To seek various suggestions or expectations from the
unsatisfied employees
SCOPE OF AIR INDIA LIMITED
➢ Effective Motivation techniques lead to proper satisfaction of
the needs of the employees.
➢ If the Motivation techniques are correlated with the Job
Satisfaction, then it would help the managers in
implementing such techniques and thus getting work done
from the employees.
➢ The study also deals with the present job situation.
41. ➢ Improving Motivation techniques leads to low employees’
turnover rate.
➢ Improving Motivation techniques will help the Air India in
improving he brand image.
➢ Employees will be more dedicated and loyal towards Air
India.
➢ The approach of study has been from the point of view of
developing and effective motivation program.
➢ These techniques can also be adopted for the blue collar
employees of Air India Limited
LIMITATIONS OF AIR INDIA LIMITED
❖ Few of the respondents hesitated to give the correct
information.
❖ Few of the employees hesitated to give their opinion against
the management.
❖ The study does not cover, what is the motivation factor for
each employee.
❖ The study pertains to the employees of western region
Mumbai only. The findings of the study cannot be
generalized to employees of other region and out station.
❖ The period of the study was limited.
❖ The validity of the study depends on the reliability of
Primary data.
RESEARCH METHODOLOGY OF AIR INDIA LIMITED
The study has used sample survey; the type of sampling used
is convenience and judgmental sampling. The sample comprises
of 60 white collar employees working in both Erstwhile Indian
Airlines and Erstwhile Air India. Participants were selected
through the HR department pool (121 permanent employees
presently being working in HR department).
42. Measures: -
A demographic form was filled by the participants,
which include information about age, gender, qualification, length
of service and designation.
The questionnaire was divided into two parts which
represents various questions on Motivation and Job satisfaction.
The participants were expected to rate their answers on a Likert
format response scale. At last any suggestion or expectation of the
employees from the company was also asked.
Procedure: -
The questionnaires were distributed to respondents
and they completed the questionnaire manually. The data was
collected individually. At the beginning of each questionnaire, an
overview was provided. All respondents must fill a demographic
form which includes information on age, gender, qualification,
length of service and designation. Participation was voluntary and
the responses were anonymous. The respondents were informed
about the purpose of the research. As with all study participants,
they were assured that all information would be kept confidential.
First Percentage method was applied on the various
factors of motivation included in the motivation part of the
questionnaire. And they for the job satisfaction part, Hypothesis
was formed for each question to see if it’ related to overall job
satisfaction.
STATISTICAL ANALYSIS
After the collection of data, the answer sheets are scored.
Then, the data are tabulated and Pie Chart is formed using some
techniques: -
43. Table I: -
Table showing response of employees as to whether they find
opportunity for advancement in Air India Limited
RESPONSE NO. OF
RESPONDENTS
PERCENTAGE
Strongly Agree 0 0
Agree 13 22
Neutral 8 13
Disagree 27 45
Highly Disagree 12 20
Total 60 100
Inference: -
The table clearly shows that majority of the employees (i.e.
45%+20%=65%) do not find the opportunity for their career
growth and only 222% employees experiences the opposite.
Chart 1 – Pie chart showing the above responses-
20%
22%
13%
45%
0%
No Of respondents
Strongly agree Agree Neutral
Disagree Highly Disagree
44. Table 2: -
Table showing response of employees as to whether timely
training programs are provided to them
RESPONSE NO. OF
RESPONDENTS
PERCENTAGE
Strongly Agree 2 3
Agree 25 42
Neutral 9 15
Disagree 18 30
Highly Disagree 6 10
Total 60 100
Inference: -
The above table indicates that 45% of employees agree that
timely training programs are provided, but at the same time 40%
employees show contradiction to this. The difference between the
two is not too much and can be considered equal.
Chart2- Pie chart showing the above responses-
3%
42%
15%
30%
10%
No Of Respondents
Strongly Agree Agree Neutral Disagree Highly disagree
45. Table 3 –
The showing responses of employees as to superior always
recognizes their work
RESPONSE NO. OF
RESPONDENTS
PERCENTAGE
Strongly Agree 6 10
Agree 40 67
Neutral 6 10
Disagree 6 10
Highly Disagree 2 3
Total 60 100
Inference: -
The above table clearly points out that majority of the employees
(77%) agree that their supervisors always recognize their work.
Chart 3- Pie chart showing the above responses-
10%
67%
10%
10% 3%
No of Respondents
Strongly Agree
Agree
Neutral
Disagree
Highly Disagree
46. Table 4-
Table showing responses of the employees as to guidance and
instructions from their superiors always inspire them to work.
