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A PROJECT REPORT
ON
“AN ANALYTICAL STUDY OF PERFORMANCE
MANAGEMENT SYSTEM AS A TOOL FOR EFFECTIVE
PERFORMANCE : A STUDY OF SELECTED EMPLOYEES
IN VIJAYJYOT SEATS PRIVATE LIMITED (SAMSONS
GROUP OF COMPANY)”.
Submitted by
MR. IRSHADHUSEN INAYATHUSEN SHEKH
ROLL NO: HR4000094
in Partial Fulfillment for the Award of the Degree of
MASTER OF COMMERCE
(SPECIALIZATION IN HUMAN RESOURCE MANAGEMENT)
Under the Guidance of
Dr. Umesh R. Dangarwala
Associate Professor
Department of Commerce and Business Management
Faculty of Commerce
The Maharaja Sayajirao University of Baroda

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Vadodara
09TH MAY 2014
BONAFIDE CERTIFICATE
Date:_______________
This is to certify that this Project Report entitled “An Analytical Study of Performance
Management System as tool for effective performance: A study of selected employees in
Vijayjyot Seats Private Limited” which is to be submitted to the office of the Registrar
(Examination), The Maharaja Sayajirao University of Baroda, has been prepared by Mr.
Irshadhusen Inayathusen Shekh (Exam Seat No. HR4000094) as a partial fulfillment of
the award of the Master of Commerce Degree with specialization in Human Resource
Management for the Academic year 2013-14 for the evaluation in lieu of the Annual
Examination to be held in March/April, 2014.
He has carried out this work under my personal supervision and guidance.
(Signature of the Guide)
Dr. Umesh R. Dangarwala
Associate Professor
Department of Commerce and Business Management
Faculty of Commerce,
The Maharaja Sayajirao university of Baroda,
Vadodara.

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ACKNOWLEDGEMENT
At the outset, I would like to articulate this project as small journey which was a remarkable
learning experience for me. The successful completion of this project is only because of the
extraordinary support, guidance, counselling and motivation from my respectable guides, staff
of the M.S. University, and my organization. This journey was also could not be completed
without support of my family and friends.
I firstly express my hearted thankfulness to Associate Professor and Project Guide Dr. Umesh
R. Dangarwala in this project who made me felt his presence during all those crucial and
decision making moments this project went thorough. The deep insight in to the subject given
by him are believed the root caused in completing this project must qualitative and timely.
Also, I express my deep gratitude to Mr. Bhavin Helaiya & Manubhai Solanki (HR
Executives), my training officer and mentor for this project. Thorough the support provided
by him, I have imparted knowledge on the avenues which this project have opened and
explored . His directions in making me think about unique conceptual and practical aspects of
Performance Management System which has lifted this project at this stage of successful
completion.
I extend my gratitude to Vijayjyot Seats Private Limited and My Manager and all my
colleagues , friends for their encouragement, support, guidance and assistance for undergoing
industrial training and for preparing the project report.

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CERTIFICATE OF ORIGINALITY
Date
:_______________
I, Mr. Irshadhusen Inayathusen Shekh (Exam Seat No. HR4000094), the undersigned
hereby declare that the project report entitled, “An Analytical Study of Performance
Management System as tool for effective Performance: A study of selected employees in
Vijayjyot Seats Private Limited” submitted in partial fulfillment for the award of the Master of
Commerce Degree with specialization in Human Resource Management for the Academic year
2013-14 for the evaluation in lieu of the Annual Examination to be held in March/April, 2014
is my own work and has been carried under the guidance of Dr. Umesh R. Dangarwala.
The work is an original one and has not being submitted earlier to this university or to any
other institution/ organization for fulfillment of the requirement of a course or for award of
any Degree/ Diploma/ Certificate. All the sources of information used in this Project Report
have been duly acknowledged in it.
(Signature of the Student)
Mr. Irshadhusen Inayathusen Shekh
Exam Seat No: HR4000094
Master of Commerce (Specialization in Human Resource Management)
Department of Commerce and Business Management
Faculty of Commerce,
The Maharaja Sayajirao University of Baroda,
Vadodara.

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PREFACE
Today we are at the doorstep of 21st Century, competition at the various levels is increasing
day by day. New and new developments are taking place and these days in all fields all over
India to make the life of the people more comfortable a luxurious.
Those in order to survive in market on should practical as well as theoretical knowledge about
all different fields existing market. In today’s competitive world edges is more significant than
theoretical knowledge. Today practical training and knowledge also plays an important role.
Master education brings its students in direct contact with the real corporate world thorough
industrial training. The Master programmes provides its students with an in depth study of
various managerial activities that are performed in any organization.

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DECLARATION
I hereby declare that the entire work embodied in the Project Report entitled “An Analytical
Study of Performance Management System as a tool for Effective Performance at
Vijayjyot Seats Private Limited", has been carried out by me under the supervision and
guidance of Dr. Umesh R. Dangarwala, Associate Professor , Department of Commerce and
Business Management, Faculty of Commerce, The Maharaja Sayajirao University of Baroda,
Vadodara. The matter presented in this report incorporates the results of independent
investigations carried out by me. To the best of my knowledge, no part of this report has been
submitted for any Degree or Diploma to The Maharaja Sayajirao University of Baroda or any
other University/Institution in India or Abroad.
Date: 09/05/2014 Mr. SHEKH IRSHAD .I.
Place: Vadodara

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TABLE OF CONTENTS
CHAPTER
NUMBER
TITLE OF THE CHAPTER PAGE
NUMBER
Bonafide Certificate
Acknowledgements
Certificate of Originality
Declaration
Student – Project Guide Interaction Report
1 INTRODUCTION : 9 to 24
1.1 History of Performance Management 10
1.2 What is Performance Management 11
1.3 Definitions of Performance Management 12
1.4 Aims of Performance Management 13
1.5 Principles of Performance Management 14
1.6 Concerns of Performance Management 15
1.7 Scope of Performance Management 15
1.8 Benefits of Performance Management 16
1.9 Defining Performance 17
1.10 Factors affecting Performance 17
1.11 Process for Managing Performance 18
1.12 Meaning of Performance Management System 18
1.13 Contribution of Performance Management System 21

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1.14 Disadvantages/ Dangers of Poorly implemented PMS 21
1.15 Characteristics of an Ideal PMS 22
1.16 Performance Review 23
1.17 Tips for Successful Performance Review 23
1.18 Successful Performance Review Conversation Needs 24
1.19 Different techniques of Performance Review 24
2 COMPANY PROFILE 26 to 32
3 REVIEW OF LITERATURE 33 to 42
4 RESEARCH METHODOLOGY 43 to 47
4.1 Title of the Research Study 44
4.2 Duration of the Research Study 44
4.3 Basic Terms of Present Research Study 44
4.4 Rationale of the Research Study 44
4.5 Scope & Coverage of Research Study 44
4.6 Objectives of Research Study 45
4.7 Research Design 45
4.8 Sources of Information 45
4.9 Sampling Design 45
4.10 Data Collection, Analysis & Interpretation 46
4.11 Significance of Research Study 46
4.12 Limitations of Research Study 46
5 DATA ANALYSIS & INTERPRETATIONS 48 to 92
6 FINDINGS, SUGGESSTIONS AND CONLUSION 93 to 96
BIBLIOGRAPHY 97
QUESTIONNAIRE 99

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CHAPTER -1
INTRODUCTION

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CHAPTER-1
INTRODUCTION
1.1 History of Performance Management :
No one knows precisely when formal methods of reviewing performance were first
introduced. According to Koontz (1971), the emperors of the Wei dynasty (AD 221-265)
in China had an ‘Imperial Ratter’ whose task was to evaluate the performance of the
official family. Centuries later, Ignatius Loyola(1491-1556) established a system for formal
rating of the members of the Society of Jesus (the Jesuits).
The first formal monitoring systems, however, evolved out of the work of Federick Taylor
and his followers before World War I. Rating for officers in the US armed services was
introduced in the 1920s, & this spread to the UK, as did some of the factory-based US
systems. Merit-rating came to the fore in the USA & the UK in the 1950s & 1960s, when
it was sometimes rechristened performance appraisal. Management by objectives then
came & went in the 1960s & 1970s and simultaneously, experiments were made with the
critical incident technique & behaviourally anchored rating scales. A revised form of
results-oriented performance appraisal emerged in the 1970s, which still exists today.
The first recorded use of the term ‘performance management’ is in Beer and Ruh (1976).
Their thesis was that ‘performance is best developed through practical challenges &
experiences on the job with guidance and feedback from superiors’. They described the

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performance-management system at Corning Glass Works, the aim of which was to help
managers give feedback in a helpful & constructive way, and to aid in the creation of a
developmental plan.
The concept of performance management then lay fallow for some years, but began to
emerge in the USA in the mid-1980s as a new approach to managing performance.
However, one of the first books exclusively devoted to performance managements was not
published until 1987(Plachy 1987). In the UK the first published reference to performance
management was made at a meeting of the Institute of Personnel Management (IPM)
Compensation Forum in 1987 by Don Beattie, then personnel director, ICL, who
described how it was used as ‘an essential contribution to a massive & urgent change
programme in the organisation’ and had become a part of the fabric of the business. Full
recognition of the existence of performance management was provided by the research
project conducted by the Institute of Personnel Management (1992).
1.2What is Performance Management ?
There are few comprehensive definitions of Performance Management. HM Treasury
describe Performance Management as “Managing the Performance of an organisation or
individual”. Whilst this is not a precise definition grounded in literature it demonstrates the
breadth of performance management and hence the difficulties in defining its scope,
activities and practices. It demonstrates that performance management is concerned with
the management of performance throughout the organisation and as a result is a
multidisciplinary activity.
Further, in their Glossary of Performance Terms the Improvement Development Agency
further suggest that –
“it involves you understanding and acting on performance issues at each level of your
organization, from individuals, teams and directorates, through to the organization itself.
As well as involving performance measurement, systems and processes, performance
management is about managing people and ‘the way people within an organisation
operate and work together’. Issues such as leadership, decision making, involving others,

