TOPIC

INTRODUCTION

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INTRODUCTION

Performance Management System is a process that consolidates: goal setting, performance
appraisal, and deelopment into a single common system, the aim of !hich is to ens"re that
the employee#s performance is s"pporting the company#s strategic aim
Performance Management System is an integrated process, it includes the practices through which
the manager defines the employees goal and work, develops the employees capabilities, and
evaluates and rewards the persons effort all within the frame work of how the employees
performance should be contributing to achieving the companys goals.
Fully realied, performance management is a holistic process, bringing together many of the
elements which go to make up the successful practice of people management, including in
particular learning and development. !ut for this very reason, it is comple" and capable of being
misunderstood
$rmstrong and %aron define performance management as#
&$ process !hich contri'"tes to the effectie management of indiid"als and teams in order to
achiee high leels of organi(ational performance) $s s"ch, it esta'lishes shared
"nderstanding a'o"t !hat is to 'e achieed and an approach to leading and deeloping
people !hich !ill ens"re that it is achieed&.
$hey go on to stress that it is %a strategy which relates to every activity of the organiation set in the
conte"t of its human resource policies, culture, style and communications systems. $he nature of
the strategy depends on the organiational conte"t and can vary from organiation to organiation.%
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'n other words performance management should be#
Strategic ( it is about broader issues and longer(term goals
Integrated ( it should link various aspects of the business, people
management, and individuals and teams.
't should incorporate#
Performance improement ( throughout the organiation, for individual, team and
organiational effectiveness
Deelopment ( unless there is continuous development of individuals and teams,
performance will not improve
Managing 'ehaior ( ensuring that individuals are encouraged to behave in a way that
allows and fosters better working relationships.
)rmstrong and !aron Stress that at its best performance management is a tool to ensure that
managers manage effectively* that they ensure the people or team they manage#
know and understand what is e"pected of them
have the skills and ability to deliver on these e"pectations
are supported by the organiation to develop the capacity to meet these e"pectations are
given feedback on their performance
have the opportunity to discuss and contribute to individual and team aims and ob+ectives
't is also about ensuring that managers themselves are aware of the impact of their own behaviour
on the people they manage and are encouraged to identify and e"hibit positive behaviours.
So performance management is about establishing a c"lt"re in which individuals and groups take
responsibility for the continuous improvement of business processes and of their own skills,
,
behaviour and contributions. 't is about sharing e"pectations. Managers can clarify what they
e"pect individual and teams to do* likewise individuals and teams can communicate their
e"pectations of how they should be managed and what they need to do their +obs. 't follows that
performance management is about interrelationships and about improving the -uality of
relationships ( between managers and individuals, between managers and teams, between
members of teams and so on, and is therefore a *oint process. 't is also about planning ( defining
e"pectations e"pressed as ob+ectives and in business plans ( and about meas"rement* the old
dictum is %'f you can%t measure it, you can%t manage it%. 't should apply to all employees, not +ust
managers, and to teams as much as individuals. 't is a contin"o"s process, not a one(off event.
.ast but not least, it is holistic and should pervade every aspect of running an organiation.
+o! does performance management !or,-
!ecause performance management is /or should be0 so all(pervasive, it needs structures to
support it. $hese should provide a framework to help people operate, and to help them to help
others to operate. !ut it should not be a rigid system* there needs to be a reasonable degree of
fle"ibility to allow people freedom to operate.
.Performance management is a process, not an eent) It operates as a contin"o"s cycle)/
1orporate strategic goals provide the starting point for business and departmental goals, followed
by agreement on performance and development, leading to the drawing up of plans between
individuals and managers, with continuous monitoring and feedback supported by formal reviews.
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Direction sharing means communicating the organiations higher(level goals /including its
vision, mission, values, and strategy0 throughout the organiation and then translating these into
doable departmental goals.
Role clarification means clarifying each employees role in terms of his day to day work.
3oal setting and planning means translating organiational and departmental goals into specific
goals for each employee.
3oal alignment means having a process in place that allows any manager to see the link between
an employees goals and those of the department and organiation.
Deelopmental goal setting involves ensuring that each employee 3thinks through, at the start of
any performance period, 4what do ' have to do to achieve my goals56
Ongoing performance monitoring includes using computer(based systems that measure and
then e(mail progress and e"ception reports based on the persons progress toward meeting his or
her performance goals.
Ongoing feed'ac, incl"des both face(to(face and computer based feedback regarding progress
towards goals. 1oaching and support should be an integral part of the feedback process.
Performance assessment 5appraisal6 is +ust one element in the performance management
process. $he focus in performance management should be on planning and influencing how the
employees performance produces improved company results.
Re!ards, recognition, and compensation all play a role in providing the conse-uences needed
to keep the employees goal(directed performance on track.
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7or,flo!, process control and ret"rn on inestment management means making sure that the
employees performance is linked in a meaningful way via goal setting to the companys overall
measurable performance.