RESOPNSE NO. OF
RESPONDENTS
PERCENTAGE
Strongly 2 3
Agree 29 49
Neutral 21 35
Disagree 9 10
Highly Disagree 2 3
Total 60 100
Inference: -
From the table, it can be stated that more than 50% of employees
agree that they are inspired from their superior’s guidance and
instructions. But at the same time we cannot deny that 35%
employees are Neutral to these questions.
Chart 4-
3%
49%
35%
10% 3%
No of respondents
Strongly Agree
Agree
Neutral
Disagree
Highly Disagree
47. Table 5: -
Table showing responses of the employees as to whether they are
valued equally in the organization-
RESPONSE NO. OF
RESPONDENTS
PERCENTAGE
Strongly 10 17
Agree 29 48
Neutral 10 17
Disagree 11 18
Highly disagree 0 0
Total 60 100
Inference: -
Here, majority of the employees 965%0 agree to this fact that
they are valued equally in the organization
Chart 5-
17%
48%
17%
18%
0%
No of respondents
Strongly
Agree
Neutral
Disagree
Highly Disagree
48. AIR INDIA LIMITED CONCLUSION OF EMPLOYEES
Employee motivation and job satisfaction cannot be isolated,
but they complement each other and respond to different
organizational variables like productivity and working conditions.
Employee and job satisfaction depends on people’s insight and
behavior at the work place which is driven by a set of intrinsic,
extrinsic need and by their view of numerous job-related and
organization related attitudes.
They study of motivation with relevance to job satisfaction
has given me an opportunity to have a sight of the function of
Personnel/HR department of Air India, western region, Mumbai
as well as to understand the relationship between various such
motivation factors and job satisfaction. Here it has been found
that Air India Limited is concerned about its employees and doe
all possible things to keep them motivated as they are the real
assets of the organization.
The experience, exposure and knowledge acquired during
the study period will go a long way in both the personal and
professional career.
AIR INDIA LIMITED SCOPE FOR FUTURE
This study can be implied in any of the industry as a tool for
identifying the employee perception and belief towards the
Motivation factors in an organization. One can know the
requirements of the employees and introduce various motivation
tools. Company can identify the various tools leading to job
satisfaction and can use those as retention tool for retaining
employees in the organization. This study can be used in the
future for analyzing the Motivation techniques and its impact on
Job satisfaction in different industries as we have done in Air lines
industry.
This can also be used for various other Airlines, which would
help in getting knowledge about motivation policies of those
airlines. This study can also be taken as a reference for studying
49. various other provisions like health, safety and welfare,
performance appraisal and can be studies with reference to job
satisfaction.
“All this data belongs to Air India Limited company which
comes in public sector. The way there is employee’s
satisfaction in Air India Company, they have some scolding
for the job.”
(Employees and Customers in Air India Limited)
50. SCOPE OF PERFORMANCE APPRAISLA
➢ Provides Performance Feedback
➢ Decides Employee’s Compensation
➢ Validation of Selection Process
➢ Identify Employee’s Training Needs
➢ Motivates Employees
➢ Helps in Promotion and Demotion
➢ Facilitates Communication
1. PROVIDES PERFORMANCE FEEDBACK
Performance appraisal helps managers in providing
feedback about performance to its employees. Feedback
enables employees to avoid their mistakes and improve
their productivity. Employees are interested in knowing the
result of their performance. They feel satisfied and happy by
knowing it. It motivates them to perform better in the future
for getting better pay. Through performance appraisal
managers are able to evaluate the employee’s performance
and deliver their feedback to them accordingly.
2. DECIDES EMPLOYEE’S COMPENSATION
Providing the right remuneration to employees is important
for every organization. It should be paid fairly to all of them
according to their efforts, performance and skills.
Performance appraisal makes it easy to measure the
performance of employees an award them accordingly.
Employees performing well are awarded better incentives
and increment in their pay
51. 3. VALIDATION OF SELECTION PROCESS
Performance appraisal enables the validation of the
selection process. Selecting a proper selection channel is a
must for recruiting better human resources. Recruitment
and selection require lots of organization time, effort, and
money.
Validation of a selection procedure helps in finding out its
positive and negative aspects and thereby helps the
company in selecting a suitable tool for selection. Different
tools like application blanks, psychological tests, interviews,
etc. used in the selection process help in measuring the
candidate’s performance and selecting the right candidate.
