this project done at the vaibhav plasto printing and packaging pvt. ltd.

1. 1 | P a g e
A PROJECT REPORT
ON
“PERFORMANCE MANAGEMENT SYSTEM”
WITH REFERENCE TO
VAIBHAV PLASTO PRINTING AND PACKAGING PVT.LTD.
J- 2, Hingna, MIDC, Nagpur, Maharashtra 440016
SUBMITTED TO
R.T.M. NAGPUR UNIVERSITY
IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR
DEGREE OF
MASTER OF LABOUR STUDIES (MLS)
SUBMITTED BY
KAVITA S. FULMALI
MLS-PART - I
2022-2023

2. 2 | P a g e
DECELERATION
I KAVITA S. FULMALI student of Late Narayan Meghaji Lokhande
Maharashtra Institute of Labour Studies, Nagpur, hereby declare that the
project report entitled “PERFORMANCE MANAGEMENT SYSTEM”
with reference to VAIBHAV PLASTO PRINTING AND PACKAGING
PVT.LTD. from 30st
JANUARY 2023 To 24th
MARCH 2023, is my original
work, it presents my own words and ideas. I have adequately cited and
reference the original sources.
The sources of material and data used in this study have been duly
acknowledged.
This research work is independent and genuine and it is carried out by me under
the guidance of Dr. Atul Naubade during the academic Session 2022- 2023.
Place: Nagpur
Date:24th
Mar 2023

3. 3 | P a g e
ACKNOWLEDGEMENT
I KAVITA S. FULMALI express my deep sense of gratitude and hearted to
my guide Prof .K. E. Patil for this valuable guidance through this project work,
which it possible for me represent this project. I take this movement to thank
Dr. Atul Patil for providing the entire infrastructure, which could make this
project possible. I sincerely acknowledge each and every one at VAIBHAV
PLASTO PRINTING AND PACKAGING PVT. LTD., NAGPUR who
provided me grater amount of help which at the end enhanced my knowledge at
higher level while completing this project report.
I sincerely thank Mr. Irfan Shaikh Sir (HR/IR Head) and Mrs. Swati
Shivankar Mam (HR) at VAIBHAV PLASTO PRINTING AND
PACKAGING PVT. LTD., NAGPUR, for the valuable time through which I
gained insights about the project and without whom this report would not have
been successful. I am grateful to HR department for supporting me in all
possible manners while completing the project.
Place: Nagpur
Date: 24th
Mar 2023

4. 4 | P a g e

5. 5 | P a g e
INDEX
SR. NO. PARTICULARS PAGE NO.
1 Introduction 6
1.1 History of Performance Management 6
1.2 What is Performance Management? 7
1.3 Definitions of Performance Management 9
1.4 Purpose of Performance Management 10
1.5 Need to study 11
2 Objective 12
3 Principles of Performance Management 13
4 Concerns of Performance Management 14
5 Scope of Performance Management 16
6 Benefits of Performance Management 17
7 Defining Performance Management 19
8 Factors affecting Performance 20
9 Process for managing Performance 21
10 Meaning of Performance Management 21
11 Contribution of PM System 25
12 Disadvantages of poorly implemented 50PM System 26
13 Characteristics of an Ideal PM System 28
14 Performance Review 29
15 Company Profile 32
15.1 Infrastructure 33
15.2 Vision & Mission 36
15.3 Silent Features 37
15.4 Applications & Advantages 38
15.5 Policies Run at Vaibhav Plasto 39
15.6 Implementing the Policy 41
15.7 VPPPPL “OR3AM” System 42
15.7 VPPPPL Action Plan 43
15.8 VPPPPL Conditions for Performance Allowance 43
16 Research Methodology 44
17 Finding 47
18 Recommendation 48
19 Conclusion 49
20 Bibliography 50

6. 6 | P a g e
INTRODUCTION
A well designed Performance management system is extremely required in any
organization which is willing to grow. In the stage of globalization strategic HR
practices is very much required for every organization. Performance
Management helps to get through the competition within the companies.
Performance management includes activities to ensure that goals are
consistently being met in an effective and efficient manner. Performance
management can focus on performance of the organization, a department,
processes to build a product or service, employees, etc.
Performance management can be defined as the development of individuals
with competence and commitment, working towards the achievement of shared
meaningful objectives within an organization which supports and encourages
their achievement.
Michael Armstrong have defined performance management is a strategic and
integrated approach to delivering sustained success to organizations by
improving the performance of the people who work in them and by developing
the capabilities of teams and individual contributors.
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 in China an ‘Imperial Ratter’ whose task was to evaluate the
performance of official family. Centuries later, Ignatius Loyola established
a system for formal rating of the members of the Society of Jesus.