Tools of a Performance Management System
't is impossible to go into details of each of the tools used by performance management, so the
following paragraphs simply provide an outline.
Performance and deelopment reie!s
Many organiations without performance management systems operate %appraisals% in which an
individual%s manager regularly /usually annually0 records performance, potential and
development needs in a top(down process.
't can be argued that the perceived defects of appraisal systems /that line managers regarded
them as irrelevant, involving form(filling to keep the personnel department happy, and not as a
normal process of management0 led to the development of more rounded concepts of
performance management. 8evertheless, organiations with performance management systems
need to provide those involved with the opportunity to reflect on past performance as a basis for
making development and improvement plans, and the performance and development review
meeting /note the terminology* it is not appraisal0 provides this chance. $he meeting must be
constructive, and various techni-ues can be used to conduct the sort of open, free(flowing and
honest meeting needed, with the reviewee doing most of the talking.
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8earning and deelopment
:mployee development is the main route followed by most organisations to improved
organisational performance, which in turn re-uires an understanding of the processes and
techni-ues of organisational, team and individual learning. Performance reviews can be
regarded as learning events, in which individuals can be encouraged to think about how and in
which ways they want to develop. $his can lead to the drawing up of a personal development
plan /P;P0 setting out the actions they propose to take /with the help of others, not least their
managers0 to develop themselves. $o keep development separate from performance and salary
discussions, development reviews may be held at other times, for e"ample, on the anniversary of
+oining an organisation.
Coaching
1oaching is an important tool in learning and development. 1oaching is developing a person%s
skills and knowledge so that their +ob performance improves, leading to the achievement of
organisational ob+ectives. 1oaching is increasingly recognised as a significant responsibility of
line managers, and can play an important part in a P;P. $hey will take place during the review
meetings, but also and more importantly should be carried out throughout the year.
O'*ecties and performance standards
<b+ectives /some organisations prefer to use %goals%0 describe something to be accomplished by
individuals, departments and organisations over a period of time. $hey can be e"pressed as
targets to be met /such as sales0 and tasks to be completed by specified dates. $hey can be work(
=
related, referring to the results to be attained, or personal, taking the form of developmental
ob+ectives for individuals. <b+ectives need to be defined and agreed. $hey will relate to the
overall purpose of the +ob and define performance areas ( all the aspects of the +ob that
contribute to achieving its overall purpose. $argets then need to be set for each performance
area, for e"ample, increase %sales by " per cent%, %reduce wastage by y per cent% >
)longside ob+ectives are performance standards. $hey are used when it is not possible to set
time(based targets, or when there is a continuing ob+ective which does not change significantly
from one review period to the ne"t and is a standing feature of the +ob. $hese should be spelled
out in -uantitative terms if possible, for e"ample, speed of response to re-uests or meeting
defined standards of accuracy.
Competences and competencies
Some organisations, but by no means all, use competences and competencies as components of
performance management. 1ompetences describe what people need to be able to do to perform a
+ob well /the
descriptions in 8ational ?ocational @ualifications are e"amples of competences0. 1ompetencies
/more helpfully, %behavioural competencies%0
are defined as the dimensions of behaviour that lie behind competent performance. $hough the
language used does not help in making the distinction, to perform well it is necessary both to be
able to do a +ob at a technically competent level and to have behaviours that reinforce those
technical skills* an obvious e"ample of behaviour is the surgeon who needs a good bedside
manner and to be able to communicate with colleagues, in addition to surgical skills. $here are
various techni-ues for measuring competence /some organisations prefer to use %capability%0 and
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once an analysis has been made, it provides a tool for measuring performance and, of course, for
providing development activities to help people meet the re-uired standards.
Meas"rement
$o improve performance, you need to know what current performance is. Measurement
provides the basis for providing and generating feedback, and thus can build the platform for
further success or identify where things are going less well so that corrective action can be
taken. !ut what gets measured5 Measure the wrong things, perhaps simply because they are
easy to measure, and an entire performance management system can fall into disrepute. Bse too
many measures and you can%t see the wood for the trees.
and work outputs are used but the emphasis varies according to categories of staff ( for e"ample,
a senior manager would be mainly measured by meeting ob+ectives, but a production worker
mainly by achieving outputs. 'ncreasingly organiations are using more sophisticated measuring
techni-ues such as balanced scorecards or C<' /return on investment0.
'ndividual and team performance needs to be capable of being linked in an understandable
manner to organiational performance, and there are various approaches to this. $hey include
the %balanced scorecard%, a set of measures that looks at the business from customer, internal,
learning and financial perspectives* the :uropean Foundation for @uality Management, which
indicates that customer satisfaction, employee satisfaction, and impact on society are achieved
through leadership* and other economic measures, including traditional financial measures.
Measures used will depend on the organiation* for e"ample, public service organiations are
likely to use different measures from private companies.
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Pay
Performance management is often linked with performance9related pay /PCP0, although by no
means all organiations claiming to use performance management have PCP. 8evertheless, PCP
is an important element in many performance management schemes because it is believed to
motivate* it is said to deliver the
message that performance and competence are important, and it is thought to be fair to reward
people according to their performance, contribution or competence.
Teams $eam working has become an important part of life in every organiations, and where
teams are permanent or for longstanding pro+ects, measures can be based on team performance.
$hey will mainly be concerned with output, activity levels /eg speed of servicing0, customer
service and satisfaction, and financial results. 'ndeed, team measures are not very different from
those for individuals, and of course team members need to agree their ob+ectives and receive
feedback in the same way as if they were not part of a team. <ther team members can contribute
towards this, in a process of peer review)
:;< degree feed'ac,
,9E degree feedback became increasingly talked about in the 1DDEs, if not widely used. 't
consists of performance data generated from a number of sources, who can include the person to
whom the individual being assessed reports, people who report to them, peers /team colleagues
or others in the organiation0, and internal and e"ternal customers. 't can also include self(
assessment. ,9E degree feedback is used mainly as part of a self(development or management
development programme, and is felt to provide a more rounded view of people, with less bias
1E
than if an assessment is conducted by one individual. ,9E degree feedback became increasingly
talked about in the
1DDEs, if not widely used. 't consists of performance data generated from a number of sources,
who can include the person to whom the individual being assessed reports, people who report to
them, peers /team colleagues or others in the organiation0, and internal and e"ternal customers.
't can also include self(assessment. ,9E degree feedback is used mainly as part of a self(
development or management development programme, and is felt to provide a more rounded
view of people, with less bias than if an assessment is conducted by one individual.
Performance pro'lem soling
Performance management is a positive process, and good systems will create a culture in
which success is applauded. 8evertheless, poor performance will e"ist. 't may be a result of
inade-uate leadership, bad management or defective systems of work, and if so, remedies /often
involving learning and development0 can be put in place. !ut individuals may under(perform and
improvements can be achieved through continuing feedback and +oint discussion between them
and their managers, involving analying and identifying the problem, establishing the reasons for
the shortfall, and deciding and agreeing the action to be taken. 'f all this fails, disciplinary action
may need to be taken, as in any organiation.
7hat is the need of Performance Management System-
$he increasing use of Performance Management System reflects, first, the popularity of the total
-uality management /$@M0 concepts advocated several years ago by management e"perts like
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F.:dwards ;eming. !asically, ;eming argued that an employees performance is more a
function of things like training, communication, tools and supervision than of his or her own
motivation.
Performance managements emphasis on the integrated nature of goal setting, appraisal, and
development reflects this assumption. Second, it reflects the fact that a vast array of studies have
shown that traditional performance appraisal are often not +ust useless but counterproductive.
$hird, performance management as a process also e"plicitly recognie that in todays globally
competitive industrial environment, every employees efforts must focus like a laser on helping
the company to achieve its strategic goals. 'n that regard, adopting an integrated, performance
management approach to guiding, developing, and appraising employees also aids the
employers continuous improvement efforts.
Contin"o"s Improement refers to a management philosophy that re="ires employers to
contin"o"sly set and relentlessly meet eer higher ="ality, cost, deliery, and aaila'ility
goals) Contin"o"s improement means eradicating !astes !hereer they are) 1entral to this
philosophy is the idea that each employee must continuously improve his or her own personal
performance, from one appraisal period to the ne"t. :ffective performance management relies on
systems and people working together to make sure the right things happen. $he hard systems,
processes and data, are inseparable the soft aspects such as culture, leadership and learning* one
does not work without the other.
) system does not stand apart from day(to(day management. :ffective performance management
arrangements can help to integrate planning, review, financial management and improvement
systems to enable policy makers and managers to make informed decisions and improve services.
1&
Setting "p of a good performance management system
Setting "p of a good performance management system not happen oernight or 'y accident,
yo" need to consider its design and caref"lly plan ho! it !ill !or, 'efore managers 'egin
"sing it to eal"ate employees)
$ good performance management system sho"ld proide these fo"r 'asic 'enefits:
) clear understanding of +ob e"pectations.
Cegular feedback about performance.
)dvice and steps for improving performance.
Cewards for good performance.
3oal of a performance management system is to help boost employee performance and
ultimately the productivity the business. For it to be effective, a performance management
system should incorporate the following critical elements#
1,
Step 'y step to a performance management system:
Preparation and Planning for Performance Management
Much work is invested, on the front end, to improve a traditional employee appraisal process.
'n fact, managers can feel as if the new process is too time consuming. <nce the foundation of
developmental goals is in place, however, time to administer the system decreases. :ach of
these steps is taken with the participation and cooperation of the employee, for best results.
Performance Management and Deelopment in the 3eneral 7or, System
;efine the purpose of the +ob, +ob duties, and responsibilities.
;efine performance goals with measurable outcomes.
;efine the priority of each +ob responsibility and goal.
;efine perfomance standards for key components of the +ob.
Gold interim discussions and provide feedback about employee performance, preferably
daily, summaried and discussed, at least, -uarterly. /Provide positive and constructive
feedback.0
Maintain a record of performance through critical incident report.
Provide the opportunity for broader feedback, use a ,9E degree performance feedback
system that incorporates feedback from the employees peers, customers and people who
may report to him.
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;evelop and administer a coaching and improvement plan if the employee is not meeting
e"pectations)
Immediate preparation for the performance deelopment meeting:
Schedule the Performance ;evelopment Planning /P;P0 meeting and define pre(work
with the staff member to develop the performance development plan /P;P0.
$he staff member reviews personal performance, documents 3self(assessment6
comments and gathers needed documentation, including ,9E degree feedback results,
when available.
$he supervisor prepares for the P;P meeting by collecting data including work records,
reports, and input from others familiar with the staff persons work.
!oth e"amine how the employee is performing against all criteria, and think about areas
for potential development.
;evelop a plan for the P;P meeting which includes answers to all -uestions on
The Performance Deelopment Process 5PDP6 Meeting:
:stablish a comfortable, private setting and rapport with the staff person. ;iscuss and
agree upon the ob+ective of the meeting, to create a performance development plan.
$he staff member discusses the achievements and progress he has accomplished during
the -uarter.
$he staff member identifies ways in which he would like to further develop his
professional performance, including training, assignments, new challenges and so on.
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$he supervisor discusses performance for the -uarter and suggests ways in which the
staff member might further develop his performance.
)dd the supervisor%s thoughts to the employee%s selected areas of development and
improvement.
;iscuss areas of agreement and disagreement, and reach consensus.
:"amine +ob responsibilities for the coming -uarter and in general.
)gree upon standards for performance for the key +ob responsibilities.
Set goals for the -uarter.
;iscuss how the goals support the accomplishment of the organiation%s business plan,
the department%s ob+ectives and so on.
)gree upon a measurement for each goal.
)ssuming performance is satisfactory, establish a development plan with the staff person,
that helps him grow professionally in ways important to him.
'f performance is less than satisfactory, develop a written performance improvement plan,
and schedule more fre-uent feedback meetings. Cemind the employee of the conse-uences
connected with continued poor performance.
$he supervisor and employee discuss employee feedback and constructive suggestions for
the supervisor and the department.
;iscuss anything else the supervisor or employee would like to discuss, hopefully
maintaining the positive and constructive environment established thus far, during the
meeting.
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Mutually sign the performance development tool to indicate the discussion has taken place.
:nd a meeting in a positive and supportive manner, $he supervisor e"presses confidence
that the employee can accomplish the plan and that the supervisor is available for support
and assistance.