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motivation, encouraging innovation, and risk taking are just as important to bring about
improvement”.
This definition further demonstrates the breadth of the subject highlighting some of the
activities involved in managing performance, requiring a range of different skills and
functional approaches. This provides challenges of terminology when we discuss the
subject. Academic research in particular tend to be undertaken in functional subject areas
and often within organisations managers sit in functions and take a functional perspective
on the subject of performance.
Despite this the clear multidisciplinary, the field of performance management has
developed from diverse origins. Different measurement and management techniques and
approaches have developed independently. Financial and particularly management
accounting have been concerned with measuring and controlling the financial performance
of organisations, operations have been concerned with “shop floor” performance often
focusing on improving throughput and efficiency whether that be from a manufacturing or
a service perspective, strategy have been concerned with developing plans to deliver future
objectives (including planned performance) and personnel (or HR) have been concerned
with managing the performance of people. It is relatively recently that performance
management from these disparate disciplines has begun to converge and recognise the
need for integration into a multidisciplinary approach to managing performance.
1.3Definitions of Performance Management :
A r m s t r o n g ( 1 9 9 4 ) : -
Performance management is a process for establishing shared understanding about what is
to be achieved, and an approach to managing and developing people in a way which
increases the probability that it will be achieved in the short and longer term.

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American Compensation Association (1996):-
An effective performance management system aligns individual performance with the
organisation’s mission, vision and objectives.
Armstrong & Murlis (1994):-
Performance management is a means of getting better result from the organization, teams
and individuals within and agreed framework of planned goals, objectives and standards.
Bitici, Carrie & McDevitt (1997):-
The performance management process is the process by which the company manages its
performance in line with its corporate & functional strategies and objectives. The objective
of this process is to provide a pro-active closed loop system, where the corporate and
functional strategies are deployed to all business process, activities, tasks and personnel,
and feedback is obtained through the performance measurement system to enable
appropriate management decisions.
Lockett (1992) :-
The essence of performance management is the development of individuals with the
competence and commitment, working towards the achievement of shared meaningful
objectives within an organization which supports and encourages their achievement.
Hendry, Bardley and Perkins (1997) :-
A systematic approach to improving individuals and team performance in order to achieve
organizational goals.
IDS (1997) :-
A clear focus on how each employee can contribute to the overall success of the
organization lies at the heart of performance management systems.
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.

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Philpott & Sheppard (1992) :-
Performance management aims to improve strategic focus and organizational effectiveness
throughout continuously securing improvements in the performance of individuals and
teams.
Walters (1995) :-
Performance management is about ‘directing and supporting employees to work as
effectively as possible in line with the needs of the organization’.
1.4Aims of Performance Management :-
The Basic Aims :-
Two simple propositions provide the foundation upon which performance management is
built :-
(1) When people (individuals & teams) know and understand what is expected of them,
and have taken part in forming these expectations, they will use their best endeavours
to meet them.
(2) The capacity to meet expectations depends on the levels of capability that can be
achieved by individuals and teams, the levels of support they are given by management
, and the processes, systems, and resources made available to them by the organization.
These propositions imply that the basic aims of performance
management are to share understanding about what is to be achieved, to develop the
capacity of people and the organization to achieve it and to provide the support and
guidance individuals and teams need to improve their performance.
Another way of putting the overall and performance management is that
it exists to establish a culture in which individuals and group take responsibility for the
continuous improvement of the business process and of their own skills and contributions.
It is about sharing expectations. Managers can clarify their expectations of what they want
individuals team members and their teams as a whole to do, and individuals and groups can
communicate their expectations of what they should be able to do, of how they should be

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managed, the support and resources they need and how their talent should be used. The
aim is to achieve consensus because, as Fletcher (1993) put it, ’our perceptions of what is
real and valid in the world depend on a consensus of shared beliefs.’ One of the aims of
performance management could be expressed as being to clarify the psychological
contract.
Detailed Aims :-
In more details, the aims of performance management are two :-
(1) Help to achieve sustainable improvements in organizational performance.
(2) Act as a lever for change in developing a more performance oriented culture.
(3) Increase the motivation and commitment of employees.
(4) Enable individuals to develop their abilities, increase their job satisfaction and achieve
their full potential to their own benefit and that of the organization as a whole.
(5) Enhance the development of the team cohesion and performance.
(6) Develop the constructive and open relationship between individuals and their managers
in a process of continuing dialogue which is linked to the work actually being done
throughout the year.
(7) Provide opportunities for individuals to express their aspirations and expectations
about their work.
Aims Suggested by other Commentators :-
The American Compensation Association (1996) states that organizations rely on
performance management to :-
(1) Document job responsibilities.
(2) Help define performance expectations.
(3) Provide a framework for supervisors and employees to communicate with each other.
(4) Provide ongoing opportunities for supervisors to coach and encourage personal
development.

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(5) Align individuals performance expectations with organizational goals.
(5).5 Principles of Performance Management :-
The principles of performance management have been well summarized by IRS (1996) as
follows:-
 It translate corporate goals into individuals, teams, department and divisional
goals.
 It help to clarify corporate goals.
 It is a continuous and evolutionary process, in which performance improves over
time.
 It relies on consensus and cooperation rather than control on coercion.
 It encourages self-management of individual performance.
 It requires a management style that is open and honest and encourages to two-way
communication between superiors and subordinates.
 It requires continuous feedback.
 Feedback loops enable the experience and knowledge and gained on the job by
individuals to modify corporate objectives.
 It measures and assesses all performance against jointly agreed goals.
 It should apply to all staff, and it is not primarily concerned with linking
performance to financial reward.
Performance management should operate in accordance with the following ethical
principles as defined by Winstanely and Stuart- Smith (1996) :-
 Respect for the individuals – people should be treated as ‘ends in themselves’
and not merely as ‘means to other ends’;
 Mutual respect- the parties involved in performance management processes
should respect each other’s need and preoccupations;

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 Procedural fairness- the procedures incorporated in performance management
should be operated fairly to limit the adverse effect on individuals;
 Transparency- people affected by decisions emerging from the performance
management process should have the opportunity to scrutinize the basis upon
which decisions were made.
(5)6 Concerns of Performance Management :-
Performance management is basically concerned with performance improvement in order
to achieve organizational, team and individual effectiveness. Organizations, as stated by
Lawson (1995), have ‘to get the right things done successfully’.
Secondly, performance management is concerned with employee development.
Performance improvement is not achievable unless there are effective processes of the
continuous development. This addresses the core competences of the organisation and the
capabilities of individuals and teams. Performance management should really be called
performance and development management.
Thirdly, Performance management is concerned with satisfying the needs and expectations
of all organization’s stakeholders- owners, management, employees, customers, suppliers
and the general public. In particular, employees are treated as a partners in the enterprise
whose interests are respected and who have a voice on a matters that concerns them,
whose opinions are sought and listened to. Performance management should respect the
needs of individuals and teams as well as those of the organization, recognizing that they
will not always coincide.
Finally, performance management is concerned with communication and involvement. It
creates climate in which a continuing dialogue between managers and the members of their
teams takes place to define expectations and shared information on the organization’s
mission, values and objectives. This establishes mutual understanding of what is to be
achieved and framework for managing and developing people to ensure that it will be
achieved. Performance management can contribute to the development of the high-
involvement organization by getting teams and individuals to participate in defining their
objectives and the means to achieve them.
(5)7 Scope of Performance Management :-

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Performance management is about managing the organization. It is a natural process of
management, not a system or a technique (Fowler, 1990). It is a also about managing
within the context of the business (its internal & external environment). This will affect
how it is developed, what is sets out to do and how it operates. The context is very
important, and Jones (1995) goes as far as to say ‘manage context, not performance’.
Performance management concerns everyone in the business- not just managers. It rejects
the cultural assumptions that only managers are accountable for the performance of their
teams and replaces it with the belief that responsibility is shared between managers and
team members. In a sense, managers should regard the people who report to them as a
customers for the managerial contribution and services they can provide. Managers and
their teams are jointly accountable for results and are jointly involved in agreeing what
they need to do and how they need to do it, in monitoring performance & in taking action.
(5)8 Benefits of Performance Management :-
The benefits to the organisation, managers and individuals of well- conceived and well-run
performance management processes are summarised below :
For the Organisation :
Align corporate, individual and team objectives.
Improve performance.
Motivate employees.
Increase commitment.
Underpin core values.
Improve training and development process.
Help to develop a learning organisation
Enlarge the skill base.
Provide for continuous improvement and development.
Provide the basis for career-planning.