7. 7 | P a g e
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 appraised. 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 appraised 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 the ‘performance is best developed through
practical challenges and experience 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 and constructive way, and to aid in the creation of a
developmental plan.
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

8. 8 | P a g e
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, terms 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 functional perspective on
the subject of performance.
Despite this 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,

9. 9 | P a g e
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 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.
1.3 Definitions of performance management
Armstong & 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.
American Compensation Association (1996)
An effective performance management system aligns individual
performance with organisation’s mission, vision and objectives.
Hendry, Bardley and Perkins (1997)
A systematic approach to improving individuals and team performance in
order to achieve organizational goals.
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.

10. 10 | P a g e
Walters (1995)
Performance management is about ‘directing and supporting employees to
work as effectively as possible in line with the needs of the organization’.
Michael Armstrong and Angela Baron
‘Performance management is a process which contributes to the effective
management of individual and teams in order to achieve high levels of
organisational performance.’
1.4 Purpose of performance management
The basic Purpose
Two simple propositions provide the foundation upon which performance
management is built:-
(1)When people 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 purpose 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

11. 11 | P a g e
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 managed the support and
resources they need and how their talent should be used. The aim is to
achieve consensus because, as Fletcher put it, “our perceptions of what is
real and valid in the world depend on a consensus of shared beliefs”.
One of the purposes of performance management could be expressed as
being to clarify the psychological contract.
1.5 Need to Study
(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.

12. 12 | P a g e
(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.
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 individual’s performance expectation with organizational
goals.
OBJECTIVE
The objective of my project was to study the Performance Management System
of Vaibhav Plasto Printing and Packaging Pvt. Ltd. of so that I can evaluate its
benefits in the context of organization. Also to know that what is the
effectiveness of Performance Management System in Vaibhav Plasto Printing
and Packaging Pvt. Ltd. and to know the improvement area through the help of
the Performance Management System.

13. 13 | P a g e
Principles of Performance management
The principles of performance management have been well summarized
by IRS (1996) as follows:
 It translates corporate goals into individuals, teams, department and
divisional goals.
 It helps 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 industries 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.

14. 14 | P a g e
Performance management should operate in accordance with the following
ethical principles as defined by Winstanely and Stuart-Smith
o Respect for the individuals – people should be treated as ‘ends in
themselves’ and not merely as ‘mean to other ends’.
o Mutual respect – the parties involved in performance management
processes should respect each other’s need and preoccupations.
o Procedural fairness – the procedures incorporated in performance
management should be operated fairly to limit the adverse effect
on individuals.
o Transparency – people affected by decisions emerging from the
performance management process should have the opportunity to
scrutinize the basis upon which decisions were made.
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

15. 15 | P a g e
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 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.

16. 16 | P a g e
Scope of Performance Management
Performance management is about managing the organization. It is a
natural process of management, not a system or a technique. It is 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 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 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 and in taking action.

17. 17 | P a g e
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.
 Boost up the energy level of employee.
 Motivates employee to perform better and maintain the
consistency.
 Saves time and energy waste accordingly.
 Helps organization to get fit into this competitive world
 Helps to get the best and productive employee for the organization
 Promotes self-learning process
 Promotes the skills and efficiency of employees.
 Support total quality and customer service initiatives.
 Support culture – change programmes.
For HR :

18. 18 | P a g e
 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.
 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

19. 19 | P a g e
Defining Performance
If you can’t define performance, you can’t measure or manage it. It has been
pointed out by Bates and Holton that ‘Performance is a multi-dimensional
construct, the measurement of which varies, depending on a variety of factors’.
They also state that it is 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 argue that performance ‘is something that the person
leaves behind and that exists apart from the purpose’. Bernadin, Kane, Ross,
Spina and Johnson 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, carrying out, working out of anything ordered or undertaken’. This
refers to outputs and 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 believes that ‘performance is behaviour
they can be contaminated by systems factors’. A more comprehensive view of
performance is achieved if it defined as embracing both behaviour and
outcomes. This is well put by Brumbrach :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.