1ollo!ing the performance deelopment process meeting:
'f a performance improvement plan was necessary, follow up at the designated times.
Follow up with performance feedback and discussions regularly throughout the -uarter. /)n
employee should never be surprised about the content of feedback at the performance
development meeting.0
$he supervisor needs to keep commitments relative to the agreed upon development plan,
including time needed away from the +ob, payment for courses, agreed upon work
assignments and so on.
$he supervisor needs to act upon the feedback from departmental members and let staff
members know what has changed, based upon their feedback.
Forward appropriate documentation to the Guman Cesources office and retain a copy of the
plan for easy access and referral.
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.3oal setting and eal"ation of performance is a contin"o"s process in any organi(ation/
'n the corporate world goal setting or target setting for a given )ppraisal period is a commonly
used term to describe an individuals share of business deliverable.
7hat is the clear meaning of the term ?3oal#-
'f you ask most people, what is their one ma+or ob+ective in life5 $hey would probably give you a
vague answers such as H ' want to be happy, ' want to be rich I so on. $hey are all#
7ishes and none of them are clear goals
Joal setting is the key of direction in which a person wants to go. )ll of us need directions.
'n a company an employee must know what the companys !usiness plans are and must be able to
draft for himself what he wants to do.
.7+4 $R0 3O$8S IMPORT$NT-
Fould a person sit in a train without knowing where it is going5
$he obvious answer is 8<.
Fhen one buys a train ticket, what does it say5
Starting point
;estination
1A
1lass of travel
Price
Kourney date I time of departure
$rain no. etc.
From the above e"ample we come to know that#
<ur goals should be clear to us, without a clear goal how a person can achieve it. :ither it is
an organiation or an employee, in both case goal should be well define.
TO %03IN 7IT+ 0ND IN MIND
.To 'egin !ith end in mind means to start !ith a clear Understanding of yo"r destination./
't means to know where youre going so that you better understand where you are now and so that
the steps you take are always in the right ;irection.
3"idelines for effectie goal setting
$ssign Specific 3oals :mployees who are given specific goals usually perform better than who
are not.
$ssign Meas"ra'le 3oals :"press goals in -uantitative terms and include target dates or
deadlines. Joals set in absolute terms /such as 3an average daily output of ,EE units60 are less
confusing than goals set in relative terms /such as 3improve production by &EL0.
1D
$ssign Challenging '"t Doa'le 3oals Joals should be challenging, but not so difficult that
they appear impossible or unrealistic. Fhen is a goal 3too difficult6 or 3too hard65 <ne e"pert
says#
A goal is probably too easy if it calls for little or no improvement in performance when
conditions are becoming more favorable positions. A goal is probably too difficult if it calls for
a large improvement in performance when conditions are worsening, or if the targeted level of
performance is well above that of people in comparable positions.
0nco"rage Participation <ne -uestion that comes in the mind of a manager is,
Should ' tell my employees what there goal are5 or, Should ' let them participate with me in
setting there goals5 $he evidence suggests that participatively set goals do not consistently result
in higher performance than assigned goals, nor
do assigned consistently result in higher performance than participatively set
ones. 't is only when the participatively set goals produce higher performance. Participatively set
goals do tend to be set higher. 'ts the fact that the goal is more difficult, not that it was
participatively set, that e"plains the higher performance.
Performance management is a positive process, and good systems will create a culture in which
success is applauded. 8evertheless, poor performance will e"ist. 't may be a result of inade-uate
leadership, bad management or defective systems of work, and if so, remedies /often involving
learning and development0 can be put in place. !ut individuals may under(perform and
improvements can be achieved through continuing feedback and +oint discussion between them
and their managers,
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3Performance )ppraisal is an ob+ective assessment of an individuals performance against well
defined benchmarks6.
) Performance appraisal is the systematic evaluation of the individual with respect to his or her
performance on the +ob and potential for the development.
Performance appraisal actively involves employees in understanding what is e"pected of them.
!y setting agreed ob+ectives and later reviewing the results makes each employee responsible
for his or her performance.
&1
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Performance appraisal is the systematic description of an employees +ob relevant
strengths and weaknesses.
$he basic purpose is to find out how well the employee is performing the +ob and establish
a plan of improvement.
)ppraisals are arranged periodically according to a definite plan.
Performance appraisal is not a +ob evaluation. Performance appraisal refers to how well
someone is doing the assigned +ob. Kob evaluation determines how much a +ob is worth to
the organiation and, therefore, what range of pay should be assigned to +ob.
Performance appraisal is a continuous process in every large scale organiation.
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Performance appraisal is a necessity for every organiation in order to#
Provide information about the performance ranks based on which decision regarding
salary fi"ation, confirmation, promotion, transfer and demotion are to be taken.
Feedback information received about the level of active +ob participation helps to review
the performance of the subordinate rectifying performance deficiencies and to set new
standards of work, if necessary.
Provide information, which helps to counsel the subordinate.
&&
Provide information to diagnose deficiency in an employee regarding skill, knowledge,
determining training I developmental needs and to prescribe the means for correct +ob
placement.
$o prevent grievances and in disciplinary activities.
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$he main purposes of employee assessment are#
$o effect promotions based on competence and performance.
$o confirm the services of probationary employees upon their completing the probationary
period satisfactorily.
$o assess the training and development needs of employees.
$o let the employees know where they stand insofar as their performance is concerned and
to assist them with constructive criticism and guidance for the purpose of their
development.
$o ensure organiational effectiveness through correcting employee for standard and
improved performance, and suggesting the change in employee behavior.
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)n appraisal is a regular opportunity to identify the deal with all the most important issues
facing the employees.
&,
!y clarifying the employees key ob+ectives, Performance appraisal makes it possible for
the employee to achieve or e"ceed them.
!y recogniing achievements during the previous period, it creates the motivation to
achieve even more.
!y identifying and correcting problems, it improves the employees productivity.
Performance feedback allows the employee, manager and personnel specialists to
intervene with appropriate actions to improve performance.
Performance evaluation help decision maker to determine who should receive pay raise.
Promotions, transfer, and demotion are usually based on part or anticipated performance.
Poor performance may indicate for retaining. .ikewise, good performance may indicate
untapped potential that should be developed.
Performance feedback guides career decisions about specific career paths one should
investigate.
Jood or bad performance implies strengths or weakness in the personnel departments
staffing procedures.
Poor performance may be a symptom of ill(conceived +ob designs. )ppraisals help
diagnose of ill(conceived +ob designs. )ppraisals help diagnose these errors.
)ccurate performance appraisals that actually measure +ob( related performance ensure
that internal placement decisions are not discriminatory.
&2
JoodM !ad performance throughout the organiation indicates how well the human
resource function is performing.
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A) 0sta'lishing standards of performance
B) Comm"nicating performance eCpectations
:) Meas"ring act"al performance
D) Comparing act"al performance !ith standards laid
E) Disc"ssion of appraisal !ith employees
;) Correctie actions
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C)$'8J !')S'S
$he problem with sub+ective measure has the opportunity for bias. $he rater bias includes#
Galo effect
$he error of central tendency
$he leniency and strictness bias
Personal pre+udice
&7
$he Cegency :ffect
Failure of the superior in conducting performance appraisal and post appraisal
interviews.
Most part of the appraisal is based on sub+ectivity.