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Help to retain skilled employees.
Support total quality and customer service initiatives.
Support culture- change programmes.
For Managers :
Provide the basis for clarifying performance and behaviour expectations.
Afford a framework for reviewing performance and competence levels.
Improve team and individual performance.
Support leadership, motivating and teambuilding processes.
Provide the basis for helping underperformers.
May be used to develop or coach individuals.
Offer the opportunity to spend structured ‘quality’ time with teams and team
members.
Provide the basis for providing non-financial rewards to staff.
For Individuals :
Greater clarity of roles and objectives.
Encouragement and support to perform well.
The provision of guidance and help in developing abilities and performance.
Opportunities to spend ‘quality time’ with their managers.
Opportunities to contribute to the formulation of objectives and plans and to
improvements in the way work is managed and carried out.
An objective and fair basis for assessing performance.
(5)9 Defining Performance :-
If you can’t define performance, you can’t measure or manage it. It has been pointed out
by Bates & Holton (1995) that ‘Performance is a multi-dimensional construct, the

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measurement of which varies, depending on a variety of factors.’ They also state that it is
important to determine whether the measurement objectives is to assess performance
outcomes or behaviour.
There are of course different views on what performance is. It can be regarded as simply
the record of outcomes achieved. On an individual basis, it is a record of a person’s
accomplishments. Kane (1996) argue that performance ‘is something that the person
leaves behind and that exists apart from the purpose’. Bernadin, Kane, Ross, Spina and
Johnson (1995) are concerned that-
Performance should be defined as the outcomes of work because they provide the
strongest linkage to the strategic goals of the organisation, customer satisfaction, and
economic contributions.
The Oxford English Dictionary defines performance as the ‘accomplishment, execution,
carrying out, working out of anything ordered or undertaken’. This refers to outputs/
outcomes, but also states that performance is about doing the work, as well as being about
the results achieved. Performance could therefore be regarded as behaviour- the way in
which organisations, teams and individuals get work done. Campbell (1990) believes that
‘performance is behaviour they can be contaminated by systems factors’.
A more comprehensive view of performance is achieved if it is defined as embracing both
behaviour and outcomes. This is well put by Brumbrach (1988) :
Performance means both behaviours and results. Behaviours emanate from the performer
and transform performance from abstraction to action. Not just the instruments for
results, behaviours are also outcomes in their own right- the product of metal and
physical effort applied to tasks- and can be judged apart from results.
1.10 Factors affecting Performance :-
Performance is affected by a number of factors, all of which should be taken into
account. These Comprise :-

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Personal factors- the individual’s skill, competence, motivation and commitment.
Leadership factors- the quality of encouragement, guidance and support provided
by managers and team leaders.
Team factors- the quality of support provided by colleagues.
Systems factors- the system of work and facilities provided by the organisation.
Contextual factors- internal and external environmental pressures and changes.
1.11 Process for Managing Performance :-
It has been well said by Mohrman and Mohrman (1995) that managing performance is
‘running the business’. It is not a set of techniques and it is certainly not all about
‘performance management systems’. Kermally (1997) believes that ‘performance
management should support corporate strategy formulation and monitor value drivers,
i.e. those elements that really make the business profitable’.
If an all embracing or holistic approach to the management of performance is adopted,
the following aspects of what makes organisations, teams and individuals perform well
must be considered:
 The context of the organisation.
 Culture.
 Functionality.
 Job design
 Teamwork
 Organisational development.
 Purpose and value statements
 Strategic management.
 Human resource management.
1.12 Meaning of Performance Management System :-
Performance management system (PMS) is the heart of any “people management
processes’’ in organization. Organizations exist to perform. If properly designed and

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implemented it can change the course of growth and pace of impact of organizations. If
people do not perform organizations don't survive. If people perform at their peak level
organization can compete and create waves. In the past organizations as well as the HR
function have wasted a lot of time by wrongly focusing on performance appraisals rather
than performance management.
Effective performance management requires:
 Identifying the parameters of performance and stating them very clearly.
 Setting performance standards.
 Planning in participative ways where appropriate, performance of all
constituents.
 Identifying competencies and competency gaps that contribute/hinder to
performance.
 Planning performance development activities.
 Creating ownership.
 systematically deciding and communicating what needs to be done (aims,
objectives, priorities and targets)
 a plan for ensuring that it happens (improvement, action or service plans)
 some means of assessing if this has been achieved (performance measures)
 information reaching the right people at the right time (performance reporting)
so decisions are made and actions taken.
A Performance Management System enables a business to sustain profitability and
performance by linking the employee’s pay to competency and contribution. It provides
opportunities for concerted personal development and career growth. It brings all the
employees under a single strategic umbrella. Most importantly, it gives supervisors and
subordinates an equal opportunity to express themselves under structured conditions.
Managing this process effectively isn't easy. It calls for a high level of co-ordination,
channelled information flow, and timely review. Whether employees are at a single place,

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or spread across multiple locations, the use of technology can help simplify the complete
process for more effective information management. Performance management could be
defined as it begins when the job is defined and ends when an employee leaves the
company. Between these points, the following should be understood for a working
performance management system :-
Developing clear job descriptions: Job descriptions are the first step in selecting the
right person for the job, and setting that person up to succeed Job descriptions provides
a framework so the applicants and new employees understand the expectations for the
position.
Selection: Jobs have different requirements. This is the process of matching the skills
and interests of a person to the requirements of a job. Finding a good job "fit" is
exceptionally important. Use of a selection process maximizes input from potential
co-workers and the person to whom the position will report.
Providing effective orientation, education, and training : Before a person can do the
best job, he or she must have the information necessary to perform. This includes
job-related, position-related, and company-related information; an excellent
understanding of product and process use and requirements; and complete knowledge
about customer needs and requirements.
Providing on-going coaching and feedback : People need ongoing, consistent
feedback that addresses both their strengths and the weaker areas of their performance.
Effective feedback focuses more intensely on helping people build on their strengths.
Feedback is a two-way process that encourages the employee to seek help.
Conducting quarterly or annual performance development discussions: If
supervisors are giving employees frequent feedback and coaching, performance reviews
can change from negative, evaluative, one-sided presentations to positive, planning
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

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challenging job assignments and responsibilities, and cross-training contribute to the
development of a more effective staff member.
Assisting with exit interviews to understand WHY valued employees leave the
organization: When a valued person leaves the company, it is necessary to understand
why the person is leaving. This feedback will help the company improve its work
environment for people. An improved work environment for people results in the
retention of valued staff.
1.13 Contribution of Performance Management System :
There are many advantages associated with implementation of a performance
management system. A performance management system can make the following
important contributions :
(1) Motivation to perform is increased : Receiving feedback about one’s performance
increases the motivation for future performance . Knowledge about how one is doing &
recognition about one’s past success provide the fuel for future accomplishments.
(2) Self-esteem is increased : Receiving feedback about one’s performance fulfils a basic
human need to be recognized & valued at work. This in turn is likely to increase
employee’s self-esteem.
(3) Managers gain insight about subordinates : Direct supervisors & other managers in
charge of the appraisal gain new insights into the person being appraised. Also,
supervisors gain a better understanding of each individual’s contribution to the
organization.
(4) The definitions of job & criteria are clarified : The job of the person being appraised
may be clarified and defined more clearly. In other words, employees gain a better
understanding of the behaviours and results required of their specific position.
(5) Self-insight & development are enhanced : The participants in the system are likely
to develop a better understanding of themselves and of the kind of development activities
that are of value to them as they progress through the organization.
(6) Administrative actions are more fair & appropriate : Performance management
systems provide valid information about performance that can be used for administrative
actions such as merit increases, promotions and transfer as well as terminations.
(7) Organizational goals are made clear : The goals of the unit and the organisation are
made clear, and the employee understands the link between what she does and

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organizational success. PMS can help improve employee acceptance of these wider
goals.
(8) Employees become more competent : An obvious contribution is that employee
performance is improved. In addition, there is a solid foundation for helping employees
become more successfully by establishing developmental plans.
1.14 Disadvantages/ Dangers of poorly implemented PM Systems :
(1) Increased turnover : If the process is not seen as fair, employees may become upset
and leave the organization. They can leave physically or with draw psychologically.
(2) Use of misleading information : If a standardized system is not in place, there are
multiple opportunities for fabricating information about an employee’s performance.
(3) Lowered self-esteem : Self-esteem may be lowered if feedback is provided in an
inappropriate and inaccurate way. This in turn can create employee resentment.
(4) Wasted time and money : Performance management systems cost money and quite a
bit of time. These resources are wasted when systems are poorly designed and
implemented.
(5) Damaged relationships : As a consequence of a deficit system, the relationship
among the individuals involved may be damaged, often permanently.
(6) Decreased motivation to perform : Motivation may be lowered for many reasons
including the feeling that superior performance is not translated into meaningful tangible
or intangible rewards.
(7) Employee burnout & job dissatisfaction : When the performance assessment
instrument is not seen as valid and the system is not perceived as fair, employees are
likely to feel increased levels of job burnout & job dissatisfaction.
(8) Increased risk of litigation : Expensive lawsuits may be filed by individuals who feel
they have been appraised unfairly.
1.15 Characteristics of an Ideal PM System:
(1) Strategic congruence: The system should be congruent with the unit and organisation’s
strategy. In other words, individual goals must be aligned with unit and organizational goals.
(2) Thoroughness : The system should be thorough regarding four elements :all employees
should be evaluated, all major job responsibilities should be evaluated, the evaluation should
include performance spanning the entire review period, not just the few weeks or months
before the review and feedback should be given on positive performance aspects as well as
those that are in need of improvement.