4. IDENTIFY EMPLOYEE’S TRAINING NEEDS
Training and development programs help in improving the
productivity of manpower. It should be provided by the
organization to its employees from time to time to improve
their skills and confidence level.
Performance appraisal helps supervisors in detecting the
decencies in the performance of employees due to a lack of
skills and knowledge. These problems can easily overcome
by providing proper training and education to them.
Through performance, appraisal companies are able to
design better training programs for their employees.
5. MOTIVATES EMPLOYEES
Performance appraisal helps in motivating employees
toward their targeted roles and objectives. Employers are
able to evaluate the efficiency of their workers through this.
It can be ensured whether they are working efficiently or not
towards the achievement of organization objectives. When
employees know that their result will be checked it will
motivate them to perform well.
52. 6. HELPS IN PROMOTION AND DEMOTION
Giving of promotion and demotion to employees is an
important decision to be taken by managers. Performance
appraisal helps them in taking these decisions fairly and
properly without biases. Through performance appraisal,
they are able to measure the performance of all and are able
to judge easily who is performing well and who is not.
Employees performing their task efficiently are promoted to
higher post whereas if they are found inefficient they are
demoted to lower post.
7. FACILITATES COMMUNICATION
Performance appraisal facilitates the efficient flow of
information within the organization between employers and
employees. Employers are able to understand their
subordinate’s nature by measuring their output. They are
able to find out their employees strengths and weakness and
suggest them ways to overcome their deficiencies.
This develops better employer-employee relations which
create better trust and confidence among them. Employers
regularly communicate with their feedback about their
work. This way performance appraisal develops a better
network for communication between the two which help in
clearing all doubts and queries.
53. FEATURES OF PERFORMANCE APPRAISAL
➢ EVALUATES PERFORMANC
➢ SYSTEMATIC PROCESS
➢ BIAS FREE
➢ CONTINUOUS APPROACH
➢ PERIODICITY
➢ BASED ON DEFINITE PLAN
➢ NOT JOB EVALUATION
1. EVALUATES PERFORMANCE
It is process which evaluates the performance of peoples
working within the organization. Performance appraisal
detects all strengths and weaknesses of employees and
suggests ways of enhancing their performance.
2. SYSTEMATIC PROCESS
Performance appraisal is a systematic process of tracking
the performance of employees. It follows a series of well-
defined steps for finding out he areas where employees are
lacking and where they possess good skills.
3. BIAS FREE
It is performed without any biasness by evaluator within the
organization. He should use fair and equitable methods for
performance evaluation without getting influenced by
anyone.
4. CONTINUOUS APPROACH
This is an ongoing approach that is followed till organization
continuous its operations. Organizations need to evaluate
the performance of their employees on a continuous basis
for maintaining the desired productivity.
54. 5. PERIDICITY
Performance appraisal is done periodically by organization
that is in 3 months of 6 months. Evaluation is done
continuously form time to time by evaluators. Those show
the changes in employee performance at different period of
time.
6. BASED ON DEFINITE PLAN
This method works in accordance to the well-defined plan
for tracking the performance. There is a defined process
comprising of many steps which are followed in a systematic
way for performing performance appraisal.
7. NOT JOB EVALUATION
Performance appraisal and job evaluation are two distinct
terms. Performance appraisal is the one which evaluated the
performance level of employees whereas job evaluation is
concerned with analyzing the value and worth of jobs within
the organization.
USING PERFORMANCE APPRAISAL TO PROVIDE
SUPERVISORY SUPPORT
Performance appraisals are also considered as motivational tools
due to the ability to help identify employees’ strengthen and help
capitalize on them through support. At the same time, weaknesses
are identified and measures put in place in forms of supervisory
support that is necessary in helping the employee to improve.
Bases on findings from a study by Cory, Ward and Schultz (2007),
employees who receive support after an appraisal process
indicate that such support contribute significantly towards
creation and generation of ideas. The ability to motivate through
performance appraisal is however found to be largely dependent
on how the results of the process are used. In instances where the
results are used to punish mistake, innovative behavior is greatly
discouraged.
55. Performance appraisal results which consider mistake as
learning opportunities have on the contrary been found to
encourage creativity among employees. These assertions are
supported by an empirical study by Krause (2004), who studied
the impact of supportive supervisory behavior on innovation
based organization such as manufacturing plants and R&D
organizations. The study found out that employees are more like
to deviate from ordinary or routine behavior to unconventional
behavior as well as implement innovative ideas if they believe
their supervisors will not penalize them.