.ess reliability and validity of the performance appraisal techni-ues.
8egative rating affects interpersonal relations and industrial relations systems.
'nfluence of e"ternal environmental factors and uncontrollable internal factors.
Feedback and post appraisal interview may have a setback on production.
Management emphasies on punishment rather than development of an employee in
performance appraisal.
Some of the ratings particularly both the potential appraisals are purely based on
guess work.
1. $raditional )ppraisal $echni-ues
&. Modern appraisal techni-ues.
Traditional $ppraisal Techni="es:
$he traditional methods of performance appraisal include methods like#
Straight Canking Method
Man(to(Man comparison Method
Jrading
Jraphic Cating Scale
Forced ;istribution Method
1heck .ists
1ritical 'ncidents Method
&9
Jroup appraisal
Field Ceview
Modern appraisal techni="es#
$he Modern methods of performance appraisal include methods like#
,9E degree performance appraisal
Management by <b+ectives
)ssessment centres
!ehaviorally )nchored Cating Scales /!)CS0
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3raphic Rating Scale#
Jraphic rating scales compare individual performance to an absolute standard. 'n
this method, +udgments about performance are recorded on the scale. $he appraiser are supplied
with printed forms containing a number of ob+ectives, behavior and trait based -ualities and
characters to be rated like -uality and volume of work etc. these character is known by the point
given by rater. $he points given by the rater to each character are added up to rind out the
performance. :mployees are ranked on the basis of total points assigned to each one of them.
Ran,ing Method
Bnder this method the employees are ranked from best to worst on some characteristics.
$he rater first finds the employee with the lowest performance in that particular +ob category and
&=
rates the former as the best and the latter as the poorest. $hen the appraiser selects all the
employees in that group and ranks them.
Paired Comparison Method
$his method is relatively simple. Bnder this method, the appraiser ranks the employees by
comparing one employee with all other employees in the group, one at a time. $his
method results in each employee being given a positive comparison total and a certain
percentage of total positive evaluation.
1orced Distri'"tion Method
Forced distribution method is developed to prevent the appraiser too high or too low.
Bnder this method, the rater after assigning the points to the performance of each
employee has to distribute his ratings in a pattern to conform to normal fre-uency
distribution.
Chec,list Method
$he checklist is simple rating techni-ue in which the supervisor is given a list of statement
or words and asked to check statements representing the characteristics and performance of each
employee. $here are three types of checklists methods vi. simple checklists, weighted checklist
and forced choice method.
&A
0ssay $ppraisal
$his method re-uires the manager to write a short essay describing each employees
performance during the rating period. $his format emphasies evaluation of overall performance
based on strengthsM weaknesses of employee performance, rather than specific +ob dimensions. !y
asking supervisors to enumerate specific e"amples of employees behaviors, the essay techni-ue
minimies supervisory bias and halo effect.
3ro"p $ppraisal
Bnder this method, an employee is appraised by a group of appraisers. $his group
consists of the immediate supervisor of who have close contact with employee, to other
supervisors who supervisor who have close contact with employee, work , manager or head of the
department or manager may be the chairman of the group uses any one or multiple techni-ues
discussed earlier. $he immediate supervisor enlightens others member Ns about the +ob character,
demands, standards of performance. Fith standards, find out the deviations, discuss the reason
therefore, and suggest ways for improvement of performance.
Confidential Reports
)ssessing the employees performance confidentially is a traditional method of
performance appraisal. Bnder this method, superior appraises the performance of his subordinates
based on his observation, +udgment, and intuitions. $he superior keeps his +udgment and report
confidentially.
MOD0RN $PPR$IS$8 M0T+ODS
&D
:;< Degree $ppraisal
'n human resources, ,9E ;egree feedback also known as 4multi(rater feedback, 4multi
source feedback or 4multi source assessment is the employee development feedback that comes
from all around the employee. 3,9E6 refers to the ,9E degrees in a circle. $he feedback would
come from subordinates, peers, and managers in the organiational hierarchy, as well as self(
assessment, and in some cases e"ternal sources such as customers and suppliers or other
interested stakeholders. 't may be contrasted with upward
feedback by their direct reports, or a traditional performance appraisal, where the employees are
most often reviewed only by their manager.
$he results from ,9E ;egree feedback are often used by the person receiving the feedback
to plan their training and development. $he results are also used by some organiation for making
promotional or pay decisions, which are sometimes called .:;<9
Degree Reie!)/
$ssessment Centre
$his method of appraising was first applied in Jerman )rmy in 1D,E. .ater
business and industrial houses started using this method. 'n this approach individuals from
various departments are brought together to spend two or three days working on an individual or
group assignment similar to the ones they would be handling when promoted. <bservers rank the
performance of each and every participant in order of merit. Since assessment centers are
basically meant for evaluating the potential of candidates to be considered for promotion, training,
or development, they offer an e"cellent means for conducting evaluation in a ob+ective way.
,E
Management 'y O'*ectie:
Management by <b+ectives /M!<0 is a process of agreeing upon ob+ectives within an
organiation so that management and employees agree to the ob+ectives and understand what
they are.
Management by ob+ectives term was first popularied by Peter ;rucker in 1D72 in his book 4The
Practice of Management.
't is all too easy for managers to fail to outline, and agree with their employees, what it is
that everyone is trying to achieve. M!< substitutes for good intentions a process that re-uires
rather precise written description of ob+ectives /for the period ahead0 and timelines for their
monitoring and achievement. $he process re-uires that the manager and the employee agree to
what the employee will attempt to achieve in the period ahead, and /importantly0 that the
employee accepts and agree to the ob+ectives /otherwise commitment will be lacking0.
For e"ample, whatever else a manager and employee may discuss and agree in their regular
discussions, let us suppose that they feel that it will be sensible to introduce a key performance
indicator to show the development of sales revenue in a part of the firm. $hen the manager and
the employee need to discuss what is being planned, what the time(schedule is being planned,
what the indicator might or might not be. $hereafter the two of them should liaise to ensure that
the ob+ective is being attended to and will be delivered on time.
Psychological appraisals
Psychological appraisals are conducted to assess the employees potential.
Psychological appraisals consist of
a6 'n depth interviews
'6 Psychological tests
,1
c6 1onsultations and discussions with the employee
d6 ;iscussions with superiors sub(ordinates and peers
e6 Ceviews of other evaluation.
0al"ation is cond"cted in the areas of
a6 :mployees intellectual abilities
'6 :motional stability
c6 Motivational responses
d6 Ceasoning and analytical skills
e6 'nterpretation and +udgment skill
f6 Sociability
g6 :mployees ability to comprehend the vents
h6 )bility to foresee the future.
P0R1ORM$NC0 M$N$30M0NT S4ST0M $T %$FT0R
Performance Management System is a process that includes goal setting, performance appraisal,
and development into a single, common system, the aim of which is to ensure that the employees
performance is supporting the companys strategic goals.
O'*ecties of Performance Management System at %aCter
$o set 8orms and $argets of Fork Performance, as well as, to monitor the Fork Progress
of :mployees.
$o facilitate placement of :mployees in accordance with their suitability for different
types of )ssignments.
,&
$o provide an <b+ective basis for determination of merit, efficiency and suitability for the
purpose of promotion.
$o identify areas re-uiring e"posure for $raining M ;evelopment
Performance Management System !or, to meas"re:
$he Fork Performance of an employee on the present +ob in relation to the e"pected
levels of performance, both -ualitative and -uantitative.
$he e"tent of development achieved by the employee during the period under review.
:valuation of behavioral )ttributes )ttitudes and )bilities.
:valuation of potentials for assuming higher responsibility.
,,
Gey Points of the Performance Management System at %aCter
A) $lignment of organi(ational 3oals > Indiid"al o'*ecties
Indiid"al 3>O sho"ld 'e lin,ed !ith "pper direction)