20. 20 | P a g e
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 HOD and team leaders.
 Team factors – the quality of support provided by colleagues.
 System factors – the system of work and facilities provided by the
organisation.
 Contextual factors – internal and external environmental pressures
and changes.

21. 21 | P a g e
Process for Managing Performance
It has been well said by Mohrman and Mohrman that managing performance is
‘running the business’. It is not a set of techniques and it is certainly not all
about ‘performance management system’. Kermally believes that ‘performance
management should support corporate strategy formulation and monitor value
drivers, 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 organisation, teams and
individuals perform well must be considered :
 The context of the organisation.
 Culture.
 Functionality.
 Job design
 Teamwork
 Organisational development
 Purpose and value statement
 Strategic management
 Human resource management
Meaning of Performance Management System
Performance management system 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
organization. If people do not perform organizations don’t survive. If people

22. 22 | P a g e
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 to
performance.
 Planning performance development activities.
 Creating ownership.
 Systematically deciding and communicating what needs to be done
(purpose, objectives, priorities and targets).
 A plan for ensuring that it happens (improvement, action or
service plans)
 Some means of assessing if this has been achieved (performance
measures)
 Information reaching the right people at the right time
(performance reporting) so decisions are made and actions taken.
A Performance Management System enables a business to sustain profitability
and performance by linking the employee’s pay to competency and

23. 23 | P a g e
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-ordinations, 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 : Job 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.

24. 24 | P a g e
 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 changes from negative, evaluative, one-sided
presentations to positive, planning meetings.
 Designing effective compensation and recognition systems : That reward
people for their contributions: The power of an effective compensation
system is frequently overlooked and downplayed in some employee
motivation-related literature.
Providing promotional- career development opportunities for staff : The
supervisor plays a key role in helping staff develop their potential. Growth
goals, changing and challenging job assignments and responsibilities and cross-
training contribute to the development of a more effective staff member.
Assisting with exit interviews to understand WHY valued employees leave the
organization : When a valued person leaves the company, it is necessary to
understand why the person is leaving. This feedback will help the company
improve its work environment for people. An improved work environment for
people results in the retention of valued staff.

25. 25 | P a g e
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 and 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 and valued
at work. This in turn is likely to increase employee’s self-esteem.
(3) Managers gain insight about subordinates : Direct supervisors and
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 and 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 and development are enhanced : The participants in the
system are likely to develop a better understanding of themselves and

26. 26 | P a g e
of the kind of development activities that are of value to them as they
progress through the organization.
(6) Administrative actions are more fair and appropriate : Performance
management system provide valid information about performance
that can be used for administrative action 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.
Disadvantages of poorly implemented PM systems
(1) Increased turnover : If the process is not seen as fair, employees may
become upset and leave the organisation. 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.

27. 27 | P a g e
(3)Wasted time and money : Performance management system cost
money and quite a bit of time. These resources are wasted when
system are poorly designed and implemented.
(4) 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.
(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 and job dissatisfaction : When the performance
assessment instrument is not seen as valid and the system is not
perceived as fair, employees are likely to feet increased levels of job
burnout and job dissatisfaction.
(8) Increased risk of litigation : Expensive lawsuits may be filed by
individuals who feel they have been appraised unfairly.

28. 28 | P a g e
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
element 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) Practically system : 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 expectations.
(5) Identification of effective and ineffective performance : The
performance management system should provide information that
allows for the identification of effective and in effective
performance.

29. 29 | P a g e
(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.
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 system 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.

30. 30 | P a g e
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 and Transfers, Layoff Decisions, Compensation Decisions,
Human Resource Planning, Career Development and Develop Interpersonal
Relationship.
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.

31. 31 | P a g e
Successful Performance Review Conversation Needs :
o Careful planning by manager and employee.
o Constructive communication.
o Collaborative attitude.
o Openness to giving and receiving feedback.
o High level of accountability – good follow-through on
commitments made during conversation.
o Openness to redefining or readjusting goals as needed ( for the
department and for the employee).