MOTIVATION THROUGH PROVISION OF FEEDBACK
Providing feedback is considered as one of the most common
justification for an organization to put in place a performance
appraisal system. As Swan (2012) further explains, it is through
the process and uses that information as a reference point to
improve their future performance. In this regard, the feedback
given through performance appraisal ensures that the employer’s
expectations are clearly communicated. Feedback is in this case
considered as important tool for increasing employee morale and
motivation by pointing out areas where employee did something
especially good. Specifically, the positive feedback motivated the
employee to do better. In case of cases where the employee’s
performance was below expectation the fair criticism from the
feedback helps address the deficiencies and failures and hence
reinforce appropriate behavior in terms of better performance.
Data Analysis and Interpretation
Research data on performance appraisal and employee
motivation was collected through the questionnaire method. In
addition, an interview was held with the HR manger in order to
gain rich insights on the case organization’s performance
appraisal system as well as employee motivational practices. The
survey data was entered in the SPSS software for analysis through
56. regression analysis. The qualitative data was analyses for key
themes and used to augment responses from the survey.
Demographic Information
Figure 1: Gender
The pie-chart in figure 1 shows that males (56%) prevails females
(444%) from the total number of respondents in the study. These
proportions however maintain a relative balance between the two
genders.
Age Groups: -
Figure 2: Age Group
The pie-chart in figure 2 show that the simple random sampling
technique made it possible for respondents from varying age
group to take part in the study hence a more representative study.
Male
56%
Female
44%
Gender
18-25 years
24%
26-35 years
43%
Over 36
years
33%
Age Group (n=45)
57. Departments: -
Figure 3: Respondent’s Department
As can be seen from the bar graph in figure 3 the study involved
participants from different department within the organization.
Notably, the employee from the organization’s sales department
represented the largest proportion (36%) of respondents.
EFFECTIVENESS OF PAS AND MOTIVATION AT SHINE
COMMUNICATIONS
Regression Model: -
Model Summary
Model R R Square Adjusted R
Square
Std. Error
of the
Estimate
1 .882a .778 .750 .63314
a. Predictors: (Constant) Rewards motivates me better than recognition,
Performance appraisal is well assessed by supervisor, Self-assessment
would be effective, Importance of performance appraisal, PA based on
explicit goals is most effective
0%
10%
20%
30%
40%
HR Accounts R&D Sales Others
Department (n=45)
Department (n=45)
58. Practices for supporting public service motivation
I. Transformational or value-based leadership: -
Strong, effective leadership is consistently shown to be a
major driver of employee satisfaction and commitment.
However, transformational leadership goes further than
effective change management, good communications and
other characteristics of good leadership. Value-based
leadership requires the articulation of public service values
and the communication of goals and objectives consistent
with those values. It is also necessary that the leader
themselves model these behaviors’, leading by example in
exhibiting values that transcend self-interest, and proving
themselves to be trustworthy.
II. Person-organization fit: -
Person-organization fit theory suggests that performance is
enhanced when an employee’s values match organizational
goals, values and culture. Similarly, in situations where they
do not, turnover rates will be high. To be credible, all HR
practices need to be consistent with the message that ‘public
service matters’. Thus, recruiting individuals who are not
only task qualified but who hold values consistent with the
organization’s mission matters to both the individual’s
future job satisfaction and, most likely, their contribution to
the organization. Similarly, induction programmers, training
and development and performance appraisal need to reflect
and promote public service values. In particular,
performance management systems need to be based not just
around the specific role of an employee but should also
review performance against behaviors’ critical to an
effective public service such as customer awareness,
collaboration and accountability.
III. Effective goal setting and job design
Given that many people are attracted to public service work
by the general motivation to serve and make a positive
difference in others’ lives, it is essential that what is referred
59. to as ‘the line of sight’ between their values and the task they
are required to fulfill is not lost. While clearly this is more
feasible in service delivery work, showing all employees
how their contribution matters to the overall objectives of
the organization is critical to their sense of motivation.
IV. Creating a supportive work environment
This is a particularly wide-ranging concept, with factors
including the nature of informal relationships, the quality of
communication, the way conflict is managed, the collegiality
of the organization and, not least, the incentive systems, all
helping to shape the relationship between an employee’s
public service motivation and their performance. At a basic
level, aligning incentives with intrinsic motivations is an
important element in managing the public service work
environment. As a bottom line, public service salaries must
compete with those available in the private sector. Beyond
that, pay increases linked to promotion appear to
sufficiently motivate high performers without the negative
down-side evident with performance related pay, whereby
employees’ sense of shared purpose and ‘esprit de cops’ are
damaged.