,2
Company vision & long term plan
Department G&O
Group G & O

Individual G & O
Company G & O
3oal setting at %aCter
)lignment of organiational J I <
+o!-
S"perisiors sho"ld eCplain "pper direction thoro"ghly to promote associates "nderstanding)
The time periods for target setting and eal"ation of associates 3 >O need to 'e the same as
the periods for target setting and reie! of the company#s oerall performance)
P"rpose of Performance Management System is not only the eal"ation of performanceH it
incl"des goal setting, performance appraisal > deelopment)

,7
Companys goal for the year (U.S.)
Goal setting for a particular Region (Asia)
Lower corporates (manufacturing units Inia)
!epartments Goal setting
3oal Setting In %aCter
4OU MUST %0 SM$RT TO 1IND 4OUR 3O$8S 7+IC+ IN TURN MUST %0 SM$RT
O'*ectie sho"ld 'e .SM$RT/
S : Specific
M : Meas"ra'le
$ : $chiea'le
R : Res"lt Oriented)
T : Time %o"nd
T+0 .7+$T/ $SP0CTS IN
3O$8 S0TTIN3)
Can I improe from the present targets 5 last year#s target IB<J6
Can I 'etter the ="ality parameters 'y red"cing the defect per
million etc)
Can delier 'etter !ith least amo"nt of fail"re or delay in my
committed sched"le)
Can I deelop my s"'ordinates > increase their morale indeC-
Can I contri'"te to the !ea,est area of the organi(ation)
,9
$8I3NIN3 T+0 3O$8S :
!ottom level Policies are determined and planned based on top level policies, reflection
of last years results I future changes, )nalysis, 'nformation on social changes.
<peration plans for each +ob is prepared in alignment with these policies.
Flow of policies from top to bottom levels for efficient management
)fter the goal setting at all level ,performance review system is started it includes both
Galf yearly review
)nnual review
Purpose of the review
$o help team members to establish meaningful targets for ne"t 1& months.
Provide feedback to team members and thereby help them to improve their performance.
Serve as an input fir remuneration, reward, promotion and confirmation decisions.
Procedure
,=
!BS'8:SS
J<).
P.)8$
J<).
'8;'?';B).
J<).
M';(O:)C
C:?':F
)88B).
C:?':F
;:P)$M:8$
J<).
$he evaluation form consists of 2 areas, namely /)0 Pey Cesult )rea and special pro+ect /!0
:ssential +ob responsibilities /c0 1ore competencies /;0 :ducation I development
/)0 and /!0 together to constitute the Performance factors, /10 constitutes the Potential factors)
/)0 $he $eam Member /Catee0 and his immediate superior /Cater0 will mutually finalise the Pey
Cesult )reas /PC)s0 and their respective weightage.
$he PC) must be derived from the companys business plans, vision and yearly policy.'t should
be limited not more than 9 of the most important PC)s.
/!0 :ssential +ob responsibilities are the regular daily M periodic operations M task to be carried out
fir meeting the +ob responsibilities. 't should be limited to not more than 2 of the most important
responsibilities.
/10 1ore competencies are combination of +ob related knowledge, performance enhancement
skills and attitude. $hey are essential for achievement of company vision, implementation of
strategic policies, 'nterpersonal and individual development.
/;0 $raining undertaken by the team member and application on +ob.
Score of each category $, %, C is A<< respectiely) 5$I%ICK:<<6
Oerall score o"t of A<< consider grade!ise !eightage defined for each category)