32. 32 | P a g e
COMPANY PROFILE
The brand with excellent quality, durability and customer satisfaction Plasto
with his fast growing group of companies in central India with a turnover of
more than 300 cr. and 1000 employees. Plasto has two major divisions first is
RC Plasto Tanks and Pipes Pct. Ltd. and second is Vaibhav Plasto Printing and
Packaging Pvt. Ltd.
Plasto Group, with its company Vaibhav Plasto Printing and Packaging Pvt.
Ltd. has emerged as a leading manufacturer in Flexible Printing and Packaging
Industry Vaibhav Plasto Printing and Packaging Pvt. Ltd. is in central India’s
largest and most advanced Flexible printing and packaging unit. With total
production capacity of more than 1000 ton per month offering complete
packaging solution.
The company operaters from a world class ISO 9001 : 2008, 22000 : 2005
certified manufacturing base set up in Nagpur.
Plasto Group targets a turnover of about 300 to 500cr. In financial year
2023-24.
It maintains completely hygienic work environment and follow good
manufacturing Practices products. Vaibhav Plasto cliental is spread across 27
states in India and Exporting to more than 5 country. Vaibhav Plasto is leading
supplier of PVC Heat Shrink Film, High shrinkage Sleeves for Shaped and
Curved Bottle, Cost and Pet Shrink Sleeve for High End Products, BOPP wraps
around Labels, Extrusion Coating, Solvent Less, LD Shrink Film , Mulch Film.
Plasto established in 1993 its incorporation date is 24 September 1993. The
company age is 29.5 years, and vaibhav plasto established in 2008. It’s been 15

33. 33 | P a g e
years of Vaibhav Plasto Printing and Packaging Pvt. Ltd. It has limited shares
and it have three current directors.
1. Vishal Agrawal
2. Vaibhav Agrawal
3. Neelesh Agrawal
There tag line is – “Skin of Your Product”.
THERE TOP EXPORT COUNTRIES ARE
 Thailand
 Shri lanka
 Afghanistan
 United States of America
 Australia
INFRASTRUCTURE
Vaibhav Plasto have developed a sound infrastructure that is equipped with
latest technology based machinery and multiple modern amenities. Our
facilities spread over a large area and is divided into multiple departments
based on the functions performed by each department. Our facility has enabled
them to serve the diverse demands of their customers with ease and is
instrumental in carrying out there day to day operations. With them steam lined
operations, they have been able to achieve maximum possible operational
efficiency.

34. 34 | P a g e
 Work Space - More than 1,20,000 sq.feet
 Rotogravure Printing Machine - 10 colour and 6 colour, Taiwan
 Solvent Base Lamination - 450 mtr/min, Italy
 Solvent less Lamination - 350 mtr/ min, Italy
 Extrusion Lamination - 200 mtr/min, Taiwan
 PVC Shrink Film Making Plant - 6 lines, Taiwan
 Multilayer Film Plant - IBC, India
 Pouching Machines - Three side seal, Zipper
 Cutting Machine
 Gluing Machine
 Slitting Machine
 Inspection Machine - 400 mtr/min, India
 Quality Control Lab – Opacity impact, Seal Strength, Surface
Treatment, Burst Strength, Refractive Index, MFI, Hot Oven, etc
Vaibhav Plasto Facility is divided into :-
 Product designing
 Sales & Marketing
 Manufacturing
 Logistics
 Administration
 Manufacturing
There trade market percentage are 20-40%. It’s infrastructure located at semi-
urban area – Vaibhav Plasto Printing and Packaging Pvt. Ltd. at J-2, Hingna,
MIDC, Nagpur, Maharashtra, 440016.

35. 35 | P a g e
Company USP :
 Primary Competitive Advantage
 Experienced R & D Department
 Large Product Line
 Good Financial Position & TQM
 Large Production Capacity
 Quality Measures & Testing Facilities

36. 36 | P a g e
VISION
To be a leading flexible Packaging Industry by 2025, providing Innovative
Packaging Solutions & putting Nagpur in the world map for its technology.
MISSION
To maximize net worth and profits by providing best quality of flexible
packaging products to national and International customers by using world class
integrated infrastructure through operations and business driven by safety,
systems, employee involvement, ethical practices honesty and commitment.