26. Page | 26
(3) Practicality: Systems that are too expensive, time consuming and convoluted will
obviously not be effective. Good, easy-to- use systems are available for managers to help them
make decisions.
(4) Specificity : A good system should be specific: it should provide detailed and concrete
guidance to employees about what is expected of them an how they can meet these
e x p e c t a t i o n s .
(5) Identification of effective & ineffective performance : The performance management
system should provide information that allows for the identification of effective and in
effective performance.
(6) Reliability : A good system should include measures of performance that are consistent
and free of error. For example, if two supervisors provided ratings of the same employee and
performance dimensions, rating should be similar.
(7) Validity : The measures of performance should also be valid. In this context, validity refers
to the fact that the measures include all relevant performance facets and do not include
irrelevant performance facets.
1.16 Performance Review :
Everybody who works for you needs to know where they stand and how they are doing
compared to your expectations of them. Many companies have formal review systems to
let employees know how their performances stack up. Reviews may be conducted as
often as every three months, but annual reviews are most popular.
Each review should go over the goals that were set when the employee started the job or
during the last performance evaluation. Then the review should examine how well the
employee has done toward reaching these goals. The employee should be asked to rate
his or her performance, in addition to relying on objective measurements such as sales
figures. You and the employee should then discuss the desirability of trying to reach
goals that haven't yet been achieved, and you should both set goals for the future.
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

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information for other human resource management functions. Performance Appraisal is
important because it helps in Performance Feedback, Employee Training and
Development Decisions, Validation of Selection process, Promotions & Transfers,
Layoff Decisions, Compensation Decisions, Human Resource Planning (HRP), Career
Development and Develop Interpersonal Relationship.
1.17 Tips for Successful Performance Review :
 Frequent Conversations Prepare Managers and Employees for the Annual
Review.
 Keep Job/Position Descriptions Up-to-Date.
 Document the Conversations.
 Create a Reciprocal Process.
 Start with a Self-Appraisal.
1.18 Successful Performance Review Conversation Needs :
Careful planning by manager and employee.
Constructive communication.
Collaborative attitude.
Openness to giving and receiving feedback.
Commitment to "continuous improvement".
High level of accountability—good follow-through on commitments made during
conversation.
Openness to redefining or readjusting goals as needed (for the department and/or
for the employee).
1.19 Different Techniques of Performance Review :
Sr.
No.
Technique Key Idea Advantages Disadvantages
1. Ranking Method
Ranking employees from best to
worst on a particular trait,
choosing highest then lowest,
until all ranked
1. Fastest.
2. Transparent.
3. Cost effective.
4. Simple & easy to use.
1. Less objective.
2. Morale problems. who
are not rated at or near the
top of the list.
3. Suitable for small
workforce.
Graphic Rating
A scale that lists a number of
traits & a range of performance
for each, the employee is then
1. Simple.
2. Easily Constructed.
3. Easy to use.
1. Rating may be
subjective.
2. Each characteristics is

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2. Scale rated by identifying the best
score that best describes his or
her performance for each trait.
4.Reduce the personal
bias.
equally important in
evaluation of the
employee’s performance.
3. Critical Incident
Keeping a record of
uncommonly good or
undesirable examples of
employee’s work related
behaviour & reviewing it with
the employee at predetermined
times.
1. Easy & economic to
develop & administer.
2. Based on direct
observations.
3. It is time tested &
provides more face time.
1. Time consuming &
laborious to summarize &
analyze the data.
2.Difficult to convince
people to share their
critical incidents through a
survey.
4. Narrative Essays
Evaluator writes an explanation
about employee’s strength &
weakness points, previous
performance, positional &
suggestion for his or her
improvement at the end of
evaluation time
1. Report actually shows
employee’s performance.
2. Can cover all factors.
3. Examples are given.
4. Provides feedback.
1. Time consuming.
2. Supervisor may write a
biased essay.
3. Effective writers are
very difficult to find.
5. Management by
Objectives
Employees are evaluated how
well they accomplished a
specific set of objectives that
have been determined to
critical in the successful
completion of job.
1. Easy to implement &
measure.
2. Employee motivated
as he is aware of
expected roles &
accountability.
3. Facilitates employee
counseling & guidance.
1. Difficult to employees
agree on goals.
2. Misses intangibles like
honesty, integrity,
quality etc.
3. Time consuming,
complicated, lengthy &
expensive.
6. Behaviorally
Anchored Rating
Scale (BARS)
BARS combines elements from
critical incident & graphic
rating scale approach. The
supervisors rates employee’s
according items on a numerical
scale.
1. Job behavior describe
employee performance in
a better way.
2. More objective.
3. More acceptances due
to participation of
managers & employees.
1. Scale independence may
not be valid/reliable.
2. Behaviors are activity
oriented rather than result
oriented.
3.Very time consuming for
generating BARS.
4. Each job require
creating separate BARS
scale.
Employees are evaluated over a 1. Concepts are simple. 1. Expensive & difficult to

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7. Assessment
Centers
period of time; say one or three
days, by observing their
behaviors across a series of
selected exercises or work
samples.
2. Highly flexible
methodology.
3. Helps in selection &
promotion decisions and
for diagnosing employee
development needs.
4. Exercise is hard to
fake.
manage.
2. Requires a large staff.
3. Requires a great deal of
time.
4. Only a limited no. of
people can be processed at
a time.
8. 360 Degree
It relies on the input of an
employee’s, superior,
colleagues, subordinates,
sometimes customers, suppliers
and/or spouses.
1. Excellent employee
development tool.
2. Accurate, reliable &
credible system.
3. Legally more
defensible
4. More objective being
multi-rate system.
1. Time consuming & very
costly.
2. Sensitive to
organization & national
culture.
3. May damage
self-esteem of employees
if the feedback is brutal.
4.Difficult to implement in
cross-functional teams.
5.Prone to political &
social games played by
people.
CHAPTER- 2

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COMPANY
PROFILE
CHAPTER –2
COMPANY PROFILE
The two Iron-men, in its true pioneering spirit, contemplated the manufacture of Artificial
Leather in 1954 and initiated manufacturing of Artificial Leather cloth in Malad, Mumbai and
marketing it all over the country through Ahmedabad, Bangalore, Kolkata and Chennai.
In 1962 a plot was acquired at Kandivli, Mumbai and the manufacturing base was shifted here
by the name of The National Leather Manufacturing Company (NLC). They imported
Dornbusch coating lines and the best quality of Artificial Leathercloth became a reality!
The years passed by and there was no looking back as the Group was growing in leaps and
bounds. It was just a beginning for the team which was later strengthened when Late Shri.
Gandalal’s son, Late Mr.Kantilal Shah and Late Mr.Amrutlal Motasha joined the business.

31. Page | 31
Later, Mr.Arvind Motasha, son of Late Mr.Vadilal Motasha also joined and the team was
further strengthened.
DIFFERENT COMPANIES OF SAMSONS GROUP :
About VinyRoyalPlasticoates Private Limited (VPPL) :-
The pioneering entrepreneur of the group started the flagship company NLC in 1962. It is
engaged in manufacturing of Artificial Leathercloth and is one of the largest manufacturers in
the world with installed capacity of 13.5 million square meters with 3 Coating lines.
Infrastructure :-
 Specializes in Manufacturing PVC artificial leather to various Indian and International
standards for automobile seat upholstery and trims.
 Collection of designs in natural leather like grains and fabric type patterns in a wide range of
colours.
 Choice of PVC Artificial, Leather with knit, woven and non woven backing fabric to suit a
range of end users.
 A well equipped laboratory for testing raw material and the finished products. Modern and
well laid out plant for production and storage.

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About Joyride :-
Joyride seat covers made from superior grade of leather cloths, Joyride offers better protection
from harsh UV rays and keeps the seats cooler. The product is specially designed for Indian
climate keeping in mind essential factors such as heat management, durability, environment
and the value for money.
Durability and long life :-
Joyride offers all weather protection and comes with 3 years warranty.
About Royal Cushion Vinyl Products Ltd. :-
Royal Cushion Vinyl Products Ltd. has two plants spread across 130 acres of land, at Garadia,
Halol, Gujarat, for manufacturing of Vinyl Floorings of different types for various end-users
and Rigid Films. RCVPL caters to customers in over 40 countries worldwide.
Quality Policy :-
To achieve customer satisfaction by providing international quality products in all our product
ranges.
About Vijayjyot :-
Vijayjyot seating components division is leading components manufacturer for Metro, Bus,
Car, Cinema and Auditorium seats. The product line includes fabrication of Metal Frames (MS
and SS), Polyurethane (PU) Foam and Upholstery / Trim Covers. We also manufacture and
supply fully assembled Railway seats.
Its seating components division provides one-stop solution to customers from design
inception, proto-type sample, product development to commercial supplies. Facilities include
Design center, Tool room, Weld shop with advanced technology like Multi Axis Bending
Machine, Cutting & Sewing Machines and PU Machines. The plant is located in Halol, near
Vadodara in state of Gujarat, INDIA.

33. Page | 33
About Royal Knitting :-
Initially Royal Knitting Pvt. Ltd [RKPL] established in 1983, produced knitted fabrics to meet
the in-house requirements for leather cloth backing, for our sister concern - National Leather
cloth Mfg. Co. and Vinyroyal Plasticoates Pvt. Ltd. Today RKPL’s installed capacity stands at
175 tones/month of circular knitted fabrics and 20 tones/month of warp knitted fabrics.
Only 30% of the capacity is utilized to make supplies to group company, 50% supplies are
made to other local Artificial Leathercloth manufacturers & exports and remaining 20%
supplies go to OE customers such as Melba, Faze 3, Reliance, Shamkeen. In OE the fabric is
applied for back scrim application in automotive upholstery.
Production facility consists of 28 circular knitting machines (Single Jersey, Terry, Interlock) of
Mayer & Cie make, 4 Orizio make, 2 Taifan make and 1 Fukuhara.
Warp Knitting machines of Karl Mayer; of which 2 are KS-3 and 1 HKS-3M.
Raising machine of Daintipaolo. Future plans include setting up of in-house dyeing & finishing
line.
VIJAYJYOT COMPANY OVERVIEW
Vijayjoyt is leading manufacturer and marketer of automotive, cinema / auditorium, bus &
railways seating systems of India. Its products are marketed under the brand name
VIJAYJYOT. They are 2 decades old company in seating system having clienteles at home
(India) and abroad.
Design & Development Facility :-
Its design & development facility is located in plant in Baska, near Baroda, Gujarat and plant
in Pune, Maharastra. They have state of art of technology development centre where 20
dedicated engineers/ staff are involved in development of new products and applications round
the clock for various segments of seating systems. They are an ISO/ TS 16949:2000 certified
company.
Its People :-
Their main focus is future growth of company lies with its human resource people. The
human skills are updated with training inputs on a regular basis and also have a
HR practices in our organisation. Our top management is involved in HR policy within the
organization, that a clear indication that we are people performance organization.
Marketing & Distribution :-