FINDING
The above findings are largely consistent with the literature
reviewed in the study. Kominis and Emmanuel (2007) for
instance consider promotions and pay for performance as one of
the most effective ways of rewarding and motivating employees.
Long and Shields (2010) also consider rewards and recognition
based on achieved job description goals as one of the ways that
help trigger innovative behavior as an outcome of motivation. In
additions, the use of performance appraisals to identify employee
strengthens and weaknesses is considered as an effective way of
motivating employees through supervisory support.
60. The study also shows that employees differ in their preference for
rewards following a performance appraisal results to rewards
and incentives. This could contribute significantly towards
boosting of employee motivation as a result of improved level of
satisfaction.
CONCLUSIONS
Public service motivation relates to the notion that individuals are
attracted to work in the public service because it affords them the
opportunity of doing good for others and for society. Over the
past two decades interest in the concept has grown across
academic disciplines with a growing body of research evidence
pointing to its relevance in career choice and its impact on
performance.
Public service motivation is not the only or even the most
important criterion for individuals in choosing to take up or
remain in public service employment. Recent research cites the
superseding importance of good, or at least market-rate, levels of
pay and security of tenure. The economic situation in the country
and long-standing cultural issues which impact on the prestige
and social standing of public officials are likewise relevant.
However, public service motivation also matters, and among the
intrinsic reasons that come into play when individuals choose
where to work it is highly significant.
That public service motivation matters in choosing employment
points to the fact that the public service is different. As the OECD
often emphasize, the fundamental purpose of the public service is
government, not management. Thus care needs to be taken in
adopting private sector practices into the public service,
particularly to the extent that reforms impact on the intrinsic
motivation among public service employees to serve others.
Against a backdrop of global recession, governments in
developed countries are increasingly seeking to reform the public
service, reducing cost and increasing efficiency and effectiveness
in the delivery of services. These changes are necessary. However,
this report cautions against ignoring or minimizing the impact on
61. employee motivation and engagement of changes in terms and
conditions.
In circumstances where extrinsic motivations are being
significantly impinged on, as is the case currently in the Irish
public service, it is critical that managers are very aware of the
importance of fostering and supporting the intrinsic motivations
of employees. This report presents four central themes which
help organizations develop an organization culture grounded in
public service motivation.
Concluding comments
India is currently in the grip of the most serious economic
recession in its modern history which is having profound effects
on the economy and society. The public service is being
significantly affected by the actions taken in response to the fiscal
crisis. Equally the public service has a major role to play in
recovering from the crisis and ensuring that in the future the Irish
public service is fit for purpose.
Debating the pay cuts and changes in terms and conditions and
the extent to which they are necessary and/or fair is not the
purpose of this report. Rather it is to highlight the importance of
having regard for the impact of contraction and reform on
employee motivation and engagement. In this respect evidence
from Roche et al (2011) is a source of concern with ‘pay and
numbers’ identified as the dominant concern of Irish HR
managers.
In the short-term, both because it is consistent with good public
service management but also because it may alleviate some of the
negative impact on motivation and engagement of diminished
terms and conditions, it is essential that public service managers
develop and support practices appropriate to a public service
context. Value-based leadership, a supportive work environment,
and organization goals and job characteristics that reflect
employees’ public service motivation have been shown to have a
positive impact on morale and performance.
62. In the longer-term, public service managers also need to reflect
on what is distinctive about public service work and the
importance of a public service ethos that undoubtedly places
obligations and responsibilities on state officials beyond those
required of private sector employees. Furthermore, it is
important to remember that any changes in the terms and
conditions, in the very broadest sense, under which public
servants work, impacts on the image and identity of public
servants and raises the question of whether this new image will
motivate people to enter public service.
63. REFERANCE
Boyle R. (2012). Public Service trends 2012. Dublin: Institute of
Public Administration
Giauque D et al (2011). Putting Public Service Motivation into
context a Balance between Universalism and Particularize.
International Review of Administrative Sciences, 77 (2), 227-242
Attorney A (2007) Performance Appraisal Hand book. New York:
Nolo Publishers.
Brown, M, & Heywood, J. S. (2005). Performance appraisal
system: determinants and change. British Journal of Industrial
Relations, 43(4), 659-679.
BIBLOGRAPHY
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