37. 37 | P a g e
SILENT FEATURES
 Centrally located in INDIA
 In house integrated film plant
 Auto tension PVC Film making machine from Taiwan
 Fully automatic registration control
 Experience & professional technical team.
 Turn Bar Printing.
All products involve printing on rotogravure press, wit
electronically engraved cylinder and slitting. This means optimum
utilization of production facility to serve product mix as per market
demands and value addition.
We are an innovative Group with excellent intelligence and talents.
Our group has commitments, expertise and synergy to fully satisfy
customers by providing them with our challenging services and
innovative packaging solutions. Our goal is to simplify, optimize,
satisfy and deliver all that our customer needs, and meet their
expectations successfully.

38. 38 | P a g e
APPLICATIONS
PVC heat shrinkable sleeves is one of the revolutionary products since it is
suitable for packaging in various kinds of industries such
 Food and Beverages
 Cosmetics
 Toys
 All kind of plastic
 Glass and Metal containers
 Household appliance
 Electronic
 FMCG and many others.
ADVANTAGES
 It can become an integral part of container.
 It has a very high aesthetic value because of the advantage of
reverse printing and transparency.
 Shrink Label can cover 360 degree of the container.
 It is an economical way of labelling, higher productivity with less
labour.

39. 39 | P a g e
POLICIES RUN AT VAIBHAV PLASTO
 Personal Protective Equipment Related – This policy is for to protect
product from likely causes of food safety hazards from employees
working in flexible packaging as well as for protecting their health.
For that employee have to follow some instructions like
1. all workers and staff to wear uniform provided by VPPPPL
2. uniform must be washed and clean,
3. wear protective equipment like hand gloves, head cap, snoods
for beards are worn at designation , etc.
 Jewellery Related Policy - To prevent harmful micro organism from
contaminated jewellery worn by employees or coins kept in there
pockets. For that employee have to follow some instructions like
1. Employee working in the ‘Jewellery prevent Area’, should not
come to work with jewellery.
2. Employee should deposit it at the office.
3. Use shirts without pockets.
 Visitors Related Policy – To prevent contamination of products from
visitors. For that employee have to follow some instructions like
1. Security guard will issue ‘visitors badge’ and direct visitors to
appropriate person in the office.
2. Marketing personal will ensure that customers are given PPEs
like cap etc. and will accompany them in production, etc.
 Fingers Nails Related Policy – To prevent contamination of flexible
film through broken nails, nail polish dirt and micro organisms

40. 40 | P a g e
collected beneath nails. For that employee have to follow some
instructions like
1. Workers working in production area should regularly cut their
nails.
2. During hand washing, workers should ensure that there is no
dirt accumulated beneath their nails.
3. Workers working in production area should not use nail polish.
 Spitting and Tobacco Policy – To prevent contamination of products
from spitting. For that employee have to follow some instructions like
1. Security guards to check employees whether they ae carrying
cigarettes, tobacco in any form.
2. If any cigarettes or tobacco in any from is detected, security
confiscate it and report the name of such employee to HRD.
3. Same goes with visitors also.
 Quality and Food Safety Policy – At VPPPPL is committed to
enhance customer satisfaction by providing high quality and safe
flexible packaging for food, confectionery and other products as per
the mutually agreed applicable food safety and other requirements of
the customer.
They are committed to comply with the requirement of competence,
quality management system, food safety management system, as well
as statutory and regulatory requirements, with continual improvement
and updating by collective engagement of and effective
communication with interested parties.
 HR Policy - HR policies are a written source of guidance on how a
wide range of issues should be handled within an organisation. They

41. 41 | P a g e
include a description of principles, rights and responsibilities for
managers and employees. Human resources policies are guidelines
for hiring, work processes, compensation, leave, training, promotion,
work environments, termination and other important functions. HR
policies also outline how an organization will treat its people and
property.
 Induction Policy
 Travelling Policy
 Incentive Policy
IMPLEMENTING THE POLICY
Each and every new employee will receive a copy of the policy and checklist
from the HR Department. Each will be asked to sign and return a form. Stating
that they understand the importance of policy and work related expectations
from them , that this brings.