,A
30N0R$8 3UID08IN0S:
Ceviewer should be the person to whom Cater is responsible.
Ceviewer has the right to change or alter the ratings of the Cater.
Cater and Catee should devote sufficient time before fi"ing the targets.
Cater should assess the Catee on hisMher performance during the whole review period. Ge
should not allow isolated incidents or recent instances to bias his assessment.
'f Catees performance is below standard, Cater should first e"plore the reasons and
should not pre+udge.
<verall score shall be categoried as follows#
Cange 1ategory
!elow 27L 8eeds improvement/!elow e"pectation0
27Q77L )de-uate/1lose to e"pectation0
79Q9,L Meets e"pectation
92Q=EL Meets e"pectation
=1QA7L :"ceeds e"pectation
A9Q1EEL Far e"ceeds e"pectation
Bse the following rating scale of 1Q7 for evaluating competency level and education
effectiveness.
1ategory F:: :: M: ); 8'
,D
Cating 7 2 , & 1

S4ST0M O1 P0R1ORM$NC0 $PPR$IS$8 IN %$FT0R
A6 :stablish performance standards.
B6 1ommunicate standards M e"pectations to employee.
:6 Measure actual performance by following the instructions.
D6 )d+ust the actual performance due to the environmental influence.
E6 1ompare the ad+usted performance with that of others and previous.
;6 1ompare the actual performance with standards and find out deviation,
L6 1ommunicate the actual performance to the employee concerned.
M6 Suggest changes in +ob analysis and standards, if necessary.
N6 Follow(up performance appraisal report.
<ne method of performance appraisal was J<). S:$$'8J SG::$S I second method was
<.'.P./<CJ)8'R)$'<8 '8?:8$<CO PC<1:SS0, but <.'.P. was the confidential method of
the organiation and it was not disclosed to us.
J<). S:$$'8J SGG:$S or form are filled by the ratee, ratee means the employee whose
performance is evaluating.
$o have a clear understanding of J.S.S one structured format is given here#
2E
Name :
Date :
Supervisor :
Location :
21
Summary of Joals
$o be filled by the employee
2&
CUS"#$%R &%#&L%'"%A$ I((#)A"I#( CUS"#$%R &%#&L%'"%A$ I((#)A"I#(
#&%RA"I#(AL
%*C%LL%(C%
+UALI",'R%GULA"#R,'
C#$&LIA(C%
-I(A(CIAL
-I(A(CIAL #&%RA"I#(AL
%*C%LL%(C%
+UALI",'R%GULA"#R,'
C#$&LIA(C%
-I(A(CIAL
-I(A(CIAL
1eed'ac, and Recommendations
%0N01ITS O1 P0R1ORM$NC0 $PPR$IS$8
Motiation and Satisfaction
Performance appraisal can have a profound effect on levels of employee motivation and
satisfaction ( for better as well as for worse
2,
0mployee Comments:

S"perisors Comments:
Name Signat"re Date
0mployee:
S"perisor:
Training and Deelopment
Performance appraisal offers an e"cellent opportunity ( perhaps the best that will ever occur
( for a supervisor and subordinate to recognie and agree upon individual training and
development needs.
Recr"itment and Ind"ction
)ppraisal data can be used to monitor the success of the organiation%s recruitment and
induction practices. For e"ample, how well are the employees performing who were hired in
the past two years5
0mployee 0al"ation
$hough often understated or even denied, evaluation is a legitimate and ma+or ob+ective of
performance appraisal.
!ut the need to evaluate /i.e., to +udge0 is also an ongoing source of tension, since evaluative and
developmental priorities appear to fre-uently clash. Oet at its most basic level, performance
appraisal is the process of e"amining and evaluating the performance of an individual.
22
O%@0CTI20S
27
O%@0CTI20S O1 T+0 STUD4
$he purpose of the study is to find out the answer of -uestions through the practical e"perience.
$he main aim of study is to reach out to the employees of the organiation to have the primary
data about the topic of the study.
Main O'*ecties of the st"dy are:
Bnderstand the concept of Performance Management System in !a"ter /'ndia0 Pvt.
.td.
:valuation of system as a GC development and motivational tool.
8eed of Performance Management System in an organiation.
29
R0S0$RC+ M0T+ODO8O34
2=
R0S0$RC+ M0T+ODO8O34
$he main motive of the pro+ect was to study the Performance Management System in !a"ter
/'ndia0 Pvt. .td. 'n order to it ' have collected the data.
Sample Si(e: ' have taken the sample sie of 11E employees, but the -uestionnaire was not
properly filled by the 1E employees thats why finally ' have got the sample sie of 1EE
employees.
%oth primary as !ell as secondary so"rce !ere "sed for collecting the data)
PRIM$R4 D$T$
$he primary data were collected by interaction with various levels of employees belonging to
different department and performing various functions. For this a -uestionnaire was formed
through the deep study of sub+ect matter. . @uestions were formed, after taking into consideration
language and clarity. )fter forming the final -uestionnaire survey was conducted. )s a result of
this survey primary data was collected which was unorganied and unsystematic so collected was
interpreted in the form of pie charts to have a clear understanding of the data.
S0COND$R4 D$T$
$he sources of secondary data are#
!ooks, Febsites, 1atalogues I 1ompany Cecords.