34. Page | 34
They have a very wide spread sales and marketing network covering 4 regions of the country.
Our representation is very strong even in overseas market like Middle East, Russia, Europe
and North America. After sales service to all our customers are being monitored in the form of
Customer Satisfaction Index. This is to assess and improve various parameters of services
within our setup on the basis of customer's feedback.
Its group :-
The journey of samsons group started way back in 1932 by the confluence of two families
Shahs' and Motashas' in the form of small trading house. Subsequently, National Leathercloth
was in 1954, Royal Knitting (fabric) in 1978 & Vijayjyot Seats Pvt. Ltd. ( VSPL) in 1989.
Group turnover is around Rs. 200 crores (U$ 45 MIO).
INDUSTRIAL CERTIFICATION
Verification Type: Third-party verification service provider
Company Name: VIJAYJYOT SEATS PVT LTD
Country/Territory: India
Registered Address: 60 CD, "SHLOK"GOVT. INDUSTRIAL
ESTATE,CHARKOP, KANDIVLI (WEST), Mumbai,
Maharashtra, India Zip: 400067
Legal Form: Private Organization
Registration No.: 053554
Issuing Authority: Ministry of Corporate Affairs
Date of Issue: 1989-09-20
Applicant Information
Name: Suvrat Mahesh Shah
Job Title: CEO

35. Page | 35
Product Categories :
Artificial Leather PVC Leather Leather Rexine
Cloth Cloth Cloth Cloth
PVC Artificial Artificial Leather PVC Textile Automobile Seats
Leather Cloth Cloth 2 Leather Cloth Vinyl
PVC Coated Upholstery PVC Foam Leather PVC Synthetic
Fabric Vinyl Cloath Leather
Cinema Debonair Leisure Slumfort Leisure Plus

36. Page | 36
CHAPTER -3
REVIEW OF
LITERATURE

37. Page | 37
CHAPTER -3
REVIEW OF LITERATURE
 Study by DDI (1997), Performance Management Practices is the most recent
performance management study. It proves that successful organizations realize that
performance management is a critical business tool in translating strategy into results.
The CEOs in the majority of the 88 Organizations surveyed say their performance
management system drives the key factors associated with both business and cultural
strategies. Performance management systems directly influence five critical
organizational outcomes : Financial performance, productivity, product or service
quality, customer satisfaction & employee job satisfaction. When performance
management systems are flexible & linked to strategic goals, organization are more
likely to see improvement in the five critical areas : team objectives, non- manager
training, appraiser accountability & links to quality management are the specific
practices most strongly associated with positive outcomes.
 Watkins (2007) puts it, most public sector business organization like those in Delta
State of Nigeria have not given adequate attention to performance management review
as a tool for improving performance even when recent studies suggest that
performance review benefit organizational performance in both private & public
sectors. Performance management has been described as a systematic approach to the
management of people, using performance goal measurement, feedback and
recognition as a means of motivating them to realize their maximum potentials. Public
sector business organizations that strive to deliver quality services at competitive
prices are those that embrace various performance review practices to assess their
employee performance & motivate them with incentives.
 Robert & Angelo (2001), The success or failure of public sector business organizations
depends on the ability to attract, develop, retain, empower & reward a diverse array of
appropriately skilled people and is the key to improving organizational performance.
The explanation therefore is that human resource managers in the public sector
business concerns should embark on periodic performance management reviews of
their employees in order to re-position their business organizations though owned by
government for better performance & improved competitiveness.

38. Page | 38
 Study by Wm. Schiemann & Associates (1996), this national survey of cross-section
of executives concluded that measurement-managed companies- especially those that
measure employee performance- outperform those that downplay measurement.
These research studied 122 organizations making between $27 million and $50 billion
in sales. A higher percentage of measurement-managed companies were identified as
industry leaders, as financially in the top third of their industry, and as successfully
managing their change efforts. The research examined performance in six strategic
performance areas deemed crucial to long-term success : Financial performance,
operating efficiency, customer satisfaction, employee performance, innovation/change,
community/environment. The findings revealed that the biggest measurement area
separating successful from less successful firms is employee measurement. Successful
industry leaders simply do a better job than non-leaders at measuring their workforce,
which the study say is where real change won or lost.
 Study by Hewitt Associates (1994), The impact of performance management on
organizational success substantiates that performance management system can have a
significant impact on financial performance and productivity. The study used the
Boston Consulting Group/HOLT financial database to track the financial performance
of 437 publically held U.S. companies from 1990 through 1992.The study results
showed that: Companies with performance programs have higher profits, better cash
flows, stronger stock market performance and a greater stock value than companies
without performance management. Productivity in firms without performance
management is significantly below the industry average, while productivity in firms
with performance management is on par with the industry average. Companies with
performance management significantly improved their financial performance and
productivity after implementing performance management.
 Williams (2002) identifies globalization, increased competition and the increasingly
individualistic rather than collective employee relationship as some of the major drivers
contributing to the increased visibility of performance management systems (PMS).
Faced with fast moving and competitive environments, companies are constantly

39. Page | 39
searching for unique ways in which to differentiate themselves from their competition
and are increasingly looking to their “human resources” to provide this differentiation.
This has led to much interest in the performance of employees, or more importantly,
how to get the most out of employees in order to sustain competitive success.
 The study by Eleni T. Stavrou, Christakis Charalambous and Stelios Spiliotis
utilizes an innovative research methodology (kohonen’s Self-organizing Maps (SOMs),
Neural Network Analysis) to explore the connection between human resource
management as a source of competitive advantage and perceived organizational
performance in the European Union’s private and public sectors. While practices in
these two sectors did not differ significantly, three diverse but overlapping HRM
models did emerge, each of which involved a different set of EU member states.
Training & Development practices were strongly related to
performance in all three models and communication practices in two. These results
show the usefulness of an innovative technique when applied to research so far
conducted through traditional methodologies, and brings to the surface questions
about the universal applicability of the widely accepted relationship between superior
HRM and superior business Performance.
 Sharmistha Bhattacharjee and Santoshi Sengupta (2011) studied that employees are
the most valuable and dynamic assets of an organization. For achieving the strategic
objective of sustained & speedy growth, managing human resource has been featured
as a vital requirement in all organizations. It is a challenge to monitor the entire cycle
of defining the competence requirement of the business, accessing existing competence
in the organization and bridging the gap between the two. HR practices are crucial for
any organization. Every phase from recruitment to exit interview is under the HR
department. It is a challenge to monitor the entire cycle of defining the competence
requirement of the business, accessing existing competence in the organization and
bridging the gap between the two. In a manufacturing industry, with every technical
advancement business opportunities can show up. These opportunities can be
converted into business success only with performance alignment and competence
management.

40. Page | 40
 The research paper of Mohammad Tanvi Newaz (2012) provides an analysis and
evaluation of the role of performance management system in shaping psychological
contract at Sainsbury’s UK by a case study approach. Sainsbury’s has adopted the
performance management system to utilize the potential of their employees but result
of data analysis indicates that line managers have failed to achieve the objective of the
performance management system. This research analysis reveals how the line managers
of Sainsbury’s focus on short term goal i.e. financial success instead of long term goal
i.e. employee development. However, the performance management system of
Sainsbury’s comprises all the necessary components to play a significant role in
developing employees as well as facilitating the formation of a positive psychological
contract. But partial and inattentive implementation of the system makes the situation
unfavourable for the psychological contract to develop at Sainsbury’s UK.
 The article of Javed Iqbal , Samina Naz, Mahnaz Aslam, Saba Arshad (2012), offers
a survey of selected literature on performance management. Purpose is to identify key
themes that govern the topic in the contemporary turbulent economic and business
environment where employees are more uncertain that anything else because every day
they face downsizing, volunteer retirement and “golden hand shakes’’ to get rid of
them. Under these circumstances it is worthwhile to look into the ways by which they
can be motivated to work under hard conditions. It is found that performance
management processes, evaluation, its impact and factors are key themes. Researchers
apply popular research approaches for data collection analysis and communication.
 The paper of Akua Asantewaa Aforo and Kodjo Asafo-Adjei Antwi (2012) shows
that academic libraries have a performance appraisal system comprising setting of
goals, feedback, participation and incentives for performance. This study aimed at
evaluating the performance appraisal system in the KNUST and GIMPA libraries in
Ghana and give recommendations on improving the system. Questionnaires were
randomly administered to 46 staff members of these libraries.
 The aim of this study of Akinyele S. T. (2010) was to evaluate the effectiveness of
performance appraisal system at private universities in Nigeria. The focus of the study
was on the administrative staff of Crawford University. The study evaluated the
purpose of performance appraisal in private universities and identifies relevant factors
for achieving an effective performance appraisal. A cross- sectional survey was
selected for this study because it was easy to undertake compared to longitudinal
survey and the results from the same can be inferred to the larger population. The