42. 42 | P a g e
VPPPPL “OR3AM” SYSTEM
VPPPPL is Introducing New Performance System to all the Department of the
company. The Tagline of system is “OR3AM”.
The swot analysis of OR3AM is
O – Optimization
R – Rectification
R – Reduction
R – Replacement
A – Automation
M – Multitasking
Optimization : Understanding the skills required for a job, understanding an
employee’s strengths and weakness and then finding a way to leverage the
strengths and minimize the weakness to get the job done effectively.
Rectification : Correct and resolve employee performance problem.
Reduction : It is an action to reduce the number of employees in a department
organization changed workload.
Replacement : Who need to be replaced.
Automation : Solve though operational challenges such as quality management
system, Increase production, Reduce costs, Minimize errors, Improves
efficiency and all.
Multitasking :The employee should be multitasking.

43. 43 | P a g e
VPPPPL ACTION PLAN
 Week one and two
 Performing employee
How to identify the performing and non-performing staff by using the process.
 Week three and four
 December month
 Reduction
 Replacement
 Automation
 Multitasking
 Feb and March
All others staff should be trained and multitasking and have ability to work
faster, must be streamlined in the time frame.
VPPPPPL CONDITIONS FOR PERFORMANCE ALLOWANCE
1. Report on MONTHLY production with job wide wastage analysis and
abnormal wastage explanation for P2, P3 & P4.
2. Improvements in department process related with full explanation of
implementation.
3. Minimum TWO training to be given to printing CREW.
4. Viscosity check, spray bottle usage for cylinder cleaning, M/C running at
time of shift handover, M/C cleaning as per fire safety, shift reliving
report, IQP reply and sop of ISO/ BRC.

44. 44 | P a g e
5. 5s compliance, so rolls to be kept.
6. Production SMS.
7. Key Responsibility Area and Key Performance Indicator.
8. Medical insurance
9. TDS.
10. Revision of CTC as per central, state or local Authorities directive.
11.Consent, etc.
RESEARCH METHODOLOGY
Title of the Research study
“An Analytical Study of Performance Management System as tool for
Effective performance”
Duration of the Research study
This study was carried out for duration of 54 days.
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 mental and physical effort applied to tasks- and can be
judged apart from results.
Management : Management is the art of getting things done through and with
people in formally organized group.

45. 45 | P a g e
System : An organized, purposeful structure that consists of interrelated and
interdependent elements. These elements continually influence one another to
maintain their activity and the existence of the system, in order to achieve the
goal of the system.
Rational 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 employees feedback as well as expectations
and experiences with regard to selected performance management 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.
Scope and coverage of Research Study :
The research was conducted in Vaibhav Plasto Printing and Packaging Pvt. Ltd.
The research study was focus on performance management system in VPPPPL.
It also measure and evaluate the effective performance on the basis of
employee’s overall awareness, expectations and satisfaction or dissatisfaction
as an outcome of offering various kinds of incentives and employee’s morale as
offered by the performance management system of VPPPPL.

46. 46 | P a g e
Research design
The research design of this study considering its objectives, scope and coverage
was exploratory as well as descriptive in nature.
Sources of Information
1. Primary Data :
The primary data has been obtained from the HR Department and senior
executive of VPPPPL.
2. Secondary Data :
The secondary data has been obtained from Google – from various web sites,
and from some research thesis available on Google.
Limitations of the Research Study
o The researcher has been use selected statistical tools which are relevant
to research study and thus having limited generalizability.
o Sometimes you won’t get enough information.
o The time factor in collecting the responses as in conducting the research
study has limited factor.

47. 47 | P a g e
FINDING
 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 feel comfortable with conducting performance
review.
 All HR professional 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 respondents told that increase productivity is major
element of business strategy at present.
 All HR professional are told that they are some of the extent
satisfied that they give consistent and fair ratings to members of
their team.

48. 48 | P a g e
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 and
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 and 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.
 Organization can also use another methods of performance appraisal for
assessing performance of employee’s.

49. 49 | P a g e
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 and objectives of
the organization.

50. 50 | P a g e
BIBLIOGRAPHY
 Managing People & Performance: Fast Track to Success
David Ross . 2012, Book.
 Fajana, S. (2002) : Human Resources Management : An
Introduction. Lagos Laboffin and Company.
 Google websites – slideshare.com, Random search related to the
topic.
 www.vaibhavplasto.com
 www.vaibhavplastimoulds.com