2A
US0 $ND IMPORT$NC0 O1
T+0 STUD4
2D
US0 $ND IMPORT$NC0 O1 T+0 STUD4
;uring my research on the topic of Performance Management System ' have come to know that a
well established PMS contributes to the effective management of individuals and teams in order to
achieve high levels of organiational performance. )s such, it establishes shared understanding
about what is to be achieved and an approach to leading and developing people which will ensure
that it is achieved%.
$he study covers following aspects#
A6 ) thorough study about the theoretical background of the performance
management system
B6 $his report covers all the practical aspects of performance management
system established in !a"ter.
7E
D$T$ $N$84SIS
>
INT0RPR0T$TION
71
D$T$ $N$84SIS $ND INT0RPR0T$TION
A6 Performance Management System is a 'est instr"ment for assessing >
deeloping the performance of employees.
Sample si(e 9 A<< T9A
7&
Options Strongly
agree
$gree No Idea Disagree Strongly
disagree
No) of
employee in
faor of
options
E LB N E N
./
01/
./
2/
2/
Strongly Agree
Agree
(o Iea
!isagree
Strongly
!isagree
39A
$nalysis: Most of the employees /=&L0 think that PMS is the best instrument for assessing I
developing of employees performance.
7,
B6 Organi(ation is not a'le to deelop an action plan, !hich is helpf"l in disc"ssing the
feed'ac, res"lts)
Sample si(e 9 A<< T9B
34/
2/
56/
51/
./
Strongly Agree
Agree
(o Iea
!isagree
Strongly !isagree
39B
72
Options Strongly
agree
$gree No Idea Disagree Strongly
disagree
No) of
employee in
faor of
options
E AM N :; :B
$nalysis: ?ery few employees think that organiation is not able to develop an action plan,
which is helpful in discussing the feedback results.
:6 0mployees are satisfied !ith the proced"re of Performance Management system in
%aCter)
Sample si(e 9 A<< T9:
77
Options Strongly
agree
$gree No Idea Disagree Strongly
disagree
No) of
employee in
faor of
options
E EN AM AM <
34/
7/
34/
.2/
./
Strongly Agree
Agree
(o Iea
!isagree
Strongly !isagree
39:
$nalysis: a high percentage /7DL0 of employees is satisfied with the e"isting PMS.
79
D6 0mployees get proper feed'ac, of their Strength O 7ea,ness thro"gh Performance
$ppraisal)
Sample si(e 9 A<< T9D
7=
Options Strongly
agree
$gree No Idea Disagree Strongly
disagree
No) of
employee in
faor of
options
AD EM E AD N
.4/
2/
38/
./
38/
Strongly Agree
Agree
(o Iea
!isagree
Strongly
!isagree
39D
$nalysis: ) large number of employees feel that they are getting proper feedback about their
strength I weakness.
E6 0mployees are gien opport"nity of Self appraisal in Performance $ppraisal)
Sample si(e 9 A<< T9E
7A
Options Strongly
agree
$gree No Idea Disagree Strongly
disagree
No) of
employee in
faor of
options
:B ED A< B B
.8/
37/
1/
1/
51/
Strongly
Agree
Agree
(o Iea
!isagree
Strongly
!isagree
39E
$nalysis: Many of the employees say that they get the chance of self appraisal.
7D
;6 $ction Plans for improement of poor performing 0mployees eCists)
Sample si(e 9 A<< T9;
3/
68/
1/
5/
57/
Strongly
Agree
Agree
(o Iea
!isagree
Strongly
!isagree
9E
Options Strongly
agree
$gree No Idea Disagree Strongly
disagree
No) of
employee in
faor of
options
:< ;D A B :
39;
$nalysis: ) high percentage of employees feel that action plans are set up in organiation for the
improvement of the poor performance.
L6 Performance $ppraisal in %aCter helps in improing the performance
leel of the 0mployees.
Sample si(e 9 A<< T9L
91
Options Strongly
agree
$gree No Idea Disagree Strongly
disagree
No) of
employee in
faor of
options
:< ;E < B :
6./
7/
1/
5/
57/
Strongly
Agree
Agree
(o Iea
!isagree
Strongly
!isagree
39L
$nalysis: 'n !a"ter most of the employees think that performance appraisal helps to improve their
performance.
9&
M6 The present Performance Management System in %aCter is effectie and needs no change)
Sample si(e 9 A<< T9M
6./
2/
8/
8/
34/
Strongly
Agree
Agree
(o Iea
!isagree
Strongly
!isagree
39M
9,
Options Strongly
agree
$gree No Idea Disagree Strongly
disagree
No) of
employee in
faor of
options
AM ;E N D D
$nalysis: <nly 2L of employees are fully disagree and a large number of employees are satisfied
with the e"isting PMS.
N6 1airness of Performance $ppraisal System cannot 'e challenged)
needs no change)
Sample si(e 9 A<< T9N
92
Options Strongly
agree
$gree No Idea Disagree Strongly
disagree
No) of
employee in
faor of
options
N E< AM AM E
34/
34/
.7/
./
2/
Strongly
Agree
Agree
(o Iea
!isagree
Strongly
!isagree
39N
$nalysis: Kust half of the employees say that performance appraisal system can not be challenged
I 7L of employees are strongly disagree.
97
A<6 Organi(ation is !illing to "se the feed'ac, res"lts to deelop formal > Informal
training)
Sample si(e 9 A<< T9A<
99
Options Strongly
agree
$gree No Idea Disagree Strongly
disagree
No) of
employee in
faor of
options
AM EE AM N <
../
2/
34/
7/ 34/
Strongly
Agree
Agree
(o Iea
!isagree
Strongly
!isagree
39A<
$nalysis: <nly DL of employees are disagree with this statement, I 77L says in the favour of
the statement.
9=
AA6 Organi(ation#s commitment is ery strong and isi'le in contin"o"s improement of its
h"man reso"rce.
Sample si(e 9 A<< T9AA
9A
Options Strongly
agree
$gree No Idea Disagree Strongly
disagree
No) of
employee in
faor of
options
:< ;D A B :
3/
68/
1/
5/
57/
Strongly
Agree
Agree
(o Iea
!isagree
Strongly
!isagree
$nalysis: For this statement a very high percentage is in the favor Ionly 7Lare disagree.
AB6 This system handles people pro'lem early to preent f"t"re poor performance)
Sample si(e 9 A<< T9AB
9D
Options Strongly
agree
$gree No Idea Disagree Strongly
disagree
No) of
employee in
faor of
options
:B ED A< B B
.8/
37/
1/
1/
51/
Strongly
Agree
Agree
(o Iea
!isagree
Strongly
!isagree
39AB
$nalysis: ,&L of the employees are strongly agree with this statement L 72L are agree so it
shows the satisfaction of employees towards the system.
=E
A:6 The system enco"rages sol"tions of pro'lems early to preent f"t"re poor performance)
Sample si(e 9 A<< T9A:
15/
83/
34/
38/
8/
Strongly
Agree
Agree
(o Iea
!isagree
Strongly
!isagree
39A:
=1
Options Strongly
agree
$gree No Idea Disagree Strongly
disagree
No) of
employee in
faor of
options
D DA B: AM AD
$nalysis: employee have diverse opinion about the problem solving nature of the PMS, as 21L
are agree 27are strongly agree I 1A L are disagree.
=&
AD6 The system enco"rages the contin"ity of !or, een in the face of o'stacles)
Sample si(e 9 A<< T9AD