41. Page | 41
study population was for all the administrative staff of Crawford University. The whole
populations of staff were selected as respondents. A structured questionnaire was used
to collect the data for analysis. The effectiveness of performance appraisal systems in
private universities are only based on training the members of staff involved in the
rating/ appraising process and are multi- rating systems. Conclusively because the
performance appraisal systems used in private universities are not effective and that
they exist just as a matter of formalities, the private universities cannot measure
members of staff performance, hence making it difficult to achieve the intended human
resource management objective.
 The paper of Al Bento and Regina Bento (2006) proposes and tests a model to
explain three critical outcomes of Performance Management Systems: information
quality, effectiveness, and usefulness of the PMS to managerial decision-making.
Drawing from Organizational Information Processing Theory (OIPT), we examined
how those three outcomes may be influenced by factors that affect OIP requirements
(industry, size, and geographic scope of operations) and by organizational and
technological factors that affect OIP capabilities. Organizational factors included
management's decision-making style and organizational structure. Technological
factors included the types of technology used in the PMS (ERP; specialized tools such
as EIS and DSS; and generic tools such as Excel, Access and Lotus Notes), and the
degree of use of e-commerce and Internet technologies.
 The study of George Ndemo Ochoti, Elijah Maronga, Stephen Muathe, Robert
Nyamao Nyabwanga, Peter Kibet Ronoh (2012) investigated the multifaceted factors
influencing employee Performance Appraisal System in the Ministry of State for
Provincial Administration, Nyamira District, Kenya. A target population of 76
employees was surveyed. A structured questionnaire was self-administered to the
employees to collect data. Multiple regression analysis technique was used to explain
the nature of the relationship between PAS and the factors that influence it. Results of
the study showed that all the five factors: Implementation process (X1), interpersonal
relationships (X2), rater accuracy (X3), informational factors (X4), and employee
attitudes (X5) had a significant positive relationship with the performance appraisal
system (Y). It shows that if these factors are taken into consideration by the ratees, the
raters and the government policy makers, the PAS can be a good performance
management tool.
 The paper of Jawaria Andleeb Qureshi, Asad Shahjehan, Zia-ur-Rehman and Bilal
Afsar (2010) notifies that many organizations install Performance Management
Systems (PMS) formally and informally in their organizations, with the motivation to
achieve better organizational results. In practice, organizations have difficulty in
implementing a performance management system because its different dimensions are

42. Page | 42
not taken into considerations enough. This article describes the findings of a
comparative analyses conducted between a standard performance management model
and performance management systems as applied by Local Development Organization
(LDO). Data was collected from 50 employees of the organization with a Cronbach
Alpha (0.935). Results identified barriers to implementation of effective PMS, also
recommendations and viable solutions are presented.
 Research of Leena Toppo, Twinkle Prusty (2012) informs that performance appraisal
and performance management were one of the emerging issues since last decade. Many
organizations have shifted from employee’s performance appraisal system to
employee’s performance management system. This paper has focused to study the
evolution of employee’s performance appraisal system, critics the system suffered and
how the performance management system came to the practice. The main purpose of
this paper is to differentiate these two systems, employee’s performance appraisal and
management system. This paper uses a review of the literature to evaluate the
development of appraisal system and argues the critic areas of appraisal system.
Performance management eliminates the shortcomings of performance appraisal
system to the some extent.
 There are, however, several models which have attempted to explain how HR policies
have an impact on firm performance, one such model adopted as a conceptual
framework in this paper is the “People Process Framework” (Gratton 1996). This
framework focuses on individual performance linked to organizational performance
and is designed to deliver short term business objectives as well as long term
sustainable success. The model clearly identifies a set of HR practices which have been
designed to link individual effort to the overall objectives of the business and also
strikes a balance between achieving short term goals and preparing the company for its
future long term success. The major focus of the research will be on the processes
which contribute to short term business success, given their direct relevance to PMS
and the crucial role of line managers in their implementation. These short term
processes are critical to the overall success of the business as they provide the
foundations to encourage sustained performance through clear identification of
objectives, continuous assessment of performance against those objectives, reward
strategies that emphasize the required behaviors and the provision of training and skills
which will improve performance. Implemented correctly, these processes should
enhance the individuals confidence in themselves and their company creating an
environment where employees “want to” perform rather than feeling like they
“have to” perform. Long term success is only possible therefore when the short term
processes generate this type of response.
 Whittaker and Marchington (2003) found evidence in their study that line managers
spent very little time on people management issues, preferring instead to concentrate
on financial or business objectives. Hope Hailey et al (2005) report that line managers
are only measured on their technical role and not their people management
responsibilities. The appraisal process is therefore of secondary importance to them
and the appraisal is generally approached with little preparation, training or enthusiasm
(Cook and Crossman 2004, Holt-Larsen and Brewster 2003). To address this,

43. Page | 43
Hendry et al (2000) argue that not only should line managers own the performance
management process but that they should be involved in its design, and only by
involving them at this stage will they “buy-in” to the process. Lack of management
“buy-in” can potentially frustrate the whole purpose of a performance management
system, leading to an inability to meet short-term goals as well as failure to address
longer term developmental opportunities (Weeks, 2005).
 Lohr (1981) had stated that even Abraham Taylor (1856-1915) widely regarded as the
father of Scientific Management in his legendary thesis on performance improvement in
organizations had recognized the negative influences of groups on performance and
sought to break-up informal group activities through spatial and work-flow designs
and individual piece rate systems of pay. Taylor had based his management system on
production-line time studies. Instead of relying on traditional work methods, he
analyzed and timed steelworkers’ movements on a series of jobs. Using time study as
his base, he broke each job down into its components and designed the quickest and
best methods of performing each component (Idemobi et al 2010). In this way he
established how much workers should be able to do with the equipment and materials
at hand. He also encouraged employers to pay more productive workers at a higher
rate than others, using a “scientifically correct” rate that would benefit both company
and worker. Thus, workers were urged to surpass their previous performance
standards to earn more pay. Taylor called his plan the differential rate system. Rather
than quarrel over profits, both management and workers should try to increase
production and by so doing, he believed, profits would rise to such an extent that
labour and management would no longer have to fight over them.
 Timmons (1992) had opined that competitiveness is a major issue in foreign
competition, and if a country’s export promotion drive is to yield the desired results,
competitiveness in particular must be optimized. He further posited that the declining
productivity in business organizations which leads to un-competitiveness is a major
cause of monetary problems and inflation, and governments obviously should be
interested in the level of competitiveness arising from productivity improvement.
 Although the use of goal setting is primarily used to improve performance, there are
other benefits such as: to clarify expectations, to improve job satisfaction, to enhance
self-esteem through attainment of goals and to improve quality of work (Locke and
Latham 1984).Appraisal provides the mechanism to provide effective feedback on
achievement of which is an important factor in improving performance (Williams 2002).
 Fletcher (2004) describes it as a “high risk activity” for managers, given the many
pitfalls associated with it and Newton and Findlay (1996) highlight the fallibility of
appraisals as they are open to manager manipulation. Despite the criticisms, the use of
performance appraisal is widespread and perceived to be an effective part of a
performance management system (CIPD 2005a).
 Many organizations have looked to improve performance by linking it to pay;
performance related pay (PRP) can take many different forms (Williams 2002) and the

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type of reward and how it is linked to performance management varies by organization
(IDS 2003). There are many differing views on the effectiveness of PRP (Williams
2002) and whether or not it contributes to improved performance. It has been argued
that PRP is a process of control, rather than contributing to real development (Hendry
et al 2000).
 (Gratton 1996)There has been a change in scope of the appraisal process in recent
years, with an increasing focus on employee development, as more and more
businesses focus on how targets are achieved rather than just the achievement itself.
This has led to a combination of both objectives (outputs) and competencies (inputs,
Taylor, 2005) and the recognition that personal development planning (PDPs) are a
fundamental part of a PMS. By offering employees the opportunity of enhancing their
skills through training, levels of self-confidence will improve and performance will be
enhanced (White 1999).
 Willcoxson, (2000) High performance is considered to be achievable in different ways,
two of which are the humanistic and rational process perspectives. According to
proponents of the humanistic perspective, high performance is attributed to investment
in the ‘softer’ people aspects of organizational life. Through valuing, trusting,
developing and empowering employees, encouraging cooperative modes of operating
and stakeholder engagement, organizations can achieve high performance. Emphasis is
also placed on organizational culture as a key element of success or failure
(Willcoxson, 2000).
 In essence the productivity of an organization is jointly determined by the efficiency
with which the organization utilizes several available factors of production which
invariably are scarce relative to the demand for them. As it were therefore, one can
conceive of an equilibrium condition in productivity terms within given and stated
constraints in an organization. Like the price scenario, several factors operate to make
it difficult to optimize the use of human and other resources in the organization such
that the equilibrium condition is not achieved easily. Ouchi (1981) clearly pointed this
out when he addressed the issue of what he labelled “the organizational dilemma”
meaning that the organization’s search for rationality (technological determinism) and
the human beings search for happiness (as in the Doctrine of Hedonism).
 Robert and Angelo, (2001) The success or failure of public sector business
organizations hinges on the ability to attract, develop, retain, empower and reward a
diverse array of appropriately skilled people and is the key to improving organizational
performance The explanation therefore is that human resource managers in the public
sector business concerns should embark on periodic performance management reviews
of their employees in order to re-position their business organizations though owned
by government for better performance and improved competitiveness.

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 Sung & Ashton,(2005)It is the business strategy that gives the high performance
working practices their dynamism and provides the framework against which
performance can be evaluated and improved. Thus, the concern is not with the specific
type or number of practices employed, but the way they are linked to organizational
performance.
 Results from the Watson Wyatt Worldwide (2004) study suggest that PM systems
should recognize high performers and confront poor performers as soon as possible,
eliminate paper forms, and utilize a user-friendly automation. Researchers from
Watson Wyatt Worldwide also assert that if PM systems are designed and
implemented properly, they can lead to positive impact on individual performance as
well as better financial results for the organization (i.e., improvement in shareholder
value).
 A common weakness in the implementation of performance management systems
noted by de Waal (2004) is the focus only on the “structural side”, that is, “the
structure that needs to be in place to be able to use performance management such as
critical success factors & key performance indicators, possibly supported by a balance
scorecard”. De Waal (2004) argues that successful implementation also requires
attention to the “behavioral side” that is, the necessary performance-driven behavior
required from organizational members to achieve the desired objectives. According to
de Waal (2004), appropriate behaviors, including attitudes and beliefs, depend on a
range of factors including management style, the perceived relevance of performance
indicators, the degree to which employees feel they can influence change, and the
quality of communication within the organization.
(Source : http://eprints.jcu.edu.au/26275/ ).
 A study conducted by McDonald and Shield of Hewitt Associates found that companies
that used performance management programs had greater profits, better cash flow,
stronger stock market performance and greater stock value than companies that did not.
Not only performance management improved financial performance, but it also
improved productivity; companies with such programs had higher sales per employees
(Rheem, 1995). Nonetheless, performance management has been mistaken as performance
evaluation. As a matter of fact, both performance management and performance evaluation
are related but they are not exactly the same concept. Performance management is a
systematic process for improving organizational performance by developing the performance
of individuals and teams; it is a mean of getting better results from the organization, teams,
and individuals by understanding and managing performance within an agreed framework of
planned goals, standards, and competence requirement
(Armstrong, 2006). While performance evaluation is a process of assess and rate past
performance of individuals or groups (Oct 2004). Performance evaluation is just a part of
performance management.

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47. Page | 47

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CHAPTER-4
RESEARCH
METHODOLOGY
CHAPTER-4
RESEARCH METHODOLOGY
4.1 TITLE OF THE RESEARCH STUDY :
“An Analytical Study of Performance Management System as a tool for Effective performance :
A study of Selected employees in Vijayjyot Seats Private Limited”.
4.2 DURATION OF THE RESEARCH STUDY :
This study was carried out for duration of 2 month.
4.3 BASIC TERMS OF PRESENT RESEARCH STUDY :
Performance : Performance means both behaviours and results. Behaviours emanate from
the performer and transform performance from abstraction to action. Not

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just the instruments for results, behaviours are also outcomes in their own
right- the product of metal and physical effort applied to tasks- and can be
judged apart from results (Brumbrach,1988).
Management :Management is the art of getting things done through and with people in
formally organized group (According to Harold Koontz).
System : An organized, purposeful structure that consists of interrelated and
interdependent elements (components, entities, factors, members, parts
etc.). These elements continually influence one another (directly or
indirectly) to maintain their activity and the existence of the system, in
order to achieve the goal of the system.(www.businessdictonary.com)
4.4 RATIONALE OF THE RESEARCH STUDY :
When it comes to performance, employee’s performance is one the main in organisational
success. Therefore, it is an need of the hour where organizational has to make very specific
efforts for improving employee’s performance to optimally utilize knowledge and skills of
their employees. The proposed research study also would report on employee’s feedback
as well as expectations & experiences with regard to selected performance management
system. It also list out suggestions for an overall improvement for employees effective
performance. The research study would make an attempt to find the impact of
performance management system on effective employee’s performance.
4.5 SCOPE & COVERAGE OF RESEARCH STUDY :
The research was conducted in Vijayjyot Seats Private Limited. The research study was
focus on performance management system in Vijayjyot seats private limited. It also
measure & evaluate the effective performance on the basis of employee’s overall
awareness, expectations & satisfaction or dissatisfaction as an outcome of offering various
kinds of incentives & employee’s morale as offered by the performance management
system of Vijayjyot seats (P) Ltd.

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4.6 OBJECTIVES OF RESEARCH STUDY :
The objectives of the study are.......
 To empirically assess performance management as a tool for improving
performance.
 To study the process and methods of existing performance management systems.
 To identify the effects of performance review techniques on employee’s
performance.
 To study of performance review techniques; employee’s performance; performance
incentives and employee’s morale.
4.7 RESEARCH DESIGN :
The research design of this study considering its objectives, scope & coverage was
exploratory as well as descriptive in nature.
4.8 SOURCES OF INFORMATION :
4.8.1 PRIMARY DATA :
The primary data has been obtained from the selected employees & senior executive
at various departments of Vijayjyot Seats Private Limited through circulation of the
structured non-disguised questionnaire.
4.8.2 SECONDARY DATA :
The secondary data has been obtained from published as well as unpublished
literature on the topic and from Books, Journals, News Papers, Research Articles,
Thesis, Websites, Magazines etc.
4.9 SAMPLING DECISIONS:

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4.9.1 SAMPLE SIZE:
Appropriate number of sample size (i.e. 60) was put to used for the purpose of
collecting primary data from the selected employees of different departments of the
Vijayjyot Seats Private Limited.
4.9.2 SAMPLING METHOD:
Non-probability sampling design based on convenient sampling method has been
used for this research study.
4.9.3 SAMPLING FRAME :
The representative sampling units in appropriate & justified size has been
conveniently drawn from amongst different employees across various heterogeneous
socio- economic age groups, occupations, educational qualifications,
gender who have availed incentives & employee’s morale as offered by the
performance management system of the Vijayjyot Seats Private Limited.
4.9.4 RESEARCH INSTRUMENT :
A structured non-disguised questionnaire has been prepared to get the relevant
information from the respondents. The questionnaire consists of variety of questions
presented to the respondents for their responses. The researcher has been used
questionnaire with the support & cooperation of the selected respondents of various
departments at managerial and non-managerial level of Vijayjyot Seats Private
Limited.
4.9.5 SAMPLING MEDIA :
Sampling media has been in the form of Filling up of questionnaire.

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4.10 DATA COLLECTION, ANALYSIS & INTERPRETATION :
The collected information and primary data has been subjected to data analysis and
interpretation, content analysis and statistical analysis. The collected primary data has
been pre-coded considering the designing of the structured non-disguised questionnaire.
The primary data has been scrutinized, edited and validated and thereafter it has been
presented in the forms of tables, charts, graphs and diagrams as the case may be.
4.11 SIGNIFICANCE OF THE RESEARCH STUDY :
This research study has covered the performance management system which help to find
effective performance of the employees. The employees has been aware of the
performance standard of the company. It has been create awareness of performance
management system to improve effective performance and also to the different criteria of
the Vijayjyot Seats Private Limited. This research study also assists to Vijayjyot Seats
Private Limited authorities in the designing of the performance management system for
improving performance. Organisation will be able to develop performance review
techniques to control the performance of the employees.
4.12 LIMITATIONS OF THE RESEARCH STUDY :
 The researcher has been use selected statistical tools which are relevant to
research study & thus having limited generalizability.
 The employees were reluctant to give correct information.
 The investigator intended to cover only few areas of performance management
system.
 The sample size selected by the researcher is limited.
 The time factor in collecting the responses as in conducting the research study has
limited factor.

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 In lieu of the variation in the cooperation and involvement of selected employees
at different departments of Vijayjyot Seats Private Limited, there may be
inaccuracy of the responses given by them.

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55. Page | 55
CHAPTER–5
DATA ANALYSIS &
INTERPRETATIONS
CHAPTER – 5
DATA ANALYSIS & INTERPRETAION
Section A : General Profile of Respondents:

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(1) Gender :
TABLE: 1
Sr.
No.
Gender Frequency Percentage
(%)
1. Male 52 87
2. Female 08 13
Total 60 100
Interpretation : From the above table, 87% of employees lies under the male
category and 13% employees lies under the Female category.
Majority of the employees lies under the Male category.

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(2) Age :
TABLE: 2
Sr. No Age Frequency Percentage (%)
1 20-25 12 21
2 26-35 24 41
3 36-50 20 35
4 50 above 02 3
Total 60 100%
Interpretation : The chart depicts that :
41% respondents tend to age between 26-35,
35% respondents tend to age between 36-50,
21% respondents tend to age between 20-25 and;
03% respondents tend to age between 50 above.
Majority of the respondents tend to age between 26-35.

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(3) Qualification :
TABLE: 3
Sr. No Educational Qualification Frequency Percentage (%)
1 Under Graduate 6 10
2 Graduate 22 37
3 Post Graduate 12 20
4 Diploma 6 10
5 Others 14 23
Total 60 100%
Interpretation : The chart depicts that :
37% respondents are Graduate,
23% respondents are others,
20% respondents are Post Graduate,
10% respondents are Diploma and;
10 % respondents are Under Graduate.
Majority respondents are Graduate.
(4) Job Experience :
TABLE: 4
Sr. No Job Experience Frequency Percentage (%)
1 Less than one year 04 07
2 2-10 years 34 56
3 More than 10 years 22 37
Total 60 100%

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Interpretation : From the above table, 56% of the respondents have work
experience of 2-10 years, 37% of the respondents have work experience of
more than 10 years, and 7% of the respondents have work experience of less
than one year.
Majority of the employees in the organization have a work experience of 1-5
years.
Section B : Nature of Current Performance Management System :
(1) Do your Organization operate formal performance management system?
TABLE: 5
Sr. No. Response Frequency Percentage (%)
1 Yes 52 87
2 No 08 13
Total 60 100

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Interpretation : From the above table, 87% respondents are in favour of
organization operate formal performance management system, 13% respondents are
not in favour of organization operate in formal performance management system.
(2) If yes, which of the following groups of employees do this processes apply to?
TABLE: 6

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Sr. No. Levels Frequency
1 Senior Managers 2
2 Other Managers/ Team leaders 10
3 Technical/ clerical 40
4 Professionals 00
5 Manual/ Blue-collar 00
Total 52
Interpretation : From the above table, out of 52 respondents, 40 respondents from
Technical/ clerical employees do this process applied,10 respondents from other