=,
Options Strongly
agree
$gree No Idea Disagree Strongly
disagree
No) of
employee in
faor of
options
D DA B: AM AD
15/
83/
34/
38/
8/
Strongly
Agree
Agree
(o Iea
!isagree
Strongly
!isagree
39AD
$nalysis: Cesponse to this -uestion is same as the above, 27L are agree &,L says no idea and
,&L are totally disagree.
=2
AE6 The system stries to achiee specific meas"ra'le > challenging roles)
Sample si(e 9 A<< T9AE
=7
Options Strongly
agree
$gree No Idea Disagree Strongly
disagree
No) of
employee in
faor of
options
N E< AM AM E
34/
34/
.7/
./
2/
Strongly
Agree
Agree
(o Iea
!isagree
Strongly
!isagree
39AE
$nalysis: $otal 7D L employees are in the favour of the above statement I &,L are disagree
while 1AL employees dont have any idea about it.
A;6 Reg"larly monitoring oer the performance management system is main motto of the
organi(ation for getting the s"ccess in all aspects.
Sample si(e 9 A<< T9A;
=9
Options Strongly
agree
$gree No Idea Disagree Strongly
disagree
No) of
employee in
faor of
options
N DA AM :B <
34/
83/
51/ 7/
2/
Strongly
Agree
Agree
(o Iea
!isagree
Strongly
!isagree
39A;
$nalysis: 2D L of employees are agree that regular monitoring will help to achieve the
organiation goal in all aspects.
=E
AL6 0ns"re that PMS is helpf"l in achieing the 'est possi'le res"lts to achiee goals)
Sample si(e 9 A<< T9AL
==
../
2/
34/ 7/ 34/
Strongly
Agree
Agree
(o Iea
!isagree
Strongly
!isagree
39AL
$nalysis: Mora than half of the employees thinks that PMS helps to achieve best possible results.
=A
Options Strongly
agree
$gree No Idea Disagree Strongly
disagree
No) of
employee in
faor of
options
AM EE AM N <
AM6 The PMS treats employees !ith respect and dignity)
Sample si(e 9 A<< T9AM
=D
Options Strongly
agree
$gree No Idea Disagree Strongly
disagree
No) of
employee in
faor of
options
< ;D B A; AM
68/
1/
36/
34/
7/
Strongly
Agree
Agree
(o Iea
!isagree
Strongly
!isagree
39AM
$nalysis: ) great L of employee are in the favour that PMS treats employees with respect and
dignity.
AE
AN6 The system !or,s to s"pport the strategy of the organi(ation)
Sample si(e 9 A<< T9AN
A1
Options Strongly
agree
$gree No Idea Disagree Strongly
disagree
No) of
employee in
faor of
options
:< ;D A B :
3/
68/
1/
5/
57/
Strongly
Agree
Agree
(o Iea
!isagree
Strongly
!isagree
39AN
$nalysis: 't is absolutely right that the PMS support the strategy of organiation. D2L employee
are agree about this statement.
=,
B<6 The system creates a positie pict"re of the f"t"re for the organi(ation)
Sample si(e 9 A<< T9 B<

A&
Options Strongly
agree
$gree No Idea Disagree Strongly
disagree
No) of
employee in
faor of
options AM ;E N D D
6./
2/
8/
8/
34/
Strongly
Agree
Agree
(o Iea
!isagree
Strongly
!isagree
39B<
$nalysis: ) high L of employee, means A,L are in the favor that PMS creates a positive picture
of the future for the organiation.
A,
1INDIN3S
A2
1INDIN3S
Performance Management System affects the performance of employee in any
organiation.
) well established system improves the productivity of employees.
Performance Management System in !a"ter is well established, Joals of the
organiation are well defined and reachable, if employee do their best efforts.

A7
CONC8USION
A9
CONC8USION
'n overall study of Performance Management System in !a"ter /'ndia0 Pvt. .td.
' understand that, the Performance Management System affects the performance of employee in
any organiation. ) well established system improves the productivity of employee and it leads to
the improvement in overall productivity of any organiation.
;uring the course of study ' interacted with various levels of employees belonging to different
department and performing various function. For this, a -uestionnaire has been prepared through
the deep study of sub+ect matter. $he whole -uestionnaire was divided &E -uestions on
Performance Management System in !a"ter. )s a result of this survey primary data was collected
and the information so collected was complied to give data and make analysis to give suggestion
for improvement. Pie charts were prepared to give diagrammatic presentation to data collected.
)fter analysis it is conclude that employee percentage satisfies with the present performance
Management system is more than that of dissatisfied employees.
Performance Management System in !a"ter is well established, Joals of the organiation are well
defined and reachable, if employee do their best efforts.
'f there is any need than 1orrective actions are also taken to improve the skills in any employee.
A=
R0COMM0ND$TIONS
AA
R0COMM$ND$TIONS
$he current Performance Management System is sub+ective and is not contributing to achieve
desired results. Gence it is suggested that it should be more ob+ective and there is a need to
develop a well designed instrument for performance and potential appraisal and development
of employees.
<rganiation goal should be more well defined to employees and employee should make their
individual goals for their development I as well as development of organiation.
Performance appraisal system should be viewed as an instrument for development. PMS
should be set up to gain more I more productivity I satisfaction of employees.
AD
%I%8IO3R$P+4
DE
%I%8IO3R$P+4
70%SIT0S
www.amaon.com
www. ba"ter.com
www.ba"terindia.in
www.google.com
www.maycoline.com
www.oracle.com
www.performance appraisal.com
www.wikipedia.com
R010R0NC0 %OOGS
+"man Reso"rce Management P $s!athapa
+"man Reso"rce Mangement P Dessler
+"man Reso"rce Management P $)G)Singh, %)R)D"ggal, P"neet Mohan
D1
D&
QU0STIONN$IR0

D,
QU0STIONN$IR0
.Please go through the statements given below and $ick against the option you find most
appropriate.
S)N) Statements Strongly
agree
$gree No Idea Disagree Strongly
disagree
1 Performance Management
System is a best
instruement for assessing
I developing the
performance of
employees.
& <rganiation is not able
to develop an action plan,
which is helpful in
discussing the feedback
results.
, :mployees are satisfied
with the procedure of
Performance Management
system in !a"ter.
2 :mployees get proper
feedback of their Strength
M Feakness through
Performance )ppraisal
7
:mployees are given
opportunity of Self
D2
appraisal in Performance
)ppraisal System.
9 )ction Plans for
improvement of poor
performing :mployees
e"ists.
= Performance )ppraisal in
!a"ter helps in improving
the performance level of
the :mployees.
A $he present Performance
Management System in
!a"ter is effective and
needs no change.
D Fairness of Performance
)ppraisal System cannot
be challenged
1E <rganiation is willing to
use the feedback results to
develop formal I
'nformal training.
11 <rganiations
commitment is very
strong and visible in
continuous improvement
of its human resource.
1& $his system handles
people problem early to
D7
prevent future poor
performance.
1, $he system encourages
solutions of problems
early to prevent future
poor performance.
12 $he system encourages
the continuity of work
even in the face of
obstacles.
17 $he system strives to
achieve specific
measurable I challenging
roles.
19 .Cegularly monitoring
over the performances
management system is
main motto of the org. for
getting the success in all
aspects.
1= .:nsure that PMS is
helpful in achieving the
best possible results to
achieve goals.
1A $he PMS treats
employees with respect I
dignity
1D .$he system works to
support the strategy of the
D9
organiation.
&E .$he system creates a
positive picture of the
future of the organiation.
D=