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managers/ team leaders do this process applied and remaining 02 respondents (i.e.
senior managers) do this process applied.
Mostly this process applied to Technical/ clerical group of employees.
(3) What are the techniques that are used in your organisation for assessing
performance?
TABLE: 7
Sr.
No.
Techniques Frequency Percentage (%)
1 Observation 6 10
2 Assessment & Development Centre 2 03
3 Checklist 52 87
Total 60 100
Interpretation : From the above table, 87% respondents are in favour of
checklist techniques that are used in organisation for assessing performance,10%
respondents are in favour of observation techniques that are used in organisation
for assessing performance, and 3% respondents are in favour of assessment &
development centres techniques that are used in organisation for assessing
performance.
Majority respondents believed in Checklist techniques that are used in
organisation for assessing performance.
(4) Please indicate which of the following methods of performance appraisal from a
part of your system?
TABLE: 8
Sr. No. Methods Frequency Percentage (%)
1 Written Essay Method 50 83
2 Graphical Rating Scale 04 7
3 Ranking Method 04 7
4 360 Degree Appraisal 00 00
5 Self Appraisal 02 3
6 Critical Incident
Assessment
00 00

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Total 60 100
Interpretation : From the above table, out of 60 respondents, 50 respondents that
are believed in Written essay method of performance appraisal from a part of system,
04 respondents are believed in graphical rating scale of performance appraisal from a
part of system, 04 respondents are believed in ranking method of performance
appraisal from a part of system and; 02 respondents are believed in self-appraisal of
performance appraisal from a part of system. None of the respondents are believed in
360 degree appraisal & critical incident assessment of performance appraisal from a
part of system.
Majority of respondents are believed in Written essay method of performance
appraisal from a part of system.
(5) Please rate your satisfaction with the following part of your current performance
management system :
1. Performance Planning/ Goal Setting :
TABLE: 9
Sr. No Particulars Frequency Percentage (%)
1 Very Satisfied 52 87

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2 Satisfied 08 13
3 Neutral 00 00
4 Unsatisfied 00 00
5 Very Unsatisfied 00 00
Total 60 100%
Interpretation : From the above table, 87% respondents are very satisfied about
performance planning/ goal setting of current performance management system, 13%
respondents are satisfied about performance planning/goal setting of current performance
management system.
2. Performance Evaluation :
TABLE: 10
Sr. No Particulars Frequency Percentage (%)
1 Very Satisfied 52 87
2 Satisfied 00 00
3 Neutral 00 00
4 Unsatisfied 08 13
5 Very Unsatisfied 00 00
Total 60 100%

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Interpretation : From the above table, 87% respondents are very satisfied about
performance evaluation of current performance management system, 13% respondents
are unsatisfied about performance evaluation of current performance management system.
3. Development Planning :
TABLE: 11
Sr. No Particulars Frequency Percentage (%)
1 Very Satisfied 50 83
2 Satisfied 02 3
3 Neutral 00 00
4 Unsatisfied 08 14
5 Very Unsatisfied 00 00
Total 60 100%

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Interpretation : From the above table, 83% respondents are very satisfied about
development planning of current performance management system, 3% respondents are
satisfied about development planning of current performance management system, 14%
respondents are unsatisfied about development planning of current performance
management system.
Majority respondents are very satisfied about development planning of current
performance management system
4. 360 Degree Feedback :
TABLE: 12
Sr. No Particulars Frequency Percentage (%)
1 Very Satisfied 42 70
2 Satisfied 08 14
3 Neutral 08 13
4 Unsatisfied 02 03
5 Very Unsatisfied 00 00
Total 60 100%

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Interpretation : From the above table, 70% respondents are very satisfied about 360
degree feedback of current performance management system, 14% respondents are
satisfied about 360 degree feedback of current performance management system, 13%
respondents are neutral about 360 degree feedback of current performance management
system.
Majority of respondents are very satisfied about 360 degree feedback of current
performance management system.
5. Coaching &/or Mentoring :
TABLE: 13
Sr. No Particulars Frequency Percentage (%)
1 Very Satisfied 52 87
2 Satisfied 00 00
3 Neutral 08 13
4 Unsatisfied 00 00
5 Very Unsatisfied 00 00
Total 60 100%

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Interpretation: From the above table, 87% respondents are very satisfied about
coaching & mentoring of current performance management system,13% respondents are
neutral about coaching & mentoring of current performance management system.
Majority respondents are very satisfied about coaching & mentoring of current
performance management system.
6. Training:
TABLE: 14
Sr. No Particulars Frequency Percentage (%)
1 Very Satisfied 52 87
2 Satisfied 00 00
3 Neutral 00 00
4 Unsatisfied 02 3
5 Very Unsatisfied 06 10
Total 60 100%

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Interpretation : From the above table, 87% respondents are very satisfied about
training of current performance management system,10% respondents are very unsatisfied
about training of current performance management system, 3% respondents are
unsatisfied about training of current performance management system.
Majority respondents are very satisfied about training of current PMS.
7. Leadership Development :
TABLE: 15
Sr. No Particulars Frequency Percentage (%)
1 Very Satisfied 50 83
2 Satisfied 02 4
3 Neutral 00 00
4 Unsatisfied 02 3
5 Very Unsatisfied 06 10
Total 60 100%

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Interpretation : From the above table, 83% respondents are very satisfied about
leadership development of current performance management system, 10% respondents
are very unsatisfied about leadership development of current performance management
system, 4% respondents are satisfied and 3 % respondents are unsatisfied about
leadership development of current performance management system.
Majority respondents are very satisfied about leadership development of current
performance management system.
8. Rewards :
TABLE: 16
Sr. No Particulars Frequency Percentage (%)
1 Very Satisfied 48 80
2 Satisfied 04 6
3 Neutral 00 00
4 Unsatisfied 04 7
5 Very Unsatisfied 04 7
Total 60 100%

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Interpretation : From the above table, 80% respondents are very satisfied about
rewards of current performance management system, 6% respondents are satisfied about
rewards of current performance management system, 7 % respondents are unsatisfied
about rewards of current performance management system, 7% respondents are very
unsatisfied about rewards of current performance management system.
Majority of respondents are very satisfied about rewards of current PMS.
9. Discipline :
TABLE: 17
Sr. No Particulars Frequency Percentage (%)
1 Very Satisfied 42 73
2 Satisfied 10 15
3 Neutral 00 00
4 Unsatisfied 06 9
5 Very Unsatisfied 02 3
Total 60 100%

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Interpretation : From the above table,73% respondents are very satisfied about
discipline of current PMS,15% respondents are satisfied about discipline of current
performance management system, 9% respondents are unsatisfied about discipline of
current performance management system,3% respondents are very unsatisfied about
discipline of current performance management system.
Majority of respondents are very satisfied about discipline of current PMS.
10.Effectiveness of Current PMS :
TABLE: 18
Sr. No Particulars Frequency Percentage (%)
1 Very Satisfied 50 83
2 Satisfied 00 00
3 Neutral 00 00
4 Unsatisfied 04 7
5 Very Unsatisfied 06 10
Total 60 100%

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Interpretation : From the above table, 83% respondents are very satisfied about
effectiveness of current PMS, 7% respondents are unsatisfied about effectiveness of
current PMS, 10% respondents are very unsatisfied about effectiveness of current PMS.
Majority of respondents are very satisfied about effectiveness of current PMS.
(6) What are the major elements of your business strategy at present? (give rank in order of
importance, with one being most importance).
TABLE: 19
R a n
k
Business Strategy Frequenc
y
1 Increase Productivity 40
2 Increase Efficiency 50
3 Improve Quality 42
4 Reduce production time 50
5 Expand Market 42
6 Reduce cost 42

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Interpretation : From the above table, 40 respondents give rank 1st to the Increase
Productivity, 50 respondents give rank 2nd to the Increase Efficiency,42 respondents give
rank 3rd to the improve quality, 50 respondents give rank 4th to the reduce production
time, 42 respondents give rank 5th to the expand market, 42 respondents give rank 6th to
the reduce cost.
Increase productivity is major elements of business strategy at present.
(7) Are you believe the current performance management system improving
performance?
TABLE: 20
Response Frequency Percentage (%)
Yes 50 83
No 10 17
Total 60 100

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Interpretation : From the above table, 83% respondents are believed the current
performance management system improving performance, 17% respondents are believed the
current performance management system not improving performance.
Majority of them are believed the current PMS improving performance.
Section C: Perception of HR Professionals about PMS :
(1) Performance management helps me to motivate my team:

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TABLE: 21
Particulars Frequency Percentage (%)
Strongly Agree 05 100
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 00 00
Total 05 100
Interpretation : From the above table, all HR professionals are strongly agree with PM
helps to them motivate team.
(2) Performance management helps me decide what to pay members of my teams :
TABLE: 22
Particulars Frequency Percentage (%)
Strongly Agree 05 100
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 00 00
Total 05 100

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Interpretation : From the above table, all HR professionals are strongly agree with PM
helps to decide what to pay members of their teams.
(3) Performance management helps me to develop the skills & capabilities of my
team:
TABLE: 23
Particulars Frequency Percentage (%)
Strongly Agree 05 100
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 00 00
Total 05 100
Interpretation : From the above table, all HR professionals are strongly agree with PM
helps them to develop the skills & capabilities of their team.

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(4) Performance management helps my team to perform better :
TABLE: 24
Particulars Frequency Percentage (%)
Strongly Agree 05 100
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 00 00
Total 05 100
Interpretation : From the above table, all HR professionals are strongly agree with PM
helps their team perform better.
(5) Performance management helps me to communicate to my team what is expected
of them:
TABLE: 25
Particulars Frequency Percentage (%)
Strongly Agree 05 100
Agree 00 00
Neutral 00 00
Disagree 00 00
Strongly Disagree 00 00
Total 05 100

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Interpretation : From the above table, all HR professionals are strongly agree with PM
helps them to communicate their team what is expected of them.
(6) I am not comfortable with conducting performance reviews :
TABLE: 26
Particulars Frequency Percentage (%)
Strongly Agree 01 20
Agree 01 20
Neutral 00 00
Disagree 00 00
Strongly Disagree 03 60
Total 05 100